New clarifications from the European Commission on special customs procedures

Moores Rowland Partners Tax Column

Contribution by Dr. Ezio Vannucci and Dr. Andrea Barabino

On 5 November 2025, the European Commission published the new guidelines (Special Procedures – Title VII UCC – Guidance for MSs and Trade) on the special customs procedures contained in the European Union Customs Code (EU Regulation No. 952/2013 (“CDU”), which also includes the ‘temporary admission’ regime. Although, as specified by the EU Commission itself, the publication is not a binding source, it offers numerous interpretative insights that are certainly relevant to the yachting sector. The temporary admission regime, governed by Article 250 of the CDU, allows for the temporary use within the EU, exempt from import duties and VAT, of non-Union goods intended to be re-exported or placed under another customs procedure without undergoing any changes, except for their natural depreciation due to use. In the case of a yacht, the temporary admission procedure may be used provided that (Article 212 of Delegated Regulation No 2446/2015 “CDU-RD”): natural depreciation due to use. In the case of a yacht, the temporary admission regime can be used provided that (Article 212 of Delegated Regulation No. 2446/2015“UCC-RD”):

- the yacht is registered outside the EU in the name of a person (natural or legal) established outside that territory. In the case of registration in the name of a legal person, this condition must also be met by the directors and the beneficial owner (UBO);

- is used by a person established outside the Union territory.

The definition of means of transport

Firstly, the Commission clarified the definition of “means of transport”, explaining that it is not the nature of the asset that allows it to be identified as a means of transport, but rather the use for which it is actually used (transport of persons or goods). Consider, for example, the case of a recreational craft brought into the EU on board a cargo ship. In this case, for customs purposes, the craft cannot be considered a means of transport and therefore cannot benefit from the special rules applicable to this specific type of goods. This has practical implications that should not be underestimated since, for example, it means that a recreational craft (transported on board a cargo ship) cannot be placed under the temporary admission regime simply by passing through EU territorial waters, but must be subject to a specific customs declaration upon arrival in EU territory (unlike in the case of means of transport, where simply entering EU waters constitutes a customs declaration expressing the intention to place the vessel under the temporary admission regime).

The interpretation of the requirement for use by a person established outside the EU

With specific reference to the yachting sector, the Commission first provided some useful clarifications on the criterion for identifying the user of the vessel, who, as already mentioned, must be established outside the EU. In particular, the Guidelines, proposing solutions for three practical cases, clarified that in the case of private use of a vessel (i.e. a yacht registered as a “pleasure”) the user is to be understood as the owner, whether or not they are physically present on board at the time of entry into the customs territory of the Union or, as may be the case, whether or not they are on board at the time of crossing the territorial waters of a Member State (12 nautical miles from the coast).

The last of the three examples addresses the issue of user classification in cases where a commercial yacht is used for chartering activities, arguing that in such cases, in order to verify the existence of the user's establishment outside the EU, reference must be made to the yacht's captain. In this regard, it should be noted, however, that the case of a commercial vessel subject to the temporary admission customs regime is, in practice, rather rare, given that commercial vessels from outside the EU intended for charter activities in the Mediterranean are usually imported and therefore do not operate under the temporary admission regime (with the exception of the 'Yacht Engaged in Trade' scheme permitted by the Cayman Islands and Marshall Islands flag registers).

Discharged period: the period within which the goods must leave the Union territory

The Commission then offered several points for consideration regarding the calculation of the period for determining the temporary admission regime, which, in the case of yachts, is 18 months. In this regard, it was first clarified that when goods are initially placed under this procedure and subsequently under another special procedure, only the period actually spent under the latter procedure (both the first and second periods) is taken into account for the purpose of verifying compliance with the 18-month period for discharge. In other words, this means that placing goods under a special customs procedure other than temporary admission during the 18 months following their first entry into the Union effectively suspends the expiry period, which resumes when the goods are placed under the temporary admission procedure again.

This position is in line with the interpretation of the Italian Customs Administration, which, in Circular No. 20/D of 2022, clarified that "in the nautical sector, private vessels are frequently subject to the temporary admission regime by their owners, while the inward processing regime, in the case of repair and manufacturing activities, is requested by the shipyard. Once the work has been completed, the inward processing regime is verified and the subsequent outward processing phase is again the responsibility of the owner. In the case in question, since both the parties responsible for the two procedures for the same asset and the purposes for which the asset is subject to the procedures are different, only the two periods during which the vessel is subject to the temporary admission procedure by the same party, the owner of the vessel, shall be taken into account for the purposes of the maximum period."".

Still on the subject of calculating the verification period, particular attention should be paid to the Commission's statement regarding Article 4(251) of the UCC, which stipulates that the "total period during which goods may remain under the temporary admission procedure shall not exceed ten years, except in the case of unforeseeable circumstances”.After pointing out that the period for discharge is normally 24 months (in the case of a yacht, it is 18 months), the Commission noted that this may be reasonably extended in exceptional circumstances but may not exceed 10 years in any case. With regard to the method of calculating this “overall” and non-extendable 10-year period, the guidelines in question offer an example which, although not specifically related to the world of yachting, may nevertheless provide a useful interpretative clue:

"“The artworks are placed under the customs warehousing procedure and, for the purpose of selling them at an exhibition, these goods are placed under the temporary admission procedure and remain under that procedure for one month. The goods are not sold and are therefore placed back under the customs warehousing procedure. Three months later, they are placed back under the temporary admission procedure and remain under that procedure for two months, in order to be sold at another exhibition. The goods are not sold again and are placed under the customs warehousing procedure. The temporary admission authorizations were granted to different persons. In this case, Article 251(2) of the Customs Code (CDU) does not apply. However, the total period for which the goods may remain under the temporary admission procedure is 10 years (see Article 251(4) of the Customs Code). In this case, the goods remained under the temporary admission procedure for three months. This three-month period is counted towards the 3-year period. The period during which the goods were placed under the customs warehousing procedure is not counted towards the 10-year period laid down in Article 10(251) of the Customs and Monopolies Code.”While this example has the merit of clarifying how the succession of different special regimes in the name of different holders works for the purposes of calculating the verification period, it does not address the issue of calculating the overall ten-year period in cases where there is no change in the holder of the customs regime.

Maintenance work on goods subject to the temporary admission regime

In this regard, the EU Commission has finally confirmed that, in accordance with the provisions of Article 204 of Delegated Regulation No. 2446/2015, a means of transport (yacht) under temporary admission may undergo maintenance and repair work aimed at preserving its functionality. On the other hand, it is not permitted to carry out work that could result in permanent changes to the functionality of the means of transport (e.g. the installation of an air conditioning system if the means of transport did not have one) or that could increase its performance or value (e.g. completely repainting the means of transport).

Customs in Circular No. 20/D of 2022, which clarified, for example, that painting work on a vessel constitutes routine maintenance and, as such, may be carried out under temporary admission. However, it is true that the Commission's own guidelines take care to emphasize the non-binding nature of the document, which is merely an interpretation that complements and does not supersede the instructions issued at national level.

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