Unlocking New Yacht Ownership Opportunities In California
At IYC, we always seek solutions that will transform and develop the luxury yacht market, which will benefit our clients. Most recently, factors have been reshaping yacht ownership for our clients and team on the West Coast of the USA in California.
San Diego has emerged as an increasingly attractive proposition for international yacht owners, thanks to its new Foreign Trade Zone (FTZ) designation. This approach now offers enhanced flexibility and financial advantages to yacht owners.
California Dreaming, Realized
California, and especially San Diego, is quickly becoming a standout destination for the luxury yacht market. Over the years, our team has recognised this increasing popularity, giving rise to our regional strategic office and consultants based in San Diego, positioning us perfectly to leverage these new opportunities for current and prospective clients.
As secure areas located near customs and borders protect ports of entry, the purpose of an FTZ is to encourage international trade and stimulate economic growth. The Marine Group Boat Works and Fifth Avenue Landing superyacht marina is now the first dedicated FTZ in California for yachting, presenting exciting times ahead.
San Diego offers the perfect destination for the yachting market, thanks to its easy access to an international airport, world-class marinas, and a state-of-the-art shipyard. Alongside the access is the wealth of cruising grounds available, blending coastal charm with relaxed city sophistication, making yacht charters increasingly attractive.
The laid-back city has a beautiful bay, rich maritime history, diverse waterfront attractions, and is a gateway to offshore Pacific adventures. Some of the most incredible destinations on the West Coast of America are located along the California coastline, such as the nearby Channel Islands.
A Numbers Game
Historically, foreign yacht owners faced significant financial barriers and risks to market to the US; around 1.5% of the yacht’s value would be paid in import duties and fees upon entry to the US. The development of the FTZ means this is no longer the case, and import duties are no longer an issue, making it much more attractive for foreign-flagged yachts to enter American waters.
With the new FTZ, international yacht owners can now market to US buyers, attend boat shows, and carry out maintenance and berth in California without upfront payable duties. The Marine Boat Works Group estimates that since opening its superyacht facility in 2007, it has made a $1.2 billion impact on the San Diego economy.
Ready For Market
However, this development isn’t simply about removing financial barriers but creating new opportunities, expanding market access and providing improved flexibility for owners worldwide. The California FTZ represents the kind of market development and opportunity that IYC champions for our clients.
Matthew Stone, IYC’s Managing Partner in California, comments: “The new Foreign Trade Zone represents a turning point for yacht ownership on the West Coast. It now provides game-changing opportunities that alleviate restrictive financial barriers and open a new marketplace for foreign-flagged yachts. Owners can now potentially sell their yachts in US waters without the traditional constraints. It’s a strategic advantage that positions California and especially San Diego as a standout destination for the market.”
For yacht owners considering selling a superyacht, this new FTZ provides the convenience and flexibility to prepare the yacht for sale. Our expert consultants based in San Diego can help guide you through the entire process.
Other USA locations with FTZ status include Derecktor in Fort Pierce and the Lauderdale Marine Center in Florida. On the East Coast, in Newport, Rhode Island, the Newport Shipyard is recognized as an FTZ. In terms of superyacht marinas, alongside Fifth Avenue Landing is Yacht Haven Grande in Miami, Bahia Mar and Lauderdale Marine Center in Florida.
If you are looking to sell, purchase, or explore the evolving landscape of yacht ownership in California and the West Coast of America, contact one of our expert consultants to learn more.
Photos by Mark Neal on Unsplash, Shelby White on Unsplash,