The temporary admission of pleasure boats for private use according to the circular of the Italian Customs and Monopolies Agency
by Berardo Lanci*
The Italian Customs Agency issued Circular No. 8 of 10 April 2025, which provided an opportunity to review the clarifications issued by the financial administration on the temporary admission of yachts for private use and summarise the main rules representing this regime. In particular, 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.
Yachts admitted under the temporary admission procedure may freely sail in EU waters and are totally exempt from customs duties and VAT.
Certain conditions must be met for a yacht for private use to benefit from the temporary admission regime, 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; and (ii) use by persons resident outside the EU, subject to specific cases of exclusion. Moreover, it has been clarified that this regime is applicable 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 a definitive import with payment of customs duties and VAT must be used. Otherwise, a criminal offence of smuggling is committed. The 18 months may also be extended in certain specific cases.
Yachts may also benefit from the temporary admission procedure several times.
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 time limit for temporary admission for a reasonable period. 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 an EU Member State within 12 miles of the coast is, in principle, sufficient 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, helps certify the date of arrival of the vessel in the EU territory for 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 repair or maintenance work. This will be discussed in a forthcoming article.
(Temporary admission – Barchemagazine.com – Excerpted from Barche, July 2025)
