HM CUSTOMS AND EXCISE

http://www.hmce.gov.uk
 

1. Sailing your pleasure craft to and from the United Kingdom

3. Leaving the United Kingdom

3.3 Having notified Customs, what should I do if my voyage is delayed or abandoned?

If there are any delays to your departure or if any details on the notification change, you should advise Customs by writing to the Customs location where the original C1331 was sent. You should also inform Customs of abandoned voyages by endorsing Part (ii) of the C1331 with the words ‘voyage abandoned’.

3.4 Can I take duty free stores on board?

You may be eligible to take on board duty-free stores if you are going to a port south of the port of Brest or north of the north bank of the river Eider in Denmark. You will not be allowed to take duty-free stores to the Irish Republic or the Channel Islands.

You must apply in advance and will have to meet certain conditions. Whilst the goods are duty-free, if used on a private voyage, they will still be liable for VAT. You can find further information in Notice 69A Duty free ships’ stores.

3.5 What should I do if I wish to load duty free stores?

You should complete Form C945 and take or fax it to the local Customs office if you wish to load duty free stores. If you have difficulty locating the nearest Customs office, you should contact our National Advice Service for assistance. They will be able to give further details on how to take on duty-free stores (or to re-ship previously landed surplus duty-free stores)and of the conditions you will need to meet.

If you are shipping stores:

•  under bond; or

•  on which you are claiming repayment of customs charges,

they will normally be placed under customs seal on board. You must not use them in UK waters without paying customs charges and will be liable to pay if you interrupt or abandon the voyage.

3.6 Can I carry any cargo?

If you carry any goods for industrial or commercial purposes, your vessel becomes a commercial vessel and is no longer a pleasure craft. Notice 69 Report and Clearance by Ships’ Masters explains the customs requirements for commercial vessels.

3.7 Are there any immigration requirements when I depart from the UK?

You do not need to notify an Immigration officer of any voyage where the first port of call overseas is expected to be in the Irish Republic, Channel Islands or elsewhere in the EU.

When the first port of call will be outside the EU, you need notify an Immigration officer only if you are carrying someone who has no right of abode in the EU. In these circumstances you must tell the Immigration officer in advance. In a few locations, the Customs officer also acts as an Immigration official.

More details can be obtained from the Customs offices listed in Section 7 or from our National Advice Service.

3.8 Are there any additional requirements if I am transferring my residence to a place outside the EU?

No. If you are leaving with your boat because you are transferring your residence from the UK to a place outside the EU, there are no additional customs requirements unless the boat is new.

If the boat is new, please see Section 6.

4. Arriving in the United Kingdom

4.1 Do I need to fly the yellow ‘Q’ flag?

If you are arriving directly from another EU Member State you do not need to fly the ‘Q’ flag.

If you are arriving from outside the EU, you must fly the ‘Q’ flag where it can readily be seen as soon as you enter UK waters (the 12 mile limit). Do not take down the flag until you have finished reporting to Customs as described in paragraph 4.2. Failure to comply will make you liable to a penalty.

4.2 Do I need to notify Customs of my arrival?

Whether you need to notify your arrival to customs depends upon where your last port of call was. If you are arriving directly from an EU Member State, you need only contact Customs if you have goods to declare. However, there may still be immigration requirements that need to be met and you should refer to paragraph 4.9 for details.

When arriving direct from a country outside the EU (the Channel Islands are regarded as outside the EU for this purpose), you must telephone the National Yachtline on 0845 723 1110. You will need to inform them if any of the following apply:

•  VAT has not been paid on the vessel;

•  you have any goods in excess of the travellers’ allowance detailed in Notice 1

A Customs guide for travellers entering the UK;

•  you have on board goods which are to be treated as duty free stores;

•  you have any prohibited or restricted goods;

•  there is any notifiable illness on board;

•  there are any people on board who need immigration clearance; or

• any repairs or modifications, other than running repairs, which have been carried out since the vessel last left the EU.

You will need to comply with any further instructions that the Customs officer gives you.

You may also be asked to complete parts (i), (iii) and the declaration box on Form C1331. If you already have a Form C1331 part (ii) on board from when you left the UK, you should complete part (iii) amending details of persons on board if necessary and sign and date the form again. You can get Form C1331 from most local yacht clubs and marinas, Customs offices listed in Section 7, or from the HM Customs and Excise Website at www.hmce.gov.uk.

You should place the completed form in the marina’s custom post box or post it to the local Customs office.

Except for contacting Customs as above, you must not land goods or persons or transfer them to another vessel until a Customs officer says that you may do so.

4.3 What goods must I declare?

If you have arrived from another EU Member State, you must declare the following goods:

•  any animals or birds (see paragraph 4.10);

•  any prohibited and restricted goods (including certain foods see paragraph 4.8);

•  any duty free stores (see Notice 69A); and

•  the boat itself, if it is liable to VAT (see paragraph 4.4).

If you have come directly from a country outside the EU – and the Channel Islands are regarded as outside the EU for this purpose – you must declare:

•  any of the goods listed in the four categories above;

•  any goods which, as a visitor, you intend to leave behind when you depart from the UK or another EU Member State;

• any tobacco goods, alcoholic drinks, perfumes and toilet water in excess of the duty-free allowances set out in Notice 1 A Customs guide for travellers entering the UK;
  and

• if you are a returning resident of the UK or another EU Member State, any other goods you have acquired on your trip, where the total value of these goods exceeds £145 as described in Notice 1. This includes any equipment, which you may have bought and had fitted to the boat outside the EU.

If anyone on board fails to declare goods in any of these categories, that person may be liable to a fine and the goods may be seized.

4.4 Will I have to pay customs duties on my pleasure craft?

Vessels under 12 metres long are potentially liable to customs duty when imported from outside the EU, and all vessels ‘designed or adapted for recreation or pleasure use’ are liable to VAT.

If you are temporarily importing your boat from outside the EU, it may qualify for relief from these charges as described in Section 5.

If you are permanently importing the boat on transfer of your residence from outside the EU, it may qualify for the relief described in paragraph 4.11.

A boat previously VAT paid and exported from the EU may also qualify for relief on return if:

• imported normally within 3 years of its export from the EU;

• imported by the person who exported it from the EU; and

• it has undergone no more than running repairs outside the EU that did not increase its value.

If, after reading this notice, you are still in doubt about whether customs charges are due in your case, you should contact our National Advice Service.

4.5 What are the duty free allowances from outside the EU?

If you are 17 years of age or more and you have arrived from outside the EU by pleasure craft, your duty free entitlement is the custom allowance for travellers to the UK as shown in Notice 1 A Customs guide for travellers entering the UK.

Persons under 17 are not allowed duty free allowances for tobacco products and alcoholic drinks but may bring in other goods as shown in Notice 1.

Any goods over the allowance may be:

•  released on payment of duty; or

• placed under seal on board your vessel in a compartment that is capable of being sealed until you leave the UK.

4.6 What are the allowances within the EU?

If you arrive in the UK by pleasure craft directly from the EU, you will be allowed to bring back as much EU duty paid goods, including tobacco and alcohol as you like, as long as it is for your own use. This includes bringing it back for your own consumption and bringing back gifts for family and friends.

You cannot bring back goods for commercial purposes, which includes bringing back goods for payment, even payment in kind. Goods cannot be brought back for family and friends if they are paying you, giving you cost price, or paying some or all of your travel costs. You cannot bring goods back for re-sale.

If you bring back large quantities of alcohol or tobacco goods, you may be asked some basic questions about your trip and purchases and the purpose for which you hold the goods. This particularly applies if you have with you more than the following amounts:

•  3200 cigarettes;

•  400 cigarillos;

•  200 cigars;

•  3 kg of smoking tobacco;

•  110 litres of beer;

•  10 litres of spirits;

•  90 litres of wine;

•  20 litres of fortified wine (such as port or sherry).

4.7 What are prohibited and restricted goods?

The importation, possession or use of certain goods in the UK is either prohibited or restricted. Some examples are given on the reverse of Form C1331 part (ii) and you can obtain details from Notice 1 A Customs guide for travellers entering the UK. If you know you have, or think that you may have, such goods on board you must contact us immediately and comply with any instructions our officer may give. Failure to declare such goods may result in the goods being seized and the person concerned may be prosecuted which may make them liable to a heavy fine.

If goods are smuggled the vessel itself may be seized and the persons concerned liable to a heavy fine and/or a prison sentence following prosecution.

4.8 Importing foodstuffs from outside the EU into the United Kingdom

Similarly a range of plants or plant products such potatoes, oranges and apples are also subject to strict border controls. For further information you should contact DEFRA. The telephone numbers are:

•  Meat and animal products – 020 7904 6501; and

•  Fruit and vegetables – 01904 455191/2/5.

4.9 Are there any immigration requirements when I arrive in the UK?

Anyone on board who is not an EU national must get an Immigration officer’s permission to enter the UK from a place other than the Isle of Man, the Irish Republic or the Channel Islands. As the person responsible, you must make sure that they do.

If there is anyone on board requiring immigration clearance, they will need to contact the nearest Immigration office by telephone to arrange clearance. The Customs officer to whom you report your arrival to will be able to advise on this.

4.10 Can I bring any animals or birds into the United Kingdom?

The UK Pet Passport Scheme does not apply to dogs or cats landed from private vessels, and is only intended to include animals being imported via certain commercial sea or air routes.

Dogs, cats and other rabies susceptible animals, for example rabbits, mice and rats, must not be landed unless you have a British import (rabies) licence. The animal/s will also be required to undergo a period of quarantine in approved premises.

Birds, including family pets will also require a British health import licence before being allowed into the UK.

You must tell our officer on your arrival of any animal or bird, which are kept on board the vessel.

The Department of the Environment, Food and Rural Affairs (DEFRA) website www.defra.gov.uk explains the regulations and quarantine requirements.

Animals and birds bought to the UK without a licence must always be kept in an enclosed part of the vessel below deck. Do not let them come into contact with any other animals. Never let them come ashore without the authority of the appropriate agriculture (DEFRA) officials.

However, as the Channel Islands and the Irish Republic are currently free of rabies, there are no restrictions on animals that are subject of rabies controls being imported from these places.

4.11 Are there any additional requirements if I am transferring my residence to a place in the EU?

If you are moving your normal home from a non-EU country to an EU country, including the UK, you may import your vessel free of customs duty and VAT providing you:

• have lived outside the EU for a continuous period of at least 12 months; and

•  have possessed and used the vessel outside the EU for at least 6 months prior to importation; and

•  did not get the vessel under a duty/tax free scheme (see below); and

•  declare the vessel to our officer; and

•  will keep the vessel in the EU for private use; and

•  do not sell, lend, hire out or otherwise dispose of the vessel in the EU within 12 months of importation unless you notify us first and pay duty and VAT on disposal. If you purchased the vessel under a duty/tax free scheme in the vessel’s country of origin or departure, relief from customs duty and VAT will only apply if at the time you got the vessel you were:

•  a diplomat;

•  a member of an officially recognised international organisation;

•  a member of NATO or UK forces, or the civilian staff accompanying them, or the spouse of such a member; or

•  you can prove that duty and tax has subsequently been paid and has not been, nor will be, refunded.

Our officer will give you the form we require on your arrival. You should be ready to produce the vessel and all evidence of use and possession outside the EU such as registration papers and berthing fees. The rules regarding your ‘normal home ’ are complex. If you are in any doubt, please contact our National Advice Service or any of the offices listed in Section 7.

If you do not arrive with the vessel yourself, we will not normally release it until you arrive. However, we may release it for storage under certain conditions. You should contact us for details of these arrangements.

If you import a vessel under temporary importation conditions (see Section 5) and then decide to move your normal home to the UK, you may still apply for Transfer of Residence relief.

5. Temporarily Imported Yachts

5.1 Can I claim relief from customs duty and VAT?

Community law allows pleasure craft from outside the EU to be temporarily imported into EU waters free of duty and VAT, subject to certain conditions. These conditions vary according to whether the pleasure craft has been imported to the EU for private or for commercial purposes and requires that the vessel be:

•  registered outside the EU in the name of a person established outside the EU or if not registered outside, is owned by a person established outside the EU; or

•  temporarily registered in the EU with a view to re-exportation in the name of a person established outside the EU.

For further details see Notice 308 Temporary Importation – means of transport.

5.2 What are the conditions if the pleasure craft is for private use?

Temporary Importation relief allows private use of a vessel by a person established outside the EU whilst they remain in the EU for a period up to 18 months. The vessel must not be lent, hired, chartered or sold whilst in the EU. If that person wishes to leave the EU temporarily but keep the vessel in the EU until their return, they will need to get prior authorisation from Customs and comply with any additional conditions that may be imposed.

Private use by a person established within the EU may only be permitted as follows:

 

5.3 Can a temporary imported vessel be use commercially?

Temporary Importation relief allows commercial use of a vessel by a person established outside the EU for the purposes of conveying people or goods for payment or as part of the normal commercial activities of a business used exclusively for transport, which begins or ends outside the EU.

Commercial use by a person established within the EU may only be permitted as follows:

 If the vessel does not comply with the requirements or uses identified above, total relief may still be available if the vessel:

•  export the vessel from the Community within:

• - six months of the date of delivery in the case of private persons who are not EU residents; or
  - two months of the date of delivery in the case of eligible EU residents; and

•  comply with the guidance given in the VAT Notice 703/3.

Suppliers, or the persons acting on their behalf, must comply with the guidance given in the seller’s VAT Notice 703/2 Sailaway Boats supplied for export outside the EC. In all cases, Customs require prior notice of departure.

6.2 Do I have to pay VAT on a vessel to be kept in the EU?

Yes, if you are buying a new pleasure craft in the EU and intend to keep it in the EU, you will have to pay VAT on the purchase price. If you are keeping the vessel in the UK, the VAT due will be payable in the UK. If you buy the vessel in one Member State but intend to keep the vessel in another Member State, you should consult VAT Notice 728 Motor vehicles, boats, aircraft: intra-EC movements by persons not registrable for VAT which covers this in more detail.

6.3 What documents will be required to provide proof of the VAT status on a used vessel?

EU residents should only use a vessel in the Community if it is VAT paid or ‘deemed’ VAT paid. Documentary evidence supporting this should be carried at all times as you may be asked by customs officials in other Member States to provide evidence of your vessel’s VAT status. Documentary evidence might include:

•  original invoice or receipt;

•  evidence that VAT was paid at importation; and/or

•  invoices for materials used in the construction of a ‘Home-Built’ vessel.

A registration document on its own does not prove the VAT status of the vessel, as there is no link in the UK between the registry of the vessel and the payment of VAT. If you have difficulty in providing the information, you should contact our National Advice Service.

Certain vessels that were in use as private pleasure craft prior to 1 January 1985 and were in the EU on 31 December 1992, may be deemed VAT paid under the Single Market transitional arrangements. As Austria, Finland and Sweden joined the EU later, the relevant dates for vessels in these countries are ‘in use’ before 1 January 1987 and moored in EU on 31 December 1994.

The following documents are useful to prove the age and location of the vessel:

If you are unable to provide any of the above, whilst cruising within the EU you should carry a Bill of Sale (between two private individuals in the UK). Whilst this is not conclusive proof that VAT has been paid, it does indicate that tax status is the responsibility of UK Customs.

It is also advisable to contact the relevant authorities in the Member State, or their Embassy in the UK, to confirm what documentation will be required in advance of your voyage.

When buying a used pleasure craft from any commercial organisation in the EU, you should ensure that the invoice shows separately any VAT, which that organisation becomes liable to pay to its VAT collection authority as a result of selling the pleasure craft to you. If the invoice does not show VAT separately you may have difficulty in substantiating a claim that no further VAT is due. If you are buying from a business or an individual in the EU with no liability to account for VAT, you should obtain evidence that VAT, if it had ever been due in the EU, has been accounted for.

6.4 Can a vessel lose its VAT paid status?

VAT is due on the importation of any vessel from outside the EU. However, there are provisions for this VAT to be relieved when an EU VAT paid vessel returns to the EU. This provision is only appropriate if the person who exported the vessel undertakes the importation. If an EU VAT paid vessel leaves the EU, and whilst outside the EU is sold, the new owner will, unless eligible for one of the reliefs described in this Notice, be liable to pay VAT if the vessel is brought back into the EU.

Section 7 dealing with the location, address and telephone details for the various Customs and Excise offices in the UK have not be included but may be obtained from the following web site: http://www.hmce.gov.uk

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