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London to Monaco 2021

How to get to Monaco Boat Show 2021 – 8 days – UK -Holland – Belgium – France – Monaco

We will be participating in this fun challenge to raise funds and awareness for the Blue Marine Foundation, a marine conservation charity dedicated to protecting our oceans.

The journey will start in London and through the British countryside to the ferry terminal in Harwich to get us onto the overnight ferry to Holland

From here the ride will take us through Belgium into Northern France via roads made famous by the Spring Classics including sections of the Tour of Flanders. 

After heading South through France the ride enters the French Alps. Amazing views, famous cols and legendary Tour de France roads await.  

Final stop Monaco Boat Show 2021!

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Spanish Charter News

Melilla is a Spanish autonomous city located on the northwest coast of Africa, sharing a border with Morocco. Relaxation of the use and enjoyment rules mean near VAT free chartering in Spain.
Relaxation of the ‘use and enjoyment’ rule makes Melilla an attractive charter departure point in 2021.

Welcome news from Spain’s State Budget Bill for 2021 with reference to the use and enjoyment provision of Article 58 of EU Council Directive 2006/112/EC.

Previously, all charters starting in Spain and sailing into international waters were taxed at Spain’s standard VAT rate of 21%.

This put the Spanish charter market at a disadvantage compared to other EU countries who implemented lower taxation incentives.

In accordance with the Directive, charters starting outside the VAT area and entering into community waters could also be taxed and Spain implemented national legislation to apply VAT to charters than began outside the VAT area on the segment of the journey taking place in Spanish waters.

This has now been amended in the budget statement to exclude the application of the rule to the Spanish special territories of Ceuta and Melilla (outside the VAT Area, EU Customs Territory and Excise Duties Area)  and the Canary Islands (outside the VAT Area, but within the EU Customs Territory and Excise Duties Area) from being subject to Spanish VAT where the charterer embarks in one of these ports.

Local taxation would still apply but Melilla, in particular, is embracing the news and using the opportunity to encourage superyachts to start charters there. Using its autonomous powers, it has further reduced the rate for charter operations from 4% to 0.5%, the lowest rate permitted under its own Production, Services and Importation Tax (IPSI) regulations.

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Croatia News

The Ministry of Maritime Affairs, Transport & Infrastructure of the Republic of Croatia is to exclude all non EU flagged vessels up to 24m from operating charter vessels in their waters.

We are just receiving news that the decision to exclude non EU flagged vessels is to take immediate effect. We anticipated a number of challenges post Brexit for UK flagged vessels and we are ready to assist those who may be personally affected.

This of course has extended implications for coding examiners, the Maritime and Coastguard Agency (MCA) and British flag and all UK Certifying Authorities and we are following closely to see how the UK government responds and if any other EU countries decide to follow suit.

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Transport Malta Commercial Yacht Code 2020

Existing commercial yachts already certified in accordance to the CYC 2015, shall comply with the requirements of the CYC 2020 by not later than the yacht’s first periodical survey carried out after the 1st June 2021. The Directorate and the Code itself provide for special consideration to the phasing-in of new/optimised applicable requirements on existing yachts.

The Commercial Yacht Code 2020 launched by Merchant Shipping Directorate on 24th November 2020.
This Code will replace the Commercial Yacht Code of 2015 and shall become effective as of the 1st of January 2021 for all commercial yachts.

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Cyber Security News

The International Maritime Organization IMO has recognized the importance of cyber security and calls on shipping companies to protect themselves against cyber risks (IMO resolution MSC.428(98)).
From January 1st 2021 (and no later than the first annual verification of the company’s Document of Compliance), IMO in Resolution MSC.428(98) requires that the vessels’ risk assessment in relation to the ISM Code also includes an assessment of the cyber risks.

In order to be compliant with MSC.428(98), vessels must identify vessel cyber security objectives, make an inventory of systems and software and execute a cyber risk assessment, which involves identifying target
on-board systems, analysing the likelihood and consequence of a system compromise, determining the initial risk level of each system and suggesting measures and calculating residual risk.

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Miller Marine & INSB Class

Miller Marine is delighted to be appointed by Independent classification society and certification organisation, INSB Class.

INSB Class is recognized as a Classification Society by an extensive number of Governments (Flag States). Authorization has been delegated for the performance of statutory functions, such as ship surveys, approvals and certification services by the Governments of the Countries listed here: https://insb.gr/Statutory.Authorisations

These authorizations are based on the rules, regulations and requirements stipulated by the IMO International Conventions including Safety of Life at Sea (SOLAS) 1974 as amended, the International Convention on Load Lines 1966, and the International Convention for the Prevention of Pollution from Ships, 1973/78.

Full Term Statutory Certificates are issued by INSB Class Head Office exclusively, unless there is a certain Government requirement where full term certificates are issued by the country itself.

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Brexit & Your Yacht

I deal with tough mathematical questions every day but please don’t ask me to help with Brexit.

— Stephen Hawkins

The United Kingdom’s departure from the European Union is fast approaching and many issues affecting the yachting industry still remain unclear.

Future terms for the relationship between the UK and EU are, as yet undecided and if negotiations fail to conclude in their entirety by December 31st, 2020 the UK will leave with No  Deal. 

A common question asked by those with vessels under the UK flag is whether they should change or if they choose for their yacht to remain under the UK authorities, where should the yacht be on 31st December 2020?

Advice about the consequences for both private and commercial vessels requires a careful evaluation based on individual circumstances and we urge our clients to seek counsel from those with a multijurisdictional approach.

Miller Marine surveyors as delegated by flag administrations are able to offer advice about the pros and cons of different flag authorities to meet the needs of the owner and/or company structure and we indeed provide the processes for changing flag state alongside our agents, partners and leading legal counsel that we can recommend.

Talk to us about your concerns and we will certainly direct you to the right
professional to suit your situation.

VAT is one of the most complex issues for yacht ownership and the anomalies between different member states application of the rules can make it a minefield for those without qualified expertise and often a headache for those that have it!  

Those who own yachts via a UK entity or those registered under the UK flag should take immediate advice as to what a No Deal exit potentially means for them. This is an even more pertinent issue if VAT was paid in the UK or the yacht was imported into the UK. 

As the UK will no longer be part of the EU VAT system it will be treated accordingly as a third country jurisdiction for VAT and Customs. The questions requiring clarity that we are hearing from concerned owners, managers and industry professionals are:

  • VAT paid yachts paid in the UK could lose their VAT paid status?
  • Vessels imported into the UK will remain in free circulation or lose this post Brexit or when they leave to non-EU waters?
  • Temporary Importation will be possible for yachts owned by UK residents within the EU?
  • UK residents will purchase yachts from EU countries without paying VAT?
  • Commercial vessels owned by a UK company who wish to charter in the EU may need to be re-imported post Brexit?

In addition, for Commercial yachts post Brexit, UK flagged vessels will likely be treated as a non EU flag by EU territories in respect of Charter Licences and Returned Goods Relief so we do urge our clients to seek advice when they are considering where they intend to charter and use their yacht. 

If you wish to discuss any of the issues above then please contact us on +34 672043882 and we will ensure you get the correct advice. 

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International Virtual Summit on Crew Change hosted by the UK on July 9th

News on Crew Changes – 12 countries issued a joint statement pledging their commitment to help solve the current seafarer crisis at an International Virtual Summit on Crew Change hosted by the UK on July 9th.

We have been closely watching the development of the border controls especially in relation to the subject of crew changes which are still being adversely affected and to the detriment of the wellbeing of many seafarers worldwide. This continues to be an important topic with the current resurgence of COVID-19 in some areas.

With this in mind, we welcomed the news that on Jul 9 an International Maritime Virtual Summit on Crew Changes was held by the UK Ministry of Transport, resulting in a Joint Statement of 13 States, participants of the Summit, namely:
Denmark, France, Germany, Greece, Indonesia, Netherlands, Norway, Philippines, Saudi Arabia, Singapore, United Arab Emirates, United Kingdom and the USA.

The statement can be found here https://www.gov.uk/government/news/joint-statement-of-the-international-maritime-virtual-summit-on-crew-changes and in recent days more countries have joined this pledge, including Spain.

We hope that this undertaking is followed by substantive action. A useful tool to check current control implications for each country can be found here if you have travel coming up:
https://www.iss-shipping.com/pages/coronavirus-port-country-implications