Boot Ownership NON US citizen - buying a NON US boat - registration - taxes and so on

[miraculix]

Hi all,

I am about to buy a sailboat. The purchase agreement has been signed by both parties and the survey will be the end of March.
I am a green card holder, and other than my 5-year-old son, there is no US citizen in the family, at least not yet.

Pretty early in our boat search, we were made aware by a broker that we cannot document a boat with the US coast guard since we are NOT US citizens. However, we were also told that that is not a problem. We should register the boat with the state where we intend to use and keep the boat, pay taxes there, and it will be OK. We were also told about the "Delaware Option," but I am not really a friend of this.

So far, this doesn't sound pretty complicated. We are living in PA, and the boat will be kept and sailed in the upper Chesapeake Bay for about 2-3 years before we can take it on longer trips. The vessel is currently located in CT, after the final purchase we would bring the boat to the Chesapeake Bay and register it with the State of Maryland, pay the taxes there and we should be OK.

However, I am not sure if I am missing an important something?

What could be complicating the situation is that the boat is actually from England, the owner is British Citizen and the boat I assume is registered in Britain. The boat is probably on cruising permit in the US, but I am not sure. The broker told us the owner/seller would pay for all the import duties before we finally buy the boat.

The longer I think about this; the more my so far warm and fuzzy feeling goes away. But since I have no experience and the broker didn't mention any potential problems, I don't really know what could go wrong here. I just have that feeling that there is a potential for problems.
Should I consider to hire a company specialized in Marine Documentation to support me in the process?

While I cannot document the boat with the USCG, what will be my proof of ownership? Can I get a title similar to the ones I get for a car?

Does the vessel have to be deregistered in Britain? How can I get proof of that? I bet I may need that later.

What else do I miss here?

I appreciate all your input.

Thanks,
Christoph

[billknny]

Originally Posted by miraculix

Hi all,

I am about to buy a sailboat. The purchase agreement has been signed by both parties and the survey will be the end of March.
I am a green card holder, and other than my 5-year-old son, there is no US citizen in the family, at least not yet.

Pretty early in our boat search, we were made aware by a broker that we cannot document a boat with the US coast guard since we are NOT US citizens. However, we were also told that that is not a problem. We should register the boat with the state where we intend to use and keep the boat, pay taxes there, and it will be OK. We were also told about the "Delaware Option," but I am not really a friend of this.

So far, this doesn't sound pretty complicated. We are living in PA, and the boat will be kept and sailed in the upper Chesapeake Bay for about 2-3 years before we can take it on longer trips. The vessel is currently located in CT, after the final purchase we would bring the boat to the Chesapeake Bay and register it with the State of Maryland, pay the taxes there and we should be OK.

However, I am not sure if I am missing an important something?

What could be complicating the situation is that the boat is actually from England, the owner is British Citizen and the boat I assume is registered in Britain. The boat is probably on cruising permit in the US, but I am not sure. The broker told us the owner/seller would pay for all the import duties before we finally buy the boat.

The longer I think about this; the more my so far warm and fuzzy feeling goes away. But since I have no experience and the broker didn't mention any potential problems, I don't really know what could go wrong here. I just have that feeling that there is a potential for problems.
Should I consider to hire a company specialized in Marine Documentation to support me in the process?

While I cannot document the boat with the USCG, what will be my proof of ownership? Can I get a title similar to the ones I get for a car?

Does the vessel have to be deregistered in Britain? How can I get proof of that? I bet I may need that later.

What else do I miss here?

I appreciate all your input.

Thanks,
Christoph

The broker should be able to help put you in touch with an agent who can handle all the details.

I am not sure exactly HOW to transfer title from the current owner to the state of Maryland, but this is something that happens all the time.

You're approach is correct, and you have the basics, but in any legal paperchase like this one the devil is in the details. Somebody how has done it before and knows the details is an invaluable resource. With enough research you CAN (probably) do it yourself, but your time has value...

[Dsanduril]

This isn’t nearly as scary as it sounds, but there are a lot of details to watch.

1. Entry Summary - legally you can’t even agree to buy the boat until it is imported and duty is paid. Since this is hard to prove, and the seller’s problem don’t worry about it too much. If the broker and seller say they will deal with the importing, then do not hand over any money until they have provided you with CBP (Customs and Border Protection) form 7501 - Entry Summary. This is your proof that the boat was properly imported. If you receive a complete 7501 then you know they have paid duties, filed EPA paperwork, etc.
2. Bill of Sale - Maryland simply requires a bill of sale in order to register and title the boat. I’d recommend downloading the USCG form even though you won’t be documenting the boat. It just provides a good/recognized bill of sale.
3. Deregister - the boat should be taken off the UK register. The USCG would require it for documentation, MD probably won’t even know to ask (my experience with state registration departments, YMMV).
4. MD Register scroll down to the section on used boats that have “another state” title.

https://multihullcompany.com/article...-and-pay-duty/

[miraculix]

Hello,

@Dsanduril

Thank you for your comprehensive answer. That was really helpful.

Christoph

[Nucopia]

Dont want to highjack your thread, but how would it work if you buy the boat in the US, with the intention of sailing it some where else ?

[denverd0n]

Originally Posted by Nucopia

Dont want to highjack your thread, but how would it work if you buy the boat in the US, with the intention of sailing it some where else ?

It depends on the laws of the state where the transaction takes place, and where you move it to. In Florida, if you move it out of the state within 90 days after purchase, you do not have to register it, and you do not have to pay sales/use tax. Wherever you move it to, however, might require registration and/or use tax.


So, the definitive answer here is, it depends.

[AndrewA2]

It may be easier to complete the sale out of US waters.
If you plan to keep the boat in US waters full time for those 2-3 years you will need to pay import duty and state registration fees, and i believe Use tax (typically the same as sales tax)
If you think you will leave us waters several times within that time frame, you may want to consider not importing or state registering the boat, instead treating it as "tourist" vessel and apply for cruising permits

The bigger issue i see (and that someone else already highlighted) is that the boat is NOT USCG registered already, and you are not a US Citizen (neither am I so understand the complexity). As such you cannot USCG register the vessel. As such there is no need to complete the sale in US waters, pay sales/use/import taxes, or state registration fees. especially when you plan on leaving in 2-3 years

I am in a similar boat (pun intended) - there is a whole thread covering a lot of this that has been invaluable to me!
https://www.cruisersforum.com/forums...lp-229930.html

[Nucopia]

Thanks guys , my sister in-law is a US citizen living in New Jersey and we have other friends living in the states from Georgia ,Nevada and Florida.
We might take a trip there this year and travel around for about six to eight weeks and I just wanted to underused the legalities of buying a boat if a to good to pass up opportunity presented its self.

Although if we did buy a boat when we are there , the next question is how to get it back home..

[Nucopia]

Question.
If I bought a boat in the US with the intention of taking it out of the US and bringing it to Australia.
What do I need to do to have it deregistered in the US ?

I have looked up how to register a boat in Australia and it can be done easily and by an authorized representative on my behalf, while I was still in the states. Cost to register a boat 10mtrs and above , would cost me $267 for a new registration.