Free circulation is a customs procedure. It relates to freely moving your yacht or aircraft in a customs territory.
It is therefore necessary, for example, if you’re looking to charter a foreign asset in the EU or UK.
To achieve free circulation, you need to do the following:
- Raise a customs entry for your asset.
- Pay or account for relevant duty and/or VAT.
Once these conditions have been met, if previously foreign, your assets will now be considered permanently imported. This means they have become ‘territory goods.’
As a result, your yacht or aircraft now has the same status as goods produced and remaining within the customs territory.
However, this is only whilst your asset remains in free circulation within the territory.
Loss of free circulation
If you remove your asset from EU or UK free circulation, any ‘territory goods’ status will be lost. This is unless you choose ways to avoid this, for example, by placing your asset under other customs procedures.
How Y & A Group, LP help
At Y & A Group, LP our accumulated expertise enables you to safely import your yacht and aircraft into free circulation in the EU and the UK. We achieve this whilst ensuring tax efficient management of your asset’s status. This is as it moves in and out of the customs territory.
Our professional services therefore keep you customs and VAT safe. At all times.