Bermudian Dendrick Taylor said he was "surprised" to learn through the yacht's captain that officers had visited and threatened to impound her.

"They accused me of utilising it for commercial purposes," he said yesterday. "I'm not here to create problems with Government departments. I don't see what Customs has to do with it.

"There have been absolutely no financial transactions at all. All I've done is invite representatives from Government and individuals in tourism to come aboard and see the quality of the product. I am surprised."

Captain Taylor admitted the luxury yacht ? which comes with a $20 million price tag ? had received an earlier warning from Customs, shortly after pictures of were broadcast on local news along with his plans to use the vessel to improve the way the island is marketed.

The second warning came shortly after mechanical problems forced the yacht to return to the island last Sunday, three days into a journey to the Azores.

When contacted yesterday, Collector of Customs WinifredFostine-DeSilva said the officers were following standard procedure ? ensuring that the ship's captain adhere to the same regulations applied to all visiting vessels.

"Any visiting vessel is restricted on its use while in Bermuda waters. It can't be offered for sale, lease or any commercial activity. If so, it renders the boat to forfeiture."

Once the vessel has been purchased ? and duty paid to Bermuda Customs ? the restriction is lifted, Ms Fostine-DeSilva explained.

"What I imagine happened is that the boarding officer visited the ship's master and reminded him of (the form) he signed when he entered Bermuda's waters."

Captain Taylor said he and the yacht's captain had agreed to stop "any visitation on the yacht or any pictures being taken inside the yacht" but he expressed his frustration with Bermuda's bureaucracy.

"This is a prime example of Government departments crossing one another. It's something the Minister has spoken about - the red tape of Government blocking progress for tourism. People are willing to come here and invest millions of dollars but then jump and leave in frustration."

He remained hopeful, however, that his venture would still receive Government's backing.

"The Minister did find the project very interesting but because it's a large project she needs time to digest all of the information."

Once repaired, the yacht is expected to leave Bermuda for the Azores as soon as the high winds now affecting the island pass through.

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