Customs code simplifies procedures and improves controls

Parts of the new customs code that came into effect on June 9, following the publication in the Government Gazette of Legal Notice 188/2002, would simplify many procedures, while at the same time improving controls, the Department of Information said yesterday.

The provisions of article 5 (Right of Representation) and articles 166 to 181 (Free Zones and Free Warehouses) will not come into force until consultations with interested parties are concluded.

On February 11, 2002, parliament unanimously approved a new customs code for Malta. Although the code largely reflects the provisions in the EU customs code, the latter in turn is based on international sources of import and export legislation and specifically on the International Convention on the Simplification and Harmonisation of Customs Procedures (Customs Kyoto Convention).

The new Customs Code has been designed to ensure the collection, at importation, of customs duties and other charges while at the same time supporting the fight against fraud.

An important aspect of the new code is that it contributes in a practical manner towards the competitiveness of businesses, especially those engaged in the export trade, by introducing modern and efficient customs procedures to reduce customs processing costs to a minimum while strengthening security.

"Only in this way can customs, while maintaining essential controls to protect society from the dangers inherent in illicit trade such as trafficking in drugs, environmental risks caused by hazardous materials, the infringement of intellectual property rights etc., effectively take up its new role of a valued partner of legal business in global trade and e-commerce," the DOI said.

A simplified procedure that is of immense benefit to the trading community, especially export-orientated manufacturing industry, is that known as the Local Clearance Procedure (LCP), which enables authorised traders to collect their goods without undue formalities and without the need of a customs presence, thus saving on valuable time.

Customs carry out periodical audits as necessary to ascertain compliance with current regulations. Since this procedure will introduce a radical approach to the clearance of goods by Customs, the Department of Customs plans to introduce it to selected industries on a pilot project basis. The aim is to give an opportunity to all parties to gain practical experience before the procedure is given a wider application.

The code offers other opportunities for simplification of customs procedures such as facilities for deferred payment, extension of the temporary importation period and many others.

The customs code gives due importance to the observance of the principle of justice. The code provides for flexibility in the application of certain provisions when strict adherence to these provisions could result in unjust burdens and obligations on the trade leading to serious economic or social difficulties.

Some provisions in the code are specifically aimed at protecting and benefiting local producers in order to encourage the processing and manufacture of goods to take place in Malta.

"The use of these modern procedures and techniques requires specialised training and mutual trust. Malta Customs has made great strides forward in recent history and has succeeded in modernising its operations in a relatively short span of time. The department has recognised that one cannot proceed with this modernisation programme without adequate resources," it said.

Customs was investing heavily in the provision of training to its staff and to the trading community. The trading community on its part had a crucial role to play in building an atmosphere of confidence and cooperation and needed to forge a partnership with the customs department to ensure the smooth running of the systems to the benefit of all.