Yachts Engaged in Trade Scheme
The Yachts Engaged in Trade (YET) Scheme has recently been adopted by both the Marshall Islands and Cayman Islands.
The Yacht Engaged in Trade (YET) Scheme has been adopted by the Marshall Islands and more recently the Cayman Islands. It explains the processes to be followed for a private yacht to obtain a YET Compliance Certificate and a Temporary Certificate of Registry for YET (Temporary COR YET) authorising the yacht to charter for up to 84 days per calendar year in EU waters (currently limited to France, Monaco, and Croatia).
This Guideline applies to Private registered yachts of 24m or over that seek to charter in EU waters, provided that they comply fully with the requirements for commercial yachts of the relevant Large Yacht Codes (LYC), as well as all other applicable national and international requirements. Compliance with the LYC requires all YETs to be fully commercially compliant at all times, whether engaged in trade or not. This also includes full commercial compliance with all applicable international conventions. This also means that the yacht cannot carry more than 12 passengers while engaged in trade.
The registered owner of the yacht must submit a Declaration of Private Use with the Intent to request a COR YET to their Administration. Then if the yacht is not already operating to Commercial Standards it must successfully undergo an initial Flag Compliance Verification, then ongoing Annual verifications. The Administration fees can vary greatly depending on size of vessel and level of Compliance already in place. EU customs formalities must be addressed by the Importer/Exporter. To achieve this the yacht must either be in possession of Valued Added Tax (VAT) paid certificate; or enter the EU under Temporary Admission in accordance with EU customs regulations, which allows the yacht to enter EU waters for up to 18 months.
A Customs Broker will be required to carry out the appropriate customs formalities on behalf of an Importer/Exporter. This includes the placement of the yacht under Temporary Admission for commercial activity and for the issuance of relevant import/export forms to provide clearance for the yacht during the charter period. This can expect to cost up to 7000€ and take up to 2 weeks. The Administrator will issue a Temporary COR YET reflecting the dates outlined on the EU Customs documentation for the period the yacht is chartered provided all the relevant criteria are met and the associated procedures are successfully completed. A YET must not be used by the beneficial owner during the period of validity of the Temporary COR YET.
The yacht cannot claim any VAT exemptions whilst under the YET scheme. The yacht must also maintain a valid YETCC by complying at all times with the relevant LYC. This includes maintaining on board the yacht the original Acknowledgement From Master and carrying on board the Temporary COR YET. While operating under the Temporary YET COR, all other Certificates of Registry are invalid for the period stated on the Temporary YET COR and the yacht should expect to be considered by EU PSC authorities as a commercial yacht.
For further information, please contact [email protected]