Republic of the Marshall Islands (RMI) PYET launch
An innovative new program for dual use of a yacht in the Med, validated by French Customs and PSC Authorities
A new solution for yacht owners is launched to overcome their concerns about full commercial yacht registration for yachts with mainly "private" use.
After nearly two years of hard work along with the Republic of the Marshall Islands (RMI) Registry, WES, the French Customs and the Port State Control Authorities, Rosemont Yacht Services is excited to announce a new dual use innovative solution. Designated as a Yacht Engaged in Trade (YET), this initiative combines private and commercial use without falling foul of existing Flag, Customs and Port State regulations
Rosemont Yacht Services obtained the official authorisation from the French Customs on 13.11.2014 and the new program was officially launched by the RMI Registry during the Monaco Yacht Show this year.
How it works, who is eligible, what are the advantages…read below!
Owners no longer willing to operate their yacht on full commercial basis are seeking a solution which will permit them to use the yacht on a private basis, whilst offering the possibility to charter the yacht out to third parties a few days per year to minimise their annual running costs.
CURRENT YACHT OWNERS CRUISING IN THE MED DILEMMA:
- Either use their yacht on purely private basis without the possibility to charter their yacht to third parties; or
- Charter their yacht to third parties without being able to use their yacht extensively and with the obligation to pay VAT even on their own charters.
Develop a dual-use operation program approved by PSC for yachts commercially compliant on voluntary basis to avoid any detention that shall also take into account EU VAT regulations.
WHAT IS A YET?
- A YET is a private yacht permitted to engage in charter activities for up to 84 days / year;
- Initiative based on EU Customs regulations, approved by PSC Authorities and so far by Monaco & French Customs BUT to be extended to the rest of Europe.
- Non EU owned yachts (having non EU resident Ultimate Beneficial Owners) under Temporary Admission (TA) or EU or non EU owned yachts which are VAT paid;
- Yachts in compliance on voluntary basis with all relevant regulations and requirements that apply to commercial yachts;
- Yachts have undergone a Voluntary Compliance Verification to the standards of the RMI Maritime Regulations and Yacht Code by an Authorised Representative of the Marshall Islands;
- Yacht built to class or classed if over 500GT.
- The RMI is the only flag promoting dual use that has been validated by Port State Control Authorities (Paris MOU) for temporary commercial operation;
- Flexibility of use: private use without losing the option to charter the yacht on an occasional basis (up to 84 days/year) to offset annual running costs (no more dilemma: purely private use without the possibility to charter or charter to third parties without being able to use the yacht extensively and with the obligation to pay VAT even on their own charters) ;
- No risk of requalification in case of extensive private use;
- No need to sign a charter agreement paid at commercial market rates each time owners want to charter their yacht;
- No need to pay VAT on owners use;
- No need to leave EU waters and touch a third country port to allow change of use of the yacht and system not plagued with Tax, VAT issues in comparison to the “switching regimes”;
- Exemption of VAT available on works for non VAT paid yachts (inward processing relief regime).
HOW DOES IT WORK WHEN PRIVATE YACHTS ARE TO CHARTER?
- No VAT exemptions though on supplies and fuel (exemptions on duties could be obtained on request);
- No private use while the yacht is under the “commercial bubble”;
- RMI YET program only available in France and Monaco for the time being but we are working to have it formally extended in Europe. The regime is based on EU regulations and EU Customs Documentation which should be accepted in all EU countries.
The yacht should be placed under Temporary Admission (TA) for 18 months, immediately upon its arrival in EU waters.
When the UBO wants to charter his yacht out to third parties, the following must be undertaken:
- The yacht will need to be placed under TA guaranteed for commercial activity;
- The RMI Registry will need to issue a Temporary YET certificate for the duration of the charter or commercial promotion period;
- An Import Declaration should be filled with the Customs;
- No need to put in place any bank guaranty or guarantee deposit;
- A Charter Broker and Fiscal Representative must be appointed;
- VAT paid on charters;
- The yacht will be placed into a “commercial bubble” which will last until the UBO wants to use the yacht again for purely private use. At that time the yacht will need to be removed from that regime;
- The UBO could decide to place the yacht under this “commercial bubble” for a specific period during which the yacht will be promoted for charter, or each time there is a charter. There will be a formality to enter and to exit from this specific regime;
- No private use will be allowed while the yacht is placed under the “commercial bubble”;
- The placement of the yacht under this specific regime will suspend the 18 months clock.
For any further information on YET registration please contact:
Yacht Ownership & Administration Department Manager
Rosemont Yacht Services
Les Villas del Sole
47-49, boulevard d’Italie
Tel. +377 97 97 21 41
Fax. +377 97 97 21 51
Web : www.rosemont-yacht.com
Yachting Services provided by Monoeci Management SAM
A Rosemont International