Quote:
Originally Posted by Sand crab
But US corporations are allowed to document a boat. There are businesses that specialize in this. As long as the boat is for recreation the 75% US citizen owned does not apply. The Op could look at this but it's going to be some dollars to set up. If he visits the US in that boat then import duties if applicable would apply.
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A US Corporation will need to have managerial and directorship control by U.S. Citizens for a recreational endorsement. Reference Code of Federal Regulations, highlights provided.
[Title 46 CFR C]
[Code of Federal Regulations (annual edition) - October 1, 2006 Edition]
[Title 46 - SHIPPING]
[Chapter I - COAST GUARD, DEPARTMENT OF HOMELAND
SECURITY (CONTINUED)]
[Subchapter G - DOCUMENTATION AND MEASUREMENT OF VESSELS]
[Part 67 - DOCUMENTATION OF VESSELS]
[Subpart C - Citizenship Requirements for Vessel Documentation]
[From the U.S. Government Publishing Office]
46SHIPPING22006-10-012006-10-01falseCSubpart CSHIPPINGCOAST GUARD, DEPARTMENT OF HOMELAND
SECURITY (CONTINUED)DOCUMENTATION AND MEASUREMENT OF VESSELSDOCUMENTATION OF VESSELS
Subpart C_Citizenship Requirements for Vessel Documentation
Sec. 67.30 Requirement for citizen owner.
Certificates of Documentation may be issued under this part only to
vessels which are wholly owned by United States citizens. Pursuant to
extraordinary legislation at 46 U.S.C. app. 883-1 (Bowater Amendment)
and 46 U.S.C. 12106(d) (Oil Pollution Act of 1990), Certificates of
Documentation with limited endorsements may be issued in accordance with
part 68 of this chapter to vessels owned by certain persons who are not
citizens as defined in this part.
Sec. 67.31 Stock or equity interest requirements.
(a) The stock or equity interest requirements for citizenship under
this subpart encompass: Title to all
classes of stock; title to voting
stock; and
ownership of equity. An otherwise qualifying corporation or
partnership may fail to meet stock or equity interest requirements
because: Stock is subject to trust or fiduciary obligations in favor of
non-citizens; non-citizens exercise, directly or indirectly, voting
power; or non-citizens, by any means, exercise control over the entity.
The applicable stock or equity interest requirement is not met if the
amount of stock subject to obligations in favor of non-citizens, non-
citizen voting
power, or non-citizen control exceeds the percentage of
the non-citizen interest permitted.
(b) For the purpose of stock or equity interest requirements for
citizenship under this subpart,
control of non-fishing industry vessels
includes an absolute right to: Direct corporate or partnership business;
limit the actions of or replace the chief executive officer, a majority
of the board of directors, or any general partner; direct the transfer
or operations of any vessel owned by the corporation or partnership; or
otherwise exercise authority over the business of the corporation or
partnership. Control does not include the right to simply participate in
these activities or the right to receive a financial return, e.g.,
interest or the equivalent of interest on a loan or other financing
obligations.
(c) For the purpose of this section, control of a
fishing industry
vessel means having:
(1) The right to direct the business of the entity that owns the
vessel;
(2) The right to limit the actions of or to replace the chief
executive officer, the majority of the board of directors, any general
partner, or any person serving in a management capacity of the entity
that owns the vessel;
(3) The right to direct the transfer, the operation, or the manning
of a vessel with a fishery endorsement.
(d) For purposes of meeting the stock or equity interest
requirements for citizenship under this subpart where title to a vessel
is held by an entity comprised, in whole or in part, of other entities
which are not individuals, each entity contributing to the stock or
equity interest qualifications of the entity holding title must be a
citizen eligible to document vessels in its own right with the
trade
endorsement sought.
[CGD 89-007, CGD 89-007a, 58 FR 60266, Nov. 15, 1003, as amended by
USCG-1999-6095, 65 FR 76575, Dec. 7, 2000; USCG-2004-18884, 69 FR 58346,
Sept. 30, 2004]
[[Page 348]]
Sec. 67.33 Individual.
An individual is a citizen if native-born, naturalized, or a
derivative citizen of the United States, or otherwise qualifies as a
United States citizen.
Sec. 67.35 Partnership.
A partnership meets citizenship requirements if all its general
partners are citizens, and:
(a) For the purpose of obtaining a registry or recreational
endorsement, at least 50 percent of the equity interest in the
partnership is owned by citizens.
(b) For the purpose of obtaining a fishery endorsement, at least 75
percent of the equity interest in the partnership, at each tier of the
partnership and in the aggregate, is owned by citizens.
(c) For the purpose of obtaining a coastwise or
Great Lakes
endorsement or both, at least 75 percent of the equity interest in the
partnership is owned by citizens or the vessel qualifies under Sec.
67.20.
[CGD 94-008, 59 FR 49846, Sept. 30, 1994, as amended by USCG-1999-6095,
65 FR 76575, Dec. 7, 2000; USCG-2001-8825, 69 FR 5401, Feb. 4, 2004]
Sec. 67.36 Trust.
(a) For the purpose of obtaining a registry or recreational
endorsement, a trust arrangement meets citizenship requirements if:
(1) Each of its trustees is a citizen; and
(2) Each beneficiary with an enforceable interest in the trust is a
citizen.
(b) For the purpose of obtaining a fishery endorsement, a trust
arrangement meets citizenship requirements if:
(1) It meets all the requirements of paragraph (a) of this section;
and
(2) At least 75 percent of the equity interest in the trust, at each
tier of the trust and in the aggregate, is owned by citizens.
(c) For the purpose of obtaining a coastwise or Great Lake
endorsement or both, a trust arrangement meets citizenship requirements
if:
(1) It meets the requirements of paragraph (a) of this section and
at least 75 percent of the equity interest in the trust is owned by
citizens; or
(2) It meets the requirements of Sec. 67.20.
[CGD 94-008, 59 FR 49846, Sept. 30, 1994, as amended by USCG-1999-6095,
65 FR 76576, Dec. 7, 2000; USCG-2001-8825, 69 FR 5401, Feb. 4, 2004]
Sec. 67.37 Association or joint venture.
(a) An association meets citizenship requirements if each of its
members is a citizen.
(b) A joint venture meets citizenship requirements if each of its
members is a citizen.
[USCG-1999-6095, 65 FR 76576, Dec. 7, 2000]
Sec. 67.39 Corporation.
(a) For the purpose of obtaining a registry or a recreational
endorsement, a corporation meets citizenship requirements if:
(1) It is incorporated under the laws of the United States or of a
State;
(2) Its chief executive officer, by whatever title, is a citizen;
(3) Its chairman of the board of directors is a citizen; and
(4) No more of its directors are non-citizens than a minority of the
number necessary to constitute a quorum.
(b) For the purpose of obtaining a fishery endorsement, a
corporation meets citizenship requirements if:
(1) It meets all the requirements of paragraph (a) of this section;
and
(2) At least 75 percent of the stock interest in the corporation, at
each tier of the corporation and in the aggregate, is owned by citizens.
(c) For the purpose of obtaining a coastwise or
Great Lakes
endorsement or both, a corporation meets citizenship requirements if:
(1) It meets the requirements of paragraph (a) of this section and
at least 75 percent of the stock interest in the corporation is owned by
citizens; or[/B]
(2) It meets the requirements of Sec. 67.20.
(d) A corporation which does not meet the stock interest requirement
of
[[Page 349]]
paragraph (c) of this section may qualify for limited coastwise trading
privileges by meeting the requirements of part 68 of this chapter.
[CGD 89-007, CGD 89-007a, 58 FR 60266, Nov. 15, 1993, as amended by CGD
94-008, 59 FR 49847, Sept. 30, 1994; USCG-1999-6095, 65 FR 76576, Dec.
7, 2000; USCG-2001-8825, 69 FR 5401, Feb. 4, 2004]
Sec. 67.41 Governmental entity.
A governmental entity is a citizen for the purpose of obtaining a
vessel document if it is an entity of the Federal Government of the
United States or of the government of a State as defined in Sec. 67.3.
Sec. 67.43 Evidence of citizenship.
When received by the Coast Guard, a properly completed original
Application for Initial Issue, Exchange, or Replacement of Certificate
of Documentation; or Redocumentation (form CG-1258) establishes a
rebuttable presumption that the applicant is a United States citizen.
[CGD 89-007, CGD 89-007a, 58 FR 60266, Nov. 15, 1993; 58 FR 65131, Dec.
13, 1993]
Sec. 67.47 Requirement for Maritime Administration approval.
(a) The following transactions, among others, require approval of
the Maritime Administration in accordance with 46 CFR part 221:
(1) Placement of the vessel under foreign registry;
(2) Operation of the vessel under the authority of a foreign
country; and
(3)
Sale or transfer of an interest in or control of the vessel from
a citizen, as defined in section 2 of the
Shipping Act, 1916 (46 U.S.C.
app. 802), to a person not a citizen within the meaning of section 2 of
that act.
(b) A Certificate of Documentation may not be issued for a vessel
which subsequent to the last issuance of a Certificate of Documentation
has undergone any transaction listed in paragraph (a) of this section,
even if the owner meets the citizenship requirements of this subpart,
unless evidence is provided that the Maritime Administration approved
the transaction.
(c) The restriction imposed by paragraph (b) of this section does
not apply to a vessel identified in Sec. 67.11(b).