INFORMATION FOR BOATERS

2013

Prepared by Branimir Maer

July 2013

INFORMATION FOR BOATERS Croatia's accession to the European Union has brought certain changes to the rules and regulations relating to the entry and sojourn of foreign sports and pleasure craft in Croatia's inland waters and territorial sea. Specifically, the rules relating to the entry of EU-flagged yachts and small boats as well as the entry of boaters who are EU citizens have been liberalised, even though Croatia is not yet part of the Schengen common travel area. Croatia's accession brings changes for charter firms as well, notably liberalising Croatia's charter market in terms of cabotage rights regarding commercial boats and yachts registered in EU member countries.

1. ENTRY AND SOJOURN OF FOREIGN SPORTS AND PLEASURE CRAFT IN CROATIA

1.1. ENTRY BY SEA

The skipper of a vessel entering the Republic of Croatia by sea is required to sail, by the shortest route, into the nearest designated port of entry for passport control, and must do the following:

1. Go through border control;

2. Have the crew and passenger list endorsed by a port authority main or subsidiary office;

3. Pay the navigation safety fees;

4. Pay the sojourn tax;

5. Report the presence of foreign citizens on the vessel, in accordance with relevant laws and regulations.

1.2. ENTRY BY LAND OR FROM OVERWINTERING The skipper of a vessel that was brought into the Republic of Croatia by land or has been kept in a harbour or other approved location within the country must do the following prior to setting sail:

1. Pay the navigation safety fees;

2. Pay the sojourn tax;

3. Report the presence of foreign citizens on the vessel, in accordance with relevant laws and regulations.

1.3. NAVIGATION SAFETY FEE AND OTHER FEES AND CHARGES Before Croatia's accession to the EU skippers of foreign vessels were required to purchase a vignette that combined the navigation safety fee, the aids to navigation fee, and the maritime chart fee. After Croatia's accession to the EU skippers are still required to pay the navigation safety fee, the aids to navigation fee, and the maritime chart fee, but actual vignettes will no longer be issued and will be replaced by fee receipts. Vignettes purchased in the course of 2013 remain valid until expiration. Table 1: Navigation safety, aids to navigation and chart fees calculator

Vessel length Navigation

safety fee in kunas

Aids to navigation fee

in kunas

Chart fee in kunas

Administrative charge in kunas

TOTAL in kunas

Under 2.5 metres

140.00 40.00 20.00 40.00 240.00

2.5-4m 210.00 40.00-60.00 20.00 40.00 310.00330.00

4-5m 280.00 8000 20.00 40.00 420.00

5-6m 350.00 100.00 20.00 40.00 510.00

6-7m 525.00 120.00 20.00 40.00 705.00

7-8m 630.00 140.00 20.00 40.00 830.00

8-9m 735.00 160.00 20.00 40.00 955.00

9-10m 840.00 180.00 20.00 40.00 1,080.00

10-11m 945.00 200.00 20.00 40.00 1,205.00

11-12m 1,050.00 220.00 20.00 40.00 1,330.00

12-13m 1,225.00 480.00 20.00 40.00 1,765.00

13-14m 1,225.00 520.00 20.00 40.00 1,805.00

14-15m 1,225.00 560.00 20.00 40.00 1,845.00

15-16m 1,400.00 600.00 20.00 40.00 2,060.00

16-17m 1,400.00 640.00 20.00 40.00 2,100.00

17-18m 1,400.00 680.00 20.00 40.00 2,140.00

18-19m 1,400.00 720.00 20.00 40.00 2,180.00

19-20m 1,400.00 760.00 20.00 40.00 2,220.00

20-21m 1,575.00 800.00 20.00 40.00 2,435.00

21-22m 1,575.00 840.00 20.00 40.00 2,475.00

22-23m 1,575.00 880.00 20.00 40.00 2,515.00

23-24m 1,575.00 920.00 20.00 40.00 2,555.00

24-25m 1,575.00 960.00 20.00 40.00 2,595.00

25-26m 1,575.00 1,000.00 20.00 40.00 2,635.00

26-27m 1,575.00 1,040.00 20.00 40.00 2,675.00

27-28m 1,575.00 1,080.00 20.00 40.00 2,715.00

28-29m 1,575.00 1,120.00 20.00 40.00 2,755.00

29-30m 1,575.00 1,160.00 20.00 40.00 2,795.00

30-31m 1,750.00 1,200.00 20.00 40.00 3,010.00

31-32m 1,750.00 1,240.00 20.00 40.00 3,050.00

32-33m 1,750.00 1,280.00 20.00 40.00 3,090.00

33-34m 1,750.00 1,320.00 20.00 40.00 3,130.00

34-35m 1,750.00 1,360.00 20.00 40.00 3,170.00

over 35m 1,750.00 length X 40.00 20.00 40.00 3,170.00 + length X

40.00 No fees are levied on vessels under 2.5m in length and under 5kW in engine power. The navigation safety fee is reduced by 10% for each consecutive payment, up to a maximum reduction of 50%. Less the navigation safety fee reduction for consecutive payments.

From 1 April 2014 a navigation safety and pollution prevention fee will be levied on foreign vessels. The amount will vary according to the vessel's length and engine power, and will be levied on the calendar year basis, irrespective of the length of time the vessel sails in Croatian territorial sea and inland sea waters.

1.4. SOJOURN TAX

The owner or user of the vessel is required to make a lump sum sojourn tax payment for him/herself and all the other persons spending the night on the vessel. For the purposes of sojourn tax, a vessel is defined as any craft over 5 metres in length with built-in bunks, used for holidaying, recreation or cruising, and which is not a boating tourism craft. The sojourn tax is paid at port authority main or subsidiary offices, prior to sailing out: the tax is paid when there are persons on board and overnighting in tourist marinas or in yachting sections of public ports. Port authority main and subsidiary offices are required to issue sojourn tax receipts to boaters who have paid the tax. The boater sojourn tax lump sum is calculated based on vessel length and the length of time for which tax is paid. The sojourn tax receipt must be kept on the vessel and the skipper is required to produce it when asked to do so by an authorised official.

Table 2: Boater sojourn tax lump sum rates by vessel length and tourist vignette validity period

5-9 m 9-12 m 12-15 m 15-20 m over 20 m

under 8 days 150 HRK 200 HRK 300 HRK 400 HRK 600 HRK

under 15 days 300 HRK 350 HRK 400 HRK 500 HRK 800 HRK

under 30 days 400 HRK 500 HRK 600 HRK 700 HRK 1,000 HRK

under 90 days 600 HRK 650 HRK 750 HRK 850 HRK 1,300 HRK

under 1 year 1,000 HRK 1,100 HRK 1,300 HRK 1,500 HRK 1,700 HRK

1.5. LETTER OF AUTHORISATION REQUIREMENT A vessel owned by a natural person or persons, cruising in Croatian waters, may, while at sea, carry the vessel's owner, the owner's close family members and persons authorised in writing by the owner. The owner's signature on the letter of authorisation must be endorsed by a Croatian or foreign competent authority. A vessel owned by a legal person, sailing in Croatian waters, may, while at sea, carry the legal person's employees or persons authorised in writing to use the vessel. The letter of authorisation for vessels owned by a legal person must include: a clearly legible full name of the legal person's responsible officer who signed its letter of authorisation and endorsed it with a seal, the time period in which the vessel will be used, the full name of the person in command of the vessel if it has no permanent crew, and the names of all the persons who will be on board the vessel during the time period covered by the letter of authorisation.

2. DOCUMENTS TO BE KEPT ON BOARD Any vessel sailing in Croatian waters must be able to show, for the purposes of control, the following original documents:

1. Proof of payment for all the fees and taxes levied;

2. Proof of the vessel's seaworthiness;

3. Proof of the skipper's competence to operate the vessel, in accordance with the regulations of the vessel's flag country or Croatian regulations;

4. Proof of third party insurance ;

5. Proof of ownership or a letter of authorisation to use the vessel.

3. SMALL BOATS AND YACHTS OPERATOR CERTIFICATES Persons in command of small boats and yachts must possess the relevant training in accordance with the laws and regulations of the vessel's flag country; if the flag nation's laws and regulations do not require the possession of such training, Croatian laws and regulations shall be implemented instead. The skipper of a Croatian-flagged boat or yacht must possess, depending on the category of vessel, a Certificate of Competence for Pleasure Craft, a Yachtmaster's Certificate of Competence, or a certificate/license for operating small boats and yachts issued by a foreign nation's authorities and recognised by Croatia's Ministry of Maritime Affairs, Transport and Infrastructure. The list of recognised foreign-issued certificates/licenses can be found on the Ministry's website at: http://www.mppi.hr/UserDocsImages/TABLICA%20(2)MoU%206-2_13.pdf.

4. LEAVING CROATIAN WATERS Before leaving Croatian waters the vessel's skipper is required to:

1. submit to border controls; 2. have the list of crew and passengers endorsed by a port authority main or subsidiary office.

On discharging these obligations, the vessel's skipper must take the shortest course out of Croatia's inland sea waters and territorial sea.

5. FOREIGNER SOJOURN REGISTRATION Foreign citizens that will sojourn on board the vessel must be registered with:

the police station responsible for border control in the port where the vessel goes through border control (if the foreign citizen is entering Croatia on board the vessel in question), or

the nearest local police headquarters or police station (if the foreign citizen is coming aboard in Croatia)

Legal and natural persons providing berths in tourist marinas are required to register a foreign citizen's sojourn with the police when the foreign citizen first comes aboard the vessel of sojourn, as well as when a foreign citizen previously registered by another marina is on board the vessel in the berth.

5.1. CITIZENS OF EUROPEAN ECONOMIC AREA (EEA) COUNTRIES

Citizens of EEA member countries may enter the Republic of Croatia if:

1. they possess a valid travel document or national identification card,

2. are not barred from entering and residing in Croatia,

3. are not a threat to public policy, national security, or public health.

Citizens of EEA member countries may enter Croatia without a visa or residence permit and may stay in the country for up to three months from the day of entry. EEA citizens intending to stay in Croatia for a period exceeding three months are required to register their temporary residence with the local police headquarters or police station, no later than 8 days after the original three months have expired.

6. CUSTOMS AND TAX STATUS OF FOREIGN SMALL BOATS AND YACHTS

On the day of its accession to the EU Croatia became part of the EU customs union. From that day, EU residents who own vessels registered in the EU that have been temporarily imported into Croatia and either do not have the customs status of Union goods or have lost it, and those who own vessels registered in third countries that have been temporarily imported by EU residents, are required by EU customs legislation to file a customs declaration for the release of their vessels on payment of customs duties and Value Added Tax. The transition period in which the owners of such vessels can either leave the territory of the EU or release the vessels will last through March 2014.

Sports and pleasure craft under third country flags and owned by third country legal and/or natural persons may keep their temporary import status in accordance with customs legislation.

6.1. FOREIGN SMALL BOATS AND YACHTS THAT ARE NOT CONSIDERED TO BE UNION

GOODS

Following Croatia's accession to the EU, sport and pleasure craft registered in EU member countries or owned by EU legal and/or natural persons may no longer be kept in Croatia as temporary imports. All such vessels remaining in Croatia after 1 July 2013 must have their status regulated in the transition period by one of the following methods:

1. Leaving the territory of the EU

2. Filing a customs declaration for the release of the vessel in Croatia

3. Filing a customs declaration for the release of the vessel in another EU member state

6.2. VESSELS OLDER THAN 8 YEARS BEFORE CROATIA'S EU ACCESSION DATE In accordance with EU legislation, implemented into Croatia's national legislation, vessels for which the temporary importation process was initiated prior to 1 July 2013 and which were first used more than 8 years before the date of Croatia's EU accession are not subject to Value Added Tax when released in Croatia. The vessel's first registration serves as evidence of first use.

6.3. FOREIGN SMALL BOATS AND YACHTS THAT ARE CONSIDERED TO BE UNION GOODS Owners of vessels which are in the process of temporary importation into Croatia and are considered to be Union goods are also required to file a customs import declaration for the release

of the vessel. No VAT or customs duties are paid on the vessel on its release in Croatia provided that proof of its customs status of a Union good is produced. A certificate issued by competent tax and customs authorities of the vessel's flag country serves as proof of the vessel's customs status of a Union good.

7. SOURCES

- Regulation on the Entry and Sojourn of Foreign Sport and Pleasure Craft in the Inland Sea Waters and Territorial Sea of the Republic of Croatia (2013)

- Order on the Amount of Navigation Safety Tax Paid by Foreign Small Boats and Yachts (Croatian Official Gazette [Narodne novine (NN)] 2/05)

- Foreign Citizens Act (Official Gazette 130/11, Official Gazette 74/13) - Sojourn Tax Act (Official Gazette 152/08, NN 59/09) - Regulation on the Vignette's Form, Content and Validity Period, Place of Affixation, and

Issuing and Recording (Official Gazette 26/10) - Regulation on 2013 Sojourn Tax Determination (Official Gazette 70/12) - Value Added Tax Act (Official Gazette 73/13) - European Commission: TAXUD/A2/SPE/2013/058-EN - www.mppi.hr - www.mint.hr - www.porezna-uprava.hr - www.carina.hr