All imports from the United Kingdom will be subject to the same customs procedures as imports from non-EU countries if Britain crashes out of the EU without a deal on Thursday week.
The Customs Department on Tuesday issued a statement explaining the likely scenario, while the House of Commons in London started debating the new deal reached between the UK government and the EU amid uncertainty over whether it will be approved. MPs later on Tuesday will take part in a key vote on the timetable of the debate, which the UK government wants to hold over three days.
British Prime Minister Boris Johnson warned MPs that if they vote against the timetable to push his EU divorce deal through parliament this week, he will abandon the legislation and try to hold a snap election.
That means Britain will probably leave the EU with no deal on October 31.
In view of the current situation in UK politics, whereby it is a bit unclear whether the United Kingdom will withdraw from the European Union with or without a deal by the end of October 2019 or whether there will be another extension, the Customs Department would like to circulate the subjoined notice to all economic operators and the general public.
General cargo, parcels and express freight
The Customs Department said that in the event of the UK’s withdrawal from the European Union without a deal, current customs procedures applied to non-EU countries, will be extended to the UK.
"In practical terms, all imports from and exports to the UK have to be covered by Customs formalities. This means that consignments have to be covered by a Customs declaration, where all the associated duties and other relevant taxes such as VAT and excise have to be paid prior to releasing the goods for free circulation within the EU," the department said.
"The procedure will be the same as that currently employed (for example) for imports or exports to the United States, Japan or any other third country to the EU.
"This also includes imports and exports of parcels by post and by fast parcel operators."
For example, it said importation of new or used cars will be subject to 10% duty and 18% vat, while a consignment of clothing will be subject to 12% duty and 18% vat. A consignment of rubber tyres would be subject to 4.5% duty, 18% vat and 70 cents per kilogramme excise duty.
Industry
Local industry that sources raw material from the UK for further processing and eventual export, can benefit from relief from import duties by applying for an import authorisation under the Inward Processing procedure (subject to the relevant conditions).
Risk-based approach
Customs said it will adopt a risk-based approach over consignments originating from or destined to the United Kingdom. This will be fully in line with the current approach implemented by the department over the movement of goods, from and to, other third countries.
Passenger traffic
Airline passengers arriving from the UK will no longer make use of the EU channel (the blue channel) but have to choose between either the green channel if they have nothing to declare or the red channel if they have goods to declare.
Possible preparations from the trade sector
- EORI Number
The Customs Department called on economic operators who either solely trade with the United Kingdom, or who trade exclusively with the United Kingdom and the European Union, to register and obtain an Economic Operator Registration Identification (EORI) number to be able to lodge declarations for their imports and exports. Economic operators can initiate the EORI registration process by sending an e-mail to:eori.customs@gov.mt.
Further details may be obtained through the following linkhttps://customs.gov.mt/bus/economic-operators-registration-identification
Authorised Economic Operator
Economic operators were also urged to apply for an Authorised Economic Operator (AEO) status. There are several trade facilitation incentives that AEOs can benefit from. Additional information can be found on the Customs Department’s website –www.customs.gov.mt under the ‘Businesses and Trade’ tab, ‘Authorised Economic Operators’ tab.
On-line payment
Customs said that, in due course, it will launch an on-line payment system for import declarations. This will reduce the queues at the department’s cash points.
Further detailed information associated on Brexit's impact on Customs procedures can be found on the Customs Department’s website –www.customs.gov.mt under the ‘Businesses and Trade’ tab, ‘BREXIT for Business’ tab.
Any additional enquiries can be relayed to the Customer Services office e-mailfrontoffice.customs@gov.mt or telephone numbers 25685120 / 3/ 8.