NEW CUSTOMS RULES FOR CHARTERING VESSELS IN THE EUROPEAN UNION

Apr. 8, 2019 |  Blog - Customs & Tax - 

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Following our meeting with French customs on April 5th, 2019, we are able to give you the following news:

 

  1. SOLUTIONS FOR US-BUILT VESSELS WILLING TO COME BACK INTO EUROPEAN UNION WATERS

 

The main difference is whether the vessel has already been formally imported before June 22nd, 2018 or not.

 

If the vessel has been imported before June 22nd ,2018

 

The previous formal importation could either be the French Commercial Exemption, the French Reverse Charge or even a formal importation after a VAT payment on the hull.

 

These vessels, whether they have been formally exported or just left EU waters (an alternative proof of export can be submitted) will be able to come back to EU waters under a commercial certificate of registry and be reimported under the Returned goods relief (RGR) scheme.

 

Please note that you will be eligible for the RGR only if you fulfill the conditions of both the RGR and the previous regime under which you were imported (before June 22nd, 2018).

 

You will be eligible for the RGR if:

 

  • You haven’t left EU waters for more than three years
  • The ownership of the vessels has not changed since you have left EU waters (the owner is deemed to be the entity written on the certificate of registry)
  • The vessel has not been substantially modified since it left EU waters

 

If your previous importation was under the French Commercial Exemption you will still need to prove that you have respected the 70% rule regarding trips out of French waters in 2018.

 

YMCA can assist you with the formal importation under the returned goods relief scheme.

 

If the vessel was not imported before June 22nd ,2018

 

For US-built vessels that were not imported before June 22nd ,2018, you are able to enter EU waters under temporary admission if you respect the following conditions:

 

  • Non-EU flag
  • Non-EU owning company
  • Non-EU resident ultimate beneficial owner (UBO)

 

The main change after the meeting is that we have had confirmation that chartering is admitted under temporary admission whether the yacht is commercially or privately registered.

 

However, there are two main limits to this possibility:

 

  • EU resident charterers are not allowed
  • The fact that not all EU countries allow yachts under temporary admission to charter (France and some other countries accept this situation)

 

YMCA can assist you with the filing of a verbal declaration document which will secure your date of entry in the European Union (EU). As you may know, the time-limit under temporary admission in the EU is 18 months.

 

  1. NEW RULES APPLICABLE TO NON-US BUILT YACHTS WILLING TO CHARTER INTO EUROPEAN UNION WATERS

 

The formal importation in France is still possible and recommended

 

Commercially registered vessels are still able to be formally imported under the VAT exemption schemes in France such as the French Reverse Charge and the French Commercial Exemption.

 

This is the only available solution if you want to have EU resident charterers onboard.

 

As always, YMCA is here to carry out these formalities for you.

 

The possibility to carry out chartering activities under temporary admission for non-EU vessels

 

It is now possible for non-EU vessels (non-EU flag, non-EU owning company, non-EU resident UBO) to carry out chartering activities in France irrespective of whether they are commercially or privately registered.

 

Unfortunately, YMCA does not recommend this option as you won’t be able to have EU residents onboard and not all countries accept chartering under temporary admission.

 

Nevertheless, if you choose this option, YMCA will be able to help you file a verbal declaration document which will secure your date of entry in the European Union (EU).

 

Remember that you can’t stay more than 18 months under temporary admission in the European Union.

 

  • CHASE BOATS AND TENDERS

 

Tenders that don’t have their own registration and which are on the list of equipment of the main vessel won’t need to carry out any formality as their status will be assimilated to the one of the main vessel.

 

Tenders having their own registration and respecting the conditions of the temporary admission relief are allowed to come into the European Union but can’t be used by EU residents.

 

This point is still subject to discussion with French customs in order to find a solution.

 

 

Please note that all the information contained in this document only concerns customs rules and that some schemes may be barred by other regulations.

 

Moreover, this information is not legal advice.

 

The YMCA team remains at your disposal for further queries,

Best regards,

 

Contact us:

 

Landline: +33(0)4 92 00 43 9

E-mail: info@ymca-yachting.com

 

 

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