Short & Sweet no. 7
Which aircraft registrations can be used with Temporary Admission when flying to the EU or UK? 

• Chose the right registration to fly freely
• Where are the pitfalls?
• You might not want to use an Isle of Man (M) registration

We are often asked which aircraft registrations can be used with Temporary Admission (TA) when an aircraft is being used within both the EU and UK by an owner and/or by an operator that resides outside these areas.

Background: the customs aspect of flying within the EU
Any aircraft flying into the EU will fly under customs control using either TA or full importation. There are no other options. If the aircraft is not already fully imported, the aircraft will automatically be considered as flying under TA even though the owner or operator has not themselves taken any action to activate this procedure or realized that their aircraft is flying under TA. The TA procedure is thus always required for non-EU imported aircraft, even for flights with only one stop within the EU. Here, non-compliance with TA will most likely activate a direct payment of the importation taxes for the owner or operator, VAT ranging from 17-27% and customs duty ranging from 2.7-7.7. The TA procedure can only be used by EU outsiders where the aircraft is owned (including any UBOs), operated, registered, and based outside the EU, leaving EU insiders only one option: full importation. EU outsiders can, of course, choose to use full importation instead of TA if they find it beneficial. Both options can be used commercially, corporately, or privately if applied correctly. 

Most aircraft registrations can be used without problems
Most of the popular aircraft registrations can be used with a few exceptions. Please have a look at the table below. Note that that none of the 27 EU aircraft registration can of course be used with TA when flying within the EU. Please be aware that full TA compliance also includes correct handling of various limitations and situations, which is why a compliance test is fundamental before flying to the EU.

* Cyprus, Ireland, and Malta are all inside the customs territory of the Union (EU)
** The Channel Islands are all outside the customs territory of the UK
*** The Isle of Man is inside the customs territory of the UK
**** Both San Marino and Gibraltar are outside the customs territory of the Union (EU)

You might not want to use the Isle of Man (M) registration
It is perfectly fine to use the M-registration or an Isle of Man entity as the owner or operator when flying within the EU, if the total setup meets the requirements for the TA procedure. However, the same setup may create vast problems if flying to the UK. As we anticipate most aircraft will eventually fly to the UK, or that every owner, at least, wishes to have the possibility, we suggest not using an Isle of Man owner entity or M-registration.

This is because an Isle of Man connection means that the aircraft cannot use the TA procedure when flying to the UK, leaving a full UK importation as the only option. In many ways, the HMRC (British customs) has limited the access to aircraft importations for foreign entities unless the imposed VAT (20% of the aircraft’s value) is fully paid without the possibility of reclaiming. The risk is that the aircraft will be impounded by the HMRC.

Our argument is that nobody should use an inflexible aircraft registration or take on extra tax liabilities in another jurisdiction by initiating a full UK importation. Especially as other options for flying to UK exist by merely using one of the aircraft registrations listed on the positive list above. 

How can we help?
If you have questions about the above, please do not hesitate to contact us.