Tuesday, December 29th, 2020
Have a Hankering for a Hinckley?
Have you ever had a hankering for a Hinckley, the quintessential American cruising yacht? If not a Hinckley, then maybe an Island Packet, Catalina or a Tarten each of them well respected as American cruising yachts. Chances are like me you have been put off by the high prices when compared to say one of the French built plastic fantastic.
Well the good news is that after Great Britain is free from EU retaliatory tariffs that will no longer apply when Brexit Transition Period ends on 31 December 2020 each of those brands could cost up to 25% less than now. A saving brought about by the absence of a trade agreement between the UK and the USA, meaning the UK Global Tariff scheme will apply from that date.
These tariffs, introduced by the EU in the summer of 2018, have had a significantly negative impact on anyone in the EU buying any yacht of US-origin yachts. And maybe that’s why they are not often seen in European waters. The tariffs imposed by the EU in retaliation for the tariffs introduced by the US on the import of EU steel and aluminium products were levied on all new and second-hand yachts and boats, as well as a range of other marine related products.
But, if like me, you thought that Nordhavn had suddenly become within your grasp you will need to think again. Because these American designed beauties have been built in China, they are imported directly into the EU without passing through the US and thus have already escaped the EU imposed penalties
VAT will still be payable on the import of new and second hand yachts into the UK, from the USA after 1 January 2021. But this will be UK VAT and will not count towards the EU ‘Union-goods’ status of the yacht.
This means that UK residents cruising inside EU waters aboard their own yacht will be restricted to the 18-month EU Temporary Admission period before EU VAT becomes payable.
So despite the weakness of sterling against the yankee dollar that hankering for a Hinckley could turn into reality once the EU tariffs disappear. Happy New Year!