PRIA Logo™
Title 19 — Customs DutiesRelease 119-73not60

§1484b Deferral of Duty on Large Yachts Imported for Sale at United States Boat Shows

Title 19 › Chapter 4— TARIFF ACT OF 1930 › Subtitle SUBTITLE III— ADMINISTRATIVE PROVISIONS › Part III— Ascertainment, Collection, and Recovery of Duties › § 1484b

Last updated Apr 5, 2026|Official source

Summary

Lets large yachts come into the United States for display at boat shows without paying import duty right away. Duty is delayed until the yacht is sold. A "large yacht" is over 79 feet long, mainly used for pleasure, and was previously sold by a maker or dealer to a retail buyer. To delay duty, the importer must tell the Customs Service the yacht is for sale at a U.S. boat show and put up a bond for 6 months equal to twice the duty that would apply under subheading 8903.91.00 or 8903.92.00 of the Harmonized Tariff Schedule of the United States. If the yacht is sold within six months, the importer must complete entry and pay the duty based on its import value and the bond is returned. If it is not sold or exported within six months, the importer must still complete entry and pay the duty and the bond is returned. The bond period cannot be extended, and a yacht exported under the bond cannot be reimported for sale at a U.S. boat show for 3 months after export. The Secretary of the Treasury can make rules to carry out these steps.

Full Legal Text

Title 19, §1484b

Customs Duties — Source: USLM XML via OLRC

(a)Notwithstanding any other provision of law, any vessel meeting the definition of a large yacht as provided in subsection (b) and which is otherwise dutiable may be imported without the payment of duty if imported with the intention to offer for sale at a boat show in the United States. Payment of duty shall be deferred, in accordance with this section, until such large yacht is sold.
(b)As used in this section, the term “large yacht” means a vessel that exceeds 79 feet in length, is used primarily for recreation or pleasure, and has been previously sold by a manufacturer or dealer to a retail consumer.
(c)At the time of importation of any large yacht, if such large yacht is imported for sale at a boat show in the United States and is otherwise dutiable, duties shall not be assessed and collected if the importer of record—
(1)certifies to the Customs Service that the large yacht is imported pursuant to this section for sale at a boat show in the United States; and
(2)posts a bond, which shall have a duration of 6 months after the date of importation, in an amount equal to twice the amount of duty on the large yacht that would otherwise be imposed under subheading 8903.91.00 or 8903.92.00 of the Harmonized Tariff Schedule of the United States.
(d)(1)If any large yacht (which has been imported for sale at a boat show in the United States with the deferral of duties as provided in this section) is sold within the 6-month period after importation—
(A)entry shall be completed and duty (calculated at the applicable rates provided for under subheading 8903.91.00 or 8903.92.00 of the Harmonized Tariff Schedule of the United States and based upon the value of the large yacht at the time of importation) shall be deposited with the Customs Service; and
(B)the bond posted as required by subsection (c)(2) shall be returned to the importer.
(e)(1)If the large yacht entered with deferral of duties is neither sold nor exported within the 6-month period after importation—
(A)entry shall be completed and duty (calculated at the applicable rates provided for under subheading 8903.91.00 or 8903.92.00 of the Harmonized Tariff Schedule of the United States and based upon the value of the large yacht at the time of importation) shall be deposited with the Customs Service; and
(B)the bond posted as required by subsection (c)(2) shall be returned to the importer.
(2)No extensions of the bond period shall be allowed. Any large yacht exported in compliance with the bond period may not be reentered for purposes of sale at a boat show in the United States (in order to receive duty deferral benefits) for a period of 3 months after such exportation.
(f)The Secretary of the Treasury is authorized to make such rules and regulations as may be necessary to carry out the provisions of this section.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Harmonized Tariff Schedule of the United States, referred to in subsecs. (c)(2), (d)(1)(A), and (e)(1)(A), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under section 1202 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 106–36, title II, § 2406(b),
June 25, 1999, 113 Stat. 171, provided that: “The amendment made by subsection (a) [enacting this section] shall apply with respect to any large yacht imported into the United States after the date that is 15 days after the date of the enactment of this Act [
June 25, 1999].”

Transfer of Functions

For

Transfer of Functions

, personnel, assets, and liabilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see section 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. For establishment of U.S. Customs and Border Protection in the Department of Homeland Security, treated as if included in Pub. L. 107–296 as of Nov. 25, 2002, see section 211 of Title 6, as amended generally by Pub. L. 114–125, and section 802(b) of Pub. L. 114–125, set out as a note under section 211 of Title 6.

Reference

Citations & Metadata

Citation

19 U.S.C. § 1484b

Title 19 — Customs Duties

Last Updated

Apr 5, 2026

Release point: 119-73not60