Importing Boats into the UK : Easy !
Look around any marina or boatyard in Britain and you will see a veritable armada of foreign boats afloat or laid up. Assuming they are between 2.5m and 24m, and they were imported in the UK after 1998, they will all have one thing in common, a CE mark. That is to say all these craft have complied to a stringent set of rules and regulations that were introduced in 1998. The idea was not introduced on safety grounds, but more to ensure that all boats of a certain size conform more or less to the same standards. The only exceptions are race boats, home built craft and vessels built for development. While nations outside the EU and EEA can trade among themselves without CE marks, as soon as one of these ‘outsiders’ decide to sell a boat into the UK, they have to get it thoroughly inspected in order to get a CE certificate for the boat issued. Boat builders were naturally apprehensive when the rules were first introduced and assumed it would force prices up. Inspectors armed with wads of paperwork converged on the premises whilst temperatures in workshops, batches of gel-coat, tins of resin and rolls of glassfibre were all put under the microscope. The universal standards were to embrace the entire EU, not just Britain. However, after the initial surge of inspections, boats everywhere were being produced under the new guidelines, and the issuing of CE certificates became a very straight forward procedure. Obviously there are still some issues that appear on the face of it, to be quite farcical, like a friend of ours who imported from the USA an almost new, top of the range Boston Whaler fitted with a large Mercury outboard. Because it had been produced in the US for the US market it had to have a CE certificate even though it complied with the US Coastguards strictest regulations. The owner went to the RYA and asked about getting it certificated and was told it would be in the region of £5000 to carry out the inspection. Thankfully, he was put in touch with a qualified inspector from Bristol who carried out the job for £500. A list of qualified inspectors can be obtained from the internet. L IMPORTING INTO THE UK WORLD OF POWERBOATS JANUARY/FEBRUARY 2010 29 Looking at the lower prices of new and second hand powerboats in the USA, it is very tempting to consider purchasing one from the other side of the ‘big pond’, but there are one or two factors to take into account before parting with cash. Firstly, costs of shipping from the east coast are reasonable, whereas from the west it can be 50% higher. Secondly, when the craft reaches the United Kingdom VAT has to be paid plus duty. And thirdly, as the craft will now be owned by a UK resident, it can’t get away with a visitors certificate that lasts for six months, so a CE certificate is required. If the craft is a well known make i.e. Bayliner, Wellcraft, Hustler etc. there is every chance an inspector will be able to issue a CE mark after inspecting it for a reasonable charge. However, if it’s a rare breed, the costs could be a lot higher. Importing to or from the UK from Europe and Scandinavia is a relatively straight forward exercise as, assuming it was built after 1998, it will already carry a CE mark. Therefore apart from shipping, the only other costs are VAT. If the craft was built before 1998 it will have to undergo an inspection that will add to costs. We referred earlier to a self build project not requiring a CE mark. However, if an owner builds himself a boat he has to keep it for at least five years before he can sell it. If a craft is purchased purely for racing it does not require a CE mark, but if purchased in the US it will still be eligible for VAT and duty. In a bid to reduce some of the costs involved in powerboat racing we have heard potential owners suggest they could import a racing powerboat into the Channel Islands where VAT does not apply, and transport it to the UK for races. Needless to say if they took part in six competitions, it would be more economical to pay the VAT in Britain. While not wishing to frighten off potential British buyers visiting overseas boat shows and boat yards with a view to buying a boat to use in Britain, there is every chance there is a dealer or broker in the UK selling that boat and they will organise the payment of VAT and any duty, so however appealing that bargain might seem, ideally it’s often better to look for your foreign boat in Britain.
Buying a boat in Spain:
WHAT ARE THE ADVANTAGES OF KEEPING A BOAT IN SPAIN? Keeping a yacht in Spain has a number of immediate advantages most of which revolve around the weather. Having a season almost 50% longer than the UK in non tidal waters together with affordable flights taking in the region of two and a half hours allows for maximum use of a yacht. This in turn means that the service industry, especially for larger yachts, is fully geared to ensuring all services are at hand to offer a high quality service. The gathering together of services is a symbiotic relationship in that the best restaurants, designer shops, delicatessens have followed the yachtsman and more occasional services such as yacht sales, crew recruitment and guardiennage are always nearby to ensure the yacht owner is allowed to indulge at his desired level or set sail to quiet anchorages in the knowledge he has received the best service available.
ARE THERE DISADVANTAGES? Bureaucracy is a favourite to scare off the potential investor from any country, however yachting has the advantage of being allowed to work within the guidelines of the Flag country as a visitor rather than becoming tangled in the legalese of property ownership under unknown guidelines. That said it must be remembered that as a guest in the host country, laws must be adhered to and insurance, crew employment rights, safety requirements and VAT constraints are among the most important areas where advice should be sought.
ARE THERE ANY TAX ADVANTAGES OR DISADVANTAGES OF BUYING AND KEEPING A BOAT IN SPAIN AS COMPARED TO THE UK? Yacht owners travelling around the EC with a VAT paid yacht will encounter little bureaucracy however it is essential that as much proof of VAT status is maintained on the yacht in original form. Paying VAT on a UK flagged yacht can be done in Spain very easily which proved a popular option when Spain was rated 1.5% less than the UK, a situation which has reversed with the temporary VAT reduction but may revert again soon. VAT exemption is still a worthwhile status on larger yachts and professional advice should be sought to ensure your yacht is managed in such a way as to benefit from this.
IN WHAT WAY DO THE LEGAL ASPECTS OF BUYING A BOAT IN SPAIN DIFFER FROM THOSE OF THE UK? IF THERE ARE CURRENT ISSUES THAT ARE CAUSING PROBLEMS ARE THEY EXPECTED TO BE RESOLVED IN THE NEAR FUTURE? Many yacht purchasers travel to Spain to source yachts among the considerable number based there. Purchasing a yacht should be done with the help of a broker or yacht agent to ensure that the tax status of the yacht is correct and no liens are outstanding. Spain is well catered for in that many UK surveyors and brokers are based there to assist in the smooth transfer of ownership and where necessary reflagging.
ANY OTHER COMMENTS? To sum up a yacht purchaser keeping his yacht abroad should take the same care of purchase as he would when expecting a child. Can I afford it, where will it stay, can I devote the time, who will care for it… Oh yes and a name!
• Thanks to Colin McCraith of Monte Fino Yachts Europe (Palma de Majorca) for providing information on buying a boat from a Spanish perspective.
