Please select your home edition
Edition
Leaderboard FD July August September 2023

Foreign yachts fined in Europe for 'wrong' fuel

by Lucy Chabot Reed, The Triton/Sail-World Cruising on 14 Aug 2011
The message is clear - only a trace of ’red fuel’ can do the damage SW
Admittedly they were megayachts, but the warning is clear for all cruising sailors headed for Europe after being in America, even for a short time. Two megayachts have been boarded and fined thousands of dollars by German customs officers in Kiel for having red-tinted fuel in their tanks.

The first yacht was ending a summer-long Baltic cruise when it was boarded in November. The most recent incident, which happened in July, came when the yacht was ending a springtime cruise. Neither captain wanted their names or yacht names mentioned since both have obtained lawyers to sort things out. We are honoring their requests.

'They’ve set up a maritime speed trap and captains need to be prepared for this,' said the captain fined in July, who was in New York last month talking to attorneys.

At issue is the red-dyed fuel both vessels took on in the United States before heading to the Baltic. Despite taking on numerous liters of clear, duty-paid fuel after leaving the U.S., some of the U.S. fuel remained to taint subsequent tanks.

Red-dyed fuel in the U.S. is reserved for off-road uses such as marine and farm equipment. It indicates that federal road taxes were not paid, but it is not duty-free. Some yachts will pay state sales tax on their fuel, though yachts leaving the country can sign an affidavit to that effect and avoid state sales taxes. Whether sales taxes have been paid or not, all marine fuel sold in the United States is dyed red.

Red-dyed fuel in Germany is duty-free and also reserved for off-road uses but, as in all European Union countries, is only permitted for commercial vessels. Both megayachts fined are private vessels.

'We had taken a very small amount of fuel in the U.S. prior to our transport to Europe,' said the captain fined in November. The yacht cruised around the Baltic all summer last year, including Scandinavia and Russia, using about 38,000 litres of fuel, which was tax paid and clear.

'But our fuel still had a very light pink color,' he said. 'The chemical tests that customs use are extremely sensitive and will detect unseen quantities of dye. They told me it was illegal to mix tax free with tax paid.'

Customs officials immediately required a 10,000 euro bond to cover the fine that was yet to be determined. And the yacht was taxed 15,000 euros -- about .55 euros per liter of total capacity.

Then the captain had to pump out 8,000 liters of 'contaminated' fuel, clean the tanks, and refuel, he said.

'If you have had any red fuel in your tanks at any time, their tests will show the markers, even if you have used thousands of litres of clean fuel,' the November captain said. 'We are not allowed to fuel up to higher that 90 percent tank capacity, yet customs will tax you on 100 percent capacity, even if you have nearly empty tanks.'

After about seven months, the yacht’s agent was notified that the fine was 2,000 euros, and a month later 8,000 euros were returned to the yacht, the captain said.

Both captains retained all their paperwork showing where and when the fuel was bunkered and all their fuel samples. None of that seemed to deter the German customs officers. Communicating with the officers was difficult and stressful, the English-speaking captains said. The November captain was interviewed by four customs officers and three officers from the serious crime squad for about four hours, he said.

'Even if [Germany’s] duty-free fuel is also red, if the yacht has documentation that they bought the fuel somewhere else, there’s no basis for a fine,' said Marianne Vanstone, a fuel trader with Global Yacht Fuel in Ft. Lauderdale. 'How can they justify it? Looking at all his documentation, they can see he didn’t get the fuel there. That doesn’t make any sense to me.'

All of Europe offers duty-free fuel for commercial vessels, but many of them use different colors to mark it. In Italy and France, duty-free fuel is blue. In the UK, duty-paid fuel is red.

'The rules vary everywhere, but I have to go by what the local supplier tells us,' Vanstone said. 'I feel bad for captains. They’re supposed to magically know all these things, going into all these countries. How can they?'

In September 2008, the 43m M/Y Daydream was asked to leave Croatia over the blue-green fuel in its tanks. Though the charter yacht bought the fuel in France duty-free, Croatia reserved that color dye for its fishing fleet.

The yacht had receipts and paperwork that showed the dyed fuel was bought in France, but the yacht was initially detained (and lost a charter) and then asked to leave. The fines were eventually returned.

'For boats that travel all over the world, this is a disastrous situation,' said the captain of the November incident. 'If you fuel in the UK, Malta, U.S.A., you will get red fuel. Now that they [German authorities] are aware that they can get good income from any boat that has come across, they will always check. It’s easy money.'

'In my opinion, what happened is illegal,' said Silvio Rossi, president of the fuel trading and yacht agent company Rossmare International in Savona, Italy. 'The biggest mistake they [customs officers] make is they confuse supply and consumption.'

Rossi cited Article 4 of the Convention of Istanbul, a continent-wide agreement that says that fuel in the normal tanks as a means of transport shall be admitted into the European Union without payment of import duties and taxes.

'A private boat in Europe cannot be supplied duty-free fuel, but what’s in the tanks when they arrive is completely different,' Rossi said.

Considering how many thousands of yachts enter the EU every year and how many transit between EU countries every year, these sorts of incidents are rare.

'In this case, this is a customs officer who doesn’t know the law,' Rossi said. 'How many yachts arrive in the EU every year? They go everywhere in Europe and nobody declares the fuel they have in their tanks because of the Convention of Istanbul.

'Believe me, it’s illegal what they have done, completely illegal.'

In the July incident in Kiel, customs officers were onboard for 15 hours, that captain said. The resulting fines for fuel and other infractions reached tens of thousands of dollars and include a charge of fraud.

This vessel took red-dyed fuel in Norfolk, Va., before heading off on its voyage. It took on fuel in Newport and Newfoundland, then headed to northern Europe where it took on more fuel before traveling to Germany.

This captain suggested a few ways fellow captains can be prepared for questioning about their fuel.

1. Keep samples of each delivery of fuel. 'I keep ours for a year.'

2. Make sure the oil record book is up-to-date, and note everything, including where you pull the fuel from.

3. Keep a daily bunker report.

4. Save fuel receipts so you can prove you bought your fuel outside the European Union.

This yacht and captain did all those things 'and they still fined us,' but the captain said he is confident the matter will be resolved in their favor.

'All governments are bankrupt,' this captain said. 'Everybody is trying to raise tax money. Germany is bailing out Greece, Florida is looking for more tax revenue. They hope you’ll give in and say it’s not worthwhile and just pay it. But this is a lot of money.'

Despite the hassles, the captain said the owner would like to return to the Baltic.

'It beats the Med. It’s stunningly beautiful with great infrastructure. You have cell service everywhere. and it’s just pristine. If things don’t work out, we’ll just skip Kiel.'

For more interesting articles about superyachts and their captains, check out www.thetriton.com!The_Triton.
RS Sailing 2021 - FOOTERRooster 2025Sydney Boat Show 2025 - Apply to Exhibit

Related Articles

America's Cup entries open on Sunday
A Cup in turmoil - has Grant Dalton dodged a bullet with the new Cup organisation? Updated story: America's Cup got underway in Rome on Monday, with Round 2 of the official welcoming ceremonies on Wednesday in Naples. Emirates Team NZ CEO Grant Dalton appears to have dodged a bullet with the formation of of new AC organising body.
Posted today at 4:19 am
Giorgio Armani Superyacht Regatta day 1
Ideal conditions for starting the Southern Wind RendezVous and Trophy The 2025 edition of the Giorgio Armani Superyacht Regatta, organised by the YCCS with the support of title sponsor Giorgio Armani, got under way right on time today, 28 May 2025 at 11.30 a.m. on the waters off Porto Cervo.
Posted on 28 May
America's Cup Power Plays
And Growing Sailing Through Learning There's always so much speculation and intrigue in-between each edition of the America's Cup. Everyone wants to know what is happening behind closed doors, inside the teams, and when the Challengers meet with the Defender.
Posted on 28 May
2025 is going to be a huge season for IMOCA
Antoine Mermod talks about the season ahead Over the next four years the most exciting monohull class in world offshore ocean racing will take on no less than 17 races, covering tens of thousands of miles of the world's oceans.
Posted on 28 May
America's Cup enthusiastically received in Naples
The Castel dell'Ovo, was the venue for the arrival of the America's Cup in Napes The Castel dell'Ovo, set on the tuft peninsula of Megaride was the outstanding setting for the Official Host Venue Presentation of the Louis Vuitton 38th America's Cup.
Posted on 28 May
Increased Crowds and Unrivalled Showcase
At 2025 Sanctuary Cove International Boat Show The 36th annual Sanctuary Cove International Boat Show (SCIBS) has once again cemented its status as the Southern Hemisphere's premier marine event, drawing an impressive 45,865 visitors over four spectacular days from 22-25 May 2025.
Posted on 28 May
CYCA team to take best shot at the Admiral's Cup
The Australian flag will fly proud on Zen and Back 2 Black The Australian flag will fly proud on Zen and Back 2 Black during the Admiral's Cup to be held in Cowes from the Isle of Wight from 17 July - 1 August.
Posted on 28 May
Doyle Sails: Ragtime blends retro and modern
Launched in 1966, Infidel now Ragtime Sailing, has celebrated her 60th year with a refit Tina Roberts has beautifully restored Ragtime Sailing in honour of her late partner's wishes, choosing Doyle Sails not only for the world-class sails but for the depth of experience, personal commitment, and collaborative support that define the team.
Posted on 28 May
The Ocean's Logbook amplifies global voices
A digital survey that looks beyond cold statistics to capture real stories A powerful new campaign designed to capture the world's emotional connection to the ocean is being launched today ahead of the third United Nations Ocean Conference (UNOC3) in Nice, France in June.
Posted on 27 May
SP80 kiteboat reaches a top speed of over 58 knots
100 km/h barrier is smashed in Leucate The SP80 kiteboat has reached a top speed of over 58 knots, or 108 km/h. This new personal best makes SP80 the second fastest sailboat ever recorded, behind Vestas Sailrocket II and its 68.01-knot top speed.
Posted on 27 May