CE Markings
Like
VAT, CE markings can be another confusing area when applying for your boat
finance, but again your mortgage provider will need to see
documentary evidence that the boat your are buying complies with all the
statutory regulations. Whilst you may feel that some of the documents
required by your lender are onerous, they are in your best interest. Even
when you pay for a boat with cash, all the topics covered in this site
should be covered in your own personal checklist.
As with VAT, there are many, many boats in EU waters which are there illegally, either because they are incorrectly marked, or have been imported into the EU with no markings at all. This can be a particular issue at the moment, where sports boats are being purchased in America due to the weak US dollar, and then exported back into EU waters and subsequently sold. If your dealer cannot provide the relevant certificate, find another boat!
Recreational Craft Directive (RCD)
The Recreational Craft Directive 94/25/EC was introduced by the European Commission to ensure a uniform level of safety in the design and manufacture of recreational craft throughout the European Economic Area ( EEA). The directive applies to all boats for sporting and recreational use with a hull length between 2.5 metres and 24 metres and was originally introduced in 1994, came into force on 16th June 1996 and became law on 15th June 1998 after a transition period. The directive also covers certain items of equipment such as ignition protected equipment for inboard and stern drive engines, start in gear protection devices for outboard engines, steering wheels, steering mechanisms and cable assemblies. Fuel tanks, fuel hoses and prefabricated hatches and port lights are also included.
Since the 1st January 2006 the noise and emissions of propulsion engines of recreational craft in Europe have been part of the directive and jet skis are now included.
CE Compliance & Documentation
When placed on the market to sell, or put into service, all boats and yachts built after 16th June 1998 must be accompanied by a Declaration of Conformity. This certifies that the vessel meets the Essential Safety Requirements (ESR) contained in the directive. The vessel must also have an owners manual which contains information regarding the safe use of the vessel. The declaration of conformity accompanies the owners manual and the two documents should stay with the boat when it is being sold. All items covered in the Conformity Certificate must be CE marked unless fabricated with the boat.
Exclusions
So, will you be asked to supply a CE certificate when financing your boat with a marine mortgage -below is a list of those vessels excluded:
- New or second hand boats built/put in service/put on the market/ within the EEA before 16th June 1998
- Canoes, kayaks, pedalos, sailboards, powered surfboards
- Historical replicas
- Vessels built for own use, provided they are not sold for at least 5 years from completion
- Commercial and passenger vehicles - (a chartered yacht is NOT exempt and is still considered a recreational craft despite the fact that money has changed hands.)
- Submersibles, air cushion vehicles and hydrofoils.
Importing Used Boats
The directive requires that used boats being imported and placed on the market or service in the EEA for the first time ( after 16th June 1998 ), must be CE marked, by a specialist company. However the directive makes no special provision for used boats which is a grey area throughout the EEA as each country interprets the legislation differently, and it is frequently impossible for second hand boats to comply. This often means that used boats cannot be CE marked and therefore cannot be legally imported. If you are proposing to finance an imported boat with a marine mortgage, then I would suggest you check the markings carefully and contact the company that issued the certificate to discuss this in more detail. If in any doubt, then find another boat if possible!
Now let's look at another area of boat buying that you need to consider carefully - the issue of the safety of your deposit. Marine mortgages and deposits go hand in hand!
Marinablu International Ltd is an Introducer Appointed Representative of DeNovo Underwriting Agencies Ltd. DeNovo Underwriting Agencies Ltd is Authorised and Regulated by the Financial Services Authority (FSA)