Thanks, YF!
Hat4349: The issue of duty primarily comes up when a yacht is offered for sale. A foreign flagged vessel can cruise here under an annually renewable cruising permit. "Negotiating duty" isn't an option. If the seller wants to include the US market, then he pays the duty before he can offer it for sale. Brokers frequently recommend owners pay the duty, but it is sometimes difficult for an owner to lay out a chunk of money to increase the market potential when it does nothing to add to the value of the vessel as to equipment or appearance.
Judy