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State of Delaware Cracks Down On Abuse Of The Delaware Yacht Registration System

13 March 2020

The State of Delaware have introduced new procedures to crack down on the abuse of the Delaware yacht registration system by owners who are keeping their vessels outside the State of Delaware.

The new application procedure introduced in January 2020 requires owners to declare as follows:

“I declare under penalty of perjury that I / we am / are the legal owner(s) or agents thereof, of the vessel described in this application and that “DELAWARE IS THE STATE OF PRINCIPAL OPERATION” for this vessel.”

 “I declare under penalty of perjury under the laws of Delaware that the forgoing is true and correct.”

“I also acknowledge that I must notify the Division of Fish & Wildlife within 15 days of the owner(s) change of address and/or if the vessel is sold. Destroyed, abandoned, becomes documented or IS NO LONGER PRINCIPALLY OPERATED IN THE STATE OF DELAWARE.”

State of Principle Operation is defined by the State of Delaware as follows:

“State of Principle Operation means the State in whose waters a boat/vessel is or will be operated most during the calendar year. (33 C.F.R. § 173.3)”

The procedure also carries the following notice:

“FALSE STATEMENTS MADE HEREIN ARE PUNISHABLE BY LAW PURSUANT TO 11 DEL. C.  § 1233.”

Making a false written statement under this law is a class A misdemeanour in the State of Delaware. The sentence for a class A misdemeanor in the State of Delaware may include up to 1 year incarceration and a fine, restitution or other conditions as the court might deem appropriate.

Awareness of the situation is growing amongst foreign port authorities and owners of Delaware registered vessels that are kept and primarily used outside the State of Delaware can expect increased scrutiny that may result in their vessels being controlled and potentially detained.

As the Delaware registration is not an internationally valid registration it follows that Delaware registered vessels that are operating primarily outside the State of Delaware can be treated as unregistered or stateless vessels  meaning that local authorities can impose their own jurisdiction on the vessel which can effect the tax status of a vessel and the rules under which it must operate.

There are also potentially issues in other areas such as the validity of insurance.

Oceanskies have for many years been warning clients about Delaware yacht registration and we have updated our online guide concerning the limitations of the flag with the latest developments here:

Delaware Yacht + Vessel Registration – A Warning!

For any owner wishing to change their Delaware registration to an internationally valid registration we here at Oceanskies are ready to help.

Oceanskies is a marine consultancy specialising in the registration and documentation of yachts of all sizes in all of the main yacht registry jurisdictions but primarily under the British ‘red ensign’ flag which is the world's most prestigious and universally accepted registration for the operation of yachts sailing internationally.

We are always happy to provide free no obligation proposals to any client wishing to change their Delaware registration. To provide a proposal please follow the steps contained within our flag selector tool on the following link:

Flag Selector Tool

 

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Oceanskies on Twitter

@oceanskiesltd

02 June 2020 at 18:33

Last weekend we were pleased to handle the visit of this @MoonenYachts 30 Metre M/Y to @gsyharbours on a technical stop whilst repositioning from the Med to Northern Europe - pls ctc us for agency services for any yacht interested in visiting @VisitGuernsey this summer #Guernsey pic.twitter.com/Wq5XTwh4p3

@oceanskiesltd

29 May 2020 at 08:05

Over the spring bank holiday weekend we were very pleased to welcome our 2nd superyacht visitor since the resumption of Oceanskies yacht agency activities here in Guernsey post lockdown with the arrival of this awesome ketch by Baltic Yachts #Guernsey @visitguernsey @gsyharbours pic.twitter.com/VgymeuYA2L

@oceanskiesltd

16 May 2020 at 14:37

Following yesterday's announcement that we could resume our Guernsey yacht agency services we very pleased to welcome this @Sunseeker_Intl 131 Yacht as our first superyacht of the 2020 summer season to @gsyharbours @VisitGuernsey this morning #Guernsey #superyacht #PositiveVibes pic.twitter.com/cgXK3iWCfC

@oceanskiesltd

15 May 2020 at 19:39

BREAKING NEWS - Very pleased to announce that from 00:01 on the 16th May 2020 Oceanskies are able to resume our Guernsey port agency services for visiting yachts on a limited basis - see here for further info: oceanskies.com/blog/Resumptio… #Guernsey pic.twitter.com/QcDW975mXq

@oceanskiesltd

16 April 2020 at 07:56

Today was winter overhaul lift out in Malta for this client @Sunseeker_Intl Predator 80 for which our Malta office is providing guardianage and local support services - for further info about our Malta registration, importation, guardiannage + support services please ctc us…pic.twitter.com/mhd54RU2nSnS

@oceanskiesltd

09 April 2020 at 09:57

Today we have some good news to share - our Crew App has undergone a significant update and rebrand to 'CrewMate' - the App enables all of our seafarers to enjoy real time access to their employment and payment info - see our online guide for the details: oceanskies.com/yacht-crew/cre… pic.twitter.com/PuxqndRWeU