Avoid the Tariff Trap—Still Get Your Dream Catamaran

Don’t let the uncertainty of the Tariffs delay your new boat purchase. How U.S. Citizens Can Buy a Foreign-Flagged Boat Without Paying Import Duties

On April 2, 2025 the US announced tariffs against imported goods from every United States trading partner, impacting the Global Markets and our Marine Industry. A 10%, minimum increase on all countries is effective April 5, 2025 and higher rates on selected countries are effective April 9, 2025. With tariffs on some imported boats ranging from 10% to 25%, U.S. citizens looking to purchase high-end foreign vessels are finding themselves caught in an expensive web of international trade policy.

However, there is a lesser-known legal workaround that savvy buyers have been using: purchasing a foreign-flagged boat and operating it in U.S. waters under a Cruising License (often referred to as a Cruising Permit). This method allows U.S. citizens to enjoy their dream boat without formally importing it into the country—thereby avoiding hefty import tariffs and duties.

What Is a Cruising License?

A Cruising License is a document issued by U.S. Customs and Border Protection (CBP) that allows a foreign-flagged pleasure vessel to cruise U.S. waters for up to one year without formally importing the vessel. Under this license, the boat is treated as a temporary visitor, much like a tourist on a visa. Because it’s not formally imported, the vessel is not subject to U.S. import duties.

How It Works

To utilize this strategy, a U.S. citizen must purchase a boat that is:

1. Foreign-flagged – registered under a foreign flag from a country with a reciprocal agreement.

2. Located outside the U.S. at time of purchase, or at least not formally imported.

Once purchased, the new owner (or their captain/agent) can apply for a Cruising License at the port of entry where the vessel arrives in U.S. waters. The process is relatively straightforward and typically involves presenting documentation such as proof of ownership, vessel registration, and evidence of the foreign flag.

The license is typically valid for up to one year and can be renewed by temporarily exiting and re-entering U.S. waters, though CBP enforcement and allowances may vary by port.

Can I charter my boat if it’s not imported in the US?

Yes, you can charter your boat even if it’s not US flagged. The easiest way to do so is to have your boat managed and chartered by our partner charter companies, VIYC and Symphony Yachts, with locations in the USVI, BVI & Bahamas.

You can also have your boat chartered while in US water under the condition that it is a bareboat charter and chartered with a proper agreement and legal structure. 

Key Considerations

While this method can save tens of thousands in import duties, it’s not without its limits. The vessel cannot be sold in the US while under a Cruising License. It can however be sold as long as the vessel is not in the US or in international waters at time of closing. If the owner later decides to formally import the vessel into the U.S., applicable tariffs and duties will be assessed based on the boat’s value at the time of importation.

Conclusion

For U.S. citizens who dream of owning a European-built yacht or other high-end foreign vessel, using a foreign flag and securing a Cruising License offers a smart and legal workaround to avoid import tariffs. By leveraging maritime law and understanding CBP policies, buyers can enjoy the luxury of international craftsmanship without being burdened by trade war consequences. 

Signature Catamarans team of seasoned marine professional can help you navigating Tariffs and structure your purchase so you don’t have to pay any import tariffs on your new boat. Always consult a marine attorney familiar with foreign registrations and U.S. Customs procedures to ensure full compliance.