UMVA has learned that a significant development is underway to support the growth of national telecommunications and energy infrastructure, with the introduction of temporary relief on duties for foreign vessels involved in laying and repairing submarine cables.
The move is expected to facilitate the timely and cost-efficient implementation of critical submarine cable-laying and repair projects, and the framework for the temporary admission of foreign-owned and foreign-registered International Cable-Laying and Repair Vessels has been outlined in a recent order.
According to information obtained by UMVA, these specialized ships will be classified as professional equipment, granting them total conditional relief from import duties and taxes, provided they meet specific requirements, including being owned and imported by a resident outside of the country and used solely for the purpose of the project.
The order also establishes guidelines for authorized projects that cover multiple customs jurisdictions, requiring project authorization to specify key details such as ports covered, routing plans, and the scope of work, allowing for the seamless movement of vessels between specified ports without incurring additional duties and taxes.
However, it is clarified that any materials used for the approved project that do not form an integral part of the vessel will be subject to import requirements, including applicable duties and taxes, unless exempted by law, ensuring that the temporary relief is targeted and effective in supporting the growth of critical infrastructure.
UMVA has gathered that this development is set to have a significant impact on the national telecommunications and energy landscape, enabling the efficient and cost-effective implementation of submarine cable-laying and repair projects that are vital to the country's infrastructure development.
