Story by Andrew Holland / April 30, 2018
When a US Flagged Vessel first makes her arrival into US Waters she is required to make what is known as a formal entry and pay US Duty and Import Tax due on the boat. When planning your formal entry into the US to pay duty, here are the steps that you will want to follow.
First, you will need to contact US Customs and notify of them of your arrival and make them aware that you plan to make a formal entry into the US and pay Duty, or Import the vessel into the US . Once you notify Customs, you’ll then want to engage the services of a US Customs Agent who will purchase what is known as a TIB, or Temporary Import Bond, which covers your boat during the importation process.
The next step you will need to take is to place a value on the boat to determine the nominal figure at which the duty will be calculated. To do this, you will need to provide your customs agent with what is known as a “Pro-Forma Invoice”, value survey, or purchase agreement which provides the customs agent with an exact number to determine the tax due.
The Pro-Forma Invoice can be provided to your customs agent by a Licensed Yacht and Ship Broker or a Professional Surveyor.
Once a value has been placed on the vessel, the customs agent can calculate the exact cost of Duty that will be due and provide the owner of the boat with an invoice and instructions on how to make payment to complete the importation of the vessel.
Once the Duty has been paid, the owner of the vessel will receive US Customs Clearance Paper known as an “Entry Summary” or CBP Form 7501, which shows Duty has been paid on the vessel. This document should be saved and kept onboard the vessel for the life of her ownership to show that she can cruise freely in US Waters as a Duty Paid vessel.
US Duty Paid status is transferable between owners so long as the boat maintains a US Flag and registration between sales.
If a boat is US Flagged and Duty paid only to changes flags and leave the US after a sale, if the boat is later sold to a new owner who wishes to reflag her US and bring back into the US the boat would be obligated to pay the duty again upon her re-arrival to the US.
Your team delivered on every mark. You’ve got an amazing broker in Mark Wattrus and I’m confident you will have continued success moving forward together. He was available 24/7 whenever I had questions. We had a great initial visit on the boat and his marketing plan and photos were superb
I bought a yacht that I had never seen. I did this because I trusted my broker Andrew Holland. It was not an easy job for Andrew, as I am an experienced boat builder and owner of previous yachts, but work in West Africa. Imagine how hard it was to communicate what I was looking for. Andrew came up with exactly what I wanted. He dealt with time delays, all my questions at odd hours, and was there for the survey. He reported honestly and professionally. After buying the yacht, I arrived at the boat on a Sunday night, after dark, after travelling from West Africa to the Caribbean, and found it was better than expected. He never pulled punches and made me aware of shortfalls. I expected to spend my one month leave working on the boat, but actually spent less than one week, and was able to spend 3 weeks sailing – wonderful bonus.
Thank you Andrew for putting up with all my questions, all my worries and all my crazy out of the time zone concerns – you were totally professional, but also I know that if and when we meet up, it will be like a friend finally meeting. You are always welcome on Aseka.
Outstanding company with professional subject matter experts. If I were to buy or sell cruising sailboat, particularly a catamaran, Andrew would be my go to broker.
I have been sailing since I was a child and attended Massachusetts Maritime Academy. But when my wife and I began the process of purchasing an ocean cruising/racing catamaran, I realized that this is a world unto itself. Obviously, we needed to find someone knowledgeable to help us make an informed decision. More importantly, we needed someone honest and willing to put our interests before his or her own. I was lucky to work with Phil Berman at The Multihull Company. He repeatedly shunned the fast buck, choosing instead to work the long road to connect us with the “perfect boat”. I would be glad to recommend Phil and his company to anyone planning to purchase or sell a performance sailing machine.
Andrew Hodgdon was our broker when we bought our 2018 Lagoon 450F in Antigua in April 2922. He provided great service and was very attentive to our needs. We would highly recommend Andrew and the Multihull Company.
Successful relationships cannot exist without it. At The Multihull Company we base every relationship on a firm commitment to earning and retaining our client’s trust.
Advice of any kind is valuable only when grounded in hard-won expertise. It too, must be trustworthy. Trust and expertise define the heart and soul of The Multihull Company. We are a team of skilled professionals who thrive on providing expert, trustworthy advice and service to catamaran and trimaran sailors around the globe.
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