This month, the European Commission presented a proposal for a Blue Belt, which is a single transport area for shipping throughout the EU. This is because free movement of goods is not yet a reality for the maritime sector.
Currently, if a ship leaves member states’ territorial waters they are considered to have navigated through the EU’s external borders. Thus, ships traveling between ports in two different member states are deemed to have left the EU Customs Territory, which means that customs procedures are required. These procedures are costly and time-consuming. While continental businesses can resort to road and rail transportation, Maltese businesses suffer from double insularity.
The European Commission is seeking to simplify procedures by adopting a series of proposals to create an area where ships can operate freely within the EU. This so-called Blue Belt will eliminate the need for ships to wait in ports for customs clearance. Shipping costs will thus be reduced, administration simplified, and as a result, trade will improve.
The first proposal is to ease customs formalities for intra-EU shipping. This will be done through the upgrading of the regular shipping services, making procedures shorter and more flexible. Also, applying for member-state authorisation will be even shorter. Customs formalities for ships that call into third-country ports will also be simplified. The European Commission is proposing a system that can distinguish between EU and non-EU goods on board. The former can then be discharged more easily.
The European Commission is also proposing to create a harmonised electronic cargo declaration before the end of the year. This new “e-Manifest” allows shipping companies to provide information on the status of goods to customs officials in all manifests (intra-EU and extra-EU).
It is expected that these measures will make the Blue Belt a reality by 2015. This comes at a time when Malta is evaluating the possibility of adopting a National Integrated Maritime Policy, with particular emphasis on increasing the potential for a “blue” economy.
The MBB welcomes the Europ-ean Commission’s proposal for a Blue Belt that will simplify and harmonise maritime administrative procedures throughout the EU. In fact, the MBB had recommended a similar initiative to the European Commission in 2012. The Bureau believes that such an initiative would certainly benefit island state net importers, who do not possess the option of transporting goods by road or rail.
For more information on EU business affairs, contact the Malta Business Bureau on info@mbb.org.mt or call 2125 1719.
Omar Cutajar is the MBB Permanent Delegate in Brussels.