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Displaying items by tag: Brexit

Following the UK’s withdrawal from the EU, there have been many questions that have caused confusion and uncertainty for the leisure marine sector both in the UK and in the EU27. Arguably, the biggest has been around the VAT status of recreational craft at the end of the transition period.

In an unprecedented declaration of unity, the International Council of Marine Industry Associations (ICOMIA), European Boating Industry (EBI), European Boating Association (EBA), British Marine (BM) and the Royal Yachting Association (RYA) joined forces to provide clarification on VAT and customs for recreational boating companies and users. Showing the value of cooperation and membership organisations, the five organisations have taken the exceptional decision to release this guidance to members and non-members.

The group put forward the key scenarios affecting boaters and are pleased to confirm that the Commission has now responded, validating the interpretation of the guidance and how VAT should be applied under the various examples. This follows a push led by the EBI with the European Commission to provide this important clarification. For the original document, please contact the participating organisations.

The positive confirmation of the scenarios should now also be recognised by each EU country in their dealings under this matter. Failure to do so could result in formal complaints being made to the Commission. Further clarification will be sought from the European Commission on the documentation required and interpretation of the establishment of “person established in the customs territory of the Union”.

VAT issues post-Brexit: FAQS

The following acronyms are used:

TPE = The time at which the transition period ended – 31 December 2020, 23:00 UTC

VPS = VAT Paid Status: i.e. in free circulation

EU28 = EU before TPE, i.e. including UK

EU27 = EU after TPE, i.e. excluding UK

GB = England / Scotland / Wales excluding Northern Ireland

TA = Temporary Admission

RGR = Returned Goods Relief

UCC = Union Customs Code

The Union Customs Code referred to within this document can be found here.

Scenario 

Impact on VAT Paid Status (VPS) 

Scenario 1 

  • GB owned/registered pleasure craft 
  • In free circulation (VPS) within EU28 pre-TPE and has supporting documentary evidence) 
  • Within EU27 as at TPE 

 EU VAT Paid Status 

The boat retained EU VPS status. 

Scenario 2 

  • GB owned/pleasure craft 
  • In free circulation (VPS) in EU28 pre-TPE (and has documentary evidence) 
  • Within an EU27 as at TPE 
  • Boat leaves EU27 (for GB or elsewhere) and then returns to the EU27 

 RGR & EU VAT Paid Status 

Boat is eligible to RGR on return to the EU27 and will have EU VPS, provided that all the conditions established in Article 203 UCC are fulfilled and, for VAT, that the boat is imported by the same person who exported it. 

Scenario 3 

  • EU27 owned/registered pleasure craft 
  • EU28 VPS pre-TPE (and has documentary evidence) 
  • In EU27 as at TPE 
  • VAT paid on original new purchase in GB a number of years ago 
  • Subsequent ownership and location within the EU27 

 EU VAT Paid Status 

The boat keeps its Union status and it is therefore in free circulation with EU VPS. 


Scenario 4 

  • GB owned/registered pleasure craft 
  • Business owned 
  • EU VPS before TPE 
  • In EU27 as at TPE 
  • Kept and used within the EU27 
  • Long-term lease to individual for private use 
  • GB VAT accounted for on annual lease charge 

 EU VAT Paid Status 

According to the information provided, the boat has Union status and keeps it unless the boat is taken outside the customs territory of the Union. 

Scenario 5 

  • GB owned/registered pleasure craft 
  • Owner is ordinarily resident in GB 
  • Using boat within EU27 on TA 
  • Owner has an EU27 holiday property where they keep the boat moored (in their name) 

 Temporary admission 

A person is established in the customs territory of the Union if he/she fulfils the conditions established in Article 5(31) UCC. If the person is not established in the customs territory of the Union, then he/she can declare the boat for temporary admission if it has non-Union customs status. 

 

Scenario 6 

  • GB or EU27 owned/pleasure craft 
  • In free circulation within EU28 pre-TPE (and has documentary evidence) 
  • No evidence of having been in the EU27 previously; or 
  • Ownership has changed since it was last in the EU27 In GB as at TPE 

EU VAT Paid Status Lost  

Article 203 UCC requires evidence of a previous export to the UK. The Commission guidance indicates that, in the absence of an export declaration, evidence of the previous movement of the boat to the UK is required. If the boat has never been in EU27 it is impossible to provide evidence of movement to the UK. 

Scenario 7 

  • EU27 owned/pleasure craft 
  • In free circulation within EU28 pre-TPE (and has documentary evidence) 
  • Had previously been evidenced as being within the EU27 within the last three years 
  • In GB as at TPE  
  • Same owner who brought it out of EU27, returned to the EU27 within three years of departure 

? Documentation required 

It is for the Member State to decide whether the conditions for RGR is possible (Article 203 UCC) are met. 

Article 203 UCC requires evidence of a previous export to the UK. The Commission guidance indicates that, in the absence of an export declaration, evidence of the previous movement of the boat to the UK is required. Member State authorities must therefore assess whether that satisfactory evidence can be provided in this scenario. 

Scenario 8 

  • GB owned/pleasure craft 
  • In free circulation within EU28 pre-TPE (and has documentary evidence) 
  • Had previously been evidenced as being within the EU27 within the last three years 
  • In GB as at TPE 
  • Same owner who brought it out of EU27, returned to the EU27 within three years of departure 

? Documentation required 

It is for the Member State to decide whether the conditions for RGR (Article 203 UCC) are met. Article 203 UCC requires evidence of a previous export to the UK. The Commission guidance indicates that, in the absence of an export declaration, evidence of the previous movement of the boat to the UK is required. Member State authorities must therefore assess whether that satisfactory evidence can be provided in this scenario. 


Commenting on the collaboration, Philip Easthill, Secretary General of the EBI, says; “We are delighted to have received the responses from the Commission that companies and boaters urgently need. Given the impact of Brexit on businesses and supply chains, clarity on VAT for second-hand boats is highly important. The cooperation of EBI with our partners has been key and we will continue to advocate for clarity on VAT issues through our channels at EU level.”

Lesley Robinson, CEO of British Marine, said; "Collaboratively working together with other leisure marine industry bodies is a highly successful way of collectively garnering results, and this recent clarity received on VAT issues post-Brexit will greatly benefit British Marine members and the UK leisure marine industry. The answers to these scenarios will be welcomed in particular by UK boat retailers and brokers to assist in maintaining a healthy trade of second-hand boats across the UK and EU.”

Udo Kleinitz, Secretary General of ICOMIA, added; “The industry is affected by the changes in VAT regime through loss of boaters expenditure in marinas and tourism. Our members have asked us for support on this matter which is why the collaboration with EBI, BM and the user organisations helps in raising the profile and relevance of the topic with the applicable agencies.”

Published in Boat Sales
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Two ex-presidents of the UK’s Institution of Civil Engineers (ICE) have been tasked with carrying out a study on the feasibility of an Irish Sea crossing between Britain and Northern Ireland.

As industry publication New Civil Engineer reports, Douglas Oakervee and Gordon Masterson have been charged by British Prime Minister Boris Johnson with evaluating the various proposals.

These include an “underground roundabout” beneath the Isle of Man that would connect separate tunnels Northern Ireland, Scotland and England — an idea inspired by a similar project in the Faroe Islands.

Another proposal for a Northern Ireland-Scotland tunnel suggests that it could help create a new “capital cities axis” stretching from Dublin to Edinburgh.

The possibility of a road-rail link between Northern Ireland and mainland Britain returned to the agenda earlier this year following Brexit, with one of the options mooted being a a “floating underwater tunnel” along the sea bed, as previously discussed by our own WM Nixon.

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The Royal Yachting Association (RYA) and British Marine have welcomed HM Revenue and Customs (HMRC) announcement of a six-month extension to the one-year grace period for Returned Goods Relief (RGR) previously put in place by the British Government.

The news yesterday (Thursday 25 March) extends the grace period for RGR until 30 June 2022 for all goods including recreational craft, regardless of when they left the UK, and follows representations from the RYA and British Marine asking for a three-year transition period.

Both organisations have argued that the one-year grace period effective from the end of the Brexit transition period, in respect of the three-year condition for RGR, was not sufficient — highlighting such issues as pandemic travel restrictions, Schengen Area immigration rules, insurance and the length of the sailing season.

This issue was central to a letter that the RYA and British Marine sent to the chief executive of HMRC in February, calling for a holistic approach to addressing the post-Brexit issues impacting on recreational boat owners and the British leisure marine industry.

Howard Pridding, the RYA’s director of external affairs, said: “The HMRC announcement is timely, as we have seen additional concerns from members about the new restrictions on leaving the UK announced this week.

"We will continue our constructive dialogue with HMRC on all outstanding post-Brexit issues, including the repatriation of boats that have not been in the UK under their current ownership, and look forward to receiving a full response from the HMRC chief executive on the points that we have raised.”

Lesley Robinson, CEO of British Marine, added: “This collaborative work with the RYA shows that together we can better influence matters affecting the leisure marine sector and boaters.

“Whilst we requested and set out a strong case for a three-year RGR transition period, the six-month extension is welcomed.

“However, given the current restrictions on international travel, we hope HMRC will demonstrate flexibility to the extension to allow all UK boat owners to return their boats in a safe weather window. This flexibility would also be welcomed by UK boat retailers and brokers in order to keep fulfilling the rising demand for second-hand boats in the UK.”

Published in Boat Sales

British Marine and the RYA have written a joint letter to the head of Britain’s HM Revenue & Customs to call for a holistic approach to the various issues facing private pleasure boaters, the second-hand market and the wider industry post-Brexit.

According to Marine Industry News, the letter covers such issues as the ‘VAT trap’ for British boaters, repatriation of vessels as pandemic restrictions continue, and the status of and reporting requirements for boats lying in Northern Ireland waters.

The two organisations are specifically calling for an extension of the one-year grace period for Returned Goods Relief to three years, on account of the various difficulties boaters currently face in regard to moving their vessels around Europe.

Howard Pridding of the RYA said: “Following months of dialogue with officials and exchanges with ministers at HMRC, we are now appealing directly to the chief executive of HMRC to bring coordination to urgently address the outstanding issues and deliver clear and unambiguous guidance that we can share with our members.”

The move comes in the same week that the Cruising Association launched its campaign for a 180-day cruising visa separate from the 90-day Schengen visa system, which would help preserve British cruisers’ traditional routes to the Netherlands, Greece, Spain and Portugal.

Published in Cruising
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NI’s Agriculture Minister has cited “practical difficulties” with the Northern Ireland Protocol in his decision to order a halt on construction of post-Brexit port inspection facilities.

According to Politico, acting DAERA Minister Gordon Lyons has also told NI ports not to levy charges on goods brought into Northern Ireland from Great Britain.

However, the order issued yesterday (Friday 26 February) does not apply to checks at existing infrastructure repurposed for the new trade regime since the end of the Brexit transition period on 31 December 2020.

Lyons’s party the DUP is currently mounting a legal challenge to the Northern Ireland Protocol, which places a de facto trade border in the Irish Sea between GB and NI.

Politico has more on the story HERE.

British cruising boaters are in the middle of a “perfect storm”, with visa issues just the latest ill wind to blow, according to a leading voice in the Cruising Association.

As Marine Industry News reports, the CA’s Regulations and Technical Services (RATS) committee chair Robin Barron says the new post-Brexit visa regime for Britons entering the EU — which allow for a 90-day stay in any 180-day period — “simply doesn’t work for cruising yachts”.

He elaborates: “My worry is that second-home owners — who find themselves in the same position — will lobby successfully to have an extension, but the Cruising Association needs to make sure that any development includes people in boats and that a visa status change isn’t dependent on having a second address.”

Baron adds that he is looking at ways to make reciprocal arrangements happen within the Schengen Area.

“We’re trying to raise localised support, from marinas and other marine trades in target countries like Spain, Portugal and Greece,” he says. “We’re hoping they’ll help pressure their MPs to grant extended visas.”

Meanwhile, the so-called ‘VAT trap’ threatens to tie up countless numbers of British-owned boats in foreign marinas as the costs to bring them home run into the thousands.

Marine Industry News has much more on the story HERE.

Published in Cruising

Fishing crews wishing to access UK waters must complete an application form made available online by the Department of Agriculture, Food and Marine.

The application covers access to the UK EEZ (12-200 nautical miles only) and/or the 0-6 nautical mile zone of Northern Ireland.

Among the strict criteria for acceptance is having a valid IMO number for any vessel 12 metres or greater in length.

For further details, and to download the application form, see the Gov.ie website HERE.

Published in Fishing
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Some Irish boat-buyers may be able to purchase new or second-hand vessels from the UK free of VAT.

But for most yacht-shoppers, Brexit has pushed the cost of buying much higher — just as it’s done for the used car market.

In response to a number of queries from concerned readers, Afloat.ie understands that the UK’s Sailaway boats scheme could be an option for some buyers, provided they will sail or motor their pleasure craft from the UK to Ireland and will keep it permanently outside the UK.

This scheme is not applicable to boats purchased for commercial use or transported as cargo. For these and all over new vessels, Customs Duty (including import VAT at 21%) will apply.

An exception exists for some second-hand vessels where the UK VAT was paid before the end of the Brexit transition period.

If an individual in Ireland bought a second-hand boat in Great Britain, on which UK VAT had been paid, and the deal was completed and the boat brought to Ireland before 11pm on 31 December 2020, it is Afloat.ie's understanding that the buyer will not owe Irish VAT on the purchase.

All purchases since that date are subject to Irish VAT, however.

It's also understood that second-hand boats purchased from Northern Ireland are not subject to additional VAT if proof can be shown that the vessel has paid VAT and had been owned by an NI resident. But this would not apply to any vessel imported from the UK through Northern Ireland.

Online customs charges are another potential complication for Irish shoppers browsing the UK boat marketplace.

While the Brexit trade deal agreed in December exempts goods made in the UK from customs charges in Ireland, duty will be payable on many products that have been imported into the UK from elsewhere.

Irish VAT will be payable regardless on all packages valued at €22 or more (including postage) until 30 June 2021, after which VAT will be paying on all goods entering the EU irrespective of value.

Afloat.ie understands that the future tax status of boats now depends on where they were as the Brexit transition period ended.

Those in Ireland at that time, regardless of nationality, retain the status of “Union goods” and can — nominally at least — move freely in EU waters.

Those that were in the UK, however, now face numerous restrictions on future movement — not limited to new VAT liability.

Boats in Northern Ireland are for now recognised as having both UK status and “union status” — a move which averted a potential influx of visiting boats and concerned owners into Irish marinas over the Christmas period.

Businesses seeking to import new or second-hand boats from the UK to Ireland will have to register for an Economic Operators Registration and Identification (EORI) number and complete various customs declarations.

Rules for Irish boaters cruising to British waters (and vice versa) are not yet as clearly defined.

While there has been no change for those cruising between Ireland and Northern Ireland, boaters crossing from Ireland to Great Britain (and vice versa) are strongly advised to keep proof of VAT-paid status on board at all times, as well as complete form C1331 for HM Revenue & Customs.

All arrivals in Great Britain from Ireland (except Northern Ireland) must also hoist flat Q on first arrival and keep it flying until clearance is granted via the National Yachtline (charges may apply).

Temporary admission of a UK vessel for private use into Ireland (including spare parts for minor repairs or servicing) is allowed “without formality” for a maximum of 18 months.

Sailboats and equipment may also be imported temporarily for sports events, but paperwork (such as an ATA Carnet) may apply.

Update 9/2/21: This story was updated to clarify a point around VAT liability on second-hand boats purchased from Great Britain before the end of the Brexit transition period. Thanks to Norman Kean for his assistance.

Published in Boat Sales
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“All sorts of strange things” will emerge this year for UK sailors in EU waters as post-Brexit issues remain to be ironed out.

As Sailing Today reports, RYA cruising manager Stuart Carruthers has outlined some harsh truths for British boat owners who had been used to easy cruising excursions beyond home shores.

“As an example, the whole idea of taking a sabbatical in the Mediterranean, living on your boat, which you’ve bought with your pension, has just disappeared out of the window now that we are subject to Schengen Area visitor visa rules. That is just one post-Brexit reality,” he said.

Meanwhile, EU member states appear to be taking a less than harmonious approach to recognition of British boats’ VAT paid status, as the Cruising Association’s Brexit spokesperson Roger Bickerstaff has warned.

“We’re going to be seeing different countries taking different views,” he said.

Carruthers also noted: “The status of boats in Northern Ireland is also unclear — are they classed as UK goods, Union goods, will they be able to enter Great Britain VAT-free?”

Sailing Today has much more on the story HERE.

Marine minister Charlie McConalogue says he has expressed Ireland’s “serious concerns” at EU level about a “ disproportionate burden being borne” by it in relation to fish quotas lost under Brexit.

Mr McConalogue said he conveyed this at an informal EU agriculture and fisheries council on January 25th, and Ireland was “awaiting to hear how this matter will be urgently addressed.”

An Oireachtas agriculture and marine committee was told last week that Ireland had taken a disproportionately large hit in the final deal.

Killybegs Fishermen's Organisation chief executive Sean O’Donoghue said that if the total loss to nine coastal states is valued at €182 million, Ireland should have lost some €20 million in quotas.

Instead, Ireland’s loss has been calculated at over €42 million, he noted.

Killybegs Fishermen's Organisation chief executive Sean O’DonoghueKillybegs Fishermen's Organisation chief executive Sean O’Donoghue

The frontloading of cuts over five-and-a-half years to 60 per cent this year was also unexpected, he said.

“We have formally requested our government to go back to Brussels and demand that the eight other EU coastal countries step up to the plate and take a proportionate hit on the Brexit deal,” he said.

Mr McConalogue said this week that he had made it clear that "ministers at council must have a direct engagement in the negotiations between the EU and UK to ensure that the fishing industry and other stakeholders have confidence that their concerns and voices are heard and understood".

The informal EU council meeting focused on the preparation for discussions between the EU Commission and the UK on setting TACs and fish quotas for 2021, he said.

Existing provisional quotas are due to end in March, and full-year TACs must be negotiated with Britain before then.

New procedures for interactions with the UK are being put in place, Mr McConalogue said, and member states’ priorities for the negotiations were discussed at this meeting.

“In relation to setting TACs for 2021, I made clear that Ireland is fully committed to respecting setting quotas in line with fishing at maximum sustainable levels (MSY) where this is known, and for other stocks all available data and information must inform TAC setting,” he said.

Published in Fishing
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About Dublin Port 

Dublin Port is Ireland’s largest and busiest port with approximately 17,000 vessel movements per year. As well as being the country’s largest port, Dublin Port has the highest rate of growth and, in the seven years to 2019, total cargo volumes grew by 36.1%.

The vision of Dublin Port Company is to have the required capacity to service the needs of its customers and the wider economy safely, efficiently and sustainably. Dublin Port will integrate with the City by enhancing the natural and built environments. The Port is being developed in line with Masterplan 2040.

Dublin Port Company is currently investing about €277 million on its Alexandra Basin Redevelopment (ABR), which is due to be complete by 2021. The redevelopment will improve the port's capacity for large ships by deepening and lengthening 3km of its 7km of berths. The ABR is part of a €1bn capital programme up to 2028, which will also include initial work on the Dublin Port’s MP2 Project - a major capital development project proposal for works within the existing port lands in the northeastern part of the port.

Dublin Port has also recently secured planning approval for the development of the next phase of its inland port near Dublin Airport. The latest stage of the inland port will include a site with the capacity to store more than 2,000 shipping containers and infrastructures such as an ESB substation, an office building and gantry crane.

Dublin Port Company recently submitted a planning application for a €320 million project that aims to provide significant additional capacity at the facility within the port in order to cope with increases in trade up to 2040. The scheme will see a new roll-on/roll-off jetty built to handle ferries of up to 240 metres in length, as well as the redevelopment of an oil berth into a deep-water container berth.

Dublin Port FAQ

Dublin was little more than a monastic settlement until the Norse invasion in the 8th and 9th centuries when they selected the Liffey Estuary as their point of entry to the country as it provided relatively easy access to the central plains of Ireland. Trading with England and Europe followed which required port facilities, so the development of Dublin Port is inextricably linked to the development of Dublin City, so it is fair to say the origins of the Port go back over one thousand years. As a result, the modern organisation Dublin Port has a long and remarkable history, dating back over 300 years from 1707.

The original Port of Dublin was situated upriver, a few miles from its current location near the modern Civic Offices at Wood Quay and close to Christchurch Cathedral. The Port remained close to that area until the new Custom House opened in the 1790s. In medieval times Dublin shipped cattle hides to Britain and the continent, and the returning ships carried wine, pottery and other goods.

510 acres. The modern Dublin Port is located either side of the River Liffey, out to its mouth. On the north side of the river, the central part (205 hectares or 510 acres) of the Port lies at the end of East Wall and North Wall, from Alexandra Quay.

Dublin Port Company is a State-owned commercial company responsible for operating and developing Dublin Port.

Dublin Port Company is a self-financing, and profitable private limited company wholly-owned by the State, whose business is to manage Dublin Port, Ireland's premier Port. Established as a corporate entity in 1997, Dublin Port Company is responsible for the management, control, operation and development of the Port.

Captain William Bligh (of Mutiny of the Bounty fame) was a visitor to Dublin in 1800, and his visit to the capital had a lasting effect on the Port. Bligh's study of the currents in Dublin Bay provided the basis for the construction of the North Wall. This undertaking led to the growth of Bull Island to its present size.

Yes. Dublin Port is the largest freight and passenger port in Ireland. It handles almost 50% of all trade in the Republic of Ireland.

All cargo handling activities being carried out by private sector companies operating in intensely competitive markets within the Port. Dublin Port Company provides world-class facilities, services, accommodation and lands in the harbour for ships, goods and passengers.

Eamonn O'Reilly is the Dublin Port Chief Executive.

Capt. Michael McKenna is the Dublin Port Harbour Master

In 2019, 1,949,229 people came through the Port.

In 2019, there were 158 cruise liner visits.

In 2019, 9.4 million gross tonnes of exports were handled by Dublin Port.

In 2019, there were 7,898 ship arrivals.

In 2019, there was a gross tonnage of 38.1 million.

In 2019, there were 559,506 tourist vehicles.

There were 98,897 lorries in 2019

Boats can navigate the River Liffey into Dublin by using the navigational guidelines. Find the guidelines on this page here.

VHF channel 12. Commercial vessels using Dublin Port or Dun Laoghaire Port typically have a qualified pilot or certified master with proven local knowledge on board. They "listen out" on VHF channel 12 when in Dublin Port's jurisdiction.

A Dublin Bay webcam showing the south of the Bay at Dun Laoghaire and a distant view of Dublin Port Shipping is here
Dublin Port is creating a distributed museum on its lands in Dublin City.
 A Liffey Tolka Project cycle and pedestrian way is the key to link the elements of this distributed museum together.  The distributed museum starts at the Diving Bell and, over the course of 6.3km, will give Dubliners a real sense of the City, the Port and the Bay.  For visitors, it will be a unique eye-opening stroll and vista through and alongside one of Europe’s busiest ports:  Diving Bell along Sir John Rogerson’s Quay over the Samuel Beckett Bridge, past the Scherzer Bridge and down the North Wall Quay campshire to Berth 18 - 1.2 km.   Liffey Tolka Project - Tree-lined pedestrian and cycle route between the River Liffey and the Tolka Estuary - 1.4 km with a 300-metre spur along Alexandra Road to The Pumphouse (to be completed by Q1 2021) and another 200 metres to The Flour Mill.   Tolka Estuary Greenway - Construction of Phase 1 (1.9 km) starts in December 2020 and will be completed by Spring 2022.  Phase 2 (1.3 km) will be delivered within the following five years.  The Pumphouse is a heritage zone being created as part of the Alexandra Basin Redevelopment Project.  The first phase of 1.6 acres will be completed in early 2021 and will include historical port equipment and buildings and a large open space for exhibitions and performances.  It will be expanded in a subsequent phase to incorporate the Victorian Graving Dock No. 1 which will be excavated and revealed. 
 The largest component of the distributed museum will be The Flour Mill.  This involves the redevelopment of the former Odlums Flour Mill on Alexandra Road based on a masterplan completed by Grafton Architects to provide a mix of port operational uses, a National Maritime Archive, two 300 seat performance venues, working and studio spaces for artists and exhibition spaces.   The Flour Mill will be developed in stages over the remaining twenty years of Masterplan 2040 alongside major port infrastructure projects.

Source: Dublin Port Company ©Afloat 2020. 

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