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.
Awesome company that worked as my brokerage on purchasing out FP catamaran. A special shoutout to Will Miller for walking us through the process
The process of selling our boat was made very smooth by the Multihull Company and Andrew Hodgdon in particular. Andrew helped us navigate the selling process including moving our boat from Grenada to Florida to execute the sale. We would recommend working with this company, and Andrew Hodgdon in particular, without hesitation.
Very smooth process. Chuck was great and very knowledgeable about the whole process. Im happy to have had TMC to take care of all the things i didnt know about.
Andy
We feel like we got tremendous service from Chuck. He is a total professional, knowledgeable, confident and a natural salesman. While I’m really sad to give up the boat, we are compl we are completely satisfied that Chuck sold it for us.
The Multihull Company-St Augustine, and in particular Andrew Hodgdon handled the sale of my Balance 442 Catamaran. Andrew was professional, transparent and a pleasure to do business with.
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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