photo of yachts at the German port of Kiel, gateway to the Baltic

The HMRC proposals to make UK yachtsmen declare red diesel will only be used in UK waters have caused a furore in the sailing community with widespread coverage on sailing press websites including Yachting Monthly, Practical Boat Owner and Yachting World. The Little Ship Club petition on the subject had attracted 650 signatures by 5pm on Friday 2 March and has positioned the Club at the heart of the sailing community with a story on the Yachting Monthly website on Wednesday 29 February.

RYA beef up their statement

The RYA issued a further detailed statement on Friday 2 March explaining the action they are taking, having been accused by various commentators of being ineffectual in  negotiating on behalf of UK sailors.

Confusion has arisen over the Government announcement on 20 February which directly contradicted the proposed legislation it was supposed to herald.

Although the RYA statement declares, "UK boaters’ current ability to cruise or race to Europe with duty paid marked red diesel in their tank would be unchanged. UK boaters would still need to comply with any applicable regulations of a coastal state, as they do currently."

But in a YM story posted on Friday 2 March, a forum contributor has outlined a case in 2011 where two mega yachts were fined by German customs officers for having traces of red fuel in their tanks.

The captains of the two superyachts in question remained anonymous as lawyers are dealing with the cases, but one was quoted saying:

"We had taken a very small amount of fuel in the US prior to our transport to Europe," said the captain fined in November last year. 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 litre of total capacity.

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

In its statement the RYA says:
"The fight to retain the lawful use of red diesel by UK boaters, either here in the UK or in Europe, is the fight to:

  • ensure continuity of supply for UK boaters in the more remote parts of the UK
  • ensure continuity of supply for UK boaters on the inland waterways
  • ensure lawful use of duty paid marked diesel for UK boaters in Europe".

The RYA statement makes the point that the derogation for selling red diesel was established due to concerns that suppliers, particularly in more remote parts of the country, would limit their supplies to red diesel for commercial use, and yachtsmen would find it difficult to fuel their boats in areas such as the West Country, Scotland and Northern Ireland.

"The problem for UK boaters lies with the proposed revised wording for the declaration, which does not accurately reflect the position under either UK or international law. It would require signatories falsely to acknowledge that they are aware of restrictions on fuel usage that do not exist."

But if Twitter and Facebook traffic is anything to go by, it seems to most in the sailing community that:

  •  it's impossible to buy white diesel at most marinas
  • other EC member states will impose on the spot fines on vessels using dyed diesel, regardless of whether it is legally brought and duty paid
  • the customs tests are extremely sensitive and the slightest hint of red dye in the fuel will result in a fine
  • with other countries using different colours to dye their duty-reduced fuel, confusion reigns and leaves yachtsmen at risk of heavy fines.

The consultation ends on 11 March, take action now