The Government of the Virgin Islands has amended the Commercial Recreational Vessels Licensing Act, 1992 (the CRVL), the Cruise and Home Port Permit Act, 2001 (the CHPP), and the Customs Management and Duties Act, 2021 (the CMDA). The amendments, passed on December 31, 2024, will take effect on June 1, 2025.
The CRVL and the CHPP govern commercial recreational vessels in the British Virgin Islands (BVI), while the CMDA regulates and manages customs operations within the BVI.
Benefits for the Virgin Islands maritime industry
The amendments benefit the continued development of the Virgin Islands as a well-regulated maritime destination. They introduce clear licensing categories, reducing ambiguity for vessel owners and agents.
Structured systems encourage equal treatment of foreign and home based vessels, discourage the exploitation of the Virgin Islands’ natural resources by foreign operators, protect local charter businesses, and encourage local investment in the maritime industry.
Additionally, there is added protection against illegal trade, ensuring that only safe and lawful vessels and operations enter and exit the Virgin Islands’ waters.
Most importantly, the amendments will streamline commercial recreational operations and increase safety in the Virgin Islands by making it mandatory for captains of larger vessels to be licensed and certified. Finally, balancing operational freedom and regulatory measures strengthens BVI’s position as one of the world’s premier sailing destinations.
CRVL KEY AMENDMENTS
The CRVL aims to introduce several changes to the framework that guides commercial recreational vessels.
Update and introduction of definitions
- Definitions for “home based vessel,” “operator,” “Commissioner,” and “commercial vessel” have been updated, and new definitions have been introduced for “BVI vessel,” “foreign-based water taxi,” and “large yacht.”
- The definitions create a clear distinction between home based and foreign-based vessels.
Licensing framework
- Licences will apply to specific vessels as opposed to owners or fleets, and a licensed operator can be disqualified from applying for a licence for a specific vessel if the operator commits certain offences under the CHPP.
- Licences will be valid for one year from the date of issuance rather than from 1November in the year of issuance.
Regulatory limitations
- Foreign-based commercial vessels must pay and obtain an annual security clearance for every crew member before the crew enters the Virgin Islands.
- Foreign-based vessels are restricted to seven charters annually, including pick-ups and entries, except for large yachts or foreign-based commercial recreational vessels licensed without conditions, which will have unlimited charter entries but no more than seven pick-ups annually.
- Foreign commercial vessels will not be permitted to remain in Virgin Islands waters for more than sixty continuous days without additional permits or penalties.
- Vessels licensed under these conditions can obtain three consecutive off-charter extensions for thirty days, subject to administrative fees. However, a temporary importation permit is required for non-commercial vessels or commercial vessels with less than 500 Gross Registered Tonnage staying in the Virgin Islands for more than 180 days.
Intra-trading
- Non-BVI vessels will require licences and waivers to trade between two harbours, ports or anchorages within the Virgin Islands. A waiver will only be granted subject to Port State Control inspections and payment of applicable administrative fees. Small Cruise ships and licensed commercial recreational vessels are exempted.
Fee schedule
- The amendments to the fee schedule are designed to ensure a precise fee classification, and operators are charged based on their vessel type, size and usage.
CHPP KEY AMENDMENTS
The amendments aim to enhance the guidelines set in the CHPP. They introduce modified requirements for home based charter vessels, expound on operational conditions for foreign and national vessels and implement penalties for non-compliance.
Update and introduction of definitions
- The amendments introduce definitions for “BVI vessel” and “commercial vessel” and update the definition of “home based” vessel.
- By definition, a home based vessel must be registered, have an established base of operations and be managed by a company registered in the Virgin Islands for a minimum of five months during a twelve-month period.
Operational conditions for home based charter boats
- At least 70 percent of charters by home based vessels must originate in the Virgin Islands.However, allowance is made for a maximum of four charters of the season to originate out of the Virgin Islands, provided that each charter itinerary includes the Virgin Islands.
- The amendment stipulates that home based vessels spend at least 15 days per month in the Virgin Islands from December to April, with break periods of no more than five consecutive days.
- Licensed operators are mandated to provide reports to the Commissioner of Customs detailing the inward and outward clearance of the home based vessel on the last Friday of every month.
Cruising permit exemptions
- Registered tenders, vessels under 15 feet used as bareboats for pleasure, villa-owned recreational sailing vessels under 26 feet, and power vessels under 21 feet will be exempt from the requirement to obtain cruise permits, provided the vessel operates within one mile of the villa or hotel Base.
- Residents are exempted from paying for cruising permits at the per person per day rate.
Mandatory appointment of agents
- Charter boat owners will be required to appoint an agent to act on their behalf, followed by notification of the appointment to the Commissioner.
Prohibitions
- Foreign-based bareboat charters over 60 feet in length will be prohibited from operating in BVI waters unless under the command of a captain, master, or boatmaster holding a license recognized by the vessel’s flag state.
Offences and penalties
- Where an operator of a home based vessel allows a vessel to contravene the operational conditions stipulated by the CHPP, fails to meet reporting obligations, or submits false information, any cruising permit issued to that operator shall be cancelled. The vessel will be disqualified from holding a licence for two years, even if the vessel’s ownership changes during that period. Also, the vessel operator will be fined when false documents or reports are submitted.
Fee schedule
- The amendments to the fee schedule set out precise, standardized rates, which are unequivocal for vessel operators.
CMDA KEY AMENDMENTS
The CMDA amends the Customs Management and Duties Act, 2010, focusing on exempting BVI vessels from import duties.
Extension of duty-free import period
- The amendment extends up to 180 days within 12 months, the time frame for a vessel owned by residents and usually moored outside the Territory to be imported duty-free.
Schedule 5
- The bill provides for vessels owned by a BVI Company and registered in the Virgin Islands to be added to the category of items that are exempt from import duties.
- If the vessel is disposed of while located and operated in the Virgin Islands, duty must be paid based on the vessel’s value, except if the BVI Company notifies the Commissioner of Customs before disposal of the vessel.
- However, no duty is required upon disposal if the vessel is transferred to a BVI Company and remains registered in the Virgin Islands.
If you have questions or need assistance, please contact the author, Hermia Tench at +1 284-393-5800 or htench@onealwebster.com
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2024 Fee Schedule under the CRVL
| Home Based | Per Annum | |
| A. A vessel not exceeding 40ft length | $800 | |
| B. A vessel exceeding 40ft but not exceeding 50ft length | $1,200 | |
| C. A vessel exceeding 50ft but not exceeding 60ft length | $1,600 | |
| D. A vessel exceeding 60ft length (BVI owned and flagged) | $2,000 | |
| E. A vessel exceeding 60ft but not exceeding 115ft length | $4,000 | |
| F. A vessel engaged in Diving, Day Trips but not offering accommodation and not exceeding 40ft length | $400 | |
| G. A vessel engaged in Diving, Day Trips but not offering accommodation exceeding 40ft but not exceeding 115ft length | $800 | |
| H. A vessel engaged in Water Taxi service not exceeding 12 passengers capacity | $400 | |
| I. A vessel engaged in Water Taxi service exceeding 12 passengers capacity | $800 | |
| Foreign-Based Term Charters | Per Annum | Per Cruise |
| A. A vessel not exceeding 115ft Length (restricted by section 9) | $7,500 | $1,200 |
| B. A vessel not exceeding 115ft Length (unrestricted) | $24,000 | $1,200 |
| C. A vessel engaged in Diving, Day Trips but not offering
accommodation |
$12,500 | |
| D. A vessel engaged in Water Taxi service | $2,500 | |
| Large Yacht/Mega Yacht | Per Annum | Per Cruise |
| A. A vessel exceeding 115ft but not exceeding 150ft length | $7,500 | $2,000 |
| B. A vessel exceeding 150ft but not exceeding 250ft length | $8,500 | $2,500 |
| C. A vessel exceeding 250ft length | $10,000 | $3,500 |
| Intra-trading | Per Annum | |
| To engage in intra-trading | $500 | |
| Importation Permit | Per Annum | |
| Temporary Importation Permit | $600 | |
2024 Fee Schedule under the CHPP
| CLASSIFICATION | RATE | FEES |
| Cruising Permit | ||
| Home Based Charter Boats | Per person per day | $4 |
| Foreign Based Charter Boats | Per person per day | $16 |
| Home Port Small Cruise Ship | Per person per day | $5 |
| Approved Cruise Ship | Per person per day | $8 |
| BVI Vessel: | ||
| Term charter vessel | Per annum | $5,500 |
| Per person per day | $4 | |
| Day trip vessel | Per annum | $6,000 |
| Per person per day | $4 | |
| Workboat, Hotel Boat or Other Vessel transporting guests, crew, staff or workers of an establishment between a nominated point of departure and a nominated point of arrival; and moving directly from one nominated point to another with no stops | Per month | $150 |
| Per annum | $600 | |
| HOME PORT & SPECIAL PERMITS | ||
| Home Port Permit | Per annum | $1,500 |
| Special Permit | Per cruise | $500 |
