"Not for sale to US residents while in US waters"?

Discussion in 'All Things Boats & Boating' started by Squidly-Diddly, Nov 28, 2016.

  1. Squidly-Diddly
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    Squidly-Diddly Senior Member

    http://sfbay.craigslist.org/sfc/bod/5895396452.html

    is this the yachting equivalent of "car runs great, NOTHING wrong with it, buyer responsible for Smog Check"? (seller has been told by Smog Station it will be thousands)

    If this a tax dodge or an equipment/regs issue?

    If its an issue getting it past some US regs, what are the main issues that crop up, especially with a recently and professionally built $300,000 boat?
     
  2. The Q
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    The Q Senior Member

    The only time I've come across that statement ( or actually it was not for sale to EU residents) was because the taxes weren't paid. I note It says finished with a world cruise in mind. I would think no taxes have been paid and the person who owns it was intending to leave your shores, but for some reason no longer can do so.
    I should add I built a boat while living abroad, and brought it back with me as a personal import, the Customs restriction was If I sold it with in 5 years, I would have to pay import duty and VAT (sales tax) on top of that.
     
  3. daiquiri
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    daiquiri Engineering and Design

    Interesting. So, considerig the boat's current position, the deal can only be made in Canadian waters.
    Perhaps the seller is a Canadian citizen, and the boat is just moored in a Chicago marina. In that case, selling it to a US citizen in US waters could raise some customs or additional tax issue?
     
  4. Mr Efficiency
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    Mr Efficiency Senior Member

    Maybe ask the seller.
     
  5. mydauphin
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    mydauphin Senior Member

    I see this all the time, it is very common in large $ yachts. Many rich people don't want IRS knowing what they do.
     
  6. BKay
    Joined: Jan 2011
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    BKay Junior Member

    I understood this to mean the vessel was built in some location where an import duty would be required and has not been paid. It could be that the boat is in country on a cruising permit or is registered to an offshore entity.

    I further understood that a foreign individual could purchase the boat in US waters legally or an "offshore closing" with a US residen could be transacted. But if a US resident conducted an offshore closing then registered the boat in the US, they would be responsible for the import duty.
     
  7. WestVanHan
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    WestVanHan Not a Senior Member

    Bkay has it right.
    Non-US registered boats that are in US boats under a cruising permit and no US Import Duties have been paid.Any broker has to advertise this fact.

    But a US citizen can buy it,best way is they have to pay the US Customs Entry Bond and US Import Duty. Depends on where it was built it can be almost nothing up to about 2% IIRC.

    There's another way it's called "offshore sale" or some such thing, but IIRC the potential buyer cannot even set foot nor even view the boat while in US waters.
    Different paperwork and fooling about etc.
    Or one could start up an LLC or offshore trust,and the LLC/trust owns the boat,and you purchase the LLC/trust. Much more fiddling about.

    I sold a bunch of boats boats into the US when the exchange rate was favourable to do so.
     
  8. Squidly-Diddly
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    Squidly-Diddly Senior Member

    Now I'm wondering WTF happens if Title is disputed on some deal involving foreigners.

    Say I buy an off shore boat and pay import fees, etc. Then some foreigner pops up and says he kinda actually built it and was never paid and the seller didn't have permission to sell it to anyone else. Would it matter if a foreign govt's police would at least take a report?

    But what if the way foreigners do stuff is completely diff than US Govt?
     
  9. mydauphin
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    mydauphin Senior Member

    Danger... many years ago... and probably still happens. International crooks sell basically stolen boats with fake paperwork. Many in the old drug business would buy and sell these. So always make sure you know the real history of a boat.
     

  10. Angélique
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    Angélique aka Angel (only by name)

    -
    I've looked at some other ads of this boat for more info . . .

    Sailboat Listings ---> 40' Fusion 40
    Wright Yachts ---> 2012 FUSION 40

    I didn't see any mention here of < Sales - Import Duty - VAT - Owner Transfer > limitations, or related issues of the kind, on this brokers own sales page of this boat.

    Yacht World ---> 2012 Fusion 40
     
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