Transport and Services Agreement For Yachts
Why the contract of carriage and service?
For years, yachting has used the MYBA charter agreement, which was designed 30 years ago (and has been revised several times) for the commercial availability of yachts.
The contract of carriage and service to yachting is the result of recent changes in European regulations which define a new possible framework for the commercial use of yachts.
The contract of carriage and service of yachting:
- is derived from the contract of carriage used for cruise ships with the necessary adaptations for the use of yachts.
- is therefore an alternative solution which is part of the regulation of maritime transport, whereas the charter contract relates to the hiring of a means of transport.
- is used as part of a service that offers a cruise with accommodation – ECPY has also designed a daily yachting contract. (Add link)
The basic differences between the contract of carriage and the charter contract for the customer are as follows:
- A route is defined (it can be modified by agreement between the parties)
- The price paid by the customer includes, among other things, the fuel needed to transport (cruise)
- The VAT rate applicable to transport (10% in France) is different from the rate for leasing in the majority of European countries; In all EU countries, there is exemption from VAT in the case of international shipping
- Purchase fuel is zero-rated TICPE and VAT (about 0.60cts per liter) in France
- The legal competence clause may be fixed in the country chosen by the parties, without any obligation to fix it in Great Britain or in the charter contract.
- There is no need to pre-set itinerary, only a port of embarkation of the yacht and a port of disembarkation of the customers
- The price paid by the customer under the contract only includes the provision of the boat and its crew, all other costs, including fuel, are paid in addition to the contract (use of the APA – Advance for provision).
- The applicable VAT is at the rate of 15 -25% in Europe, 20% in France.
- The price of fuel is zero-rated only with the VAT therefore returning to 1.21 € per liter in France.
- The charter contract remains relevant in the case of static contracts (dockside events).
For intermediaries (broker, stakeholder, broker, escrow, central agency) there are also fundamental differences of status:
- The intermediaries organizing or selling the service must comply with the regulations applicable to organized trips, declared in the tourism code. This means that they must comply with the regulations of travel agents in the country where their headquarters are located
- The regulation of travel agents provides civil liability insurance and a financial guarantee. When these two guarantees are acquired, a registration must be made with the national agency managing the travel agents. In France
- It is ATOUT France
The commissions of transparent intermediary agents apply the same VAT as the main contract (exemption in the case of sale of international travel).
- No registration to any organization is required,
- Most professional unions (MYBA, FYBA, CYBA …) require liability insurance with minimum amounts of coverage.
- Basic VAT (20% in France) is due on commissions.
The contract of carriage and service of yachting has been designed in accordance with European regulations. It should eventually be usable from all EU countries.
To date, ECPY has presented it to the French authorities (customs, tax, maritime authorities) which, after examination, has been declared in conformity with the principles of maritime transport and therefore valid in terms of impact, notably tax and customs.
As regards use in countries other than France, ECPY aims to present the contract to the authorities of other European countries in order to obtain the same endorsement as in France.
The positives of the contract of transport and services of the yachting:
In addition to the financial advantages, VAT, fuel price, the contract of transport and services of the yachting constitutes an important step towards a professionalisation of the profession of broker. It clarifies the roles of each stakeholder.
It encourages all yachting owners and intermediaries to comply with the highest standards of professionalism.
The day-to-day transport contract
Until today there was no contract for day use of a yacht. Many professionals offer their clients this type of service.
We felt it was important to fill this gap and, in this spirit, ECPY designed a day-to-day transport contract that benefits from the same financial advantages as the day-to-day yacht transport contract: VAT, Fuel price
This day-to-day yacht transport contract has only two pages, it is easy to complete and implement.
The specific features of this contract are:
- No accommodation on board
- Day use
- Inclusive flat price of the fuel (if necessary of the restoration)
- The broker is not a travel agent because there is no accommodation