Navigating US Customs with Confidence in Your Next Yacht Purchase

Buying a yacht should be one of the most exciting decisions a person makes — but for many U.S. buyers, the recent wave of import duties, fluctuating tariffs, and shifting customs requirements has added a layer of complexity that feels anything but relaxing. Whether you’re considering a foreign-built brokerage yacht, importing a new build from Europe or Asia, or planning to cruise internationally before bringing your vessel home, the rules surrounding duty, tariffs, and foreign flagging can dramatically affect your cost and your timeline.

That’s why having the right guidance matters. Erik Haaland, a senior broker with extensive experience in international yacht transactions, has helped countless buyers safely and strategically navigate this process. From structuring foreign-flag ownership and securing U.S. cruising licenses to verifying duty-paid status and coordinating with customs brokers, Erik knows the shortcuts, the pitfalls, and the most innovative paths forward. His goal is simple: make sure you enjoy the yacht you want without unexpected costs, delays, or regulatory surprises.

In this expanded guide, you’ll learn how U.S. import duty works, when tariffs apply, how foreign flagging can defer or minimize tax exposure, and what savvy buyers are doing right now to protect themselves. With the right plan — and the right advisor — purchasing a foreign-built yacht can be a smooth, strategic, and financially advantageous process.

Erik Haaland | Senior Yacht Broker
(410) 279-3027
About Erik Haaland

Do You Really Have to Pay?

The #1 question buyers ask — and the one with the most nuance

Nearly every conversation begins the same way:

“Do I have to pay taxes or duty on this yacht?”

The short answer: Yes — but not always today, and not always as much as you think.

Whether duty or tariffs apply depends on:

• Where the yacht was built

• What flag is it under

• Whether it has ever been formally imported into the U.S.

• Who the buyer is (U.S. resident vs. foreign)

• Where and how the vessel will be used

• Whether any recent foreign modifications occurred

Understanding these variables is critical to avoiding costly mistakes. And because CBP (Customs & Border Protection) enforces these rules very tightly, even honest misunderstandings can bring a deal to a halt.

A knowledgeable broker ensures that doesn't happen.

The Foreign Flag Advantage

How Americans legally operate foreign yachts in the U.S. without paying import duty

Here’s a surprising truth for many buyers:

Americans can legally own foreign-flagged yachts and cruise them in U.S. waters without paying import duty — as long as the vessel remains unimported and operates under a U.S. Cruising License.

Historically, this strategy was associated with megayachts (Cayman, BVI, Marshall Islands, Cayman Islands). But with today’s tariff environment, it has become extremely common for:

• 45–60 ft sailing catamarans

• 50–75 ft motoryachts

• Offshore new builds (Taiwan, Italy, Turkey)

How it works

1. You register the yacht under a foreign flag (LLC or offshore corporation).

2. You take delivery outside the U.S. (to avoid immediate importation).

3. You enter the U.S. under a Cruising License, allowing private use in U.S. waters for up to one year at a time.

4. You leave the U.S. briefly once per year to renew the permit (often a short trip to the Bahamas or Canada).

5. You delay import duty and tariffs indefinitely until you formally import the yacht — if ever.

This is entirely legal and widely used by knowledgeable buyers.

Why it works

A cruising license treats the yacht as a temporary visitor — not an imported commodity. You can cruise, anchor, haul out, obtain service, and thoroughly enjoy the vessel privately.

You cannot:

• Market it to U.S. buyers

• Sell it to a U.S. resident

• Engage in charter or commercial activity

As long as you comply with those restrictions, the benefits can be significant.

Brokerage Yachts: Duty Paid or Not?

Why “proof of duty” matters — and how to verify it correctly

For U.S.-based brokerage yachts, the rules are very different.

If a yacht has been in the U.S. for years under a U.S. flag, there’s a good chance duty was paid long ago. But without documentation, there is no guarantee. CBP’s position is simple:

If you cannot prove that the yacht was previously imported, duty may be reassessed.

The gold standard of proof is:

CBP Form 7501 — the Official Duty Receipt

Customs issues this document upon the yacht's entry into U.S. commerce. It shows:

• Entry number

• Declared value

• Duty amount paid

• Import date

• Port of entry

• Importer of record

Without it, CBP may treat the vessel as if it were unimported.

What if the 7501 is missing?

A skilled broker knows how to reconstruct the vessel’s history by reviewing:

• U.S. Coast Guard Abstract of Title

• Prior documentation numbers

• Import records

• Bill of Sale chains

• Ownership timelines

• Foreign registration or deletion certificates

• Old listing records and conveyance histories

• Customs entry anomalies

This due diligence protects the buyer — and ensures the seller avoids unpleasant surprises.

Why This Matters Now

The tariff environment has changed — and buyers must adapt

In recent years:

• 1.5% base duty remains unchanged

• But tariffs of 10–30%+ have been applied to specific countries

• Enforcement has increased

• FTZ (Foreign-Trade Zone) programs have expanded

• More U.S. buyers want flexibility for international cruising

• Foreign-built brokerage inventory has significantly increased

This means the difference between a well-structured purchase and a poorly structured one can be financially enormous.

Strategies That Work Today

How informed buyers avoid unnecessary duty and tariffs

Here are the most effective approaches in today’s market:

✓ Foreign Flag + Cruising License:  Best for buyers who cruise internationally or want to defer tariffs.

✓ Purchase & Delivery Offshore:  Avoids immediate U.S. importation.

✓ Free Trade Zone (FTZ) Entry:  At facilities like Lauderdale Marine Center (LMC), duty is deferred while you show, service, or sell a yacht.

✓ Deferred Importation:  Import only when needed — when tariffs are lower, when selling to a U.S. buyer, or when U.S. documentation is required.

✓ Documentation Reconstruction for Brokerage Yachts:  Ensures the vessel can be sold confidently without CBP intervention.

✓ Expert Customs Broker Involvement:  Essential for complex imports, foreign modifications, or unclear histories.

Navigating with Confidence

Buying a yacht should be joyful — not a stress test. Unfortunately, import duty, tariff uncertainty, and customs paperwork often catch buyers off guard.  That’s where professional experience matters.

Having handled dozens of international transactions, I know:

• How to structure foreign ownership correctly

• When a cruising license is appropriate

• When duty must be paid — and when it shouldn’t be

• How to avoid triggering tariffs unnecessarily

• How to verify or reconstruct duty-paid status

• Which customs brokers, attorneys, and registries to involve

• How to give you the smoothest, safest path forward

If you're considering a foreign-built yacht — new or brokerage — I can help you navigate every step and avoid the costly missteps that derail otherwise perfect deals.

Thinking about buying an imported yacht? Let’s talk.

I’ll explain what applies to your situation and help you make smart, informed decisions.

FAQ — Top Questions Buyers Ask

What is the current import duty on yachts?

The baseline is 1.5% of the vessel’s declared value.
Additional country-specific tariffs of 10% to 30% or more may apply.

Can Americans own foreign-flagged yachts?

Yes. Many do — often via offshore corporations such as BVI, Cayman, or Marshall Islands entities.
With a U.S. Cruising License, these yachts can legally cruise U.S. waters without paying duty, provided they are:

• Used for private pleasure only

• Not marketed or sold to U.S. residents

• Not engaged in charter

How do I determine if duty has been paid on a brokerage yacht?

Only CBP Form 7501 definitively proves duty was paid.
If it’s missing, a broker must conduct a thorough investigation into the import status.