As of the 26 June 2018, superyachts from the US that are being imported into European Union will be required to pay and additional 25 per cent customs duty in addition to the 22 per cent Italian VAT that all yachts being imported into Italy are already required to pay. The European Commission has implemented Regulation (EU) 2018/724, amended with (EU) 2018/886, as a direct response to the US’s changes in trade policy, which has seen the US implement safeguarding measures in the form of a tariff increase on imports effective as of 23 March 2018 with an unlimited duration.
“The European Commission retains that the measures alter the equilibrium of the concession and obligations laid down by the World Trade Organisation,” explains Ezio Vannucci of Moores Rowland Partners. “The US’s new trade policy limits importations into the US for the sole purpose of protecting US industries. In the same way, the Commission states that these safeguarding measures will have a negative economic impact on EU industry because they risk limiting the exports of some products from the EU to the US.”
In response, the Commission has decided to impose additional customs duties ad valorem of 25 per cent on the importation of certain products into the EU including yachts and other vessels for pleasure or sports, which identify with the following nomenclature codes:
8903 9110 – Sailings yachts with or without auxiliary engine
8903 9210 – Motor yachts
Both of the above two codes relate to sailing and motor yachts with LOAs of 12m and above and, as such, directly affect the superyacht market.
It is important to point out that the new duties only refer to Yachts and other Vessel for pleasure or sports and not to cruise ships, cargo ships and other vessel for the transport of persons and goods.
“The above measures implemented by the European Commission should not impact second hand superyachts coming from the US that were not originating (built) in the US. However, as yet, there is not an official position from the Italian Customs authorities because of how recently the new regulation has come from the European Commission,” continues Vannucci.
It must be noted, that Regulation (E) 2018/886 does not include US superyacht navigating in EU waters under the temporary admission regime.
If you like reading our Editors' premium quality journalism on SuperyachtNews.com, you'll love their amazing and insightful opinions and comments in The Superyacht Report. If you’ve never read it, click here to request a sample copy - it's 'A Report Worth Reading'. If you know how good it is, click here to subscribe - it's 'A Report Worth Paying For'.