Carving & Marking of Vessels: Most states
require that the vessel have a state registration number and a decal
on the bow of the boat. However, if the vessel is Documented or
under any other form of formal registry, this requirement is lifted. (BUT, most U.S., States DO require a registration for a Documented
Vessel, and require a Decal be displayed on the vessel. There are
different carving and marking requirements for Commercial or
Pleasure, and also for the different Ports (countries) of Registry. We will always advise you of the Carving & Marking Requirements for
your vessel.
Cruising Permits: U.S. Cruising Permits are issued to foreign registered vessels which wish to move freely from port to port within the United States without having to clear customs each time. U.S. Cruising Permits are issued for a period of one year. The vessel must then depart U.S. Waters and be gone for at least 15 days, touching a foreign port prior to its return to the U.S., before a new Cruising Permit will be issued. (Proof of touching a foreign port is required by the Dept. of Homeland Security (U.S. Customs). Not all foreign flagged vessels are eligible for a U.S. Cruising Permit.
More Info.
Documentation Agents: (Such as All Yacht Registries, Inc.,) are in
the unique position of protecting ALL PARTIES involved in a vessels
transfer of ownership. This means we are protecting, Buyer, Seller,
Listing Broker, Selling Broker, and the Lender. In Europe the costs
of the agent are often split. But in the U.S., all Documentation
Fees are paid by the purchaser.
Duty: Vessels cannot be sold in the United States unless they are
duty paid. If a vessel has become part of the commerce of another
country…by way of actually physically exporting the boat AND paying
duty to another country, the vessel must be Custom Cleared by a
Customs Broker, and duty must be paid…currently about 1.5 percent. (Simply flagging a vessel foreign does not mean that duty is due). Also, U.S. built and Canadian built boats are duty free, but must
still be custom cleared, upon entry for sale in the U.S. It is
advisable to contact a customs broker to answer all of the possible
scenarios prior to placing the vessel on the market.
Hull Identification Numbers: The regulations requiring Hull
Identification Numbers (HINs) for recreational boats are intended to
provide a uniform positive identification of each boat manufactured
in or imported into the United States. The Coast Guard uses the HIN
to identify the safety standards that apply to a particular boat and
in identifying specific boats involved in a defect notification
campaign. The States use the HIN to identify boats for State
registration and titling. State marine police units and federal law
enforcement agencies such as the FBI and National Crime Information
Center use the HIN to trace stolen boats. Coast Guard regulations
require manufacturers to affix two identical Hull Identification
Numbers (HINs) on every recreational boat used or intended to be
used on waters subject to Federal jurisdiction. Each HIN consists of
12 continuous characters at least one quarter of an inch in height,
uninterrupted by spaces, slashes, hyphens or other symbols.
Offshore Closings: The decision to have an offshore closing is a
hefty one. We evaluate your needs and then we steer you in the right
direction. It is NOT necessary to have a Maritime Attorney handle an
offshore closing. However, a much better comfort level can be
reached if one is advising you. We work hand in hand with the
Maritime Attorney. Please see our
referrals page for an Admiralty /
Maritime attorney.
Sales Tax: Sales tax is due when the vessel is purchased. A trade up
or trade down might reduce the amount of taxes due. (Some states do
not allow a tax credit on a trade vessel). Most States will allow a
"Removal Affidavit" to be signed for vessels purchased which are to
be removed from the state within a certain period of time. Taxes
will then be paid to the state of "principal use" upon arrival into
that state. Some states do not charge sales tax on vessels, and some
impose a Personal Property tax, (both State and County Property
Taxes could be due). And most states are reciprocal on taxes paid
elsewhere. If you are confused, just call us, and we will help you
to navigate your way through your own tax situation. Please visit
our State Links on our
Fees page for helpful information.
Tonnage: Each “formal” port of registry requires a formal admeasurement of the vessel to determine its Tonnage, if it is over
a certain length. A Tonnage Survey will be performed (not to be
confused with a "buyer's survey". The requirement differs from
Country to Country. Tonnage is often confused to mean the weight of
the vessel, but is actually based on volume, water tight doors, and
where the engine(s) are located.
VAT: The EU has established a VAT which provides a liability for
yachts purchased or “Formally Imported” into all EU waters. While
there are “guidelines”, as usual, they are interpreted,
administered and enforced by each country a little
differently…causing a great deal of confusion and misunderstandings
in various countries. It is usually the “Local Official” and his/her
interpretation of the guidelines which enforces the rules.
Two usual methods for calculating VAT by Customs Officials are:
1. When the vessel clears customs entering an EU Country.
2. Routine inspections of boats cruising in EU waters.
A boat owned by an EU resident (individual or body corporate) may
move freely throughout the EU, IF VAT has been paid on the vessel in
any one of the EU countries. The rules state that a vessel belonging
to an EU citizen, or flying the flag of an EU country, must be VAT
paid. Therefore we recommend you carry proof of the VAT payment on
board at all times. Also, if a vessel has been determined to be
exempt from VAT, we highly recommend carrying on board a document
from any relevant authority stating such reasons for the exemption.
It is essential to ascertain on arrival in a new country the exact
situation concerning VAT. As non-EU boats are required to contact
immigration whenever crossing a border between EU countries, this
may be the time to make such enquiries. Yachts must carry their
original registration document, insurance policy and ship's radio
license. One member of the crew must have a radio operator’s
certificate of competence. For EU boats, proof of VAT status is also
required. It is also very useful to have a typed sheet containing
the name of the boat, port of registry, and the crew list. It is
important that you “know before you go”.