USA: MGBW designated Foreign Trade Zone

Marine Group Boat Works (MGBW), a family-owned marine construction and repair company operating a shipyard in Chula Vista, California and the Fifth Avenue Landing marina in downtown San Diego, has been activated as San Diego’s newest Foreign Trade Zone (FTZ), and the only FTZ dedicated to luxury yachts in California and the south western United States.

The new FTZ provides an attractive west coast location for foreign-flagged vessels to be legally marketed to US buyers without having to pay hefty import duties and other required fees as soon as they enter American waters.
“Typically, if a foreign superyacht owner wants to market to American buyers, they must pay about 1.5% of the value of the vessel in Customs import duties and fees upon entry to the US. On a $50 million yacht, that’s $750,000 before they even know if they will be able to find a buyer,” said MGBW president Todd Roberts. “Now, they can come to San Diego, moor their boat, start showing it to potential buyers, have maintenance done, and even leave with it temporarily to attend boat shows, all without having to worry about taking a major financial hit before a sale is made. That’s a huge benefit for owners, but also a boon for San Diego, which has earned a spot for itself in the global superyacht industry.”
The City of San Diego is the grantee/administrator of Foreign Trade Zone No. 153, which currently includes 11 operators secured under the direct supervision of US Customs and Border Protection (CBP). MGBW worked closely with the City, CBP and FTZ consultants at JP Reynolds Company Inc., over the last 12 months to complete the rigorous approval and activation process to operate its two FTZ sub-zones on San Diego Bay, a 15-acre shipbuilding and repair facility in Chula Vista and a 12-slip boutique superyacht marina in the heart of downtown.
“Customs and the City of San Diego have been very enthusiastic in their support of this project,” said Roberts. “Marine Group Boat Works has made a substantial investment in creating a unique opportunity for the yachting community on the West Coast.”
MGBW is recognised worldwide as the premier superyacht refit facility on the west coast, with approximately one-third of its business devoted to this sector. Its FTZ designation will allow it to better serve international customers by providing an additional level of convenience and service, while also opening the door for bringing new business to the region.