Registering a Vessel as British in the US

[Steven UK]

So I don't want to change my citizenship just to buy a boat and sail it out of US waters,
I don't live in the UK for more than 180 days a year,
Starting a corporation seems extreme (but not impossible),
I think I'll speak to a profecional, someone has sent me a link already... Many thanks for that.

I'll report back when I know more...

[Seighlor]

In 1982 I purchased a vessel located on the UK Isle of Wight. I took a train to London, provided the US embassy with my purchase documents and was provided with the paperwork to document the vessel with a US registry.

Suggest you check with a British embassy to see if they might provide the same service.

[boatpoker]

Originally Posted by Seighlor

In 1982 I purchased a vessel located on the UK Isle of Wight. I took a train to London, provided the US embassy with my purchase documents and was provided with the paperwork to document the vessel with a US registry.

Suggest you check with a British embassy to see if they might provide the same service.

Yes, they will do it. You just wont be able to sail the boat without a "cruising license" or "permission to proceed" from CBP.

[boatman61]

If you just want to buy a boat in the US and sail away you dont need a professional..
Your a Brit so I presume you have an address in the UK for your bank, mail etc..
Just complete the online form using the UK address and pay with a UK cc then ask whoever is at that address to scan and forward the certificate via email.
Be aware SSR is not proof of ownership.. cost around £35 for 5yrs.
The other option is Part 1.. also can be done online but requires much more boat info and is proof of ownership.. cost around £300..
Its only as complex as one chooses to make it.

[Steven UK]

Originally Posted by boatman61

If you just want to buy a boat in the US and sail away you dont need a professional..
Your a Brit so I presume you have an address in the UK for your bank, mail etc..
Just complete the online form using the UK address and pay with a UK cc then ask whoever is at that address to scan and forward the certificate via email.
Be aware SSR is not proof of ownership.. cost around £35 for 5yrs.
The other option is Part 1.. also can be done online but requires much more boat info and is proof of ownership.. cost around £300..
Its only as complex as one chooses to make it.

I have family in the UK but no bank or property... I’ll look into though.

[Steven UK]

Quick google found this...

There are two fundamental criteria for a yacht to qualify for a cruising licence:

The yacht must be owned by a natural person (i.e. an individual) or a legal person (i.e. a company) who is established (i.e. resident) outside the United States or Puerto Rico, and
The yacht must be of a foreign country that has demonstrated to the to the satisfaction of the Secretary of the Treasury of the United States that there are reciprocal arrangements for U.S. yachts operating in that country’s waters. The current list of qualifying countries is as follows:

It’s the ‘resident outside the US’ that worries me... more googling

[boatpoker]

Originally Posted by Steven UK

Quick google found this...

There are two fundamental criteria for a yacht to qualify for a cruising licence:

The yacht must be owned by a natural person (i.e. an individual) or a legal person (i.e. a company) who is established (i.e. resident) outside the United States or Puerto Rico, and
The yacht must be of a foreign country that has demonstrated to the to the satisfaction of the Secretary of the Treasury of the United States that there are reciprocal arrangements for U.S. yachts operating in that country’s waters. The current list of qualifying countries is as follows:

It’s the ‘resident outside the US’ that worries me... more googling

State Registered is your only option. Even though legal under the rules, some local LEO's (ignorant of their own laws) in Florida have been known to cause problems for foreign owners of State Registered vessels.

[Montanan]

Steven, which state will you be keeping the boat?

If someone who is NOT a U.S. Citizen purchases a boat in the U.S., the minute the sale is completed, it is now an un-registered vessel.

The new owner is required to file Form 1300 (Permit to Proceed) with U.S. Customs. (A Customs broker’s office will handle this if desired).

The vessel can operate within the jurisdiction of the Port (i.e. Dock A to Dock B in Miami) with a Bill of Sale on board AND a copy of the Bill of Sale on file with the Marine Division of U.S. Customs. BUT if the vessel wants to move to the jurisdiction of another Port (i.e. Miami to Fort Lauderdale), then Form 1300 MUST be filed.

Fines can be steep ($5,000) for a first offense.

Foreign flag registry is an option and then you can proceed to obtain a foreign vessel cruising license which last for a maximum of one year.
A new cruising license will only be issued if the following two conditions have been met:

At least 15 days have elapsed since the previous license either expired or was surrendered, and
The vessel arrives in the U.S. from a foreign port or place.
CBP will want to see foreign clearance paperwork as evidence that the vessel is arriving from a foreign location.

It is advisable for yacht owners to plan their cruising schedule carefully so that the mandatory 15-day period does not fall in the middle of a planned stay in U.S. waters. It is also sensible for yacht owners to surrender their cruising license to a CBP Officer when leaving U.S. waters for a foreign port so that a new licence can be applied for on re-entry to the U.S. It should be noted that traveling outside of U.S. waters while a cruising license is in effect does not fulfill the aforementioned 15-day requirement.

A foreign-flag yacht which is NOT in possession of a cruising license shall be required to comply with the laws applicable to foreign vessels arriving at, departing from, and proceeding between ports of the United States.

Reference: https://www.law.cornell.edu/cfr/text/19/4.94

If you are intending to stay in the US waters for more than a year it likely is easiest to just register with the state it will reside in so that you don't need to depart US waters for 15 days in order to obtain another year's cruise license.

Of course, then the issue of state sales/use tax and property taxation, etc. apply.

"The sales and use taxes on marine vessels is sometimes confused with duty and importation tax, but it is not the same system. Unlike duty, which is imposed by the federal government at the boat’s port of entry, the sales and use taxation is assessed at the state and local level and applied at the time the boat is purchased.

State sales tax is typically collected at the time of purchase if the vessel was acquired through a dealer or broker. If not paid at this time, it is remitted at the time of registration as a use tax. Although this process sounds straightforward, there are complicated issues surrounding ownership and use of boats that have been manufactured outside the U.S. and/or are foreign-flagged.

People generally opt to flag or register their boats offshore for one of the following reasons:

To avoid paying the state sales and use tax
The owner is not a U.S. citizen (only Americans may document their vessel with the Coast Guard), but non-US citizens can title [and register] their boat with any state. USCG documentation is in essence a titling of the vessel.
The boat is over 300 gross tons, making it subject to difficult and impractical local regulations
Foreign-flagged boats normally receive a cruising license from U.S. Customs and Border Protection, which prevents most states from trying to collect use tax when the vessel is in state waters. This step also exempts the boat from formal clearance and entry procedures.

Yacht owners are therefore exempt from use tax by registering their boats offshore and bringing it for example to Florida under a cruising license, but if they decide to sell, state law does not allow vessels under a cruising license to be put on the market unless the relevant use tax is paid or a registered brokerage assumes care and control of the boat. This is a complication that many boat owners are unaware of until they attempt to sell.

Sales and use tax can pose challenges for owners of foreign-flagged vessels."

[Montanan]

Steven:

Which state will you purchasing the boat?
Will the boat remain in that state's waters or will it be relocated to a different state? If relocated, to which state will it reside?

[Vasco]

Originally Posted by Montanan

Steven, which state will you be keeping the boat?

If someone who is NOT a U.S. Citizen purchases a boat in the U.S., the minute the sale is completed, it is now an un-registered vessel.

The new owner is required to file Form 1300 (Permit to Proceed) with U.S. Customs. (A Customs broker’s office will handle this if desired).

The vessel can operate within the jurisdiction of the Port (i.e. Dock A to Dock B in Miami) with a Bill of Sale on board AND a copy of the Bill of Sale on file with the Marine Division of U.S. Customs. BUT if the vessel wants to move to the jurisdiction of another Port (i.e. Miami to Fort Lauderdale), then Form 1300 MUST be filed.

Fines can be steep ($5,000) for a first offense.

Foreign flag registry is an option and then you can proceed to obtain a foreign vessel cruising license which last for a maximum of one year.
A new cruising license will only be issued if the following two conditions have been met:

At least 15 days have elapsed since the previous license either expired or was surrendered, and
The vessel arrives in the U.S. from a foreign port or place.
CBP will want to see foreign clearance paperwork as evidence that the vessel is arriving from a foreign location.

It is advisable for yacht owners to plan their cruising schedule carefully so that the mandatory 15-day period does not fall in the middle of a planned stay in U.S. waters. It is also sensible for yacht owners to surrender their cruising license to a CBP Officer when leaving U.S. waters for a foreign port so that a new licence can be applied for on re-entry to the U.S. It should be noted that traveling outside of U.S. waters while a cruising license is in effect does not fulfill the aforementioned 15-day requirement.

A foreign-flag yacht which is NOT in possession of a cruising license shall be required to comply with the laws applicable to foreign vessels arriving at, departing from, and proceeding between ports of the United States.

Reference: https://www.law.cornell.edu/cfr/text/19/4.94

If you are intending to stay in the US waters for more than a year it likely is easiest to just register with the state it will reside in so that you don't need to depart US waters for 15 days in order to obtain another year's cruise license.

Of course, then the issue of state sales/use tax and property taxation, etc. apply.

"The sales and use taxes on marine vessels is sometimes confused with duty and importation tax, but it is not the same system. Unlike duty, which is imposed by the federal government at the boat’s port of entry, the sales and use taxation is assessed at the state and local level and applied at the time the boat is purchased.

State sales tax is typically collected at the time of purchase if the vessel was acquired through a dealer or broker. If not paid at this time, it is remitted at the time of registration as a use tax. Although this process sounds straightforward, there are complicated issues surrounding ownership and use of boats that have been manufactured outside the U.S. and/or are foreign-flagged.

People generally opt to flag or register their boats offshore for one of the following reasons:

To avoid paying the state sales and use tax
The owner is not a U.S. citizen (only Americans may document their vessel with the Coast Guard), but non-US citizens can title [and register] their boat with any state. USCG documentation is in essence a titling of the vessel.
The boat is over 300 gross tons, making it subject to difficult and impractical local regulations
Foreign-flagged boats normally receive a cruising license from U.S. Customs and Border Protection, which prevents most states from trying to collect use tax when the vessel is in state waters. This step also exempts the boat from formal clearance and entry procedures.

Yacht owners are therefore exempt from use tax by registering their boats offshore and bringing it for example to Florida under a cruising license, but if they decide to sell, state law does not allow vessels under a cruising license to be put on the market unless the relevant use tax is paid or a registered brokerage assumes care and control of the boat. This is a complication that many boat owners are unaware of until they attempt to sell.

Sales and use tax can pose challenges for owners of foreign-flagged vessels."

Very good summary except the bit about having to leave US waters for 15 days before another cruising permit can be issued. The OP has a green card and therefore is not required to leave the US waters for 15 days before another cruising permit is issued.

https://help.cbp.gov/app/answers/det...cHpSeVZGWW4%3D

The regulation pertaining to cruising permits makes a distinction between residents and non-residents.

[Bill Seal]

If someone who is NOT a U.S. Citizen purchases a boat in the U.S., the minute the sale is completed, it is now an un-registered vessel.

Un-register or un-document? These two terms, like amps or amp hours, are tossed around aimlessly, making statements meaningless.
We bought our state-registerd (DMV) boat from a UK citizen who may have gotten caught up in this mess. Anyway, does Zeehag, or anybody with a Taiwan-built boat have any info about boats built overseas but first registerd in the US?

[boatpoker]

Originally Posted by Vasco

Very good summary except the bit about having to leave US waters for 15 days before another cruising permit can be issued. The OP has a green card and therefore is not required to leave the US waters for 15 days before another cruising permit is issued.

https://help.cbp.gov/app/answers/det...cHpSeVZGWW4%3D

The regulation pertaining to cruising permits makes a distinction between residents and non-residents.

Not true ... The foreign flagged vessel must leave the country, not the person.

[boatpoker]

Originally Posted by Bill Seal

Un-register or un-document? These two terms, like amps or amp hours, are tossed around aimlessly, making statements meaningless.
We bought our state-registerd (DMV) boat from a UK citizen who may have gotten caught up in this mess. Anyway, does Zeehag, or anybody with a Taiwan-built boat have any info about boats built overseas but first registerd in the US?

Excellent point about Registered vs. Documented.

Any non Nafta (now USMCA) built boat simply has to pay duty when imported to the US. Is that your question ?

[Montanan]

Originally Posted by Bill Seal

Un-register or un-document? These two terms, like amps or amp hours, are tossed around aimlessly, making statements meaningless.
We bought our state-registerd (DMV) boat from a UK citizen who may have gotten caught up in this mess. Anyway, does Zeehag, or anybody with a Taiwan-built boat have any info about boats built overseas but first registerd in the US?

A non-US citizen can NOT obtain a USCG documentation, hence the boat owned by the non-US citizen is "unregistered", therein the non-citizen needs to file a form 1300 to obtain a permit to proceed. However, the alternative being the boat could be flagged by a foreign country of the citizenship of the new non-US citizen owner, or it could be titled and registered with a State.
Documentation is done via the US Coast Guard and is in essence a federal / national titling of the vessel and Non-US citizens can not document their boat with the USCG.
A boat that has USCG documentation can not be titled by a State titling agency.
USCG documented boats remain subject to State registration just not State titling. A USCG documented boat will have its documented name and its hailing port displayed on the transom and will NOT have State registration numbers displayed. State registration of USCG documented vessels is for state taxation purposes, and not for titling purposes.

Title and registration are distinct subjects.

Foreign built boats are subject to federal import duties.

[boatpoker]

Originally Posted by Montanan

Foreign built boats are subject to federal import duties.

Unless they are built in NAFTA (USMCA) countries.