Malta is a member of the European Union (EU) and as such follows the EU’s Common Customs Tariff (CCT). That means that Malta generally matches the EU’s tariff rates on goods imported into the country.
Free trade agreements
Malta has free trade agreements we are able to take advantage of which can further reduce or eliminate import duties on all goods coming from certain nations or regions.
Here are the main points:
EU customs union rules
Goods imported from other EU countries are brought into Malta free of duty since Malta and the rest of the EU function as a single market. Free of the internal customs barriers which characterise most other markets.
Value-added Tax (VAT)
Specific items, such as pharmaceuticals, printed books, and medical equipment, are subject to reduced rates of 7% and 5%. The total cost of the product (including its value, shipping, insurance and any customs duties) is subject to VAT.
Excise duties
Some goods are additionally excise duty such as alcohol, tobacco and fuel products. Rates of excise duty are different for different product types and quantities.
Exemptions and thresholds
Low-Value Imports: Customs duties may be avoided for goods with a value of less than €150, but VAT is still due.
Personal Exemptions: Items can be brought into Malta by travellers from non-EU countries without paying duty if the goods are personal items and are within quantity and value limits.
Customs documentation
So, importers should provide the Customs with important documents like the commercial invoice, particularly the bill of lading, and any other certificates of origin to manage accurate customs valuation as well as the duties. Malta Customs or the EU TARIC system also provides precise guidance for specific duty rates or special products required. This is to say that specific information regarding import duties and taxes of a particular product should be consulted with a customs broker or the Maltese Customs Authority. They can tell you exactly what tariffs, regulations and paperwork to expect. Therefore, by understanding these factors you will be able to estimate better the importing costs and of importing goods into Malta.
Procedure for making a raccomandation
The procedures are recommended by Malta Enterprise for use by qualifying companies as defined in Section 3 of the Business Promotion Act, or small enterprises by Section 24 of the Business Promotion Act. All of these procedures are available on the condition that companies and small enterprises sell more than 50 percent of the manufactured goods which they export outside Malta. Based on average export sales of the last two financial years as certified by a public auditor, qualify. Malta Enterprise will judge start-up companies on the export projections outlined in the business proposal they have submitted to Malta Enterprise. Qualifying companies and small enterprises that export at least 80 percent of their annual manufactured output shall be entitled (as recommended by Malta Enterprise) to obtain full suspension of the import duties on their raw materials by way of a Customs Economic Procedure they make use of. After the necessary recommendation of Malta Enterprise the Customs Economic Procedures are still available to qualifying companies and small enterprises whose exports are below the 80% threshold. The authorization, however, would be on a pro-rata or to such conditions as the Department of Customs may deem fit to impose. For example, companies that export a small proportion of manufactured goods to non-EU countries can apply for a Drawback System under the Inward Processing Procedure.
How to apply
Companies and small enterprises intending to apply for any of these procedures will be required to fill in the appropriate application form for the procedure they choose to apply for. In addition to the application, they have to send along a cover letter and a separate auditor’s sales certificate application is verified and if everything is in order it is recommended and sent to the Department of Customs, Customs Economic Procedures Unit. The relative authorization will be made for further verifications before being issued by this unit. Customs will issue a valid authorization for a period not exceeding one year and it can be renewed subject to application to Malta Enterprise.
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