Here are some notes that I took while talking to an Admiralty lawyer regarding where to flag a boat which is initially destined to the USA and then the Med/South Pacific. Hopefully this will be useful to someone else. I’ll update it once we’ve actually completed this.
- We should arrange for an RBS insurance policy for the delivery leg.
- This policy should be a minimum of 3 months, as that’s the amount earned upon execution
This will be a one way policy.
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Get it from Singeon Green, Singeon@rbs.co.za, +27 21 443 4400, +27 83 4596989
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We should have a new policy in place that will take over from RBS once we get to Grenada
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US Insurance Contact: Hugo Hanham-Gross, +1 843-276-1608, hugo@hanhaminsurance.com
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The above policy will most likely be with Concept
- LMIS also provides insurance, but more $
- About the same, but also gives you hurricane coverage if needed
- LMIS also provides insurance, but more $
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We will need 3 people with trans-Atlantic experience aboard
- This is if you use Concept for the delivery
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We very much want the sale to complete before 9/1 so that we can get our export papers before AGOA trade agreement expires
- Have 90 days after getting export papers to leave ZA
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JP Reynolds will be the importer.
- Estimated cost ~$1K
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You will form a US based corporation (where?) for us and will file the USCG documentation paperwork.
- Cost $1500+1500
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Once we head to the Canal, you will form an IBC (International Business Corporation) for us, and we will re-flag the boat to some non-US country
Flagging: There are 4 ways to do this: US or Foreign flagged with the boat owned by US Corp or IBC
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US Flag/US Corp
- Can get insurance in US, Caribbean, and Med
- Can’t get insurance in South Pacific
- about $800 yearly fees
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Foreign Flagged/US Corp
- Duty free in the US
- NO IRS Tax
- insurance unlikely available in South Pacific
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Foreign Flagged/IBC
- Set up cost between $12-14k
- Annual Fees are between $2-4k
- IRS Year Tax:
- $4-5K first year
- $2-3K next year
- Can repatriate boat into US for about $1K
Things we need to be aware of as a US Registered Vessel:
- As a MA resident, we never want to bring the boat into MA, as we could be subject to 6.25% personal property tax if caught
- Must watch out for staying past 60 consecutive days in FL
- Can go to the Bahamas or Georgia to reset days