During the last twelve months the Customs authorities of the EU have concentrated their activities on yachts and yacht owners. There have been several instances of yachts being detained. Not necessarily because they or their owners have behaved illegally. In several cases that we are aware of perfectly legal schemes were brought into question, primarily because the owners or their advisors had not followed the detailed rules of the scheme or had deliberately taken short cuts.

Schemes such as the Malta Yacht Leasing/VAT Mitigation scheme or the Isle of Man Deferment Scheme are perfectly legal but they must be put into effect “by the book”. The Malta Scheme has just been given an MOT test and been upgraded to take into account a number of changes, particularly with regard to the Italian government’s reaction to their own scheme.

We continue to come across yachts that have breached the Temporary Importation rules. Owners and their captains must take greater responsibility for ensuring that re-export deadlines are met.