Flagging My Boat, Captains and Insurance

[toddsgirl0323]

Thanks for your thoughts. We have super specific boat needs, chartering isn't going to be an option. But it's a good thought, if we didn't have the needs we do! I think at the rates charters cost, it would cost hundreds of thousands anyway and we have considerable sponsorship form the boat company we are purchasing from so it makes more sense for us to buy.

Tropical escape, I will keep that in mind. can you send me a resume or even just contact info into my email so I don't lose your info please? I am getting swamped in responses its louise at videoguides dot tv

thanks!

[rgscpat]

Although the rules may seem complicated, some of them are there to protect your (and your insurance company's) interests. A good captain and crew will not only protect the boat and its value from loss, but can help you minimize expensive down time in the middle of your shooting schedule. They might also be able to give your producers good advice on locations, weather, seasons, and where to be when. Trying to run your project without competent boat people would seem to me to be like trying to shoot a film without a DOP, ADs, or PAs!

[osirissail]

Originally Posted by toddsgirl0323

. . . USA means 1% duty, and whatever tax for whatever state. But then a canadian captain that I really like and want for my ship says he can't captain in the states cause he isn't US coast guard certified. Still following?. . .
And can a Canadian captain sail my US flagged ship so long as there are no paid passengers on it? . . . Thanks!

From you original post - you are Canadian so you cannot "Flag" (USCG document) a boat in the USA. The owner must be a USA citizen or entity with majority control by US citizens.
- - So that means the suggestions by others to document the boat in another country (Caribbean, etc.) is the only way to go.
- - As has been stated by others, hiring a Captain for the boat is only a matter of checking the reg's in the country you decide to document the boat. Same with chartering it.
- - Super Yachts in the Caribbean typically fly Cayman Islands "flags" or other countries that offer "deals."

[Capt Phil]

Sounds like you should consider flagging in the Caymans or similar such convenient registration. Then using your Canadian skipper should not be a problem provided you do not charter or carry passengers for hire in US waters and your insurance Co. is cool with his qualfications.
Osirisail's advice makes sense to me... check the regs of the flagging country. Good Luck, Capt Phil

[Cheechako]

Anyone with the skill can sail the boat, however with that big an enterprise, if the skipper is not fully credentialed, your liability is huge. If someone falls and hurts themselves, it ends up the skippers fault, and if he is not credentialed, you're going to look bad in court! Something in this post doesnt seem to add up.... any corporation I know that is spending that much would have an marine law firm handling all this from the getgo.....?????

[Palarran]

Here are some suggestions:
Call Saxton Documentation to help insure all the paperwork is completed correctly. They will also give you all the advice as to flagging the boat and incorporating it.
Sheryl L. Saxton
Vice President
Saxton Documentation, Inc.
416 SE 15 Street
Ft. Lauderdale, FL 33316
954-764-6702 phone
954-764-6907 fax
sheryl@saxtonyachtdoc.com
www.saxtonyachtdoc.com

Call Pensum in order to create the corporation you are going to own the boat in:

Richard Rich
Pensum Ltd.| Cayman Business Park, A7, George Town, Grand Cayman | P.O. Box 10024, Grand Cayman, KY1-1001 | Cayman Islands
T: (345) 945 1830 | F: (345) 945 1835
Other direct telephone numbers to our Cayman office | From USA: +1 954 642 0007 | From UK: +44 (0)207 983 8778
Email: marine@pensumoffshore.com | www.pensumoffshore.com


Call Kolish Marine Insurance to get an insurance quote:
Joe Kolisch
305-992-3482
305-424-9358 Fax
www.Kolischmarine.com

And you need to talk to an accountant in order to structure the deal correctly. If you are using the boat for a business purpose, the money you invest is typically deductable against revenue. The purchase taxes are really only the tip of the iceburg, so to speak. As far as a captain, if they are worthy of being the captain, they will have the credentials to pass muster with any countries requirements.

[Capt Phil]

Great info from Palarran... I think I used Saxton on a Cayman Island reg once and they were very good to deal with and well connected in the Caymans. Capt Phil

[Katiusha]

Originally Posted by osirissail

... you are Canadian so you cannot "Flag" (USCG document) a boat in the USA. The owner must be a USA citizen or entity with majority control by US citizens.

In this case you'll be greatly surprised to see 2/3rds of boats in Turkey registered under US flag in Delaware. One does not have to be a "US person" to register the boat. It's enough to be a US company which can be registered by a foreign person.

[osirissail]

Originally Posted by Katiusha

In this case you'll be greatly surprised to see 2/3rds of boats in Turkey registered under US flag in Delaware. One does not have to be a "US person" to register the boat. It's enough to be a US company which can be registered by a foreign person.

There are hundreds if not thousands of boats outside the USA that "seem" to be documented in the USA but actually they have expired documentation from the previous owner.
- - There are also a considerable number of people living outside the USA that have dual citizenship, one of which is the USA. Which would make them eligible for USCG Documentation.
- - But the rules are absolutely clear as explained in the USCG National Documentation website: USCG National Vessel Documentation Center, FAQ Page
HOW DO I ESTABLISH U.S. CITIZENSHIP?

Citizenship is established by completion of form CG-1258. In addition to individuals, corporations, partnerships, and other entities capable of holding legal title may be deemed citizens for documentation purposes. Corporations must be registered in a state or the U.S; the chief executive officer and chairman of the board of directors must be U.S. citizens, and no more than a minority of the number of directors necessary to constitute a quorum may be non-citizens. In addition, at least 75% of the stock must be vested in U.S. citizens for a coastwise or fisheries endorsement.

- - Don't confuse "registration" with "documentation." A non-USA citizen may register a vessel with a USA State and get a title. But federal/national level "documentation" has citizenship requirements that cannot be waived.

[Katiusha]

Originally Posted by osirissail

- - Don't confuse "registration" with "documentation." A non-USA citizen may register a vessel with a USA State and get a title. But federal/national level "documentation" has citizenship requirements that cannot be waived.

Thank you. Did not know that. So most/some of these US flagged boats in Turkey would not be able to leave Turkey (or better said, be able to enter another country) if they don't carry US boat documentation. Right?

[osirissail]

Originally Posted by Katiusha

Thank you. Did not know that. So most/some of these US flagged boats in Turkey would not be able to leave Turkey (or better said, be able to enter another country) if they don't carry US boat documentation. Right?

It sounds like you are saying that every boat in the world or at least Turkey MUST have US Documentation. So the answer to your "Right?" is "No."
- - Many countries of the world have minimal requirements or lax enforcement for locals to register or document their boats. Few if any local fishermen and even sport fishermen have their boats "registered" or "documented" by their home country as they never plan to enter/ check-in to another country.
- - A vessel that does sail to another country normally needs whatever the home country requires in the way of vessel "documentation" for its citizens.
- - I have seen a lot of boats, large and small in 3rd World countries that appear to be "US Flagged". But it is a case of they are too lazy to get their boats "registered/documented" in their country which would also require paying tax on the boat. So they "pretend" the boat is still "US documented/flagged" even though the actual US Documentation is expired/rescinded because the new owner is not a US Citizen. Considering the large import taxes on a boat imposed by their countries keeping the bogus/invalid US Flag is a commonly used ploy.

[Capt Phil]

Non-US citizens are able to register their vessel in many states, leave the state, never to return but still maintain their state registration. Tax laws are very lenient in some states like Delaware and as a result many folks use that state as their registered state.
Flagging a vessel normally denotes a documentation in a country, not a state, ie., US flagged, Canadian flagged, Liberian flagged, Cayman Island flagged, etc. While you are not 'Delaware flagged or Saskatchewan flagged, proof of registration in a state or province many times is acceptable, but perhaps not desirable in foreign ports.
My experience is that a nationally documented or registered vessel has an easier time when travling abroad because nations, not states are signators to international maritime agreements and recognized more easily. Just my experience... Capt Phil

[DeepFrz]

You can register your boat as a Canadian flagged vessel without importing it. Canadian tax only becomes due when it arrives in Canada.

[Kapena]

Look into registering in Puerto Rico, and Guam. They pay no taxes (US) and can come and go in the USA. Another one to really check out is the Marshall Islands. They are not a territory but have a similar agreement with the US (everyone can immigrate freely).

Worth checking out.

Forgot to mention that registering boats in the Marshalls has immense tax advantages and is as popular as Panama.