serving the boating community since 1980

Importing Direct and how it works...

 

The Advantages and Disadvantages of Importing Direct

Advantages

Disadvantages

Qualifying for the Import Direct Program

Who We Represent

Our Services

Getting Started

 

The Advantages and Disadvantages of Importing Direct

Advantages

Savings – Importing your luxury yacht directly from the manufacturer can save you 30% to 50% of the typical dealer list price.  For instance, a 95’ luxury motor yacht listed at $3,500,000 USD landed in the United States can be acquired for as little as $1,900,000 USD F.O.B. Taiwan.  Add to this price the cost of Customs, Insurance and Freight, commissioning and other expenses, the total cost to import direct will run approximately $2,215,000 USD. This is a savings of over 36% off the dealer list price, almost 1.3 million dollars in real savings; money that can be used to fund the operation of the vessel for a considerable length of time.

A 63’ Pilot House listed for $1,400,000 USD landed in the United States can be purchased for $895,000 USD F.O.B. Taiwan.  Customs, Insurance, Freight and other commissioning expenses can push the total direct import landed price to approximately $935,000 USD, for a savings or $465,000 USD, or 33% off the dealer list price.

These are just examples of the savings that can be realized.  Although these are real examples, drawn from vessels previously sold through this program, please note that Customs, Insurance and Freight costs will vary with the country to which you import and the time of year you ship the vessel.  Your total costs will also be affected somewhat by the current international monetary exchange rates at the time of purchase.

Choices – Your luxury motor yacht can be customized to your specifications, rather than settling for the layout of a vessel already built and in a dealer’s inventory.  These are not ultra-expensive one-off designs or custom built molds.  The molds for the hull and superstructure are already built, owned by the yards and, in many cases, are already in production under a well-known name.  However, you will be able to meet with a qualified naval architect to design the interior layout to your specifications.  In some cases, minor modifications of the superstructure can be arranged to change the look and style of the vessel.  The design choices you have also extend to such details as the brand and horsepower of the engines to be installed, tank capacities and other important issues.  As long as the seaworthiness and structural integrity of the vessel is not compromised, you retain complete control of the design of the finished vessel.

Disadvantages

As an individual, you have several serious disadvantages when compared to a yacht dealer.  Hernandez Del Rey Yachts overcomes these disadvantages for you.

Volume Pricing – Dealers are committed to purchase a certain number of yachts per year, and as a result get lower F.O.B. prices than you as an individual person or corporation purchasing a single vessel.  The F.O.B. price a yard will quote an individual approaching them will be significantly higher.  This is done to protect the yard’s dealer network, often making it just as attractive to purchase from a dealer, as it would be going to the yard directly.

Quality Control – Dealers have their own naval architects in the boat yards to oversee Quality Control and ensure the vessels are built according to desired specifications. As an individual, you may not have access to a qualified naval architect or the yard may resist frequent visits by an outside quality control representative, thus severely hampering your efforts to ensure the construction is to your specifications.

International Contract Law, International Maritime Law, Customs and Importation Regulations and Trans-Oceanic Shipping – These details are routine for dealers who import many vessels per year, but can be difficult for the individual unfamiliar with the processes involved.

These disadvantages may be overcome by using the direct import services of Hernandez Yacht Sales.  As a dealership, Hernandez Yacht Sales has been building and importing yachts from the top builders in Taiwan for over 20 years.  We use our volume to secure the best possible F.O.B. pricing for our clients; use our own independent naval architect for customization and quality control and handle all the delivery, customs and importation details.  Your custom yacht will arrive at the port of your choosing, ready for final commissioning by your local yard.

Who Qualifies for the Import Direct Program?

In a word: Buyers.  This program is not designed for shoppers or lookers.  This program is designed for the buyer who has already done the homework, knows what he wants and is ready to purchase.  It is designed for the buyer who is not satisfied with the choices offered by the ready-made, turnkey yachts in the dealer’s slips.

If you are a qualified buyer, looking to build and own a custom yacht that reflects your personal taste and discrimination, we can help. When you are ready to own the best, give us a call.  Let us build dream yacht.

Who We Represent

As an import direct agent, we represent you, the buyer.  We are independent of any quotas with a specific boatyard and do not need to maintain an expensive inventory or expensive slips and other marina related overhead.  We do not represent any one particular boatyard; we have arrangements with many yards.  We simply provide a service, taking care of the myriad of details involved in building and importing a custom yacht.

Our Services

Below is a summary of the services offered by the Import Direct Agents at Hernandez Yacht Sales:

  • Match qualified buyer with qualified boatyard that can build the type and style of vessel
  • Arrange for a naval architect to meet with the buyer to custom design the yacht
  • Provide a quote directly from the yard to construct the vessel
  • Negotiate the final contract with the boatyard on behalf of the buyer
  • Provide a pro forma invoice backed by the Taiwan Yacht Builder’s Association to fix the price at current exchange rates and to facilitate the acquisition of a letter of credit by the buyer
  • Arrange for regularly scheduled quality control inspections
  • Arrange for engines to be warranted by the manufacturer, both at the yard and re-certified after delivery.
  • Arrange for final inspection and sign off by buyer or designated agent
  • Arrange for delivery of vessel, including freight and insurance
  • Arrange for customs and importation requirements

How To Get Started

Decide the length and type of vessel (trawler, pilot house, etc.) you wish to build and general interior layout and tank capacities.  Often our clients come to us with a statement like, “I like the 73’ XYZ Pilot House, but I don’t like the interior layout or engines.”  This is a good place to start, especially if you have an idea of what you need as far as interior layout and you know your preference for engines, etc.  We can give you a general idea of the F.O.B. price and when you are ready, we can begin the process listed above.

To start the process of building your custom yacht is fairly simple. 

  • You will need to sign an “Exclusive Agent Agreement”, which allows Hernandez Yacht Sales to represent you to the boat yards.
  • Place a deposit on the vessel in a trust account.  The amount of the deposit is negotiable, but is normally about 10% of the F.O.B. price.  Your deposit is refundable should the deal fall apart and you do not buy the boat.  Hernandez Del Rey Yachts is required to have a trust account so that your deposit remains secure during the process of finalizing the deal.
  • Arrange with your bank for a Letter of Credit or some other method of payment.  Hernandez Del Rey Yachts will issue to your bank the necessary instructions and information for cutting a Letter of Credit and can provide a “pro forma” invoice from the yard to facilitate this process.
  • Sit back and let us handle all the rest.  We will guide you through every step of the process and handle all the details involved.  You will have full access to all of the considerable resources available to us as a dealer, broker and importer of luxury yachts with over 20 years experience.
  • A meeting with a naval architect and a physical trip to the boat yard may be necessary or simply desired.

 Please see Traveling to Taiwan for additional important information.

     

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