Foreign Trade Zones, also referred to as FTZs, are currently found in over 200 locations across the US, with a small number tailored towards the marine industry and yacht sales.
Prior to the creation of US marine FTZs in 2017, foreign-flagged yachts for sale were not available for US Owners to buy, or even view, while they were situated in US waters.
The image of a prospective US buyer (the rules are different for non-US buyers) being helicoptered out to a larger yacht sat 14 miles offshore to avoid threat of taxation or even vessel impoundment might sound extreme but that was the reality. For smaller tax-unpaid yachts there really was no option to be viewed in US waters.
However, waters inside an FTZ are not classed as US, allowing US buyers to view and buy new yachts for sale without the threat of unpaid duties hanging over an negotiation. Additionally, these same FTZs can allow works and services to be carried out tax-free and, in a very few cases, long-term berthing for tax-unpaid yachts.
It is important to note that not all FTZs offer the same services and protection, but, working alongside US Customs and Immigration, marine FTZs certainly offer many benefits for yacht Owners and buyers. Here are some of the prime FTZ locations in the US where you can get hold of duty-free yachts for sale.
Lauderdale Marine Center (LMC)
- View and buy foreign-flagged yachts
- Duties refunded on models up to three years old
- Long term tax-free mooring
- Tax-free repairs and services
The first-ever US marine-orientated FTZ, the Lauderdale Marine Center (LMC) opened up on 7 June 2017 and has since become a fundamental tool for yacht brokerage and of course the transactions of foreign-flagged yachts for sale.
Situated in the iconic State of Florida, the LMC offers a unique opportunity to view and purchase brand new superyachts for sale, without the hustle and bustle of a major yacht show.
Established in a movement to 'aid the brokerage community in the area', LMC actively allows foreign-flagged yachts to be displayed, viewed and purchased within the FTZ, including the execution of sea trials within the set boundaries.
Utilizing the LMC as an FTZ makes way for certain allowances which makes the location all the more appealing when entering the process to buy a yacht. A prime example being the elimination of the standard 1.5 per cent import duty required for new build yachts.
In addition to the attractive perk for new models, new builds from up to three years previous can also file for a refund on previously paid duties within the FTZ.
Maintenance and repairs can also cash in on the lack of import duties, with essential parts also falling under the classification to avoid taxes while in the FTZ.
With yachts able to come and go as required and no maximum stay boundary, the LMC is a key player for US FTZs.
Port Of Palm Beach
Covering almost 3,400 square miles of South Floridian coastline, the Port Of Palm Beach is dubbed as the gateway to the Bahamas, with Grand Bahama and the tip of the Abacos Islands just a stone throw away.
Comprising of six different sites, the Port of Palm Beach FTZ, also known as FT135, hosts two dedicated marine FTZs in the form of the Rybovich superyacht marina and the Berth One Marina.
Shielded from the traditional duties of US Customs, users of the Palm Beach marine FTZs have the ability to defer, reduce or eliminate taxes on foreign products within the preset boundaries.
Berth One Marina
- Helicopter clearance
- Duty refunds on models up to three years old
- Long-term mooring
Situated a mere 10 minutes from the Palm Beach International Airport, Berth One Marina is at the northern tip of Palm Beach.
Highly accessible thanks to the proximity to the airport, clearance is also given for helicopters to land on both land and yacht-based helipads, including nearby Peanut Island. Plus there's freedom for yachts to come and go as they need from the marine FTZ.
Hosting a premium megayacht facility, Berth One can host visiting yachts up to 137m (450ft) and can also offer services to file for a refund on previously paid duties on builds up to three years old.
Rybovich Superyacht Marina
- Long-term mooring
- View and buy duty-free yachts
- Tax-free maintenance and services
Advertising 'first-class yacht facilities', Rybovich of West Palm Beach became an activated marine FTZ late in 2018 and has since seen many successful sales within the FTZ.
Offering no time limit on the duration of stays within the FTZ, Rybovich has essentially 'become a continual boat show'. Boasting 85 wet slips for superyachts up to 100m (328ft).
The Rybovich marina is a particularly useful asset for those wanting to attend the local Palm Beach International Boat Show.
Moorings within the FTZ form an escape from the 'boat show bonds' associated with showcasing at the yachting event itself. Making the facility all the more appealing for buyers looking to purchase a foreign-flagged yacht for sale, without the busy crowds and additional fees of a show environment.
Safe Harbor Newport Shipyard
- Long-term tax-free mooring
- View and buy foreign-flagged yachts
- Tax-free maintenance and services
Becoming the first US marine FTZ outside of Florida in December 2020, Safe Harbor in Newport places Rhode Island on the map for buying duty-free yachts.
Similar to Fort Lauderdale and Palm Beach, the shipyard offers an open stay for yachts making them accessible throughout the year for viewings and consequent sales.
With 3,500 linear feet of dock space for superyachts up to 106.7m (350ft), the Safe Harbor FTZ has the capability to import foreign-flagged yachts without the application for usual import taxes on foreign parts.
Offering an alternative location close to New York and Boston, Safe Harbor is an ideal base for sightseeing as well as a prime location to finalize deals on both new and used yachts for sale.
Other useful FTZs to visit
Cape Charles Yachting Center (CCYC)
Changing hands in 2019, the Cape Charles Yachting Center (CCYC) in Virginia turned its attention to attracting superyachts to make the most of the southeastern location.
Situated within the boundaries of an FTZ, many standard duties are eliminated at the marina and extra facilities have been introduced to accommodate larger yachts such as additional floating docks.
Hosting status as an advantageous point for servicing engines and repairs, CCYC is an ideal stop-off while on route to southern States including Florida.
Universal Marine Center (UMC)
Another location in the popular vicinity of Fort Lauderdale, the Universal Marine Center, or UMC, joined the Floridian FTZ in 2020 to showcase yachts for sale, with two designated slips.
Differing to the LMC FTZ regulations, yachts within the UMC vicinity can only be shown and viewed but not sold.
If you are currently on the market to buy a yacht, the Universal Marine Center is suitable for viewing though transactions for buying a yacht will need to be carried out elsewhere.
