How to Import Yachts in India in 2024: A Comprehensive Guide

• Import duties and taxes are applicable on the import of yachts and boats. 
• The applicable duties and taxes depends on several factors such as the type of yacht, its value, its size, etc.
  
  

Before discussing how to import yacht in India, the first question that arises is what type of yacht do you plan to import: 

• Commercial Vessel
• Houseboat
• Motor Catamaran
• Motor Yacht
• Motor Sailor
• Research Vessel
• Sail Catamaran
• Sailboat, Classic
• Sailboat, Cruising
• Sailboat, Racing
• Sport Fisher
• Trawler

Further, to begin answering HOW TO IMPORT YACHTS IN INDIA, let's

be very clear that it certainly is possible to legally import yachts into India without paying the applicable duties and taxes if one meets certain conditions.

Except for those exempted, attempting to import yachts into India without paying the applicable duties and taxes would be considered tax evasion and could result in serious consequences such as fines, penalties, and even criminal prosecution.

Structure of Duty FOR YACHTS 

Unless otherwise exempted, duty applicable on import of Yachts is as described below.

Importing a yacht in India involves several steps, including research, finding the right yacht, completing the purchase, and taking care of the legal and logistical aspects.

HOW TO IMPORT YACHTS IN INDIA

If you are looking to import a yacht into India, it is important to consult an experienced Import Consultant like MULTIMODAL to understand the applicable duties and taxes and ensure that you comply with all the necessary regulations.

We can guide you through the process of importing the yacht and help ensure that the correct duties and taxes are paid.

Often times small yachts are referred to as “day boats” or “weekenders” and typically have a starting cost of anywhere from $500,000 to $2,500,000. These boats boast a simple design, highlight open layouts, can have 1-2 staterooms, and are ideal for short trips, inshore fishing, or day cruises.

With spacious lounges, gourmet kitchens, and state-of-the-art entertainment systems, these yachts provide the perfect setting for relaxation and entertainment.

Built for long-range cruising, they offer the freedom to explore remote destinations. Prices for large yachts can range anywhere from $6 million to $15 million or more, reflecting their quality and features.

Owning a yacht in this category is about embracing a lifestyle of luxury, adventure, and creating unforgettable memories.

These are the floating mansions of the seas, measuring over 78 feet in length in technical terms, but for the sake of simplicity, we’re going to say anything over 90 feet.

These yachts typically display a price tag starting at $10 million and only go up from there.

These luxury yachts are the epitome of opulence, usually equipped with multiple decks, and showcase features such as swimming pools, gyms, jacuzzis, helipads, and even mini submarines. They are the ultimate symbol of wealth and indulgence.

THE COST OF A MEGA YACHT

This incredible feat of engineering and luxury comes with a jaw-dropping price tag of approximately $600 million. 

The price can vary greatly depending on various factors. From the more affordable day boats to the extravagant superyachts, the world of yacht ownership offers something for everyone.

So, if you have the resources and a deep love for the ocean, why not make the dive into the world of yacht ownership? Who knows, you may soon find yourself cruising into the sunset, embracing a life of luxury and exciting adventures!

GOVERNMENT OF INDIA
GUIDELINES FOR IMPORT OF ALL TYPES YachtS

MINISTRY OF SHIPPING (SHIPPING WING) has delineated that the following guidelines be followed for import of all types of ships/ vessels without license:

1. TECHNICAL CLEARANCE :

1.2 DG (S), on request from an interested party, may provide a check list of IMO conventions/regulations/protocols and other statutory requirements/pre-requisites of Indian Maritime Administration for registering the vessel/ship under Indian flag.

1.3 Prior technical clearance would be required for vessels of and above 25 years of age. The vessels, on arrival in India, would be surveyed by P.O., MMD and deficiency, if any, removed before Registration.

2. PRICE REASONABLENESS :

2.1 No price reasonableness certificate will be required for import of vessels.

3. ACQUISITION OF VESSELS UNDER BAREBOAT CHARTER-CUM- DEMISE (BBCD) ARRANGEMENT:

(i) Technical clearance : As per para 1 above.
(ii) No price reasonableness certificate is required. However, interest margin on rental payments will be verified by ICICI.
(iii) The charter period of the vessel will be for a maximum period of 5 years.
(iv) The rental agreement will come into force after the RBI takes it on record.

4. Ship Acquisition Licence Committee (SALC) constituted vide this Ministry's O.M. No. SW/MDO/111/86 dated 1st April, 1987 stands abolished.

5. These guidelines are issued in supersession of this Ministry's O.M. No. SD-11018/1/97- MD dated 24th September, 99 and Press Notes No. SW/MDOI/111/86/MD dated 29th March, 1995 and 13th September, 1995.

 SHIPPING AND TRANSPORT

HOW MUCH DOES IT COST TO IMPORT A BOAT OR A YACHT FROM OVERSEAS?

Yacht and Boat shipping rates are based on quite a few factors including:

• The physical location of the boat and if it needs to be lifted from the water or needs a cradle built
• The overall dimensions of the yacht or vessel including the support trailer or cradle
• Required transport method, i.e. roll on roll off/ lift on lift off or water to water service
• Final destination country

MULTIMODAL representatives will work with you to create a custom quote specific to your needs for your international boat shipment or yacht transport from overseas.

WHY IMPORT A YACHT FROM OVERSEAS WITH MULTIMODAL?

MULTIMODAL is an international shipping company with over 20 years of experience. We understand the intricate process and the detailed preparations that need to be made for your boat transport from overseas.

Whether it’s a 20 foot Nautique or 200 foot yacht, you only need to deal with just one service provider for all aspects of the move.

With MULTIMODAL as your boat shipping company we help you work out a plan that will make the relocation of your vessel from overseas as easy and pain free as possible.

HOW TO import A YACHT OR BOAT from OVERSEAS

HOW INTERNATIONAL BOAT SHIPPING WORKS

Whether your boat or yacht is in the water, on a cradle or on a trailer, we first need to get the overall dimensions of the unit including the cradle or trailer. Most origin ports have the necessary equipment and facilities to handle international boat shipments from the small to the very large.

Depending on your final destination, service requested and the location of your boat, it may depart from different locations across the globe.

3 Methods for Shipping a Boat FROM Overseas

The three main ways to ship a boat or yacht internationally include Lift on Lift off(LoLo), Roll on Roll off(RoRo) and Semi-Submersible.

Below is a short description of how each works.

Roll on Roll off Shipping:

Customers with Boats on trailers most often select RORO as their service option. When shipping boats by RORO, they simply roll onto the deck of the shipping vessel and roll off at the final destination.

Boats on cradles can ship this way too, but the cradle is positioned on a rolling flat rack provided by the shipping line, and used to maneuver the unit into position on the vessel and off at final destination.

There is usually a height restriction for RORO service of 15ft but that can vary from line to line.

Lift on Lift off Boat Shipping:

Some boats are too big for RORO and may need to be lifted onto the deck of the ship by crane, where they are blocked and strapped into position.

This service has no height restriction as they are stored for the duration of the sailing on the upper deck of the liner. There are additional crane fees for this service at origin and destination.

Water to water via a semi-submersible vessel:

For larger super boats and yachts, there are specially built semi-submersible vessels that can take these boats literally out of the water and drop them back into the water at destination.

The carrier vessel drops it deck below water level and the boats move into position above the deck. Divers secure the boats into position and once they are all in place, the vessel rises from the water. This is an amazing process to witness.

Such yacht-carriers are semi-submersible, which means the ship’s cargo bay fills with water to allow the boats to pull into the ship. Once they’re loaded and fastened, the water is drained for the ocean voyage. The process is reversed when the ships get to their destination.

How the WATER TO WATER VIA A SEMI-SUBMERSIBLE VESSEL Works:

First, the vessel submerges to allow the yachts to sail in the dock bay without hitting the deck.

All aboard! The yachts are in, but there is still plenty to do to prep for delivery.

The yachts’ engines are switched off and divers enter the water to determine the clearances for each vessel. This helps determine where rubber mats and wooden cribbing blocks are placed. Divers also put the prepared temporary supports in place.

Later the deck will be drained and supports are fastened in place by welders.

A deck’s eye view of the yachts with their sea fastenings in place.

Boats secured, the cargo ship heads to its destination.

FORMALITIES TO BE OBSERVED FOR REGISTRATION AS INDIAN SHIP

The general formalities that owner of the yacht, desiring to get it registered, have to follow include:

1. A declaration of ownership in the format of one or the other prescribed forms for declaring the possession of the yacht.
2. A certificate that carries the signature of the manufacturers of the ship accompanied by the details of the ship including the tonnage of the ship, time and place of manufacture.
3. Before registering the vessel, the registrar is required to obtain approval of the Director General of Shipping, who is authorised to assign unofficial number to the vessel. Please add this as a separate heading.

APPROVAL OF DG OF SHIPPING

Approval of Director General of Shipping is subject to application. On receipt of application, DG, in his official capacity directs for an inspection of the vessel to be to be conducted.

However, prior to giving such direction for inspection, DG must satisfy himself of certificate updates and insurance guarantee by the owner. Once satisfied, DG allows survey of vessel and if fit, declares the vessel as seaworthy.

CERTIFICATE OF SURVEY

Once the registrar is satisfied that the proposed vessel possess sufficient potential to acquire recognition of an Indian ship, he then arranges for a survey of the ship in order to calculate the tonnage of the vessel for the purpose of issue of certificate of survey.

This certificate is a highly document in this regard as is laid down by the following provision:

Section 220 of Merchant Shipping Act necessitates the issuance of a certificate of survey – No ship to carry passengers without a certificate of survey

• It declares that no passenger vessel shall carry 12 passengers or more from any place/port in India to any place/port lying outside the territorial boundaries, unless a certificate of survey has been issued to such vessel applicable to the voyage on which the vessel is about to proceed.

• In event of any ship attempting to leave port without such certificate, Customs collector or any other pilot on board are authorised to detain such vessel until a certificate of survey is issued to it.
• After the aforementioned are completed, the Registrar issues a carving and marking note to the vessel.
• On fulfilment of the preliminaries to registry, the Registrar finally lays down the details of the ship:

1. Name of the ship and the port to which she belongs.
2. Details contained in the Surveyors Certificate.
3. Particulars respecting her origin as revealed in the declaration of ownership.
4. The name and description of her registered owner
5. Name of the Master, in the Registry Book. The Registrar issues thereafter to the owners a certificate of registry retaining the Surveyor’s certificate, builders certificate, instrument of sale by which the ship was sold, and the declaration of ownership.

PORT CLEARANCES

These are issued for the purposes of regulating the entry and exit of vessels. Be it a ship or yacht, the clearance is granted only when the documents of the vessel, carrying all the details of the ship and the documents of the officers are stated correctly by the administrative authority and in charge of the vessel. Port clearances also facilitate the maintenance of records of emigration and immigration.

RADIO LICENSE

For conventionally-equipped and Global Safety System (GMDSS) equipped vessels, full-term licenses are granted for a term of 4 years.

INSURANCE CERTIFICATE

It is a legalised document that takes into its ambit all sorts of damages and loss caused to the cargo during transit while insurance is implemented against an open marine policy. In some situations, the shipper may release a document which declares that shipment has been insured against a given open policy.

PURCHASE AGREEMENTS

Ensure yourself that the purchase agreement leaves you space open to cancel the deal in the event of vessel not making up to your expectations standards. Beware of ambiguous clauses in the agreement and ask for interpretation, if needed. In case the seller warrants the repair of deficiencies, stipulate a clause regarding that in the agreement. This eliminates the possibility of seller overlooking the repairs as satisfactory.

YACHT SURVEYORS

Before purchase, it is recommended that a report submitted by surveyor is used as prime source of information to base the decision of purchase. One should avoid taking advice from yacht brokers or others who have a conflict of interest. Another important consideration is to ensure that surveyor has sufficient time to perform his job and write a report. Avoid rushing through the decision on persuasion of a broker and provide surveyor adequate time.

PARKING THE YACHT

Appropriate parking place for yacht is important while purchasing one. A marina involves basin/dock supplemented with moors for yachts. Emplacement – Marinas may be situated near the brim of rivers connecting to larger water bodies.

ESTIMATION

Calculate the full cost of ownership, including depreciation, interest, insurance, dockage, fuel and repairs. Figure maintenance as an annual percentage over the period of ownership.

CONCLUDING THE DEAL

Solid homework and research is essential to acquire a clear and unambiguous understanding of available designs and their respective prices. One also needs to have a generous amount of knowledge regarding repairs and its costs. Hence, the core lies at how efficiently one can analyse and visualise the purchase in light of these facts.

BON VOYAGE!

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