FAQs on new EU Vat Regulations

Created by webmaster. Last modified on 2004-11-08 12:13:43
Contributors: Chris Ennor, SY MAGIC CARPET
Topic: VAT

I recently wrote to the EU Commission seeking clarification of a couple of things relating to non-EU boats. They sent me these FAQs that should be of help to Noonsite Readers.

Frequently Asked Questions (FAQ) on Non-Community vessels privately used as a means of transport within the Customs territory of the Community (temporary importation).

Non-Community vessels intended for re-export may be used in the customs territory of the Community by persons established outside that territory with relief from import duties and Value Added Tax (VAT) if the goods are placed under the temporary importation procedure (TI). This customs procedure must be discharged within a given period. The re-exportation of the goods from the customs territory of the Community is the usual means of discharging a temporary importation procedure.

1. How can a yacht be placed under TI?

The sole act of crossing the frontier of the customs territory of the Community by using the route specified by the customs authorities and in accordance with their instructions, if any, is in general sufficient. However customs authorities may require an oral or written customs declaration and may make the placing of a vessel under TI conditional upon the provision of security.

2. How long is the period for discharge for yachts?

The period for discharge for privately used means of sea and inland waterway transport is 18 months (Article 562(e) of Commission Regulation (EEC) No 2454/93 of 2 July 1993 (CCIP) as amended by Commission Regulation (EC) No 993/2001 of 4 May 2001, OJ L 141, 28.5.2001, p.1).

3. Where can interested persons retrieve information about Article 562(e) CCIP and other relevant Articles concerning the arrangements for temporary importation (TI)?

The relevant Articles concerning TI are available at: http://www.eurunion.org/legislat/Art553to562.pdf

or

http://europa.eu.int/eur-lex/en/consleg/main/1993/en_1993R2454_index.html

4. A holder of authorisation wants to "bond" a yacht in a harbour (e.g. because the holder intends to be at home during Christmas time). Does a possibility exist to prolong the period for discharge?

The period for discharge (18 months) may be extended for the time during which the goods (e.g. vessels) are not used in accordance with Article 553(2) second subparagraph CCIP. The maximum period during which goods may remain under temporary importation procedure shall be 24 months (Article 140(2) of the Code).

5. How long must a yacht stay outside of the customs territory of the Community before the goods may be placed under TI again?

The customs rules do not provide for a "minimum period" during which the goods must remain outside of the customs territory of the Community. That means - e.g. - if a sailboat was re-exported and subsequently placed again under the arrangements for temporary importation, a new period for discharge (18 months) starts. However, non-Community goods intended for re-export may be placed under temporary importation procedure only (Article 137 of the Code).