Streamlined Intra-Community Declaration of Excise Non-Harmonised Goods

The Department of Customs, within the OCFR, has initiated a new project with the aim of enhancing awareness about the crucial significance of complying with the legal obligation regarding the timely payment of both Excise duty and other import-related taxes. The project endeavors to promote a culture of adherence to regulatory requirements and to foster a greater sense of responsibility among stakeholders related to the payment of import taxes.

To uphold its objective of acting as a catalyst for trade facilitation, the Customs Department is introducing a streamlined intra-community declaration process. This measure aims to simplify the intra-community declaration procedure of non-harmonized goods and ensure a smoother transactional flow, in line with the Department's objective.

The following conditions must be met for traders to benefit from such a scheme:

I. The Excise Duty payable is not more than €100, and the entire consignment contains no more than four distinct Harmonised System codes (HS codes) for the goods;

II. The goods in question are listed under Schedule Five of the Excise Duty Act;

III. The goods are transported to Malta via a "Regular Shipping Vessel," such as a catamaran from Sicily;

IV. The goods are not manifested with a local reference number (LRN).

To facilitate the acquisition process, the importer or the appointed declarant is required to fill in the ‘Streamlined Intra-Community Declaration of Non-Harmonised Goods’ form listed as ‘Annex 1’, while sending a copy of the Invoice and all other necessary documentation as listed on the form to [email protected].

A Customs declaration will then be completed by the Customs officer handling the form. It should be noted that:

a) The form must be submitted prior to the release of the dutiable item , and the release of the item will not be granted until Excise Duty and/or other taxes due are paid;

b) Even if the goods are accompanied, the form must be submitted through an email or physically provided to a Customs Official, if they are present at the gate before the goods exit the gate;

c) As of 1st of May, the 48 working hours or the 5 working days with regards to when the concession could be submitted will no longer be applicable;

d) Dutiable goods falling under Schedule Five of Chapter 382 of the Laws of Malta, which originate from outside the European Union or that have been transported on a vessel that does not qualify as a "Regular Shipping Vessel," cannot be declared through this process, even if the Excise duty payable is not more than €100;

e) Therefore, delays in submitting the invoice will not be accepted as an excuse. Even in cases where the goods are delivered by catamaran, the importer must submit the form and pay all dues before taking possession of the goods;

f) A copy of the items listed under Schedule Five is attached to this circular as ‘Annex 2’;

and

g) Legal action shall be instituted against any person who fails to adhere to all the above- mentioned conditions.

It is also important that one should declare every dutiable item upon its arrival in Malta, regardless of whether this item has arrived from another Member State or from a non- member country in the European Union and this is in accordance with the Articles of Chapter 382 of the Laws of Malta as shown below.

4. (1) Excisable goods shall be subject to excise duty at the time of their production, or where applicable of their extraction, or of their arrival into Malta, provided that where excisable goods are placed under a customs procedure on arrival into Malta, an entry shall be deemed to take place when they leave the customs procedure.

(2) Excise duty shall become chargeable at the time of release for consumption or when shortages are recorded.

(4) for the purpose of this article “release for consumption" means:

(d) the entry into Malta of excisable goods, including irregular entry into Malta, unless the excisable goods are placed, immediately upon entry, under a duty suspension arrangement.

5. Save as otherwise provided for in this Act or as may be prescribed by regulations thereunder, no goods which are subject to duty shall be released for consumption unless the duty on the said goods has been paid.

This means that payment of Excise duty and any other tax related to importation must be settled upon entry of such goods into Malta unless the excisable goods are placed, immediately upon entry, under a duty suspension arrangement, that is a Customs or Tax Warehouse.

Groupage operators and transporters offering Customs clearance services, including inputting and submitting Customs declarations, are required to ensure that all Excise Duty and other applicable taxes are settled upon importation and prior to delivery of the consignment to its owner. It is strictly prohibited for any physical or legal person to hold or store excisable goods under duty suspension, except for Authorised Warehouse Keepers, as outlined in Article 2 of Chapter 382 of the Laws of Malta.

Therefore, groupage operators and any other persons are reminded that to hold or store excisable goods for which excise duty has not been paid, they must possess the status of an Authorised Warehouse Keeper and must register as such with Customs if not already registered.

Furthermore, any natural or legal person who acquires or imports non-harmonised excisable goods for commercial purposes and settles excise duty upon acquisition or importation must acquire the status of a Registered Merchant as per Article 10c of Chapter 382 of the Laws of Malta by applying accordingly with Customs.

To complete the registration process, individuals must visit the Customs website at https://customs.gov.mt/ and access the Business PDF forms section. Subsequently, they must select the application titled "Excise Registered Merchant."

It is important to note that failure to comply with this legal requirement may result in legal action being instituted against anyone found in breach of any of the regulations.

Annex-1---Streamlined-Intra-Community-Declaration-of-Non-Harmonised-Goods

Annex-2---Non-Harmonised-Goods