U.S. Rep. Lois Frankel, D-Fla., has introduced legislation that would allow U.S. citizens to purchase foreign-flagged yachts while in U.S. waters without paying a costly import duty prior to the sale. The bill – H.R. 4065 – would amend the Tariff Act of 1930 and allow U.S. residents to defer paying duty on foreign-flagged yachts until the point of purchase. It has been referred to the House Committee on Ways and Means for review.
“We thank Congresswoman Frankel for submitting this bill in recognition of the efforts of FYBA and scores of other marine industry businesses and organizations who have worked diligently to repeal this outdated law,” said Cindy Sailor, executive director of the Florida Yacht Brokers Association (FYBA), the world’s largest organization of yacht and charter brokers. “Passage of this bill will help to generate U.S. jobs and tax revenue; something that Congresswoman Frankel recognizes. We urge all members of the yacht brokerage and boating communities, including FYBA members, to contact their Congressional representatives and urge them to support the measure.”
Congresswoman Frankel announced her intention to submit the legislation during a November 10 press event hosted by FYBA at the Fort Lauderdale International Boat Show.
Also known as “Deferred Importation”, the new legislation would repeal the 107-year-old law that says foreign-flagged boats that are in the U.S. under cruising license cannot be offered for sale to U.S. citizens while in U.S. waters. It simply would defer payment of the import duty until the boat is sold – just as other nations require of U.S.-flagged vessels sold while in their waters.
Studies show that implementation of Deferred Importation would generate thousands of industry-related jobs and encourage $2.46 billion in additional U.S. recreational marine sales and economic activity.
“We are extremely grateful to Congresswoman Frankel for submitting H.R. 4065 in support of our cause,” said Jeff Erdmann, chairman of FYBA’s Legislative Affairs Committee. “We are counting on the bill moving quickly out of committee and before the full House for a vote in the very near future.”