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My apologies if this hasn't been asked before-- the search function didn't seem to yield anything.

I'm looking at buying a yacht which is registered overseas (Germany), and has already had import taxes, duties, paid.

AS far as I can see, there's little point in registering it in NZ, as I would be subject to cat 1 requirements should I decide to take it overseas, whereas an overseas registered boat wouldn't be?

are there any downsides to not registering the boat in NZ? Being "entitled to Protection of the Commonwealth/British" doesn't mean much to me, or surely I could get the same by registering it in Canada where I'm from.

Cheers,

Jordan

 

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1 hour ago, jorxster said:

My apologies if this hasn't been asked before-- the search function didn't seem to yield anything.

I'm looking at buying a yacht which is registered overseas (Germany), and has already had import taxes, duties, paid.

AS far as I can see, there's little point in registering it in NZ, as I would be subject to cat 1 requirements should I decide to take it overseas, whereas an overseas registered boat wouldn't be?

are there any downsides to not registering the boat in NZ? Being "entitled to Protection of the Commonwealth/British" doesn't mean much to me, or surely I could get the same by registering it in Canada where I'm from.

Cheers,

Jordan

 

So the boat is already in NZ and has had all import duties paid?

There are downsides but as always it depends on your circumstances/appetite for risk. Eg, right now a foreign flagged vessel cannot enter NZ without jumping through lots of hoops and even then approval will likely not be granted.

That's possibly one of the entitlements that maybe "doesn't mean much too you"... 

We don't live in the same world we lived in 2 years ago.   Citizenship and sovereignty have actually come to really mean something since Covid began. 

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Yeah import duties and taxes are paid.

The current owner entered NZ from Fiji in 2021 and qualified because he was an NZ citizen (like myself, dual NZ/Canadian) though his wife, a German national, was not permitted to (and had to fly)

So despite being German registered, it was able to pass through our current Maritime borders

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48 minutes ago, ToyTec said:

Yes all NZ citizens and residents automatically get a maritime border exemption on a foreign yacht. Does make one wonder the incentive to “do the right thing”

 

1 hour ago, Black Panther said:

I don't think the country of registration is an issue returning to nz, as long as everyone on board has a nz passport 

 

Current border restrictions apply to foreign flagged vessels. 

Yes, you can get in, but you have to jump through a whole lot of hoops. 

 

Quote

Exemptions for foreign vessels to enter NZ

Foreign vessels are not permitted to arrive in NZ unless they have an exemption from the Ministry of Health.

Vessels may be exempt if there is a compelling need for the vessel to arrive in NZ for:

  • reprovisioning and/or refuelling OR
  • the purpose of delivering the vessel to a business which includes for the purpose of repairing or refitting the vessel AND 
  • the Director-General of Health has granted the vessel permission to arrive in NZ.

Exemptions should be sought before the vessel departs for NZ and must be obtained before the vessel arrives in NZ.

Ideally vessels will not begin their travel to NZ before receiving a decision, so as to avoid the need to change plans mid-journey if they are declined. Applications take 15-20 days to process.

So right now, even if all crew are "New Zealanders" on a foreign flagged ship, you have to jump through hoops and get approval for the vessel. 

NB: New Zealander is defined as a citizen or anyone with a residency visa. It excludes Australians who are not normally resident in NZ. 

Where as NZ fagged vessels... 

Quote

NZ-registered vessels and New Zealand citizens

NZ-registered vessels are able to enter NZ provided the skipper is reasonably satisfied that every person on board is either an NZ citizen or meets New Zealand’s visa requirements.

There is a very clear benefit to being a NZ registered vessel in the current world. 

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1 hour ago, jorxster said:

Yeah import duties and taxes are paid.

The current owner entered NZ from Fiji in 2021 and qualified because he was an NZ citizen (like myself, dual NZ/Canadian) though his wife, a German national, was not permitted to (and had to fly)

So despite being German registered, it was able to pass through our current Maritime borders

Don't get me wrong, it's definitely possible....

Quote

New Zealand Citizens are not prevented from arriving in New Zealand.  However, the vessel you are travelling on also needs to be permitted or exempted to arrive if it is not a New Zealand vessel 

Just pointing out a benefit of NZ registration in the current climate. It might or might not be enough to justify it for you. And there is no guarantee that this or something else similar could not occur again for other reasons in 10yrs time...

The Government has been quite kind to permanent residents that are not citizens, there is no guarantee or right of return for a permanent resident, only citizens have that privilege. I always tell people to get citizenship in any country where you become entitled to it because you just never know what the future holds.  I hope it never happens in my lifetime, but one day non-citizen residents might be barred from entering as well... 

Personally, I feel the same applies to boat registration, I want to have all the protections/privileges afforded from the country where I am domiciled.  Because if the last two years have taught me anything, it's that sh*t happens... 

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Keeping the German registration is ok, so long as the new owner qualifies to have a German registered ship (possibly you don't - can't remember German requirements), but legally the skipper needs the qualification of the flag state - if you're sailing out of NZ. Many places won't ask you see your qualification, but some will. 

 

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On 22/01/2022 at 12:29 PM, Black Panther said:

Nothing. Prior to covid ruining everything that was the plan. Register in say the Cook Is, sail to Fiji, re register in NZ,  sail west.

New plan? Haven't a clue.

To register in CK you have to sell the boat to a Cook Islands entity, (unless you're a Cook Islander?) 

When the boat leaves NZ it is exported by that company. No problem at that point, taxes are paid in NZ.  So the same company can import it back into NZ with no ramifications. 

However, when you then get to Fiji and you buy the boat back from the CK company so you can put it back into NZ registration,then,

When you sail back into NZ, you are now the owner, so you are now required to pay import taxes. 

This seems a really expensive way to get around Cat 1...

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2 hours ago, Black Panther said:

I suspect that is not correct. 

The most recent example of this I am familiar with was a boat built in NZ and sailed/raced extensively in NZ for several (10+) years.  So GST was obviously paid. 

The owner then took the boat overseas. (an export event). 

When the boat came up for sale, a kiwi decided to buy the boat and import it back to NZ. The new importing owner had to pay full GST/duties when importing it.

Had the original exporting owner, returned to NZ, re-imported  the boat and sold it locally in NZ, there would of been no duty to pay. 

Customs were made aware of the history of the boat but it made no difference as he was not the same owner who exported the boat in the first place.

My understanding from this is that a future import exemption is assigned to the owner at the time of the export, not the vessel.

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