U.S Citizen Buying Australian Registered Boat in Langkawi

[Thorne049]

Hello All,

I've done quite a bit of online research on this question. My wife and I are U.S. citizens buying an Australian registered boat in Langkawi. We are not committed to registering the boat in the U.S. We won't be sailing the boat to the U.S. any time soon, if ever. I'm interested in hearing opinions from those of you with experience in these matters. How would you proceed, and why and/or why not?

1. Would you keep the boat registered in Australia?

2. Register in Langkawi, or other offshore location?

3. Register in the U.S.?

4. Would you use a U.S. LLC?

What are the insurance and tax implications? Pitfalls to avoid?

Thanks in advance!

[skipperpete]

Transfer the AMSA registration to your name, it establishes a basis for not paying duty if you return to Australian waters, ie not an imported vessel. Don’t register in Langkawi if you have AUS registration. I have no understanding of US registration or IRS tax laws so I’ll leave that to a US citizen international cruiser to explain.

[Wotname]

AFAIK, you have to an Australian Citizen to hold Australian registration (but I might be wrong).

[skipperpete]

Yeah I think you’re right Wottie, I just read the Amsa regs and they specifically mention this. The OP’s options diminished to the easiest as being LIR or UK small ships rego...... or sailing under the US flag..... but I’m not familiar with how to do the US international rego

[JPA Cate]

Hello Thorne049.

You DO HAVE TO BE AN AUSTRALIAN CITIZEN to retain Oz registry. Furthermore, YOU cannot de-register the vessel. The Australian citizen owner has to pay to do it, just like he or she had to pay to do it. That's the law. We went through this when we bought an Australian built and registered boat here in Oz. We just went ahead and registered it in the State in which we had a US mailing address.

Now, if you do not have a US mailing address, you could investigate the British small ship registry, or some other foreign registry. The downside would be the complexity should you decide to return to the US. Most States require some form of residency to license/register it there. Also, Documentation is a possibility for you, as well, but it was a possibility we didn't investigate, so I can't help with that, you'll have to scrounge it off their website. There may be out of date bits still on the site, so be really thorough and follow up by phone call.

You will find that insurance will be necessary for entry to marinas and boat yards. If you presently already have the insurance, wonderful, you may be able to transfer it over to the new boat. But, people all over are having difficulty obtaining insurance, so it's best to begin lining those ducks up, in advance, as well. You may want to see if they will entertain the idea of riders for specific unusual circumstances, depending on how you want to use the vessel, because plans and intentions change.

Ann

[boatpoker]

USCG Documentation is your easiest route as a US citizen with a US mailing address (Mom, Dad, Kids etc.). No taxes will be due until/if you ever land in a US State. You must provide the USCG Documentation center with a letter from the Australian authority releasing it from their registry. The seller will have to get the release letter for you but you can handle the rest yourself here. https://www.dco.uscg.mil/Our-Organiz...ons-and-Forms/

This conversation requires a thorough understanding of "Registration", "USCG Documentation" and US "State Registration". The terms are not interchangeable.
What the US calls "Documentation", the rest of the world calls "Registration"

Beware of "Documentation" companies that look like USCG websites. Ensure you are dealing with the real USCG site

[Thorne049]

We reside in the US (Alaska), and have a US mailing address. We have several boats registered and insured in Alaska already, although not sailboats. I run a boat for a local fishing lodge during the summer, as well as my own charter boat on the days I'm not working for the lodge. Additionally, we live off the road system, and commute daily by boat year-round (in the dark, snow, rain, wind, ice) to go back and forth from our house to the town dock for work and school for the kids. Perhaps it will just be easiest to register here in AK, and go with our current insurance company, which is Progressive.
We are paying cash for the boat, so have the option to go with liability only.

[boatpoker]

Originally Posted by Thorne049

We reside in the US (Alaska), and have a US mailing address. We have several boats registered and insured in Alaska already, although not sailboats. I run a boat for a local fishing lodge during the summer, as well as my own charter boat on the days I'm not working for the lodge. Additionally, we live off the road system, and commute daily by boat year-round (in the dark, snow, rain, wind, ice) to go back and forth from our house to the town dock for work and school for the kids. Perhaps it will just be easiest to register here in AK, and go with our current insurance company, which is Progressive.
We are paying cash for the boat, so have the option to go with liability only.

Be aware that some countries do not recognize State Registered vessels.

[JPA Cate]

Uh, boatpoker, what countries do not honor State registered vessels? Would you please post a list?

Thanks in advance,

Ann

[boatpoker]

Originally Posted by JPA Cate

Uh, boatpoker, what countries do not honor State registered vessels? Would you please post a list?

Thanks in advance,

Ann

IMO recognizes only National Registrations. It's up to the whim of the under paid guy in the uniform standing in front of you.

One specific example ... Canada does not recognize US State Registered vessels but thousands cross every year without issue. All it takes is one customs guy in a bad mood and you have no recourse. I guess it depends on the countries you travel to and your risk tolerance.

[Wotname]

Australia technically only recognises National Registrations but in practice, for a visiting international recreational boat, all you need is some bit of paperwork issued by some sort of state government body and 'she'll be right'. Once the box is ticked, the rest is history...

Of course I suppose if you manage to seriously annoy a grumpy Borderfarce guy who is having a bad day, then all bets are off.

[JPA Cate]

Ahem! I would like to state formally that we have had only pleasant interactions with the Australian Customs Service, now called the Borderforce. ...And only one poor interaction with AQIS, which is not actually a service organisation. Some of the Quarantine issues have seemed silly to us, like not allowing Oz manufactured canned ham back into the country, but the people have behaved professionally, by and large. The one time we had a problem, it was the Customs guy who knew us who helped to straighten it all out.

Ann

[Thorne049]

Originally Posted by boatpoker

Be aware that some countries do not recognize State Registered vessels.

We would certainly get the boat U.S Coast Guard documented.

I really appreciate everyone's thoughts.

[Factor]

Originally Posted by JPA Cate

Hello Thorne049......

You DO HAVE TO BE AN AUSTRALIAN CITIZEN to retain Oz registry. ....

Ann

I cannot agree

SHIPPING REGISTRATION ACT 1981 - SECT 14

Ships that may be registered in the General Register
The following ships may be registered in the General Register:

(a) Australian-owned ships;

(b) small craft that are wholly owned by Australian residents, or by Australian residents and Australian nationals;

(c) small craft that are operated solely by Australian residents, or by Australian nationals, or by both;

(d) ships that are on demise charter to Australian-based operators.

[JPA Cate]

Thank you for pointing that out, Factor.

Ann