ONBOARD Magazine summer 2019

definitions for being called a pleasure vessel
and be registered as such. Pleasure vessels
in essence usually mean that the owner
operates the vessel for their personal use
and does not make any profits out of the
operation. The vessels are only required to
comply with very few maritime legislations.”
Once the owner decides to operate a
vessel commercially, things get more
complicated: The yacht must comply
with international laws relating to its
construction, outfitting and manning. Says
Jallow, “The rules are very complex and it
needs a trained surveyor to certify them
fit for commercial operation.” Dr Zammit
echoes this by confirming, “Certificates
of compliance are required, registration
and maintenance fees are generally higher
as are fees for insurance. Therefore the
cost of buying and maintaining a yacht
for commercial use is much higher. More
certification is required and there could
be more restrictions on crew.”
In the EU, the choice between private and
commercial has become very complex as
each state has its own customs and tax
laws that must be followed. So yachts
prefer to switch between commercial or
pleasure depending upon the state that
they are in. “The Virgin Island Ship Registry
(VISR) is happy to provide such a facility,”
says Jallow. “For example, we have a client
wishing to change the registry between
pleasure and commercial in the European
Union. According to new French customs
regulations, the owner is authorised to
charter non-EU residents under the
temporary admission relief but under a
commercial certificate of registry.”
Ð
“In France, it is perfectly possible to
remain under temporary admission and
under a commercial certificate of registry.
In Spain, it is also possible, but it requires
obtaining a chartering license which is
very difficultÐto obtain. As a consequence,
the client would like to have a commercial
certificate of registry when renting the
boat out in France to non-EU resident
charterers and a pleasure certificate of
registry when using his boat privately in
Spain.”
If at this point in the game, the owner
hasn’t decided to ditch the idea of buying
a boat, Mag. Virna Ayala points out that
at the Panama Ship Registry, there are
no pros or cons of commercial or private
registration. A private yacht has to pay a
fixed tax of $1,000 (if Panamanian national)
or $1,500 (for a foreign company) every
two years. Ð
THE VIRGIN ISLANDS
SHIPPING REGISTRY
The Virgin Islands Shipping Registry (VISR)
is the Maritime Administration of the British
Virgin Islands (BVI), offering first-class
services for ships and seafarers, including
marine certification, and advice for yacht
owners requiring BVI yacht registration. It
is also able to serve the global market as a
provider of international yacht registration,
safety and advisory services. The role of the
VISR is to implement the maritime policies
of the Government covering shipping
operations, safety of life at sea, security, the
prevention of, and response to, pollution
from ships and yachts.
For more details Tel: +1(284) 852 1957
or visit www.bvifinance.vg
WILL THE FLAG STATE HAVE ME?
Once an owner chooses a flag state to
approach for registration, is there a chance
he will be rebuffed at the door? Jallow
explains, “Every registry has their own
criteria on who they will accept on to their
registry. Firstly it depends on the type
of registry: traditional or open. Certain
registries may not accept persons from
countries in any UN sanctions list or the
black list of the Financial Action Task Force.
The BVI has its own eligibility list as well.”
The Panama Ship Registry doesn’t have any
owner’s nationality, age or vessel tonnage
criteria, once the owners comply with the
requirements.
WHAT TYPE OF REGISTRY?
So we’ve got this far, but we’re still a
marathon away from flying a flag. Now
ONBOARD | SUMMER 2019 | 113