How to evade/postpone USA export duty

[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?

[Mystic38]

Export duty?

Buy a boat legally in the USA and sail it to the uk. As a foreign national you should not even be required to pay sales tax. There are no fees or charges to leave the country.

Import fees And taxes once you arrive in the uk are another story

[Tetepare]

A 30’ boat under 10k quid isn’t worthy of crossing the Atlantic. Neither is someone with no experience.

And as said there is no export duty.

Whole lotta wrong here

[ausnp84]

Originally Posted by Tetepare

A 30’ boat under 10k quid isn’t worthy of crossing the Atlantic. Neither is someone with no experience.

And as said there is no export duty.

Whole lotta wrong here

Well, that depends on how much is spent on the boat after the initial £10k purchase price....



To the OP - I bought a British registered O'day 34 in Florida and departed the US. No export duty to be paid....


n

[SEAHORSES2]

I forgot to add that my first voyage will be with a RYA qualified Captain.
Many thanks.

[SEAHORSES2]

Great now I can continue to search for a suitable yacht near Florida and if i'm lucky it will already be British registered. Many thanks!

[Creedence]

Yachtworld

[boatman61]

I bought a 37ftr for $25K in Oriental NC back in 04.. spent a few more $'s on new portlights, wp etc before heading for the UK..
No Taxes..

[sepharad]

My friend, we are speaking about America.

No export duty.
In some states NO sales tax
you don't need a license to buy a boat.
You don't need a Power squadron or other RYA equivalent ticket.

You just buy it! Refreshing concept!

Now if you wish to operate it there, well you must buy an annual tag from the state in which you choose to operate.

As a brit I don't think you can register it there in most states, (I think you can in Delaware) which is a shame, since registration with the USCG is something like $100-$200. Maybe less.

That said. I WOULD take a course and get a ticket, because life is good and drowning...less so. I also would be cautious in the choice of a blue water boat for $10,000 if you have limited knowledge and hope to survive the trip. I think you could find a decent boat if you are careful and have and apply time and knowledge. The country is FULL of boat bargains and bombs.

Can you avoid the dreaded VAT by buying a pre-vatted vessel? (made that word up).

In the UK there are also some pre-VAT boats at great prices.

Choose wisely.

[Montanan]

Going to the east coast of the USA to buy an inexpensive boat does not sound like an economic choice. Your travel costs [flight(s), rental car(s), lodging, meals, ancillary expenses, mobile phone] will become a major part of your targeted purchase value, just to get to the States, if you could, and then for traveling within the States to visit marinas and boatyards and to have the vessel(s) surveyed. Yes, one would ultimately have the pleasure of sailing it back across the pond, but it will likely need considerable refitting and equipping to be voyage ready and that will take a lot of time spent in Yankeedom before departing. Costs of staying at marinas, and boat yards add up. Mind you insurance may be a challenge to get for a boat going beyond coastal travel. And you mentioned having crew which will be added expenses of travel, lodging, board and they also subject to travel restrictions.

FYI. There is no such thing as an Export Tax in the USA.

The boat will need to be foreign flagged [UK perhaps] or registered by the State in which waters it will reside if not flagged. The rules of titling and registering being very much specific to each State, so once you acquire the vessel you will need to determine what is required for the location, which likely will include paying a Sales, or a Use tax on the value of the purchase, unless the boat is promptly exported from the State of purchase, and / or subject to the privilege Use taxation upon entry to an adjoining State other than the one it was purchased in. There being 50 States, hence 50 sets of rules. The United State of America ARE, not the United States of America IS, despite the National Motto being E pluribus unum. Your British citizenship plays no factor into registration of vessel in a State's waters. Registration and / or titling at the State level is dependent on where the boat resides, not who or where the owner is. Of course, you not being a USA citizen will not be allowed to have the vessel documented by the US Coast Guard and flagged as a USA vessel.

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.

The boat may have had EU VAT paid, but if it has been out of the EU for three years it will be subject to a reimportation with duty and VAT due upon arrival to the first EU country of entry. As to the UK, well, "Brexit That" as to what the rules will be upon entry to the UK or the EU. Besure to obtain the appropriate documentation regarding the payment of EU VAT if the boat has only been away from the EU within the statutory period of time, and factor in the time of its reentry by voyaging back to the EU from the States as to safeguarding the prior VAT payment benefit.

And presently realize that with the Pandemic there are travel restrictions, meaning y'all are NOT allowed to come to the former colonies. Not sure you would want to if you could. You may need to / desire to acquire travellers health insurance for providing coverage during your touring of the USA. Medical costs can be very high if you have to go to the hospital in the USA, for an accident or major health issue [e.g., Covid-19]. Far more than what you have targeted for buying an old boat.

"Entry of foreign nationals who were physically present within the following list of countries within 14 days prior to their entry or attempted entry into the United States is suspended, per Presidential Proclamations 9984, 9992, 9993, 9996 and the subsequent proclamation issued May 24, 2020:

Relevant snipets below of the list of countries.

The United Kingdom of Great Britain and Northern Ireland, excluding overseas territories outside of Europe;

The Republic of Ireland;

The 26 countries that comprise the Schengen Area (Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and Switzerland)."

And realize that there are various State / Local, and InterState Covid-19 restrictions which are ever changing.

This is a good time to stay at home, not a good time to go traveling anywhere, especially for something as non-essential as a recreational boat, or voyage.

Good luck with your search for your boat and wishing many fine days under sail. Stay healthy.

[grae]

you should also check out the RCD requirements if it's not a CE marked boat.

The costs involved to get it certified once you got back to the UK, particularly if it has an elderly diesel inboard, would/could be prohibitive

link: https://www.rya.org.uk/knowledge-adv...directive.aspx

(I looked into this when I thought about taking my Cal29 home to the UK and decided it wouldn't be worth it)

[Montanan]

Originally Posted by grae

you should also check out the RCD requirements if it's not a CE marked boat.

The costs involved to get it certified once you got back to the UK, particularly if it has an elderly diesel inboard, would/could be prohibitive

Excellent point.

EU-type approval for the engine will be required to clear customs upon importation. Truly prohibitive to contend with if the engine does not meet the standards.

https://eur-lex.europa.eu/legal-cont...6R1628&from=EN

[redneckrob]

Originally Posted by Montanan

Going to the east coast of the USA to buy an inexpensive boat does not sound like an economic choice. Your travel costs [flight(s), rental car(s), lodging, meals, ancillary expenses, mobile phone] will become a major part of your targeted purchase value, just to get to the States, if you could, and then for traveling within the States to visit marinas and boatyards and to have the vessel(s) surveyed. Yes, one would ultimately have the pleasure of sailing it back across the pond, but it will likely need considerable refitting and equipping to be voyage ready and that will take a lot of time spent in Yankeedom before departing. Costs of staying at marinas, and boat yards add up. Mind you insurance may be a challenge to get for a boat going beyond coastal travel. And you mentioned having crew which will be added expenses of travel, lodging, board and they also subject to travel restrictions.

FYI. There is no such thing as an Export Tax in the USA.

The boat will need to be foreign flagged [UK perhaps] or registered by the State in which waters it will reside if not flagged. The rules of titling and registering being very much specific to each State, so once you acquire the vessel you will need to determine what is required for the location, which likely will include paying a Sales, or a Use tax on the value of the purchase, unless the boat is promptly exported from the State of purchase, and / or subject to the privilege Use taxation upon entry to an adjoining State other than the one it was purchased in. There being 50 States, hence 50 sets of rules. The United State of America ARE, not the United States of America IS, despite the National Motto being E pluribus unum. Your British citizenship plays no factor into registration of vessel in a State's waters. Registration and / or titling at the State level is dependent on where the boat resides, not who or where the owner is. Of course, you not being a USA citizen will not be allowed to have the vessel documented by the US Coast Guard and flagged as a USA vessel.

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.

The boat may have had EU VAT paid, but if it has been out of the EU for three years it will be subject to a reimportation with duty and VAT due upon arrival to the first EU country of entry. As to the UK, well, "Brexit That" as to what the rules will be upon entry to the UK or the EU. Besure to obtain the appropriate documentation regarding the payment of EU VAT if the boat has only been away from the EU within the statutory period of time, and factor in the time of its reentry by voyaging back to the EU from the States as to safeguarding the prior VAT payment benefit.

And presently realize that with the Pandemic there are travel restrictions, meaning y'all are NOT allowed to come to the former colonies. Not sure you would want to if you could. You may need to / desire to acquire travellers health insurance for providing coverage during your touring of the USA. Medical costs can be very high if you have to go to the hospital in the USA, for an accident or major health issue [e.g., Covid-19]. Far more than what you have targeted for buying an old boat.

"Entry of foreign nationals who were physically present within the following list of countries within 14 days prior to their entry or attempted entry into the United States is suspended, per Presidential Proclamations 9984, 9992, 9993, 9996 and the subsequent proclamation issued May 24, 2020:

Relevant snipets below of the list of countries.

The United Kingdom of Great Britain and Northern Ireland, excluding overseas territories outside of Europe;

The Republic of Ireland;

The 26 countries that comprise the Schengen Area (Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and Switzerland)."

And realize that there are various State / Local, and InterState Covid-19 restrictions which are ever changing.

This is a good time to stay at home, not a good time to go traveling anywhere, especially for something as non-essential as a recreational boat, or voyage.

Good luck with your search for your boat and wishing many fine days under sail. Stay healthy.

You may find it interesting that adults in MD have to take and pass a safe boating class....but only if born after July 1st, 1972. So my 20+ years as a Coast Guard officer are worth nothing, since I was born a few months after that entirely arbitrary deadline, but someone a year older than me who's never seen the ocean or a boat....good to go!
Actually due to my time in the Coast Guard I'm all in favor of a boating test requirement, but also from that experience where the sea didn't seem to give anyone a break just because if their age (usually the opposite) I hate the fact they so transparently pandered to senior voters in such an arbitrarily discriminatory way. It just makes even those of us fully for the concept against this version of it.

[ausnp84]

Originally Posted by grae

you should also check out the RCD requirements if it's not a CE marked boat.

The costs involved to get it certified once you got back to the UK, particularly if it has an elderly diesel inboard, would/could be prohibitive

link: https://www.rya.org.uk/knowledge-adv...directive.aspx

(I looked into this when I thought about taking my Cal29 home to the UK and decided it wouldn't be worth it)

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

[DirtyPigeon]

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?

State register it

https://montanacorporate.com/

Originally Posted by Tetepare

A 30’ boat under 10k quid isn’t worthy of crossing the Atlantic. Neither is someone with no experience.

And as said there is no export duty.

Whole lotta wrong here

[laughs in Flicka 20]

His goals are just fine, personally I think he has some great adventures ahead of him and there is a good deal of into level cruising he can do around the states to get ready for his crossing