Prepared by Francesco Pizzo and Edoardo Baini
With the official notice dated March 4, 2025, the Italian customs Authorities provided clarifications on the treatment, under excise duty and VAT perspectives, of goods sent to offshore platforms and intended to be used in the territorial waters, that is, within the EU customs territory.
In particular, following the entry into force of Legislative Decree no. 141/2024 (concerning the introduction of national complementary provisions to the Union Customs Code), the Article 132 of Presidential Decree no. 43/1973 (i.e., “Consolidated Customs Laws” – TULD) [1] has been repealed. Given the lack of similar provisions in the above-mentioned national complementary provisions to the UCC, it will no longer be possible to recognize the status of “definitive export” for goods destined to offshore platforms located in territorial waters, meaning that excise duty on energy products consumed aboard such platforms will apply.
Therefore, the products supplied to offshore platforms should be subjected to excise duty according to the current regulations, and the Italian customs Authorities’ provisions provided with the Circular 337/D, dated December 31, 1997, regarding the incentives on mineral oils (rectius energy products) used in oil exploration will apply.
On this point, in general, the following exemptions/reductions will be applicable:
- Exemption from excise duty for energy products intended to be introduced into oil wells to dilute crude oil to be extracted from the subsoil, used in the preparation of “muds” for wells during drilling operations for hydrocarbon exploration and endogenous forces in the national subsoil as well as in other technically necessary operations in the same wells, being used in “uses other than fuel and combustion”.
- Reduced excise by 30% for energy products used in fixed thermal engines connected to operating machines to generate driving force in drilling work for hydrocarbon exploration and endogenous forces in the national subsoil, to generate driving force or thermal energy for services at construction sites related to the exploration and cultivation of oil fields and endogenous forces.
- Excise duty set at € 11.73 per 1,000 m3, if the operations mentioned in point b) above are carried out using natural gas.
From a VAT perspective, the exemption regime remains applicable for the goods at stake on the basis of the Art. 8, paragraph 5 [2] of Presidential Decree no. 633/1972.
In this respect, the Italian customs Authorities confirm that, for the purposes of providing suitable proof to certify the right to benefit of the VAT exemption for such a transaction, it will be possible to submit the export customs declaration, on the basis of the Art. 269, par. 2, UCC [3]. On this point, the Italian customs Authorities confirm, indeed, that fixed oil platforms located within territorial waters are compared to ships according to the definition provided by the Art. 136 of the Italian Navigation Code.
[1] The Art. 132 of the TULD allowed considering as final export, among the others, the national products that, while waiting to be loaded, were introduced into the land-based operational bases of companies performing the work processes referred to those indicated in the first paragraph of the above-mentioned Art. 132.
[2] Art. 8, paragraph 5[2] of Presidential Decree no. 633/1972: “For the purposes of applying paragraph one [i.e, VAT exemption], goods intended to be used in territorial waters for the construction, repair, maintenance, transformation, equipment and restocking of drilling and exploitation platforms, as well as for carrying out connections between such platforms and the mainland, are considered as shipped or transported outside the EU.
[3] Article 269, paragraph 2, letter c), UCC: “goods delivered, VAT or excise duty exempted, as aircraft or ship supplies, regardless of the destination of the aircraft or ship, for which a proof of such supply is required”.
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