Law change allows superyachts to register under US flag

Yacht and superyacht owners of boats above 300GT are now legally able to register their vessels in the USA after a nearly-century-old law was amended.

On 13th August, US President Donald Trump reversed a 1920 law defining a yacht as a seafaring vessel with a maximum volume of 300GT, meaning that owners with large yachts and superyachts are now able to fly an American flag if they so wish.

The amendment received bipartisan support in Congress, and Republican Congressman Duncan Hunter (California’s 50th district), chair of the subcommittee on Cost Guard and Maritime Transportation, said of the changes, “I am very pleased that the President has signed legislation that will increase the number of large recreational vessels which fly the US flag. This will lead to more US jobs in the ship repair and supporting industries.”

Prior to the change, if a yacht breached the 300GT threshold it was only able to fly the Stars and Stripes if it was registered as a commercial vessel – which comes with a set of different legal requirements compared to yachts. As a registered commercial vessel, it would be forced to meet certain operational and construction standards – the same as cargo ships – and be subject to regular US Coast Guard inspections.

For most superyacht owners, this has been an unreasonable solution. Although a small number of owners successfully pursued acts of Congress for an exemption, this had often been a lengthy and expensive process. In the end most owners registered their yachts with foreign flags simply because it was more feasible.

Kate Pearson, US Superyacht Association (USSA) chair and vice president of business development of Safe Harbour Marinas, said of the law change, “This has been a significant issue that the USSA has spent nearly a decade working to correct. We are thrilled to have been an integral part of helping to finally make it a reality and are pleased that yacht owners will no longer be chased from American shores to other countries to flag their vessels.”

 “The economic impact of more large yachts flagging US could be significant, as these large vessels would now provide more high-profile opportunities for American crew, keep yachts travelling in US waters, and spend more time in our repair and refit yards,” added Kitty McGowan, USSA president.

Although the law change appears to be a positive step, there are some points noted by the International Yacht Brokers Association, including that large yachts cannot legally carry cargo or passengers for hire – which effectively rules out time charters, although bareboat chartering looks to be exempt.

In addition, any US-registered vessel must now comply with citizenship requirements for owner and crew, and owners also have to disclose the identity of the beneficial owner to the US Coast Guard.

A specific US Large Yacht Code is believed to be in development by the authorities, with a view to entering law in 2020.

However, this is all still surely welcome to the US superyacht industry, which has recently suffered from the after-effects of President Trump’s ongoing trade rows with the rest of the world.

Read more about yacht registration and finding out which flag is right for your yacht.

Superyacht News
March 28, 2024
Tried & Tested - Best Yacht Mattresses: Product Review
Tried & Tested - Best Yacht Mattresses: Product Review

In the realm of maritime luxury, the quest to offer yacht charter guests the perfect night's sleep has become an art form, one which luxury bed and linen supplier, CC Design, has fully committed to.

By Ben Cooling
March 15, 2023
Best Yacht Crew Jackets: Product Review
Best Yacht Crew Jackets: Product Review

A jacket completes any crew member's uniform so it's an important garment to get right. In this Tried & Tested, Sea Design pits eight popular jackets against one another to determine which one is best for superyacht crew in 2023.

By Nathan Bees
April 19, 2023
iAQUA Sea Scooters: Product Review
iAQUA Sea Scooters: Product Review

iAQUA creates high-performance, technologically advanced underwater scooters. In this Tried & Tested, a team of experienced testers have rated and reviewed the AquaDart Pro and AquaDart Nano series to reveal the stand-out iAQUA sea scooter.

By Holly Sanderson

Finished reading? Now find your perfect supplier.

Search our industry-leading directory for over 20,000 superyacht suppliers, providers and marinas.

Search now