The readers of the "first draft" of this epistle have asked a number of good questions, whose answers we are posting here. We would welcome any other questions; please email them to Marina Portofino and we will do our best to reply on this page. Thanks for reading!
This sounds incredibly complicated. How long will it take to complete the whole process?
Best case – 2 months; most likely case – 4 months.
The first part of the process – reserving the corporate name, drafting and filing the articles of incorporation, opening a bank account, getting the matricula, etc. – should take no more than 4 to 6 weeks. The second, and most time consuming, part – getting the TTAC permit from MIC – can take up to three months. In our previous go-arounds with Corpoturismo, we found that the Venezuelan beaurocracy is no different that the U.S.: you fill out the forms, provide all of the requisite information; schedule a meeting; go to their office; wait; wait some more; and when you finally meet with the bureaucrat he or she says: "Yes, well now we need some more information". Ugh.
The total elapsed time from start to finish depends, in part, on when you begin the process. Almost no business is conducted here between December 15 and the beginning of the second week of January, so we would not recommend you start this effort any later than September 1 of any given year if you wish to complete the process without too many delays.
Also, it should be noted that there are time limits on certain portions of this process. For example, name "reservations" are valid for 30 days. If the Articles have not been filed withing 30 days of the issuance of the name registration, then you need to re-apply for the name of the corporation before you can file the Articles.
Do I have to spend 2-4 months in Venezuela to do all of this?
No. You will have to appear personally to sign the bank signature cards and the Articles of Incorporation. The rest of the paperwork can be handled by your attorney.
What about my financing?
Most U.S. lenders will still carry the "paper" if you change the flag of your vessel. There will undoubtedly be a "processing fee" of some kind, however, as both the legal identity of the owner and the nationality of the owner (and the boat) are changing. And we would guess that the U.S. owner would continue to have to co-sign for the new loan (as is almost certainly true for the existing loan!)
We are developing a list of U.S.lenders who will finance foreign flag vessels, and will post links to their web sites here.
When you bring your boat back into the U.S., I've heard you cannot get a "coastwise" document from the Coast Guard if she has had a foreign flag. Is this true?
We received the following response to this question from Dennis Nelson at the Coast Guard's National Vessel Documentation Center (NVDC):
"A U.S. built, ex-foreign flag and/or foreign owned vessel still may be documented with a coastwise trade endorsement as long as the vessel is 'of not more than 200 gross tons (as measured under chapeter 143 of title 46, United States Code)'. This change was made by Public Law 104-324 of October 19, 1996. Prior to the passage of this law a vessel of any tonnage permanently lost her coastwise trade eligibility if she were foreign flagged and/or foreign owned."
Dennis M. Nelson Chief, Recreational Vessel Division USCG National Vessel Documentation Cente 792 T. J. Jackson Dr. Falling Waters, West Virginia 25419 Phone: 304-271-2450 FAX: ex 2405 dnelson@nvdc.uscg.milThere are lots of other good FAQs at the NVDC website.