Marine Group Boat Works in Chula Vista and the Fifth Avenue Landing marina in San Diego have been activated as San Diego’s newest foreign trade zone. Marine Group Boat Works (MGBW), a family-owned marine construction and repair company in Chula Vista, and the Fifth Avenue Landing marina in San Diego have been activated as San Diego’s newest foreign trade zone (FTZ). The locations are also the only FTZ dedicated to luxury yachts in California and the southwestern United States. “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 U.S. 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.” Foreign trade zones encourage international commerce without being subject to the usual customs duties and regulations. While owners of foreign-flagged vessels are prohibited from engaging in commerce or trade while on U.S. soil unless they pay for their vessel to be imported, a designated FTZ avoids the duties and fees. “When you’re talking about superyachts, which can easily be valued at $200 million or more, and you start looking at the cost of maintenance and repairs, it’s not unusual for owners to do a cost-benefit analysis and consider whether or not to sell,” Roberts said. “Now, when our international customers inquire about selling, we can offer them the opportunity to market to U.S. buyers from right here in San Diego. We have everything they need within minutes — the marina, downtown, the shipyard, and the airport. Everything is turnkey and convenient. We think the yachting community will be excited to have this new option available in California.” MGBW has worked with the City of San Diego, U.S. Customs and Border Protection, and FTZ consultants at J.P. Reynolds Company Inc. over the past year to secure approval and the activation process to operate its two FTZ sub-zones on San Diego Bay.