Story by Andrew Holland / June 19, 2017
Written by Andrew Holland
As you are browsing through listings of potential catamarans to consider while you are online shopping, you may keep recognizing a familiar phrase for boats for sale that have you interested. Directly at the top of the listing you are looking at is a bolded “Not For Sale In US Waters To A US Resident”, but what does this really mean? As a US Citizen are you not able to buy the boat?
The language “Not For Sale In US Waters To A US Resident” must legally be added to listings for non-US Registered boats that are in US Waters under a cruising permit and placed for sale by the owner. As the current owner of the boat has not paid the US Import Duty on the boat, a sale cannot legally occur on the boat to a US Resident while she is in US Waters, and a broker cannot legally advertise the boat without making prominently clear that the boat is “Not For Sale In US Waters To A US Resident”.
Does this mean that a US Citizen cannot purchase the boat? No, not necessarily..
There are several ways a sale could occur on the boat you are looking at as a US Citizen. The first and preferred way would be for the seller of the boat to purchase a US Customs Entry Bond and pay the US Import Duty due on the boat. Exact rates of the US Import Duty would depend on where the boat was built and can range from .02% to 1.8% of the value of the boat.
The second way would method would be an “Offshore Closing” or a closing that occurs in the Bahamas or somewhere else outside of US Territory that is at least 12 nautical miles off the coast. An “Offshore Closing” transaction does complicate matters slightly as potential buyers for boats that have not been US Duty paid cannot board or view the boat while she is US Waters, so the transaction details must follow a strict protocol that abides by the laws of the United States. This will take the coordination and expertise of your broker for a transaction to be completed properly.
Many foreign flagged boats decide to delay paying the US duty on the boat while she is being marketed for sale in US Waters as to potentially sell the boat to another non-US citizen who can purchase the boat in US Waters without the owner having to pay the US duty prior to the sale.
Now, the Florida Yacht Brokers Association is proposing a change to the US law to allow owners of used foreign flagged boats in US waters with a valid cruising license to offer them for sale to US residents while in US waters, without paying duty, but to date this change has not been made. If and when these changes are made, this article will be updated to reflect the updated laws.
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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 people—clients 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.
We worked with him for several months, and from start to finish, he was exceptional. Andrew is incredibly knowledgeable and truly an expert when it comes to performance catamarans. He took the time to understand exactly what we were looking for, was always responsive and organized, and never made us feel pressured throughout the process.
Andrew went above and beyond to arrange showings for us in multiple states and even traveled to another state to be there with us for the sea trial. His expertise and guidance gave us tremendous confidence as we evaluated such a significant purchase.
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 didn’t 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 couldn’t recommend Andrew Hodgdon more highly. If you’re looking for a yacht broker—especially if you’re considering a performance catamaran—we 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. 😎
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.
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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 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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