New Law Allows U.S. Yacht Owners to Fly American Flag

It’s a move that’s been almost 100 years in the making.

Thanks to an amendment signed on August 13 by President Trump, yachts that are more than 300 gross tons can now register as recreational vessels in the United States.

The law, which has been on the books since 1920, classified yachts that spilled over the 300 GT limit as commercial vessels, making it difficult for owners to register them under U.S. codes.

Good News

According to Trade Only Today, because commercial vessels, such as cargo ships, are held to different operational and construction standards than yachts, the old law forced some owners to pursue acts of Congress, with the hopes of having their personal vessels exempted. But the process often proved fruitless and expensive.

After the news broke, US Superyacht Association (USSA) chair Kate Pearson noted, “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.”

Economic Impact

Most on Capitol Hill echoed Pearson’s excitement, believing the new bill would lead to more U.S. jobs in the repair and crew sectors.

USSA President Kitty McGowan agreed, saying, “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.”