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Marshall Islands – Yacht Engaged In Trade (YET) Dual Private & Commercial Charter Yacht Registration

Introduction

The Republic of the Marshall Islands Registry (RMI) has announced the launch of a new category of yacht registration known as ‘Yacht Engaged In Trade’ (YET).

The full designation for a yacht operating under this new registration is a ‘Private yacht with intent to request a Temporary Certificate of Registry for Yacht Engaged in Trade’.

The YET registration addresses a need within the luxury yacht market for a dual purposes private and commercial charter yacht registration.

The Marshall Islands Registry

The Marshall Islands, officially the Republic of the Marshall Islands, is an island country located in the northern Pacific Ocean. Geographically, the country is part of the larger island group of Micronesia with the population of around 68,000 people spread out over 34 low-lying coral atolls comprising 1,156 individual islands and islets.

Politically, the Marshall Islands is a presidential republic in free association with the United States, with the US providing defence, funding grants, and access to social services.

Seagoing vessels of any tonnage engaged in foreign trade including commercial yachts and private yachts 12 meters or more in length are eligible for registration in the Marshall Islands.

Yacht owners can choose between the ports of registry of either Bikini or Jaluit.

Background

Traditionally when yachts have been operated privately they have had to maintain a privately categorised registration whilst commercial charter yachts have had to maintain a fully commercial registration.

Whilst it is possible for private yacht to convert to commercial categorisation and vice-versa a change of categorisation at the vessel’s respective ship registry is necessary.

Under Port State Control rules it has also been difficult for a yacht holding a private category registration to charter and vice-versa.

The beneficial owners of yachts operating under a charter regime in EU waters also have had to charter their vessel under commercial terms meaning they had to effectively charter their own vessels and pay VAT on their own charters.

The Yacht Engaged in Trade

Yachts holding the Yacht Engaged in Trade categorisation will be able to charter for up to 84 days per calendar year, provided it complies with all relevant regulations and requirements that apply to RMI commercial yachts as outlined in the RMI Yacht Code. Applicable yachts.

The Yacht Engaged in Trade categorisation will be available only for yachts over 24 metres in length.

Operating Area

The Yacht Engaged in Trade categorisation has so far been cleared with the authorities of France and Monaco and the Marshall Islands registry are hoping to extend this clearance to other EU countries.

EU VAT

The Yacht Engaged in Trade categorisation when used in accepting European states will require the vessel to be VAT paid.

The yacht owning company will have to hold the relevant fiscal registrations that apply in the country where they will operate for charter.

In France and Monaco for example the owning company will have to hold fiscal registration in order to properly account for VAT and any other tax obligations resulting from the vessel’s charter activity.

EU Temporary Admission

We understand that the Marshall Island authorities have been able to obtain the approval of the French and Monaco authorities for yachts that are not VAT paid and entered into the EU under Temporary Admission relief from VAT to also benefit from the Yacht Engaged in Trade categorisation.

One of the key conditions of Temporary Admission relief from VAT is that it is available only to yacht in private use. Temporary Admission relief would therefore have to be suspended for the duration of any charter in order not to breach to these conditions.

RMI Marshall Islands Yacht Registration By Oceanskies

Oceanskies is based in the Channel Islands and provides a Marshall Islands yacht registration service to all yacht owners wishing to take advantage of the RMI registration for their yacht.

The registration service results in Oceanskies taking responsibility for the entire registration process on behalf of the owner including:

• Seeking vessel name approval
• Liaison with builder and/or seller to obtain legal title in the vessel
• Drafting and obtaining necessary documentation from owner
• Arranging and performing the tonnage survey and class / RMI surveys
• Assistance with registration of owner as a Foreign Maritime Entity
• Assistance with selection and appointment of fiscal agents in France and Monaco
• Obtaining provisional registration
• Assistance with Carving & Marking formalities
• Radio licence application & EPIRB registration
• Provision of Certificate of Registry
• Provision of vessel radio licence allocating call sign and MMSI number

Further information 

For further information please do not hesitate to contact us.

Yacht Registration

Yacht Registration - An Introduction
The British Register of Ships & The Red Ensign Group
The UK Ship Register (Part I) v. UK Small Ships Register SSR (Part III)
Registration of Yacht Tenders
The Yacht Radio Licence – A Guide To Licensing, Call Signs, MMSI Numbers & More
The Carving & Marking of Yachts – A Guide
Delaware Yacht + Vessel Registration – A Warning!
Netherlands / Dutch ICP Yacht Registration – A Warning!

Yacht Registries

Cayman Islands Yacht Registration
Guernsey Yacht Registration
Isle of Man Yacht Registration
Jersey Yacht Registration
Malta Yacht Registration
United Kingdom (UK) Yacht Registration

Yacht Operation

EU VAT & Yachts – Frequently Asked Questions
Temporary Admission (Temporary Importation) for Yachts in Europe
The Charter of Yachts in the European Union
Cruising Licences for Yachts in the United States
Yacht Leasing In Malta

Yacht Survey & Certification

The Tonnage Measurement Survey
Rules for the operation of Private Pleasure Yachts under the British Flag
Rules for the Charter of Yachts Under 24 Metres under the British Flag
Rules for the Charter of Yachts Over 24 Metres under the British Flag
The Intended Pleasure Vessel Code (IPV Code)
Rules for the Charter of Yachts under the Malta Flag
Marshall Islands – Yacht Engaged In Trade (YET) Dual Private & Commercial Charter Yacht Registration

Yacht Agents

Guernsey & Jersey: Channel Islands Yacht Export & Delivery
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@oceanskiesltd

17 February 2020 at 15:14

Today we have been in Viareggio with @azimutbenetti for the survey of their latest @Azimut_Yachts Azimut 27 Metri undergoing red ensign registration - pls contact us for a registration proposal or go to oceanskies.com to use our flag selector #yachtregistration pic.twitter.com/Y6TZ47WbEp

@oceanskiesltd

13 February 2020 at 19:29

Today we have been in Bordeaux with a very busy @Lagooncats for the tonnage survey of latest Lagoon 52F undergoing red ensign registr by Oceanskies - pls do not hesitate to contact us for a proposal or go to oceanskies.com to use our flag selector #lagooncatamaran pic.twitter.com/Od4Jcs7khU

@oceanskiesltd

11 February 2020 at 20:13

Today we have been in La Rochelle, France with @NautitechCat for the tonnage survey of their latest Nautitech 46 Fly sailing catamaran undergoing red ensign registration by Oceanskies #Nautitech #yachtregistration #yachtregistry #yachtregister #tonnagesurvey #redensign pic.twitter.com/u4tev2MzJu