What Happened?

If you own a Maltese-flagged pleasure yacht that holds a U.S. cruising license, you are exempt from certain entrance and clearance fees, tonnage duties, tonnage taxes, and light money at U.S. ports, after U.S. Customs and Border Protection (CBP) added Malta to its cruising-license country list. The rule, published Oct. 29, is detailed in a Legis1 review of the CBP amendment. ​

Under the new rule, the owner of a qualifying Maltese-flagged yacht may apply to a CBP port director for a cruising license valid for up to one year, allowing the vessel to move from port to port without those procedures or fees. Commercial yachts are excluded, and the master of any licensed vessel must still report each arrival to the appropriate CBP office.

Why Does it Matter to Me?

Owners of Maltese-flagged pleasure yachts with a U.S. cruising license can travel between U.S. ports without formal entry and clearance procedures or certain fees that previously applied, but the vessel's master must still report each arrival to the appropriate customs office. Malta's Ministry for Sustainable Mobility said the change removes a longstanding competitive disadvantage for Maltese-registered yachts, with Minister Chris Bonett saying it strengthens the Maltese flag's competitiveness, "especially for yachts over 24 meters."

The arrangement is reciprocal: U.S.-owned pleasure vessels in Maltese waters have received equivalent treatment since at least Feb. 4.

Both Sides, Now

CBP says the rule "implements the reciprocal cruising privileges established through that diplomatic exchange" between Malta and the U.S., and cited no executive order or presidential directive. CBP's authority comes from a federal statute, which lets the Secretary of Homeland Security extend fee-free cruising privileges to foreign-flagged pleasure yachts when the President is satisfied that the foreign country gives equivalent treatment to vessels owned by U.S. residents.

Because the rule carries out a foreign affairs function, CBP issued it without a public comment period or the standard 30-day waiting period, invoking a federal exemption for rules that implement foreign affairs functions. The article identifies no organized opposition.

What Happens Next?

CBP designated June 10 as the retroactive applicability date for the reciprocal privileges.

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