I
105TH CONGRESS
1ST SESSION
H. R. 2770
To amend the Tariff Act of 1930 to provide for a deferral of the duty
on large yachts imported for sale at boat shows in the United States.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 29, 1997
Mr. SHAW introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Tariff Act of 1930 to provide for a deferral
of the duty on large yachts imported for sale at boat
shows in the United States.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. DEFERRAL OF DUTY ON LARGE YACHTS IM-
PORTED FOR SALE AT UNITED STATES BOAT
SHOWS.
(a) IN GENERAL.—The Tariff Act of 1930 (19
U.S.C. 1304 et seq.) is amended by inserting after section
484a the following:
‘‘SEC. 484b. DEFERRAL OF DUTY ON LARGE YACHTS IM-
PORTED FOR SALE AT UNITED STATES BOAT
SHOWS.
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision 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 of offer for sale at a boat
show in the United States. Payment of duty shall be de-
ferred, in accordance with this section, until such large
yacht is sold.
‘‘(b) DEFINITION.—As used in this section, the term
‘large yacht’ means a vessel that exceeds 79 feet in length
and is used primarily for recreation or pleasure.
‘‘(c) DEFERRAL OF DUTY.—At the time of importa-
tion of any large yacht, if such large yacht is imported
for sale at a boat show in the United States and is other-
wise 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 Har-
monized Tariff Schedule of the United States.
‘‘(d) PROCEDURES UPON SALE.—
‘‘(1) DEPOSIT OF DUTY.—If any large yacht
(which has been imported for sale at a boat show in
the United States with the deferral of duties as pro-
vided in this section) is sold within the 6-month pe-
riod after importation, entry shall be completed and
duty shall be deposited with the Customs Service.
Duty shall be calculated at the rates provided for
under subheading 8903.91.00 or 8903.92.00 of the
Harmonized Tariff Schedule of the United States
and shall be based upon the value of the large yacht
at the time of importation.
‘‘(2) RETURN OF BOND.—The bond posted as
required by subsection (c)(2) shall be returned to the
importer.
‘‘(e) PROCEDURES UPON EXPIRATION OF BOND PE-
RIOD.—
‘‘(1) IN GENERAL.—If the large yacht entered
with deferral of duties is neither sold nor exported
within the 6-month period—
‘‘(A) entry shall be completed and duty
(calculated at the rates provided for under sub-
heading 8903.91.00 or 8903.92.00 of the Har-
monized 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 sub-
section (c)(2) shall be returned to the importer.
‘‘(2) ADDITIONAL REQUIREMENTS.—No exten-
sions 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) REGULATIONS.—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.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply with respect to a large yacht en-
tered into the United States after the date that is 15 days
after the date of enactment of this Act.
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