Éamon Ó Cuív (Galway West, Fianna Fail)
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49. To ask the Minister for Finance if boats sent for repair to the island of Great Britain, in which substantial work is carried out on them, are liable for tariffs and VAT on return to Ireland; if so, if they are the relevant rate and method of assessment for same; the details of the ongoing discussions to sort out such issues; and if he will make a statement on the matter. [10801/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that goods being sent to the UK for repair can avail of the Outward Processing procedure. Under the EU-UK Trade and Cooperation Agreement (Article GOODS 8), goods can be exported from Ireland to the UK for repair with no customs duty due when the goods are imported into the UK and when the goods are re-imported into Ireland. Similarly, no charge to VAT on import arises. The export declaration must state that the goods are for repair as provided for under the EU-UK Trade and Cooperation Agreement. When the goods are returned to Ireland after repair the import declaration must also state that the goods are returned repaired.

I am advised by Revenue that for the purposes of the procedure as outlined, repair means any processing operation undertaken to remedy operating defects or material damage. It must entail the re-establishment of the good to its original function or to ensure compliance with technical requirements for its use. Repair of a good includes restoration and maintenance, with a possible increase in the value of the good from restoring the original functionality of that good, but does not include an operation or process that:

- destroys the essential characteristics of a good, or creates a new or commercially different good;

- transforms an unfinished good into a finished good; or

- is used to improve or upgrade the technical performance of a good.