Legal issues/ fines ?

[Overlord]

I have a friend who bought a boat in 2018 in PR. He is a British Citizen. The deal was concluded and he flew to PR via the USA, purchased the boat and sailed it directly to the Chesapeake. The boat was still registered in the US at the time. He had it hauled out with the intention of returning after a few months. He never checked into the USA, and flew out the next day.
There were no border patrol issues as he’d flown into the states , then flew on a separate flight to PR. Sailed back into the states and then flew back to the UK.
Due to Covid and many other extenuating circumstances, he only returned 5 years later , refitted the boat and now either wants to sell it or go cruising. But now the vessel has been in the state of MD for 5 years, in storage and during that time no fees or taxes have been paid.
During that time he registered the boat in the UK. The PO deregistered the boat with the USCG at the time of sale. What would the best plan forward for him be ? What, if any fines or penalties are there to be had?

[Snore]

Get an attorney or vessel title pro. This sounds like a steaming hot mess!

[Jammer]

Probably nothing. (I am not an attorney)

The state of MD has a 5% use tax on boats that may possibly have been due when he brought the boat there, or possibly now, depending on the details of the circumstances. They're unlikely to notice or care unless it spends the summer in the same slip.


As the boat is now foreign flagged it needs a cruising permit and could run into difficulties without one. (Unless 30' or less) But a cruising permit is not necessary if you stay in the same port, or if you clear into each port you visit (complex; rules unclear).



Way forward? Choices would be 1) to commence cruising by leaving the USA without stopping in any other place in the USA, 2) to register the boat in MD and pay the 5% tax, dropping the UK registration for a time, possibly forming a corporation that owns the boat 3) take the boat to a nearby state such as Delaware where it can be registered without paying the 5% tax and commence cruising from there (or sell the boat from there) (Delaware does not have a use tax on boats), 4) Take the boat to Canada and back and apply for a cruising permit upon returning, 5) Ask an attorney for advice (bring money), 6) Ask CBP for advice