US Import duties on a US manufactured boat??

[Miguelso]

I am buying a US flagged boat on the USVI, boat was built in Marion SC (US). Broker is telling me I should pay 1.5% import duties when I bring it to the US. Also he is talking about erasing the flag…
It does not make sense to me that a US built boat should pay import duties. Also, no clue why they would “erase the flag” before selling it.
Anyone went through something similar?

[Capt Clark]

Where is the boat currently documented?

[Miguelso]

Boat is currently USCG Documented, and I was planning on keeping it that way.

[Shrew]

Why would you pay an import tax on a boat built in the US, sitting in US territorial waters and USCG documented in the US?

If it is USCG documented it is already, effectively, imported. It sounds like it never left.

Is the broker telling you that he'll process the paperwork and process for you? Because this sounds like a scam.

At the end of the day, my rule of thumb is don't listen to the advise of a broker in regards to these topics. Contact the people like Customs and talk to them.

[Miguelso]

I understand that you can own a US documented boat built outside the us and never import it, given you don’t enter US waters. What bugles me, is that this specific boat was built in the US.

[Shrew]

Originally Posted by Miguelso

I understand that you can own a US documented boat built outside the us and never import it, given you don’t enter US waters. What bugles me, is that this specific boat was built in the US.

That is my point. If it was built here, where was it exported too? Was it built here, then imported into another country, then flagged with the USCG?

Is it possible to export an item without importing it somewhere else?

[S/V Illusion]

Originally Posted by Miguelso

Broker is telling me I should pay 1.5% import duties when …..?

The only problem here is you have an uninformed broker. My next door neighbor just bought a Hylas 46 under the same condition you describe with no import duties required.

[boatpoker]

Originally Posted by S/V Illusion

The only problem here is you have an uninformed broker. My next door neighbor just bought a Hylas 46 under the same condition you describe with no import duties required.

I've been involved in many of these deals ... you are correct.

No duty is payable. If the OP is a US citizen, he simply changes the documentation to his name and brings the boat to the US. Case closed.

[SailingHarmonie]

What might be causing confusion here is that the USVI is a duty free zone. You can import things into the USVI and not pay duty, but that does not mean they can then freely be moved into the rest of the USA and retain their duty free status.

This is why if you leave Puerto Rico and sail directly to Miami, you can skip customs and immigration but if you sail from the USVI to Puerto Rico or Miami you need to clear customs.

All of which is interesting in its way, but certainly doesn't apply to a US built boat that is US flagged. Import duty is not at all handled like the EU's VAT.

A good documentation agent can really help. In 95% of all boat sales, they do what you can do for free. Every once in a great while, however, something goes haywire. and having someone with experience can make the difference.