Friday, April 03, 2015

DEALING WITH FOREIGN CRUISING REGULATIONS (part one)

Envoy is currently located in Lefkas marina, Greece, while we are back in New Zealand (NZ).
NZ must be one of the last bastions of virtually regulation-free recreational boating, where registration of vessels is not required and the only qualification required for skippers is to be over 15 years old to operate a vessel capable of over ten knots (it’s a very different situation for those operating vessels commercially, but that’s another story.)
Whether this regulation-free environment is a good thing or not prefers on your point of view – my own is that I see no safety advantage in compulsory registration (only revenue gathering) but some form of skipper qualification should be required.
One thing is for sure though - cruising in most overseas destinations involves dealing with a myriad of officials and regulations, and generally requires some form of competence qualification. My own experience mostly relates to the Mediterranean so I’ll provide an overview of the situation there. Bear in mind that the waters of the Med lap the shores of about 22 countries, each having slightly different regulations and interpretations, so it’s vital to obtain specific updated information relating to the countries you intend to cruise (a great source for this is www.noonsite.com).
Regulatory requirements fall into two categories; those involving the vessel and those involving the skipper and crew, and they vary according to the vessel’s country of registration and the nationality of the skipper and crew.
Depending on the country and the port you are in you will be dealing with all kinds of officials – Port Authorities, Coastguard, Police, Port Police, Customs, Immigration and Health Officials. They only want to deal with the skipper, so if any crew are present in a discussion ask them to leave you to handle the situation. Officials in that part of the world are more formal than we encounter and it’s a good idea to show respect by being clean and tidy, being patient when procedures seem to take a long time and speaking slowly and clearly as English is not their first language. Answer their questions and provide requested documents but don’t volunteer other information or documents as that may complicate the situation. Officials in Egypt and some other North African countries expect some form of gift (baksheesh) to facilitate proceedings, but we have not found this elsewhere.

THE VESSEL
All vessels are required to have a certificate of registration. If you buy a used boat in the Med it will probably be registered in an EU country and be VAT-paid. In this case your vessel can remain indefinitely in EU waters. If your vessel is not VAT-paid you may elect to register her in a non-EU country, for example NZ. In this case there is no initial requirement to pay VAT, but your vessel can only remain in EU waters for up to 18 months before VAT will have to be paid at rates which vary by country but are in the order of 18-20 per cent of your vessel’s value. Once VAT is paid in one EU country it is paid for all. Fortunately this 18 month period can often be extended at the discretion of local Customs who can hold a vessel under bond for reasons such as she is left unattended and unused, the owner leaves the EU or she is in a boatyard for repair. In any case the 18 month time clock can be re-set by clearing-out of the EU, cruising to a non-EU country (such as Gibraltar, Albania, Montenegro or Turkey), clearing-in there for a few days and then returning to the EU.
In NZ pleasure vessels are registered in Part B of the NZ Register of Ships administered by the Maritime Safety Authority. When I last renewed Envoy’s registration in late 2011 the cost was $436 but it’s now a whopping $736 while a new registration is $920. These are unbelievable costs for the work involved and for issuing one piece of paper, so it may be worthwhile to investigate registration in an alternate country where costs are cheaper, but remember you have to fly that country’s flag.
All vessels must be insured including third party and public liability cover, and you will need to show proof of this when clearing-in to a different country, when entering a marina and in many cases when entering a harbour.
Most countries issue your vessel with some form of cruising permit, for example we paid about NZ$548 for a three month permit (known as a Vignette) in Croatia during 2013. This sounds expensive but in reality is only $6 per day to cruise in a fantastic area. Some countries apply a “cruising tax” on visiting cruisers so this situation needs to be checked for each country. Italy abandoned their tax in 2013 while Greece has a tax, but in practice it’s not currently being enforced.
Read about regulations affecting skipper and crew in my next posting in a week.

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