Quote:
Originally Posted by Pacific Lycia
So much to say on this subject and lots of confusion, all I can say is that you go the Turkey hundreds of boats are sold under Delaware flag and they REMAIN and SAIL with the new owners under its flag... without even ever going to the US. Many Turks and expats, tourists prefer to buy their yacht in Turkey cos you have an abundance of options from Croatia flagged which is so popular and Delaware! |
That may be the case but illegally and perjuriously.
A
USA state *registered/titled vessel does not have a “flag” or nationality, so if a vessel is not foreign flagged or documented with the Coast Guard (U.S. flagged), then it assumes the nationality of its beneficial owner. A state of the
USA is not a nation state.
The vessel must then wear the flag of the nationality of the beneficial owner. If the owner is not American than the vessel must wear the flag of the owner's nationality. The vessel does not wear the Flag of the State of Delaware. The vessel then must comply with the laws of the nation of the beneficial owner which typically requires
registration by that nation. And one will need to explain why the boats flag does not match its documents.
As to Permits to Proceed
One misconception is that *noncitizens can get around the strict rules of Coast Guard
documentation by simply state titling and registering their boats. Unfortunately, it isn’t that simple. To avoid confusion, a noncitizen’s vessel can be titled/*registered in most states, but the vessel will not have freedom of movement. United States
Customs treats vessels based on their nationality. A state *registered/titled vessel does not have a “flag” or nationality, so if a vessel is not foreign flagged or documented with the Coast Guard (U.S. flagged), then it assumes the nationality of its beneficial owner. Hence, a noncitizen’s
boat, if titled and registered in Delaware or
Florida, is considered to be a foreign vessel, and is thus treated as such. In this case, a vessel must obtain something called a “Permit to Proceed” from U.S.
Customs in order to move from port to port. Failure to follow these
regulations can result in fines or even seizure of the vessel itself. As such, foreign citizens typically choose to register their boats in other jurisdictions to avoid customs formalities by obtaining a U.S. cruising
license.
Also note that Delaware is a NON TITLE state. If you register a boat in Delaware you will not get a title, only a
registration card. Although
current registration certificates may be recognized by some as proof of
ownership in some cases, they do not qualify as titles when it comes to
security interests or for some administrative purposes [loans, liens, importations, licensing, etc.].
All motorized boats/vessels operated by Delaware residents on Delaware waterways must be registered. Non-resident boats/vessels using the waters of Delaware for principal use over 60 days and non-residents owning a boat docked and/or stowed in waters of Delaware for over 60 days must be registered in Delaware.
If the boat's principal place of usage is outside of Delaware the Delaware registration is invalid. The owner must notify the Delaware Division of
Fish & Wildlife within 15 days of the owner's change of address, and / or if the vessel is sold, destroyed, abandoned, become documented, or no longer principally operated in the waters of Delaware so that it can be promptly deregistered.
A vessel must be registered in its “State of Principal Use.” That is the state on whose waters the vessel is used or to be used most during a calendar year. Delaware
regulations state that if the vessel is to be used, docked, or stowed on the waters of this State for over 60 consecutive days, Delaware is its “State of Principal Use.”
If the boat is titled in another state the original title must be submitted to Delaware and will be kept. If the boat comes from a registering state then the registration is required with a notarized bill of
sale. If the boat is new, the manufacturer’s original certificate of origin (MCO) must be submitted. All paperwork must include the vessel
hull identification number. If the boat is currently registered in Delaware, the old registration card is required with a notarized Bill of
Sale including a description of the boat. A notarized bill of sale is not needed if both buyer and seller appear in person with picture IDs.
Registration numbers provide identification for the return of stolen or found boats. Registration also helps locating persons involved in
boating accidents, identifying vessels requesting assistance, and helps identify vessels violating the law. Registration
fees are used to fund resource protection, educational programs, access areas and their
maintenance, and fund
safety patrols.
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