Our in-house Customs Consultant addresses points to consider when importing a Super Yacht into Australia.
Story from David Lawson, Customs Consultant
Jeff Pfaff at PwC authored an interesting Article prior to Christmas, titled “Owning a superyacht in Australia – to tax or not to tax – that is the question!”It’s a good Article and I would encourage all to read as it delves into the tax issues with owning a super yacht.
When importing a super yacht (or any vessel for that matter) there are a few additional issues to consider. The circumstances of the importation will affect the liability for import duties and GST as well as immigration visa requirements for the crew. Plus, there are the non-financial issues to comply with. It’s what we call a layered approach.
Those of you old enough would remember when our lecturers used a transparency slide and a projector. Or some movie-maker buffs may remember the early animation movie models. Either way, you started with a master copy and then layered additional slides on top to show a transformation process. Importing a Vessel is remarkably similar.
Vessel and Voyage details are layered with the Owners details and Crews details. We then add the Vessel’s value, Certificate of registry, Tonnage Certificate, Hull Insurance Certificate. On top of that we have any tenders, toys, alcohol and high-value artwork and any additional modifications.
You then layer in the controlled substances such as Medical Kits, firearms and ammunition, and ozone depleting refrigerants and factor in the bunker costing.
Of course, the above is rather a simplistic view, and the actual process is far more complex, subject to the purpose of importing the vessel. But you get the idea of the layering model.
One (1) key point to consider with the import formalities, current Australian Border Force practice determines the Import formalities must be completed in the FIRST port of call. This means the vessel will not be granted permission to travel to another Port or a refit yard, until all the Border Force requirements have been finalised.
From a practical perspective, it’s critical to identify who needs to know “what” and “when”.
Determine the purpose of visiting Australia and seek advice that explains the process and potential pitfalls, and of course, what paperwork is required for the import formalities.
Start the conversation early.
