Cruising License

[Sail Away 3]

My question is; a friend bought a boat currently under a cruising license in Florida and needs to move the boat out of the state. I know the license is tied to the boat for renewal purposes, but is it also tied to the previous owner???
Can the boat travel under the current license, or does it need to leave the country first and get renewed under the new owner???
Is the Bahamas open for cruising in for the purpose of landing and renewing the license on it's return???
Would they need to go to say Brunswick Ga. as the nearest port out of Florida???
Lot of questions but these are unusual times...

[Dsanduril]

I really have a hard time believing this post is for real, but if it is, well, your friend is in a world of hurt. A foreign flag vessel cannot be sold in the US while here on a cruising license. Prior to sale the vessel must be imported into the US. So unless your friend took delivery offshore (not how you described it) then... Here is the required text of a cruising license:

This vessel is dutiable:

(1) If owned by a resident of the United States (including Puerto Rico), or brought into the United States (including Puerto Rico), for sale or charter to a resident thereof, or

(2) If brought into the United States (including Puerto Rico) by a nonresident free of duty as part of personal effects and sold or chartered within one year from date of entry.

Any offer to sell or charter (for example, a listing with yacht brokers or agents) is considered evidence that the vessel was brought in for sale or charter to a resident or, if made within one year of entry of a vessel brought in free of duty as personal effects, that the vessel no longer is for the personal use of the non-resident.

If the vessel is sold or chartered, or offered for sale or charter, in the circumstances described, without the owner first having filed a consumption entry and having paid duty, the vessel may be subject to seizure or to a monetary claim equal to the value of the vessel. See Chapter 89, Additional U.S. Note 1, HTSUS, and subheadings 8903.10, 8903.91, 8903.92, 8903.99.10, 8903.99.20, and 8903.99.90, HTSUS.

[Sail Away 3]

Thanks Sanduril
They were looking to export the boat out of the state under a "Affidavit for Exemption of Boat Sold for Removal from the State of Florida by a Nonresident Purchaser"... Though that may only get them out of the state tax burden.
I wonder if the broker led them astray with overly optomistic expectations.
But the deal is done and I don't know all the details.... Yet

[Dsanduril]

Well, if the boat has been duty-paid into the US then the cruising license is moot. Simply register the boat in the state of intended use. Or document if the owner is a US citizen.

FWIW, the license goes with the boat but specifies the owner's name. I would suspect that means a change of ownership invalidates the license, but I'd call CBP and ask.

For a period of ____ from ____(Date) the ____(Flag) ____ (Rig) yacht ____(Name) belonging to ________ of (Owner's name) ________(Address) shall be permitted to arrive at and depart from the United States

[Sail Away 3]

Sanduril... The first paragraph I would say , No, No, And No... Just made a quick call the friends GF.
I knew somewhat of the restrictions from my experience but I am guessing that the broker with no vested interests and seeing a foreign owner with a foreign boat being sold to a foreigner as a fast loose big commission.

You sound quite knowledgeable with your fast replies...
I will continue to try to help my friends...

[SVHarmonie]

Originally Posted by Sail Away 3

Thanks Sanduril
They were looking to export the boat out of the state under a "Affidavit for Exemption of Boat Sold for Removal from the State of Florida by a Nonresident Purchaser"... Though that may only get them out of the state tax burden.
I wonder if the broker led them astray with overly optomistic expectations.
But the deal is done and I don't know all the details.... Yet

If the boat is duty paid, and the only question is actually about sales tax, then yes, Brunswick GA is good enough. Prepare to present copies of marina bills, fuel bills, etc to prove the boat is out of Florida. If you can’t supply such documentation the state will assume the tax, and very significant penalties, are due.

You can extend the time available if needed to 180 days for a $400 fee. This is arranged through the selling broker.

If the broker sold a boat that is actually in the US under a cruising permit, then he is a flat out crook and put both himself and your friend at significant risk. Not the first time that has happened.

[Dsanduril]

If both the new owner and the old owner are foreign then there's a chance the sale can be legal, and in that case I would certainly hope the broker knew how to handle it so that it is legal. But in that case I would certainly expect that the broker could assist with the cruising license question.

[Sail Away 3]

Thanks Guys... I will post more to this thread as I find out the details... Wish them good fortune...

[Sail Away 3]

Sanduril
Previous - Sweden, Registration - Netherlands, New Owner - Canadian
Broker - USA

[Dsanduril]

Originally Posted by Sail Away 3

...You sound quite knowledgeable with your fast replies...
I will continue to try to help my friends...

I'm not, I've only been down this road as a US citizen. There are many permutations (forks in the road) and foreign seller/foreign buyer is not one I have traveled, so hopefully they can find a good guide (or the broker is one).

[Sail Away 3]

Let's hope it turns out well... I know at one point things were moving slow, I think the insurance part and the broker was pushing hard to get the deal done. It makes me nervous when the salesman pushes hard to complete the sale quickly... A lot of money changing hands and with the virus and border lockdowns no one can cross to work out the issues...