Malta Customs in the EU

1. How do I bring goods to an approved place ?
When you bring goods into the Community through Malta, you must take them without delay to a place approved by Customs, that is an approved office of destination, and then present them to Customs.

2. What places are approved in Malta ?
Goods imported by sea must be landed at an approved wharf. Goods imported by air must be landed at the Malta International Airport. At the airport, goods must be taken to the approved examination station. When goods are cleared inland, they may be removed to an approved temporary storage premise. Alternatively, goods may move under local clearance procedures to an authorised importer’s approved premises.

3. How do I bring goods through another member state to Malta ?
If your goods arrive in another Member State but you intend to put them into free circulation in Malta, they will need to travel under a transit procedure. Transit rules apply until they reach an approved office of destination. You can put the goods under an international transit procedure, for example TIR, before they enter the Community or under the Community Transit Procedure when they enter the Community.

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REQUIREMENTS AT PRESENTATION

4. What is required when the goods first arrive ?
Imported goods from third countries must arrive at a designated place and must be presented to Customs by the person who brought the goods into the Community. Presentation means informing Customs in the required manner that the goods have arrived. A summary declaration (e.g. a manifest of the goods) must be lodged with Customs.

5. Who should present the goods ?
The person, or the person representing them, who has brought the goods into the Community, or the person who assumes responsibility for their onward carriage, should present them.

6. How do I present the goods ?
The first stage is to submit to Customs a list of the goods by using an approved computerised system linked to Customs. Then the goods are physically presented to Customs as soon as they arrive. You should present goods which have been moved under a transit procedure to Customs under the rules applicable to that regime.

7. Are there time limits for presentation ?
Yes. Goods must be presented immediately after their arrival at the place of unloading. If the Customs office is closed, presentation must be made within an hour of its reopening.

8. Can presentation be waived ?
No.

9. Who should make the summary declaration ?
The declaration must be made by one of the following:

the person who conveyed the goods into the Community

the person who assumes responsibility for their onward carriage;

the shipping, airline or haulage company; or

the representative of any of the above.

10. What is the summary declaration ?
The summary declaration is a computer version of the manifest. Where goods have traveled under the Community or common transit procedures, the copy of the transit document retained by the Office of Destination will be the summary declaration. This applies to manifests used under the Community transit simplified procedures for transport by air or sea.
11. When should the summary declaration be made ?
A summary declaration must be made before the goods are presented to Customs. If the goods are entered or re-exported from the Community or destroyed before the time when the summary declaration has to be made, Customs may be prepared to waive lodgement. You must contact the Customs office at the place of unloading to see whether Customs are prepared to do this.

12. Can I combine presentation and summary declaration ?
A summary declaration must precede presentation.

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UNLOADING AND STORAGE OF GOODS

13. Where can I unload goods ?
You may only unload goods from a ship, aircraft or vehicle after presentation and with our permission at places approved by Customs. In emergencies, goods may be unloaded for safety reasons without permission. However you must inform Customs immediately of their arrival once the goods have been unloaded. You must also unload goods if Customs so require, so that the goods and the means of transport may be examined.

14. Are lightering or lightening operations allowed ?
Yes. Where it is necessary for cargo to be transferred at sea from an importing ship at deep water anchorage to smaller vessels, for example barges for delivery ashore, Customs may give permission for these operations. You should contact the Customs office at the place of unloading to agree procedures for transporting the goods to an approved wharf. Customs shall impose conditions and specify the route the goods must take.

15. Are there restrictions on the movement of goods after unloading ?
Yes. After presentation, goods have the status of being in temporary storage until they are assigned to a Customs approved treatment or use. While in temporary storage, goods may not be removed, opened or examined without our permission and may only be handled in a way which preserves them without changing them. They may only be stored in places which Customs have approved. These are called temporary storage facilities in Community law. For goods imported by sea, wharves and transit sheds may be approved as places for temporary storage purposes subject to conditions being met. At airports, transit sheds will be approved. The restrictions on movement of goods in temporary storage also apply to goods brought into a free zone.

16. What are the conditions for customs approval of temporary storage premises ?
They include a requirement for the operator of the temporary storage premises to:

maintain adequate physical security of the premises;

keep stock accounts which enable the movement of the goods to be traced; and

provide security for the goods.

Operators of Customs approved temporary storage facilities have obligations under the Community Customs Code and the Implementing Regulations which must be observed in addition to the specific terms of any written conditions of approval.
17. What happens if goods are removed without permission ?
A customs debt will arise if the conditions of temporary storage are breached. If the goods are removed unlawfully, Customs may hold the person holding the goods personally liable for any customs debt incurred. In addition, the person removing the goods and others may be guilty of an offence.
18. Are there any other conditions ?
Customs shall require operators of temporary storage facilities to provide some form of financial security

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CUSTOMS DEBT

19. What is the policy on customs debt ?
It is based upon the following principles:

the declarant on the customs declaration is to be pursued by Customs for arrears of import duties;

the person entitled to repayment is the person who was obliged to pay the duty as a customs debtor;

the type of representation (direct or indirect) must be declared on the customs declaration at the time of importation or exportation; and

if the type of representation is not declared on the customs declaration, the representation is deemed to be self-representation and in these circumstances the person making the declaration will be the customs debtor.

20. What do the rules on customs debt cover ?
They cover:

the type of commercial relationship between principal and representative for the purposes of customs declaration;

who will be pursued in respect of customs debt; and

who will be entitled to repayment of any customs duty which has been overpaid or incorrectly raised.

These rules ensure that doubt is eliminated as to who will be pursued for customs debt and who will be entitled to any repayment.
21. What do direct and indirect representation mean ?
Representation by an agent may be in one of the following forms:

direct, where the agent acts in the name of, and on behalf of, another person; or

indirect, where the agent acts in their own name but on behalf of another person.

Should direct or indirect agents fail to state that they are acting in the name of, or on behalf of, another person or they are not empowered to do so, they will be deemed to be acting in their own name on their own behalf. In addition, agents who clear goods in their own name for a potential customer take the risk that they will be liable for any customs debt that arises at that point or at any time in the future. If an agent delegates tasks to a sub-agent, then the sub-agent is bound by the type of representation agreed between the agent and the principal.
22. Can you give me some more information on direct representation ?
Under direct representation, the principal is the sole customs debtor and therefore neither the agent nor the sub-agent takes on any liability for customs debts. The agreement between the agent and the principal must provide, either implicitly or explicitly, for the delegation of tasks to a sub-agent in order for the sub-agent to be empowered to act for the principal. If such a provision is absent, then the sub-agent will not be empowered to represent the principal and may be rendered liable for customs debts.

23. Can you give me some more information on indirect representation ?
Under indirect representation, both the principal and the agent are customs debtors. If the agent delegates the making of a customs declaration to a sub-agent, then the sub-agent becomes a customs debtor and the agent ceases to be one. This is because the agent neither makes the declaration nor has responsibility for performing the acts and formalities laid down by customs rules.

24. What is a declarant ?
A declarant is the legal person (company, partnership, public body etc or an individual) who makes the declaration in his own name or the person in whose name a declaration is made. Often this is not the same as the individual who signs the form. Legal persons other than individuals cannot themselves sign forms. They must employ officers and servants to do this for them. But an officer or servant signing on behalf of a legal person is not the declarant. A declaration may be made by the importer or by an authorised Customs agent established in Malta. In this latter case the importer becomes the principal. Warehousing entries made by authorised Customs agents on behalf of their principals for goods for free circulation can only be made by way of indirect representation. The declarant has to be the person who is authorised and because of this, if the authorised person is doing this on another’s behalf, it is being done indirectly. If the acceptance of a declaration imposes obligations on a particular person, then the declaration must be made by that person or on that person’s behalf.

25. How should box 54 of the SAD be completed ?
The original hand-written signature of the person making the declaration must be inserted and where the signatory is an officer or servant of a legal person, such as a limited company, they should print their full name and their capacity after their signature. The use of an electronic signature is permitted by Customs legislation.

26. What does ‘recovery action’ mean ?
Once a customs debt has been established, Customs shall pursue the individual or party liable for the debt. Who this will be will depend upon the type of representation agreed between the parties concerned. Where there is direct representation, that is a representative makes a customs declaration on behalf of a principal in the latter’s name, the principal is the declarant and as such is the customs debtor whom Customs shall pursue for any monies due. Where there is indirect representation, that is a representative makes a customs declaration on behalf of a principal in the representative’s own name, the representative alone is the declarant but both the representative and the principal are customs debtors and as such Customs shall pursue them jointly for any monies due, even if one of them is insolvent. If a receiver is acting for the insolvent party, Customs shall lodge a claim with the receiver. Where a person is not represented but makes a declaration in their own name on their own behalf, they are the declarant and also the customs debtor, and as such Customs shall pursue them for any monies due.

27. Must a declarant formally authorise an agent to act on their behalf ?
No. Authorisation or empowerment can be inferred from circumstantial evidence and formal authorisation is not a requirement. However a formal authority leaves no doubt as to whom Customs shall pursue for customs debt. Where no formal authorisation is held, the agent may incur the risk of being deemed to be the customs debtor and therefore liable for the debt. Agents should therefore consider taking appropriate action to protect their own interests. Customs shall accept at face value a statement on a customs declaration indicating the type of representation unless there are operational reasons for querying it.

28. What are monies on deposit ?
They are a form of security for duty - notduty. If the deposit is not sufficient to cover the customs debt once established, then Customs shall recover the extra monies from the customs debtor or debtors. If there are monies to be repaid once the customs debt has been established, then Customs shall repay the monies to whomever provided the monies on deposit. The rules about repayment to persons who paid the duties as a customs debtor do not apply as the monies are not duty, merely a form of security for duty.

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DISPOSAL OF PRESENTED GOODS

29. What can be done with the goods ?
Goods presented to Customs must be assigned to a Customs approved treatment or use. These are:

the placing of goods under a Customs procedure;

their entry into a free zone or free warehouse;

their re-exportation from the customs territory of the Community;

their destruction; and

their abandonment to the Government.

30. What are customs procedures ?

Customs procedures are:

release for free circulation;

transit;

customs warehousing;

inward processing;

processing under Customs control;

temporary admission;

outward processing; and

exportation.

31. Are there any time limits for disposal of the goods ?
Yes. Goods must be assigned to a Customs approved treatment or use within 14 days of the goods being presented to Customs. If you cannot arrange for the goods to be assigned to a Customs approved treatment or use within the period allowed, you must apply in writing to the Customs office for the place where the goods are stored for a possible extension of time. Your application must give the reason for the request and the following information:

the name and address of the applicant;

the location of the goods;

the number of the summary declaration, or indication of previous customs procedures, or the means of identifying the means of transport on which the goods are located; and

all other information necessary for identifying the goods.

When an application is granted in exceptional circumstances, Customs shall write to you giving a date by which the goods must be entered. You must pass a copy of this letter to the operator of the temporary storage facility.
32. How do I declare goods for free circulation or another customs procedure ?
You can make an electronic declaration when the relevant manifest for the goods has been recorded by the Customs Electronic System.

33. Where can I declare the goods ?
A declaration is normally made where the goods can be physically presented to Customs. This may take place at an approved airport, port, approved temporary storage area or other approved premises.

34. Can I examine the goods before I declare them ?
Yes. If you need to examine the goods, contact the Customs office where they are stored and ask for permission. If you want to take samples, you must make a written application to Customs and include the following information:

the name and address of the applicant;

the location of the goods;

the number of the summary declaration, or indication of previous customs procedures, or the means of identifying the means of transport on which the goods are located; and

all other information necessary for identifying the goods.

35. How do I place goods under a transit procedure ?
You should present the goods together with the appropriate transit document to Customs at the office of departure where the transit movement will start.
36. How do I place goods in a free zone ?
The questions on the Free Zones procedure will answer your question.

37. How do I destroy goods ?
If you wish to destroy goods, you must make a written application to the Customs office for the place of storage. The application must be signed by the owner of the goods and include the following details:

the name and address of the applicant;

the location of the goods;

the number of the summary declaration, or indication of previous customs procedures, or the means of identifying the means of transport on which the goods are located; and

all other information necessary for identifying the goods.

You should pass a copy of our authorisation, which will set out the conditions which must be met, to the operator of the temporary storage facility. Destruction of the goods must not entail any expense to Customs.
38. What happens if the goods are not declared or otherwise dealt with within the time allowed ?
If the goods are not assigned to a Customs approved treatment or use within the time allowed, Customs are required without delay to take measures, including sale of the goods, to ensure that they are properly disposed of. Storage charges are the responsibility of the person in possession of the goods, unless the goods have been formally seized. In the latter case, Customs are not responsible for accrued charges prior to seizure.

39. What special conditions apply to goods subject to controls operated on behalf of other government departments ?
Special conditions apply to goods which are subject to controls operated on behalf of other government departments. These include the need for veterinary or other health checks to be carried out before temporary storage status is ended. The production of import licences, certificates etc may also be required when the goods are entered.

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COMMUNITY GOODS

40. Do the above provisions apply to any community goods ?
Yes, it applies where Community goods have to be presented to Customs under Community regulations.

41. Which goods are affected ?
Certain goods from those parts of the customs territory where the VAT Directive does not apply are affected. The parts of the customs territory concerned are as follows: Aland Islands, Guadeloupe, Canary Islands, Martinique, Channel Islands, Mount Athos, French Guiana Reunion.

42. How are these goods identified ?
They will travel to Malta under the internal Community Transit Procedure (T2). The Office of destination copy of the T2 will act as the summary declaration.

43. Are any other goods affected ?
There are also certain circumstances where Community goods must have their status established. It must be established unless the goods are carried by air between two Community airports under cover of a single transport document or carried by sea on an authorised regular shipping service. The affected goods are usually either:

in temporary storage in a free zone or free warehouse; or

placed under a suspensive procedure when they have been brought into the customs territory of the Community.

If the status document is not available at the port or airport of destination, the goods will be treated as goods of third country origin until their status is established.

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OFFENCES

44. In what circumstances might an offence be committed ?
If you are responsible for any breach of, or failure to comply with:

any provision of the relevant Community Regulations, namely, Council Regulation (EEC) 2913/92 (Customs Code) and Council Regulation (EEC) 2454/93 (Implementing Provisions);

any requirement or condition imposed by Customs under the Regulations;

any undertaking that you give to Customs; or

the requirement for presentation, summary declaration or customs entry of goods, or for the assignment of goods to some Customs approved treatment or use; you will be committing an offence which could result in prosecution and a fine.

45. What will happen to the goods for which an offence has been committed ?
Any goods in respect of which an offence has been committed may be seized by Customs as liable to forfeiture. If Customs seize the goods in the presence of you or your representative, Customs shall give you a copy of the form which, amongst other things, sets out your right of appeal against the seizure. If Customs seize the goods in the absence of you or your representative, Customs shall send you a formal Notice of Seizure which will also set out your right of appeal against the seizure. If Customs subsequently decide not to offer you restoration of the seized goods or Customs only offer to restore them on payment by you of a sum of money with which you are unhappy, you can appeal against this decision.

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PLACE OF IMPORTATION

46. Which goods are subject to checks at the place of importation ?
All goods are eligible for temporary storage. But certain goods are subject to specific checks at the place of importation before they may be removed for temporary storage or released for free circulation.

47. Which goods are subject to veterinary checks at a border inspection post ?

Live animals;

Fresh red meat and meat products;

Poultry meat and poultry meat products;

Rabbit meat, game meat (wild/farmed) and products thereof;

Fish products, fresh and frozen fish and dry and/or salted fishery products;

Whole eggs, egg products, hatching eggs;

Lard and rendered fats;

Animal casings;

Milk and milk products whether or not for human consumption;

Processed animal protein;

Honey;

Semen;

Embryos/ova;

Hunting trophies;

Manure;

Gelatin;

Frogs’ legs and snails;

Bones and bone products;

Hides and skins;

Bristles, wool, hair, feathers;

Horns, horn products, hooves and hoof products;

Apiculture products;

Processed pet food;

Raw material for the manufacture of pet food;

Raw material, blood, blood products, glands and organs for pharmaceutical use;

Blood products for technical use;

Pathogens; and

Hay and straw.

48. What about goods that are subject to plant health, horticultural or timber controls ?
You must normally clear these goods at the place of importation. Control in other places depends upon whether the Plant Health Directorate or the Horticultural Directorate as appropriate, considers that controls can be satisfactorily carried out inland.
49. What about foodstuffs that are subject to controls ?
You should normally clear these at the place of importation. However we may allow them to be removed to other places if both the Port Health Authority and the Environmental Directorate allow their controls to be carried out inland.

50. Which goods are subject to environmental controls ?

Specified consignments of goods subject to various environmental controls (such as certain new chemicals or hazardous waste) where we have been requested by a regulatory body to arrange their detention at the point of entry into the Community;

Ozone depleting substances (ODS), including CFCs or halons, which need import licences issued by the European Commission.

51. Which goods are subject to endangered species control ?
Certain species of animals or plants (including their parts or derivatives such as furs, ivory, reptile skin goods, timber and stuffed specimens) subject to the control on endangered species for which the Ministry for Rural Development and the Environment permits/approvals must be presented at the first point of entry into the Community. After presentation of the appropriate licence, the goods may be released.

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MAKING AN IMPORT ENTRY (TRADE WITH COUNTRIES OUTSIDE THE EU)

52. Who should submit an import entry ?
If you are in business and import goods into Malta from countries outside the EU, you must normally declare them by making an entry on the Single Administrative Document (SAD) and delivering it to us. You may either do this yourself or arrange for an agent to act for you. If you or your agent has approval you can input entry data direct to our computerised entry processing system. This is called Direct Trader Input (DTI).

53. What is the tariff ?
The Tariff (better known as the Combined Nomenclature (CN) is the document which gives a description of the goods, sets out the HS Codes to be used and gives details of import duty rates applicable. It is Council Regulation (EEC) No. 2658/87.

54. But what if I trade with other EU Member States ?
If you import goods from another EU Member State, you do not need to make a customs entry. However, you may be required to complete an Intrastat supplementary declaration if your EU imports (arrivals) exceed an annual value threshold.

55. May I defer payment of customs charges ?
When you import goods you must pay duty, Value Added Tax (VAT), agricultural levy etc which are liable under Maltese or EU law. However, you can defer paying most import charges and those due on the removal of goods from warehouses or free zones (including VAT) for an average of 30 days. To be approved for deferment, you must meet certain conditions, including:

providing an approved security; and

agreeing to pay by direct debit.

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GOODS ELIGIBLE FOR REDUCED RATES OF DUTY

56. What goods are eligible ?
The goods you import may be eligible for admission at a nil or reduced rate of duty if they:

originated in a preference country or were in free circulation within Turkey; or

are from a non-EU country and qualify for temporary suspension of customs duty.

57. What are preference and tariff quota arrangements ?
Certain goods which originate in a `preference' country may be imported into the EU at a nil or reduced rate of customs duty. The exporter must provide you with evidence in the form of an approved Preference Certificate issued by a recognised competent authority to present to us proving the origin of the goods. There may be a limit on the total quantity of goods which can be admitted at a preferential rate in a specified period. Preferences on Turkish goods are based on their being in free circulation rather than on their origin.
58. What is temporary suspension of customs duty ?
You may also benefit from a nil or reduced rate of duty on certain goods imported from non-EU countries. Appropriate details will be given in later questions on Customs Economic Procedures.

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IMPORT PROCEDURES

59. What are valuation statements ?
An individual valuation declaration should normally accompany the import entry for goods liable to customs duty where the value of the goods exceeds Lm…………. However, if you regularly import dutiable goods, you can save time by completing and registering a general valuation statement. You need to complete this form only once every three years provided that the terms and conditions of supply in that period do not change.

60. What is a simplified procedure ?
With the approval of Customs and subject to certain conditions you may be authorised to submit electronic declaration methods which are designed to enhance and simplify customs procedures for clearing imported goods either at the frontier or upon removal from a free zone or customs warehouse. The simplified procedure offers a variety of methods which may be operated in isolation or combined to best meet your particular needs. You can opt to use either the Simplified Declaration Procedure (SDP) or Local Clearance Procedure (LCP). In both cases you submit the declaration in two stages. The initial declaration provides us with a minimum amount of data which effects the release of the goods. You can provide this either at the frontier in the form of a simplified SAD (SFD) or as an entry in your records. You then follow this up with an electronic SAD which contains the full fiscal and statistical data.

61. What is the purpose of customs warehousing ?
If you import non-EU goods liable to customs duty and/or Common Agricultural Policy (CAP) charges, you can suspend payment of the import charges by placing the goods in an approved customs warehouse. Charges are only payable (but may be deferred) when the goods are removed from the customs warehousing arrangements. These facilities are also available for excise goods and for CAP goods imported from other EU states which are liable only to positive Monetary Compensatory Amounts (please obtain more information regarding MCA from Ministry for Rural Affairs and the Environment). You can find further information in Notices:

62. What are free zones ?
You can move imported goods into a free zone without paying import charges (although relief from excise duty is available only if there is an approved excise warehouse in the zone). You pay customs duty and import VAT only if you:

bring goods out of the zone into the EU market; or

use or consume them in the zone.

Within the zone you may, with the appropriate authorisation, process imported goods free of customs duty and import VAT except that:

customs duty is payable when products are intended for the EU market; and

import VAT is payable when processed goods are delivered for the EU market.

Any supplies of goods and services within the zone are subject to the normal VAT rules.
63. What does ‘goods in transit’ mean ?
The simplified transit procedures allow goods to be taken through the EU and on to a third country without payment of import charges. Whilst the goods are in transit they can, under certain conditions, be regrouped or repacked but they must not be altered. Goods in transit should normally be delivered to their destination within 8 days. If you wish to hold the goods within the EU for a longer period, goods arriving by sea may be held for up to 14days under the Temporary Storage Procedure.

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RELIEFS

64. What is inward processing relief (IPR) ?
You can obtain duty relief on imported goods from non-EU countries which you process in the EU and then re-export to a non-EU country provided that the trade does not harm the interests of EU producers of similar goods. You can obtain relief from customs duty, specific customs duty (previously CAP charges), anti-dumping duty and countervailing duty but not excise duties. Import VAT is not due if the goods are entered to IPR suspension but is due if the goods are entered to IPR drawback. Processing can be anything from repacking or sorting goods to the most complicated manufacturing. You may also qualify for relief if you obtain the goods from someone who is approved for IPR in the EU or if you dispose of finished goods other than by re-export. You can only use IPR if you meet certain conditions and record keeping requirements, and we have given our approval.

65. What is processing under customs control (PCC) ?
In most cases you will not be able to claim duty relief on imported goods which are processed but not subsequently re-exported. However, if the duty due on the raw materials used in the process is greater than it would have been had you imported the finished product, you can declare the goods to free circulation at the lower rate that applies to the finished product rather than at the rate that applies to the raw materials. You can only use PCC if you meet certain conditions and record keeping requirements, and we have given our approval.

66. What is end-use relief ?
End-Use provides duty relief on imported goods in order to promote certain EU industries and trades. To qualify for relief:

the goods and/or processes must be eligible for end-use relief;

you must be authorised by us for the relief (except for certain denatured products); and

the goods must be put to their prescribed end-use within agreed time limits.

End-use relief applies only to customs duty. VAT, if due, must be paid, unless any separate VAT relief applies.

67. What do temporary importation and other conditional reliefs mean ?
You may not have to pay customs duty and other import charges when goods are either temporarily imported or imported finally for particular purposes. In either case certain conditions must be met. A large range of other reliefs are also available.

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TEMPORARY IMPORTATION INTRODUCTION

68. What is the purpose of temporary importation (TI) ?
TI generally allows you to temporarily import goods with relief from customs duty, specific customs duty (previously CAP charges), anti-dumping duty and countervailing duty but does not relieve excise duties. Goods must not be processed or repaired other than routine maintenance necessary to preserve them in the condition in which they were imported. There are several different TI reliefs, for example goods for exhibition, medical equipment, items for auction, or goods for testing. Some of the reliefs impose conditions on ownership of the goods, or how they may be used.

69. Who can use TI ?
TI approval can be granted at the request of the person who uses the goods or arranges for them to be used. Depending on the type of goods that person can be established within or outside the Community. Any person temporarily entering the EC who is not normally resident there can use relief for travellers' personal effects.

70. How does TI work ?
To enter goods to TI an authorisation is required. With very few exceptions you can apply for authorisation to use TI relief at the time you import your goods. You will be authorised by the Customs Front Office. For most importations you will be required to provide security (either by cash deposit, or bank guarantee) equal to the full amount of duty and import VAT potentially due. This may be reclaimed when the goods have been re-exported and satisfactory documentary evidence can be provided. No import VAT is payable unless goods are released for free circulation.

71. What is TI with total relief ?
Total relief from import duty can be claimed if the goods and use made of them are in accordance with the provisions of Articles 555 – 578 of the Customs Code Implementing Provisions.

72. What other forms of total relief exist ?
If goods do not comply with the conditions identified in Articles 555 – 578, total relief may still be available if they:

are imported occasionally and for a period not exceeding three months; and/or

have a value of less than Euro 4,000.

73. What is TI with partial relief ?
Partial relief can be claimed if goods do not comply with the conditions identified in Articles 555 – 578 and other forms of total relief in referred to in question 72 cannot be claimed. Import VAT under partial relief must be paid at import so partial relief cannot be claimed for goods on which VAT only is due. Full security for the amount of customs duties due will be required and for each month the goods remain in the EC, 3% of the customs duties will be deducted from the security taken at import. When the goods leave the EC any remaining balance of the security taken will be repaid. Note: Partial relief cannot be claimed on consumable goods.
74. What legislation covers the TI procedure ?
The law on TI is published in the Official Journal of the European Community under Council Regulation (EEC) No 2913/92 establishing the Community Customs Code and Commission Regulation (EEC) No 2454/93, which lays down provisions for its implementation. EC law on Import VAT relief is contained in the 6th VAT Directive which is interpreted into Maltese law in the Value Added Tax Act 1994 . Other National provisions and VAT Directives may also apply.

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CUSTOMS WAREHOUSING

75. What is the law on customs warehousing ?
The law on customs warehousing is contained in: Council Regulation (EEC) 2913/92 establishing the Customs Code; and Commission Regulation (EEC) 2454/93 as amended, which lays down the provisions for its implementation.

76. What is the EC law on import vat relief

The 6th VAT Directive which is enacted in Maltese law in the Value Added Tax Act 1994

other national provisions and other VAT directives may also apply.

Any person who makes a false declaration or provides untrue information about goods entered to or removed from customs warehousing may be liable to penalties. This also applies to declarations made using simplified procedures.
77. How can I benefit from customs warehousing ?
There are different ways to benefit from the customs warehousing procedure with varying conditions and requirements. (a) if your operations are processing based with little need for storage, then another customs procedure may be more appropriate (such as IPR, (Inward Processing Relief) (b) if you want to benefit from customs warehousing but not have the responsibilities of a warehousekeeper, you may choose to be a depositor in a public warehouse; (c) if you want to be authorised for a customs warehouse, consider what type is most suitable for your business;

78. What are the other advantages of customs warehousing ?
Customs warehousing is particularly useful if you:
(a) want to delay paying import duty and/or VAT on your stocks of imported goods;
(b) want to delay having a customs treatment applied to imported goods;
(c) want to re-export non-Community goods (in which case import duty and/or VAT may not be payable at all);
(d) have difficulty at the time of import in meeting particular conditions (such as certain import licensing requirements);
(e) want to discharge another customs procedure (such as IPR) without physically exporting the goods; or
(f) want to use a customs warehouse for co-storage of goods subject to another customs procedure (such as free circulation, IPR, PCC).

79. What does a customs warehouse mean ?
A customs warehouse can either be a defined location (such as premises or place) or an inventory system authorised by us for storing non-Community goods, that are:

chargeable with import duty and/or VAT; or

otherwise not in free circulation.

Depending on the circumstances, a defined location can be the whole of a building, a small compartment in a building, an open site, a silo or a storage tank.

80. What is the difference bet