How to evade/postpone USA export duty

[Dooglas]

Originally Posted by Montanan

Only youngsters, e.g. 12 to 16 years of age, are required to have a competency certificate to be able to operate a motorized vessel in a few states. Any adult can operate a vessel in the USA, no licenses involved, and yes, one does see many untrained and incompetent skippers.

This may be true in your state as rules vary. In many states, however, a boaters operating license or safety certificate is required to operate a powered vessel. Certainly true in my state of residence, Oregon -

https://www.oregon.gov/OSMB/boater-i...ion-Cards.aspx

[George DuBose]

"A 30’ boat under 10k quid isn’t worthy of crossing the Atlantic.

Neither is someone with no experience."

First, the poster of this comment clearly doesn't know the US used boat market. There are plenty of boats available for a lot less than their worthiness.

10k quid is what...$15000? I had a boat capable of crossing the Atlantic and couldn't give it away.

...and there are plenty of people who go sailing with no experience and learn by doing.

[Montanan]

Originally Posted by ausnp84

On this - and while not strictly legal - who’s actually going to check whether your boat is CE marked or meets CE directives? Once you’ve arrived in the UK with a landfall in (most likely) Falmouth, no-one is going to make the trek out to your boat to check everything, unless of course you draw attention to yourself. Then of course it’s just a case of doing the SSR reg and enjoying your sailing.

I’m not saying to do it obviously, just that it’s highly unlikely you’ll get boarded and RCD / CE checked.... (and if you are, you could just say it’s a custom build).

N

Generally there are two sets of requirements that must be satisfied when a boat is imported into the EU – payment of VAT and compliance with the Recreational Craft Directive.

Notice 8: sailing your pleasure craft to and from the UK

https://www.gov.uk/government/public...-uk#P151_19000

https://www.gov.uk/government/public...nd-from-the-uk

When arriving direct from a country outside the EU (the Channel Islands are regarded as outside the EU for this purpose), you must phone the National Yachtline. You will need to inform the Yachtline if any of the following apply:

VAT has not been paid on the vessel
you have any goods in excess of the travellers’ allowance detailed in Notice 1: Travelling to the UK
you have on board goods which are to be treated as duty free stores
you have any prohibited or restricted goods
there is any notifiable illness on board
there are any people on board who need immigration clearance
any repairs or modifications, other than running repairs, have been carried out since the vessel last left the UK or EU
You will need to comply with any further instructions that you are given.

If arriving from outside the EU the National Yachtline will ask you to complete form C1331. If you already have a form C1331 part 2 on board, from when the vessel left the UK, you should complete section (iii) amending details of persons on board, if necessary, then sign and date the form again. You can obtain form C1331 or by phoning the Imports and exports: general enquiries helpline. The form may also be available from some local yacht clubs and marinas.

You should send the completed C1331 forms to the UKBA address shown in paragraph 7.2 which is also given on the C1331 form.

Except for contacting the customs authorities as above, you must not land goods or persons or transfer them to another vessel until a customs official says you may do so.

The boat will be subject to assessment by the nation's notified body.

For the UK one can look up the Notified Bodies, here: https://ec.europa.eu/growth/tools-da...ody&cou_id=826


Useful reference link at the RYA as to importing a boat: https://www.rya.org.uk/knowledge-adv...directive.aspx

"Post construction assessment

If the boat does not have a builder’s plate/CE marking you will need to establish whether or not it should be RCD compliant. If it should be RCD compliant then you will need a Post Construction Assessment carried out. The legal requirement for this is set out in Article 19 of the Directive and the procedure is laid down in Annex V.

If the boat is exempt from the RCD then you should get documentary evidence to prove this in case you are asked for such proof at a later date.

A boat which is not exempt from the RCD, but which is not CE marked for whatever reason – such as a boat which was manufactured outside the EEA which is being imported into the EEA (which is not only visiting the EEA for reasons of tourism or in transit) – will need a post construction assessment (which may result in significant modifications) in order for the boat to be certified RCD compliant.

A post construction assessment for a non-compliant vessel which is imported from a third country can only be applied for by private importers. A post construction assessment can be arranged through a Notified Body.

Details of Notified Bodies are listed on the EU Commission website. (In the left hand menu select 'Country' , then choose 'United Kingdom', the in the dropdown list choose '2013/53/EU Recreational Craft and Watercraft' to see a list of Notified Bodies for the RCD in the UK)." https://ec.europa.eu/growth/tools-da...n=country.main



The Recreational Craft Directive, Directive 2013/53/EU, originally Directive 94/25/EC on recreational craft[1] amended by Directive 2003/44/EC, is a European Union directive which sets out minimum technical, safety and environmental standards for the trade of boats, personal watercraft, marine engines and components in Europe. It covers boats between 2.5 and 24m, personal watercraft, engines and a number of components built since 1998. It ensures their suitability for sale and use in Europe.

The 2013 Directive is usually referred to as RCD2 to differentiate it from the 1994 original.

REGULATIONS AFFECTING BOATS PERMANENTLY IMPORTED INTO THE EU

European Union Recreational Craft Directive (RCD)

Since 16 June 1998 all recreational craft with few exceptions, between 2.5 metres and 24 metres in length, imported into the European Economic Area (EEA) for the first time, and home-built boats if placed on the market within five years of completion, must comply with the essential requirements of the Recreational Craft Directive (RCD) and must be CE marked. The EEA includes all EU countries plus Iceland and Norway

Boats that will need to comply with the Directive and be CE marked include:

Boats built outside the EEA which were not put into service in the EEA prior to 16 June 1998. Put into service means the first use by the end user but does not include boats put temporarily into service for reasons of tourism or transit.
Boats built for own use if subsequently placed on the EEA market during a period of five years of completion. Placed on the EEA market means the first making available against payment or free of charge


Boats that do not need to comply with the Directive include:

Boats completed or put into service in the EEA (and territories*) prior to 16 June 1998.
Boats built in the EEA prior to 16 June 1998 even if exported and subsequently re-imported after 16 June 1998.
Boats built for own use provided they are not subsequently placed on the EEA market during a period of five years.
Boats intended for racing and labelled as such by the manufacturer, his agent or the importer.
Canoes kayaks, gondolas, pedalos, sailing surfboards, powered surfboards and personal watercraft.
Boats designed before 1950, built predominantly of the original materials and labelled as such by the manufacturer, his agent or the importer.

Directive 94/25/EC, as amended by 2003/44/EC, applies to new and second hand recreational craft from 2.5m to 24m in length, personal watercraft, marine propulsion engines and components placed on the market for the first time after 1998. Products excluded from the scope of the Directive include: canoes, kayaks, gondolas, pedalos, sailing surfboards, surfboards, racing boats, historical craft, craft built for own use provided that they are not subsequently placed on the market during a period of five years, commercial vessels carrying passengers (covered by separate legislation), submersibles, air cushion vehicles, hydrofoils, and external combustion steam powered craft.

Products falling within the scope of the Directive must comply with the essential requirements set out in the Annex I. These include requirements for the design and construction of crafts such as boat design categories, craft identification, the owner's manual, as well as integrity, structural and installation requirements. Other requirements apply to the exhaust and noise emissions from propulsion engines. To comply with the essential requirements, over 60 EN-ISO harmonised standards were developed, which provide guidelines to meet the essential requirements. Using the EN-ISO harmonised standards is voluntary and provides presumption of conformity with the Directive's requirements. However, manufacturers may choose alternative solutions to comply with the essential requirements.

Harmonised standards for Directive 94/25/EC are developed at international level by the International Organization for Standardization in the ISO Technical Committee 188.

Products which fulfill the Directive's essential requirements must bear the CE marking of conformity. The CE marking must appear in a visible, legible and indelible form on the product or, in the case of small components, its packaging. Where relevant, it should be accompanied by the identification number of the Notified body that carried out the conformity assessment procedures.

In addition to the CE marking, the recreational craft must be accompanied by the following documentations and markings: the boat builder's plate; craft and engine identification number; owner's manual; and a written declaration of conformity. These items are necessary for the product to be considered as compliant with the requirements of the Directive.

Notified bodies are appointed at the national level by EU Member States to carry out conformity assessments on boats and engines according to the requirements of the Directive. To assist in the uniform interpretation and application of the Directive, the Recreational Craft Sectoral Group was established in 1995.


Since 18 January 2017, the latest version of the Recreational Craft Directive 2013/53/EU became applicable.
The new directive now requires the means of reboarding to be: accessible to or deployable by a person in the water unaided. Sailing yachts now need to comply with visibility for helmsman requirements.

Means of escape in the event of inversion is now only required for multihull susceptible to inversion.

Toilets must now have a holding tank, toilets can not be discharged directly overboard but must pass through the holding tank Manufacturers need to ensure that the propulsion engines are now complying with RCD.

When is EU VAT Payable?

A VAT is due:-

If a non-EU boat remains in the EU beyond its Temporary Importation relief period (maximum 2 years if part of it is in bond).
If a non-EU boat is sold within the EU.
If a boat is used by an EU resident.
If a VAT-paid boat leaves the EU for more than 3 years and is not returned by the same owner or has more than running repairs done while away.
Paying EU VAT on a Boat

A VAT-paid boat can remain permanently in the EU and be sailed by anyone, whether an EU resident or not.

The amount of VAT to be paid is based on its current value. It is payable at the first port of call once the tax is due. It is, therefore, wise to consider the most advantageous country in which to import the boat. There is not so much variation in VAT rates as there used to be, so it will more likely depend on how sympathetic a valuation can be obtained and how easy the process proves to be.

[ausnp84]

Originally Posted by Montanan

Generally there are two sets of requirements that must be satisfied when a boat is imported into the EU – payment of VAT and compliance with the Recreational Craft Directive.

Notice 8: sailing your pleasure craft to and from the UK

I think in your copying and pasting of directives and regs, you’ve missed what I was saying.

When you sail into Falmouth Harbour (or any south coast harbour, following a Channel crossing), it’s very rare to get boarded or checked by Customs. Simply sailing in with a SSR certificate and insurance paperwork will be enough to satisfy any marina... And as for ongoing use, it’s almost never heard of to get boarded. Things might be very different in the US where the CG board boats and do inspections - that just doesn’t happen on this side of the Pond.

Yes, if you want to go down the line you need to call the Yachtline (no one has ever answered when I tried to call btw)... but if you were bringing a boat over purely for personal use, you could quite easily sail in, keep to yourself and no-one would be any the wiser. Even come sale time, an older boat wouldn’t be expected to have HINs, RCD or CE paperwork so it’d just be a straight sale and re-register.

N

[boatman61]

Originally Posted by Montanan

Generally there are two sets of requirements that must be satisfied when a boat is imported into the EU – payment of VAT and compliance with the Recreational Craft Directive.

Notice 8: sailing your pleasure craft to and from the UK

https://www.gov.uk/government/public...-uk#P151_19000

https://www.gov.uk/government/public...nd-from-the-uk

When arriving direct from a country outside the EU (the Channel Islands are regarded as outside the EU for this purpose), you must phone the National Yachtline. You will need to inform the Yachtline if any of the following apply:

VAT has not been paid on the vessel
you have any goods in excess of the travellers’ allowance detailed in Notice 1: Travelling to the UK
you have on board goods which are to be treated as duty free stores
you have any prohibited or restricted goods
there is any notifiable illness on board
there are any people on board who need immigration clearance
any repairs or modifications, other than running repairs, have been carried out since the vessel last left the UK or EU
You will need to comply with any further instructions that you are given.

If arriving from outside the EU the National Yachtline will ask you to complete form C1331. If you already have a form C1331 part 2 on board, from when the vessel left the UK, you should complete section (iii) amending details of persons on board, if necessary, then sign and date the form again. You can obtain form C1331 or by phoning the Imports and exports: general enquiries helpline. The form may also be available from some local yacht clubs and marinas.

You should send the completed C1331 forms to the UKBA address shown in paragraph 7.2 which is also given on the C1331 form.

Except for contacting the customs authorities as above, you must not land goods or persons or transfer them to another vessel until a customs official says you may do so.

The boat will be subject to assessment by the nation's notified body.

For the UK one can look up the Notified Bodies, here: https://ec.europa.eu/growth/tools-da...ody&cou_id=826


Useful reference link at the RYA as to importing a boat: https://www.rya.org.uk/knowledge-adv...directive.aspx

"Post construction assessment

If the boat does not have a builder’s plate/CE marking you will need to establish whether or not it should be RCD compliant. If it should be RCD compliant then you will need a Post Construction Assessment carried out. The legal requirement for this is set out in Article 19 of the Directive and the procedure is laid down in Annex V.

If the boat is exempt from the RCD then you should get documentary evidence to prove this in case you are asked for such proof at a later date.

A boat which is not exempt from the RCD, but which is not CE marked for whatever reason – such as a boat which was manufactured outside the EEA which is being imported into the EEA (which is not only visiting the EEA for reasons of tourism or in transit) – will need a post construction assessment (which may result in significant modifications) in order for the boat to be certified RCD compliant.

A post construction assessment for a non-compliant vessel which is imported from a third country can only be applied for by private importers. A post construction assessment can be arranged through a Notified Body.

Details of Notified Bodies are listed on the EU Commission website. (In the left hand menu select 'Country' , then choose 'United Kingdom', the in the dropdown list choose '2013/53/EU Recreational Craft and Watercraft' to see a list of Notified Bodies for the RCD in the UK)." https://ec.europa.eu/growth/tools-da...n=country.main



The Recreational Craft Directive, Directive 2013/53/EU, originally Directive 94/25/EC on recreational craft[1] amended by Directive 2003/44/EC, is a European Union directive which sets out minimum technical, safety and environmental standards for the trade of boats, personal watercraft, marine engines and components in Europe. It covers boats between 2.5 and 24m, personal watercraft, engines and a number of components built since 1998. It ensures their suitability for sale and use in Europe.

The 2013 Directive is usually referred to as RCD2 to differentiate it from the 1994 original.

REGULATIONS AFFECTING BOATS PERMANENTLY IMPORTED INTO THE EU

European Union Recreational Craft Directive (RCD)

Since 16 June 1998 all recreational craft with few exceptions, between 2.5 metres and 24 metres in length, imported into the European Economic Area (EEA) for the first time, and home-built boats if placed on the market within five years of completion, must comply with the essential requirements of the Recreational Craft Directive (RCD) and must be CE marked. The EEA includes all EU countries plus Iceland and Norway

Boats that will need to comply with the Directive and be CE marked include:

Boats built outside the EEA which were not put into service in the EEA prior to 16 June 1998. Put into service means the first use by the end user but does not include boats put temporarily into service for reasons of tourism or transit.
Boats built for own use if subsequently placed on the EEA market during a period of five years of completion. Placed on the EEA market means the first making available against payment or free of charge


Boats that do not need to comply with the Directive include:

Boats completed or put into service in the EEA (and territories*) prior to 16 June 1998.
Boats built in the EEA prior to 16 June 1998 even if exported and subsequently re-imported after 16 June 1998.
Boats built for own use provided they are not subsequently placed on the EEA market during a period of five years.
Boats intended for racing and labelled as such by the manufacturer, his agent or the importer.
Canoes kayaks, gondolas, pedalos, sailing surfboards, powered surfboards and personal watercraft.
Boats designed before 1950, built predominantly of the original materials and labelled as such by the manufacturer, his agent or the importer.

Directive 94/25/EC, as amended by 2003/44/EC, applies to new and second hand recreational craft from 2.5m to 24m in length, personal watercraft, marine propulsion engines and components placed on the market for the first time after 1998. Products excluded from the scope of the Directive include: canoes, kayaks, gondolas, pedalos, sailing surfboards, surfboards, racing boats, historical craft, craft built for own use provided that they are not subsequently placed on the market during a period of five years, commercial vessels carrying passengers (covered by separate legislation), submersibles, air cushion vehicles, hydrofoils, and external combustion steam powered craft.

Products falling within the scope of the Directive must comply with the essential requirements set out in the Annex I. These include requirements for the design and construction of crafts such as boat design categories, craft identification, the owner's manual, as well as integrity, structural and installation requirements. Other requirements apply to the exhaust and noise emissions from propulsion engines. To comply with the essential requirements, over 60 EN-ISO harmonised standards were developed, which provide guidelines to meet the essential requirements. Using the EN-ISO harmonised standards is voluntary and provides presumption of conformity with the Directive's requirements. However, manufacturers may choose alternative solutions to comply with the essential requirements.

Harmonised standards for Directive 94/25/EC are developed at international level by the International Organization for Standardization in the ISO Technical Committee 188.

Products which fulfill the Directive's essential requirements must bear the CE marking of conformity. The CE marking must appear in a visible, legible and indelible form on the product or, in the case of small components, its packaging. Where relevant, it should be accompanied by the identification number of the Notified body that carried out the conformity assessment procedures.

In addition to the CE marking, the recreational craft must be accompanied by the following documentations and markings: the boat builder's plate; craft and engine identification number; owner's manual; and a written declaration of conformity. These items are necessary for the product to be considered as compliant with the requirements of the Directive.

Notified bodies are appointed at the national level by EU Member States to carry out conformity assessments on boats and engines according to the requirements of the Directive. To assist in the uniform interpretation and application of the Directive, the Recreational Craft Sectoral Group was established in 1995.


Since 18 January 2017, the latest version of the Recreational Craft Directive 2013/53/EU became applicable.
The new directive now requires the means of reboarding to be: accessible to or deployable by a person in the water unaided. Sailing yachts now need to comply with visibility for helmsman requirements.

Means of escape in the event of inversion is now only required for multihull susceptible to inversion.

Toilets must now have a holding tank, toilets can not be discharged directly overboard but must pass through the holding tank Manufacturers need to ensure that the propulsion engines are now complying with RCD.

When is EU VAT Payable?

A VAT is due:-

If a non-EU boat remains in the EU beyond its Temporary Importation relief period (maximum 2 years if part of it is in bond).
If a non-EU boat is sold within the EU.
If a boat is used by an EU resident.
If a VAT-paid boat leaves the EU for more than 3 years and is not returned by the same owner or has more than running repairs done while away.
Paying EU VAT on a Boat

A VAT-paid boat can remain permanently in the EU and be sailed by anyone, whether an EU resident or not.

The amount of VAT to be paid is based on its current value. It is payable at the first port of call once the tax is due. It is, therefore, wise to consider the most advantageous country in which to import the boat. There is not so much variation in VAT rates as there used to be, so it will more likely depend on how sympathetic a valuation can be obtained and how easy the process proves to be.

The UK is no longer in the EU..

[Montanan]

Originally Posted by ausnp84

I think in your copying and pasting of directives and regs, you’ve missed what I was saying.

When you sail into Falmouth Harbour (or any south coast harbour, following a Channel crossing), it’s very rare to get boarded or checked by Customs. Simply sailing in with a SSR certificate and insurance paperwork will be enough to satisfy any marina... And as for ongoing use, it’s almost never heard of to get boarded. Things might be very different in the US where the CG board boats and do inspections - that just doesn’t happen on this side of the Pond.

Yes, if you want to go down the line you need to call the Yachtline (no one has ever answered when I tried to call btw)... but if you were bringing a boat over purely for personal use, you could quite easily sail in, keep to yourself and no-one would be any the wiser. Even come sale time, an older boat wouldn’t be expected to have HINs, RCD or CE paperwork so it’d just be a straight sale and re-register.

N

So you are saying one can break the law of the land as to immigration, border customs and taxation, and just be a smuggler.

Geez. Well heck, might as well just go rob a bank in the UK and have all the money one need to purchase a fancy new boat instead of a cheap boat in the USA.

And then when tariffs are implemented between the UK and the EU at the end of 2020, one could use the craft to smuggle goods or refugees/immigrants/sex slave across the Channel as well.

[ausnp84]

Originally Posted by Montanan

So you are saying one can break the law of the land as to immigration, border customs and taxation, and just be a smuggler.

Geez. Well heck, might as well just go rob a bank in the UK and have all the money one need to purchase a fancy new boat instead of a cheap boat in the USA.

And then when tariffs are implemented between the UK and the EU at the end of 2020, one could use the craft to smuggle goods or refugees/immigrants/sex slave across the Channel as well.

Well that’s one way to blow things entirely out of proportion...

You’ll note I didn’t say I encouraged it, just that if someone *did* have a cheap boat and sailed into the UK, and just kept to themselves while sailing around, it *could* be done.

Does it really hurt anyone sailing your £10k small boat around and not paying absurd amounts of VAT (remember, it’s what the customs person values it at, not what you paid) or complying with equally absurd aspects of the RCD? There’s a huge difference between smuggling in illicit substances or a multi-squillion pound vessel for commercial gain, and not declaring a small, cheap sailboat for personal use.

We are digressing somewhat though. To the OP, go visit any boatyard along the south / east coast and you’ll find many abandoned boats / keen sellers that’ll match your criteria, rather than trying to get to the US, dealing with a refit and Atlantic crossing, and then having to go through a beaurocratic nightmare....

N

[boatman61]

Originally Posted by Montanan

So you are saying one can break the law of the land as to immigration, border customs and taxation, and just be a smuggler.

Geez. Well heck, might as well just go rob a bank in the UK and have all the money one need to purchase a fancy new boat instead of a cheap boat in the USA.

And then when tariffs are implemented between the UK and the EU at the end of 2020, one could use the craft to smuggle goods or refugees/immigrants/sex slave across the Channel as well.

Speaking from personal experience if the boat is ones sole residence then VAT and CE is only applicable when one comes to sell it.. just clear in as normal from a foreign port.
Man thats one tree trunk on your shoulder..

[Dougtiff]

Forget Florida, get a copy of " this old boat ", possibly online, any number of sea worthy sail boats for sale for 20K,that will voyage across the Atlantic. For the nay sayers, read CHRIMPY, a Brit, Shane Action, who sailed a 18 ft. Plywood sloop across the Atlantic TWICE,circumnavigated the first time, second time to Costa Rican , where he settled, i met him in Malaysia, great guy.

[joelhemington]

Originally Posted by SEAHORSES2

I have spent a lot of time in canoes, on surfboards and in small power boats, mainly in South Africa.

Now i'm attracted to learning how to sail - blue water in particular.

Living in Scotland near Glasgow with the cold as a 60 year old landlubber has it's challenges.



I hope to purchase a second hand 30 footer for less than £10k to do a circumnavigation.

There are lots of suitable blue water yachts for sale on the east coast of the USA.

The problem is that being British and not American means that I would have to pay excessive Export Duty.

Are there any legal exceptions/loopholes that I could consider?

Landlubber in a 30' boat and circumnavigation doesn't make any sense. Just cuz the Pardey's did it doesn't make it wise. If you're talking about 10,000 pounds, that's usually about $15.000 so look a little bigger as there's currently a bunch of boats here under 40' that are well priced and could do what you're planning. The question remains, can you?

[DirtyPigeon]

Originally Posted by Montanan

So you are saying one can break the law of the land as to immigration, border customs and taxation, and just be a smuggler.

Geez. Well heck, might as well just go rob a bank in the UK and have all the money one need to purchase a fancy new boat instead of a cheap boat in the USA.

And then when tariffs are implemented between the UK and the EU at the end of 2020, one could use the craft to smuggle goods or refugees/immigrants/sex slave across the Channel as well.

Riiiiiight

If you think those things are even in the same field, wow

[jmschmidt]

Good responses from most everyone on this subject. The only hang up for you might be if you should like to to buy a US Coast Guard "Documented Vessel" (aka US Flagged) as opposed to a state registered one. Only US citizens my own a US Documented vessel. In the case you would have to cancel the documentation with the USCG and register it in one of the states (Florida, Virginia, or whatever).

As mentioned there is no "export" tax or duty on yachts, only on imports.
ssue is

[jmschmidt]

And please use the word "AVOID" not "EVADE" when discussing US taxes. The IRS is trying to track you down even as we speak.

[El Pinguino]

Originally Posted by Montanan

So you are saying one can break the law of the land as to immigration, border customs and taxation, and just be a smuggler.

Geez. Well heck, might as well just go rob a bank in the UK and have all the money one need to purchase a fancy new boat instead of a cheap boat in the USA.

And then when tariffs are implemented between the UK and the EU at the end of 2020, one could use the craft to smuggle goods or refugees/immigrants/sex slave across the Channel as well.

Well... the OP did ask about 'evading' taxes rather than avoiding them

Back to the OP.... plenty of good boats where you are.

My suggestion would be a Westerly similar to this one ( the first to pop up when I put Westerly into Yachtworld..)
https://au.yachtworld.com/boats/1979...sloop-3128205/
Handy for where you live, registered, tax paid, a go anywhere boat ( DuckDuck 'Dodo's Delight' if you don't believe me) ....

A bit more than what you want to pay but no cost of airfares to fly and look at a boat that turns out to be a POS, staying in motels as you trek around the countryside with limited idea of what you are looking for, etc etc....

[boatman61]

Or if you want to stay in budget there's boats in Holland like this..
https://www.inautia.com/used-boat-38...535450554.html