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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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@oceanskiesltd

25 March 2020 at 07:58

Here is a batch of Tonnage Plates for yachts we are registering with @RedEnsignGroup under British flag here @oceanskiesltd HQ awaiting courier despatch. These plastic strips are an important part of the yacht registration process #yachtregistration #yachtregistry pic.twitter.com/5xGR7f0Xo3

@oceanskiesltd

17 March 2020 at 07:43

A beautiful start to the day again here @Oceanskies in St. Peter Port Guernsey were we are pleased to welcome the latest @sunseeker_int Sunseeker 50 Predator #Guernsey @guernseyharbours @locateguernsey @vistguernsey #PositiveVibes pic.twitter.com/rajLtbGriM

@oceanskiesltd

16 March 2020 at 13:42

On this sunny Monday we are pleased to welcome this beautiful @Sunseeker_Intl 76 Yacht to @gsyharbours which is undergoing @RedEnsignGroup registration with Oceanskies - Anyone would think its Summer! #yachtregistration #yachtlife #Guernsey @LocateGuernsey #PositiveVibes pic.twitter.com/gy0sguWV5S

@oceanskiesltd

11 March 2020 at 16:55

Today we have been Northern France visiting an incredibly busy @Lagooncats factory near La Roche sur Yon for the tonnage survey of a newbuild Lagoon 46 sailing catamaran undergoing @RedEnsignGroup registration by Oceanskies #lagooncatamaran #yachtregistration #tonnagesurvey pic.twitter.com/rwmKAuzOvX

@oceanskiesltd

10 March 2020 at 17:21

Today Duncan has been in a sunny and warm Monaco for the tonnage survey of an @PrincessYachts Princess 82 undergoing red ensign registration by Oceanskies - we are a leading yacht registration agency working with the world’s best yacht registries #yachtregistration #tonnagesurvepic.twitter.com/PUl9Sy4L9a9a

@oceanskiesltd

04 March 2020 at 06:53

Very pleased to act as agents for the visit to @gsyharbours of a @Sunseeker_Intl 76 Yacht @PrincessYachts Y78 #Sunseeker #SunseekerYachts #SunseekerFamily #Princess #princessaroundtheworld #Princessyachts #Guernsey @VisitGuernsey pic.twitter.com/Y3Tk7X8paE