Under deferred importation, owners of foreign-flagged brokerage yachts would pay the same tax — but at a different time. Nearly 90 years ago, at a time when motorcars had just become the standard replacement for horses and buggies, the United States enacted the TariffAct of 1930. With it, lawmakers seeking to safeguard American jobs and businesses at the start of the Great Depression increased the tariffs on more than 20,000 imported goods. “It was designed to protect U.S. shipping interests,” says Paul Flannery, president of the International Yacht Brokers Association. “At the time when this law was enacted, there were a couple of European royalty and some robber barons who had yachts, and that was it.”
Today, Flannery says, the law is stopping $2.4 billion worth of brokerage yachts from…
