# import duty or tax when importing a boat



## Myblueheaven (Sep 7, 2003)

Any one know how to bring a boat to the US after purchasing in a foreign country( not USA flagged or registered)? What are the duties or taxes if any? Loop holes? Exceptions? Are there any US saftey requirements the boat must meet in order to register her in the US?

Example: If I buy a boat from a country that wires thier boats differently than what a US spec boat, is it considered not registerable . Kinda like bringing in a gray-market car that might not meet the US saftey standards. Is there such a rule of standards for imported boats?


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## GordMay (Dec 19, 2002)

Yes, you have to pay U.S. import duty. and no there are no compulsory "standards".
I imported a Canadian built C&C29, valued at under $30K, for about $120 - duty & customs broker''s fees included.
Spent months trying to get the information to "do-it-myself", all in vain. Finally went to a broker - accomplished in 24 hrs.
Regards,
Gord


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## GordMay (Dec 19, 2002)

Yes, you have to pay U.S. import duty. and no there are no compulsory "standards".
I imported a Canadian built C&C29, valued at under $30K, for about $120 - duty & customs broker''s fees included.
Spent months trying to get the information to "do-it-myself", all in vain. Finally went to a customs broker - accomplished in 24 hrs.
Regards,
Gord


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## doubleplay (Nov 9, 2001)

There are no standarts to import a boat to the US and the duty is %1.5.
It is easier than people think to import a boat and you save a ton if you buy a foreign built boat overseas instead of buying it here from a dealer.
Good Luck


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## TSOJOURNER (Dec 16, 1999)

Doubleplay,

Are you saying buy a NEW boat overseas to save money or a used boat?

Chas


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## TSOJOURNER (Dec 16, 1999)

I would like to jump in on this to mention that if you ever intend to use your boat as a small business, a foreign bought boat would present a problem. I''m not sure what the current rules are.


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## Myblueheaven (Sep 7, 2003)

To clarify: I was thinking of buying a "Used" foreign boat from out side the USA and bring it home to California. Though, I don''t know what the difference would be if I were to buy a Brand New foreign flagged vessel to bring back?


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## doubleplay (Nov 9, 2001)

I would like to clarify this issue as someone who bought a boat (new) overseas and went trough the paperwork.
Dealing with used boats are the same altough you might want to buy her from a dealer who can help with the paperwork.
First think you have to do after agreeing upon a price get the bill of sale and factory measurement certificate (if they are in foreign language,translate them to English and get the approval of the nearest US Consulate for authentication)
Apply to US Coast Guard Documentation center and get a certificate of documentation which gives you ownership and right to sail the boat under US flag.(fees total $150)
Sail or ship the boat to US and arrange a custom broker for a nominal fee to help you with the customs paperwork and %1.5 tax from the sales price.
In case you sail for couple of years before you bring the boat back you can even pay less tax because of the depreciation of the boats value.
Any foreign built new boat if you buy and commission close to the factory or at the country they are built your savings can be between %20-30.
If you buy a used boat savings wont be that much specially in Europe because owners usually try to factor in the VAT in their asking prices.New boats sold to foreigners are free of any VAt


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## doubleplay (Nov 9, 2001)

I hope that helps.
Respectfully,
Al


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## Myblueheaven (Sep 7, 2003)

That''s interesting to know. The VAT tax on European boats are often included in the asking price? And selling to , say me... an America, for the purpose of taking it home means I do not have to pay the tax or more importantly the seller DOESN''T have to pay the tax? That means a great deal for a buyer and seller if that is true. Anyone know what the VAT tax amounts to? How is it figured so I can subtract that from the asking prices when looking over ADs?

Lastly, I got the duty tax down, thanks for all the contributors. But how about our countries(USA) normal property tax. Are boats taxed yearly based on thier value like homes/real estate? How much? Or if not, is it because they are for pleasure and not a home? If you live on your boat does the tax status change? 

Thanks


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## TSOJOURNER (Dec 16, 1999)

On this last point I have a similar question. Many years ago, I was told that interest on a boat mortgage is tax deductible if the boat is used as, or considered to be, a second home. And I think they were depreciable in the same way as a land home.

Is this true?

Chas


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## TSOJOURNER (Dec 16, 1999)

Yes--with a few provisions...a bathroom (head) kitchen (galley) and sleeping quarters. Porta-potties don''t qualify, and my accountant said the sleeping quarters had to be "separate". I didn''t deduct the interest on our daysailer, but on the past two boats I have with no problems from the IRS and CPA approval


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## TSOJOURNER (Dec 16, 1999)

One more point though... why are we asking these very important legal questions from message boards instead of calling the IRS, an accountant or the proper legal authorities about imports. I would hate for someone to make a decision that would have grave financial/legal ramifications based on a bulletin board. These are fine for opinions on how someone likes a boat, a piece of equiptment etc...


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## TSOJOURNER (Dec 16, 1999)

Yes, I agree. We should not be asking specific, technical and legal questions to non-specialists.

Which reminds me-- I am thinking of buying a boat in a state with a sales tax nearly twice the sales tax of my home state. Can I buy the boat without paying sales tax in the other state and pay my home state''s sales tax when I register it here?

And if the boat is nationally registered or foreign registered, would this change the amount of tax I would have to pay?

Chas


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## sailingfool (Apr 17, 2000)

... But how about our countries(USA) normal property tax. Are boats taxed yearly based on thier value like homes/real estate? How much? Or if not, is it because they are for pleasure and not a home? If you live on your boat does the tax status change?...

There are no federal boat taxes, only thosee of the state in which you live and/or keep the boat. These sales, property or use taxes vary widely by state. In general you can expect that the state which would want one or more of these taxes from you, will find you and your boat and collect them, with fines and interest if tey were not paid on time.
(I had been living in Minnesota for three years when Massachusetts started dunning me for sales taxes that they felt I as a Mass. resident at the time, should have paid on a boat that I bought in Maine. I eventually gave in and paid the tax...)

good luck.


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## sailingfool (Apr 17, 2000)

...Which reminds me-- I am thinking of buying a boat in a state with a sales tax nearly twice the sales tax of my home state. Can I buy the boat without paying sales tax in the other state and pay my home state''s sales tax when I register it here?...

You should be able to do that. If you are buying the boat from a dealer and the state requires the dealer to collect sales tax, see if they will "deliver" it out of state and not collect the sales tax. Often what is called a "sales" tax is actually a "use" tax - the state wants the tax paind on propoerty such as boats. being used in the state, regardless of where the sale of the property occurred. In Massachusetts, car and boat taxes are ''use" taxes.


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## xfroggy (Jul 2, 2011)

*importing a boat from Brazil to the US, but then back out again?*

Hello, Thanks to everyone about information on the process and duty for importing a foreign boat to the US. I've got a slightly more complex question: I'm a Brazilian resident but US citizen and I'm thinking of buying a boat in Brazil to bring to the US. The 1.5% duty there is straightforward. However, I'm planning to spend 6 months in the US and 6 months in Brazil for the next few years. Importing a boat to Brazil has a ridiculous duty (103% of the custom's appraised value). Both countries also make it difficult to get around if you are a 'foreign' boat, so it makes sense to import it to the US at 1.5% duty even if I'll be there for just 6 months out of each year. But what about when I go back to Brazil? Could I just not show the US importation documents and go back as if it were still a Brazilian boat? Or would I have to re-import to Brazil? Any advice is welcomed.

Thanks


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## mitiempo (Sep 19, 2008)

I believe your boat if registered in the US and you being a US citizen would be a visiting cruiser in Brazil. Just as when any US based cruiser visits Brazil. Different countries have different time limits and I am not sure what that is in Brazil.


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## xfroggy (Jul 2, 2011)

*more on Brazil to US to Brazil*

Thanks Brian for your answer. Yes, I figured if it is imported to the US and becomes a US registered boat, officially, that would be the case if I return to Brazil - it would be treated as a foreign boat. My question is more about how the actual process and paperwork is for importing works. Since the boat is originally from Brazil, and then I will import it to the US, does the US keep the original paperwork or something? If not, couldn't I just go back to using the original Brazilian registration when I go back to Brazil and just not show them the US registration?

Thanks again for any advice on this.


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## mitiempo (Sep 19, 2008)

The original paperwork will be your bill of sale. I don't think the US would keep that. 

I don't think you could flip flop between two countries registration - at least not legally.


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## Adequate (Jan 6, 2014)

Has anyone bought a boat in Europe and sailed it back to the USA? I am trying to find out about paying the duty "tax" and any other fees that I will be facing.


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## sulli (Mar 9, 2013)

Myblueheaven said:


> That''s interesting to know. The VAT tax on European boats are often included in the asking price? And selling to , say me... an America, for the purpose of taking it home means I do not have to pay the tax or more importantly the seller DOESN''T have to pay the tax? That means a great deal for a buyer and seller if that is true. Anyone know what the VAT tax amounts to? How is it figured so I can subtract that from the asking prices when looking over ADs?
> 
> Lastly, I got the duty tax down, thanks for all the contributors. But how about our countries(USA) normal property tax. Are boats taxed yearly based on thier value like homes/real estate? How much? Or if not, is it because they are for pleasure and not a home? If you live on your boat does the tax status change?
> 
> Thanks


Regarding VAT (value added tax) in Sweden a tour bus guide explained VAT for us its 100%. Example $20k car +$20k vat +$40k car and it is added to the price when sold. I am sure he was no financier but he lives there and should know. 
Completely off subject we asked him about some small cabins 10-12 beside the road he explained they were for anyone's use only had to replace what was used (they are fully stocked. Just bring your own food and blankets. Cant imagine anything like this in the US it be would be broken,robbed,covered in graffiti then burned down


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## christian.hess (Sep 18, 2013)

im interested too....this thread sounds much more simple than some of the other advice flowing around...

if I take my boat back to the states maybe in 2015 for a while to work a bit or whatever or cruise...I was wanting to know if it would simply be easier to register in the states again(it was californian, then south african and now salvadorean registered)

any new input would be great(I realize the thread is old too)

thanks


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## MikeGuyver (Dec 13, 2008)

register in Oregon, no sales tax . I think it was something like $180.00 for 2 year tags.


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## Caribbean Dreams Cancun (Jul 28, 2017)

doubleplay said:


> I would like to clarify this issue as someone who bought a boat (new) overseas and went trough the paperwork.
> Dealing with used boats are the same altough you might want to buy her from a dealer who can help with the paperwork.
> First think you have to do after agreeing upon a price get the bill of sale and factory measurement certificate (if they are in foreign language,translate them to English and get the approval of the nearest US Consulate for authentication)
> Apply to US Coast Guard Documentation center and get a certificate of documentation which gives you ownership and right to sail the boat under US flag.(fees total $150)
> ...


Hello, I do not know if you are still around but I wanted to say thank you for your information. I found it very interesting with regards to my situation. My plan, over the next several months is to buy a new 53 foot Ocean Voyager catamaran from France. Have it shipped to Miami and then sail it onto Cancun where it will be used as a charter. I am trying to figure out the best (and the cheapest) way to do this. Thank you for any knowledge you may have. Russ


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