Much has been written since the announcement last June of the EU’s enforcement of an existing regulation on US-built commercial yachts, or US-made parts on US-flagged yachts. , in response to the US’s imposition of tariffs on EU commodities. (See regulation (EU) 2018/724 amended 28/6/2018 via (EU) 2018/886)
The regulation is complex and has deterred some boats from coming across for the forthcoming Mediterranean season, though it’s fair to say that its true impact has been overstated. The number of vessels affected is small, but here are the key facts of which you should be aware:
- Privately-registered and privately-used yachts, adhering to 18-month ‘Temporary Admission’ (or ‘Temporary Importation’) rules, are entirely unaffected.
- Import duty of 25%, plus VAT, now applies to pre-owned yachts of 12 metres or more manufactured and registered in the USA and sold/imported into the EU. US-made parts on non-US built but US-flagged yachts are also subject to import duty and VAT.
- US-built and -flagged yachts of less than 12 metres are subject to a 1.7% customs duty.
- Yachts imported into France as commercial yachts under France’s ‘Commercial Exemption’ (FCE) regulation, or through other countries, eg Malta, and hold an Import Customs Declaration (DAU/SAD), are now subject to import duty and VAT.
If in doubt, please contact us for more information, though we recommend you take independent legal advice before planning on visiting EU waters under US flag.