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, youโll 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 โPro-Forma Invoiceโ, 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 โEntry Summaryโ 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.
We had an outstanding experience working with Andrew Hodgdon to find our dream boat, an Outremer 52.
We were actually referred to him by several different peopleโclients who had been very happy working with him, as well as boat owners who were planning to use him to sell their own boats. After working with Andrew ourselves, we completely understand why he came so highly recommended.
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The entire process could have been overwhelming, but he made it remarkably smooth. He was on top of every detail and made the paperwork and closing process easy, working seamlessly with his team at The Multihull Company.
What impressed us most was that he genuinely had our best interests in mind. And his support didnโt end when the sale was completed. He has continued to stay in touch and has made it clear that he is still available to help us if we ever need him. That kind of follow-through is rare and speaks volumes about the kind of broker he is.
Buying an Outremer 52 was a huge decision and a major investment, and having someone with his knowledge, experience, responsiveness, and integrity made the entire experience so much easier and more enjoyable.
We couldnโt recommend Andrew Hodgdon more highly. If youโre looking for a yacht brokerโespecially if youโre considering a performance catamaranโwe would choose him again without hesitation. The fact that so many people recommended him to us was the reason we called him, and after working with him, we would be one of those people recommending him to others.
I highly recommend Andrew Hodgdon. He served as our buyers broker. He is responsive, highly knowledgeable and very experienced. He is also an excellent guide and counselor before, during and after the boat purchase process. If you are looking for a good-sailing cat, he seems to collect most of the available boats on the better-sailing side of the market. Top marks.
Andrew did an excellent job getting me started on my new adventures. Worked with my conflicting schedule. Is very knowledgeable in the catamaran industry. ๐
I recently sold my Lagoon 450 with the Multihull Team. I would highly recommend their services. The professionalism and personal treatment I received was greatly appreciated.
Great Service, Great People
Helped me through the process.
I would go through them again in a future purchase.
Successful relationships cannot exist without it. At The Multihull Company we base every relationship on a firm commitment to earning and retaining our clientโs 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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