Background information on the detention of leisure craft on the EU sanctions lists and the process of establishing ownership

On 17 and 18 March 2022, Customs detained 21 leisure craft for further investigation based on the sanctions against Russia. In addition to these, Customs reported one vessel to the enforcement authorities. Customs is currently trying to get a better insight into the ownership of the vessels, and to find out whether individuals or entities on the EU sanctions lists against Russia and Belarus are possibly found behind these vessels.

The EU has imposed extensive sanctions against Russia and Belarus due to Russia’s attack on Ukraine. As the implementing authority, Customs is responsible for the monitoring of export and import sanctions agreed at EU level. Moreover, Customs assists in the identification and localisation of property of individuals and entities on the EU sanctions lists. This include the detention of leisure craft among other things. 

Once the EU had established sanctions lists, Customs aimed its enforcement controls at locating property of individuals and entities on these lists. Controls were made in customs warehouses as well as controls related to temporary tax exemption and inward processing. Leisure craft were found in these controls, and there was reason to investigate further the ownership of individuals and entities found on the EU sanctions lists against Russia and Belarus.

If the grounds for detention are established, Customs forwards the information to the enforcement authority 

Customs detained the vessels so that their ownership can be established in detail. If the established ownership shows that there are grounds for detention of the vessel, Customs notifies the enforcement authority about the vessel. The enforcement officer carries out their own investigation, considers a freezing order and takes the possible necessary steps. Based on legislation, Customs must then terminate the previous detention of the vessel, but that does not mean that the vessel is released for normal use. Instead, the matter has been transferred to the following authority.

If Customs’ continued investigation shows that there no longer are any grounds for the detention, the vessel is released for normal use. 

Establishing the ownership requires extensive cooperation

Establishing the ownership of leisure craft in detail requires multi-faceted cooperation both nationally and internationally. Behind the ownership of some of the vessels are also different cover arrangements, which makes the investigation challenging and it may take a long time.