What does it mean not for sale in U.S. Waters to A US resident ? The International Yacht Brokers Association has urged congress to alter a 109-year-old law that prevents sales of foreign-flagged yachts to U.S. citizens while the boats are in U.S. waters.
The bill, now introduced as H.R. 2369, seeks to change a law from 1908, which requires foreign-flagged boats to pay an import fee prior to being offered for sale to US residents while in U.S. waters. The bill would not remove the tax paid on the boat, but would defer payment of it until after the boat is sold.
IYBA executive director Cindy Sailor, with the support of U.S. Rep. Lois Frankel, D-Fla reintroduced the 2015 bill to the new Congress recently in an effort to boost the yachting industry and encourage more sales in U.S. waters.
“We’re not asking to get any sort of forgiveness for paying the duty. We are requesting that the time of collection of the duty be changed to when the yacht is sold, rather than when it goes on the market,” Sailor said.
As it stands now, the tax is paid on the estimated value of the boat rather than the actual selling price of the boat.
“It’s counterintuitive to pay the import tax on the value of a boat before you know what the actual selling price is going to be.” Sailor said. “A 1.5 percent tax is sizable and most yacht owners don’t want to pay duty just to put the boat on the market with the hopes of selling it to a US buyer.”
That means lost sales in the United States, which the IYBA says translates to lost jobs and revenue.
IYBA’s 1300 members, requests legislative support to remove current restrictions in that forbids offering used foreign flagged boats for sale to U.S. residents while in U.S. waters. Florida’s marine industry a $17.2 billion market sector, supports 202,000 jobs.
This article was prepared from the below sources;
International Yacht Brokers Association IYBA : https://iyba.yachts/news.cfm
Trade Today http://www.tradeonlytoday.com/2017/05/iyba-pushes-end-to-foreign-flagged-yacht-sales-restrictions/
Multihull Company : http://www.multihullcompany.com/Article/What_Does_Not_For_Sale_in_US_Waters_to_a_US_Resident_Mean%3F