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Flag state change?

Discussion in 'General Yachting Discussion' started by reelchaos, Jan 18, 2017.

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  1. reelchaos, Jan 18, 2017
    #1
    reelchaos

    reelchaos New Member

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    Hi guys, We have been flagged with Cayman Islands for a few years and are thinking of changing to a Jamaican Flag and was wondering if anyone new of any significant pros or cons in doing this? In my research it seems the Jamaican flag is much more lenient than some others. We are private not commercial and looking to reduce the costly and painful annual surveys. Your opinions are greatly appreciated. Thanks
  2. Marmot, Jan 18, 2017
    #2
    Marmot

    Marmot Senior Member

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    If the only difference is the cost of survey then it may well be worth it. It might be a good idea to get professional advice on any impact (if any) on taxation and class (if classed).
  3. olderboater, Jan 18, 2017
    #3
    olderboater

    olderboater Senior Member

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    Am I correct in assuming that the only reason not to flag US is that US Duty has never been paid on it and would be assessed?

    I'd talk to a good documentation agent familiar with all the flags and they should be able to give you the pros and cons and either other places to consider.
  4. reelchaos, Jan 18, 2017
    #4
    reelchaos

    reelchaos New Member

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    Thanks for your replies. The owner is not american and no duty has ever been paid on it.
  5. Capt J, Jan 18, 2017
    #5
    Capt J

    Capt J Senior Member

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    You don't mention the size, but it's probably larger. I don't think a Non-US citizen could set up an LLC in the U.S. One boat I ran was under a Florida LLC and we paid $18,000 sales tax (one time).

    I don't know the pro's nor con's of Switching flag states, perhaps talk to a documentation person such as Jan Saxton in Fort Lauderdale and see what it means legally and costs to switch it, then find out the rules/regs of Jamaican flagged and see if it suits your situation. However, this being said, you'd also need to talk to your insurance company as flag state may effect rates, and they will require an insurance survey, but maybe only every 3 years instead of annually, etc.

    ALSO, make sure if you switch to Jamiacan flagged, that the U.S. will issue you a cruising permit if the vessel does go to the U.S., If not it's a major hassle if the vessel is going to spend any time in the U.S.
  6. K1W1, Jan 19, 2017
    #6
    K1W1

    K1W1 Senior Member

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    Jamaica is on the IMO White List so in theory there should not be any restriction on where a vessel with that flag can go. Having one on the stern may however make the vessel subject to more Port State Controls which will depend in a large part upon how ,many detentions of Jamacian Flag vessels have taken place in the jurisdiction you are cruising in.
  7. olderboater, Jan 19, 2017
    #7
    olderboater

    olderboater Senior Member

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    Following up your comment, I've done a lot of commercial shipping to and from Jamaica. It is a major point of drug transport and there is a high level of scrutiny and extra checking. You may have brought up something worthy of consideration.
  8. Ken Bracewell, Jan 19, 2017
    #8
    Ken Bracewell

    Ken Bracewell Senior Member

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    We changed my last boat (RENA) to a Jamaica flag, and were very happy. No problems with port state inspections, and Flag state was easy to deal with.
  9. olderboater, Jan 19, 2017
    #9
    olderboater

    olderboater Senior Member

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    Nice to hear. I didn't know if there was any rollover impact to pleasure boats or not. I'd think even if there was it would only be boats coming from Jamaica, not based on flag.
  10. Danvilletim, Jan 19, 2017
    #10
    Danvilletim

    Danvilletim Senior Member

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    .Here is a post by USCG of problem flag states.

    "The following Flag Administrations were identified as having a detention ratio higher than the overall average and were associated with more than one detention in the previous three years. The detention ratios are based on data from the previous three years (2013, 2014 and 2015). The 3-year overall average for this year's evaluation risen from last year 1.31% to 1.67%."

    https://www.uscg.mil/hq/cgcvc/cvc2/psc/safety/flag_list.asp
  11. Max-Tropp, Jun 28, 2017
    #11
    Max-Tropp

    Max-Tropp New Member

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    Hi guys/girls
    my Yacht is registered under US flag and i am interested in changing to Dutch.
    can anyone direct me to how i achieve this?
    thanks
    Max
  12. Fishtigua, Jun 28, 2017
    #12
    Fishtigua

    Fishtigua Senior Member

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    We have a meeting this Friday regarding how Guernsey flagged vessels can be made an easier option. Years ago, many/most yachts in the Med where under Guernsey flags but this has died off quite a bit due to strict rules from the MCA.

    I'll let you know how this goes when I get more info....