Not for sale in US waters

[DDabs]

Hey guys,


Noob question here, but why do certain yachts on yachtworld say that they are not for sale in U.S. waters? There were also some yachts at the boat show">Miami boat show that said this. Is it something to do with taxes? School me.

-David

[kthoennes]

I'm a subscriber to showboats international and a lot of the listings say that too. I'd be interested in the answer as well.

[Stumble]

There may be specific issues for some boats, but generally it has to do with tax avoidance schemes.

[Richard_W]

If the boats at the show were new, the most likely reason was not compliance with some US standards, be it emission or ABYC or USCG standards, or ... you've got the picture.

[Lucky Larry]

I did a google search and this seems to be the best answer. "You may often see the phrase ‘Not for sale to US residents while in US waters’ or similar. It’s got nothing to do with any sales tax, as is popularly thought. In fact, it’s stated because for a yacht built outside the US to be offered for sale to US residents, while in US waters, an import duty must have been paid. Once the duty has been paid, where the yacht is registered outside the US, the yacht may only be kept in the US, by a US resident, if it’s in the care, custody and control of a licensed yacht broker and not in the owner’s use. He may only use it after he’s paid a 6% use tax. US residents may purchase a foreign-registered yacht, kept outside the US, on which duty has not been paid, but the yacht must be offered to them entirely outside the US." I found this at: Buying a Super Yacht, everything you need to know about the process - Boat International.

[Richard_W]

Originally Posted by Lucky Larry

I did a google search and this seems to be the best answer. "You may often see the phrase ‘Not for sale to US residents while in US waters’ or similar. It’s got nothing to do with any sales tax, as is popularly thought. In fact, it’s stated because for a yacht built outside the US to be offered for sale to US residents, while in US waters, an import duty must have been paid. Once the duty has been paid, where the yacht is registered outside the US, the yacht may only be kept in the US, by a US resident, if it’s in the care, custody and control of a licensed yacht broker and not in the owner’s use. He may only use it after he’s paid a 6% use tax. US residents may purchase a foreign-registered yacht, kept outside the US, on which duty has not been paid, but the yacht must be offered to them entirely outside the US." I found this at: Buying a Super Yacht, everything you need to know about the process - Boat International.

Here you are ...

[Pelagic]

Originally Posted by DDabs

Hey guys,


Noob question here, but why do certain yachts on yachtworld say that they are not for sale in U.S. waters? There were also some yachts at the Miami boat show that said this. Is it something to do with taxes? School me.

-David

It is not just super yachts… it is any yacht where the present Owner (The Seller) has elected to Flag the boat in any country other than the US…. (For many good reasons)

Even if the yacht is presently not in the USA... if being advertised by US brokers, they will put that stipulation in place to protect themselves, if it happens to be purchased by a US (Buyer).

Normal procedure is that once a deal has been reached… yacht departs its present standby location for a new country, where after entry by the Seller… the funds are exchanged and Buyer applies for change in registered Owner by flag country of convenience. Or elects to take home and pay taxes.

[DDabs]

Thanks for the answers guys.