Guatemala threatening to import overstaying visiting boats.

[Graham376]

Received the following email from a friend, he's wondering if they can do this. My thoughts are that they can but what do you think?

We are still in Guatemala, where the maximum length of a cruising permit is 2 years which is well known. However this was extended by 6 months due to the the pandemic restrictions where cruising was banned and exit by boat was also banned.
Now, we eventually decided to Haul out for repairs and upgrades and checked with the yard that we wouldn't fall foul of overstay regulations which they said did not apply to boats in the yard and only the cruising permits.
We've heard all sorts of stories about threats from the Guatemalan tax authorities concerning boats
Yesterday, we met with the local civilian agent who makes a lot of money out of cruisers "dealing with paperwork"
He's telling us that from January, any boat that out stays the 2 year period (plus extensions) will be forced to permanently import their boat and pay import tax of 20 % or vat on their assessment of the vessel.
Now, I doubt that they'll actually enforce this and may resort to the old method of spurious fines or 500 USD.
But given that we're on the part 1 register, can Guatemala enforce reflagging against our will or can we call the Navy.
It's very corrupt here and dinero usually would resolve issues but the Guat Navy have started flexing their muscles on these issues
Can we call ours when it's time to escape lol?

 

[ean_p]

It of course depends on what the law in country says but as per most other countries I believe, that after a certain period the boat will be deemed to be de facto imported with all that that means!

 

[Tranona]

Little different from EU law.

The flag state is probably irrelevant unless the local law srares rhar when boats are imported they have to be registered locally. However doubt that will change ownership rights so the boat will be free to leave - just have to pay the tax.

 

[Graham376]

Asked him whether they are also insisting on flag change and this is the reply

Well, there's nothing been issued in writing, but the agent is saying that.
I don't think that they could enforce re registration.

 

[Seven Spades]

Just leave before yout time is up and don't overstay. I don't believe you will find a shortage of places to go to.

 

[piratebarnabus]

Unfortunately, that is not really possible.
There is also an issue with tides here meaning we'd be in default anyway. Then we have to clear off to Panama to avoid the hurricane season.
It's a known problem and in the past a relaxed view was taken and a simple fine imposed.
Then, then the pandemic came, the navy pitched up and started looking more closely.

You can return here after 3 months but we wouldn't want to do that and our original plan of returning to Europe is beset with other tax issues since Brexit and other draconian rules for non residents.
Grenada is a good option for those wanting to stay in the Caribbean longer term.

 

[KompetentKrew]

I don't see how the flag state / part 1 registry is relevant.

The registry is open to UK citizens worldwide, so the owner can choose to import the boat into a foreign country.

Even if the authorities were to seize the vessel, you'd have to challenge it in the local courts; any UK court would bow to the jurisdiction of Guatemalan ones.

 

[AndrewB]

Isn't this true of most countries? For example in the UK we offer "temporary admission" (aka "temporary import relief") for visiting foreign national yachts, of 18 months. After that its leave or import, paying duty and VAT. Laying-up makes no difference. At the discretion of customs, this period can be extended in exceptional circumstances. Maybe Guatemala had been making such allowances during the height of the Covid epidemic, when movement was restricted, and now propose to withdraw this?

 

[john_q]

I am also in Rio Dulce Guatemala and am hearing different stories from different people. For example, my importation agent tells me the fine for overstaying is US$300 regardless of how long you are overdue.

We have 2 boats here and are importing one of them. This is done by SAT (Customs) not the Navy. I was told I can keep my UK registry after importation if I want to and remember, it is up to you to cancel your UK registration not the Guatemalans if you go this route. The importation process is not quick, We started in April 2021 and it is still not completed yet.

I also have heard that SAT have nowhere to keep boats if they are impounded, they would have to pay for storage space.

Also conflicting information about having to leave the Guatemala and remain out of the country for 3 months, I know of at least 1 boat that went to Cuba for a few weeks and returned recently and re started their cruising permit clock.

And there are different types of cruising permits and extensions. 90 days, 9 months( which can be stretched) and the final 1 year as well as the SAT deal done in March 2021 for 9 months.

Your friend's boatyard may well have contacts to help him out with his dilemma.

Ahh .... The joys of Central America and it's bureaucracy

 

[Graham376]

From what I've been told, the next suitable tide for leaving will be April due to clearing sandbanks. As he mentioned in #6, by then they will be even further over time in country.

 

[sailaboutvic]

Ahh .... The joys of Central America and it's bureaucracy

For them of us who been cruising for many year bureaucracy is now everywhere days for free cruising are gone European cruising isn't that much better for 3rd world sailors and boats .
For them of us who know the loop holes are still getting away with it but it isn't going to last much longer.
I think people need to think very carefully before registering boats under a different flag to get around rules I have to admit , it did go through my mind a year ago .
For the time being other methods are still working .
People should do a lot of research before charging flag or importing boat into a country that's not their own country just to get around rules.
What happen when you want to sell? Pass it onto another family member? If you die? Taxes? Rules for that country flag? The list goes on.

 

[dunedin]

Isn't this true of most countries? For example in the UK we offer "temporary admission" (aka "temporary import relief") for visiting foreign national yachts, of 18 months. After that its leave or import, paying duty and VAT. Laying-up makes no difference. At the discretion of customs, this period can be extended in exceptional circumstances. Maybe Guatemala had been making such allowances during the height of the Covid epidemic, when movement was restricted, and now propose to withdraw this?

I think that is the point.

The thread would be better entitled “Guatemala requests payment for taxes due” - in the same way any other country would

 

[john_q]

From what I've been told, the next suitable tide for leaving will be April due to clearing sandbanks. As he mentioned in #6, by then they will be even further over time in country.

There are good tides at the end of December 2021 and new reports are hinting at possibly more water than in the past few years over the bar