What does Boat not for Sale.....Mean
08-02-2012 | 09:18 AM
#4
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Joined: Oct 2004
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From: Port Huron, MI
I think it means, it was not registered in the U.S. (never paid sales tax) and can not by law be sold in the U.S.
Once at a boat show we tried to look at one and was told first we had to fill out some forms with US Customs before we could look at it ??? I just passed, and went to the next boat.
This was also the same boat/yacht show where I had to ask Where is Bikini MI (I am from Michigan and never heard of the city of Bikini? I sales person laughed and said that's Bikini, Marshal Islands (some country you register your yacht in so you don't have to pay sales tax). This is what I was told ???
Once at a boat show we tried to look at one and was told first we had to fill out some forms with US Customs before we could look at it ??? I just passed, and went to the next boat.
This was also the same boat/yacht show where I had to ask Where is Bikini MI (I am from Michigan and never heard of the city of Bikini? I sales person laughed and said that's Bikini, Marshal Islands (some country you register your yacht in so you don't have to pay sales tax). This is what I was told ???
08-02-2012 | 09:52 AM
#6
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Joined: Dec 2000
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From: Bell Canyon, CA
Google says:
This means the boat was never "imported" into the US. As soon as a boat is considered to be "for sale" (not "sold", mind you, just up for sale) in US waters it is subject to import duties (from ~1-3%, if I recall correctly; duty is based on where the boat was built). This statement allows the owners to get around the "for sale" trigger which would otherwise subject the boat to US import duties. I believe it also means that you would have to take the boat offshore and/or out US waters to effectuate the sale.
The issue of duty primarily comes up when a yacht is offered for sale. A foreign flagged vessel can cruise here under an annually renewable cruising permit. "Negotiating duty" isn't an option. If the seller wants to include the US market, then he pays the duty before he can offer it for sale. Brokers frequently recommend owners pay the duty, but it is sometimes difficult for an owner to lay out a chunk of money to increase the market potential when it does nothing to add to the value of the vessel as to equipment or appearance.
This means the boat was never "imported" into the US. As soon as a boat is considered to be "for sale" (not "sold", mind you, just up for sale) in US waters it is subject to import duties (from ~1-3%, if I recall correctly; duty is based on where the boat was built). This statement allows the owners to get around the "for sale" trigger which would otherwise subject the boat to US import duties. I believe it also means that you would have to take the boat offshore and/or out US waters to effectuate the sale.
The issue of duty primarily comes up when a yacht is offered for sale. A foreign flagged vessel can cruise here under an annually renewable cruising permit. "Negotiating duty" isn't an option. If the seller wants to include the US market, then he pays the duty before he can offer it for sale. Brokers frequently recommend owners pay the duty, but it is sometimes difficult for an owner to lay out a chunk of money to increase the market potential when it does nothing to add to the value of the vessel as to equipment or appearance.
08-02-2012 | 03:15 PM
#7
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Joined: Jun 2005
Posts: 11,901
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Google says:
This means the boat was never "imported" into the US. As soon as a boat is considered to be "for sale" (not "sold", mind you, just up for sale) in US waters it is subject to import duties (from ~1-3%, if I recall correctly; duty is based on where the boat was built). This statement allows the owners to get around the "for sale" trigger which would otherwise subject the boat to US import duties. I believe it also means that you would have to take the boat offshore and/or out US waters to effectuate the sale.
The issue of duty primarily comes up when a yacht is offered for sale. A foreign flagged vessel can cruise here under an annually renewable cruising permit. "Negotiating duty" isn't an option. If the seller wants to include the US market, then he pays the duty before he can offer it for sale. Brokers frequently recommend owners pay the duty, but it is sometimes difficult for an owner to lay out a chunk of money to increase the market potential when it does nothing to add to the value of the vessel as to equipment or appearance.
This means the boat was never "imported" into the US. As soon as a boat is considered to be "for sale" (not "sold", mind you, just up for sale) in US waters it is subject to import duties (from ~1-3%, if I recall correctly; duty is based on where the boat was built). This statement allows the owners to get around the "for sale" trigger which would otherwise subject the boat to US import duties. I believe it also means that you would have to take the boat offshore and/or out US waters to effectuate the sale.
The issue of duty primarily comes up when a yacht is offered for sale. A foreign flagged vessel can cruise here under an annually renewable cruising permit. "Negotiating duty" isn't an option. If the seller wants to include the US market, then he pays the duty before he can offer it for sale. Brokers frequently recommend owners pay the duty, but it is sometimes difficult for an owner to lay out a chunk of money to increase the market potential when it does nothing to add to the value of the vessel as to equipment or appearance.
In FL sales tax is limited to the first 300K of the purchase price so even on a 10MM yacht the sales tax is only 18K. They did this to try to curb the foreign flagging of vessels. SC/DE/NH have no sales tax or a reduced amount like Florida. The other major reason for foreign flags is to reduce the employer tax liabilities on the boat (the boat isn't operated under the US tax code, don't have to be concerned with min. wage issues/FICA/Soc Sec taxes etc). You can also crew it with international workers and not need a US greencard or work visa.
