St. Croix, USVI

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St. Croix
11:42 pm, May 17, 2025
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HOA passes more yachting reforms

With less than half an hour of public debate, the House of Assembly passed two bills last Thursday as part of long-delayed efforts to overhaul the rules for the marine industry.

HOA members first addressed the Cruising and Home Port Permit (Amendment) Bill, 2025, which mainly deals with requirements for Virgin Islands-based charter boats.

When explaining the bill, which was first Gazetted on Jan. 16, Premier Natalio “Sowande” Wheatley said it has various goals: “establishing clear requirements” for charter boats that use the VI as a home base; “clarifying exemptions for cruising permit requirements in specific circumstances;” requiring charter boat owners to appoint local agents; and facilitating “intra-territory trading” for “qualifying large vessels.”

No House members publicly debated the bill, and the HOA went directly into a closed-door committee session.

Members returned after about six hours and passed the bill with amendments. It now awaits the assent of Governor Daniel Pruce before being Gazetted and made public.

Next bill

Next, the premier read the objects and reasons for the Customs Management and Duties (Amendment) Bill, 2025, which was also first Gazetted on Jan. 16.

It primarily deals with duty exemptions for vessels owned by VI companies and registered in the territory.

“This bill addresses the temporary importation of vessels owned by our residents, proposing an extension to the allowable period,” Mr. Wheatley said. “This adjustment acknowledges the realities of vessel maintenance and international voyages while ensuring a balanced approach to our customs regulations.”

After Mr. Wheatley’s statement, only one HOA member contributed to the debate: opposition member Ronnie Skelton, who asked how residents would benefit from a provision that would allow imported vessels to stay in the territory for up to 180 days in a 12-month period without paying duties.

Mr. Wheatley responded in his closing statement that the provision aims to encourage boat owners to stay in the territory longer. “We want belongers to get involved in the maritime industry, and it would be an … incentive for them to be able to purchase a boat and to have it operating in the Virgin Islands,” he said.

After Mr. Wheatley concluded, the House entered a closed-door committee session to discuss the bill further for about 20 minutes. When members returned, they passed the bill with amendments. It now awaits the assent of the governor before being Gazetted and made public.

A man walks on a catamaran at Village Cay on Tuesday. Last Thursday, the House of Assembly passed two bills designed to reform the marine industry in the Virgin Islands. (Photo: ALLISON VAUGHN)
Criticism

The two bills — along with the Commercial Recreational Vessels Licensing (Amendment) Bill, 2025 — drew controversy in recent months.

Shortly after they were first Gazetted on Jan. 16, the Marine Association of the BVI — a nonprofit organisation that claims 60- plus members employing more than 2,500 people in the territory — sent a strongly worded letter to HOA members.

In the 10-page letter, which was leaked to the Beacon, the association agreed that reforms are needed, but it criticised many of the provisions in the Cruising and Home Port Permit (Amendment) Bill and the Commercial Recreational Vessels Licensing (Amendment) Bill.

It also alleged that the government did not sufficiently consult the industry before moving forward. The letter, however, did not criticise the Customs Management and Duties (Amendment) Bill, 2025.

Following the letter and other criticisms from the United States VI yachting industry, the VI government hosted a public meeting to discuss the three bills on April 9.

Stakeholders’ response

Though the finer details of the reforms won’t be public until the final bills are Gazetted, Marine Association Board Secretary Dick Schoonover said yesterday that stakeholders are glad changes are in the works. However, he expressed concern about the possibility of added bureaucracy.

“We’ve been very concerned about the ever, ever increasing amount of red tape imposed by the government,” he said. “And that doesn’t seem to have seen any relief.”

He added, however, that he was glad the consultations had taken place.

“They consulted with us at length, and they were open to our suggestions,” he said. “I hope that they took them into account, especially when it comes to the ever growing bureaucracy.”

Charter Yacht Society Executive Director Janet Oliver told the Beacon this week that her organisation also appreciated the recent consultations.

“Whilst we are unaware of the final contents of the amendment bills, we took every opportunity at each of the stakeholder’s consultations to share our input,” she said in a statement. “We do know prices for commercial vessels in the local fleet will increase, but, thankfully, from the early meetings in 2023 government accepted the industry’s recommendation to adjust the fees to reflect inflation.”

‘Under-pricing of fees’

The organisation’s main concern, she added, is “under-pricing of fees” for foreign boats that access this territory’s waters.

“An updated fee structure for foreign term charter boats aims to bridge the financial investment gap between locally based crewed yacht fleets and foreign-based operators benefiting from the unparalleled natural resource of the British Virgin Islands,” she stated.

“Vessels based in the BVI not only navigate extensive requirements to establish themselves here, but they also play a significant role in boosting the local economy — beyond the usual tourist hotspots like bars and restaurants.”

She added that the CYS finds the proposed fees for foreign boats to be low.

“It is worth noting a BVI vessel does not have reciprocal rights to operate in the USVI,” she stated.

Earlier bill

The Commercial Recreational Vessels Licensing (Amendment) Bill, 2025, also passed through the House on May 6 without any public debate.

Like the other two bills, it awaits the governor’s assent.

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