Temporary Admission Of Yachts For Private Use

The issuing of Circular No. 8 of 10 April 2025 by the Italian Custom Agency provided an opportunity to review the clarifications issued by the financial administration on the subject of the temporary admission of yachts for private use and to summarise the main rules representing this regime.

In particular, by using the temporary admission regime, means of transport - including yachts for private use - registered outside the EU are allowed, under certain conditions, to enter the territory of the European Union, including its territorial waters, with total exemption from customs duties and VAT and without the obligation to submit a customs declaration and provide any security.

In order for the yacht for private use to benefit from the temporary admission regime, certain conditions must be met, such as, (i) registration outside the EU customs territory in the name of a person ( individual or legal entity) established outside that territory, or, in the case of non-registration, ownership by a person established outside that territory; (ii) use by persons resident outside the EU , subject to specific cases of exclusion.

Moreover, it has been clarified that this regime is admitted irrespective of whether the yacht is functioning or in need of maintenance or repair, and thus also if a yacht is transferred by land from one national border to another place within the Union territory, using another transport means.

Furthermore, one of the main factors for temporary admission is the time element of the yacht's stay in Union waters.

In particular, the regime is admitted for a maximum period of 18 months, before the expiry of which the yacht must be transferred out of EU territorial waters. Alternatively, a different customs procedure must be applied or definitive import with payment of customs duties and VAT must be applied for. Otherwise, a criminal offence of smuggling is caused.

The 18 months period may also be extended in certain specific cases. In particular, following the amendments in 2016, it is provided that, in exceptional circumstances and at the reasoned request, the customs authorities may grant an extension of the duration of the time limit for temporary admission for a reasonable period of time.

Given the relevance of the time element, the date of the beginning of the regime cannot be disregarded. In this respect, entry into the territorial waters of the EU Member State within 12 miles from the coast is, in principle, sufficient on its own to bind the goods to the temporary admission regime. Moreover, the decision to opt for the verbal declaration of entry into the regime, which is made by submitting a special form, is useful to certify the date of arrival of the vessel in the EU territory for the purposes of compliance with the maximum time limits.

Specific provisions are also laid down for the case where, during the temporary admission regime, the yacht is subjected to one of several possible forms of work for repair or maintenance. This will be discussed in a forthcoming article.