Excise-free fuel for yachtsmen, even if they just stop by

Owners of foreign yachts, ships and other vessels can now buy fuel and other excise products in Montenegro without the obligation to stay longer in Montenegro, or they can just stop by, buy fuel and immediately leave Montenegro because the Government has adopted an amendment to the regulation that abolished the previous obligation to have a stay of at least 72 hours.

This was explained to "Vijesti" by the Customs Administration, whose jurisdiction is this amended Rulebook on the manner of implementing the customs procedure for goods used for supplying means of transport in international traffic, types of goods and quantitative restrictions, which, after being amended by the Government, entered into force on August 29.

The previous norm that a vessel must stay in Montenegro for at least three days existed for the reason that the privilege of purchasing fuel without excise duties would be given to vessel owners who are tourists and who will spend the difference in money on other services during that stay.

The benefits were abolished in 2022.

In December last year, the government restored the privilege that foreign yacht and vessel owners could purchase fuel without excise duties, and now, with a new amendment to the regulation, they are granted this privilege without restrictions. At that time, a new fee of three cents per liter was also introduced for citizens to form state fuel reserves.

This privilege was abolished in 2022 by the then Minister of Finance. Aleksandar Damjanović. The ministry then calculated that the state budget lost around 2018 million euros from 2022 to July 59 due to uncollected excise duties and value added tax (VAT) on the sale of fuel for yachts and ships. The amount of excise duty on fuel is now 33 to 44 cents per liter, and it is included in the VAT calculation base, so that Eurodiesel is paid around 50 cents cheaper than citizens.

The Customs Administration confirmed to "Vijesti" that this amendment to the Ordinance abolishes the previous restriction on residence.

"The amendments to the Regulation, namely the provisions of Article 6, abolish the restrictive condition for the supply of duty-free fuel to vessels used for private purposes, which implied a prior stay in the territorial waters of Montenegro for at least 72 hours, as well as a closer definition of what is considered a vessel for private purposes. In this way, the aim is to further encourage the development of nautical tourism and attract a greater number of yachts, ships and high-paying tourists. The rest of the Regulation remains unchanged, so in relation to the supply of vessels with other excise products, the solution that was in force until the amendments to the Regulation applies," the Customs Administration stated.

It will be valid until Montenegro joins the EU.

This institution states that these benefits will apply until Montenegro joins the European Union.

"We would like to remind you that the basis for the adoption of the aforementioned regulation is contained in Article 200 of the Customs Law, which stipulates, among other things, that a vessel whose final destination is outside the customs territory of Montenegro may, under special customs supervision measures and in accordance with the prescribed procedure, take supplies of goods, namely: 1) food or other necessary products proportional to the number of passengers, crew members and the duration of the voyage and 2) products necessary for the functioning of the vessel. In accordance with Article 2, paragraph 1, ships, yachts and boats, when sailing from a pier, port, shipyard or from the customs territory of Montenegro, may, under customs supervision, be supplied with foodstuffs and other necessary products from customs warehouses and warehouses in a free zone. Customs supervision over the goods that are the subject of supply lasts until the ship, boat or yacht sails, or until the goods are taken out of the customs territory," the Customs Administration stated.

When asked by "Vijesti" whether vessel owners and their crews have restrictions regarding the quantity of excise products purchased, the Customs Administration said that this part remained as in the previous regulation, that is, it was not changed.

"Which products, including excise goods, may be purchased by vessels leaving the territorial waters of Montenegro is prescribed by the provisions of Articles 8, 9, 10 and 11 of the Regulation. Namely, in accordance with Article 8, foreign and domestic passenger ships operating abroad on regular and charter lines in maritime traffic may be supplied with cigarettes or other tobacco products and alcoholic beverages only in quantities depending on the number of crew members, passengers and the length of the voyage, and a maximum of 40 cigarettes or other tobacco products in an appropriate quantity and up to one liter of alcoholic beverage per crew member, for each day of stay in the customs area, and in the port or port from which they leave the customs area, also with cigarettes or other tobacco products and alcoholic beverages in quantities necessary to replenish the ship's supplies. Data on cigarettes or other tobacco products and alcoholic beverages with which the ship is supplied shall be entered in the ship's records", the Customs Administration stated.

Special control procedures

They state that there are special measures to control this trade to prevent abuse.

"Ships keep special records of the state of ship's supplies, so that customs supervision can be carried out at any time. Supplies of goods that exceed the needs of consumption on board the ship until the next port or port where the ship docks, or until the ship leaves the customs area, must be placed in rooms on the ship on which the customs authority places customs marks. Customs marks can be removed by an authorized customs officer or this can be done with his approval (official note on approval for free circulation, manifest, vignette or crew list) upon the ship's departure from the customs area," the Customs Administration stated.

They also indicate that ships that are staying at a dock, or port (for loading or unloading) or shipyard (for overhaul, repair, etc.), can be supplied with food and other products intended for the ship's crew:

"Namely: cigarettes or other tobacco products and alcoholic beverages for the needs of the crew in quantities depending on the number of crew members, and a maximum of 40 cigarettes or other tobacco products in an appropriate quantity and up to one liter of alcoholic beverages per crew member, for each day of stay in the customs area, and in the port or port from which they leave the customs area, and cigarettes or other tobacco products and alcoholic beverages in quantities necessary to replenish the ship's supplies. The supply procedure is completed in accordance with Article 4 of the Regulation, which stipulates that foreign goods for the supply of ships, yachts and boats intended for sports or recreation are sent through a legal entity registered for the supply of vessels from customs warehouses located at the port or port open to international traffic, on the basis of an invoice and a shipping note. The invoice and shipping note are completed in at least five copies numbered by ordinal number," the Customs Administration stated.

The customs authority at the dock or port, as they explained, certifies all copies of invoices and shipping notes, one copy of which is retained by the customs warehouse, the legal entity and the customs authority, while the other copies accompany the goods and are handed over to the master of the vessel, or an authorized crew member, who certifies one copy of the invoice and shipping note with the ship's seal or his or her signature in the presence of a customs officer, thereby confirming receipt of the goods.

"A legal entity is obliged to submit a declaration for the re-export of foreign goods to the customs authority no later than the 10th of the month, for goods sold in the previous month. The customs declaration for re-export referred to in paragraph 4 of this Article shall be accompanied by a specification of the goods sold, drawn up on the basis of certified invoices, or delivery notes, as well as copies of the legal entity's certified invoices. Goods that have not been sold on international routes shall be returned, with the submission of a declaration for customs warehousing, to the customs warehouse within 24 hours or retained on board the ship, if the ship is under customs supervision or if it continues sailing on an international route," the Customs Administration stated when asked how they can prevent abuses when purchasing excise goods from vessels.

Cigarettes and alcohol can be purchased duty-free seven days in advance

Foreign yachts and boats intended for sports or recreation may be supplied with up to 40 cigarettes or other tobacco products in an appropriate quantity and alcoholic beverages up to one liter per crew member and passenger on board for each day of stay in the customs area.

However, there is a possibility of so-called daily supply of cigarettes or other tobacco products and alcoholic beverages, which can be done in advance, but for a maximum of seven days.

"Vessels referred to in paragraph 1 of this Article may be supplied once at the port from which they leave the customs area with up to 400 cigarettes or other tobacco products in an appropriate quantity and alcoholic beverages up to three liters per crew member and passenger on board. The customs authority shall place a note on the supply carried out on the navigation permit," the Customs Administration stated.