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In late 1985, Gary L. Lonsinger (petitioner) began
discussions with Pedro-Holland about the possibility of bringing
a line of vessels manufactured by Pedro-Holland to the United
States for resale. These vessels had no performance history in
the United States. Petitioner and his wife, Nancy L. Lonsinger
(petitioners), negotiated with Pedro-Holland for about a year,
and in 1986, ultimately reached an agreement whereby petitioners
would represent Pedro-Holland in the United States and would
bring the first boat into the United States for eventual sale.
The boat, called the "PEDRO", was built in Holland and delivered
to petitioners in the United States in July, 1987.
Petitioners understood that one of the requirements of U.S.
Customs is that, if a foreign-built boat is imported, it cannot
be sold for a commercial use within the 12 succeeding months, and
if the boat is imported as a pleasure craft, then a substantial
import duty must be paid. Consequently, it was agreed that the
PEDRO would be delivered "stripped" and would be outfitted by
petitioners in the United States, which would take a substantial
amount of time to complete. When delivered to petitioners in the
United States, the boat had no electronics on it, and lacked an
oven, a refrigerator, generators, a washer-dryer, furniture,
drapes, and carpeting.
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Last modified: May 25, 2011