What does exiting the EU mean for yachts under temporary importation rules

[Montanan]

Originally Posted by CatNewBee

Just leave the EU (check out on an entry port) to a non-EU country (check there in for the stamps in your documents and stay a while), and when re-entering the EU again via an entry port you'll get another 6-18 months temporary permit...

CatNewBee's advise is exactly right. Leaving the EU is exactly that, leaving the EU. Be sure to obtain official documentation that you have checked out of an EU country before the 18 month period lapses and then obtain documentation that you have entered a non-EU country, thence you are free to return to the EU with a new 18 month temporary import relief from VAT [and of tariff duties].

Forget the whole selfie scheme, that is B.S. You have to enter a non-EU country to be able to have come from a non-EU country. Sailing out into international waters does not provide the requisite situs for establishing VAT relief and / or import tariff relief. International waters is not considered a nation state from which you traveled hence it does not establish a nation state from which the boat [or a good] has been imported from. The VAT relief is derived from importing the good [e.g., your boat], to be imported into the EU, it must have been first exported from a non-EU country. So the keyword is go find a non-EU port from which you can exit with your boat, so as to export it from that non-EU country and thence upon entry into a EU country port you will have in fact imported the boat for which import VAT relief can be granted for a temporary period of time.

Note that while the UK has left the EU it remains in a transition period whereby the EU VAT rules still apply so going to the UK does not reset the temporary import relief clock.

Although Gibraltar is outside the EU VAT customs area, it was also a part of the EU and complied with the 18 month Temporary Importation (TI) clock for non-EU boats starts on entry to the port. Gibraltar should therefore not be relied on to re-set the TI clock. Don't confuse a location being a part of the EU VAT customs area with being a part of the EU and abiding by the 18 month TI clock regime.

There is a bit of confusion entered into this thread regarding Schengen Countries and their agreement; Schengen Agreement only applies to cross border travel of persons and the need for visas, it does not apply to the boat and VAT on goods.

[bobgarrett]

Originally Posted by jhe

I have a related question regarding the Channel Islands. I asked a customs agent in France whether going to the Channel Islands will mean existing the EU Customs Zone for purposes of triggering a new 18 month TA period. The answer was NO. As I read the UK materials, the UK seems to treat the Channel Islands outside the zone so a visit there would trigger a new period. Is there a difference in interpretation between the French and UK customs authorities or am I misreading these materials?

Was it clear to him whether you meant before of after 31st Dec 2020?

[jhe]

Yes, it was clear. He said that the CIs are part of the EU customs area and you can only get relief from the 18 months period by going to a port outside the EU customs area.

[nwdiver]

I thought the selfie had to be with his friend the €200 note.....

[Montanan]

Originally Posted by jhe

I have a related question regarding the Channel Islands. I asked a customs agent in France whether going to the Channel Islands will mean existing the EU Customs Zone for purposes of triggering a new 18 month TA period. The answer was NO. As I read the UK materials, the UK seems to treat the Channel Islands outside the zone so a visit there would trigger a new period. Is there a difference in interpretation between the French and UK customs authorities or am I misreading these materials?

The Channel Islands are muddy waters as to the EU. There is the UK perspective and then there are the EU country perspectives and it is damn confusing because of their part in the EU as to customs duty / tariffs and free intra-EU trade, and their part out status as to not being included in the EU VAT system.

The UK's perspective is linked and copied below. The EU perspectives could be the opposite, or at least challenged by an EU official rightly or wrongly.

https://www.gov.uk/government/public...e-uk#section41

5.5 How to claim relief
Subject to the conditions outlined in paragraphs 5.1 to 5.4, no formal application for authorisation or customs declaration to claim relief will be required when you arrive direct from a country outside the UK or EU (the Channel Islands are regarded as outside the EU for this purpose). When you enter UK territorial waters (the 12 mile limit) without making a customs declaration (other than the mandatory arrival report as per the note) this will be treated as:

a declaration that you and the vessel that is being imported are eligible for relief
an application for Temporary Admission (TA) authorisation
If the vessel arrives in an EU member state, the customs authorities in that member state should be contacted to claim relief. If the vessel is subsequently used in the UK no further declaration will be required but you must be able to provide details, if asked, of when and where the vessel first arrived in the EU.

Use in the UK and within the EU
Although no formal declaration for relief is required, if you use the vessel in the UK before using it in EU member states, you may wish to make an oral declaration and submit an inventory document at the time of import to apply for authorisation and claim relief. This is not mandatory but can help to provide evidence to customs authorities in EU member states that relief under TA was initially claimed in the UK. For further details, please read Notice 308: Temporary Admission - temporarily importing non-EU means of transport for private or commercial transport use.

Although no formal declaration to claim Temporary Admission is required, if the pleasure craft is arriving in the UK direct from a country outside the EU it will be necessary to:

fly the ‘Q’ flag and phone the National Yachtline to notify the arrival
complete a C1331 form
report any prohibited or restricted goods, any duty free stores and any persons that require immigration clearance
For further details, please read paragraphs 3.1 to 3.3.

5.6 Extending the period of visit, or deciding to live permanently in the UK or EU
The periods set out in paragraphs 5.3 and 5.4 can be extended in exceptional circumstances within reasonable limits, for example to carry out running repairs necessary before the vessel can be used to leave the UK or EU. If an extension is needed, submit a written request to the Temporary Admission Team at the address in paragraph 5.9 and explain why it is needed.

If you decide to live permanently in the UK or EU, you should write to the Temporary Admission Team to advise them and to give details of the vessel. The vessel will no longer be entitled to relief under Temporary Admission but it may qualify for an alternative relief for transfer of residence, please read paragraph 3.15 for further details.

If at any time during a stay in the UK a vessel no longer qualifies for relief, the Temporary Admission Team must be contacted to advise them of the change in circumstances. It will then be necessary to complete a diversion entry on form C88 to pay the taxes/duties due; Notice 308: Temporary Admission - temporarily importing non-EU means of transport for private or commercial transport use explains how to complete the declaration.

5.7 Record keeping
It will be necessary for you to provide the following if requested:

proof that the vessel is registered outside the customs territory of the UK and EU in the name of a non-UK or non-EU person
if the vessel is not registered, proof that it is owned by a non-UK or non-EU person
a passport/identity card for the person claiming relief to confirm their normal place of residence
if a UK or EU resident, details to support the claim to relief referred to in the table in paragraph 5.4
when and where the vessel arrived in the UK or EU
when and where it leaves the UK or EU or is otherwise disposed of
These records should be kept for 4 years after discharging relief.

https://en.wikipedia.org/wiki/Channel_Islands

The UK Parliament has power to legislate for the Islands, but Acts of Parliament do not extend to the Islands automatically. Usually, the Act gives power to extend the application of the Act to the Islands by an Order in Council, after consultation. For the most part the Islands legislate for themselves.[31] Each island has its own primary legislature, known as the States of Guernsey and the States of Jersey, with Chief Pleas in Sark and the States of Alderney – the Channel Islands are not represented in the UK Parliament. Laws passed by the States are given royal assent by The Queen in Council, to whom the islands' governments are responsible.[32]

The islands, are not part of the European Union and, thus, were not a party to the 2016 referendum on the EU membership, but were part of the Customs Territory of the European Community by virtue of Protocol Three to the Treaty on European Union. In September 2010, a Channel Islands Brussels Office was set up jointly by the two Bailiwicks to develop the Channel Islands' influence with the EU, to advise the Channel Islands' governments on European matters, and to promote economic links with the EU

https://www.gov.je/Government/Depart...ipeuanduk.aspx
Jersey and the European Union
Jersey has a special relationship with the European Union (EU). In simple terms, the Island is treated as part of the European Union for the purposes of free trade in goods, but otherwise is not a part of the EU. The formal relationship is set out in Protocol 3 of the UK's 1972 Accession Treaty and confirmed in what is now Article 355 (5) (c) of the EU Treaties.



The formal relationship between Jersey and indeed the Channel Islands and
the EU is enshrined in Protocol 3 of the UK’s 1972 Accession Treaty (see
Annex 1), and is confirmed in what is now Article 355 (5) (c) of the EU Treaties.
Under Protocol 3, the Islands are part of the Customs Union and are essentially
within the Single Market for the purposes of trade in goods, but are “third
countries” (i.e. outside the EU) in all other respects. Jersey and Guernsey are outside the EU VAT area.

[bobgarrett]

Originally Posted by jhe

Yes, it was clear. He said that the CIs are part of the EU customs area and you can only get relief from the 18 months period by going to a port outside the EU customs area.

That is true until the end of this year. Beyond that this will probably be incorrect.

[Michael Cobbe]

for up to 18 months under the Temporary Importation rules


When we were sailing in the EU the maximum we could stay was six months, if you stayed longer you had to pay a tax.

[jhe]

Thanks everyone for your thoughts. I looked back at the FAQ on the EU website. The second paragraph says: “reexport from the customs territory is the usual way of ending or "discharging" the temporary admission procedure.” See attached. This seems to say that you need to get out of the EU customs area to reset the clock - as distinguished from the VAT area. According to the attached Wikipedia article, the UK including the Isle of Man and the Channel Islands remain part of the EU Customs territory until the end of this year. Therefore, the FAQ seem consistent with the advice I received from the French customs agent: going to the Channel Islands doesn't reset the clock. The UK seems to take a different position but if you're going to anywhere in the EU, it seems risky to me to take a the UK position. I also attach a document that shows the status of various territories like the Canary Islands as "in" or "out" of the customs territory. Assuming that my view is correct, the Canary Islands are also all "out" for resetting the 18 months clock. But Faroe Islands, Norway, Marocco, and Cap Verde Islands are "in." See the map in the Wikipedia article. I hope this helps.

[Pete7]

Can't see the attached, do you have a link to it?

Pete

[boatman61]

Originally Posted by Michael Cobbe

for up to 18 months under the Temporary Importation rules


When we were sailing in the EU the maximum we could stay was six months, if you stayed longer you had to pay a tax.

Thats only if you stay in the same country for six months..
Say you arrive in Cartagena in September and decide to winter there, if you have not left by March you are liable for Spanish taxes..
Keep moving on.

[jhe]

https://ec.europa.eu/taxation_custom...ats-faq_en.pdf



https://ec.europa.eu/taxation_custom...s_en#heading_2

https://en.wikipedia.org/wiki/Europe..._Customs_Union

[jhe]

Boatman, it's 18 months, not 6 months. See FAQ I just posted.

[boatman61]

Originally Posted by jhe

Boatman, it's 18 months, not 6 months. See FAQ I just posted.

I know what it is.. I was answering someone who stated they were being asked for taxes after 6mths..
Spain for example is quick to jump on you for national taxes after 6mths in the country... as far as they're concerned you then qualify as a resident.
Just storing the boat is something else, your not in the country.

[slug]

Originally Posted by boatman61

Thats only if you stay in the same country for six months..
Say you arrive in Cartagena in September and decide to winter there, if you have not left by March you are liable for Spanish taxes..
Keep moving on.

You are talking about the Spanish matriculation tax

https://www.nauticalegal.com/en/reports/144-the-spanish-matriculation-tax-and-foreign-registered-boats

183 days

I’m not sure how this tax is applied

Check with a specialist

[jhe]

Here is the link to the temporary importation rules as applied in Spain. Customs – Temporary admission declaration. Spanish approach