Following the official authorization of the French Customs on 13rd of November 2014, an innovative new program for dual use of a yacht in the Med, designated as Yacht Engaged in Trade (YET), was launched.
Traditionally yachts operating privately have had to maintain a privately categorized registration whilst commercial charter yachts have had to maintain a fully commercial registration. The new program mainly provides the option of engaging in private and commercial use of the yacht without falling foul of existing Flag, Customs and Port State regulations. In effect, under the new registration scheme the yacht owners will have the opportunity to operate their yachts on a private basis as well as on a commercial basis, whilst they will have the option to charter out the yacht to third parties a few days per year in European Union waters.
What is a YET?
- A YET is a private yacht with intent to request a Temporary Certificate of Registry for Yacht Engaged in Trade
- A YET is a yacht authorized to charter for up to 84 days per calendar year in European Union (EU) waters
- Currently obtained the approval of PSC Authorities, Monaco and French Customs with the rest of the Europe to follow
- The yacht must be 24 m or more in Load Line length
- The yacht must be compliant with all relevant regulations and requirements that apply to RMI commercial yachts as outlined in the RMI Yacht Code
- The yacht must carry no more than 12 passengers while engaged in trade
- The yacht must be either in possession of Valued Added Tax (VAT) paid certificate; or where the yacht is of non-EU ownership (ultimately beneficially owned by a non-EU resident) must enter the EU under Temporary Admission relief from VAT allowing the yacht to enter EU waters for up to 18 months.
Procedure to charter out a private yacht:
- The registered owner of the yacht must submit a Declaration of Private Use with the Intent to Request a Temporary Certificate of Registry for a Yacht Engaged in Trade to the RMI Maritime Administrator
- The yacht must successfully undergo an initial Compliance Verification by an Authorized Representative of the Marshall Islands confirming compliance with the requirements of the RMI Maritime Regulations, Yacht Code and any International Conventions that apply to RMI commercial yachts
- An Import/Export Declaration form should be filled with the Customs
- The VAT paid certificate (where the VAT is paid) or the EU Customs Documentation stating the period for which the yacht will be engaged in trade while under Temporary Admission (where the yacht is not VAT paid) have to be submitted to the Administrator
- The Administrator will issue a Temporary COR YET reflecting the dates outlined on the EU Customs documentation for the period the yacht is chartered.
Should you require further information with regards to the above, please Contact Us .