Temporary admission for yacht in non-UE Countries: Read all about temporary importation of non-EU goods
What does Temporary Admission mean and how does it work?
The temporary admission regime applies to all boats flying the flag of a non-EU country, granting them freedom of movement within the customs territory of the Union, with full exemption from customs duties (including VAT and import duties) within EU territorial waters, for a maximum period of 18 months (referred to as the discharge period), after which the boat must be formally imported.
Non-EU yachts under temporary admission must be re-exported without any modifications, except for depreciation resulting from their use.
Temporary Customs Procedure for Yacht
The mere crossing of the border by a non-EU yacht subjects it to the temporary admission regime. Therefore, entering the territorial waters of an EU Member State—defined as within twelve nautical miles from the coast—is, in principle, sufficient to trigger this customs procedure.
The Italian Customs Agency has clarified that this regime may be applied regardless of whether the means of transport is operational or requires maintenance or repair. Consequently, the regime also applies if the pleasure craft is transported overland from a national border to another location within the Union's territory using a different means of transport.
However, the owner of a non-EU yacht may choose not to benefit from the simplified procedure mentioned above and may instead submit a verbal declaration of temporary importation at the customs office of the first port of entry.
As an alternative to the verbal declaration, an arrival statement ("costituto d'arrivo") may be completed. This document is valid for 12 months and can be renewed.
Temporary Admission is granted provided the following conditions are met:
- The yacht must be registered outside the customs territory of the European Union;
- The registration must be in the name of a person (natural or legal) established outside that territory. In cases where the boat is not registered, it must belong to a person established outside the EU customs territory;
- The yacht must be used by individuals residing outside the EU customs territory, except in specific cases of exemption.
At the time of customs clearance, a guarantee must be provided for the customs duties applicable to the goods under temporary importation.
Temporary admission and customs status of goods
Within the European Community, the principle of free movement of goods applies. Therefore, all pleasure craft flying the flag of an EU Member State may freely navigate in European territorial waters, as they are considered Union goods simply by virtue of flying the flag of an EU country and operating within the EU.
In detail:
The customs status of the goods determines what the holder may or may not do within the customs territory, in accordance with the general principle set out in Article 134 of the Union Customs Code, which states that goods are subject to customs supervision for as long as necessary to determine their customs status and may not be removed without the authorization of the customs authorities.
According to the principle of presumption of Union status of goods (Article 153 of the Union Customs Code - UCC), all goods located within the customs territory of the Union are considered to have Union customs status, unless it is established that they are non-Union goods.
The principle of free circulation also applies to non-EU yachts; however, during the period they are under temporary admission, they may not be sold, chartered, leased, transferred, or disposed of without notifying the customs authorities.
The temporary admission procedure is different from the inward processing procedure.
In the nautical sector, it is common for the yacht owner to place a private yacht under the temporary admission regime, while the inward processing regime—used in the case of repairs or modifications—is requested by the shipyard. Once the work on the non-EU yacht is completed, the inward processing regime is concluded, and the subsequent phase of temporary admission once again becomes the responsibility of the yacht owner.
Even a non-EU yacht under the temporary admission regime can undergo repairs and routine maintenance operations aimed at preserving the asset and maintaining its intended use.
Often, to better understand temporary admission and customs status, we are asked:
- CAN I SET UP A NON-EU COMPANY AND REGISTER MY BOAT UNDER A NON-EU FLAG TO AVOID PAYING VAT?
The answer is no.
According to Italian and EU customs regulations, individuals and companies residing within the EU are required to nationalize movable property originating from non-EU countries by paying VAT and any applicable customs duties. They must also apply for the appropriate relief under the temporary admission procedure.
Failure to comply may result in customs smuggling violations, which occur when the maximum period for discharge is exceeded without the non-EU boat having been properly imported into the EU.
- CAN I FLY A NON-EU FLAG ON A BOAT THAT HAS NEVER LEFT EUROPE AND AVOID PAYING VAT?
The answer is yes.
In a very recent ruling, the First Instance Tax Court of Ravenna (judgment no. 264 of July 15, 2024) established that simply flying a non-EU flag on a boat that has never left Europe and previously flew the flag of an EU country does not cause the boat to lose its status as Union goods. The non-EU flagged yacht will retain Union goods status, and therefore, no import VAT is due.
On the other hand, if the yacht had been exported to a non-EU country or had been taken outside European waters (beyond 12 nautical miles from the coast) and then seeks to re-enter EU territory under a non-EU flag, VAT must be paid upon re-entry.
Temporary Admission for Yachts in EU Countries: How can help you?
Arnone & Sicomo Law Firm has a department specialized in maritime and customs law.
Our lawyers handle cases on a daily basis involving the seizure of yachts flying non-EU flags, generally due to violations of customs regulations.
If the Italian authorities have seized your yacht, you riskA being reported for customs smuggling.
We work alongside our criminal law team, aiming to minimize the impact of facing criminal proceedings for the offense of customs smuggling.
Customs regulations are extremely complex and relying on legal professionals specialized in this area can truly make a difference—and is highly recommended.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
