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SUBSIDIARY LEGISLATION 337.45
CUSTOMS (IMPLEMENTATION OF PROVISIONS 
OF CUSTOMS CODE) REGULATIONS
9th September, 2002
LEGAL NOTICE 244 of 2002.
Citation and 
commencement. 
1. (1) The title of these regulations is the the Customs
(Implementation of Provisions of Customs Code) Regulations.
(2) The provisions contained in the Schedule, except for the
provisions of articles 268 to 282 (both inclusive), shall come into
force on 9th September 2002.
(3) The provisions of articles 268 to 282 (both inclusive)
contained in the Schedule shall come into force on such date as the
Minister responsible for customs may by notice in the Gazette
appoint and different dates may be so appointed for different
provisions and purposes thereof * .
Implementation of 
Customs Code.
Cap. 337.
2. The provisions contained in the Schedule shall have effect
to implement the Customs Code contained in the Fourth Schedule
to the Import Duties Act.
Language of 
Annexes.
3. The Annexes in the Schedule are being published in the
English and Maltese languages, other than certain Annexes or parts
thereof which are being published in the English language only.
*16th February, 2004 -  see  Legal Notice 72 of 2004.
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IMPLEMENTING PROVISIONS
A. GENERAL
TITLE I
GENERAL
CHAPTER 1
Definitions
Article 1
For the purposes of this Regulation:
1. Code means: 
The Fourth Schedule to the Import Duties Act establishing the Customs
Code;
2. ATA carnet means: 
the international customs document for temporary importation established
by virtue of the ATA Convention or the Istanbul Convention;
3. Customs Cooperation Council means: 
the organization set up by the Convention establishing a Customs
Cooperation Council, done at Brussels on 15 December 1950;
4. Particulars required for identification of the goods means: 
on the one hand, the particulars used to identify the goods commercially
allowing the customs authorities to determine the tariff classification and, on the
other hand, the quantity of the goods;
5. Goods of a non-commercial nature means: 
goods whose entry for the customs procedure in question is on an occasional
basis and whose nature and quantity indicate that they are intended for the private,
personal or family use of the consignees or persons carrying them, or which are
clearly intended as gifts;
6. Commercial policy measures means:
non-tariff measures established, as part of the national commercial policy, in
the form of provisions governing the import and export of goods, such as
surveillance or safeguard measures, quantitative restrictions or limits and import or
export prohibitions;
7. Customs nomenclature means:
the nomenclatures referred to in Article 20 of the Code;
8. Harmonized System means:
the Harmonized Commodity Description and Coding System;
9. Istanbul Convention means:
the Convention on Temporary Admission agreed at Istanbul on 26 June
1990.
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CHAPTER 2
Decisions
Article 2
Where a person making a request for a decision is not in a position to
provide all the documents and information necessary to give a ruling, the customs
authorities shall provide the documents and information at their disposal.
Article 3
A decision concerning security favourable to a person who has signed an
undertaking to pay the sums due at the first written request of the customs
authorities, shall be revoked where the said undertaking is not fulfilled.
Article 4
A revocation shall not affect goods which, at the moment of its entry into
effect, have already been placed under a procedure by virtue of the revoked
authorization.
However, the customs authorities may require that such goods be assigned to
a permitted customs-approved treatment or use within the period which they shall
set.
CHAPTER 3
Data-processing techniques
Article 4a
1. Under the conditions and in the manner which they shall determine, and with
due regard to the principles laid down by customs rules, the customs authorities may
provide that formalities shall be carried out by a data-processing technique.
For this purpose:
"a data-processing technique" means:
( a ) the exchange of EDI standard messages with the customs authorities;
( b ) the introduction of information required for completion of the
formalities concerned into customs data-processing systems;
"EDI" (electronic data interchange) means, the transmission of data
structured according to agreed message standards, between one computer system and
another, by electronic means,
"standard message" means a predefined structure recognized for the
electronic transmission of data.
2. The conditions laid down for carrying out formalities by a data-processing
technique shall include inter alia measures for checking the source of data and for
protecting data against the risk of unauthorized access, loss, alteration or
destruction.
Article 4b
Where formalities are carried out by a data-processing technique, the
customs authorities shall determine the rules for replacement of the handwritten
signature by another technique which may be based on the use of codes.
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TITLE II
BINDING INFORMATION
CHAPTER 1
Definitions
Article 5
For the purpose of this Title:
1. binding information:
means tariff information or origin information binding on the Customs
administration when the conditions laid down in Articles 6 and 7 are fulfilled;
2. applicant:
- tariff matters: means a person who has applied to the customs authorities for
binding tariff information,
- origin matters: means a person who has applied to the customs authorities
for binding origin information and has valid reasons to do so,
3. holder:
means the person in whose name the binding information is issued.
CHAPTER 2
Procedure for obtaining binding information - Notification
of information to applicants
Article 6
1. Applications for binding information shall be made in writing to the
Comptroller.
2. An application for binding tariff information shall relate to only one type of
goods. An application for binding origin information shall relate to only one type of
goods and one set of circumstances conferring origin.
3. (A) Applications for binding tariff information shall include the following
particulars:
( a ) the holder’s name and address;
( b ) the name and address of the applicant where that person is not the
holder;
( c ) the Maltese Customs Tariff Code Number (customs nomenclature) in
which the goods are to be classified;
( d ) a detailed description of the goods permitting their identification and
the determination of their classification in the Maltese Customs Tariff;
( e ) the composition of the goods and any methods of examination used to
determine this, where the classification depends on it;
( f ) any samples, photographs, plans, catalogues or other documents
available which may assist the customs authorities in determining the
correct classification of the goods in the Maltese Customs Tariff, to be
attached as annexes;
( g ) the classification envisaged;
( h ) agreement to supply a translation of any attached document into English
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or Maltese if requested by the customs authorities;
( i ) any particulars to be treated as confidential;
( j ) indication by the applicant whether, to his knowledge, binding tariff
information for identical or similar goods has already been applied for,
or issued in Malta;
( k ) acceptance that the information supplied may be stored on a database of
the Department of Customs; however, apart from Article 15 of the
Code, the provisions governing the protection of information in force
shall apply.
(B) Applications for binding origin information shall include the following
particulars:
( a ) the holder’s name and address;
( b ) the name and address of the applicant where that person is not the
holder;
( c ) the applicable legal basis, for the purposes of Articles 22 and 27 of the
Code;
( d ) a detailed description of the goods and their tariff classification;
( e ) the composition of the goods and any methods of examination used to
determine this and their ex-works price, as necessary;
( f ) the conditions enabling origin to be deter-mined, the materials used and
their origin, tariff classification, corresponding values and a description
of the circumstances (rules on change of tariff heading, value added,
description of the operation or process, or any other specific rule)
enabling the conditions in question to be met; in particular the exact
rule of origin applied and the origin envisaged for the goods shall be
mentioned;
( g ) any samples, photographs, plans, catalogues or other documents
available on the composition of the goods and their component
materials and which may assist in describing the manufacturing process
or the processing undergone by the materials;
( h ) agreement to supply a translation of any attached document into the
Maltese or English language if requested by the customs authorities;
( i ) any particulars to be treated as confidential, whether in relation to the
public or the administration;
( j ) indication by the applicant whether, to his knowledge, binding tariff
information or binding origin information for goods or materials
identical or similar to those referred to under paragraphs ( d ) or ( f ) have
already been applied for or issued in Malta;
( k ) acceptance that the information supplied may be stored on a public-
access database of the Department of Customs; however, apart from
Article 15 of the Code, the provisions governing the protection of
information in force shall apply.
4. Where, on receipt of the application, the customs authorities consider that it
does not contain all the particulars required to give an informed opinion, the customs
authorities shall ask the applicant to supply the required information. The time limits
of three months and 150 days referred to in Article 7 shall run from the moment
when the customs authorities have all the information needed to reach a decision; the
customs authorities shall notify the applicant that the application has been received
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and the date from which the said time limit will run.
Article 7
Binding information shall be notified to the applicant as soon as possible.
( a ) Tariff matters: if it has not been possible to notify binding tariff information
to the applicant within three months of acceptance of the application, the customs
authorities shall contact the applicant to explain the reason for the delay and indicate
when they expect to be able to notify the information.
( b ) Origin matters: information shall be notified within a time limit of 150 days
from the date when the application was accepted.
Article 8
Binding information shall be notified by means of a form conforming to the
specimen shown at Annex 1 (binding tariff information) or Annex 1A (binding
origin information). The notification shall indicate what particulars will be treated as
confidential. The right of appeal referred to in Article 243 of the Code shall be
mentioned.
CHAPTER 3
Provisions applying in the event of inconsistencies in binding information
Article 9
1. Where different binding information exists the Comptroller shall adopt a
measure to ensure the uniform application of nomenclature or origin rules, as
applicable, as soon as possible and not later than six months from the time he
becomes aware of it.
2. For the purpose of applying paragraph 1, binding origin information shall be
deemed to be different where it confers different origin on goods which:
- fall under the same tariff heading and whose origin was determined in
accordance with the same origin rules and,
- have been obtained using the same manufacturing process.
CHAPTER 4
Legal effect of binding information
Article 10
1. Without prejudice to Articles 5 and 64 of the Code, binding information may
be invoked only by the holder.
2. ( a ) Tariff matters: the customs authorities may require the holder, when
fulfilling customs formalities, to inform the customs authorities that he is in
possession of binding tariff information in respect of the goods being cleared
through customs.
( b ) Origin matters: the authorities responsible for checking the applicability
of binding origin information may require the holder, when completing any
formalities, to inform the said authorities that he is in possession of binding origin
information covering the goods in respect of which the formalities are being
completed.
Article 11
The holder of binding information may use it in respect of particular goods
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only where it is established:
( a ) tariff matters: to the satisfaction of the customs authorities that the
goods in question conform in all respects to those described in the
information presented;
( b ) origin matters: to the satisfaction of the authorities referred to in
paragraph 2( b ) of Article 10 that the goods in question and the
circumstances determining their origin conform in all respect to those
described in the information presented.
Article 12
1. On adoption of one of the acts or measures referred to in Article 12(7) of the
Code, the customs authorities shall take the necessary steps to ensure that binding
information shall thenceforth be issued only in conformity with the act or measure in
question.
2. For binding tariff information, for the purposes of paragraph 1 above, the
date to be taken into consideration shall be the date of the applicability of the said
measures.
Article 13
The Comptroller shall communicate to the holder of the Binding Tariff
Information the dates of the adoption of the measures and acts referred to in this
Article as soon as possible.
CHAPTER 5
Provisions applying in the event of expiry of binding information
Article 14
1. When a holder of binding information which has ceased to be valid for
reasons referred to in Article 12(7) of the Code, wishes to make use of the possibility
of invoking such information during a given period pursuant to paragraph 8 of that
Article, he shall notify the Comptroller, providing any necessary supporting
documents to enable a check to be made that the relevant conditions have been
satisfied.
Article 15
In exceptional cases where the Comptroller adopts a measure derogating
from the provisions of paragraph 8 Article 12, or where the conditions referred to in
Article 14 concerning the possibility of continuing to invoke binding tariff
information or binding origin information have not been fulfilled, the customs
authorities shall notify the holder in writing.
TITLE III
FAVOURABLE TARIFF TREATMENT
BY REASON OF THE NATURE OF GOODS
CHAPTER 1
Goods subject to the condition that they be denatured
Article 16
With reference to Table 1, classification under the tariff subheadings listed
in column 2 of the goods listed against each subheading in column 3 shall be subject
to the condition that the goods are denatured so as to make them unfit for human
consumption, by means of one of the denaturants referred to in column 4 used in the
quantities indicated in column 5.
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Article 17
Denaturing shall be carried out in such a way as to ensure that the product to
be denatured and the denaturant are homogeneously mixed and cannot be separated
again in a manner which is economically viable.
Article 18
By way of derogation from Article 16, the decision-making customs
authorities may temporarily approve the use of a denaturant not specified in column
4 of the table referred to in that Article.
In such a case, notification shall be sent to the Minister within 30 days,
giving detailed particulars of such denaturants and of the quantity used.
Article 19
In the case referred to in Article 18, if the Minister has not delivered an
opinion within 18 months of the date of receipt of the notification to the effect that
the denaturant in question should be included in column 4 of the said table, then use
of such denaturant shall forthwith cease.
B. CUSTOMS VALUE
TITLE 1
CUSTOMS VALUE
CHAPTER 1
General provisions
Article 20
1. In applying the provisions of Articles 28 to 36 of the Code and those of this
title, the customs authorities shall comply with the provisions set out in Annex 23.
The provisions as set out in the first column of Annex 23 shall be applied in
the light of the interpretative note appearing in the second column.
2. If it is necessary to make reference to generally accepted accounting
principles in determining the customs value, the provisions of Annex 24 shall apply.
Article 21
1. For the purposes of this title:
( a ) "the Agreement" means the Agreement on implementation of Article
VII of the General Agreement on Tariffs and Trade concluded in the
framework of the multilateral trade negotiations of 1973 to 1979 and
referred to in the first indent of Article 31(1) of the Code;
( b ) "produced goods" includes goods grown, manufactured and mined;
( c ) "identical goods" means goods produced in the same country which are
the same in all respects, including physical characteristics, quality and
reputation. Minor differences in appearance shall not preclude goods
otherwise conforming to the definition from being regarded as identical;
( d ) "similar goods" means goods produced in the same country which,
although not alike in all respects, have like characteristics and like
component materials which enable them to perform the same functions
and to be commercially interchangeable; the quality of the goods, their
reputation and the existence of a trade-mark are among the factors to be
considered in determining whether goods are similar;
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( e ) "goods of the same class or kind" means goods which fall within a
group or range of goods produced by a particular industry or industry
sector, and includes identical or similar goods.
2. "Identical goods" and "similar goods", as the case may be, do not include
goods which incorporate or reflect engineering, development, artwork, design work,
and plans and sketches for which no adjustment has been made under Article
32(1)( b )(iv) of the Code because such elements were undertaken in Malta.
Article 22
1. For the purposes of Articles 29(1)( d ) and 30(2)( c ) of the Code, persons shall
be deemed to be related only if:
( a ) they are officers or directors of one another’s businesses;
( b ) they are legally recognized partners in business;
( c ) they are employer and employee;
( d ) any person directly or indirectly owns, controls or holds 5% or more of
the outstanding voting stock or shares of both of them;
( e ) one of them directly or indirectly controls the other;
( f ) both of them are directly or indirectly controlled by a third person;
( g ) together they directly or indirectly control a third person; or
( h ) they are members of the same family. Persons shall be deemed to be
members of the same family only if they stand in any of the following
relationships to one another:
- husband and wife,
- parent and child,
- brother and sister (whether by whole or half blood),
- grandparent and grandchild,
- uncle or aunt and nephew or niece,
- parent-in-law and son-in-law or daughter-in-law,
- brother-in-law and sister-in-law.
2. For the purposes of this title, persons who are associated in business with
one another in that one is the sole agent, sole distributor or sole concessionaire,
however described, of the other shall be deemed to be related only if they fall within
the criteria of paragraph 1.
Article 23
For the purposes of determining customs value under Article 29 of the Code
of goods in regard to which the price has not actually been paid at the material time
for valuation for customs purposes, the price payable for settlement at the said time
shall as a general rule be taken as the basis for customs value.
Article 24
Where goods declared for free circulation are part of a larger quantity of the
same goods purchased in one transaction, the price actually paid or payable for the
purposes of Article 29(1)of the Code shall be that price repre-sented by the
proportion of the total price which the quantity so declared bears to the total quantity
purchased.
Apportioning the price actually paid or payable shall also apply in the case
of the loss of part of a consignment or when the goods being valued have been
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damaged before entry into free circulation.
Article 25
Where the price actually paid or payable for the purposes of Article 29(1) of
the Code includes an amount in respect of any internal tax applicable within the
country of origin or export in respect of the goods in question, the said amount shall
not be incorporated in the customs value provided that it can be demonstrated to the
satisfaction of the customs authorities concerned that the goods in question have
been or will be relieved therefrom for the benefit of the buyer.
Article 26
1. For the purposes of Article 29 of the Code, the fact that the goods which are
the subject of a sale are declared for free circulation shall be regarded as adequate
indication that they were sold for export to Malta. In the case of successive sales
before valuation, only the last sale, which led to the introduction of the goods into
Malta, or a sale taking place in Malta before entry for free circulation of the goods
shall constitute such indication.
Where a price is declared which relates to a sale taking place before the last
sale on the basis of which the goods were introduced into Malta, it must be
demonstrated to the satisfaction of the customs authorities that this sale of goods
took place for export to Malta.
The provisions of Articles 45 to 49 shall apply.
2. Where goods are used in another country between the time of sale and the
time of entry into free circulation the customs value need not be the transaction
value.
3. The buyer need satisfy no condition other than that of being a party to the
contract of sale.
Article 27
Where, in applying Article 29(1)( b ) of the Code, it is established that the
sale or price of imported goods is subject to a condition or consideration the value of
which can be determined with respect to the goods being valued, such value shall be
regarded as an indirect payment by the buyer to the seller and part of the price
actually paid or payable provided that the condition or consideration does not relate
to either:
( a ) an activity to which Article 29(3)( b ) of the Code applies; or
( b ) a factor in respect of which an addition is to be made to the price
actually paid or payable under the provisions of Article 32 of the Code.
Article 28
1. For the purposes of Article 29(3)( b ) of the Code, the term "marketing
activities" means all activities relating to advertising and promoting the sale of the
goods in question and all activities relating to warranties or guarantees in respect of
them.
2. Such activities undertaken by the buyer shall be regarded, as having been
undertaken on his own account even if they are performed in pursuance of an
obligation on the buyer following an agreement with the seller.
Article 29
1. In applying Article 30(2)( a ) of the Code (the transaction value of identical
goods), the customs value shall be determined by reference to the transaction value
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of identical goods in a sale at the same commercial level and in substantially the
same quantity as the goods being valued. Where no such sale is found, the
transaction value of identical goods sold at a different commercial level and/or in
different quantities, adjusted to take account of differences attributable to
commercial level and/or to quantity, shall be used, provided that such adjustments
can be made on the basis of demonstrated evidence which clearly establishes the
reasonableness and accuracy of the adjustment, whether the adjustment leads to an
increase or a decrease in the value.
2. Where the costs and charges referred to in Article 32(2) of the Code are
included in the transaction value, an adjustment shall be made to take account of
significant differences in such costs and charges between the imported goods and the
identical goods in question arising from differences in distances and modes of
transport.
3. If, in applying this Article, more than one transaction value of identical
goods is found, the lowest such value shall be used to determine the customs value of
the imported goods.
4. In applying this Article, a transaction value for goods produced by a
different person shall be taken into account only when no transaction value can be
found under paragraph 1 for identical goods produced by the same person as the
goods being valued.
5. For the purposes of this Article, the transaction value of identical imported
goods means a customs value previously determined under Article 29 of the Code,
adjusted as provided for in paragraphs 1 and 2 of this Article.
Article 30
1. In applying Article 30(2)( b ) of the Code (the transaction value of similar
goods), the customs value shall be determined by reference to the transaction value
of similar goods in a sale at the same commercial level and in substantially the same
quantity as the goods being valued. Where no such sale is found, the transaction
value of similar goods sold at a different commercial level and/or in different
quantities, adjusted to take account of differences attributable to commercial level
and/or to quantity, shall be used, provided that such adjustments can be made on the
basis of demonstrated evidence which clearly esta-blishes the reasonableness and
accuracy of the adjustment, whether the adjustment leads to an increase or a decrease
in the value.
2. Where the costs and charges referred to in Article 32(2) of the Code are
included in the transaction value, an adjustment shall be made to take account of
significant differences in such costs and charges between the imported goods and the
similar goods in question arising from differences in distances and modes of
transport.
3. If, in applying this Article, more than one transaction value of similar goods
is found, the lowest such value shall be used to determine the customs value for the
imported goods.
4. In applying this Article, a transaction value for goods produced by a
different person shall be taken into account only when no transaction value can be
found under paragraph 1 for similar goods produced by the same person as the goods
being valued.
5. For the purposes of this Article, the transaction value of similar imported
goods means a customs value previously determined under Article 29 of the Code,
adjusted as provided for in paragraphs 1 and 2 of this Article.
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Article 31
1. ( a ) If the imported goods or identical or similar imported goods are sold in
Malta in the condition as imported, the customs value of imported
goods, determined in accordance with Article 30(2)( c ) of the Code, shall
be based on the unit price at which the imported goods or identical or
similar imported goods are so sold in the greatest aggregate quantity, at
or about the time of the importation of the goods being valued, to
persons who are not related to the persons from whom they buy such
goods, subject to deductions for the following:
(i) either the commissions usually paid or agreed to be paid or the
additions usually made for profit and general expenses (including
the direct and indirect costs of marketing the goods in question)
in connection with sales in Malta of imported goods of the same
class or kind;
(ii) the usual costs of transport and insurance and associated costs
incurred within Malta;
(iii) the import duties and other charges payable in Malta by reason of
the importation or sale of the goods.
( b ) If neither the imported goods nor identical nor similar imported goods
are sold at or about the time of importation of the goods being valued,
the customs value of imported goods determined under this Article shall,
subject otherwise to the provisions of paragraph 1( a ), be based on the
unit price at which the imported goods or identical or similar imported
goods are sold in Malta in the condition as imported at the earliest date
after the importation of the goods being valued but before the expiration
of 90 days after such importation.
2. If neither the imported goods nor identical nor similar imported goods are
sold in Malta in the condition as imported, then, if the importer so requests, the
customs value shall be based on the unit price at which the imported goods, after
further processing, are sold in the greatest aggregate quantity to persons in Malta
who are not related to the persons from whom they buy such goods, due allowance
being made for the value added by such processing and the deductions provided for
in paragraph 1( a ).
3. For the purposes of this Article, the unit price at which imported goods are
sold in the greatest aggregate quantity is the price at which the greatest number of
units is sold in sales to persons who are not related to the per-sons from whom they
buy such goods at the first commercial level after importation at which such sales
take place.
4. Any sale in Malta to a person who supplies directly or indirectly free of
charge or at reduced cost for use in connection with the production and sale for
export of the imported goods any of the elements specified in Article 32(1)( b ) of the
Code should not be taken into account in establishing the unit price for the purposes
of this Article.
5. For the purposes of paragraph 1( b ), the "earliest date" shall be the date by
which sales of the imported goods or of identical or similar imported goods are made
in sufficient quantity to establish the unit price.
Article 32
1. In applying Article 30(2)( d ) of the Code (computed value), the customs
authorities may not require or compel any person not resident in Malta to produce
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for examination, or to allow access to, any account or other record for the purposes
of determining this value. However, information supplied by the producer of the
goods for the purposes of determining the customs value under this Article may be
verified in another country by the Maltese customs authorities with the agreement of
the producer and provided that such authorities give sufficient advance notice to the
authorities of the country in question and the latter do not object to the investigation.
2. The cost or value of materials and fabrication referred to in the first indent
of Article 30(2)( d ) of the Code shall include the cost of elements specified in Article
32(1)( a )(ii) and (iii) of the Code.
It shall also include the value, duly apportioned, of any product or service
specified in Article 32(1)( b ) of the Code which has been supplied directly or
indirectly by the buyer for use in connection with the production of the imported
goods. The value of the elements specified in Article 32(1)( b )(iv) of the Code which
are undertaken in Malta shall be included only to the extent that such elements are
charged to the producer.
3. Where information other than that supplied by or on behalf of the producer
is used for the purposes of determining a computed value, the customs authorities
shall inform the declarant, if the latter so requests, of the source of such information,
the data used and the calculations based on such data, subject to Article 15 of the
Code.
4. The "general expenses" referred to in the second indent of Article 30(2)( d )
of the Code, cover the direct and indirect costs of producing and selling the goods
for export which are not included under the first indent of Article 30(2)(d) of the
Code.
Article 33
Where containers referred to in Article 32(1)( a )(ii) of the Code are to be the
subject of repeated importations, their cost shall, at the request of the declarant, be
apportioned, as appropriate, in accordance with generally ac-cepted accounting
principles.
Article 34
For the purposes of Article 32(1)( b )(iv) of the Code, the cost of research and
preliminary design sketches is not to be included in the customs value.
Article 35
Article 33( c ) of the Code shall apply mutatis mutandis where the customs
value is determined by applying a method other than the transaction value.
Article 36
1. The customs authorities may, at the request of the person concerned,
authorize:
- by derogation from Article 32(3) of the Code, certain elements which
are to be added to the price actually paid or payable, although not
quantifiable at the time of incurrence of the customs debt,
- by derogation from Article 33 of the Code, certain charges which are
not to be included in the customs value, in cases where the amounts
relating to such elements are not shown separately at the time of
incurrence of the customs debt, 
to be determined on the basis of appropriate and specific criteria.
In such cases, the declared customs value is not to be considered as
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provisional within the meaning of the second indent of Article 120 .
2. The authorization shall be granted under the following conditions:
( a ) the carrying out of the procedures provided for by Article 125 would, in
the circumstances, represent disproportionate administrative costs;
( b ) recourse to an application of Articles 30 and 31 of the Code appears to
be inappropriate in the particular circumstances;
( c ) there are valid reasons for considering that the amount of import duties
to be charged in the period covered by the authorization will not be
lower than that which would be levied in the absence of an
authorization;
( d ) competitive conditions amongst operators are not distorted.
CHAPTER 2
Provisions concerning royalties and licence fees
Article 37
1. For the purposes of Article 32(1)( c ) of the Code, royalties and licence fees
shall be taken to mean in particular payment for the use of rights relating:
- to the manufacture of imported goods (in particular, patents, designs,
models and manufacturing know-how), or
- to the sale for exportation of imported goods (in particular, trade marks,
registered designs), or
- to the use or resale of imported goods (in particular, copyright,
manufacturing processes inseparably embodied in the imported goods).
2. Without prejudice to Article 32(6) of the Code, when the customs value of
imported goods is determined under the provisions of Article 29 of the Code, a
royalty or licence fee shall be added to the price actually paid or pay-able only when
this payment:
- is related to the goods being valued, and
- constitutes a condition of sale of those goods.
Article 38
1. When the imported goods are only an ingredient or component of goods
manufactured in Malta, an adjustment to the price actually paid or payable for the
imported goods shall only be made when the royalty or licence fee relates to those
goods.
2. Where goods are imported in an unassembled state or only have to undergo
minor processing before resale, such as diluting or packing, this shall not prevent a
royalty or licence fee from being considered related to the imported goods.
3. If royalties or licence fees relate partly to the imported goods and partly to
other ingredients or component parts added to the goods after their importation, or to
post-importation activities or services, an appropriate ap-portionment shall be made
only on the basis of objective and quantifiable data, in accordance with the
interpretative note to Article 32(3) of the Code in Annex 23.
Article 39
A royalty or licence fee in respect of the right to use a trade mark is only to
be added to the price actually paid or payable for the imported goods where:
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- the royalty or licence fee refers to goods which are resold in the same
state or which are subject only to minor processing after importation,
- the goods are marketed under the trade mark, affixed before or after
importation, for which the royalty or licence fee is paid, and
- the buyer is not free to obtain such goods from other suppliers unrelated
to the seller.
Article 40
When the buyer pays royalties or licence fees to a third party, the conditions
provided for in Article 37(2) shall not be considered as met unless the seller or a
person related to him requires the buyer to make that payment.
Article 41
Where the method of calculation of the amount of a royalty or licence fee
derives from the price of the imported goods, it may be assumed in the absence of
evidence to the contrary that the payment of that royalty or licence fee is related to
the goods to be valued.
However, where the amount of a royalty or licence fee is calculated
regardless of the price of the imported goods, the payment of that royalty or licence
fee may nevertheless be related to the goods to be valued.
Article 42
In applying Article 32 (1) (c) of the Code, the country of residence of the
recipient of the payment of the royalty or licence fee shall not be a material
consideration.
CHAPTER 3
Provisions concerning transport costs
Article 43
In applying Article 32(2) and 33( a ) of the Code:
 ( a ) where goods are invoiced at a uniform free domicile price which
corresponds to the price at the place of introduction, transport costs
within Malta shall not be deducted from that price. However, such
deduction shall be allowed if evidence is produced to the customs
authorities that the free-frontier price would be lower than the uniform
free domicile price;
( b ) where transport is free or provided by the buyer, transport costs to the
place of introduction, calculated in accordance with the schedule of
freight rates normally applied for the same modes of transport, shall be
included in the customs value.
Article 44
1. All postal charges levied up to the place of destination in respect of goods
sent by post shall be included in the customs value of these goods, with the
exception of any supplementary postal charge levied in Malta.
2. No adjustment to the declared value shall, however, be made in respect of
such charges in determining the value of consignments of a non-commercial nature.
3. Paragraphs 1 and 2 are not applicable to goods carried by the express postal
services such as EMS.
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CHAPTER 4
Declarations of particulars and documents to be furnished
Article 45
1. Where it is necessary to establish a customs value for the purposes of
Articles 28 to 36 of the Code, a declaration of particulars relating to customs value
(value declaration) shall accompany the customs entry made in respect of the
imported goods. The value declaration shall be drawn up on a form D.V.1
corresponding to the specimen in Annex 28, supplemented where appropriate by one
or more forms D.V.1 bis corresponding to the specimen in Annex 29.
2. The value declaration provided for in paragraph 1 shall be made only by a
person established in Malta and in possession of the relevant facts.
The second indent of Article 64(2)( b ) and Article 64(3) of the Code shall
apply  mutatis mutandis .
3. The customs authorities may waive the requirement of a declaration on the
form referred to in paragraph 1 where the customs value of the goods in question
cannot be determined under the provisions of Article 29 of the Code. In such cases
the person referred to in paragraph 2 shall furnish or cause to be furnished to the
customs authorities such other information as may be requested for the pur-poses of
determining the customs value under another Article of the said Code; and such
other information shall be supplied in such form and manner as may be prescribed by
the customs authorities.
4. The lodging with a customs office of a declaration required by paragraph 1
shall, without prejudice to the possible application of penal provisions, be equivalent
to the engagement of responsibility by the person referred to in paragraph 2 in
respect of:
- the accuracy and completeness of the particulars given in the
declaration,
- the authenticity of the documents produced in support of these
particulars, and
- the supply of any additional information or document necessary to
establish the customs value of the goods.
Article 46
1. Except where it is essential for the correct application of import duties, the
customs authorities shall waive the requirement of all or part of the declaration
provided for in Article 45(1):
( a ) where the customs value of the imported goods in a consignment does
not exceed Lm 4,000, provided that they do not constitute split or
multiple consignments from the same consignor to the same consignee;
or
( b ) where the importations involved are of a non-commercial nature; or
( c ) where the submission of the particulars in question is not necessary for
the application of the Maltese Customs Tariff or where the customs
duties provided for in the Tariff are not chargeable pursuant to specific
customs provisions.
2. The amount in Maltese liri referred to in paragraph 1( a ) shall be converted
in accordance with Article 18 of the Code. The customs authorities may round-off
upwards or downwards the sum arrived at after conversion.
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3. In the case of continuing traffic in goods supplied by the same seller to the
same buyer under the same commercial conditions, the customs authorities may
waive the requirement that all particulars under Article 45(1) be furnished in support
of each customs declaration, but shall require them whenever the circumstances
change and at least once every three years.
4. A waiver granted under this Article may be withdrawn and the submission of
a D.V.1 may be required where it is found that a condition necessary to qualify for
that waiver was not or is no longer met.
Article 47
Where computerized systems are used, or where the goods concerned are the
subject of a general, periodic or recapitulative declaration, the customs authorities
may authorize variations in the form of presentation of data required for the
determination of customs value.
Article 48
1. The person referred to in Article 45(2) shall furnish the customs authorities
with a copy of the invoice on the basis of which the value of the imported goods is
declared. Where the customs value is declared in writing this copy shall be retained
by the customs authorities.
2. In the case of written declarations of the customs value, the Customs
authorities may request the declarant to furnish the customs authorities with two
copies of the invoice. One of these copies shall be retained by the cus-toms
authorities; the other, bearing the stamp of the office in question and the serial
number of the declaration at the said customs office shall be returned to the
declarant.
Article 49
1. The customs authorities need not determine the customs valuation of
imported goods on the basis of the transaction value method if, in accordance with
the procedure set out in paragraph 2, they are not satisfied, on the basis of reasonable
doubts, that the declared value represents the total amount paid or payable as
referred to in Article 29 of the Code.
2. Where the customs authorities have the doubts described in paragraph 1 they
may ask for additional information in accordance with Article 45 (4). If those doubts
continue, the customs authorities must, before reaching a final decision, notify the
person concerned, in writing if requested, of the grounds for those doubts and
provide him with a reasonable opportunity to respond. A final decision and the
grounds therefor shall be communicated in writing to the person concerned.
C. INTRODUCTION OF GOODS INTO MALTA
CHAPTER 1
Examination of the goods and taking of samples by the person concerned
Article 50
1. Permission to examine the goods under Article 42 of the Code shall be
granted to the person empowered to assign the goods a customs-approved treatment
or use at his oral request, unless the customs authorities consider, having regard to
the circumstances, that a written request is required.
The taking of samples may be authorized only at the written request of the
person concerned.
2. A written request as referred to in paragraph 1 shall be signed by the person
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concerned and lodged with the relevant customs authorities. It shall include the
following particulars:
- name and address of the applicant,
- the location of the goods,
- number of the summary declaration, where it has already been
presented, save where the customs office undertakes to enter such
information, or indication of the previous customs procedure, or the
particulars for identifying the means of transport on which the goods are
located,
- all other particulars necessary for identifying the goods.
The customs authorities shall indicate their authorization on the request
presented by the person concerned. Where the request is for the taking of samples,
the said authorities shall indicate the quantity of goods to be taken.
3. Prior examination of goods and the taking of samples shall be carried out
under the supervision of the customs authorities, which shall specify the procedures
to be followed in each particular case.
The person concerned shall bear the risk and the cost of unpacking,
weighing, repacking and any other operation involving the goods. He shall also pay
any costs in connection with analysis.
4. The samples taken shall be the subject of formalities with a view to
assigning them a customs-approved treatment or use. Where examination of the
samples results in their destruction or irretrievable loss, no debt shall be deemed to
have been incurred. Article 182 (5) of the Code shall apply to waste and scrap.
CHAPTER 2
Summary declaration
Article 51
1. The summary declaration shall be signed by the person making it.
2. The summary declaration shall be endorsed by the customs authorities and
retained by them for the purpose of verifying that the goods to which it relates are
assigned a customs-approved treatment or use within the period laid down in Article
49 of the Code.
3. The summary declaration for goods which have been moved under a transit
procedure before being presented to customs shall take the form of the copy of the
transit document intended for the customs office of destination.
4. The customs authorities may allow the summary declaration to be made in
computerized form. In that case, the rules laid down in paragraphs 1 and 2 shall be
adapted accordingly.
Article 52
1. Goods covered by a summary declaration which have not been unloaded
from the means of transport carrying them shall be re-presented intact by the person
referred to in Article 51(1) whenever the customs authorities so require, until such
time as the goods in question are assigned a customs-approved treatment or use.
2. Any person who holds goods after they have been unloaded in order to move
or store them shall become responsible for compliance with the obligation to re-
present all the goods intact at the request of the customs authorities.
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CHAPTER 3
Temporary Storage
Article 53
1. Where the places referred to in Article 51(1) of the Code have been
approved on a permanent basis for the placing of goods in temporary storage, such
places shall be called "temporary storage facilities".
2. In order to ensure the application of customs rules, the customs authorities
may, where they do not themselves manage the temporary storage facility, require
that:
( a ) temporary storage facilities be double-locked, one key being held by the
said customs authorities;
( b ) the person operating the temporary storage facility keep stock accounts
which enable the movements of goods to be traced.
Article 54
Goods shall be placed in a temporary storage facility on the basis of the
summary declaration. However, the customs authorities may require the lodging of a
specific declaration made out on a form corresponding to the model they have
determined.
Article 55
Without prejudice to Article 56 of the Code or to the provisions applicable
to the sale of goods by the customs authorities, the person who has made the
summary declaration or, where such a declaration has not yet been lodged, the
persons referred to in Article 44(2) of the Code, shall be responsible for giving effect
to the measures taken by the customs authorities pursuant to Article 53(1) of the
Code and for bearing the costs of such measures.
CHAPTER 4
Special provisions applicable to goods consigned by sea or air
Section 1
General provisions
Article 56
Where goods are brought into Malta by sea or air and are consigned under
cover of a single transport document by the same mode of transport, they shall be
presented to customs, within the meaning of Article 40 of the Code, only at the port
or airport where they are un-loaded.
Section 2
Special provisions applicable to the cabin baggage and hold baggage of travellers
Article 57
For the purposes of this section:
( a ) Maltese airport means any airport situated in Maltese customs territory;
( b ) international Maltese airport means any airport in Malta which, having
been so authorized by the competent authorities, is approved for air
traffic with other countries;
( c ) Maltese port means any sea port situated in Maltese customs territory;
( d ) pleasure craft means private boats intended for journeys whose itinerary
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depends on the wishes of the user;
( e ) tourist or business aircraft means private aircraft intended for journeys
whose itinerary depends on the wishes of the user;
( f ) baggage means all objects carried, by whatever means, by the person in
the course of his journey.
Article 58
For the purposes of this section, in the case of air travel, baggage shall be
considered as:
- hold baggage if it has been checked in at the airport of departure and is
not accessible to the person during the flight nor, where relevant, during
the stopovers,
- cabin baggage if the person takes it into the cabin of the aircraft.
Article 59
Any controls and any formalities applicable to:
1. The cabin and hold baggage of persons taking a flight in an aircraft which
comes from a non-Maltese airport shall be carried out at an international Maltese
airport; in this case, baggage shall be subject to the rules applicable to the baggage
of persons coming from another country when the person carrying such baggage
cannot prove the Maltese status of the goods contained therein to the satisfaction of
the competent authorities;
2. The cabin and hold baggage of persons taking a flight in an aircraft which
stops over at a Maltese airport before continuing to a non-Maltese airport, shall be
carried out at the international Maltese airport of departure;
3. The baggage of persons using a maritime service provided by the same
vessel and comprising successive legs departing from, calling at or terminating in a
non-Maltese port shall be carried out at the port at which the baggage in question is
loaded or unloaded as the case may be.
Article 60
Any controls and any formalities applicable to the baggage of persons on
board:
1. pleasure craft, shall be carried out at approved harbours , whatever the
origin or destination of these craft;
2. tourist or business aircraft, shall be carried out at the international Maltese
airport of arrival for flights coming from a non-Maltese airport. 
Article 61
1. Where baggage is loaded at a Maltese airport to an aircraft whose
destination is a non-Maltese airport any controls and any formalities applicable to
hold and cabin baggage shall be carried out at the Maltese airport of departure
provided that airport is an international Maltese airport.
2. Any controls and any formalities applicable to baggage arriving at a Maltese
airport on board a scheduled or charter flight from a non-Maltese airport shall be
carried out at the airport of arrival of the scheduled or charter flight.
3. Any controls and any formalities applicable to baggage loaded at a Maltese
airport onto a tourist or business aircraft on a scheduled or charter flight whose
destination is a non-Maltese airport, shall be carried out at the airport of departure of
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the scheduled or charter flight.
Article 62
The customs authorities shall take the necessary measures to ensure that:
- on arrival, persons cannot transfer goods before controls have been
carried out on the cabin baggage,
- on departure, persons cannot transfer goods after controls have been
carried out on the cabin baggage,
- on arrival, the appropriate arrangements have been made to prevent any
transfer of goods before controls have been carried out on the hold
baggage,
- on departure, the appropriate arrangements have been made to prevent
any transfer of goods after controls have been carried out on the hold
baggage.
Article 63
Hold baggage registered in a Maltese airport shall be identified by a tag
affixed in the airport. A specimen tag and the technical characteristics are shown in
Annex 30.
D. CUSTOMS DECLARATIONS - NORMAL PROCEDURE
CHAPTER 1
Customs declarations in writing
Section 1
General provisions
Article 64
1. Where a customs declaration covers two or more articles, the particulars
relating to each article shall be regarded as constituting a separate declaration.
2. Component parts of industrial plant coming under a single Maltese Customs
Tariff Code shall be regarded as constituting a single item of goods.
Article 65
1. Without prejudice to the possible application of penal provisions, the
lodging with a customs office of a declaration signed by the declarant or his
representative shall render him responsible under the provisions in force for:
- the accuracy of the information given in the declaration,
- the authenticity of the documents attached, and
- compliance with all the obligations relating to the entry of the goods in
question under the procedure concerned.
2. Where the declarant uses data-processing systems to produce his customs
declarations, the Comptroller may provide that the handwritten signature may be
replaced by another identification technique which may be based on the use of
codes. This facility shall be granted only if the technical and administrative
conditions laid down by the Comptroller are complied with.
The Comptroller may also provide that declarations produced using customs
data-processing systems may be directly authenticated by those systems, in place of
the manual or mechanical application of the customs office stamp and the signature
of the competent official.
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3. Under the conditions and in the manner which he shall determine, the
Comptroller may allow some of the particulars of the written declaration referred to
in Annex 37 to be replaced by sending these particulars to the customs office
designated for that purpose by electronic means, where appropriate in coded form.
Article 66
Documents accompanying a declaration shall be kept by the customs
authorities unless the said authorities provide otherwise or unless the declarant
requires them for other operations. In the latter case the customs authorities shall
take the necessary steps to ensure that the documents in question cannot
subsequently be used except in respect of the quantity or value of goods for which
they remain valid.
Article 67
1. The declaration shall be lodged with the customs office designated by the
Comptroller. It may be lodged as soon as presentation of the goods has taken place.
2. The Comptroller may authorize the declaration to be lodged before the
declarant is in a position to present the goods. In this case, the customs authorities
may set a time limit, to be determined according to the circumstances, for
presentation of the goods. If the goods have not been presented within this time
limit, the declaration shall be considered not to have been lodged.
3. Where a declaration has been lodged before the goods to which it relates
have arrived at the customs office or at another place designated by the Comptroller,
it may be accepted only after the goods in question have been presented to customs.
Article 68
1. The declaration shall be lodged with the competent customs office during
the days and hours appointed for opening.
However, the customs authorities may, at the request of the declarant and at
his expense, authorize the declaration to be lodged outside the appointed days and
hours.
2. Any declaration lodged with the officials of a customs office in any other
place duly designated for that purpose by agreement between the customs authorities
and the person concerned shall be considered to have been lodged in the said office.
Article 69
The date of acceptance of the declaration shall be noted thereon.
Article 70
The customs authorities may allow or require the corrections referred to in
Article 65 of the Code to be made by the lodging of a new declaration intended to
replace the original declaration. In that event, the relevant date for determination of
any duties payable and for the application of any other provisions governing the
customs procedure in question shall be the date of the acceptance of the original
declaration.
Section 2
Forms to be used
Article 71
1. The official model for written declarations to customs by the normal
procedure, for the purposes of placing goods under a customs procedure or re-
exporting them in accordance with Article 182(3) of the Code, shall be the Single
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Administrative Document.
2. Other forms may be used for this purpose where the provisions of the
customs procedure in question permit.
3. The provisions of paragraphs 1 and 2 shall not preclude:
- waiver of the written declaration prescribed in Articles 90 to 101 for
release for free circulation, export or temporary importation,
- waiver by the Comptroller of the form referred to in paragraph 1 where
the special provisions laid down in Articles 102 and 103 with regard to
consignments by letter or parcel-post apply,
- use of special forms to facilitate the declaration in specific cases, where
the customs authorities so permit,
- waiver by the customs authorities of the form referred to in paragraph 1
in the case of existing or future agreements or arrangements concluded
between Malta and another country or other countries with a view to
greater simplification of formalities in all or part of the trade between
Malta and those countries,
- use by the persons concerned of loading lists for the completion of
transit formalities in the case of consignments composed of more than
one kind of goods,
- printing of export, transit or import declarations and documents
certifying the Maltese status of goods not being moved under internal
transit procedure by means of official or private-sector data-processing
sys-tems, if necessary on plain paper, on conditions laid down by the
customs authorities,
- provision by the customs authorities to the effect that where a
computerized declaration-processing system is used, the declaration,
within the meaning of paragraph 1, may take the form of the Single
Administrative Document printed out by that system.
4. Where in national legislation, reference is made to an export, re-export or
import declaration or a declaration placing goods under another customs procedure,
the customs authorities may not require any administrative documents other than
those which are:
- expressly created by national legislation or provided for by such
legislation,
- required under the terms of international conventions compatible with
national legislation,
- required from operators to enable them to qualify, at their request, for
an advantage or specific facility,
- required, with due regard for the provisions of national legislation, for
the implementation of specific regulations which cannot be
implemented solely by the use of the document referred to in paragraph
1.
Article 72
Without prejudice to Article 71(3), the customs authorities may in general,
for the purpose of completing export or import formalities, dispense with the
production of one or more copies of the Single Administrative Document intended
for use by such authorities, provided that the information in question is available on
other media.
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Article 73
1. The Single Administrative Document shall be presented in subsets
containing the number of copies required for the completion of formalities relating
to the customs procedure under which the goods are to be placed.
2. Where the transit procedure is preceded or followed by another customs
procedure, a subset containing the number of copies required for the completion of
formalities relating to the transit procedure and the preceding or following procedure
may be presented.
3. The subsets referred to in paragraphs 1 and 2 shall be in accordance with the
specimen contained in Annex 32.
4. Without prejudice to Articles 71(3), 87 to 89 or 120 to 155, the declaration
forms may be supplemented, where appropriate, by one or more continuation forms
presented in subsets containing the declaration copies needed to complete the
formalities relating to the customs procedure under which the goods are to be placed.
Those copies needed in order to complete the formalities relating to preceding or
subsequent customs procedures may be at-tached where appropriate.
The continuation subsets shall be taken from two sets of four copies, in
accordance with the specimen contained in Annex 34.
The continuation forms shall be an integral part of the Single Administrative
Document to which they relate.
5. By way of derogation from paragraph 4, the Comptroller may provide that
continuation forms shall not be used where a computerized system is used to produce
such declarations.
Article 74
1. Where Article 73(2) is applied, each party involved shall be liable only as
regards the particulars relating to the procedure for which he applied as declarant,
principal or as the representative of one of these.
2. For the purposes of paragraph 1, where the declarant uses a Single
Administrative Document issued during the preceding customs procedure, he shall
be required, prior to lodging his declaration, to verify the accuracy of the existing
particulars for the boxes for which he is responsible and their applicability to the
goods in question and the procedure applied for, and to supplement them as
necessary.
In the cases referred to in the first subparagraph, the declarant shall
immediately inform the customs office where the declaration is lodged of any
discrepancy found between the goods in question and the existing particulars. In this
case the declarant shall then draw up his declaration on fresh copies of the Single
Administrative Document.
Article 75
Where the Single Administrative Document is used to cover several
successive customs procedures, the customs authorities shall satisfy themselves that
the particulars given in the declarations relating to the various procedures in
question all agree.
Article 76
The declaration must be drawn up either in Maltese or English.
If necessary, the customs authorities may require from the declarant or his
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repre-sentative a translation of the declaration into either Maltese or English. The
translation shall replace the corresponding particulars in the declaration in question.
By way of derogation from the preceding subparagraph, the declaration shall
be drawn up either in Maltese or English in all cases where the declaration is made
on copies other than those initially presented to the customs office of the country of
departure.
Article 77
1. The Single Administrative Document must be completed in accordance with
the explanatory note in Annex 37 and any additional rules laid down in other
national legislation.
2. The customs authorities shall ensure that users have ready access to copies
of the explanatory note referred to in paragraph 1.
3. The customs administration may, if necessary, supplement the explanatory
note.
Article 78
The codes to be used in completing the forms referred to in Article 71(1) are
listed in Annex 38.
Article 79
In cases where the rules require supplementary copies of the form referred to
in Article 71(1), the declarant may use additional sheets or photocopies of the said
form for this purpose.
Such additional sheets or photocopies must be signed by the declarant,
presented to the customs authorities and endorsed by the latter under the same
conditions as the Single Administrative Document. They shall be accepted by the
customs authorities as if they were original documents provided that their quality
and legibility are considered satisfactory by the said authorities.
Article 80
1. The forms referred to in Article 71(1) shall be printed on self-copying paper
dressed for writing purposes and weighing at least 40 g/m 2 . The paper must be
sufficiently opaque for the information on one side not to affect the legibility of the
information on the other side and its strength should be such that in normal use it
does not easily tear or crease.
The paper shall be white for all copies. However, on the copies used for
transit (1, 4 and 5 ), boxes 1 (first and third subdivisions), 2, 3, 4, 5, 6, 8, 15, 17, 18,
19, 21, 25, 27, 31, 32, 33 (first subdivision on the left), 35, 38, 40, 44, 50, 51, 52, 53,
55 and 56 shall have a green back-ground.
The forms shall be printed in green ink.
2. The boxes are based on a unit of measurement of one tenth of an inch
horizontally and one sixth of an inch vertically. The subdivisions are based on a unit
of measurement of one-tenth of an inch horizontally.
3. A colour marking of the different copies shall be effected in the following
manner: on forms conforming to the specimens shown in Annexes 32 and 34, copies
1/6, 2/7, 3/8 and 4/5 shall have at the right hand edge a continuous margin and to the
right of this a broken margin coloured respectively red, green, yellow and blue.
The width of these margins shall be approximately 3mm. The broken margin
shall comprise a series of squares with a side measurement of 3mm each one
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separated by3 mm.
4. The copies on which the particulars contained in the forms shown in
Annexes 32 and 34 must appear by a self-copying process are shown in Annex 36.
5. The forms shall measure 210 ×297 mm with a maximum tolerance as to
length of 5 mm less and 8 mm more.
6. The customs authorities may require that the forms show the name and
address of the printer or a mark enabling the printer to be identified. They may also
make the printing of the forms conditional on prior technical approval.
Section 3
Particulars required according to the customs procedure concerned
Article 81
1. The maximum list of boxes to be used for declarations of entry for a
particular customs procedure using the Single Administrative Document is contained
in Annex 37.
2. Annex 37 also contains the minimum list of boxes to be used for
declarations of entry for a particular customs procedure.
Article 82
The particulars required when one of the forms referred to in Article 71(2) is
used depend on the form in question.
They shall be supplemented where appropriate by the provisions relating to
the customs procedure in question.
Section 4
Documents to accompany the customs declaration
Article 83
1. The following documents shall accompany the customs declaration for
release for free circulation:
( a ) the invoice on the basis of which the customs value of the goods is
declared, as required under Article 48;
( b ) where it is required under Article 45, the declaration of particulars for
the assessment of the customs value of the goods declared, drawn up in
accordance with the conditions laid down in the said Article;
( c ) the documents required for the application of preferential tariff
arrangements or other measures derogating from the legal rules
applicable to the goods declared;
( d ) all other documents required for the application of the provisions
governing the release for free circulation of the goods declared.
2. The customs authorities may require transport documents or documents
relating to the previous customs procedure, as appropriate, to be produced when the
declar-ation is lodged.
Where a single item is presented in two or more packages, they may also
require the production of a packing list or equivalent document indicating the
contents of each package.
Article 84
1. The transit declaration shall be accompanied by the transport document. The
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office of departure may dispense with the presentation of this document at the time
of completion of the formalities. However, the transport document shall be presented
at the request of the customs office or any other competent authority in the course of
transport.
2. Without prejudice to any applicable simplification measures, the customs
document of export/dispatch or re-exportation of the goods from Malta or any
document of equivalent effect shall be presented to the office of departure with the
transit declaration to which it relates.
3. The customs authorities may, where appropriate, require production of the
document relating to the preceding customs procedure.
Article 85
1. Without prejudice to specific provisions, the documents to accompany the
declaration of entry for a customs procedure with economic impact, shall be as
follows:
( a ) for the customs warehousing procedure:
- no documents;
( b ) for the inward-processing procedure:
- drawback system; the documents laid down in Article 83(1),
- suspension system; the documents laid down in Article 83(1)( a )
and ( b ), and, where appropriate, the written authorization for the
customs procedure in question or a copy of the application for
authorization where the second sub-paragraph of Article 180(1)
applies;
( c ) for processing under customs control the documents laid down in
Article 83(1)( a ) and ( b ), and, where appropriate, the written
authorization for the customs procedure in question or a copy of the
application for authorisation where Article 180(1) applies;
( d ) for the temporary importation procedure:
- with partial relief from import duties; the documents laid down in
Article 83(1),
- with total relief from import duties; the documents laid down in
Article 83 (1)( a ) and ( b ), and, where appropriate, the written
authorization for the customs procedure in question or a copy of
the application for authorisation where Article 180(1) applies.
( e ) for the outward-processing procedures, the documents laid down in
Article 86(1) and, where appropriate, the written authorization of the
procedure or a copy of the application for authorization where the
second subparagraph of Article 180(1) applies.
2. Article 83(2) shall apply to declarations of entry for any customs procedure
with economic impact.
3. The customs authorities may allow the written authorization of the
procedure or a copy of the application for authorization to be kept at their disposal
instead of accompanying the declaration.
Article 86
1. The export or re-export declaration shall be accompanied by all documents
necessary for the correct application of export duties and of the provisions governing
the export of the goods in question.
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2. Article 83(2) shall apply to export or re-export declarations.
CHAPTER 2
Customs declarations made using a data-processing technique
Article 87
1. Where the customs declaration is made by a data-processing technique, the
particulars of the written declaration referred to in Annex 37 shall be replaced by
sending to the customs office designated for that purpose, with a view to their
processing by computer, data in codified form or data made out in any other form
specified by the customs authorities and corresponding to the particulars required for
written declarations.
2. A customs declaration made by EDI shall be considered to have been lodged
when the EDI message is received by the customs authorities.
Acceptance of a customs declaration made by EDI shall be communicated to
the declarant by means of a response message containing at least the identification
details of the message received and/or the registration number of the customs
declaration and the date of acceptance.
3. Where the customs declaration is made by EDI, the customs authorities shall
lay down the rules for implementing the provisions laid down in Article 112.
4. Where the customs declaration is made by EDI, the release of the goods
shall be notified to the declarant, indicating at least the identification details of the
declaration and the date of release.
5. Where the particulars of the customs declaration are introduced into customs
data-processing systems, paragraphs 2, 3 and 4 shall apply mutatis mutandis.
Article 88
Where a paper copy of the customs declaration is required for the
completion of other formalities, this shall, at the request of the declarant, be
produced and authenticated, either by the customs office concerned, or in accordance
with the second subparagraph of Article 65(2).
Article 89
Under the conditions and in the manner which they shall determine, the
customs authorities may authorize the documents required for the entry of goods for
a customs procedure to be made out and transmitted by electronic means.
CHAPTER 3
Customs declarations made orally or by any other act
Section 1
Oral declarations
Article 90
Customs declarations may be made orally for the release for free circulation
of the following goods:
( a ) goods of a non-commercial nature:
- contained in travellers’ personal luggage, or
- sent to private individuals, or
- in other cases of negligible importance, where this is authorized
by the customs authorities;
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( b ) goods of a commercial nature provided:
- the total value per consignment and per declarant does not exceed
the statistical threshold laid down in the national provisions in
force, and
- the consignment is not part of a regular series of similar
consignments, and
- the goods are not being carried by an independent carrier as part
of a larger freight movement;
( c ) the goods referred to in Article 94, where these qualify for relief as
returned goods;
( d ) the goods referred to in Article 95( b ) and ( c ).
Article 91
Customs declarations may be made orally for the export of:
( a ) goods of a non-commercial nature:
- contained in travellers’ personal luggage, or
- sent by private individuals;
( b ) the goods referred to in Article 90( b );
( c ) the goods referred to in Article 96( b ) and ( c );
( d ) other goods in cases of negligible economic importance, where this is
authorized by the customs authorities.
Article 92
1. The customs authorities may provide that Articles 90 and 91 shall not apply
where the person clearing the goods is acting on behalf of another person in his
capacity as customs agent.
2. Where the customs authorities are not satisfied that the particulars declared
are accurate or that they are complete, they may require a written declaration.
Article 93
Where goods declared to customs orally in accordance with Articles 90 and
91 are subject to import or export duty the customs authorities shall issue a receipt to
the person concerned against payment of the duty owing.
The receipt shall include at least the following information:
( a ) a description of the goods which is sufficiently precise to enable them to
be identified; this may include the tariff heading;
( b ) the invoice value and/or quantity of the goods, as appropriate;
( c ) a breakdown of the charges collected;
( d ) the date on which it was made out;
( e ) the name of the authority which issued it.
Article 94
1. Customs declarations may be made orally for the temporary importation of
the following goods, in accordance with the conditions laid down in Article 173(3),
second paragraph:
( a ) - packings listed in Article 239( a ), bearing the permanent, indelible
markings of a person established outside Malta,
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- radio and television production and broadcasting equipment and
vehicles specially adapted for use for the above purpose and their
equipment imported by public or private organizations established
outside Malta and approved by the customs authorities issuing the
authorization for the procedure to import such equipment and vehicles,
- instruments and apparatus necessary for doctors to provide assistance
for patients awaiting an organ transplant pursuant to Article 237;
( b ) the goods referred to in Article 97;
( c ) other goods, where this is authorised by the customs authorities.
2. The goods referred to in paragraph 1 may also be the subject of an oral
declaration for re-exportation discharging a temporary importation procedure.
Section 2
Customs declarations made by any other act
Article 95
The following, where not expressly declared to customs, shall be considered
to have been declared for release for free circulation by the act referred to in Article
98:
( a ) goods of a non-commercial nature contained in travellers’ personal
luggage entitled to relief either under the Second Schedule, item ( j ) to
the Import Duties Act, or as returned goods;
( b ) means of transport entitled to relief as returned goods;
( c ) goods imported in the context of traffic of negligible importance and
exempted from the requirement to be conveyed to a customs office in
accordance with Article 38(4) of the Code, provided they are not subject
to import duty.
Article 96
The following, where not expressly declared to customs, shall be considered
to have been declared for export by the act referred to in Article 98( b ):
( a ) goods of a non-commercial nature not liable for export duty contained
in travellers’ personal luggage;
( b ) means of transport registered in Malta and intended to be re-imported;
( c ) other goods in cases of negligible economic importance, where this is
authorized by the customs authorities.
Article 97
1. The following, where not declared to customs in writing or orally, shall be
considered to have been declared for temporary importation by the act referred to in
Article 98, subject to Article 247:
( a ) personal effects and goods for sports purposes imported by travellers in
accordance with Article 232;
( b ) the means of transport listed in Articles 225 to 230;
( c ) welfare materials for seafarers used on a vessel engaged in international
maritime traffic pursuant to Article 233( a ).
2. Where they are not declared to customs in writing or orally, the goods
referred to in paragraph 1 shall be considered to have been declared for re-
exportation discharging the temporary importation procedure by the act referred to
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in Article 98.
Article 98
For the purposes of Articles 95 to 97, the act which is considered to be a
customs declaration may take the following forms:
( a ) in the case of goods conveyed to a customs office or to any other place
designated or approved in accordance with Article 38(1)( a ) of the Code:
- going through the green or "nothing to declare" channel in
customs offices where the two-channel system is in operation,
- going through a customs office which does not operate the two-
channel system without spontaneously making a customs
declaration;
- affixing a "nothing to declare" sticker or customs declaration disc
to the windscreen of passenger vehicles where this possibility is
provided for in national provisions;
( b ) in the case of exemption from the obligation to convey goods to
customs in accordance with the provisions implementing Article 38(4)
of the Code, in the case of export in accordance with Article 96 and in
the case of re-exportation in accordance with Article 97(2):
- the sole act of crossing the customs territory of Malta.
Article 99
1. Where the conditions of Articles 95 to 97 are fulfilled, the goods shall be
considered to have been presented to customs within the meaning of Article 63 of the
Code, the declaration to have been accepted and release to have been granted, at the
time when the act referred to in Article 98 is carried out.
2. Where a check reveals that the act referred to in Article 98 has been carried
out but the goods imported or taken out do not fulfil the conditions in Articles 95 to
97, the goods concerned shall be considered to have been imported or exported
unlawfully.
Section 3
Provisions common to Sections 1 and 2
Articles 100
The provisions of Articles 90 to 97 shall not apply to goods in respect of
which the payment of refunds or other amounts or the repayment of duties is sought,
or which are subject to a prohibition or restriction or to any other special formality.
Article 101
For the purposes of Sections 1 and 2, "traveller" means:
A. on import:
1. any person temporarily entering Malta, not normally resident
there, and
2. any person returning to Malta where he is normally resident, after
having been temporarily in another country;
B. on export:
1. any person temporarily leaving Malta where he is normally
resident, and
2. any person leaving Malta after a temporary stay, not normally
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resident there.
Section 4
Postal traffic
Article 102
1. The following postal consignments shall be considered to have been
declared to customs:
A. for release for free circulation:
( a ) at the time when they are introduced in Malta:
- postcards and letters containing personal messages only,
- braille letters,
- printed matter not liable for import duties, and
- all other consignments sent by letter or parcel post which are
exempt from the obligation to be conveyed to customs in
accordance with provisions pursuant to Article 38(4) of the Code;
( b ) at the time when they are presented to customs:
- consignments sent by letter or parcel post other than those
referred to at ( a ), provided they are accompanied by a CN22 and/
or CN23 declaration;
B. for export:
( a ) at the time when they are accepted by the postal authorities, in the case
of consignments by letter and parcel post which are not liable to export
duties;
( b ) at the time of their presentation to customs, in the case of consignments
sent by letter or parcel post which are liable to export duties, provided
they are accompanied by a CN22 and/or CN23 declaration;
2. The consignee, in the cases referred to in paragraph 1A, and the consignor,
in the cases referred to in paragraph 1B, shall be considered to be the declarant and,
where applicable, the debtor. The customs authorities may provide that the postal
administration shall be considered as the declarant and, where applicable, as the
debtor.
3. For the purposes of paragraph 1, goods not liable to duty shall be considered
to have been presented to customs within the meaning of Article 63 of the Code, the
customs declaration to have been accepted and release granted:
( a ) in the case of imports, when the goods are delivered to the consignee;
( b ) in the case of exports, when the goods are accepted by the postal
authorities.
4. Where a consignment sent by letter or parcel post which is not exempt from
the obligation to be conveyed to customs in accordance with provisions pursuant to
Article 38(4) of the Code is presented without a CN22 and/or CN23 declaration or
where such declaration is incom-plete, the customs authorities shall determine the
form in which the customs declaration is to be made or supplemented.
Article 103
Article 102 shall not apply:
- to consignments containing goods for commercial purposes of an
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aggregate value exceeding the statistical threshold laid down by the
national provisions in force; the customs authorities may lay down
higher thresholds,
- to consignments containing goods for commercial purposes which form
part of a regular series of like operations,
- where a customs declaration is made in writing, orally or using a data-
processing technique,
- to consignments containing the goods referred to in Article 100.
E. EXAMINATION OF THE GOODS, FINDINGS OF THE CUSTOMS OFFICE 
AND OTHER MEASURES TAKEN BY THE CUSTOMS OFFICE
Article 104
1. The goods shall be examined in the places designated and during the hours
appointed for that purpose by the customs authorities.
2. However, the customs authorities may, at the request of the declarant,
authorize the examination of goods in places or during hours other than those
referred to in paragraph 1.
Any costs involved shall be borne by the declarant.
Article 105
1. Where the customs authorities elect to examine goods they shall so inform
the declarant or his representative.
2. Where they decide to examine a part of the goods only, the customs
authorities shall inform the declarant or his representative which items they wish to
examine. The customs authorities’ choice shall be final.
Article 106
1. The declarant or the person designated by him to be present at the
examination of the goods shall render the customs authorities the assistance required
to facilitate their work. Should the customs authorities consider the assistance
rendered unsatisfactory, they may require the declarant to designate another person
able to give the necessary assistance.
2. Where the declarant refuses to be present at the examination of the goods or
to designate a person able to give the assistance which the customs authorities
consider necessary, the said authorities shall set a deadline for compliance, unless
they consider that such an examination may be dispensed with.
If, on expiry of the deadline, the declarant has not complied with the
requirements of the customs authorities, the latter, for the purpose of applying
Article 75( a ) of the Code, shall proceed with the examination of the goods, at the
declarant’s risk and expense, calling if necessary on the services of an expert or any
other person designated in accordance with the provisions in force.
3. The findings made by the customs authorities during the examination carried
out under the conditions referred to in the preceding paragraph shall have the same
validity as if the examination had been carried out in the presence of the declarant.
4. Instead of the measures laid down in paragraphs 2 and 3, the customs
authorities shall have the option of deeming a declaration invalid where it is clear
that the declarant’s refusal to be present at the examination of the goods or to
designate a person able to give the necessary assistance neither prevents, nor seeks
to prevent, those authorities from finding that the rules governing the entry of the
goods for the customs procedure concerned have been breached, and neither evades,
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nor seeks to evade, the provisions of Article 66(1) or Article 80(2) of the Code.
Article 107
1. Where the customs authorities decide to take samples, they shall so inform
the declarant or his representative.
2. Samples shall be taken by the customs authorities themselves. However,
they may ask that this be done under their supervision by the declarant or a person
designated by him.
Samples shall be taken in accordance with the methods laid down in the
provisions in force.
3. The quantities taken as samples should not exceed what is needed for
analysis or more detailed examination, including possible check analysis.
Article 108
1. The declarant or the person designated by him to be present at the taking of
samples shall render the customs authorities all the assistance needed to facilitate the
operation.
2. Where the declarant refuses to be present at the taking of samples or to
designate a person to attend, or where he fails to render the customs authorities all
the assistance needed to facilitate the operation, the provisions of the second
sentence of Article 106(1) and of Article 106(2), (3) and (4) shall apply.
Article 109
Where the customs authorities take samples for analysis or more detailed
examination, they shall authorize the release of the goods in question without
waiting for the results of the analysis or examination, unless there are other grounds
for not doing so, and provided that, where a customs debt has been or is likely to be
incurred, the duties in question have already been entered in the accounts and paid or
secured.
Article 110
1. The quantities taken by the customs office as samples shall not be deducted
from the quantity declared.
2. Where an export or outward processing declaration is concerned, the
declarant shall be authorized, where circumstances permit, to replace the quantities
of goods taken as samples by identical goods, in order to make up the consignment.
Article 111
1. Unless destroyed by the analysis or more detailed examination, the samples
taken shall be returned to the declarant at his request and expense once they no
longer need to be kept by the customs authorities, in particular after all the
declarant’s means of appeal against the decision taken by the customs authorities on
the basis of the results of that analysis or more detailed examination have been
exhausted.
2. Where the declarant does not ask for samples to be returned, they may either
be destroyed or kept by the customs authorities. In specific cases, however, the
customs authorities may require the declarant to remove any samples that remain.
Article 112
1. Where the customs authorities verify the declarations and accompanying
documents or examine the goods, they shall indicate, at least in the copy of the
declaration retained by the said authorities, or in a document attached thereto, the
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basis and results of any such verification or examination. In the case of partial
examination of the goods, particulars of the consignment examined shall also be
given.
Where appropriate, the customs authorities shall also indicate in the
declaration that the declarant or his representative was absent.
2. Should the result of the verification of the declaration and accompanying
documents or examination of the goods not be in accordance with the particulars
given in the declaration, the customs authorities shall specify, at least in the copy of
the declaration retained by the said authorities, or in a document attached thereto, the
particulars to be taken into account for the purposes of the application of charges on
the goods in question and, where appropriate, calculating any refunds or other
amounts payable on exportation, and for applying the other provisions governing the
customs procedure for which the goods are entered.
3. The findings of the customs authorities shall indicate, where appropriate, the
means of identification adopted. They shall be dated and bear the particulars needed
to identify the official issuing them.
4. Where the customs authorities neither verify the declaration nor examine the
goods, they need not endorse the declaration or attached document referred to in
paragraph 1.
Article 113
1. The granting of release shall give rise to the entry in the accounts of the
import duties determined according to the particulars in the declaration. Where the
customs authorities consider that the checks which they have undertaken may enable
an amount of import duties higher than that resulting from the particulars made in
the declaration to be assessed, they shall further require the lodging of a security
sufficient to cover the difference between the amount according to the particulars in
the declaration and the amount which may finally be payable on the goods. However,
the declarant may request the immediate entry in the accounts of the amount of
duties to which the goods may ultimately be liable instead of lodging this security.
2. Where, on the basis of the checks which they have carried out, the customs
authorities assess an amount of import duties different from the amount which
results from the particulars in the declaration, the release of the goods shall give rise
to the immediate entry in the accounts of the amount thus assessed.
3. Where the customs authorities have doubts about whether or not a
prohibition or restriction applies and this cannot be resolved until the results of the
checks the authorities have carried out are available, the goods in question cannot be
released. 
Article 114
1. The customs authorities shall determine the form of release, taking due
account of the place in which the goods are located and of the special arrangements
for their supervision.
2. Where the declaration is made in writing, a reference to the release and its
date shall be made on the declaration or, where applicable, a document attached, and
a copy shall be returned to the declarant.
Article 115
1. Where the customs authorities have been unable to grant release for one of
the reasons specified in the second or third indent of Article 75( a ) of the Code, they
shall give the declarant a time limit to regularize the situation of the goods.
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2. Where, in the circumstances referred to in the second indent of Article 75( a )
of the Code, the declarant has not produced the requisite documents within the time
limit referred to in paragraph 1, the declaration in question shall be deemed invalid
and the customs office shall cancel it. The provisions of Article 66(3) of the Code
shall apply.
3. In the circumstances referred to in the third indent of Article 75( a ) of the
Code, and without prejudice to any measures taken under the first subparagraph of
Article 66(1) or Article 182 of the Code, where the declarant has neither paid nor
guaranteed the duties due within the time limit referred to in paragraph 1, the
customs authorities may start the preliminary formalities for the sale of the goods. In
this case the goods shall be sold unless the requisite conditions have been fulfilled in
the interim, if necessary by forced sale where the law so permits. The customs
authorities shall inform the declarant thereof.
The customs authorities may, at the risk and expense of the declarant,
transfer the goods in question to special premises under their supervision.
Article 116
By way of derogation from Article 66(2) of the Code, a customs declaration
may be invalidated after the goods have been released, as provided below:
1. Where it is established that the goods have been declared in error for a
customs procedure entailing the payment of import duties instead of being placed
under another customs procedure, the customs authorities shall invalidate the
declaration if a request to that effect is made within three months of the date of
acceptance of the declaration provided that:
- any use of the goods has not contravened the conditions of the customs
procedure under which they should have been placed,
- when the goods were declared, they were intended to be placed under
another customs procedure, all the requirements of which they fulfilled,
and
- the goods are immediately entered for the customs procedure for which
they were actually intended.
The declaration placing the goods under the latter customs procedure shall
take effect from the date of acceptance of the invalidated declaration.
The customs authorities may permit the three-month period to be exceeded
in duly substantiated exceptional cases;
1a. Where it is established that the goods have been declared in error, instead of
other goods, for a customs procedure entailing the obligation to pay import duties,
the customs authorities shall invalidate the declaration if a request to that effect is
made within three months of the date of acceptance of the declaration, provided that:
- the goods originally declared:
(i) have not been used other than as autho-rized in their original
status; and
(ii) have been restored to their original status;
and that
- the goods which ought to have been declared for the customs procedure
originally intended:
(i) could, when the original declaration was lodged, have been
presented to the same customs office; and
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(ii) have been declared for the same customs procedure as that
originally intended.
The customs authorities may allow the time limit referred to above to be
exceeded in duly substantiated exceptional cases,
1b. In the case of mail order goods which are returned, the customs authorities
shall invalidate the declarations of release for free circulation if a request to that
effect is made within three months of the date of acceptance of the declaration,
provided that the goods have been exported to the original supplier’s address or to
another address indicated by the said supplier;
1c. Where a retroactive authorisation is granted in accordance with:
- Applicable provisions for release for free circulation with a favourable
tariff treatment or at a reduced or zero rate of duty on account of the
end-use of the goods, or
- Article 180 for a customs procedure with economic impact.
2. Where the goods have been declared for export or for the outward
processing procedure, the declaration shall be invalidated provided that:
( a ) in the case of goods which are subject to export duty, to an application
for the repayment of import duty, to refunds or other export amounts or
to other special measures on export:
- the declarant provides the customs office of export with evidence
that the goods have not left Malta,
- the declarant returns to the said office all copies of the customs
declaration, together with any other documents issued to him on
acceptance of the declaration,
- the declarant provides the customs office of export with evidence
that any refunds and other amounts granted on the strength of the
export declaration for the goods in question have been repaid or
that the necessary measures have been taken by the departments
concerned to ensure that they are not paid, and
- the declarant, in accordance with the provi-sions in force,
complies with any other obligations laid down by the customs
office of export to regularize the position of the goods.
Invalidation of the declaration shall entail cancellation of any
adjustments made on an export licence presented in support of the
declaration.
Where the goods declared for export are required to leave Malta by a
specified time limit, failure to comply with that time limit shall entail
invalidation of the relevant declaration;
( b ) in the case of other goods, the customs office of export has been
informed in accordance with Article 265 that the goods declared have
not left Malta.
3. In so far as the re-export of the goods entails the lodging of a declaration,
(2) above shall apply  mutatis mutandis .
4. Where Maltese goods have been placed under the customs warehousing
procedure within the meaning of Article 98(1)( b ) of the Code, invalidation of the
declaration of entry for that procedure may be requested and effected provided that
the measures provided for in the relevant legislation in the event of failure to comply
with the treatment or use prescribed have been taken.
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If, on the expiry of the period laid down for the goods to remain under the
customs warehousing procedure, no application has been made for their assignment
to a treatment or use provided for in the relevant legislation, the customs authorities
shall take the measures provided for in that legislation.
Article 117
Where the customs authorities sell Maltese goods in accordance with point
( b ) of Article 75 of the Code, this shall be done in accordance with the procedures in
force.
F. SIMPLIFIED PROCEDURES
CHAPTER 1
General provisions
Article 118
1. The procedure for incomplete declarations shall allow the customs
authorities to accept, in a duly justified case, a declaration which does not contain all
the particulars required, or which is not accompanied by all documents necessary for
the customs procedure in question.
2. The simplified declaration procedure shall enable goods to be entered for the
customs procedure in question on presentation of a simplified declaration with
subsequent presentation of a supplementary declaration which may be of a general,
periodic or recapitulative nature, as appropriate.
3. The local clearance procedure shall enable the entry of goods for the
customs procedure in question to be carried out at the premises of the person
concerned or at other places designated or approved by the customs authorities.
Article 119
Where a simplified procedure is applied using data-processing systems to
produce customs declarations or using a data-processing technique, the provisions
referred to in Articles 65(2) and (3), 87, 88 and 89 shall apply  mutatis mutandis .
CHAPTER 2
Declarations for release for free circulation
Section1
Incomplete declarations
Article 120
Declarations for release for free circulation which the customs authorities
may accept, at the declarant’s request, without their containing certain of the
particulars referred to in Annex 37 shall contain at least the particulars referred to in
Box 1 (first and second subdivisions), 14, 21, 31, 37, 40 and 54 of the Single
Administrative Document and:
- a description of the goods in terms that are sufficiently precise to enable
the customs authorities to determine immediately and unambiguously
the Maltese Customs Tariff heading or subheading concerned,
- where the goods are liable to ad valorem duties, their value for customs
purposes, or, where it appears that the declarant is not in a position to
declare this value, a provisional indication of value which is considered
acceptable by the customs authorities, due account being taken in
particular of the information available to the declarant,
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- any further particulars considered necessary by the customs authorities
in order to identify the goods, implement the provisions governing their
release for free circulation and determine the amount of any security
required before the goods may be released.
Article 121
1. Declarations for release for free circulation which the customs authorities
may accept at the declarant’s request without their being accompanied by certain of
the necessary supporting documents shall be accompanied at least by those
documents which must be produced before the goods declared can be released for
free circulation.
2. By way of derogation from paragraph 1, a declaration not accompanied by
one or more of the documents required before the goods can be released for free
circulation may be accepted once it is established to the satisfaction of the customs
authorities that:
( a ) the document concerned exists and is valid;
( b ) it could not be annexed to the declaration for reasons beyond the
declarant’s control;
( c ) any delay in accepting the declaration would prevent the release of the
goods for free circulation or make them liable to a higher rate of duty.
Data relating to missing documents shall in all cases be indicated in the
declaration.
Article 122
1. The period allowed by the customs authorities to the declarant for the
communication of particulars or production of documents missing at the time when
the declaration was accepted may not exceed one month from the date of such
acceptance.
In the case of a document required for the application of a reduced or zero
rate of import duty, where the customs authorities have good reason to believe that
the goods covered by the incomplete declaration may qualify for such reduced or
zero rate of duty, a further period may, at the declarant’s request, be allowed for the
production of the document in question. Such additional period may not exceed three
months.
Where the missing particulars to be communicated or documents to be
supplied concern customs value, the customs authorities may, where this proves
absolutely necessary, set a longer time limit or extend the period previously set. The
total period allowed shall take account of the prescribed periods in force.
2. Where a reduced or zero rate of import duty is applicable to goods released
for free circulation within tariff quotas or, provided that the levying of normal
import duties is not re-introduced, within tariff ceilings or other preferential tariff
measures, the benefit of the tariff quota or preferential tariff measure shall only be
granted after presentation to the customs authorities of the document on which the
granting of the reduced or zero rate is conditional. The document must in any case be
presented:
- before the tariff quota has been exhausted, or
- in other cases, before the date on which a national measure re-
introduces the levying of normal import duties.
3. Subject to paragraphs 1 and 2, the document on whose presentation the
granting of the reduced or zero rate of import duty is conditional may be produced
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after the expiry date of the period for which the reduced or zero rate was set,
provided the declaration in respect of the goods in question was accepted before that
date.
Article 123
1. The customs authorities’ acceptance of an incomplete declaration shall not
prevent or delay the release of the goods thus declared, unless other grounds exist for
so doing. Without prejudice to the provisions of Article 113, release shall take place
in accordance with the conditions laid down in paragraphs 2 to 5 below.
2. Where the late production of particulars or of a supporting document
missing at the time when a declaration is accepted cannot affect the amount of duties
to which the goods covered by the said declaration are liable, the customs authorities
shall immediately enter in the accounts the sum payable, calculated in the usual
manner.
3. Where, pursuant to Article 120, a declaration contains a provisional
indication of value, the customs authorities shall:
- enter immediately in the accounts the amount of duties determined on
the basis of this indication,
- require, if necessary, the lodging of a security adequate to cover the
difference between that amount and the amount to which the goods may
ultimately be liable.
4. Where, in circumstances other than those referred to in paragraph 3, the late
production of particulars or of a supporting document missing at the time when a
declaration is accepted may affect the amount of duties to which the goods covered
by the said declaration are liable:
( a ) if late production of any missing particulars or document may lead to
the application of duty at a reduced rate, the customs authorities shall:
- immediately enter in the accounts the import duties payable at the
reduced rate,
- require the lodging of a security covering the difference between
that sum and the sum which would be payable were the import
duties on the goods in question calculated at the normal rate;
( b ) if the late production of any missing particulars or document may lead
to admission of the goods with total relief from duties, the customs
authorities shall require the lodging of a security covering the amount
which would be payable were the duties charged at the normal rate.
5. Without prejudice to any subsequent changes which may arise, particularly
as a result of the final determination of the customs value, the declarant shall have
the option, instead of lodging a security, of requesting the immediate entry in the
accounts:
-  here the second indent of paragraph 3 or the second indent of paragraph
4( a ) applies, of the amount of duties to which the goods may ultimately
be liable, or
- where paragraph 4( b ) applies, of the amount of duties calculated at the
normal rate.
Article 124
If, at the expiry of the period referred to in Article 122, the declarant has not
supplied the details necessary for the final determination of the customs value of the
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goods, or has failed to provide the missing particulars or documents, the customs
authorities shall immediately enter in the accounts as duties to which the goods in
question are subject the amount of the security provided in accordance with the
provisions of the second indent of Article 123 (3), the second indent of Article
123(4)( a ) or Article 123(4)( b ).
Article 125
An incomplete declaration accepted under the conditions set out in Articles
120 to 123 may be either completed by the declarant or, by agreement with the
customs authorities, replaced by another declaration which complies with the
conditions laid down in Article 62 of the Code.
In both cases, the operative date for the fixing of any duties and the
application of other provisions governing the release of goods for free circulation
shall be the date of acceptance of the incomplete declaration.
Section 2
Simplified declaration procedure
Article 126
1. The declarant shall, upon written request containing all the necessary
information, be authorized in accordance with the conditions and in the manner laid
down in Articles 127 and 128, to make the declaration for release for free circulation
in a simplified form when goods are presented to customs.
2. Such simplified declaration may be in the form
- either of an incomplete declaration on a Single Administrative
Document, or
- of an administrative or commercial document, accompanied by a
request for release for free circulation.
It shall contain at least the particulars necessary for identification of the
goods.
3. Where circumstances permit, the customs authorities may allow the request
for release for free circulation referred to in the second indent of paragraph 2 to be
replaced by a general request in respect of release operations to take place over a
given period. A reference to the authorization granted in response to such general
request shall be entered on the commercial or administrative document presented
pursuant to paragraph 1.
4. The simplified declaration shall be accompanied by all documents the
production of which may be required to secure the release of the goods for free
circulation. Article 121(2) shall apply.
5. This Article shall be without prejudice to Article 145.
Article 127
1. The authorization referred to in Article 126 shall be granted to the declarant
on condition that it is possible to guarantee an effective check on compliance with
import prohibitions or restrictions or other provisions governing release for free
circulation.
2. Such authorization shall in principle be refused where the person who has
made the request:
- has committed a serious infringement or repeated infringements of
customs rules,
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- declares goods for release for free circulation only occasionally.
It may be refused where the person in question is acting on behalf of another
person who declares goods for release for free circulation only occasionally.
3. Without prejudice to Article 9 of the Code, the authorization may be
revoked where the cases referred to in paragraph 2 arise.
Article 128
1. The authorization referred to in Article 126 shall:
- designate the customs office(s) competent to accept simplified
declarations,
- specify the form and content of the simplified declarations,
- specify the goods to which it applies and the particulars which must
appear on the simplified declaration for the purposes of identifying the
goods,
- make reference to the security to be provided by the person concerned
to cover any customs debt which may arise.
It shall also specify the form and content of the supplementary declarations,
and shall set the time limits within which they must be lodged with the customs
authority designated for this purpose.
2. The customs authorities may waive the presentation of the supplementary
declaration where the simplified declaration concerns goods the value of which is
below the statistical threshold laid down by national provisions in force and the
simplified declaration already contains all the information needed for release for free
circulation.
Section 3
Local clearance procedure
Article 129
Authorization to use the local clearance procedure shall be granted in
accordance with the conditions and in the manner laid down in Articles 130 to 132 to
any person wishing to have goods released for free circulation at his premises or at
the other places referred to in Article 118 and who submits to the customs authorities
a written request to this end containing all the particulars necessary for the grant of
the authorization:
- in respect of goods previously placed under a customs procedure with
economic impact, without prejudice to Article 145,
- in respect of goods which are brought into Malta with an exemption
from the requirement that they be presented to customs, pursuant to
Article 41( b ) of the Code.
Article 130
1. The authorization referred to in Article 129 shall be granted provided that:
- the applicant’s records enable the customs authorities to carry out
effective checks, in particular retrospective checks,
- it is possible to guarantee an effective check on compliance with import
prohibitions or restrictions or any other provisions governing release for
free circulation.
2. Authorization shall in principle be refused where the applicant:
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- has committed a serious infringement or repeated infringements of
customs rules,
- declares goods for release for free circulation only occasionally.
Article 131
1. Without prejudice to Article 9 of the Code, the customs authorities may
refrain from revoking the authorization when:
- the holder fulfils his obligations within any time limit set by them, or
- the failure to fulfil an obligation is without any real consequence for the
correct operation of the procedure.
2. An authorization shall in principle be revoked where the case referred to in
the first indent of Article 130(2) arises.
3. An authorization may be revoked where the case referred to in the second
indent of Article 130(2) arises.
Article 132
1. To enable the customs authorities to satisfy themselves as to the proper
conduct of operations, the holder of the authorization referred to in Article 129 shall:
( a ) in the cases referred to in the first indent of Article 129:
- duly notify the customs authorities, in the form and the manner
specified by them, of his desire to have the goods released for free
circulation, for the purpose of obtaining release of the goods, and
- enter the goods in his records.
( b ) in the cases referred to in the second indent of Article 129, upon arrival
of the goods at the place designated for that purpose:
- enter the goods in his records;
( c ) make available to the customs authorities, from the time of the entry in
the records referred to in points ( a ) and ( b ), all documents, the
production of which is required for the application of the provisions
governing release for free circulation.
2. On condition that checks on the proper conduct of operations are not thereby
affected, the customs authorities may:
( a ) permit the notification referred to in points ( a ) of paragraph 1 to be
effected as soon as the arrival of the goods becomes imminent;
( b ) in certain special circumstances, where the nature of the goods in
question and the rapid turnover so warrant, exempt the holder of the
authorization from the requirement to notify the competent customs
office of each arrival of goods, provided that he supplies the said office
with all the information it considers necessary to enable it to exercise its
right to examine the goods should the need arise.
In this case, entry of the goods in the records of the person concerned shall
be equivalent to release.
3. The entry in the records referred to in points ( a ) and ( b ) of paragraph 1 may
be replaced by any other formality offering similar guarantees stipulated by the
customs authorities. The entry shall indicate the date on which it is made and the
particulars necessary for identification of the goods.
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Article 133
The authorization referred to in Article 129 shall lay down the specific rules
for the operation of the procedure and in particular shall stipulate:
- the goods to which it applies,
- the form of the obligations referred to in Article 132 and the reference
to the guarantee to be provided by the person concerned,
- the time of release of the goods,
- the time limit within which the supplementary declaration must be
lodged with the competent customs office designated for that purpose,
- the conditions under which goods are to be covered by general, periodic
or recapitulative declarations, as appropriate.
CHAPTER 3
Declarations for a customs procedure with economic impact
Section 1
Entry for a customs procedure with economic impact
Subsection 1
Entry for the customs warehousing procedure
A. Incomplete declarations
Article 134
1. Declarations for the customs warehousing procedure which the customs
office of entry may accept at the declarant’s request without their containing some of
the particulars referred to in Annex 37 shall contain at least the par-ticulars
necessary for identification of the goods to which the declaration relates, including
their quantity.
2. Articles 121, 122 and 125 shall apply  mutatis mutandis .
B. Simplified declaration procedure
Article 135
1. The declarant shall, upon request, be authorized, in accordance with the
conditions and in the manner laid down in Article 136, to make the declaration of
entry for the procedure in a simplified form when goods are presented to customs.
Such simplified declaration may be in the form:
- either of an incomplete declaration of the type referred to in Article 134,
or
- of an administrative or commercial document, accompanied by a
request for entry for the procedure;
It shall contain the particulars referred to in Article 134(1).
2. Where this procedure is applied in a type D warehouse the simplified
declaration shall also include the nature of the goods concerned, in sufficient detail
to permit their immediate and unambiguous classification, and their customs value.
3. The procedure referred to in paragraph 1 shall not apply to Type F
warehouses.
4. The procedure referred to in the second indent of paragraph 1 shall apply to
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Type B warehouses except that it shall not be possible to use a commercial
document. Where the administrative document does not contain all the particulars
shown in Annex 37 the boxes required for a declaration of entry for the customs
warehousing procedure are as follows: 1, 3, 5, 8, 14, 19, 31, 32, 35, 37, 38, 40, 44,
49 and 54. These should be supplied on the accompanying application.
Article 136
1. The application referred to in Article 134(1) shall be made in writing and
contain all the particulars necessary for the grant of the authorization.
Where circumstances permit, the application referred to in Article 134(1)
may be replaced by a general request in respect of operations to take place over a
given period.
In this case the application shall be made under the conditions laid down in
Articles 173, 174 and 175 and shall be submitted with the application to operate the
customs warehouse or as a modification to the initial authorization, to the customs
authority which issued the authorization for the procedure.
2. The authorization referred to in Article 135(1) shall be granted to the person
concerned provided that the proper conduct of operations is not thereby affected.
3. Such authorization shall in principle be refused where:
- the guarantees necessary for the proper conduct of operations are not
given,
- the person concerned enters goods for the procedure only occasionally,
- the person concerned has committed a serious infringement or repeated
infringements of customs rules.
4. Without prejudice to Article 9 of the Code, the authorization may be
revoked where the cases referred to in paragraph 3 arise.
Article 137
The authorization referred to in Article 135 (1) shall lay down the specific
rules for the operation of the procedure, including:
- the office(s) of entry for the procedure,
- the form and content of the simplified declarations.
A supplementary declaration need not be provided.
C. Local clearance procedure
Article 138
1. Authorization to use the local clearance procedure shall be granted
according to the conditions and in the manner laid down in paragraph 2 and Articles
139 and 140.
2. The local clearance procedure shall not apply to type B and F warehouses.
3. Article 136 shall apply  mutatis mutandis .
Article 139
1. In order to allow the customs authorities to ensure the proper conduct of
operations, the holder of the authorization shall, upon arrival of the goods at the
place designated for that purpose:
( a ) duly notify such arrival to the supervising office in the form and manner
specified by it;
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(b) to make entries in the stock records;
( c ) keep at the disposal of the supervising office all documents concerning
the entry of the goods for the procedure.
The entry in the stock records referred to in ( b ) shall contain at least some of
the particulars used to identify the goods commercially, including their quantity.
2. Article 132(2) shall apply.
Article 140
The authorization referred to in Article 138(1) shall lay down the specific
rules for the operation of the procedure and shall specify in particular:
- the goods to which it applies,
- the form of the obligations referred to in Article 139,
- the time of release of the goods.
A supplementary declaration need not be required.
Subsection 2
Entry for the inward processing, processing under customs control
or temporary importation procedures
A. Incomplete declarations
Article 141
1. Declarations of entry for a customs procedure with economic impact other
than outward processing or customs warehousing which the customs office of entry
for the pro-cedure may accept at the declarant’s request without their containing
some of the particulars referred to in Annex 37 or without their being accompanied
by certain documents referred to in Article 85 must contain at least the particulars
referred to in Boxes 14, 21, 31, 37, 40 and 54 of the single administrative document
and, in Box 44, a reference to the authorization, or a reference to the application
where Article 180(1) applies.
2. Articles 121, 122 and 125 shall apply  mutatis mutandis .
3. In cases of entry for the inward processing procedure, drawback system,
Articles 123 and 124 shall also apply  mutatis mutandis .
B. Simplified declaration and local clearance procedures
Article 142
The provisions of Articles 126 to 133 and of Article 136 shall apply mutatis
mutandis to goods declared for the customs procedures with economic impact
covered by this subsection.
Subsection 3
Goods declared for the outward processing procedure
Article 143
The provisions of Articles 146 to 155 applying to goods declared for export
shall apply mutatis mutandis to goods declared for export under the outward
processing procedure.
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Subsection 4
Common provisions
Article 144
Where two or more authorisations concerning customs procedures with
economic impact are granted to the same person, and one procedure is discharged by
the entry for another procedure using the local clearance procedure, a supplementary
declaration need not be required.
Section 2
Discharge of a customs procedure with economic impact
Article 145
1. In cases of discharge of a customs procedure with economic impact other
than the outward processing and customs warehousing procedures, the simplified
procedures for release for free circulation, export and re-exportation may be applied.
In the case of re-exportation, the provisions of Articles 146 to 155 shall apply
mutatis mutandis .
2. The simplified procedures referred to in Articles 120 to 133 may be applied
to release of goods for free circulation under the outward processing procedure.
3. In cases of discharge of the customs warehousing procedure, the simplified
procedures for release for free circulation, export or re-export may be applied.
However:
( a ) for goods entered for the procedure in a type F warehouse no simplified
procedure may be authorized;
( b ) for goods entered for the procedure in a type B warehouse only
incomplete declarations and the simplified declaration procedure shall
apply;
( c ) issue of an authorization for a type D warehouse shall entail the
automatic application of the local clearance procedure for release for
free circulation.
However, in cases where the person concerned wishes to benefit from
application of items of charge which cannot be checked without a physical
examination of the goods, this procedure may not be applied. In this case, other
procedures involving presentation of the goods to customs may be used.
CHAPTER 4
Export declarations
Article 146
The formalities to be carried out at the customs office of export as provided
for in Article 261 may be simplified in accordance with the provisions of this
Chapter.
The provisions of Articles 262 and 265 shall apply to this Chapter.
Section 1
Incomplete declarations
Article 147
1. Export declarations which the customs office may accept, at the declarant’s
request, without their containing certain of the particulars referred to in Annex 37
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shall contain at least the particulars referred to in boxes 1 (first subdivision), 2, 14,
17, 31, 33, 38, 44 and 54 of the Single Administrative Document and:
- where the goods are liable for export duties all the information required
for the proper application of such duties,
- any further information considered necessary in order to identify the
goods, apply the provisions governing their export or determine the
amount of any security required before the goods may be exported.
2. The customs authorities may allow the declarant not to complete boxes 17
and 33 on condition he declares that export of the goods in question is not subject to
prohibitions or restrictions and the customs authorities have no reason for doubt in
this respect and that the description of the goods allows the Maltese Customs Tariff
classification to be determined immediately and unambiguously.
3. Copy No 3 shall include the following endorsement in box 44:
- Simplified exportation
4. Articles 121 to 125 shall apply  mutatis mutandis  to export declarations.
Section 2
Simplified declaration procedure
Article 148
1. On written request containing all the information required for the
authorization to be granted, the declarant shall be authorized, under the conditions
and in the manner laid down in Articles 127 and 128 applied  mutatis mutandis , to
make the export declaration in a simplified form when goods are presented to
customs.
2. Without prejudice to Article 154, the simplified declaration shall take the
form of the incomplete Single Administrative Document containing at least the
particulars necessary for identification of the goods. Paragraphs 3 and 4 of Article
147 shall apply  mutatis mutandis .
Section 3
Local clearance procedure
Article 149
On written request, authorization to use the local clearance procedure shall
be granted under the conditions and in the manner laid down in Article 150 to any
person, hereinafter referred to as an "approved exporter", wishing to carry out export
procedures at his premises or at the other places designated or approved by the
customs authorities.
Article 150
Articles 130 and 131 shall apply  mutatis mutandis .
Article 151
1. To enable the customs authorities to satisfy themselves as to the proper
conduct of operations, the approved exporter shall, before removal of the goods from
the places referred to in Article 149:
( a ) duly notify the customs authorities of such removal in the form and
manner specified by them for the purpose of obtaining release of the
goods;
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( b ) enter the said goods in his records. Such entry may be replaced by any
other formality offering similar guarantees stipulated by the customs
authorities. The entry shall indicate the date on which it is made and the
particulars necessary for identification of the goods;
( c ) make available to the customs authorities any documents the
presentation of which may be required for application of the provisions
governing export of the goods.
2. In certain particular circumstances justified by the nature of the goods in
question and the rapid turnover of export operations, the customs authorities may
exempt the approved exporter from the requirement to notify the competent customs
office of each removal of goods, provided that he supplies the said office with all the
information it considers necessary to enable it to exercise its right to examine the
goods should the need arise.
In this case, entry of the goods in the records of the approved exporter shall
be equivalent to release.
Article 152
1. To check that the goods have actually left the customs territory of Malta,
Copy No 3 of the Single Administrative Document shall be used as evidence of exit.
The authorization shall stipulate that Copy No 3 of the Single
Administrative Document be authenticated in advance.
2. Prior authentication may be effected in one of the following ways:
( a ) box A may be stamped in advance with the stamp of the competent
customs office, and signed by an official from that office;
( b ) the approved exporter may stamp the declaration using a special stamp
conforming to the model shown in Annex 62.
The imprint of this stamp may be preprinted on the forms where the printing
is entrusted to a printer approved for that purpose.
3. Before the departure of the goods the approved exporter shall:
- carry out the procedures referred to in Article 151;
- indicate on Copy No 3 of the Single Administrative Document the
reference to entry in his records and the date on which this was done.
4. Box 44 of Copy No 3, completed in accordance with paragraph 2, shall
include:
- the number of the authorization and the name of the issuing customs
office;
- the endorsements referred to in Article 147(3).
Article 153
1. The authorization referred to in Article 149 shall lay down the specific rules
for the operation of the procedure and in particular shall stipulate:
- the goods to which it applies,
- the form of the obligations referred to in Article 151,
- the time of release of the goods,
- the content of Copy No 3 and the means by which it is to be validated,
- the procedure for presenting the supplementary declaration and the time
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limit within which it must be lodged.
2. The authorization shall include an undertaking by the approved exporter to
take all necessary measures to ensure the safekeeping of the special stamp or of the
forms bearing the imprint of the stamp of the customs office of export or the imprint
of the special stamp.
Section 4
Provisions common to Sections 2 and 3
Article 154
1. Instead of the Single Administrative Document, the customs authorities may
allow a commercial or administrative document or any other medium to be used.
2. The document or medium referred to in paragraph 1 shall contain at least the
particulars necessary for identification of the goods plus the endorsement referred to
in Article 147(3) and it shall be accompanied by a request for export.
Where circumstances so permit, the customs authorities may allow this
request to be replaced by a global request covering export operations to be carried
out over a given period. A reference to the authorization shall be made on the
document or medium in question.
3. The commercial or administrative document shall be evidence of exit from
Malta in the same way as Copy No 3 of the Single Ad-ministrative Document. 
Article 155
While ensuring compliance with national provisions in force, the customs
authorities may provide for other simplifications.
G. CUSTOMS-APPROVED TREATMENT OR USE
RELEASE FOR FREE CIRCULATION
CHAPTER 1
General provisions
Article 156
1. Where Maltese goods are exported under an ATA carnet in conformity with
Article 266, those goods may be released for free circulation on the basis of the ATA
carnet.
2. In this case, the office where the goods are released for free circulation shall
carry out the following formalities:
( a ) verify the information given in boxes A to G of the reimportation
voucher;
( b ) complete the counterfoil and box H of the reimportation sheet;
( c ) retain the reimportation voucher.
3. Where the formalities discharging a temporary export operation in respect of
Maltese goods are carried out a customs office other than the office where the goods
enter Malta, conveyance of the goods from that office to the office where the said
formalities are carried out shall require no formality.
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CHAPTER 2
Admission of goods with favourable tariff treatment by reason of their end-use
Section 1
Goods other than horses for slaughter
Article 157
1. The admission of goods entered for free circulation with favourable tariff
treatment by reason of their end-use shall be subject to the granting of written
authorization to the person importing the goods or having them imported for free
circulation.
2. The said authorization shall be issued at the written request of the person
concerned by the customs authorities.
Article 158
1. The customs authorities may limit the period of validity of the authorization
referred to in Article 157.
2. Where an authorization is revoked the holder shall immediately pay import
duties, established in accordance with Article 208 of the Code, in respect of those
goods which have not already been assigned to the prescribed end-use.
Article 159
The holder of the authorization shall be obliged:
( a ) to assign the goods to the prescribed end-use;
( b ) to keep records enabling the customs authorities to carry out any checks
which they consider necessary to ensure that the goods are actually put
to the prescribed end-use, and to retain such records.
Article 160
1. All the goods shall be assigned to the prescribed end-use within one year of
the date on which the declaration for free circulation was accepted by the customs
authorities.
2. The periods laid down in paragraph 1 may be extended by the customs
authorities if the goods have not been assigned to the prescribed end-use on account
either of unforeseeable circumstances or  force majeure  or of exigencies inherent in
the working or processing of the goods.
Article 161
1. Goods shall be considered to have been assigned to the end-use in question:
1. in the case of goods which can be used only once, when all the goods
have been assigned to the prescribed end-use in accordance with the
time limits laid down;
2. in the case of goods which may be put to repeated use, two years after
they are first assigned to the prescribed use; the date of such first
assignment shall be entered in the records referred to in Article 159( b );
however:
( a ) materials used by airlines for the maintenance and repair of their
aircraft either under the terms of exchange agreements or for their
own needs shall be considered to have been assigned to that end-
use at the time of their first assignment to the prescribed use;
( b ) vehicle parts for assembly shall be considered to have been
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assigned to that end-use when the vehicles are transferred to other
persons;
( c ) goods intended for certain classes of aircraft for the purposes of
their construction, maintenance, conversion or equipping shall be
considered to have been assigned to that end-use when the aircraft
is transferred to a person other than the holder of the
authorization or again made available to its owner, inter alia fol-
lowing maintenance, repair or conversion;
( d ) goods intended for certain classes of vessel or for drilling or
production platforms for the purposes of their construction,
repair, maintenance, conversion, fitting or equipping shall be
considered to have been assigned to that end-use when the vessel
or drilling platform is transferred to a person other than the holder
of the authorization or again made available to its owner, inter
alia after maintenance, repair or conversion;
( e ) goods supplied directly on board for the purposes of equipping
shall be considered to have been put to the end-use at the time of
such supply;
( f ) civil aircraft shall be considered to have been put to the end-use
when they are registered in the public records prescribed for that
purpose.
2. Waste and scrap which result from the working or processing of the goods
and losses due to natural wastage shall be considered as goods having been assigned
to the end-use.
Article 162
In cases of necessity duly substantiated by the holder of the authorization,
the customs authorities may allow the goods referred to in this Section to be stored
with goods of the same type and quality having the same technical and physical
characteristics.
Where goods are stored in this way this Section shall apply to a quantity of
goods equivalent to that released for free circulation under this Section.
Article 163
1. Where goods are transferred within Malta, the transferee must hold an
authorization issued in accordance with Article 157.
2. By way of derogation from Article 160, all the goods must have been
assigned to the prescribed end-use within a year of the date of transfer; however, this
period may be extended as provided for in Article 160(2).
Article 164
All transfers within Malta shall be notified to the customs authorities. The
form of the notification, the period of time in which it must be made and any other
requirements shall be determined by the said authorities. The notification shall state
clearly the date of the transfer of the goods.
With effect from this date the transferee shall assume the obligations arising
under this Section in respect of the transferred goods.
Article 165
1. The customs authorities shall not approve the use of the goods otherwise
than as provided for by the favourable tariff treatment referred to in Article 157
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unless the holder of the authorization can establish to their satisfaction that it has
been impossible for reasons relating to his circumstances or to the goods themselves
for the goods to be put to the prescribed end-use.
2. The approval referred to in the preceding paragraph shall be conditional on
the holder of the authorization paying the amount of import duties established in
accordance with Article 208 of the Code.
Article 166
1. The customs authorities shall not approve the export of the goods or the
destruction of the goods under customs supervision unless the holder of the
authorization can establish to their satisfaction that it has been impossible for
reasons relating to his circumstances or to the goods themselves for the goods to be
put to the prescribed end-use.
Where export of the goods is approved, the goods shall be considered as
non-Maltese goods from the time of acceptance of the export declaration.
Article 167
Where the import duty applicable under the end-use arrangements to goods
for a specific end-use is not lower than that which would otherwise be applicable to
the goods, the said goods shall be classified in the Maltese Customs Tariff code
referring to the end-use and this Section shall not apply.
Section 2
Horses for slaughter
Article 168
1. The release for free circulation of horses intended for slaughter falling
within the Maltese Customs Tariff code 0101 90 11 00 shall be subject to the
following conditions:
( a ) provision of a security covering the customs debt liable to be incurred,
in accordance with Article 208 of the Code; and
( b ) identification of each horse, at the time of release for free circulation to
the satisfaction of the customs office, by a clearly legible mark resulting
from the removal of hair, by means of scissors or otherwise, from the
left shoulder, comprising the mark X to indicate that the horse is
intended for slaughter and a number to enable the horse to be identified
from the time of release for free circulation to the time of slaughter.
2. The details of the marking shall be shown in the declaration for release of
the horses for free circulation. A copy of the declaration shall accompany the horses
and shall reach the authority referred to in Article 171(1).
3. The declarant’s obligations are those referred to in Article 159.
Article 169
1. After being released for free circulation, horses shall be taken direct, by
means of transport duly sealed by the customs office (without prejudice to any
national provisions concerning the breaking and replacement of seals in cases of
emergency), to a slaughterhouse recognized by the customs authorities, to be
slaughtered.
2. On arrival at the slaughterhouse, the vehicle shall be unsealed and the horses
unloaded in the presence of the competent authority.
3. Paragraphs 1 and 2 shall not apply when the customs office where release
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was granted is in the slaughterhouse, if the horses are immediately taken into the
charge of the authority referred to in Article 171(1).
Moreover, when the customs office where release was granted is in the
immediate vicinity of the slaughterhouse, the customs authorities, instead of using
seals, may take appropriate supervisory measures to ensure that the horses are
transferred directly to the slaughterhouse and are taken into the charge of the
authority referred to in Article 171(1).
Article 170
If a horse cannot be identified on arrival at the slaughter-house, or if Article
169 has not been complied with, the competent authority shall immediately inform
the competent customs office, which shall take the necessary measures.
Article 171
1. Proof that the horses have been slaughtered shall be supplied in the form
either of a certificate issued by the authority empowered to do so or of an
endorsement added by that authority to the copy of the declaration referred to in
Article 168(2), establishing that the slaughtered animals are those referred to in the
declaration for free circulation.
2. Within 30 days of the date of acceptance of the declaration for free
circulation, proof of slaughter must reach the customs office where the said
declaration was presented, either directly from the authority referred to in paragraph
1 or via the declarant, in accordance with the decision of the customs authority
concerned.
H. CUSTOMS PROCEDURES WITH ECONOMIC IMPACT
CHAPTER 1
Basic provisions common to more than one of the arrangements
Section 1
Definitions
Article 172
For the purposes of this Title:
( a ) arrangements means: a customs procedure with economic impact;
( b ) authorisation means: permission by the customs authorities to use
arrangements;
( c ) holder means: the holder of an authorisation;
( d ) supervising office means: the customs office indicated in the
authorisation as empowered to supervise the arrangements;
( e ) office of entry means: the customs office or offices indicated in the
authorisation as empowered to accept declarations entering goods for
the arrangements;
( f ) office of discharge means: the customs office or offices indicated in the
authorisation as empowered to accept declarations assigning goods,
following entry for the arrangements, to a new permitted customs-
approved treatment or use, or, in the case of outward processing, the
declaration for free circulation;
( g ) accounts means: the holder’s commercial, tax or other accounting
material, or such data held on their behalf;
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( h ) records means: the data containing all the necessary information and
technical details on whatever medium, enabling the customs authorities
to supervise and control the arrangements, in particular as regards the
flow and changing status of the goods; in the customs warehousing
arrangements records are called stock records;
( i ) main compensating products means: compensating products for the
production of which the arrangements were authorised;
( j ) secondary compensating products means: compensating products which
are a necessary by-product of the processing operation other than the
main compensating products specified in the authorisation;
( k ) period for discharge means: the time by which the products or goods
must have been assigned a new permitted customs-approved treatment
or use including, as the case may be, in order to claim repayment of
import duties after inward processing (drawback system), or in order to
obtain relief from import duties upon release for free circulation after
outward processing.
Section 2
The application for authorisation
Article 173
1. The application for authorisation shall be made in writing using the model
set out in Annex 67.
2. The customs authorities may permit renewal or modification of an
authorisation to be applied for by simple written request. 
3. In the following cases, the application for authorisation may be made by
means of a customs declaration in writing or by means of a data processing
technique using the normal procedure:
( a ) for inward processing where in accordance with Article 208 the
economic conditions are deemed to be fulfilled, with the exception of
applications involving equivalent goods;
( b ) for processing under customs control: where in accordance with the first
sub-paragraph of Article 221, the economic conditions are deemed to be
fulfilled;
( c ) for temporary importation, including use of an ATA or CPD carnet;
( d ) for outward processing: where the processing operations concern
repairs, including the standard exchange system without prior
importation, and, after outward processing, in the following cases:
(i) for release for free circulation after outward processing using the
standard exchange system with prior importation;
(ii) for release for free circulation after outward processing using the
standard exchange system without prior importation, where the
existing authorisation does not cover such a system and the
customs authorities permit its modification;
(iii) for release for free circulation after outward processing if the
processing operation concerns goods of a non-commercial nature.
The application for authorisation may be made by means of an oral customs
declaration for temporary importation in accordance with Article 94, subject to the
presentation of a document made out in accordance with Article 175, third
subparagraph.
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The application for authorisation may be made by means of a customs
declaration for temporary importation by any other act in accordance with Article
97(1).
4. Customs authorities may require the application for temporary importation
with total relief from import duties in accordance with Article 251 to be made in
accordance with paragraph 1.
Article 174
The application for an authorisation under Article 173 shall be submitted to
the customs authorities designated for the procedure, without prejudice to Article
248(1) second subparagraph.
Article 175
Where the customs authorities consider any of the information given in the
application inadequate, they may require additional details from the applicant.
In particular, where an application may be made by making a customs
declaration, the customs authorities shall require, without prejudice to Article 85,
that the application be accompanied by a document made out by the declarant
containing at least the following information, unless such information is deemed
unnecessary or can be entered on the form used for the written declaration:
( a ) name and address of the applicant, the declarant and the operator;
( b ) nature of the processing or use of the goods;
( c ) technical description of the goods and compensating or processed
products and means of identifying them;
( d ) codes of economic conditions in accordance with Annex 70;
( e ) estimated rate of yield or method by which that rate is to be determined;
( f ) estimated period for discharge;
( g ) proposed office of discharge;
( h ) place of processing or use;
( i ) proposed transfer formalities;
( j ) in the case of oral customs declaration, the value and quantity of the
goods.
Where the document referred to in the second paragraph is presented with an
oral customs declaration for Temporarv Importation, it shall be made out in
duplicate and one copy shall be endorsed by the customs authorities and given to the
declarant.
Article 176
1. Except where the economic conditions are deemed to be fulfilled pursuant to
Chapters 3, 4 or 6, the authorisation shall not be granted without examination of the
economic conditions by the customs authorities.
2. For the inward processing arrangements (Chapter 3), the examination shall
establish the economic unviability of using local sources taking into account in
particular of the following criteria, the details of which are laid down in Part B of
Annex 70:
( a ) unavailability of Maltese-produced goods sharing the same quality and
technical characteristics as the goods intended to be imported for the
processing operations envisaged;
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( b ) differences in price between Maltese-produced goods and those
intended to be imported;
( c ) contractual obligations.
3. For the processing under customs control arrangements (Chapter 4), the
examination shall establish whether the use of non-Maltese sources enables
processing activities to be created or maintained in Malta.
4. For the outward processing arrangements (Chapter 6), the examination shall
establish whether:
( a ) carrying out processing outside Malta is likely to cause serious
disadvantage for Maltese processors; or
( b ) carrying out processing in Malta is economically unviable or is not
feasible for technical reasons or due to contractual obligations.
Section 3
The decision on authorisation
Article 177
The customs authorities shall grant the authorisation as follows:
( a ) for an application under Article 173(1), using the model set out in
Annex 67;
( b ) for an application under Article 173(3), by acceptance of the customs
declaration;
( c ) for an application for renewal or modification, by any appropriate act.
Article 178
The applicant shall be informed of the decision to issue an authorisation, or
the reasons why the application was rejected, within 30 days or 60 days in the case
of the customs warehousing arrangements, of the date the application was lodged or
the date any requested outstanding or additional information is received by the
customs authorities.
Article 179
1. Without prejudice to Article 180, an authorisation shall take effect on the
date of issue or at any later date given in the authorisation. In the case of a private
warehouse, the customs authorities may exceptionally communicate their agreement
to use the arrangements prior to the actual issuing of the authorisation.
2. No limit on the period of validity shall be fixed for authorisations for the
customs warehousing arrangements.
3. For inward processing, processing under customs control and outward
processing, the period of validity shall not exceed three years from the date the
authorisation takes effect, except where there are duly justified good reasons.
Article 180
1. Except for the customs warehousing arrangements, the customs authorities
may issue a retroactive authorisation.
Without prejudice to paragraphs 2 and 3, a retroactive authorisation shall
take effect at the earliest on the date on which the application was submitted.
2. If an application concerns renewal of an authorisation for the same kind of
operation and goods, an authorisation may be granted with retroactive effect from
the date the original authorisation expired.
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3. In exceptional circumstances, the retroactive effect of an authorisation may
be extended further, but not more than one year before the date the application was
submitted, provided a proven economic need exists and:
( a ) the application is not related to attempted deception or to obvious
negligence;
( b ) the period of validity which would have been granted under Article 179
is not exceeded;
( c ) the applicant’s accounts confirm that all the requirements of the
arrangements can be deemed to be met and, where appropriate, the
goods can be identified for the period involved, and such accounts allow
the arrangements to be controlled; and
( d ) all the formalities necessary to regularise the situation of the goods can
be carried out, including, where necessary, the invalidation of the
declaration.
Section 4
Other provisions concerning the operation of the arrangements
Subsection 1
General provisions
Article 181
1. Commercial policy measures provided for in national legislation shall be
applicable on entry for the arrangements of non-Maltese goods only to the extent
that they refer to the entry of goods into Malta.
2. Where compensating products obtained under the inward processing
arrangements are released for free circulation, the commercial policy measures to be
applied shall be those applicable to the release for free circulation of the import
goods.
3. Where processed products, obtained under the arrangements for processing
under customs control, are released for free circulation, the commercial policy
measures applicable to those products shall be applied only where the import goods
are subject to such measures.
4. Where national legislation provide for commercial policy measures on
release for free circulation, such measures shall not apply to compensating products
released for free circulation following outward processing:
- that have retained Maltese origin within the meaning of Articles 23 and
24 of the Code;
- involving repair, including the standard exchange system;
- following successive processing operations in accordance with Article
123 of the Code.
Article 182
Without prejudice to Article 161(4) of the Code, the supervising office may
allow the customs declaration to be presented at a customs office other than those
specified in the authorisation. The supervising office shall determine how it shall be
informed.
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Subsection 2
Transfers
Article 183
The authorisation shall specify whether and under which conditions the
movement of goods or products placed under suspensive arrangements between
different places or to the premises of another holder may take place without
discharge of the arrangements (transfer), subject, in cases other than temporary
importation, to the keeping of records.
Transfer shall not be possible where the place of departure or arrival of the
goods is a type B warehouse.
Article 184
1. Transfer between different places designated in the same authorisation may
be undertaken without any customs formalities.
2. Transfer from the office of entry to the holder’s or operator’s facilities or
place of use may be carried out under cover of the declaration for entry for the
arrangements.
3. Transfer to the office of exit with a view to re-exportation may take place
under cover of the arrangements. In this case, the arrangements shall not be
discharged until the goods or products declared for re-exportation have actually left
Malta.
Article 185
Transfer from one holder to another can only take place where the latter
enters the transferred goods or products for the arrangements under an authorisation
to use the local clearance procedure. Notification to the customs authorities and
entry in the records of the goods or products referred to in Article 132 shall take
place upon their arrival at the premises of the second holder. A supplementary
declaration need not be required. 
In the case of temporary importation, the transfer from one holder to another
may also take place where the latter enters the goods under the arrangements by
means of a customs declaration in writing using the normal procedure.
The method to be used for the exchange of information shall be agreed with
the customs authorities. Upon receipt of the goods or products, the second holder
shall be obliged to enter them for the arrangements.
Article 186
The transfer involving an increased risk as set out in Annex 44c shall be
covered by a guarantee under conditions equivalent to those provided for in the
transit procedure.
Subsection 3
Records
Article 187
The customs authorities shall require the holder, the operator or the
designated warehousekeeper to keep records, except for temporary importation or
where they do not deem it necessary.
The customs authorities may approve existing accounts containing the
relevant particulars as records.
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The supervising office may require an inventory to be made of all or some of
the goods placed under the arrangements.
Article 188
The records referred to in Article 187 and, where they are required, under
Article 249(2) for temporary imports shall contain the following information:
( a ) the information contained in the boxes laid down by Annex 37 for the
declaration of entry for the arrangements;
( b ) particulars of the declarations by means of which the goods are assigned
a customs-approved treatment or use discharging the arrangements;
( c ) the date and reference particulars of other customs documents and any
other documents relating to entry and discharge;
( d ) the nature of the processing operations, types of handling or temporary
use;
( e ) the rate of yield or its method of calculation where appropriate;
( f ) information enabling the goods to be monitored, including their location
and particulars of any transfer;
( g ) commercial or technical descriptions necessary to identify the goods;
( h ) particulars enabling monitoring of the movements under the inward
processing arrangements operating with equivalent goods.
However, the customs authorities may waive the requirement for some of
this information where this does not adversely affect the control or supervision of
the arrangements for the goods to be stored, processed or used.
Subsection 4
Rate of yield and calculation formula
Article 189
1. Where relevant for the arrangements falling under Chapters 3, 4 and 6, a rate
of yield or the method for determining a rate, including average rates, shall be
established in the authorisation or at the time the goods are entered for the
arrangements. Such rate is to be determined, as far as possible, on the basis of
production or technical data or, where these are not available, data relating to
operations of the same type.
2. In particular circumstances the customs authorities may establish the rate of
yield after the goods have been entered for the arrangements, but not later than when
they are assigned a new customs-approved treatment or use.
Article 190
1. The proportion of import/temporary export goods incorporated in the
compensating products shall be calculated in order:
- to determine the import duties to be charged;
- to determine the amount to be deducted when a customs debt is
incurred; or
- to apply commercial policy measures.
These calculations shall be made in accordance with the quantitative scale
method, or the value scale method as appropriate, or any other method giving similar
results.
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For the purposes of the calculations, compensating products shall include
processed products or intermediate products.
2. The quantitative scale method shall be applicable where:
( a ) only one kind of compensating product is derived from the processing
operations; in this case the quantity of import/temporary export goods
deemed to be present in the quantity of compensating products for
which a customs debt is incurred shall be proportional to the latter
category of products as a percentage of the total quantity of
compensating products;
( b ) several kinds of compensating product are derived from the processing
operations and all elements of the import/temporary export goods are
found in each of those compensating products; in this case the quantity
of import/temporary export goods deemed to be present in the quantity
of a given compensating product for which a customs debt is incurred
shall be proportional to:
(i) the ratio between this specific kind of compensating product,
irrespective of whether a customs debt is incurred, and the total
quantity of all compensating products, and
(ii) the ratio between the quantity of compensating products for which
a customs debt is incurred and the total quantity of compensating
products of the same kind.
In deciding whether the conditions for applying the methods described in ( a )
or ( b ) are fulfilled, losses shall not be taken into account. Without prejudice to
Article 288, losses means the proportion of import/temporary export goods
destroyed and lost during the processing operation, in particular by evaporation,
desiccation, venting as gas or leaching. In outward processing secondary
compensating products that constitute waste, scrap, residues, offcuts and remainders
shall be treated as losses.
3. The value scale method shall be applied where the quantitative scale method
is not applicable.
The quantity of import/temporary export goods deemed to be present in the
quantity of a given compensating product incurring a customs debt shall be
proportional to:
( a ) the value of this specific kind of compensating product, irrespective of
whether a customs debt is incurred, as a percentage of the total value of
all the compensating products; and
( b ) the value of the compensating products for which a customs debt is
incurred, as a percentage of the total value of compensating products of
that kind.
The value of each of the different compensating products to be used for
applying the value scale shall be the recent ex-works price in Malta, or the recent
selling price in Malta of identical or similar products, provided that these have not
been influenced by the relationship between buyer and seller.
4. Where the value cannot be ascertained pursuant to paragraph 3, it shall be
determined by any reasonable method.
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Subsection 5
Compensatory interest
Article 191
1. Where a customs debt is incurred in respect of compensating products or
import goods under inward processing or temporary importation, compensatory
interest shall be due on the amount of import duties for the period involved.
2. National provisions on the payment of compensatory interest shall apply.
3. Interest shall be applied on a monthly basis, starting on the first day of the
month following the month in which the import goods for which a customs debt is
incurred were first entered for the arrangements. The period shall close on the last
day of the month in which the customs debt is incurred.
Where inward processing (drawback system) is concerned and release for
free circulation is requested under Article 128(4) of the Code, the period starts from
the first day of the month following the month in which the import duties were
repaid or remitted.
4. Paragraphs 1, 2 and 3 shall not apply to the following cases:
( a ) where the period to be taken into account is less than one month;
( b ) where the amount of compensatory interest applicable does not exceed
Lm 8 per customs debt incurred;
( c ) where a customs debt is incurred in order to allow the application of
preferential tariff treatment under an agreement between Malta and
another country on imports into that country;
( d ) where waste and scrap resulting from destruction is released for free
circulation;
( e ) where a customs debt is incurred as a result of an application for release
for free circulation under Article 128(4) of the Code, as long as the
import duties payable on the products in question have not yet actually
been repaid or remitted;
( f ) where the holder requests release for free circulation and submits proof
that particular circumstances not arising from any negligence or
deception on his part make it impossible or uneconomic to carry out the
re-export operation under the conditions he had anticipated and duly
substantiated when applying for the authorisation;
( g ) where a customs debt is incurred and to the extent a security is provided
by a cash deposit in relation to this debt;
( h ) where a customs debt is incurred in accordance with Article 201(1)( b )
of the Code or is due to the release for free circulation of goods which
were entered for the temporary importation arrangements under Articles
225 to 230, 232, 234, 236, 241( b ) and 244 of these Regulations.
5. In the case of inward processing operations in which the number of import
goods and/or compensating products makes it uneconomic to apply the provisions of
paragraphs 2 and 3, the customs authorities, at the request of the person concerned,
may allow simplified methods giving similar results to be used for the calculation of
compensatory interest.
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Subsection 6
Discharge
Article 192
1. Where import or temporary export goods have been entered under two or
more declarations for the arrangements by virtue of one authorisation:
- in the case of a suspensive arrangement, the assignment of goods or
products to a new customs-approved treatment or use shall be
considered to discharge the arrangements for the import goods in
question entered under the earliest of the declarations;
- in the case of inward processing (drawback system) or outward
processing, the compensating products shall be considered to have been
obtained from the import or temporary export goods in question
respectively, entered under the earliest of the declarations.
Application of the first subparagraph shall not lead to unjustified import
duty advantages.
The holder may request the discharge to be made in relation to the specific
import or temporary export goods.
2. Where the goods under the arrangements are placed together with other
goods and there is total destruction or irretrievable loss, the customs authorities may
accept evidence produced by the holder indicating the actual quantity of goods under
the arrangements which was destroyed or lost. Where it is not possible for the holder
to produce such evidence, the amount of goods which has been destroyed or lost
shall be established by reference to the proportion of goods of that type under the
arrangements at the time when the destruction or loss occurred.
Article 193
1. At the latest upon expiry of the period for discharge, irrespective of whether
aggregation in accordance with Article 118(2), second subparagraph, of the Code is
used or not:
- in the case of inward processing (suspension system) or processing
under customs control, the bill of discharge shall be supplied to the
supervising office within 30 days;
- in the case of inward processing (drawback system), the claim for
repayment or remission of import duties must be lodged with the
supervising office within six months.
Where special circumstances so warrant, the customs authorities may extend
the period even if it has expired.
2. The bill or the claim shall contain the following particulars, unless
otherwise determined by the supervising office:
( a ) reference particulars of the authorisation;
( b ) the quantity of each type of import goods in respect of which discharge,
repayment or remission is claimed;
( c ) the Maltese Customs tariff code of the import goods;
( d ) the rate of import duties to which the import goods are liable and, where
applicable, their customs value;
( e ) the particulars of the declarations entering the import goods under the
arrangements;
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( f ) the type and quantity of the compensating or processed products or the
goods in unaltered state and the customs-approved treatment or use to
which they have been assigned, including particulars of the
corresponding declarations, other customs documents or any other
document relating to discharge and periods for discharge;
( g ) the value of the compensating or processed products if the value scale
method is used for the purpose of discharge;
( h ) the rate of yield;
( i ) the amount of import duties to be paid or to be repaid or remitted and
where applicable any compensatory interest to be paid. Where this
amount refers to the application of Article 215, it shall be specified;
( j ) in the case of processing under customs control, the Maltese Customs
Tariff code of the processed products and elements necessary to
determine the customs value.
3. The supervising office may make out the bill of discharge.
CHAPTER 2
Customs warehousing
Section 1
General provisions
Article 194
1. Where a customs warehouse is public, the following classification shall
apply:
( a ) type A, if the responsibility lies with the warehousekeeper;
( b ) type B, if the responsibility lies with the depositor;
( c ) type F, if the warehouse is operated by the customs authorities.
2. Where a customs warehouse is private and responsibility lies with the
warehousekeeper, who is the same person as the depositor but not necessarily the
owner of the goods, the following classification shall apply:
( a ) type D, where release for free circulation is made by way of the local
clearance procedure and may be granted on the basis of the nature, the
customs value and the quantity of the goods to be taken into account at
the time of their placing under the arrangements;
( b ) type E, where the arrangements apply although the goods need not be
stored in a place approved as a customs warehouse; 
( c ) type C, where neither of the special situations under points ( a ) and ( b )
applies.
3. An authorisation for a type E warehouse may provide for the procedures laid
down for type D to be applied.
Section 2
Additional conditions concerning the granting of the authorisation
Article 195
1. When granting the authorisation the customs authorities shall define the
premises or any other location approved as a customs warehouse of type A, B, C or
D. They may also approve temporary storage facilities as such types of warehouse or
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operate them as a type F warehouse.
2. A location may not be approved as more than one customs warehouse at the
same time.
3. Where goods present a danger or are likely to spoil other goods or require
special facilities for other reasons, authorisations may specify that they may only be
stored in premises specially equipped to receive them.
4. Type A, C, D and E warehouses may be approved as victualling warehouses.
Article 196
1. Authorisations may be granted only if any intended usual forms of handling,
inward processing or processing under customs control of the goods do not
predominate over the storage of the goods.
2. Authorisations shall not be granted if the premises of customs warehouses or
the storage facilities are used for the purpose of retail sale.
An authorisation may, however, be granted, where goods are retailed with
relief from import duties:
( a ) to travellers in traffic to other countries;
( b ) under diplomatic or consular arrangements; 
( c ) to members of international organisations.
3. For the purposes of the second indent of Article 86 of the Code, when
examining whether the administrative costs of customs warehousing arrangements
are disproportionate to the economic needs involved, customs authorities shall take
account,  inter alia , of the type of warehouse and the procedure which may be applied
therein.
Section 3
Stock records
Article 197
1. In warehouses of type A, C, D and E, the person designated to keep the stock
records shall be the warehousekeeper.
2. In warehouses of type F, the operating customs office shall keep the customs
records in place of stock records.
3. In type B warehouses, in place of stock records, the supervising office shall
keep the declarations of entry for the arrangements.
Article 198
1. The stock records shall at all times show the current stock of goods which
are still under the customs warehousing arrangements. At the times laid down by the
customs authorities, the warehousekeeper shall lodge a list of the said stock at the
supervising office.
2. Where Article 112(2) of the Code applies, the customs value of the goods
before carrying out usual forms of handling shall appear in the stock records.
3. Information on the temporary removal of goods and on goods in common
storage in accordance with Article 203(2) shall appear in the stock records.
Article 199
1. Where goods are entered for the type E warehouse arrangements, the entry
in the stock records shall take place when they arrive at the holder’s storage
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facilities.
2. Where the customs warehouse also serves as a temporary storage facility,
the entry in the stock records shall take place at the time the declaration for the
arrangements is accepted.
3. Entry in the stock records relating to discharge of the arrangements shall
take place at the latest when the goods leave the customs warehouse or the holder’s
storage facilities.
Section 4
Other provisions concerning the operation of the arrangements
Article 200
Non-Maltese goods may undergo the usual forms of handling in accordance
with Article 109 of the Code.
Article 201
Goods may be temporarily removed for a period not exceeding three months.
Where circumstances so warrant, this period may be extended.
Article 202
Applications for permission to carry out usual forms of handling or to
remove goods temporarily from the customs warehouse shall be made in writing on a
case by case basis to the supervising office. They must contain all particulars
necessary to apply the arrangements.
Such permission may be granted as part of an authorisation to operate the
warehousing arrangements. In this case the supervising office, in the manner it shall
determine, shall be notified that such handling is to be carried out or the goods are to
be temporarily removed.
Article 203
1. Where Maltese goods are stored on the premises of a customs warehouse or
the storage facilities used for goods under the warehousing arrangements, specific
methods of identifying such goods may be laid down with a view, in particular, to
distinguishing them from goods entered for the customs warehousing arrangements.
2. The customs authorities may permit common storage where it is impossible
to identify at all times the customs status of each type of goods. 
Goods in common storage shall share the same eight-digit code of the
Maltese Customs Tariff, the same commercial quality and the same technical
characteristics.
3. For the purpose of being declared for a customs-approved treatment or use
the goods in common storage, as well as, in particular circumstances, identifiable
goods which fulfill the conditions of the second subparagraph of paragraph 2, may
be deemed to be either Maltese goods or non-Maltese goods.
Application of the first subparagraph shall, however, not result in a given
customs status being assigned to a quantity of goods greater than the quantity
actually having that status which is stored at the customs warehouse or the storage
facilities when the goods declared for a customs-approved treatment or use are
removed.
Article 204
1. Where operations of inward processing or processing under customs control
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are carried out on the premises of customs warehouses or in storage facilities, the
provisions of Article 203 shall apply, mutatis mutandis, to the goods under these
arrangements.
Where, however, these operations concern inward processing without
equivalence or processing under customs control, the provisions of Article 203 on
common storage shall not apply with regard to Maltese goods.
2. Entries in the records shall allow the customs authorities to monitor the
precise situation of all goods or products under the arrangements at any time.
CHAPTER 3
Inward processing
Section 1
General provision
Article 205
For the purposes of this Chapter:
( a ) "Prior exportation" means the system whereby compensating products
obtained from equivalent goods are to be exported before the import
goods are entered for the arrangements using the suspension system;
( b ) "Job processing" means any processing of import goods directly or
indirectly placed at the disposal of the holder which is carried out
according to specifications on behalf of a principal established in
another country, generally against payment of processing costs alone.
Section 2
Additional conditions concerning the granting of the authorisation
Article 206
An authorisation shall be granted only where the applicant has the intention
of re-exporting or exporting main compensating products.
Article 207
An authorisation may also be granted for the goods referred to in the fourth
indent of Article 114(2)(iii) of the Code, with the exception of: 
( a ) fuels and energy sources other than those needed for the testing of
compensating products or for the detection of faults in import goods
needing repair;
( b ) lubricants other than those needed for the testing, adjustment or
withdrawal of compensating products;
( c ) equipment and tools.
Article 208
The economic conditions shall be deemed to be fulfilled except where the
application concerns import goods covered by a list which may be published by the
customs authorities for the purpose of this article.
Article 209
The authorisation shall specify the means and methods of identifying the
import goods in the compensating products and lay down the conditions for the
proper conduct of operations using equivalent goods.
Such methods of identification or conditions may include examination of the
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records.
Section 3
Provisions concerning the operation of arrangements
Article 210
1. The authorisation shall specify whether and under which conditions
equivalent goods referred to in Article 114(2)(v) of the Code and sharing the same
eight-digit code of the Maltese Customs Tariff, the same commercial quality and the
same technical characteristics as the import goods may be used for the processing
operations.
2. Equivalent goods may be allowed to be at a more advanced stage of
manufacture than the import goods where the essential part of the processing with
regard to these equivalent goods is carried out in the undertaking of the holder or in
the undertaking where the operation is being carried out on his behalf, save in
exceptional cases.
Article 211
1. The authorisation shall specify the period for discharge. Where the
circumstances so warrant, this period may be extended even when that originally set
has expired.
2. Where the period for discharge expires on a specific date for all the goods
placed under the arrangements in a given period, the authorisation may provide that
the period for discharge shall be automatically extended for all goods still under the
arrangements on this date. However, the customs authorities may require that such
goods be assigned a new permitted customs-approved treatment or use within the
period which they shall set.
3. Irrespective of whether or not aggregation is used or paragraph 2 is applied,
the period for discharge for the following compensating products or goods in the
unaltered state shall not exceed:
( a ) four months in the case of milk and milk products;
( b ) two months in the case of slaughter without fattening of animals
referred to in Chapter 1 of the Maltese Customs Tariff;
( c ) three months in the case of fattening (including slaughter where
relevant) of animals which fall under the Maltese Customs Tariff codes
0104 and 0105;
( d ) six months in the case of fattening (including slaughter where relevant)
of other animals referred to in Chapter 1 of the Maltese Customs Tariff;
( e ) six months in the case of processing of meat.
Where successive processing operations are carried out or where exceptional
circumstances so warrant, the periods may be extended on request, the total period
not exceeding twelve months.
Article 212
1. In the case of prior exportation the authorisation shall specify the period
within which the non-Maltese goods must be declared for the arrangements, taking
account of the time required for procurement and transport to Malta.
2. The period referred to in paragraph 1 shall not exceed six months.
The period of six months may, however, be extended where the holder
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submits a reasoned request, provided that the total period does not exceed twelve
months. Where the circumstances so warrant the extension may be allowed even
after the original period has expired.
Article 213
For the purposes of discharging the arrangements or the claim for repayment
of import duties, the following shall be regarded as re-exportation or exportation:
( a ) the delivery of compensating products to persons who are eligible for
relief from import duties pursuant to the Vienna Convention of 18 April
1961 on Diplomatic Relations, or to the Vienna Convention of 24 April
1963 on Consular Relations or other consular conventions, or the New
York Convention of 16 December 1969 on Special Missions;
( b ) the delivery of civil aircraft; however, the supervising office shall allow
the arrangements to be discharged once import goods have been used
for the first time for the manufacture, repair, modification or conversion
of civil aircraft or parts thereof, on condition that the records of the
holder are such as to make it possible to verify that the arrangements are
being correctly applied and operated;
( c ) disposal in accordance with the relevant provisions of secondary
compensating products whose destruction under customs supervision is
prohibited on environmental grounds; for these purposes, the holder
shall prove that discharge of the arrangements in accordance with the
normal rules is either impossible or uneconomic.
Section 4
Provisions concerning the operation of the suspension system
Article 214
1. Use of equivalent goods for processing operations in accordance with
Article 115 of the Code shall not be subject to the formalities for entry of goods for
the arrangements.
2. The equivalent goods and compensating products made therefrom shall
become non-Maltese goods and the import goods Maltese goods at the time of
acceptance of the declaration discharging the arrangements.
However, where import goods are put on the market before the arrangements
are discharged, they shall change their status at the time they are put on the market.
In exceptional cases, where the equivalent goods are expected not to be present at
that time, the customs authorities may allow, at the request of the holder, the
equivalent goods to be present at a later time, to be determined by them and within a
reasonable time.
3. In case of prior exportation:
- compensating products shall become non-Maltese goods on acceptance
of the export declaration on condition that the goods to be imported are
entered for the arrangements;
- import goods shall become Maltese goods at the time of their entry for
the arrangements.
Article 215
The authorisation shall specify whether compensating products or goods in
the unaltered state may be released for free circulation without customs declaration,
without prejudice to prohibitive or restrictive measures. In this case they shall be
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considered to have been released for free circulation, if they have not been assigned
a customs-approved treatment or use on expiry of the period for discharge.
For the purposes of the first subparagraph of Article 218(1) of the Code, the
declaration for release for free circulation shall be considered to have been lodged
and accepted and release granted at the time of presentation of the bill of discharge.
The products or goods shall become Maltese goods when they are put on the
market.
Article 216
In case of release for free circulation of compensating products, boxes 15,
16, 34, 41 and 42 of the declaration shall refer to the import goods. Alternatively,
relevant information may also be supplied by any document accompanying the
declaration.
Article 217
Where compensating products are destroyed, they shall be treated as if they
were re-exported.
Article 218
1. Where the compensating products or goods in the unaltered state are entered
for one of the suspensive arrangements or introduced in a free zone of control type I
within the meaning of Article 268 or in a free warehouse or placed in a free zone of
control type II within the meaning of Article 268 enabling the arrangements to be
discharged, the documents or records used for the said customs-approved treatment
or use or any documents replacing them, shall contain the following indication:
- IP/S goods
2. Where import goods entered for the arrangements are subject to specific
commercial policy measures and such measures continue to be applicable at the time
when the goods, either in the unaltered state or in the form of compensating
products, are entered for one of the suspensive arrangements or introduced in a free
zone of control type I within the meaning of Article 268 or in a free warehouse or
placed in a free zone of control type II within the meaning of Article 268, the
indication referred to in paragraph 1 shall be supplemented by one of the following:
- Commercial policy
Section 5
Provision concerning the operation of the drawback system
Article 219
Where goods under the drawback system are assigned a customs-approved
treatment or use referred to in Article 218(1), the indication required for that
provision shall be the following:
- IP/D goods
CHAPTER 4
Processing under customs control
Article 220
1. The arrangements for processing under customs control shall apply for
goods the processing of which leads to products which are subject to a lower amount
of import duties than that applicable to the import goods.
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The arrangements shall also apply for goods which have to undergo
operations to ensure their compliance with technical requirements for their release
for free circulation.
2. Article 211(1) and (2) shall apply  mutatis mutandis .
3. For the purposes of determining the customs value of processed products
declared for free circulation, the declarant may choose any of the methods referred
to in Article 30(2)( a ), ( b ) or ( c ) of the Code or the customs value of the import goods
plus the processing costs.
Article 221
For the types of goods and operations mentioned in Annex A, Part A of the
Code, the economic conditions shall be deemed to be fulfilled.
For other types of goods and operations examination of the economic
conditions shall take place.
CHAPTER 5
Temporary importation
Section 1
General provisions
Article 222
1. Animals, unless of negligible commercial value, born of animals placed
under the arrangements are considered to be non-Maltese goods and placed
themselves under those arrangements.
2. The customs authorities shall ensure that the total period for which the
goods remain under the arrangements for the same purpose and under the
responsibility of the same holder does not exceed 24 months, even where the
arrangements were discharged by entry for another suspensive arrangement and
subsequently entered again for temporary importation.
However, at the holder’s request, they may extend this period for the time
during which the goods are not used, in accordance with the conditions laid down by
them.
3. For the purposes of Article 140(3) of the Code, exceptional circumstances
means any event as a result of which the goods must be used for a further period in
order to fulfil the purpose of the temporary importation operation.
4. Goods placed under the arrangements must remain in the same state.
Repairs and maintenance, including overhaul and adjustments or measures
to preserve the goods or to ensure their compliance with the technical requirements
for their use under the arrangements are admissible.
Article 223
Temporary importation with total relief from import duties (hereinafter:
"total relief from import duties") shall only be granted in accordance with Articles
224 to 246.
Temporary importation with partial relief from import duties shall not be
granted for consumable goods.
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Section 2
Conditions for total relief from import duties
Subsection 1
Means of transport
Article 224
1. For the purposes of this subsection:
( a ) "commercial use" means the use of means of transport for the transport
of persons or of goods for remuneration or in the framework of the
economic activity of an enterprise;
( b ) "private use" means the use other than commercial of a means of
transport;
( c ) "internal traffic" means the carriage of persons or goods picked up or
loaded in Malta for setting down or unloading at a place within Malta.
2. Means of transport include normal spare parts, accessories and equipment
accompanying them.
Article 225
Total relief from import duties shall be granted for pallets.
The arrangements shall also be discharged when pallets of the same type and
substantially the same value are exported or re-exported.
Article 226
1. Total relief from import duties shall be granted for containers where they
have been durably marked in an appropriate and clearly visible place with the
following information:
( a ) the identity of the owner or operator shown by either his full name or an
established identification, symbols such as emblems or flags being
excluded;
( b ) the identification marks and numbers of the container, given by the
owner or operator; its tare weight, including all its permanently fixed
equipment;
( c ) with the exception of containers used for transport by air, the country to
which the container belongs, shown either in full or by means of the
ISO alpha-2 country code provided for in International Standards ISO
3166 or 6346 or by the distinguishing initials used to indicate the
country of registration of motor vehicles in international road traffic.
Where the application for authorisation is made in accordance with the first
subparagraph of Article 173(3)( c ), the containers shall be monitored by a person
represented in Malta being able to communicate at all times their location and
particulars of entry and discharge.
2. Containers may be used in internal traffic before being re-exported.
However, they may be used only once during each stay in Malta, for transporting
goods loaded and intended to be unloaded within Malta, where the containers would
otherwise have to make a journey unloaded within Malta.
3. Under the conditions of the Convention of Geneva of 21 January 1994 on
Customs Treatment of Pool Containers used in International Transport, the customs
authorities shall permit the arrangements to be discharged where containers of the
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same type or the same value are exported or re-exported.
Article 227
1. Total relief from import duties shall be granted for means of road, air and
sea transport where they:
( a ) are registered outside Malta in the name of a person established outside
Malta; however, if the means of transport are not registered, the above
condition may be deemed to be met where they are owned by a person
established outside Malta;
( b ) are used by a person established outside Malta, without prejudice to
Articles 228, 229 and 230; and
( c ) in the case of commercial use are used exclusively for transport which
begins or ends outside Malta; however, they may be used in internal
traffic where the provisions in force in the field of transport, in
particular those concerning admission and operations, so provide.
2. Where the means of transport referred to in paragraph 1 are rehired by a
professional hire service established in Malta to a person established outside Malta,
they must be re-exported within eight days of entry into force of the contract.
Article 228
Persons established in Malta shall benefit from total relief from import
duties where:
( a ) a trailer is coupled to a means of road transport registered in Malta;
( b ) means of transport are used in connection with an emergency situation
and their use does not exceed five days; or
( c ) means of transport are used by a professional hire firm for the purpose
of re-exportation within a period not exceeding five days.
Article 229
1. Natural persons established in Malta shall benefit from total relief from
import duties where they privately use means of transport occasionally, on the
instructions of the registration holder, this holder being in Malta at the time of use.
Such persons shall also benefit from total relief, for the private use of means
of transport hired under a written contract, occasionally:
( a ) to leave Malta; or
( b ) where this is permitted on a general level by the customs administration.
2. The means of transport shall be re-exported or returned to the hire service
established in Malta within eight days of the entry into force of the contract in the
case mentioned in paragraph 1( b ).
The means of transport shall be re-exported within two days of the entry into
force of the contract in the case mentioned under paragraph 1( a ).
Article 230
1. Total relief from import duties shall be granted where means of transport are
to be registered under a temporary series in Malta, with a view to re-exportation in
the name of one of the following persons:
( a ) in the name of a person established outside Malta;
( b ) in the name of a natural person established in Malta where the person
concerned is preparing to transfer normal residence to a place outside
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Malta.
In the case referred to in point ( b ), the means of transport must be exported
within three months of the date of registration.
2. Total relief from import duties shall be granted where means of transport are
used commercially or privately by a natural person established in Malta and
employed by the owner of the means of transport established outside Malta or
otherwise authorised by the owner.
Private use must have been provided for in the contract of employment.
Customs authorities may restrict the temporary importation of means of
transport under this provision in the case of systematic use.
3. Total relief from import duties may in exceptional cases be granted where
means of transport are commercially used for a limited period by persons established
in Malta.
Article 231
Without prejudice to other special provisions, the periods for discharge are
the following:
( a ) for commercially used means of transport: the time required for
carrying out the transport operations;
( b ) for means of road transport privately used:
- by students: the period the student stays in Malta for the sole
purpose of pursuing their studies;
- by persons fulfilling assignments of a specified duration: the
period this person stays in Malta for the sole purpose of fulfilling
their assignment;
- in other cases, including saddle or draught animals and the
vehicles drawn by them: six months;
( c ) for privately used means of air transport: six months;
( d ) for privately used means of sea transport: 18 months.
Subsection 2
Personal effects and goods for sports purposes imported by travellers;
welfare material for seafarers
Article 232
Total relief from import duties shall be granted where personal effects
reasonably required for the journey and goods for sports purposes are imported by a
traveller as defined in Article 101(A)(1).
Article 233
Total relief from import duties shall be granted for welfare materials for
seafarers in the following cases:
( a ) where they are used on a vessel engaged in international maritime
traffic;
( b ) where they are unloaded from such a vessel and temporarily used ashore
by the crew;
( c ) where they are used by the crew of such a vessel in cultural or social
establishments managed by non-profit-making organisations or in
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places of worship where services for seafarers are regularly held.
Subsection 3
Disaster relief material; medical, surgical and laboratory equipment; animals
Article 234
Total relief from import duties shall be granted for disaster relief material
where it is used in connection with measures taken to counter the effects of disasters
or similar situations affecting Malta and intended for state bodies or bodies approved
by the competent authorities.
Article 235
Total relief from import duties shall be granted where medical, surgical and
laboratory equipment is dispatched on loan at the request of a hospital or other
medical institution which has urgent need of such equipment to make up for the
inadequacy of its own facilities and where it is intended for diagnostic or therapeutic
purposes.
Article 235A
Total relief from import duties shall be granted for animals owned by a
person established outside Malta.
Subsection 4
Sound, image or data carrying media, publicity material; professional equipment; 
pedagogic material and scientific equipment
Article 236
Total relief from import duties shall be granted for goods:
( a ) carrying sound, image or data processing information for the purpose of
presentation prior to commercialisation, or free of charge, or for
provision with a sound track, dubbing or copying; or
( b ) exclusively used for publicity purposes.
Article 237
1. Total relief from import duties shall be granted where professional
equipment is:
( a ) owned by a person established outside Malta;
( b ) imported either by a person established outside Malta or by an
employee of the owner, the employee may be established in Malta; and
( c ) used by the importer or under their supervision, except in cases of
audiovisual co-productions.
2. Total relief shall not be granted where equipment is to be used for the
industrial manufacture or packaging of goods or, except in the case of hand tools, for
the exploitation of natural resources, for the construction, repair or maintenance of
buildings or for earth moving and like projects.
Article 238
Total relief from import duties shall be granted where pedagogic material
and scientific equipment are:
( a ) owned by a person established outside Malta;
( b ) imported by public or private scientific, teaching or vocational training
establishments which are essentially non-profit making and exclusively
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used in teaching, vocational training or scientific research under their
responsibility;
( c ) imported in reasonable numbers, having regard to the purpose of the
importation; and
( d ) not used for purely commercial purposes.
Subsection 5
Packings; moulds, dies, blocks, drawings, sketches, measuring, checking and testing 
instruments and other similar articles; special tools and instruments; goods to carry 
out tests or subject to tests; samples; replacement means of production
Article 239
Total relief from import duties shall be granted where packings:
( a ) if imported filled, are intended for re-exportation whether empty or
filled;
( b ) if imported empty, are intended for re-exportation filled.
Packings are not to be used in internal traffic, except with a view to the
export of goods. In the case of packings imported filled, this shall apply only from
the time that they are emptied of their contents.
Article 240
1. Total relief from import duties shall be granted where moulds, dies, blocks,
drawings, sketches, measuring, checking and testing instruments and other similar
articles are:
( a ) owned by a person established outside Malta; and
( b ) used in manufacturing by a person established in Malta and at least 75%
of the production resulting from their use is exported.
2. Total relief from import duties shall be granted for special tools and
instruments where the goods are:
( a ) owned by a person established outside Malta; and
( b ) made available free of charge to a person established in Malta for the
manufacture of goods which are to be exported in their entirety.
Article 241
Total relief from import duties shall be granted for the following goods:
( a ) goods subjected to tests, experiments or demonstrations;
( b ) goods imported, subject to satisfactory acceptance tests in connection
with a sales contract containing the provisions of the satisfactory
acceptance tests and subjected to those tests;
( c ) goods used to carry out tests, experiments or demonstrations without
financial gain.
For the goods referred to in point ( b ), the period for discharge is six months.
Article 242
Total relief from import duties shall be granted where samples are imported
in reasonable quantities and solely used for being shown or demonstrated in Malta.
Article 243
Total relief from import duties shall be granted where replacement means of
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production are temporarily made available to a customer by a supplier or repairer,
pending the delivery or repair of similar goods.
The period for discharge is six months.
Subsection 6
Goods for events or for sale
Article 244
1. Total relief from import duties shall be granted for goods to be exhibited or
used at a public event not purely organised for the commercial sale of the goods, or
obtained at such events from goods placed under the arrangements.
In exceptional cases, the customs authorities may authorise the
arrangements for other events.
2. Total relief from import duties shall be granted for goods for approval where
they cannot be imported as samples and the consignor for his part wishes to sell the
goods and the consignee may decide to purchase them after inspection.
The period for discharge is two months.
3. Total relief from import duties shall be granted for the following:
( a ) works of art, collectors’ items and antiques imported for the purposes of
exhibition, with a view to possible sale;
( b ) goods other than newly manufactured ones imported with a view to their
sale by auction.
Subsection 7
Spare parts, accessories and equipment; other goods
Article 245
Total relief from import duties shall be granted where spare parts,
accessories and equipment are used for repair and maintenance, including overhaul,
adjustments and preservation of goods entered for the arrangements.
Article 246
Total relief from import duties may be granted where goods other than those
listed in Articles 225 to 245 or not complying with the conditions of these Articles,
are imported:
( a ) occasionally and for a period not exceeding three months; or
( b ) in particular situations having no economic effect.
Section 3
Provisions concerning the operation of the arrangements
Article 247
Where personal effects, goods imported for sports purposes or means of
transport are declared orally or by any other act for entry of the arrangements,
customs authorities may require a written declaration when a high amount of import
duties is at stake or a serious risk of non-compliance with obligations of the
arrangements exists.
Article 248
1. Declarations for entry for the arrangements using ATA/CPD carnets shall be
accepted if they are issued in a participating country and endorsed and guaranteed by
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an association forming part of an international guarantee chain.
Unless otherwise provided for by bilateral or multilateral agreements,
"participating country" means a contracting party to the ATA Convention, or to the
Istanbul Convention having accepted the Customs Cooperation Council
recommendations of 25 June 1992 concerning acceptance of the ATA Carnet and the
CPD Carnet for the temporary admission procedure.
2. Paragraph 1 shall apply only if the ATA/CPD carnets:
( a ) relate to goods and uses covered by those Conventions or agreements;
and 
( b ) are certified by the customs authorities in the appropriate section of the
cover page.
The ATA/CPD carnet shall be presented at the office of entry into Malta,
except where this office is unable to check the fulfilment of the conditions for the
procedure.
Article 249
1. Without prejudice to the special guarantee systems for ATA/CPD carnets,
entry for the arrangements by written declaration shall be subject to the provision of
security, except in the cases referred to in Annex 77.
2. In order to facilitate control of the arrangements, the customs authorities
may require records to be kept.
Article 250
1. Where goods placed under the arrangements in accordance with Article 73
are discharged by their entry for free circulation, the amount of the debt shall be
determined on the basis of the elements of assessment appropriate to these goods at
the moment of acceptance of the declaration for free circulation.
Where goods placed under the arrangements in accordance with Article 244
are put on the market, they shall be considered as presented to customs when they
are declared for release for free circulation before the end of the period for
discharge.
2. For the purposes of discharging the arrangements in respect of goods
referred to in Article 244(1), their consumption, destruction or distribution free of
charge to the public at the event shall be considered as re-exportation, provided their
quantity corresponds to the nature of the event, the number of visitors and the extent
of the holder’s participation therein.
The first subparagraph shall not apply to alcoholic beverages, tobacco goods
or fuels.
Article 251
Where the goods placed under the arrangements are entered for one of the
suspensive arrangements or introduced in a free zone of control type I within the
meaning of Article 268 or in a free warehouse or placed in a free zone of control type
II within the meaning of Article 268, enabling temporary importation to be
discharged, the documents other than ATA/CPD carnets or records used for the said
customs-approved treatment or use or any document replacing them shall contain the
following indication:
- TA goods.
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CHAPTER 6
Outward processing
Section 1
Additional conditions concerning the granting of the authorisation
Article 252
1. Except where indications to the contrary exist, the essential interests of
Maltese processors shall be deemed not to be seriously harmed.
2. Where an application for authorisation is made by a person who exports the
temporary export goods without arranging for the processing operations, the customs
authorities shall conduct a prior examination of the conditions set out in Article
147(2) of the Code on the basis of supporting documents.
Article 253
1. The authorisation shall specify the means and methods to establish that the
compensating products have resulted from processing of the temporary export goods
or to verify that the conditions for using the standard exchange system are met.
Such means and methods may include the examination of the records.
2. Where the nature of the processing operations does not allow it to be
established that the compensating products have resulted from the temporary export
goods, the authorisation may nevertheless be granted in duly justified cases,
provided the applicant can offer sufficient guarantees that the goods used in the
processing operations share the same eight-digit code of the Maltese Customs Tariff,
the same commercial quality and the same technical characteristics as the temporary
export goods. The authorisation shall lay down the conditions for using the
arrangements.
Article 254
Where the arrangements are requested for repair, the temporary export
goods must be capable of being repaired and the arrangements shall not be used to
improve the technical performance of the goods.
Section 2
Provisions concerning the operation of the arrangements
Article 255
1. The authorisation shall specify the period for discharge. Where the
circumstances so warrant, this period may be extended even when that originally set
has expired.
2. Article 157(2) of the Code applies, even after the original period has
expired.
Article 256
1. The declaration entering the temporary export goods for the arrangements
shall be made in accordance with the provisions laid down for exportation.
2. In the case of prior importation, the documents accompanying the
declaration for free circulation shall include a copy of the authorisation unless such
authorisation is applied for in accordance with Article 173(3)( d ). Article 85(3)
applies  mutatis mutandis .
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Section 3
Provisions concerning the calculation of the duty relief
Article 257
1. For the calculation of the amount to be deducted, no account shall be taken
of anti-dumping duties and countervailing duties.
Secondary compensating products that constitute waste scrap, residues,
offcuts and remainders shall be deemed to be included.
2. In determining the value of the temporary export goods in accordance with
one of the methods referred to in the second subparagraph of Article 151(2) of the
Code, the loading, transport, and insurance costs for the temporary export goods to
the place where the processing operation or the last such operation took place shall
not be included in:
( a ) the value of the temporary export goods which is taken into account
when determining the customs value of the compensating products in
accordance with Article 32(1)( b )(i) of the Code; or
( b ) the processing costs, where the value of the temporary export goods
cannot be determined in accordance with Article 32(1)( b )(i) of the
Code.
The loading, transport and insurance costs for the compensating products
from the place where the processing operation or the last processing operation took
place to the place of their entry into Malta shall be included in the processing costs.
Loading, transport and insurance costs shall include:
( a ) commissions and brokerage, except buying commissions;
( b ) the cost of containers not integral to the temporary export goods;
( c ) the cost of packing, including labour and materials;
( d ) handling costs incurred in connection with transport of the goods.
Article 258
Partial relief from import duties by taking the cost of the processing
operation as the basis of the value for duty shall be granted on request.
With the exception of goods of a non-commercial nature, the first paragraph
shall not apply where the temporary export goods which are not of Maltese origin
within the meaning of Title II, Chapter 2, Section 1, of the Code have been released
for free circulation at a zero duty rate.
Article 259
In the case of undertakings frequently carrying out processing operations
under an authorisation not covering repair, the customs authorities may, on request
of the holder, set an average rate of duty applicable to all those operations
(aggregated discharge).
This rate shall be determined for each period not exceeding twelve months
and shall apply provisionally for compensating products released for free circulation
during that period. At the end of each period, the customs authorities shall make a
final calculation and, where appropriate, apply the provisions of Article 220(1) or
Article 236 of the Code.
Articles 29 to 35 of the Code shall apply  mutatis mutandis  to the processing
costs, which shall not take into account the temporary export goods.
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I. EXPORT
CHAPTER 1
Permanent exportation
Article 260
1. The exporter, within the meaning of Article 161(4) of the Code, shall be
considered to be the person on whose behalf the export declaration is made and who
is the owner of the goods or has a similar right of disposal over them at the time
when the declaration is accepted.
2. Where ownership or a similar right of disposal over the goods belongs to a
person established outside Malta pursuant to the contract on which the export is
based, the exporter shall be considered to be the contract-ing party established in
Malta.
Article 261
Without prejudice to Article 72, where the export declaration is made on the
basis of the Single Administrative Document, copies 1, 2 and 3 shall be used. The
customs office where the export declaration has been lodged (customs office of
export) shall stamp Box A and, where appropriate, complete box D. On granting
release of the goods, it shall retain copy 1, send copy 2 to the customs office of
export and return copy 3 to the person concerned.
Article 262
1. Copy 3 of the Single Administrative Document and the goods released for
export shall be presented to customs at the customs office of exit.
2. Customs office of exit means:
( a ) in the case of goods exported by post, air or sea, the customs office
competent for the place where the goods are taken over under a single
transport contract for transport to another country by the postal
authorities, the airlines or the shipping companies;
( b ) in the case of goods exported by other means or in circumstances not
covered by ( a ), the last customs office before the goods leave the Malta.
3. The customs office of exit shall satisfy itself that the goods presented
correspond to those declared and shall supervise their physical departure. Where the
declarant enters "RET-EXP" in Box 44 or otherwise indicates his wish to have Copy
No 3 returned to him, the said office shall certify the physical departure of the goods
by means of an endorsement on the back of Copy No 3 and shall give that copy to the
person who presented it or, where that is not possible, to an intermediary named in
Box 50 for return to the declarant. The endorsement shall take the form of a stamp
showing the name of the office and the date.
In the case of split exportation, the endorsement shall be given only for
those goods which are actually exported. In the case of split exportation via several
different customs offices, the customs office of exit where the original of copy 3 was
presented shall, upon receiving a duly substantiated request, certify a copy of copy 3
for each part of the goods in question, with a view to it being presented to another
office of exit concerned. The original of copy 3 shall be noted accordingly.
4. Where the customs office of exit establishes that goods are missing, it shall
note the copy of the declaration presented and inform the customs office of export.
Where the customs office of exit establishes that there are goods in excess, it
shall refuse exit to these goods until the export formalities have been completed.
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When the customs office of exit establishes a discrepancy in the nature of
the goods, it shall refuse exit until the export formalities have been completed, and
shall also inform the customs office of export.
5. In the cases referred to in paragraph 2( a ), the customs office of exit shall
endorse copy 3 of the export declaration in accordance with paragraph 3 after
making the endorsement "Export" in red on the transport document and affixing its
stamp. Where, in the case of regular shipping lines or direct transport or flights to
other country destinations, the operators are able to guarantee the regularity of
operations by other means, the endorsement "Export" shall not be required.
6. Where goods sent to another country or a customs office of exit under a
transit procedure are concerned, the office of departure shall endorse copy 3 in
accordance with paragraph 3 and return it to the declarant after making the
endorsement "Export", in red, on all copies of the transit document or any other
document replacing it. The customs office of exit shall control the physical exit of
the goods.
6a. Where goods under excise duty suspension arrangements are exported the
customs office of export shall endorse Copy No 3 of the Single Administrative
Document in accordance with paragraph 3 and return it to the declarant after
entering the word "Export" in red and affixing the stamp.
The customs office of exit shall supervise the physical exit of the goods and
confirm that the product has indeed left Malta.
Where paragraph 4 applies, the annotation shall be entered.
7. The customs office of export may ask the exporter to provide evidence that
the goods have left Malta.
Article 263
1. Goods not subject to prohibition or restriction and not exceeding Lm 1,200
in value per consignment and per declarant may be declared at the customs office of
exit.
The Customs authorities may provide that this provision shall not apply
when the person making the export declaration is acting as a professional customs
agent on behalf of others.
2. Oral declarations may be made only at the customs office of exit.
Article 264
Where goods leave Malta without an export declaration, such declaration
shall be lodged retrospectively by the exporter at the competent customs office. 
Acceptance of this declaration shall be subject to presentation by the
exporter, to the satisfaction of the customs authorities, of evidence concerning the
nature and quantity of the goods in question and the circumstances under which they
left Malta. The customs authorities office shall also endorse copy 3 of the Single
Administrative Document.
Retrospective acceptance of the declaration shall not preclude application of
the penalties in force.
Article 265
Where goods released for export do not leave Malta, the exporter shall
immediately inform the customs office of export. Copy 3 of the declaration in
question shall be returned to that office.
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CHAPTER 2
Temporary exportation using an ATA carnet
Article 266
1. An ATA carnet may be used for export where the following conditions are
fulfilled:
( a ) the ATA carnet shall be issued in Malta and endorsed and guaranteed by
an association established in Malta forming part of an international
guarantee chain;
( b ) the ATA carnet shall be applicable only to Maltese goods in respect of
which no request for repayment has been submitted;
( c ) the documents referred to in Article 86 must be presented. The customs
authorities may require production of the transport document;
( d ) the goods must be intended for reimportation.
2. Where goods covered by an ATA carnet are entered for the purposes of
temporary exportation, the customs office of export shall carry out the following
formalities:
( a ) verify the information given in boxes A to G of the exportation voucher
against the goods under cover of the carnet;
( b ) complete, where appropriate, the box on the cover page of the carnet
headed "Certificate by customs authorities";
( c ) complete the counterfoil and box H of the exportation voucher;
( d ) enter its name in box H ( b ) of the reimportation voucher;
( e ) retain the exportation voucher.
3. If the customs office of export is not the office of exit, the customs office of
export shall carry out the formalities referred to in paragraph 2, but it shall not
complete box 7 of the exportation counterfoil, which must be completed by the
customs office of exit.
4. The time limit for reimportation of the goods laid down by the customs
authorities in box H ( b ) of the exportation voucher may not exceed the validity of the
carnet.
Article 267
Where goods which left Malta under cover of an ATA carnet are no longer
intended to be reimported, an export declaration containing the particulars referred
to in Annex 37 shall be presented to the customs office of export.
On presentation of the carnet in question, the customs office of export shall
endorse copy 3 of the export declaration and shall invalidate the reimportation
voucher and counterfoil.
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J. Free zones and free warehouses
CHAPTER I
Section 1
Provisions common to Sections 2 and 3
Subsection 1
Definitions and general provisions
Article 268
For the purposes of this Chapter:
( a ) "control type I" means controls principally based on the existence of a
fence;
( b ) "control type II" means controls principally based on the formalities
carried out in accordance with the requirements of the customs
warehousing procedure;
( c ) "operator" means any person carrying on an activity involving the
storage, working, processing, sale or purchase of goods in a free zone or
a free warehouse.
Article 269
Any person may apply to the customs authorities for any part of Malta to be
designated a free zone or for a free warehouse to be set up.
Article 270
1. The application for an authorisation to build in a free zone shall be made in
writing.
2. The application referred to in paragraph 1 shall specify the activity for
which the building will be used and give any other information that will enable the
customs authorities to evaluate the grounds for granting the authorisation.
3. The competent customs authorities shall grant authorisation in cases where
the application of customs rules would not be impeded.
4. Paragraphs 1, 2 and 3 shall also apply where a building in a free zone or a
building constituting a free warehouse is converted.
Subsection 2
Approval of the stock records
Article 271
1. The carrying on of activities by an operator shall be subject to the approval
by the customs authorities of the stock records referred to:
- in Article 176 of the Code in the case of a free zone of control type I or
a free warehouse;
- in Article 105 of the Code in the case of a free zone of control type II.
2. The approval shall be issued in writing. It shall be accorded only to persons
offering all the necessary guarantees concerning the application of the provisions on
free zones or free warehouses.
Article 272
1. The application for approval of the stock records shall be submitted in
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writing to the customs authorities.
2. The application referred to in paragraph 1 shall specify which activities are
envisaged, this information being considered as the notification referred to in Article
172(1) of the Code. It shall include the following:
( a ) a detailed description of the stock records kept or to be kept;
( b ) the nature and customs status of the goods to which these activities
relate;
( c ) where applicable, the customs procedure under which the activities are
to be carried out;
( d ) any other information needed by the customs authorities in order to
ensure the proper application of the provisions.
Section 2
Provisions applicable to free zones of control type I and to free warehouses
Subsection 1
Controls
Article 273
The fence enclosing free zones shall be such as to facilitate supervision by
the customs authorities outside the free zone and prevent any goods being removed
irregularly from the free zone.
The first paragraph shall also apply mutatis mutandis to free warehouses.
The area immediately outside the fence shall be such as to permit adequate
supervision by the customs authorities. Access to the said area shall require the
consent of the said authorities.
Article 274
The stock records to be kept for the free zone or free warehouse shall
include in particular:
( a ) particulars of marks, identifying numbers, number and kind of
packages, the quantity and usual commercial description of the goods
and, where relevant, the identification marks of the container;
( b ) information enabling the goods to be monitored at any time, in
particular their location, the customs-approved treatment or use
assigned to them after storage in the free zone or free warehouse or their
re-entry into another part of Malta;
( c ) reference particulars of the transport document used on entry and
removal of the goods;
( d ) indication of customs status and, where relevant, reference particulars
of the certificate certifying this status referred to in Article 278;
( e ) particulars of usual forms of handling;
( f ) as the case may be, the indications referred to in Articles 218, 219 or
251;
( g ) particulars concerning goods which would not be subject upon release
for free circulation or temporary importation to import duties or
commercial policy measures, the use or destination of which must be
checked.
The customs authorities may waive the requirement for some of this
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information where supervision or control of the free zone or the free warehouse is
not affected.
Where records have to be kept for the purposes of a customs procedure, the
information contained in those records need not appear in the stock records.
Article 275
The inward processing or processing under customs control procedures shall
be discharged in respect of the compensating products, processed products or goods
in the unaltered state situated in a free zone or free warehouse by entry in the stock
records of the free zone or free warehouse. Reference particulars of such entry shall
be recorded in the records for inward processing or processing under customs
control, as the case may be.
Subsection 2
Other provisions concerning the operation of free zone of control type I
and free warehouses
Article 276
Commercial policy measures provided for in national legislation shall be
applicable to non-Maltese goods placed in a free zone or free warehouse only to the
extent that they refer to the entry of goods into Malta.
Article 277
In the case of the re-exportation of non-Maltese goods which are not
unloaded or which are transhipped, the notification referred to in Article 182(3) of
the Code shall not be required.
Article 278
Where the customs authorities certify the Maltese or non-Maltese status of
the goods, in accordance with Article 170(4) of the Code, they shall use a form
conforming to the model and provisions in Annex 109.
The operator shall certify the Maltese status of the goods by means of that
form where non-Maltese goods are declared for release for free circulation in
accordance with Article 173( a ) of the Code, including where discharging the inward
processing or processing under customs control procedures.
Section 3
Provisions applicable to free zones of control type II
Article 279
Without prejudice to the provisions in Section 1 and in Article 280, the
provisions laid down for the customs warehouse arrangements shall be applicable to
the free zone of control type II.
Article 280
Where non-Maltese goods which are not unloaded or which are only
transhipped are placed under the free zone using the local clearance procedure and
re-exported later using the same procedure, the customs authorities may relieve the
operator from the obligation to inform the competent customs office of each arrival
or departure of such goods. In this case, the control measures shall take account of
the special nature of the situation.
The short-term storage of goods in connection with such transhipment shall
be considered to be an integral part of the transhipment.
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CHAPTER 2
Re-exportation, destruction an abandonment
Article 281
Where re-exportation is subject to a customs declaration, the provisions of
Articles 260 to 265 shall apply  mutatis mutandis , without prejudice to particular
provisions which may apply when the previous customs procedure with economic
impact is discharged.
Article 282
1. For the purposes of Article 182(3) of the Code, notification of destruction of
goods shall be made in writing and signed by the person concerned. The notification
must be made in sufficient time to allow the customs authorities to supervise the
destruction.
2. Where the goods in question are already the subject of a declaration
accepted by the customs authorities, they shall make a reference to the destruction
on the declaration and invalidate the declaration in accordance with Article 66 of the
Code.
The customs authorities present when the goods are destroyed shall specify
on the form or declaration the type and quantity of any waste or scrap resulting from
the destruction in order to determine the items of charge appli-cable to them and to
be used when they are assigned another customs-approved treatment or use.
3. The provisions of the first subparagraph of paragraph 2 shall apply mutatis
mutandis to goods abandoned to the Government.
K. CUSTOMS DEBT
TITLE I
SECURITY
Article 283
1. The types of security other than cash deposits or guarantors, within the
meaning of Articles 193, 194 and 195 of the Code, and the cash deposit or the
submission of securities for which the Customs authorities may opt even if they do
not comply with the conditions laid down in Article 194(1) of the Code, shall be as
follows:
( a ) the creation of a charge on land, an anti-chresis or other right deemed
equivalent to a right pertaining to immovable property;
( b ) the cession of a claim, the pledging, with or without surrendering
possession, of goods, securities or claims or, in particular, a savings
bank book or entry in the national debt register;
( c ) the assumption of joint contractual liability for the full amount of the
debt by a third party approved for that purpose by the Customs
authorities and, in particular, the lodging of a bill of exchange the
payment of which is guaranteed by such third party; 
( d ) a cash deposit or security deemed equivalent thereto in a currency other
than in Maltese liri;
( e ) participation, subject to payment of a contribution, in a general
guarantee scheme administered by the customs authorities.
2. The circumstances in which and the conditions under which recourse may be
had to the types of security referred to in paragraph 1 shall be determined by the
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Customs authorities.
Article 284
Where security is given by making a cash deposit, no interest thereon shall
be payable by the Customs authorities.
TITLE II
INCURRENCE OF THE DEBT
CHAPTER 1
Failures which have no significant effect on the operation of temporary storage
or of the customs procedure
Article 285
The following failures shall be considered to have no significant effect on
the correct operation of the temporary storage or customs procedure in question
within the meaning of Article 204(1) of the Code, provided:
- they do not constitute an attempt to remove the goods unlawfully from
customs supervision,
- they do not imply obvious negligence on the part of the person
concerned, and
- all the formalities necessary to regularize the situation of the goods are
subsequently carried out:
1. exceeding the time limit allowed for assignment of the goods to one of the
customs-approved treatments or uses provided for under the temporary storage or
customs procedure in question, where the time limit would have been extended had
an extension been applied for in time;
2. in the case of goods placed under a transit procedure, exceeding the time
limit for presentation of the goods to the office of destination, where such
presentation takes place later;
3. in the case of goods placed in temporary storage or under the customs
warehousing procedure, handling not authorized in advance by the Customs
authorities, provided such handling would have been authorized if applied for;
4. in the case of goods placed under the temporary importation procedure, use
of the goods otherwise than as provided for in the authorization, provided such use
would have been authorized under that procedure if applied for;
5. in the case of goods in temporary storage or placed under a customs
procedure, unauthorized movement of the goods, provided the goods can be
presented to the Customs authorities at their request;
6. in the case of goods in temporary storage or entered for a customs
procedure, removal of the goods from Malta or their introduction into a free zone of
control type I within the meaning of Article 268 or into a free warehouse without
completion of the necessary formalities;
7. in the case of goods having received favourable tariff treatment by reason of
their end-use, transfer of the goods without notification to the Customs authorities,
before they have been put to the intended use, provided that:
( a ) the transfer is recorded in the transferor’s stock records; and
( b ) the transferee is the holder of an authorization for the goods in question.
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8. in the case of goods eligible on release for free circulation for the total or
partial relief from import duties referred to in Article 145 of the Code, the existence
of one of the situations referred to in Article 204(1)( a ) or ( b ) of the Code while the
goods concerned are in temporary storage or under another customs procedure
before being released for free circulation;
9. in the framework of inward processing and processing under customs
control, exceeding the time-limit allowed for submission of the bill of discharge,
provided the time limit would have been extended had an extension been applied for
in time. 
10. exceeding the time-limit allowed for temporary removal from a customs
warehouse, provided the limit would have been extended had an extension been
applied for in time.
Article 286
The Customs authorities shall consider a customs debt to have been incurred
under Article 204(1) of the Code unless the person who would be the debtor
establishes that the conditions set out in Article 285 are fulfilled.
Article 287
The fact that the failures referred to in Article 285 do not give rise to a
customs debt shall not preclude the application of provisions of criminal law in force
or of provisions allowing cancellation and withdrawal of authorizations issued under
the customs procedure in question.
CHAPTER 2
Natural wastage
Article 288
1. For the purposes of Article 206 of the Code, the Customs authorities shall, at
the request of the person concerned, take account of the quantities missing wherever
it can be shown that the losses observed result solely from the nature of the goods
and not from any negligence or manipulation on the part of that person.
2. In particular, negligence or manipulation shall mean any failure to observe
the rules for transporting, storing, handling, working or processing the goods in
question imposed by the Customs authorities or by normal practice.
Article 289
The customs authorities may waive the obligation for the person concerned
to show that the goods were irretrievably lost for reasons inherent in their nature
where they are satisfied that there is no other explanation for the loss.
Article 290
The national provisions in force concerning standard rates for irretrievable
loss due to the nature of the goods themselves shall be applied where the person
concerned fails to show that the real loss exceeds that calculated by application of
the standard rate for the goods in question.
CHAPTER 3
Goods in special situations
Article 291
The presentation of a customs declaration for the goods in question, or any
other act having the same legal effects, and the production of a document for
endorsement by the competent authorities, shall be considered as removal of goods
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from customs supervision within the meaning of Article 203(1) of the Code, where
these acts have the effect of wrongly conferring on them the customs status of
Maltese goods.
However, in the case of airline companies authorised to use a simplified
transit procedure with the use of an electronic manifest, the goods shall not be
considered to have been removed from customs supervision if, at the initiative or on
behalf of the person concerned, they are treated in accordance with their status as
non-Maltese goods before the Customs authorities find the existence of an irregular
situation and if the behaviour of the person concerned does not suggest any
fraudulent dealing.
Article 292
Without prejudice to the provisions laid down concerning prohibitions or
restrictions which may be applicable to the goods in question, where a customs debt
on importation is incurred pursuant to Articles 202, 203, 204 or 205 of the Code and
the import duties have been paid, those goods shall be deemed to be Maltese goods
without the need for a declaration for entry into free circulation.
Article 293
The confiscation of goods pursuant to Article 233( c ) and ( d ) of the Code
shall not affect the customs status of the goods in question.
Article 294
1. Non-Maltese goods which have been abandoned to the Government or
seized or confiscated shall be considered to have been entered for the customs
warehousing procedure.
2. The goods referred to in paragraph 1 may be sold by the Customs authorities
only on the condition that the buyer immediately carries out the formalities to assign
them a customs-approved treatment or use.
Where the sale is at a price inclusive of import duties, the sale shall be
considered as equivalent to release for free circulation, and the Customs authorities
shall calculate the duties and enter them in the accounts.
In these cases, the sale shall be conducted according to the procedures in
force.
3. Where the Customs authorities decide to deal with the goods referred to in
paragraph 1 otherwise than by sale, they shall immediately carry out the formalities
to assign them one of the customs-approved treatments or uses laid down in Article
4(15)( a ), ( b ), ( c ) and ( d ) of the Code.
TITLE III
RECOVERY OF THE AMOUNT OF THE CUSTOMS DEBT
Article 295
The Customs authorities need not enter in the accounts amounts of duty of
less than Lm 3.
There shall be no post-clearance recovery of import duties or export duties
where the amount per recovery action is less than Lm 3.
Article 296 
The decision-making Customs authorities shall themselves decide not to
enter uncollected duties in the accounts:
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( a ) in cases in which they consider that the conditions laid down in Article
220(2)( b ) of the Code are fulfilled, provided that the amount not
collected from the operator concerned in respect of one or more import
or export operations but in consequence of a single error is less than
Lm20,000;
( b ) in cases in which the Customs authorities have been so authorised in
accordance with Article 300.
Article 297
The Customs authorities shall keep a list of the cases in which the provisions
of Article 296( a ) or ( b ) have been applied.
Article 298
In cases other than those referred to in Article 296, where the Customs
authorities either consider that the conditions laid down in Article 220(2)( b ) of the
Code are fulfilled or are in doubt as to the precise scope of the criteria of that
provision with regard to a particular case, the Customs authorities shall submit the
case to the Minister, so that a decision may be taken. The case submitted to the
Minister shall contain all the information required for a full examination. It must
also contain a signed statement from the person concerned with the case to be
brought before the Minister certifying that he has read the case and stating, either
that he has nothing to add, or listing all the additional information which he
considers should be included.
Article 299
The Minister shall decide whether the circumstances under consideration are
or are not such that the duties in question need not be entered in the accounts. The
Customs authorities shall be notified of the decision as soon as possible.
Article 300
Where it is established by the decision referred to in Article 299 that the
circumstances under consideration are such that the duties in question need not be
entered in the accounts, the Minister may, under conditions which he shall
determine, authorize the Customs authorities to refrain from post-clearance entry in
the account in cases involving comparable issues of fact and of law.
Article 301
If the Minister fails to take a decision or fails to notify a decision to the
Customs authorities within nine months from the date on which the case referred to
in Article 298 is received by the Minister, the Customs authorities shall not enter the
duties in question in the accounts.
Article 302
1. The Customs authorities shall suspend the debtor’s obligation to pay the
duties until such time as they have taken a decision on the request, provided that,
where the goods are no longer under customs supervision, security is lodged for the
amount of those duties, and that:
( a ) in cases where a request for invalidation of a declaration has been
presented, this request is likely to be met;
( b ) in cases where a request has been presented for remission pursuant to
Article 236 in conjunction with Article 220(2)( b ) of the Code or
pursuant to Article 238 or Article 239, the Customs authorities consider
that the conditions laid down in the relevant provision may be regarded
as having been fulfilled;
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( c ) in cases other than those referred to under ( b ), a request has been
presented for remission pursuant to Article 236 of the Code and the
conditions referred to in the second paragraph of Article 244 of the
Code have been fulfilled.
It shall not be necessary to require a security where such requirement would
be likely, owing to the debtor’s circumstances, to cause serious economic or social
difficulties.
2. In cases where goods in one of the circumstances referred to in the second
indent of Article 233( c ) or in Article 233( d ) of the Code are seized, the Customs
authorities shall suspend the debtor’s obligation to pay the duties if they consider
that the conditions for confiscation may be regarded as having been fulfilled.
TITLE IV
REPAYMENT OR REMISSION OF IMPORT OR EXPORT DUTIES
CHAPTER 1
General Provisions
Article 303
1. For the purposes of this Title:
( a ) customs office of entry in the accounts means: the customs office where
the import or export duties whose repayment or remission is requested
were entered in the accounts;
( b ) decision-making customs authority means: the customs authority
competent to decide on an application for repayment or remission of
import or export duties;
( c ) supervising customs office means: the customs office having
jurisdiction over the goods which gave rise to entry in the accounts of
the import or export duties whose repayment or remission is requested,
the said office carrying out certain checks required for appraisal of the
application;
( d ) implementing customs office means: the customs office which adopts
the measures necessary to ensure that the decision to repay or remit the
import or export duties is correctly implemented.
2. The functions of office of entry in the accounts, decision-making customs
authority, supervising customs office and implementing customs office may be
carried out wholly or in part by the same customs office.
CHAPTER 2
Implementing provisions relating to Articles 236 to 239 of the Code
Section 1
Application
Article 304
1. Application for repayment or remission of import or export duties,
hereinafter referred to as "application for re-payment or remission", shall be made by
the person who paid or is liable to pay those duties, or the persons who have taken
over his rights and obligations.
Application for repayment or remission may also be made by the
representative of the person or persons referred in the first subparagraph.
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2. Without prejudice to Article 307, application for re-payment or remission
shall be made, in one original and one copy, on a form conforming to the specimen
and provisions in Annex 111.
However, application for repayment or remission may also be made, at the
request of the person or persons referred to in paragraph 1, on plain paper, provided
it contains the information appearing in the said Annex.
Article 305
1. Applications for repayment or remission, accompanied by the documents
referred to in Article 6(1) of the Code must be lodged with the Customs authorities.
2. The Customs authorities shall enter the date of receipt on the original and
the copy of the application. They shall return the copy to the applicant.
Where the second subparagraph of Article 304(2) is applied, the Customs
authorities shall acknowledge receipt in writing to the applicant.
Article 306
1. The Customs authorities may accept an application not containing all the
information provided for on the form referred to in Article 304(2). However, the
application must contain at least the information to be entered in boxes 1 to 3 and 7.
2. Where paragraph 1 is applied, the Customs authorities shall set a time limit
for the supply of any missing particulars and/or documents.
3. Where the time limit set by the Customs authorities pursuant to paragraph 2
is not observed, the application shall be considered to have been withdrawn.
The applicant shall be informed of this immediately.
Article 307
1. For returned goods on which export duties were levied at the time of their
export, repayment or remission of these duties shall be subject to the presentation to
the Customs authorities of a request accompanied by:
( a ) the document issued as evidence of payment, where the amounts
concerned have already been collected;
( b ) the original, or the copy certified by the Customs authorities, of the
declaration for free circulation relating to the returned goods.
This document shall bear the following endorsement made by the
Customs authorities:
- Goods admitted as returned goods under Article 185(2)( b ) of the Code.
( c ) the copy of the export declaration returned to the exporter at the time of
completion of the export formalities for the goods, or a copy thereof
certified by the customs office of exportation.
Where the Customs authorities are already in possession of the particulars
contained in one or more of the declarations referred to at ( a ), ( b ) or ( c ) above, the
declaration or declarations concerned need not be produced.
2. The request referred to in paragraph 1 must be lodged with the Customs
authorities within 12 months of the date of acceptance of the export declaration.
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Section 2
Procedure for granting repayment or remission
Article 308
The Customs authorities may authorise completion of the customs
formalities to which any repayment or remission may be subject before it has ruled
on the application for repayment or remission. Such authorisation shall be entirely
without prejudice to its decision on the application.
Article 309
Without prejudice to Article 308 and until a decision has been taken on the
application for repayment or remission, the goods in respect of which repayment or
remission of duties has been requested may not be transferred to a location other
than that specified in the said application unless the applicant notifies in advance the
Customs authorities.
Article 310
Where an application for repayment or remission relates to a case where
supplementary information must be obtained or where the goods must be examined
in order to ensure that the conditions for repayment or remission laid down in
customs provisions and in this Title are satisfied, the Customs authorities shall adopt
the measures necessary to that end specifying the nature of the information to be
obtained or of the checks to be carried out.
The supervising customs office shall comply promptly with this request and
shall forward the information obtained and the results of the checks carried out to the
decision-making customs authority.
Article 311
1. When the decision-making Customs authorities possess all the necessary
particulars, they shall give their decision in writing on the application for repayment
or remission in accordance with Article 6(2) and (3) of the Code.
2. Where the application is approved, the decision shall include all the
particulars necessary for its implementation.
Depending on the circumstances, some or all of the following particulars
shall appear in the decision:
( a ) the information necessary for identifying the goods to which it applies;
( b ) the grounds for repayment or remission of the import or export duties
and a reference to the corresponding customs provisions and, where
appropriate, the corresponding article of this Title;
( c ) the use to which the goods may be put or the destination to which they
may be sent, depending on the possibilities available in the particular
case under the Code and where appropriate on the basis of a specific
authorisation by the decision-making customs authority;
( d ) the time limit for completion of the formalities to which repayment or
remission of the import or export duties is subject;
( e ) a statement indicating that the import or export duties will not be repaid
or remitted until the Customs authorities are satisfied that the
formalities to which repayment or remission is subject have been
completed;
( f ) particulars of any requirements to which the goods remain subject
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pending implementation of the decision;
( g ) a notice informing the recipient that he must give the original of the
decision when presenting the goods to customs.
Article 312
1. The Customs authorities shall take steps to ensure:
- where appropriate, that the requirements referred to in Article 311(2)( f )
are met,
- that in all cases the goods are actually used in the manner or sent to the
destination specified in the decision to repay or remit import or export
duties.
2. Where the decision specifies that the goods may be placed in a customs
warehouse or a free zone or free warehouse, and the recipient avails himself of this
opportunity, the necessary customs formalities must be carried out.
Article 313
The decision-making Customs authority having approved an application for
repayment or remission of duties shall repay or remit such duty only after it is
satisfied that the conditions set out in paragraph 1 of Article 312 are fulfilled.
Article 314
Where the request for repayment or remission is based on the existence, at
the time when the declaration of release for free circulation was accepted, of a
reduced or zero rate of import duty on the goods under a tariff quota, a tariff ceiling
or other preferential tariff arrangements, repayment or remission shall be granted
only on condition that, at the time of lodging the application for repayment or
remission accompanied by the necessary documents:
- in the case of a tariff quota, its volume has not been exhausted,
- in other cases, the rate of duty normally due has not been re-established.
If the conditions laid down in the preceding paragraph are not fulfilled,
repayment or remission shall nevertheless be granted where the failure to apply the
reduced or zero rate of duty to the goods was the result of an error on the part of the
customs authorities themselves and the declaration for free circulation contained all
the particulars and was accompanied by all the documents necessary for application
of the reduced or zero rate.
Article 315
Where a certificate of origin or other appropriate document is produced in
support of an application for repayment or remission, indicating that the imported
goods were eligible, at the time of acceptance of the declaration for free circulation,
for preferential tariff treatment, the decision-making Customs authority shall grant
such application only where it is duly established:
- that the document thus produced refers specifically to the goods in
question and that all the conditions relating to acceptance of the said
document are fulfilled,
- that all the other conditions for the granting of the preferential tariff
treatment are fulfilled.
Repayment or remission shall take place upon presentation of the goods.
Where the goods cannot be presented to the Customs authorities , the decision-
making customs authority shall grant repayment or remission only where it has
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information showing unequivocally that the certificate or document produced post-
clearance applies to the said goods.
Article 316
Import duties shall not be repaid or remitted under Article 238 of the Code
where:
- the defective nature of the goods was taken into consideration in
drawing up the terms of the contract, in particular the price, under
which the goods were entered for a customs procedure involving the
obligation to pay import duties,
- the goods are sold by the importer after it has been ascertained that they
are defective or do not comply with the terms of the contract.
Article 317
1. Without prejudice to Article 323(1)( c ), the decision-making Customs
authority shall set a deadline, no later than two months from the date of notification
of the decision to repay or remit import duties or export duties, for completion of the
customs formalities to which the repayment or remission of duties is subject.
2. Failure to observe the deadline referred to in paragraph 1 shall result in loss
of entitlement to repayment or remission except where the person affected by the
decision proves that he was prevented from meeting this deadline by unforeseeable
circumstances (excluding theft) or  force majeure .
Article 318
Where destruction of the goods authorized by the decision-making Customs
authority produces waste or scrap, such waste or scrap shall be regarded as non-
Maltese goods once a decision has been taken accepting the application for
repayment or remission.
Article 319
Where the authorization referred to in the second subparagraph of Article
238(2)( b ) of the Code is granted, the Customs authorities shall take all necessary
steps to ensure that goods placed in a customs warehouse, or free zone or free
warehouse may subsequently be recognized as non-Maltese goods.
Article 320
Where it is not the complete article that is exported, re-exported or
destroyed or assigned to another authorized customs treatment or use, but one or
more parts or components of that article, the amount to be repaid or remitted shall be
the difference between the amount of import duties on the complete article and the
amount of import duties which would have been chargeable on the remainder of the
article if the latter had been entered in the unaltered state for a customs procedure
involving the obligation to pay such duties on the date on which the complete article
was so entered.
Article 321
The amount referred to in Article 240 of the Code is hereby set at Lm 4.
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CHAPTER 3
Specific provisions relating to the application of Article 239 of the Code 
Section 1
Decisions to be taken by the Customs authorities
Article 322
Without prejudice to other situations to be considered case by case in
accordance with the procedure laid down in Articles 327 to 331, where the decision-
making Customs authority establishes that an application for repayment or remission
submitted to it under Article 239(2) of the Code:
- is based on grounds corresponding to one of the circumstances referred
to in Articles 323 to 326, and that these do not result from deception or
obvious negligence on the part of the person concerned, it shall repay or
remit the amount of import duties concerned.
"The person concerned" shall mean the person or persons referred to in
Article 304(1), or their representatives, and any other person who was involved with
the completion of the customs formalities relating to the goods concerned or gave
the instructions necessary for the completion of these formalities,
- is based on grounds corresponding to one of the circumstances referred
to in Article 326, it shall not repay or remit the amount of import duties
concerned.
Article 323
1. Import duties shall be repaid or remitted where:
( a ) non-Maltese goods placed under a customs procedure involving total or
partial relief from import duties or goods released for free circulation
with favourable tariff treatment by reason of their end-use are stolen,
provided that the goods are recovered promptly and placed again in
their original customs situation in the state they were in when they were
stolen;
( b ) non-Maltese goods are inadvertently withdrawn from the customs
procedure involving total or partial relief from the said duties under
which they had been placed, provided that, as soon as the error is found,
they are placed again in their original customs situation in the state they
were in when they were withdrawn;
( c ) it is impossible to operate the mechanism for opening the means of
transport on which goods previously released for free circulation are
located and accordingly to unload them on arrival at their destination,
provided that they are immediately re-exported;
( d ) goods originally released for free circulation are subsequently returned
to their non-Maltese supplier, under the outward processing
arrangements, to enable him - free of charge - to eliminate defects
existing prior to the release of the goods (even if found after release of
the goods) or to bring them into line with the provisions of the contract
under which they were released for free circulation, and the said
supplier decides to keep the goods permanently because he is unable to
remedy the defects or because it would not be economic to do so;
( e ) it is found, when the customs authorities decide on post-clearance entry
in the accounts of import duties actually due on goods released for free
circulation with full relief from such duties, that the goods in question
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have been re-exported without customs supervision, provided it is
established that the substantive conditions laid down in the Code for the
repayment or remission of such import duties would actually have been
met at the time of re-exportation if the amount had been levied when the
goods were released for free circulation;
( f ) a judicial body has forbidden the marketing of an item previously
entered for a customs procedure obliging the person concerned to pay
import duties under normal conditions, and the said item is re-exported
from Malta or destroyed under the control of the customs authorities,
provided it is established that the item in question has not actually been
used in Malta;
( g ) the goods have been entered for a customs procedure involving the
obligation to pay such duties by a declarant empowered to do so on his
own initiative and, through no fault of the declarant, it has not been
possible to deliver them to the consignee;
( h ) the goods have been addressed to the consignee in error by the
consignor;
( i ) the goods are found to be unsuitable for the use for which the consignee
intended them because of an obvious factual error in his order;
( j ) after having been released for a customs procedure involving the
obligation to pay import duties, the goods are found not to have
complied, at the time of their release, with the rules in force concerning
their use or marketing and therefore cannot be used for the purpose
intended by the consignee;
( k ) the use of the goods by the consignee for the purpose intended is
prevented or substantially restricted as a result of measures of general
scope taken, after the date of release for a customs procedure involving
the obligation to pay import duties, by an authority or other body having
the appropriate power of decision;
( l ) total or partial import duty relief applied for by the person concerned in
accordance with existing provisions cannot, through no fault of the
person concerned, be granted by the Customs authorities, who shall
accordingly enter in the accounts the import duties which have become
due;
( m ) the goods reached the consignee after the binding delivery dates
stipulated in the contract under which they were entered for a customs
procedure involving the obligation to pay import duties;
( n ) it has not been possible to sell the goods in Malta and they are delivered
free of charge to charities:
- carrying out their activities in another country, provided that they
are represented in Malta, or 
- carrying out their activities in Malta, provided that they are
eligible for relief in the case of importation for free circulation of
similar goods from other countries.
2. Without prejudice to paragraph 3, repayment or remission of import duties
in the cases referred to in paragraph 1( c ) and ( f ) to ( n ) shall, except where the goods
are destroyed by order of a public authority or delivered free of charge to charities
carrying out their activities in Malta, be conditional upon their re-export under the
supervision of the customs authorities.
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If requested, the decision-making authority shall permit re-export of the
goods to be replaced by their destruction or by placing them, with a view to re-
export, under the external transit procedure, under the customs warehousing
arrangements, or in a free zone or free warehouse.
However, concerning the cases referred to in paragraph 1( g ), ( i ) and ( l ), the
decision-making authority may, if requested, permit re-export of the goods to be
replaced by placing them under the customs warehousing arrangements, or in a free
zone or free warehouse.
Goods to be assigned one of these treatments shall be considered to be non-
Maltese goods. In this case, the Customs authorities shall take all requisite measures
to ensure that the goods placed in a customs warehouse, in a free zone or in a free
warehouse may later be recognised as non-Maltese goods.
3. In the cases referred to in paragraph 1( h ), repayment or remission of import
duties shall be conditional on re-export of the goods to the original supplier or to
another address specified by him.
4. In addition, the Customs authorities must be satisfied that the goods have
been neither used nor sold before their re-exportation.
Article 324
1. Import duties shall be repaid or remitted where:
( a ) goods entered in error for a customs procedure involving the obligation
to pay import duties have been re-exported without having been
previously entered for the customs procedure under which they should
have been placed, provided the other conditions laid down in Article
237 of the Code have been met;
( b ) the goods have been re-exported or destroyed in accordance with Article
238(2)( b ) of the Code without customs supervision, provided the other
conditions laid down in the said Article have been met;
( c ) the goods have been re-exported or destroyed without customs
supervision in accordance with Article 323(1)( c ) and ( f ) to ( n ), provided
the other conditions laid down in Article 323 (2) and (4) have been met.
2. Repayment or remission of import duties in the circumstances referred to in
paragraph 1 shall be conditional on:
( a ) production of all the evidence needed to enable the decision-making
Customs authority to satisfy itself that the goods in respect of which
repayment or remission is requested:
- have actually been re-exported, or
- have been destroyed under the supervision of authorities or
persons empowered to certify such destruction officially;
( b ) the return to the decision-making Customs authority of any document
certifying the Maltese status of the goods in question under cover of
which the said goods may have left Malta, or the presentation of
whatever evidence the said authority considers necessary to satisfy
itself that the document in question cannot be used subsequently in
connection with any importation of goods into Malta.
Article 325
1. For the purposes of Article 324(2):
( a ) the evidence needed to enable the decision-making Customs authority to
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satisfy itself that the goods in respect of which repayment or remission
is requested have actually been re-exported shall consist of the
presentation by the applicant of:
- the original or a certified copy of the declaration for export of the
goods, and
- certification by the customs office through which the goods
actually left Malta.
Where such certification cannot be produced, proof that the goods have
left Malta may be presented in the form of:
- certification by the customs office in the country of destination
confirming that the goods have arrived, or
- the original or a certified copy of the customs declaration for the
goods made in the country of destination.
These documents must be accompanied by administrative and
commercial documentation enabling the decision-making Customs
authority to check that the goods exported are the same as those which
had been declared for a customs procedure involving the obligation to
pay import duties, namely:
- the original or a certified copy of the declaration for the said
procedure, and
- where this is considered necessary by the decision-making
Customs authority, commercial or administrative documents
(such as invoices, dispatch details, transit documents or health
certificates) containing a full description of the goods (trade
description, quantities, marks and other identifying particulars)
which were presented with the declaration for the said procedure
or with the declaration for export or the customs declaration made
for the goods in the country of destination, as the case may be;
( b ) the evidence needed to enable the decision-making Customs authority to
satisfy itself that the goods in respect of which repayment or remission
is requested have actually been destroyed under the supervision of
authorities or persons authorized to certify officially such destruction
shall consist of the presentation by the applicant of:
- a report or declaration of destruction drawn up by the authorities
under whose supervision the goods were destroyed, or a certified
copy thereof, or
- a certificate drawn up by the person authorized to certify
destruction, accompanied by evidence of his authority.
These documents shall contain a sufficiently full description of the
destroyed goods (trade description, quantities, marks and other identifying
particulars) to enable the Customs authorities to satisfy themselves, by means of
comparison with the particulars given in the declaration for a customs procedure
involving the obligation to pay import duties and the accompanying commercial
documents (invoices, dispatch details, etc.), that the destroyed goods are those which
had been declared for the said procedure.
2. Where the evidence referred to in paragraph 1 is insufficient to allow the
decision-making Customs authority to take a decision on the case submitted to it in
full knowledge of the facts, or where certain evidence is not available, such evidence
may be supplemented or replaced by any other documents considered necessary by
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the said authority.
Article 326
Import duties shall not be repaid or remitted where the only grounds relied
on in the application for repayment or remission are, as the case may be:
( a ) re-export of goods previously entered for a customs procedure
involving the obligation to pay import duties, for reasons other than
those referred to in Article 237 or 238 of the Code or in Article 323 or
324, notably failure to sell;
( b ) destruction, for any reason whatsoever, save in the cases expressly
provided for by national legislation, of goods entered for a customs
procedure involving the obligation to pay import duties after their
release by the customs authorities;
( c ) presentation, for the purpose of obtaining preferential tariff treatment of
goods declared for free circulation, of documents subsequently found to
be forged, falsified or not valid for that purpose, even where such
documents were presented in good faith.
Section 2
Decisions to be taken by the Minister
Article 327
1. Where the Customs authorities to whom an application for repayment or
remission under Article 239(2) of the Code has been submitted cannot take a
decision on the basis of Article 322, but the application is supported by evidence
which might constitute a special situation resulting from circumstances in which no
deception or obvious negligence may be attributed to the person concerned, the
Customs authorities shall transmit the case to the Minister to be settled under
Articles 328 to 331.
However, except if the decision-making Customs authority is in doubt, it
can decide itself to grant repayment or re-mission of the duties in cases in which it
considers that the conditions laid down in Article 239(1) of the Code are fulfilled,
provided that the amount concerned per operator in respect of one or more import or
export operations, but arising from one and the same special situation, is less than
Lm20,000.
The term "the person concerned" shall be interpreted in the same way as in
Article 322.
In all other cases, the Customs authorities shall refuse the application.
2. The case sent to the Minister shall include all the facts necessary for a full
examination of the case presented. It shall also include a statement, signed by the
applicant for repayment or remission, certifying that he has read the case and stating
either that he has nothing to add or listing all the additional information that he
considers should be included.
Should it be found that the information supplied is not sufficient to enable a
decision to be taken on the case concerned in full knowledge of the facts, the
Minister may ask for additional information to be supplied.
3. Without awaiting completion of the procedure laid down in Articles 328 to
331, the Customs authorities may, if requested, permit the customs formalities
relating to the re-export or destruction of the goods to be carried out before the
Minister has given a ruling on the application in question. Such permission shall be
entirely without prejudice to the final decision on the application.
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Article 328
  Where, at any time in the procedure provided for in this Article and in
Article 329, the Minister intends to take a decision unfavourable towards the
applicant for repayment or remission, he shall communicate his objections to him/
her in writing, together with all the documents on which he bases those objections.
The applicant for repayment or remission shall express his/her point of view in
writing within a period of one month from the date on which the objections were
sent. If he/she does not give his/her point of view within that period, he/she shall be
deemed to have waived the right to express a position.
Article 329 
After consultation, the Minister shall decide whether or not the special
situation which has been considered justifies repayment or remission.
That decision shall be taken within nine months of the date on which the
case referred to in Article 327(2) is received by the Minister. Where the Minister has
found it necessary to ask for additional information from the Customs authorities in
order to reach his decision, the nine months shall be extended by a period equivalent
to that between the date the Minister sent the request for additional information and
the date he received that information.
Where the Minister has communicated his objections to the applicant for
repayment or remission, in accordance with Article 328, the nine-month deadline
shall be extended by a period equivalent to that between the date on which the
Minister sent the objections and the date on which he received the answer of the
interested party or, in the absence of an answer, the date of the expiry of the period
which was given to him/her to give his/her point of view.
Article 330
1. The Customs authorities shall be notified of the decision referred to in
Article 329 as soon as possible and in any event within 30 days of the expiry of the
time limit set in Article 329.
2. Where it is established by the decision referred to in Article 329 that the
circumstances under consideration justify repayment or remission, the Minister may,
under conditions which he shall determine, authorise the Customs authorities to
repay or remit duties in cases involving comparable issues of fact and of law.
Article 331
If the Minister fails to take a decision within the time limit set in Article
329, or fails to notify a decision to the Customs authorities within the time limit set
in Article 330, the decision-making Customs authority shall grant the application.
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ANNEX 1
(Article 12 of the Customs Code)
FORM BTI 01
DEPARTMENT OF CUSTOMS
BINDING TARIFF INFORMATION (BTI)
1 BTI Reference: 2. Date of start of validity
3. Holder (name and address) 4. Classification of goods in the Customs Nomenclature
Important Notice
The BTI remains valid for a period of six years as from
the date of start of validity.
The information supplied may be stored in a data-base of
the Department of Customs.
The holder shall have the right to appeal against this BTI.
5. Description of the goods:
6. Commercial denomination and additional information (confidential):
7. Justification of the classification of the goods:
8. This BTI has been issued on the basis of the following material provided by the
applicant:
Description  a Brochures  a Photos  a Samples  a Other  a
Date Signature Stamp
104 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
FORM BTI 02
APPLICATION TO THE DEPARTMENT OF CUSTOMS FOR
BINDING TARIFF INFORMATION (BTI)
(please read notes overleaf before completing)
1. Applicant: (Name and address in full) 2. Designated Holder of the BTI:
(Name and address in full)
(Only if different from Box 1)
3. Description of Goods:
(See also Box 4)
4. Composition of Goods:
(See note overleaf)
5. Enclosures being submitted to assist with tariff classification of the goods: (tick  " X " )*
Samples  a Photographs  a Diagrams  a Brochures  a Other  a
*Indicate any particulars in respect of which confidentiality is being sought
6. Classification envisaged by applicant: Nomenclature Code No.: ...................................
7. Have you previously imported/exported identical or similar goods'
Yes  a No  a (tick  " X " )
If yes, please give details
I declare that the information provided in this application is true and complete to the
best of my knowledge.
I agree to supply a translation of any document if so requested, and I accept that the
information supplied, save for those particulars indicated as being confidential, may be
stored on a data-base of the Department of Customs and used for the purposes of Article 12 of
the Customs Code.
Name Signature Date
(BLOCK CAPITALS)
TelephoneFax
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 105
NOTES ON COMPLETION OF APPLICATION FORM
All boxes must be completed in black ink and in block capitals. Applications
for Binding Tariff Information should be made only in respect of proposed
commercial transactions and should contain all the particulars necessary to arrive at
a classification decision. An application must be in respect of only one type of goods
e.g. goods, products or items relating to a single Customs nomenclature code.
The completed application form together with any accompanying samples,
etc., should he sent to the Tariff Classification Committee, Department of Customs,
Lascaris Wharf, Valletta CMR 02.
Box 1: The applicant may be the actual importer or exporter or agent. If
the applicant is an agent, Box 2 must be completed also in respect of
the designated holder.
Box 3: This description should be sufficiently detailed to enable the
goods to be identified and classified in the Customs nomenclature.
Use continuation sheet if it is necessary to give further details.
Box 4: The Customs nomenclature sometimes shows subdivisions e.g.
according to the percentage composition of the goods. In such cases
the percentage breakdown should be shown here. This may also
apply for goods which need to undergo laboratory analysis.
Use continuation sheet if it is necessary to give further details of
composition.
Box 5: Any photographs, samples, literature, etc., which will assist in
classifying the product should be enclosed with the application.
Box 6: Nomenclature code means the ten-digit code of the Maltese
Customs Tariff.
Box 7: An indication as to whether the applicant or the proposed holder
has previously imported or exported identical or similar goods
should be given here. Details with regard to that commercial
transaction should also be included.
CONFIDENTIALITY:  In relation to boxes 3, 4 and 5 in particular, any
information supplied which is to be treated as confidential should be clearly
indicated.
106 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
ANNEX 1A
1. Applicant: (Name and address in full) 2. Designated Holder of the BTI:
(Name and address in full)
(Only if different from Box 1)
3. Legal framework: (preferential/non-preferential)
4. (a) Description of Goods 4. (b) Tariff
Classification:
5. Composition of Goods:* 6. Ex-work price:*
7. Country of origin envisaged by applicant:
8. Rule considered to be satisfied: (see notes overleaf)
Principal Materials Used Country of origin MCT Number Value
9. Enclosures being submitted to assist with tariff classification of the goods: (tick "X")*
Samples a Photographs  a Diagrams  a Brochures  a Other  a
*Indicate any particulars in respect of which confidentiality is being sought
10. Have you previously imported/exported identical or similar goods'
Yes  a No  a (tick  " X " )
If yes, please give details
11. Are you aware of the existence within of any other BOI or BTI for these or similar
goods'
Yes  a No  a (tick  " X " )
If yes, please give details
I declare that the information provided in this application is true and complete to the
best of my knowledge. I agree to supply a translation of any document if so requested, and I
accept that the information supplied, save for those particulars indicated as being
confidential, may be stored on a database of the Department of Customs and used for the
purpose of the Customs Code and Implementing Regulations.
Name Signature Date
(BLOCK CAPITALS)
TelephoneFax E-Mail Address
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 107
Notes on Completion of Application Form
All boxes must be completed in black ink and in block capitals. Applications
for BOI should be made only in respect of proposed commercial transactions and
should contain all the particulars necessary to arrive at an origin decision. An
application must be in respect of only one type of good e.g. goods, products or items
relating to a single customs nomenclature code.
The completed application form together with any accompanying samples,
etc. should be sent to the Customs Economic Procedures Unit, Department of
Customs, Lascaris Wharf, Valletta CMR 02.
Telephone: 21232955/21235571
Box 1: The applicant may be the actual importer or exporter or agent. If the
applicant is an agent, Box 2 must be completed also in respect of the
designated holder.
Box 3: State whether the binding information required is for preferential or
non-preferential purposes.
Box 4: ( a ) This description should be sufficiently detailed to enable the
goods to be identified (and classified in the Customs nomenclature).
( b ) 10 digit nomenclature, as shown in the Maltese Tariff  (MCT)
should be inserted here.
Box 5: In so far as it is relevant, the composition of the goods and the
methods used to determine their composition. The Customs
nomenclature sometimes shows subdivisions e.g. according to the
percentage composition of the goods. In such cases the percentage
breakdown should be shown here.
Box 6: In so far as it is relevant, the ex-work price should be given.
Box 7: The applicant is invited to express a view as to the country of origin
envisaged.
Box 8: The particular rule which is considered to be satisfied and an
explanation as to how the rule was satisfied. As necessary, the
explanation should include details of the materials used in the
manufacture of the goods, their tariff classification and cost.
Use separate sheet if necessary to give farther details.
Box 9: Any samples, photographs, plans, catalogues or other documents
available relative to the composition of the goods or their constituent
materials which may illustrate the working or manufacturing process
which those materials have undergone should be attached as annexes if
necessary.
Box 10: An indication as to whether the applicant or the proposed holder has
previously applied for BOI for identical or similar goods should be
given here. Details with regard to that application should also be
included.
Box 11: Any knowledge on the part of the applicant or the proposed holder of
the existence of earlier BTI (Binding Tariff Information) or BOI
(Binding Origin Information) in respect of goods of the same kind
should be indicated, quoting references.
CONFIDENTIALITY: In relation to boxes 5, 6, 8 and 9 in particular. any information
supplied which is to be treated as confidential should be clearly indicated.
108 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
ANNEX 23
INTERPRETATIVE NOTES ON CUSTOMS VALUE
First column Second column
Reference to 
provisions of the 
Customs Code
Notes
Article 29(1) The price actually paid or payable refers to the price for the imported
goods. Thus the flow of dividends or other payments from the buyer to
the seller that do not relate to the imported goods are not part of the
customs value.
Article 29(1)( a )(iii) An example of such restriction would be the case where a seller
requires a buyer of automobiles not to sell or exhibit them prior to a
fixed date which represents the beginning of a model year.
Article 29(1)( b ) Some examples of this include:
( a ) the seller establishes the price of the imported goods on
condition that the buyer will also buy other goods in
specified quantities;
( b ) the price of the import goods is dependent upon the price
or prices at which the buyer of the imported goods sells
other goods to the seller of the imported goods;
( c ) the price is established on the basis of a form of payment
extraneous to the imported goods, such as where the
imported goods are semi-finished goods which have been
provided by the seller on condition that he will receive a
specified quantity of the finished goods.
However, conditions or considerations relating to the production or
marketing of the imported goods shall not result in rejection of the
transaction value. For example, the fact that the buyer furnishes the
seller with engineering and plans undertaken in the country of
importation shall not result in rejection of the transaction value for the
purposes of Article 29(1).
Article 29(2) 1. Paragraph 2( a ) and ( b ) provide different means of establishing
the acceptability of a transaction value.
2. Paragraph 2( a ) provides that where the buyer and the seller are
related, the circumstances surrounding the sale shall be examined and
the transaction value shall be accepted as the customs value provided
that the relationship did not influence the price. It is not intended that
there should be an examination of the circumstances in all cases where
the buyer and the seller are related. Such examination will only be
required where there are doubts about the acceptability of the price.
Where the customs authorities have no doubts about the acceptability of
the price, it should be accepted without requesting further information
from the declarant. For example, the customs authorities may have
previously examined the relationship, or it may already have detailed
information concerning the buyer and the seller, and may already be
satisfied from such examination or information that the relationship did
not influence the price.
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 109
3. Where the customs authorities are unable to accept the
transaction value without further inquiry, they should give the declarant
an opportunity to supply such further detailed information as may be
necessary to enable it to examine the circumstances surrounding the
sale, in this context, the customs authorities should be prepared to
examine relevant aspects of the transaction, including the way in which
the buyer  and seller, although related under the provisions of Article 3
of this Regulation, buy from and sell to each other as if they were not
related, this would demonstrate that the price had not been influenced
by the relationship. As an example of this, if the price had been settled
in a manner consistent with the normal pricing practices of the industry
in question or with the way the seller settles prices for sales to buyers
who are not related to him, this would demonstrate that the price had not
been influenced by the relationship. As a further example, where it is
shown that the price is adequate to ensure recovery of all costs plus a
profit which is representative of the firm’s overall profit  realised over a
representative period of time (e.g. on an annual basis) in sales of goods
of the same class or kind, this would demonstrate that the price had not
been influenced.
4. Paragraph 2( b ) provides an opportunity for the declarant to
demonstrate that the transaction value closely approximates to a ‘test’
value previously accepted by the customs authorities and is therefore
acceptable under the provisions of Article 29. Where a test under
paragraph 2( b ) is met, it is not necessary to examine the question of
influence under paragraph 2( a ). If the customs authorities already have
sufficient information to be satisfied, without further detailed inquiries,
that one of the tests provided in paragraph 2( b ) has been met, there is no
reason for them to require the declarant to demonstrate that the test can
be met.
Article 29(2)( b ) A number of factors must be taken into consideration in determining
whether one value "closely approximates" to another value. These
factors include the nature of the imported goods, the nature of the
industry itself, the season in which the goods are imported, and, whether
the difference in values is commercially significant. Since these factors
may vary from case to case, it would be impossible to apply a uniform
standard such as a fixed percentage, in each case. For example, a small
difference in value in a case involving one type of goods could be
unacceptable while a large difference in a case involving another type
of goods might be acceptable in determining whether the transaction
value closely approximates to the "test" values set forth in Article
29(2)( b ).
Article 29(3)( a ) An example of an indirect payment would be the settlement by the
buyer, whether in whole or in part, of a dept owed by the seller.
Article 30(2)( a )
Article 30(2)( b )
1. In applying these provisions, the customs authorities shall,
where possible, use a sale of identical or similar goods, as appropriate,
at the same commercial level and in substantially the same quantity as
the goods being valued. Where no such sale is found a sale of identical
or similar goods, as appropriate, that takes place under any one of the
following three conditions may be used:
( a ) a sale at the same commercial level but in a different
quantity;
( b ) a sale at a different commercial level but in substantially
the same quantity: or
( c ) a sale at a different commercial level and in a different
quantity.
2. Having found a sale under any one of these three conditions
adjustments will then be made, as the case may be, for:
( a ) quantity factors only;
( b ) commercial level factors only; or
( c ) both commercial level and quantity factors.
110 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
3. A condition for adjustment because of different commercial
levels or different quantities is that such adjustment, whether it leads to
an increase or a decrease in the value, be made only on the basis of
demonstrated evidence that clearly establishes the reasonableness and
accuracy of the adjustment, e.g. valid price lists containing prices
referring to different levels or different quantities. As an example of
this, if the imported goods being valued consist of a shipment of 10
units and the only identical or similar imported goods, as appropriate,
for which a transaction value exists involved a sale of 500 units, and it
is recognised that the seller grants quantity discounts, the required
adjustment may be accomplished by resorting to the seller’s price list
and using that price applicable to a sale of 10 units. This does not
require that a sale had to have been made in quantities of 10 as long as
the price list has been established as being bona fide through sales at
other quantities. In the absence of such an objective measure, however,
the determination of a customs value under the provisions of Article
30(2) ( a ) and ( b ) is not appropriate.
Article 30(2)( d ) 1. As a general rule, customs value is determined under these
provisions on the basis of information readily available in Malta. In
order to determine a computed value, however, it may be necessary to
examine the cost of producing the goods being valued and other
information which has to be obtained from outside Malta. Furthermore,
in most cases the producer of the goods will be outside the jurisdiction
of the Maltese authorities. The use of the computed value method will
generally be limited to those cases where the buyer and seller are
related, and the producer is prepared to supply to the Maltese authorities
the necessary costings and to provide facilities for any subsequent
verification which may be necessary.
2. The "cost or value" referred to in Article 30(2)( d ), first indent,
is to be determined on the basis of information relating to the
production of the goods being valued supplied by or on behalf of the
producer. It is to be based upon the commercial accounts of the
producer, provided that such accounts are consistent with the generally
accepted accounting principles applied in the country where the goods
are produced.
3. The "amount for profit and general expenses" referred to in
Article 30(2)( d ), second indent, is to be determined on the basis of
information supplied by or on behalf of the producer unless his figures
are inconsistent with those usually reflected in sales of goods of the
same class or kind as the goods being valued which are made by
producers in the country of exportation for export to Malta.
4. No cost or value of the elements referred to in this Article shall
be counted twice in determining the computed value.
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 111
5. It should be noted in this context that the "amount for profit
and general expenses" has to be taken as a whole. It follows that if, in
any particular case, the producer’s profit figure is low and his general
expenses are high, his profit and general expenses taken together may
nevertheless be consistent with that usually reflected in sales of goods
of the same class or kind. Such a situation might occur, for example, if a
product were being launched in Malta and the producer accepted a nil or
low profit to offset high general expenses associated with the launch.
Where the producer can demonstrate that he is taking a low profit on his
sales of the imported goods because of particular commercial
circumstances, his actual profit figures should be taken into account
provided that he has valid commercial reasons to justify them and his
pricing policy reflects usual pricing policies in the branch of industry
concerned. Such a situation might occur, for example, where producers
have been forced to lower prices temporarily because of an
unforeseeable drop in demand, or where they sell goods to complement
a range of goods being produced in Malta and accept a low profit and
maintain competitivity. Where the producer’s own figures for profit and
general expenses are not consistent with those usually reflected in sales
of goods of the same class or kind as the goods being valued which are
made by producers in the country of exportation for export to Malta, the
amount for profit and general expenses may be based upon relevant
information other than that supplied by or on behalf of the producer of
the goods.
6. Whether certain goods are "of the same class or kind" as other
goods must be determined on a case-by-case basis with reference to the
circumstances involved. In determining the usual profits and general
expenses under the provisions of Article 30(2)( d ), sales for export to
Malta of the narrowest group or range of goods, which includes the
goods being valued, for which the necessary information can be
provided, should be examined. For the purposes of Article 30(2)( d ),
"goods of the same class or kind" must be from the same country as the
goods being valued.
Article 31(1) 1. Customs values determined under the provisions of Article
31(1) should, to the greatest extent possible, be based on previously
determined customs values.
2. The methods of valuation to be employed under Article 31(1)
should be those laid down in Articles 29 and 30(2), but a reasonable
flexibility in the application of such methods would be in conformity
with the aims and provisions of Article 31(1).
3. Some examples of reasonable flexibility are as follows:
( a ) identical goods  - the requirement that the identical goods
should be exported at or about the same time as the goods
being valued could be flexibly interpreted; identical
imported goods produced in a country other than the
country of exportation of the goods being valued could be
the basis for customs valuation; customs value of
identical imported goods already determined under the
provisions of Articles 30(2)( c ) and ( d ) could be used;
( b ) similar goods  - the requirement that the similar goods
should be exported at or about the same time as the goods
being valued could be flexibly interpreted; similar
imported goods produced in a country other than the
country of exportation of the goods being valued could be
the basis for customs valuation; customs value of similar
imported goods already determined under the provisions
of Articles 30(2)( c ) and ( d ) could be used;
( c ) deductive method  - the requirement that the goods shall
have been sold in the "condition as imported" in Article
31(1)( a ) of this Regulation could be flexibly interpreted;
the "90 days" requirement could be administered flexibly.
112 g S.L.337.45
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Article 32(1)( b )(ii) 1. There are two factors involved in the appointment of the
elements specified in Article 32(1)( b )(ii) to the imported goods - the
value of the element itself and the way in which that value is to be
apportioned to the imported goods. The apportioned of these elements
should be made in reasonable manner appropriate to the circumstances
and in accordance with generally accepted accounting principles.
2. Concerning the value of the element, if the buyer acquires the
element from a seller not related to him at a given cost, the value of the
element is that cost. If the element was produced by the buyer or by a
person related to him, its value would be the cost of producing it. If the
element had been previously used by the buyer, regardless of whether it
had been acquired or produced by him, the original cost of acquisition
or production would have to be adjusted downwards to reflect its use in
order to arrive at the value of the element.
3. Once a value has been determined for the element, it is
necessary to apportion that value to the imported goods. Various
possibilities exist. For example, the value might be apportioned to the
first shipment, if the buyer wishes to pay duty on the entire value at one
time. As another example, he may request that the value be apportioned
over the number of units produced up to the time of the first shipment.
As a further example, he may request that the value be apportioned over
the entire anticipated production where contracts or firm commitments
exist for that production. The method of apportioned used will depend
upon the documentation provided by the buyer.
4. As an illustration of the above, a buyer provides the producer
with a mould to be used in the production of the imported goods and
contracts with him to buy 10 000 units. By the time of arrival of the first
shipment of 1 000 units, the producer has already produced 4 000 units.
The buyer may request the customs authorities to apportion the value of
the mould over 1 000, 4 000 or 10 000 units.
Article 32(1)( b )(iv) 1. Additions for the elements specified in Article 32(1)( b )(iv)
should be based on objective and quantifiable data. In order to minimize
the burden for both the declarant and customs authorities in determing
the values to be added, data readily available in the buyer’s commercial
record system should be used insofar as possible.
2. For those elements supplied by the buyer which were
purchased or leased by the buyer, the addition would be the cost of the
purchase or the lease. No addition shall be made for those elements
available in the public domain, other than the cost of obtaining copies of
them.
3. The ease with which it may be possible to calculate the values
to be added will depend on a particular firm’s structure and
management practice, as well as its accounting methods.
4. For example, it is possible that a firm which imports a variety
of products from several countries maintains the records of its design
centre outside the country of importation in such a way as to show
accurately the costs attributable to a given product. In such cases, a
direct adjustment may appropriately be made under the provisions of
Article 32.
5. In another case, a firm may carry the cost of the design centre
outside the country of importation as a general overhead expense
without allocation to specific products. In this instance, an appropriate
adjustment could be made under the provisions of Article 32 with
respect to the imported goods by apportioning total design centre costs
over total production benefiting from the design centre and adding such
apportioned cost on a unit basis to imports.
6. Variations in the above circumstances will, of course require
different factors to be considered in determining the proper method of
allocation.
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 113
7. In cases where the production of the element in question
involves a number of countries and over a period of time, the
adjustment should be limited to the value actually added to that element
outside Malta.
Article 32(1)( c ) The royalties and licence fees referred to in Article 32(1)( c ) may
include, among other things, payments in respect to patents, trademarks
and copyrights.
Article 32(3) Where objective and quantifiable data do not exist with regard to the
additions required to be made under the provisions of Article 32, the
transaction value cannot be determined under the provisions of Article
29. As an illustration of this, a royalty is paid on the basis of the price in
a sale in the importing country of a litre of a particular product that was
imported by the kilogram and made up into a solution after importation.
If the royalty is based partially on the imported goods and partially on
other factors which have nothing to do with the imported goods (such as
when the imported goods are mixed with domestic ingredients and are
no longer separately identifiable, or when the royalty cannot be
distinguished from special financial arrangements between the buyer
and the seller), it would be inappropriate to attempt to make an addition
for the royalty. However, if the amount of this royalty is based only on
the imported goods and can be readily quantified, an addition to the
price actually paid or payable can be made.
Article 22(1)( e ) One person shall be deemed to control another when the former is
legally or operationally in a position to exercise restraint or direction
over the latter.
Article 29(1)
Article 30(1)
The expression "and/or" allows the flexibility to use the sales and
make the necessary adjustments in any one of the three conditions
described in paragraph 1 of the interpretative notes to Articles 30(2)( a )
and ( b ).
Article 31(1)( a )(i) 1. The words "profit and general expenses" should be taken as a
whole. The figure for the purposes of this deduction should be
determined on the basis of information supplied by the declarant unless
his figures are inconsistent with those obtaining in sales in Malta of
imported goods of the same class or kind. Where the declarant’s figures
are inconsistent with such figures, the amount for profit and general
expenses may be based upon relevant information other than that
supplied by the declarant.
2. In determining either the commissions or the usual profits and
general expenses under this provision, the question whether certain
goods are of the same class or kind as other goods must be determined
on a case-by-case basis by reference to the circumstances involved.
Sales in the country of importation of the narrowest group or range of
imported goods of the same class or kind, which includes the goods
being valued, for which the necessary information can be provided,
should be examined. For the purposes of this provision, "goods of the
same class or kind" includes goods imported from the same country as
the goods being valued as well as goods imported from other countries.
Article 31(2) 1. Where this method of valuation is used, deductions made for
the value added by further processing shall be based on objective and
quantifiable data relating to the cost of such work. Accepted industry
formulas, recipes, methods of construction, and other industry practices
would form the basis of the calculations.
2. This method of valuation would normally not be applicable
when, as a result of the further processing, the imported goods lose their
identity. However, there can be instances where, although the identity
of the imported goods is lost, the value added by the processing can be
determined accurately without unreasonable difficulty.
On the other hand, there can also be instances where the
imported goods maintain their identity but from such a minor element in
the goods sold in the country of importation that the use of this
valuation method would be unjustified. In view of the above, each
situation of this type must be considered on a case-by-case basis.
114 g S.L.337.45
CUSTOMS (IMPLEMENTATION
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Article 31(3) As an example of this, goods are sold from a price list which grants
favourable unit prices for purchases made in larger quantities.
Sale quantity Unit price Number of sales
Total quantity 
sold at each 
price
1 to 10 units 100 10 sales of 3 units 65
11 to 25 units 95 5 sales of 11 units 55
Over 25 units 90 One sale of 30 
units
One sale of 50 
units
80
The greatest number of units sold at a price is 80; therefore, the unit
price in the greatest aggregate quantity is 90.
2. As another example of this, two sales occur. In the first sale
500 units are sold at a price of 95 currency units each. In the second sale
400 units are sold at a price of 90 currency units each. In this example,
the greatest number of units sold at a particular price is 500; therefore,
the unit price in the greatest aggregate quantity is 95.
3. A third example would be the following situation where
various quantities are sold at various prices.
( a ) Sales
Sale quantity Unit price
40 units 100
30 units  90
15 units 100
50 units  95
25 units 105
35 units  90
5 units 100
( b ) Total
Total quantity sold Unit price
65  90
50  95
60 100
25 100
In this example, the greatest number of units sold at a particular price
is 65; therefore, the unit price in the greatest aggregate quantity is 90.
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 115
ANNEX 24
(ARTICLE 20)
APPLICATION OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FOR 
THE DETERMINATION OF CUSTOMS VALUE
1. "Generally accepted accounting principles" refers to the recognised
consensus or substantial authority support within a country at a particular time as to
which economic resources and obligations should be recorded as assets and
liabilities, which changes in assets and liabilities should be recorded, how the assets
and liabilities and changes should be measured, what information should be
disclosed and how it should be disclosed, and which financial statements should be
prepared. These standards may be broad guidelines of general application as well as
detailed practices and procedures.
2. For the purposes of the application of the customs valuation provisions, the
customs administration  shall utilize information prepared in a manner consistent
with generally accepted accounting principles in Malta which is appropriate for the
Article in question. For example, the determination of usual profit and general
expenses under the provisions of Article 31(1)( a )(i) of this Regulation would be
carried out utilizing information prepared in a manner consistent with generally
accepted accounting principles in Malta. On the other hand, the determination of
usual profit and general expenses under the provisions of Article 30(2)( d ) of the
Code would be carried out utilizing information prepared in a manner consistent
with generally accepted accounting principles of the country of production. As a
further example, the determination of an element provided for in Article 32(1)( b )(ii)
of the Code undertaken in Malta would be carried out utilizing information in a
manner consistent with the generally accepted accounting principles of Malta.
116 g S.L.337.45
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ANNEX 28
DECLARATION OF PARTICULARS RELATING TO CUSTOMS VALUE
CUSTOMS DEPARTMENTD.V.1
1. NAME AND ADDRESS OF SELLER 
(Block Lellers)
FOR OFFICIAL USE
2. (a) NAME AND ADDRESS OF BUYER 
(Block Lellers)
2. (b) NAME AND ADDRESS OF DECLARANT
(Block Lellers)
IMPORTANT NOTICE
By signing and lodging the declaration the
declarant accepts responsibility for the accuracy
and completeness of the particulars given on this
form and on any continuation sheet lodged with it
and the authenticity of any document produced in
support. The declarant also accepts responsibility
to supply any additional information or document
necessary to establish the customs value of the
goods.
3. Terms of delivery
4. Number and date of invoice
5. Number and date of contract
6. Number and date of any previous Customs decision concerning boxes 7 to 9 Enter X where 
applicable
7. (a) Are the buyer and seller RELATED in the sense of Article 22(*) of this
Regulation' YES NO
If "No", go to Box 8.
(b) Did the relationship INFLUENCE the price of the imported goods YES NO
(c) (reply optional) Does the transaction value of the imported goods
CLOSELY APPROXIMATE to a value mentioned in Article 29(2)(b) of the
Customs Code YES NO
If "Yes", give details:
8. (a) Are there any RESTRICTIONS as to the disposition or use of the goods
by the buyer, other than restrictions which:
- are imposed or required by law or by the public authorities in Malta,
- limit the geographical area in which the goods may be resold, or
- do not substantially affect the value of the goods' YES NO
(b) Is the sale or price subject to some CONDITION or CONSIDERATION
for which a value cannot be determined with respect to the goods being valued' YES NO
Specify the nature of the restrictions, conditions or considerations as
appropriate
If the value of conditions or considerations can be determined, indicate the
amount in box 11(b)
9. (a) Are any ROYALTIES and LICENCE FEES related to the imported
goods payable either directly or indirectly by the buyer as a condition of the
sale' YES NO
(b) Is the sale subject to an arrangement under which part of the proceeds of
any subsequent RESALE, DISPOSAL or USE accrues directly or indirectly to
the seller' YES NO
If "YES" to either of these two questions, specify conditions and, if
possible, indicate the amounts in boxes 15 and 16
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(*) NOTES TO BOX 7 10(a) Number of continuation sheets
1. PERSONS SHALL BE DEEMED TO BE
RELATED ONLY IF: DVI Bis attached
(a) they are officers or directors of one another’s
business;
(b) they are legally recognized partners in
business;
10(b) Place
(c) they are employer and employee; Date
(d) any person directly or indirectly owns, controls
or holds 5% or more of the outstanding voting
stock or shares of both of them; Signature
(e) one of them directly or indirectly controls the
other;
(f) both of them are directly or indirectly
controlled by a third person;
(g) together they directly or indirectly control a
third person;
(h) they are members of the same family.
2. The fact that the buyer and the seller are related
need not preclude the use of a transaction value (see
Article 29(2) of  Customs Code  and the
Interpretative Notes on that provision in Annex 23)
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ANNEX 29
FOR OFFICIAL USE
CONTINUATION SHEET DVI Bis Item Item Item
A. Basis of
calculation
11(a) Net price in CURRENCY OF INVOICE (Price
actually paid or price payable for settlement at the material
time for valuation for customs purposes) ............................
(b) Indirect payments - see box 8(b) ...............................
(rate of exchange: )
12 Total A in NATIONAL CURRENCY
B.
ADDITIONS 
Costs in
NATIONAL
CURRENCY
NOT
INCLUDED
in A above
(*)
13 Costs incurred by the buyer:
(a) commissions, except buying commissions ................
(b) brokerage .................................................................
(c) containers and packing .............................................
QUOTE
BELOW
previous
relevant
Customs
decisions, if
any
14 Goods and services supplied by the buyer free of
charge or at reduced cost for use in connection with the
production and sale for export of the imported goods:
The values shown represent an apportionment where
appropriate.
(a) materials, components, parts and similar items
incorporated in the imported goods .....................................
(b) tools, dies, moulds and similar items used in the
production of the imported goods .......................................
(c) materials consumed in the production of the imported
goods
(d) engineering, development, artwork, design work and
plans and sketches undertaken elsewhere than in Malta and
necessary for the production of the imported goods .............
15 Royalties and licence fees - see box 9(a) ....................
16 Proceeds of any subsequent resale, disposal or use
accruing to the seller - see box 9(b) ....................................
17 Costs of deliver to .................. (place of introduction)
(a) transport ...................................................................
(b) loading and handling charges ....................................
(c) insurance ..................................................................
18 Total B
C DEDUC-
TIONS
Costs in
NATIONAL
CURRENCY
INCLUDED
in A above
(*)
19 Costs of transport after arrival at place of
introduction .......................................................................
20 Charges for construction, erection, assembly,
maintenance or technical assistance undertaken after
importation ........................................................................
21 Other charges (specify) .............................................
22 Customs duties and taxes payable in Malta by reason
of the importation or sale of the goods ................................
23 Total C
......................................................................
24 VALUE DECLARED (A + B - C)
(*) Where amounts are payable in FOREIGN CURRENCY, indicate in this section the amount in foreign
currency and the rate of exchane by reference ro each relevant element and item.
Reference Amount Rate of exchange
CUSTOMS (IMPLEMENTATION
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ANNEX 30
TAG TO BE AFFIXED ON HOLD BAGGAGE In A MALTESE AIRPORT
1. CHARACTERISTICS
The tag referred to in Article 63 shall be designed as to prevent its re-use.
( a ) This tag should bear a green stripe of at least 5 mm width along the full
length of the two edges of its routing and identification sections.
Moreover, these green stripes may extend also to other parts of the
baggage tag, with the exception of all areas showing the barcoded tag
number which must be printed on an obscured white background (see
specimens at 2(a))
( b ) For "expedite baggage", the tag shall be similar to that specified in
IATA resolution (see specimen at 2(b)).
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2 (b)
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ANNEX 32
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ANNEX 32
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ANNEX 32
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ANNEX 32
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ANNEX 32
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ANNEX 34
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ANNEX 34
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ANNEX 34
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ANNEX 34
132 g S.L.337.45
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ANNEX 36
INDICATION OF THE COPIES OF THE FORMS SHOWN IN ANNEX 32 and 34 
ON WHICH PARTICULARS SHOULD APPEAR BY A SELF-COPYING 
PROCESS (art. 80)
Box 
number
Copies Box 
number
Copies
I. BOXES FOR OPERATORS
1 1 to 4 27 1 to 4
except middle subdivision: 28 1 to 3
1 to 3 29 1 to 3
2 1 to 4 30 1 to 3
3 1 to 4 31 1 to 4
4 1 to 4 32 1 to 4
5 1 to 4 33 first subdivision on the left:
6 1 to 4 1 to 4
7 1 to 3 remainder: 1 to 3
8 1 to 4 34a 1 to 3
9 1 to 3 34b 1 to 3
10 1 to 3 35 1 to 4
11 1 to 3 36 1 to 3
12 1 to 3 37 1 to 3
13 1 to 3 38 1 to 4
14 1 to 4 39 1 to 3
15 1 to 4 40 1 to 4
15a 1 to 3 41 1 to 3
15b 1 to 3 42 1 to 3
16 1 to 3 43 1 to 3
17 1 to 4 44 1 to 4
17a 1 to 3 45 1 to 3
17b 1 to 3 46 1 to 3
18 1 to 4 47 1 to 3
19 1 to 4 48 1 to 3
20 1 to 3 49 1 to 3
21 1 to 4 50 1 to 4
22 1 to 3 51 1 to 4
23 1 to 3 52 1 to 4
24 1 to 3 53 1 to 4
25 1 to 4 54 1 to 4
26 1 to 3 55 -
56 -
I. ADMINISTRATIVE BOXES
A 1 to 4 C 1 to 4
B 1 to 3 D/J 1 to 4 (1)
(1) The Customs Office of dispatch can choose whether these particulars appear on the copies
specified.
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ANNEX 37
A. EXPORT (OR DISPATCH) 
1. Declaration
Enter the appropriate Customs Procedure Code for the first declared item
(e.g. E101) in the first subdivision. Leave the other sub-division blank.
BOX A Office of Destination
Enter here the Manifest Rotation Number or the Flight Number and date of arrival
Underneath enter the Bill of Lading number
2. Consignor/Exporter
Enter the full name and address of the person or company concerned.
As to the identification number, in the case of VAT-registered persons this
number should be entered. If no VAT registration exists than the number allocated
for the type of trader or for the particular trader by the Customs Department should
be used instead.
3. Forms
Enter the number of the subset in relation to the total number of subsets of forms
and continuation forms used. For example, if there is one C4 form and two
continuation sheets, indicate on the C4 form "1/3", on the first continuation sheet "2/
3" and on the second sheet "3/3".
Where the declaration covers only one item, i.e. only one "description of the
goods" box has to be completed, do not enter anything in box 3, but enter the figure
1 in box 5.
5. Items
Enter the total number of items declared by the person concerned in all the forms
and continuation forms used. The number of items must correspond to the number of
"description of the goods" boxes to be completed.
6. Total packages
Enter the total number of packages making up the consignment in question.
7. Reference number
Users are to enter the Entry Acceptance Number
8. Consignee
Enter the full name and address of the person(s) or company(ies) to whom the
goods are to be delivered. In the case of groupage consignments. 
10. Country of first destination
Insert country code of country of first destination.
12. Particulars relating to value: Enter the total added value (if any) in Lm of the
goods being exported.
14. Declarant or representative of the exporter/consignor
Enter the full name and address of the person or company concerned.
As to the identification number, in the case of VAT-registered persons the VAT
number should be entered. If no VAT registration exists than the number allocated
for the type of trader, or for the particular trader, by the Customs Department should
134 g S.L.337.45
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be used instead.
16. Country of origin
Enter the name and code of the country of origin
17/17a. Country of destination
Enter the name and code of the country concerned.
18. Identity and nationality of means of transport at departure
Enter the identity, e.g. registration number(s) or name of the means of transport
(truck, ship, aircraft) on which the goods are directly loaded when export formalities
are completed, followed by the nationality of the means of  transport (or that of the
vehicle propelling the others if there are several means of transport) using the
appropriate codes. For example, if a tractor and trailer with different registration
numbers are used, enter the registration number of  the tractor and that of the trailer,
together with the nationality of the tractor.
20. Delivery terms
Using the appropriate headings and codes, give particulars of relevant terms of the
commercial contract.
21. Identity and nationality of the active means of transport crossing the border
Using the appropriate codes, enter the type (ship, aircraft) of the active means of
transport crossing the external border followed by its identity, e.g. registration
number, and nationality, as  known at the time of completion of the export or transit
formalities.
In the case of combined transport or where several means of transport are used, the
active means of transport is the one which propels the whole combination. For
example, if it is a truck on a sea-going vessel, the active means of transport is the
ship; 
22. Currency and total amount invoiced
Enter here the Currency code in which the invoice is declared, plus the total
invoice value. Where more than one currency exists the value should be entered in
Lm, thc currency code being marked accordingly
23. Exchange rate
This may be left blank
25. Mode of transport at the border
Using the appropriate codes, enter the mode of transport corresponding to the
active means of transport which it is expected will be used on exit from malta
27. Place of loading
Enter, using the appropriate code and description, the place where the goods were
loaded onto the active means of transport on which they are to leave the country.
29. Office of exit
Enter the customs office by which it is intended that the goods should leave
Maltese territory.
30. Location of the goods
Enter the precise location where the goods may be examined.
31. Packages and description of goods; Marks and numbers; Container No(s);
CUSTOMS (IMPLEMENTATION
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Number and kind
Enter here the package type code and the number of packages.
Below this enter the marks and numbers on the packages and the Container
number, if any, in which the goods are packed. 
The description of goods should then be entered. The description should be clear
enough for the nomenclature to be identified.
32. Item number
Enter the number of the item in question in relation to the total number of articles
declared in the forms and continuation forms used, as described in the note to box 5.
33. Commodity code
Enter the ten-digit code number corresponding to the item in question.
34a. Country-of-origin code
Enter the appropriate code for the country of origin. Only one country of origin
may be entered for each subdivision, even for items having the same commodity
code. 
35. Gross mass (in kg)
Enter the gross mass of the goods described in the corresponding box 31,
expressed in kilograms. The gross mass is the aggregate mass of the goods with all
their packing, excluding containers and other transport equipment.
37. Procedure
Enter the appropriate Customs procedure code (made up of the Customs Regime
plus the sub-procedure) for the goods described in the corresponding box 31. Or the
first item the CPC must correspond to the CPC indicated in box 1. The procedure
(the final two digits) may vary for each separate subdivision but the Customs
Regime (made up of the first two characters e.g. E3) must be the same throughout
the declaration.
38. Net mass (in kg)
Enter the net mass of the goods described in the corresponding box 31, expressed
in kilograms. The net mass is the mass of the goods themselves without any packing.
40. Summary declaration/previous document/Bill of Lading 
Enter previous CPC and document reference if applicable, otherwise may be left
blank
41. Supplementary units
For use as necessary in accordance with the goods nomenclature. (As described in
the Quantity column of the Taric)
Enter the quantity of the item in question, expressed in the unit stipulated in the
goods nomenclature.
44. Additional information, documents produced, certificates and authorizations
Enter the Export Licence Number, if any, for the declared product
Next enter the reference to any supplementary documents or stamps that may be
required
In the box at the bottom right-hand corner of box 44 the added value in Lm, if any,
of the item being exported should be entered
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48. Deferred payment
This field is to be used for entering Prepayment Account Numbers. Used for
imports only at present, would be used in case export duties are introduced.
50. Principal and authorized representative, place, date and signature
54. Place and date, signature and name of the declarant or his representative
Enter the full name and the identity number, if one exists,  of the person making
the declaration.
Subject to specific provisions to be adopted with regard to the use of computerized
systems, the original of the handwritten signature of the person concerned must be
given on the copy which is to remain at the office of export/dispatch, followed by the
full name of that person. Where the person concerned is a legal person, the signatory
should add his capacity after his signature and full name.
C. IMPORT (DESTINATION) FORMALITIES
1. Declaration
Enter the appropriate Customs Procedure Code for the first declared item (e.g.
C414) in the first subdivision. Leave the other sub-division blank.
BOX A Office of Destination
Enter here the Manifest Rotation Number or the Flight Number and date of arrival
Underneath enter the Bill of Lading Number
2. Consignor/Exporter
Enter the full name and address of the person or company concerned.
3. Forms
Enter the number of the subset in relation to the total number of subsets of forms
and continuation forms used. For example, if there is one C4 form and two C4
continuation sheets, indicate on the C4 form '1/3', on the first continuation sheet '2/3'
and on the second '3/3'.
Where the declaration covers only one item, i.e. only One "description of the
goods" box has to be completed, do not enter anything in box 3, but enter the figure
1 in box 5.
5. Items
Enter the total number of items declared by the person concerned in all the forms
and continuation forms used. The number of items must correspond to the number of
"description of the goods" boxes to be completed.
6. Total packages
Enter the total number of packages making up the consignment in question.
7. Reference number
Users are to enter the declaration Reference Number
8. Consignee/Importer
Enter the full name and address of the person or company concerned.
CUSTOMS (IMPLEMENTATION
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As to the identification number, in the case of VAT-registered persons this
number should be entered. If no VAT registration exists than the number allocated
for the type of trader, or for that particular trader, by the Customs Department should
be used instead.
12. Particulars relating to value
Enter here the total freight, insurance and any other charge, in Lm, which together
with the invoice value, make up the landed price of the full consignment.
14. Declarant or representative of the exporter/consignor
Enter the full name and address of the person or company concerned.
As to the identification number, in the case of VAT-registered persons this
number should be entered. If no VAT registration exists than the number allocated
for the type of trader, or to the particular trader,  by the Customs Department should
be used instead.
15/15a. Country of dispatch/export
Enter the name and code of the country from which the goods are exported.
16. Country of origin
Enter the name and code of the country of origin
18. Identity and nationality of means of transport at arrival
Enter the identity, e.g. registration number(s) or name of the means of transport
(truck, ship, aircraft) on which the goods are directly loaded when export formalities
are completed, followed by the nationality of the means of  transport (or that of the
vehicle propelling the others if there are several means of transport) using the
appropriate codes. For example, if a tractor and trailer with different registration
numbers are used, enter the registration number of  the tractor and that of the trailer,
together with the nationality of the tractor.
20. Delivery terms
Using the appropriate headings and codes, give particulars of relevant terms of the
commercial contract.
21. Identity and nationality of the active means of transport crossing the border
Using the appropriate codes, enter the type (ship, aircraft) of the active means of
transport crossing the external border, followed by its identity, e.g. name or
registration number, and nationality.
In the case of combined transport or where several means of transport are used, the
active means of transport is the one which propels the whole combination. For
example, if it is a truck on a sea-going vessel, the active means of transport is the
ship; 
22. Currency and total amount invoiced
Enter the currency in which the invoice was drawn up, followed by the invoiced
price for all goods declared. Where more than one currency exists the value should
be entrered in Lm., the curency box being marked accordingly.
23. Exchange rate
Box for optional use(exchange rate in force between the invoice currency and the
Maltese currency.
25. Mode of transport at the border
138 g S.L.337.45
CUSTOMS (IMPLEMENTATION
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Using the appropriate code, enter the mode of transport corresponding to the
active means of transport on which the goods entered Maltese territory.
27. Place of unloading
Enter, in code form where provided for, the place where the goods are unloaded
from the active means of transport on which they crossed the Maltese frontier.
29. Office of entry
Enter the customs office by which the goods entered the Maltese customs
territory.
30. Location of the goods
Enter the precise location where the goods may be examined.
31. Packages and description of goods; Marks and numbers; Container No(s);
Number and kind.
Enter the package type code and the number of packages.
Enter the marks and numbers on the packages and the container number, if any.
Below these enter the description of the goods. The description should be clear
enough for the nomenclature to be identified.
32. Item number
Enter the number of the item in question in relation to the total number of articles
declared in the forms and continuation forms used, as described in the note to box 5.
33. Commodity code
Enter the ten-digit code number corresponding to the item in question.
34a. Country-of-origin code
Enter the appropriate code for the country of origin. Only one country of origin
may be entered for each subdivision, even for items having the same commodity
code. 
35. Gross mass (in kg)
Enter the gross mass of the goods described in the corresponding box 31,
expressed in kilograms. The gross mass is the aggregate mass of the goods with all
their packing, excluding containers and other transport equipment.
36. Preference
Enter the EUR I number for goods of EU origin only. The certificate must be
endorsed by the exporting country’s Customs authorities.
37. Procedure
Enter the appropriate Customs procedure code (made up of the Customs Regime
plus the sub-procedure) for the goods described in the corresponding box 31. Or the
first item the CPC must correspond to the CPC indicated in box 1. The procedure
(the final two digits) may vary for each subsequent subdivision but the Customs
Regime (made up of the first two characters e.g. C4) must be the same throughout
the declaration.
38. Net mass (in kg)
Enter the net mass of the goods described in the corresponding box 31, expressed
in kilograms. The net mass is the mass of the goods themselves without any
packaging.
CUSTOMS (IMPLEMENTATION
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40. Summary declaration/previous document/Bill of Lading
Enter the previous document number and CPC, if appropriate, otherwise leave
blank.
41. Supplementary units
For use as necessary in accordance with the goods nomenclature.
Enter the quantity of the item in question, expressed in the unit laid down in the
quantity column of the Taric.
42. Item price
Enter the item value in declared currency as per invoice
44. Additional information, documents produced, certificates and authorizations
The following information should be entered in the order given, starting from the
top.
The Import licence Number, if any, for the declared product.
The supplementary quantity and the unit of measurement. (for example 45 metres
or 24% volume alcohol pre litre)
Supplementary documents: Enter reference to any other accompanying attached
documents, certificates or authorizations).
Total of freight, insurance and any other charges which, together with the ex-
works value of the item, make up the landed value. This value, declared in Lm,
should be entered in the box bordered with a dotted line which is at the bottom right-
hand corner of box 44.
The currency code of the currency used for the invoice value of the item should be
entered right above the box mentioned in para. ‘(d)’. 
46. Statistical Value: this would be the CIF value of the item. May be left blank.
48. Deferred payment
This field is to be used for entering Prepayment Account Numbers
54. Place and date, signature and name of the declarant or his representative,
together with the identity card number.
Subject to specific provisions to be adopted with regard to the use of computerized
systems, the original of the handwritten signature of the person concerned must be
given on the copy which is to remain at the office of destination, followed by the
full name of that person.
Where that person is a legal person, the signatory should add his capacity after his
signature and full name.
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ANNEX 38
C400 Direct imports for home use
C401 Goods admitted directly to free circulation with full relief from duty only
C402 Goods admitted directly to free circulation with relief of 50% of the duty
only
C403 Goods admitted to free circulation with full relief of 25% of the duty only
- relief not to exceed Lm750
C405 Goods admitted directly to free circulation with full relief from duty and
levy
C406 Goods admitted directly to free circulation with full relief from duty and
vat
C407 Goods admitted to free circulation with full relief from duty, levy and vat
C411  Imported goods specifically exempted from levy by ministerial order
C412 Levy exemption on imports by MDC, Enemalta, Central Bank,
University* - no levy chargeable
C413 Goods for diplomatic use with relief from duty, levy and goods imported
under diplomatic immunities and privilages Act - vienna convention
C414 Specified goods imported by approved concerns with relief from duty only
(where minimum levy applies CPC424 is to be used)
C415 Specified goods imported by approved concerns with relief from levy only
(where minimum levy applies CPC425 is to be used)
C416 Specified goods imported by approved concerns with suspension of vat
only
C417 Specified goods imported by approved concerns with relief from duty and
from levy only
C418 Specified goods imported by approved concerns with relief from duty and
suspension of vat only (where minimum levy applies use CPC428)
C419 Specified goods imported by approved concerns with relief from levy and
suspension of vat only
C420 Specified goods imported by approved concerns with relief from duty and
levy, and suspension of vat
C421 Goods imported for processing under customs control* duty suspension
C422 Exemption on excise duty only - vat payable
C423 Exemption on excise duty and vat
C424 Specified goods of Cap. 44 and Cap. 94 imported by approved concerns
with relief from duty only
C425 Specified goods of Cap. 44 and 94 and HS1905 imported by approved
concerns with levy relief
C426 Import of fuel only - to be used soley by enemalta - vat not charged
C427 Goods of Chapters 44 & 94 and of HS1905 specifically exempted from
levy. n.b. to be used only where minimum rate of levy may apply
C428 Specified goods of Cap. 44 and 94 imported by approved concerns with
CUSTOMS (IMPLEMENTATION
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relief from duty and suspension of vat only - use only where minimum levy applies
C429 Goods imported by approved concerns with relief from levy and
suspension of vat (nb for goods where minimum levy applies)
C430 Specified goods imported by approved concerns exporting more than 50%
but less than 65% with relief from 50% vat 
C431 Specified goods imported by approved concerns exporting more than 65%
but less than 80% with relief from 65% vat
C432 Goods exempted from duty, excise duty and vat - levy charged 
C433 Specified goods the supply of which would be vat-exempt (4th Schedule)
C434 Goods by specified concerns with part-exemption from MDC
C435 Goods free of excise duty on tobacco by exemption in 3rd Schedule of
Excise Duty Act
C436 Goods free from excise duty on alcoholic product* as per exemptions list
in the Second Schedule of the Excise Duty Act
C437 Part exemption from levy on imported cigarettes* by ministerial order
leviable at Lm4.02 instead of Lm6.15
C438 Goods exempted from payment of VAT under some provision of the 5th
Schedule of the VAT Act - all taxes charged except VAT.
C440 Entry by bill of sight procedure
C441 Articles awarded abroad for distinction or meritorious achievment - no
duty, levy or VAT charged
C442 Artificial limbs and other surgical appliances of a similar nature, including
spare parts and invalid chairs - no duty, VAT or levy charged
C443 Bona fide  gifts of a non-commercial nature of a CIF value not exceeding
Lm50 - no duty, VAT or levy charged
C444 Braille and other articles for the blind - no duty, VAT or levy charged
C445 Food and drink for mendicant orders - no duty or levy charged
C446 Hearing-aid apparatus designed for the use of the deaf and identifiable
parts thereof - no duty charged
C447 One private motor vehicle imported by a permanent resident - no duty or
VAT charged
C448 One private motor-vehicle imported by returned migrant - no duty or VAT
due
C449 Travellers’ baggage, including used wearing apparel and used personal
effects - no duty or VAT or levy charged
C450 Specified allowances to travellers of tobacco, tobacco products and wine,
spirits, toilet waters and perfumes - no import duty or VAT charged
C451 Goods bought by travellers for their own use or as gifts* - value not over
Lm50 - no import duty or VAT charged
C452 Goods bought by travellers for their own use or as gifts, of a value
exceeding Lm50 - all taxes payable less Lm7.50
C453 Scientific instruments and apparatus for educational purposes or pure
scientific research - duty and VAT not charged 
142 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
C454 Educational sound and video recordings produced by the United Nations
or any of their specialised agencies - duty and VAT not charged
C457 Goods designed for the education, welfare or social advancement of
persons suffering from permanenet physical/mental disability - no duty / VAT 
C461 Goods for inward processing* on payment of taxes* involving drawback
application
C468 Goods for free circulation on payment, after previous importation by duty
relief procedure
C469 Importation for home use following previous temporary admission, where
claim for refund of deposit or release from guarantee is being made
C470 Release from Government bond after warehousing
C471 Release from private bond
C473 Meat put in bond prior to 26/7/95 heading Nos 0202301000-0202309000
levy at Lm00.07 per kilogram
C474 Goods ex warehouse for diplomatic missions (as declared by agents)
C481 Still wine, alcohol all of fermented origin: 1.2% to 15% volume alcohol
C482 Still wine* alcohol all of fermented origin* not enriched* strength >15%
but <=18% alcohol by volume 
C483 Sparkling wine* strength=<15% alcohol by volume* alcohol all fermented
C484 Still fermented beverages: strength <=10% vol, or >10% but <=15% vol,
all alcohol of fermented origin
C485 Sparkling fermented beverages* in bottles .....*alc strength <=13%
volume or >13% volume but <=15% volume, all alcohol of fermented origin
C486 Intermediate products* alcohol <=22%* not other beverages, as described
in Excise Duty Act, of HS2204,2205 or 2206
C487 Goods of HS33021040/90 and HS33029090* not containing alcohol* no
excise due
C488 Gas oil for fishing use as directed by Dept. of Fisheries* excise free 
C489 Gas oil and fuel oil for power generation* no excise duty chargeable
C490 Kerosene for heating purposes* of HS 2710005500* no excise duty
charged
C491 Gas oil for sea navigation within territorial waters, excluding for private
pleasure craft - excise duty at Lm0.061 per litre.
C492 Kerosene used as aircraft fuel for internal flights, excluding for private
pleasure aviation - excise duty at Lm0.031 per litre.
C500 Temporary admission of goods for return in unaltered state under article
17 of Import Duties Act where duty is secured against a deposit or guarantee
C501 Temporary admission of goods for repair, under article 17 of Import
Duties Act duty is secured against a deposit or guarantee
C502 Temporary admission of goods for manufacture or processing under
article 17 of Import Duties Act - duty is secured against deposit or guarantee
C505 Temporary admission under article 17 of Import Duties Act of goods for
return in unaltered state; entitled to relief from duty (no deposit due) 
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 143
C506 Temporary admission under article 17 of Import Duties Act of goods for
repair entitled to relief of duty; no deposit due
C507 Temporary admission under article 17 of Import Duties Act of goods for
manufacture or process entitled to relief from duty (no deposit due)
C521 Goods imported under the inward processing regime* all taxes suspended
C550 Temporary admission of goods from Government bond under article 17 of
Import Duties Act, following warehousing
C551 Temporary admission of goods from private bond, under article 17 of
Import Duties Act, following warehousing
C563 Temporary admission for use within confines of the Malta Airport
Authority, under article 17 of Import Duties Act, entitled to duty relief (no deposit
due) 
C610 Re-importation in unaltered state, after outright exportation of goods in
free circulation, where no drawback was claimed
C611 Re-imporation of goods in altered state following outright exportation
where no drawback was claimed
C612 Re-importation of goods after repairs involving replacement of parts
following outright exportation when no drawback was claimed
C613 Parts and accessories used in the repair of goods re-imported after outright
exportation, where no drawback was claimed
C620 Re-imporation in unaltered state following temporary exportation
C621 Re-imporation after outward processing under the outward processing
regime - new HS and added value of re-imported goods to be declared 
C622 Re-importation following outward processing* of parts and accessories
used to prodcuce goods imported under C621* no taxes charged 
C623 Re-importation following repair involving replacement of parts/access* no
duty or taxes charged;
C624 Parts or accessories used in repair of goods declared under C623 - all taxes
charged 
C700 Direct entry into warehouse or bond
C710 Entry for re-warehousing or bonding, after previous entry for warehousing
or bonding 
C720 Entry for warehousing opr bonding folowing previous entry under
temporary admission
C730 Entry for warehousing or bonding, of goods re-imported in altered state or
from repair, after temporary export
C803 Tobacco products - excise duty on 
C804 MAlta-brewed beer - excise duty on
C910 Transformation under customs control prior to clearance from customs
C911 Transformation under customs control while in customs warehouse/bond
C920 Destruction of goods - goods not cleared by customs
C921 Destruction of goods in customs warehouse
C922 Destruction of goods in private bond
144 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
C923 Destruction of goods within temporary imporation regime
C930 Locally produced goods subject to excise duty
C970 Transhipment of goods from importing to exporting vessel or aircraft
C971 Transhipment of goods in government stores to exporting craft on
payment of rent and/or removal expenses
E100 Outright exportation of Malta-made goods in free circulation, not
containing imported materials
E101 Outright exportation of Malta-made goods in free circulation, containing
imported materials
E102 Outright exportation of Malta-made goods in free circulation, containing
imported materials on which import duty drawback is claimed
E103 Outright exportation of Malta-made goods in free circulation, involving
claim for drawback of excise duty
E110 Outright exportation of antiques, works of art, etc. being goods subject to
export duty
E170 Outright exportation of Malta-made goods, not in free circulation,
containing imported materials subject to customs controls
E200 Temporary exportation of goods in free circulation
E221 Temporary exportation for outward processing 
E321 Re-export after inward processing
E341 Direct re-exportation of goods in free circulation, that were previously
entered for home use
E342 Direct re-exportation of goods that were previously entered for home use,
with claim to drawback of import or excise duty
E360 Re-exportation following temporary admission of goods in unaltered state,
with claim for repayment of deposit or release from guarantee 
E361 Re-exportation pf goods in unaltered state following temporary admission,
involving application for release from personal guarantee
E362 Re-export of goods in unaltered state following previous admission under
temporary admission and admitted free of duties
E363 Re-eport of goods in unaltered state, following temporary admission for
use within confines of Malta International Airport
E365 Re-export of temporarily admitted goods in altered state, involving
application for repayment of sum deposited or secured
E366 Re-export of temporarily imported goods in altered state, involving
application for release from personal guarantee
E367 Re-export of temporarily admitted goods in altered state, previously
admitted free of duties
E368 Re-export of goods in altered state, after temporary admission for use
within confines of Malta International Airport
E370 Re-export of goods from Government bond, following entry under
warehousing regime
E371 Re-export of goods from private bond, following entry under warehousing
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 145
regime 
E372 Re-export of goods following storage in Government warehouse (para 8)
E373 Re-export of goods following direct importation for use within confines of
Malta International Airport
E900 Supplies for use as stores to ships and aircraft, of goods in free circulation
E901 Supplies for use as stores to ships and aircraft of goods from Government
bond
E902 Supplies for use as stores to ships and aircraft, of goods from private bond
E903 Supplies for use as stores for ships and aircraft, of goods temporarily
admitted
146 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
ANNEX 44C
GOODS INVOLVING GREATER RISK OF FRAUD
ANNEX 62
(art 152)
SPECIAL STAMP
1. Malta’s coat of arms or any other characteristic identification
2. Customs office
3. Number of document
4. Date
5. Authorised consignor
6. Authorisation
1) H S Code 2) Description of the goods 3) Minimum 
quantities*
2207.10 Undenatured ethyl alcohol strength by volume of
80% vol or higher 3 hl
2208.20 Spirits, liquors and other sprirituous beverages 5 hl
2208.30
2208.40
2208.50
2208.60
2208.70
ex 2208.90
2402.20 Cigarettes containing tobacco 35,000 pieces
* The Customs authorities may establish a lower figure.
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 147
ANNEX 67
APPLICATION AND AUTHORISATION FORMS
GENERAL REMARKS
1. The layout of the models is not binding; e.g. instead of boxes the forms may
show a line structure or if required the space of the boxes may be extended.
However the order numbers and the appropriate text are obligatory.
2. In principle the boxes with a bold order number must be completed. The
explanatory note refers to exceptions.  
3. The Appendix of the notes shall contain the IPR economic-codes according
to Annex 70.
4. 'MCT' means the Maltese Customs Tariff.
148 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
Application for authorisation to use a customs procedure with economic impact/end-use
Note: Please refer to the appropriate explanatory note when filling out this form
O
r
i
g
i
n
a
l
1. Name of Applicant Reserved for customs purposes
Address
Tel. No.:
Vat. Reg. No.
2. Customs procedure(s) 3. Type of application 4. Continuation forms
5. Place and kind of accounts/records
6. Period of validity of authorisation
a b
7. Goods to be placed under the customs procedure
MCT code Descrption Quantity Value
8. Compensating or processed products
MCT code Descrption Rate of yield
9. Details of the planned activities
10. Economic conditions
11. Customs office(s)
a of entry
b of discharge
c supervising office(s)
12. Identification 13.Period of discharge
(months)
14. Simplified procedures 15. Transfer
a b
16. Additional information
17.
Signed ............................................... Dated .................................
Name ................................................. Designation .............................................
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 149
Application for authorisation to use inward processing
Continuation form
Application to use outward processing
Continuation form
O
r
i
g
i
n
a
l
18. Equivalent goods
MCT code Description
19. Prior exportation
20. Release for free circulation without customs declaration'
21. Additional information
22.
Signed ....................................... Dated .............................
Name ......................................... Designation ............................................................
....................................................................................
(Authorisation number)
O
r
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g
i
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a
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18. System
19. Replacement products
MCT code Description
20. Article 147(2) of the Code
21. Article 82(2)
22. Additional information
23.
Date  Signature Stamp
Designation Name
150 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
Application for authorisation to operate a customs warehouse 
or to use the arrangements in a type E warehouse
Continuation form
Application for authorisation to use Processing under Customs Control
Continuation form
O
r
i
g
i
n
a
l
18. Warehouse type
19. Warehouse or storage facilities (type E)
20. Deadline for lodging inventory of goods
21. Loss rate
22. Storage of goods not under the warehousing arrangements
MCT code Description Category/customs 
procedure
23. Usual forms of handling
24. Temporary removal: Purpose:
25. Additional information
26.
Signed ........................................ Dated .................
Name ..........................................
O
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i
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a
l
18. Other processors
19. Process applied for (Annex A to the Customs Code)
Part A Item Number
or Part B
20. Additional information 
22.
Signed ....................................... Dated ............................
Name .........................................
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 151
Application to use a customs procedure with economic impact/end-use
..............................................................................
(Authorisation number)
O
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i
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a
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1. Holder of authorisation Issuing authority
1a. This decision refers to your application of
Ref. no.:
2. Customs procedure(s) 3. Type of authorisation 4. Continuation forms
5. Place and kind of accounts/records
6. Period of validity of authorisation
a b
7. Goods to be placed under the customs procedure
MCT code Descrption Quantity Value
8. Compensating or processed products
MCT code Descrption Rate of yield
9. Details of the planned activities
10. Economic conditions
11. Customs office(s)
a of entry
b of discharge
c supervising office(s)
12. Identification 13.Period of discharge
(months)
14. Simplified procedures 15. Transfer
a b
16. Additional information/conditions (e.g. security requirements)
17.
Dated Signature Stamp
Name
152 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
Application to use inward processing
Continuation form
Authorisation to operate a customs warehouse 
or to use the arrangements in a type E warehouse
Continuation form
....................................................................................
(Authorisation number)
O
r
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g
i
n
a
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18. Equivalent goods
CMT code Description
19. Prior exportation
20. Release for free circulation without customs declaration
21. Additional information
22.
Date  Signature Stamp
Name
.....................................................................................
(Authorisation number)
O
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i
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a
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18. Warehouse type Identification number of the warehouse
19. Warehouse or storage facilities (type E)
20. Deadline for lodging inventory of goods
21. Loss rate
22. Storage of goods not under the warehousing arrangements
MCT code Description Category/customs 
procedure
23. Usual forms of handling
24. Temporary removal: Purpose:
25. Additional information
26.
Date Signature Stamp
Name
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 153
Authorisation to use Processing under Customs Control
Continuation form
O
r
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g
i
n
a
l
18. Other processors
19. Process applied for (Annex A to the Customs Code)
Part A Item Number
or Part B
20. Additional information 
22.
Signed ....................................... Dated ............................
Name .........................................
154 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
EXPLANATORY NOTES TO ANNEX 67
Title I
Particulars to be entered in the various boxes of the application form
General note:
References are to the implementing provisions of the Customs Code unless
otherwise stated. .
Enter the full name, address, telephone number and VAT Registration number of
the applicant. The applicant is the person to whom the authorisation should be
issued.
Enter the customs procedure(s) under which the goods listed in box 7 are intended
to be placed. The relevant customs procedures are given below:
- free circulation with end-use
- customs warehousing
- inward processing - suspension system
- inward processing - drawback system
- processing under customs control
- temporary importation
- outward processing
Note:
If the applicant applies for an authorisation to use more than one customs procedure
(integrated authorisation) and the form does not fit the requirements (e.g. because the goods
which should be placed under the customs procedures are not the same for each procedure)
separate forms should be used. .
Type of application must be entered in this box by using at least one of the
following codes:
1 = first application
2 = application for modified or renewed authorisation (also indicate the
appropriate authorisation number)
4 = application for successive authorisation (inward processing)
Enter the number of continuation forms attached.
Note:
Continuation forms are provided for the following customs procedures:
Customs warehousing, inward processing (where necessary) and outward processing
(where necessary)
Enter the place of accounts. This is the place where the applicant’s commercial,
tax or other accounting material, or such data held on his behalf, is located. Specify
also the kind of accounts by giving details about the system used.
1. Applicant
2. Customs procedure(s)
3. Type of application
4. Continuation forms
5. Place and kind of accounts/records
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 155
State also the kind of records (stock records) to be used for the customs procedure.
Records means: the data containing all the necessary information and technical
details, enabling the customs authorities to supervise and control the customs
procedure.
Note:
If it is intended to use a customs warehouse type B, box 5 is not to be completed.
In case of temporary importation box 5 need be completed only where required by customs
authorities.
Indicate in box 6a the requested date on which the authorisation should take effect
(day/month/year). In principle the authorisation takes effect on the date of issue at
the earliest. In this case enter "date of issue". The date of expiry of the authorisation
may be suggested in box 6b.
- MCT code
Complete according to the Maltese Customs Tariff (MCT code = ten digits).
- Description
The description of the goods means the trade and/or technical description.
- Quantity
Enter the estimated quantity of the goods intended to be placed under the customs
procedure.
- Value
Enter the estimated value in Maltese liri or in other currency of the goods intended
to be placed under the customs procedure.
Note:
End-use:
If the application concerns special provisions you should give details of how these
provisions apply. It is not necessary to give details about the MCT code, quantity and value of
the goods;
Customs warehousing:
If the application covers a number of items of different goods, you may enter the word
"various" in sub-box "MCT code". In this case describe the nature of goods to be stored in
sub-box "Description". It is not necessary to give details about the MCT code, quantity and
value of the goods;
Inward and outward processing:
MCT code: The four-digit code may be indicated. However the ten-digit code must be given
where:
- equivalent goods or the standard exchange system are to be used,
- Article 253 (2) is applied,
- the economic conditions are identified by codes 10, 11 or 99,
- the customs authorities require this in accordance with the first paragraph of Article
6. Period of validity of the authorisation
a b
7. Goods to be placed under the customs procedure
156 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
4.
Description: The trade and/or technical description should be sufficiently clear and detailed
to enable a decision to be taken on the application, when it is planned to use equivalent goods
or the standard exchange system give details about commercial quality and technical
characteristics of the goods.
Quantity: This information need not be entered with regard to inward processing where the
code used to refer to the economic conditions is code 30 in so far as it is not intended to use
equivalent goods. However the quantity must be indicated where processing of durum wheat
to produce pasta is involved or where the eight-digit code must be given for milk and milk
products.
Value: This information need not be given where the quantity is not required unless the
applicant intends to avail himself of code 30 ( de minimus  value).
General remark:
Enter details of all compensating products resulting from the operations indicating
main compensating product (MCP) or secondary compensating product (SCP) as
appropriate.
MCT code and description:
See comments on box 7.
Rate of yield:
Indicate the estimated rate of yield or method by which that rate is to be
determined. In case of standard rates of yield indicate so.
Describe the nature of the planned activities (e.g. details of the operations under a
job-processing contract or kind of usual forms of handling) to be carried out on the
goods within the customs procedure. Indicate also the appropriate place(s).
If more than one customs procedure is applied for in b2, description must clearly
show whether the goods are to be placed under the customs procedures alternatively
or successively.
Note:
In the case of “end-use” enter the intended end-use and the place(s) where the goods will be
assigned to the prescribed end-use.
Where appropriate enter name, address and function of other operators involved.
If a transfer of rights and obligations is intended (Articles 82(2) and 90 of the
Code), enter in box 9, if possible, details about the transferee.
The applicant must give reasons for the fulfilment of the economic conditions.
In particular for:
- customs warehousing that an economic need for warehousing exists,
- inward processing by using at least one of the two-digit codes set out in the
appendix for each MCT code which has been indicated in box 7,
- processing under customs control that the use of non-Maltese sources
enables processing activities to be created or maintained in Malta.
8. Compensating or processing products
MCT code Description Rate of yield
9. Details of planned activities
10. Economic conditions
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 157
Note:
In the case of:
- end-use box 10 is not to be completed,
- temporary importation it is necessary to indicate the Article(s) under which
authorisation is applied for and to give details about the owner of the goods described in box
7,
- outward processing complete box 10 only if required by the customs authorities
pursuant to Article 252(1).
Indicate the suggested customs office(s).
Note:
In case of end-use box 11b is not to be completed.
Enter in box 12 the intended means of identification by using at least one of the
following codes:
1 = serial or manufacturer’s number
2 = affixing of plumbs, seals, clip-marks or other distinctive marks
4 = taking of samples, illustrations or technical descriptions
5 = carrying out of analyses
7 = other means of identification measures according to Article 139 second
subparagraph of the code (only suitable for temporary importation)
Note:
In the case of customs warehousing completion is necessary only if this is required by the
customs authorities.
Box 12 is not to be completed in the case of inward processing with equivalent goods,
outward processing with standard exchange system or where Article 253 (2) is applied.
Box 18 of the continuation form "inward processing" or boxes 19 or 21 of the continuation
form "outward processing" shall be completed instead.
Enter the estimated period needed for the operations to be carried out or use within
the customs procedure(s) applied for (box 2). The period ends when the goods or
products have been assigned a new permitted customs-approved treatment or use
including, as the case may be, in order to claim repayment of import duties after
inward processing (drawback system), or in order to obtain total or partial relief
from import duties upon release for free circulation after outward processing.
Note:
In the case of end-use state the period which will be needed to assign the goods to the
prescribed end-use or to transfer the goods to another holder of authorisation.
In the case of customs warehousing the period is unlimited; therefore leave blank.
In the case of inward processing: where the period for discharge expires on a specific date
for all the goods placed under the arrangement in a given period, the inward processing
authorisation may provide that the period for discharge shall be automatically extended for all
goods still under the arrangements on this date. If this simplification is required enter: "Article
11. Customs office(s)
a of entry
b of discharge
c supervising office(s)
12. Identification
13. Period for discharge (months)
158 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
211(2)" and give the details in box 16.
Box 14a:
If it is intended to use a simplified entry procedure specify using at least one of the
following codes:
1 = incomplete declaration  (Article 118(1)) 
2 = local clearance procedure with presentation (Article 118(3))
Box 14b:
If it is intended to use a simplified discharge procedure specify using at least one
of the following codes:
The same as for box 14a.
Note:
In the case of end-use procedure box 14b is not to be completed.
If a transfer of goods or products is intended state the proposed transfer
formalities using at least one of the following codes:
1 = without customs formalities between different places designated in the
authorisation applied for
2 = transfer from the office of entry to the applicant’s or operator’s facilities or
place of use under cover of the declaration for entry for the customs procedure
3 = transfer to the office of exit with a view to re-exportation should take place
under cover of the customs procedure
4 = transfer from one holder to another 
Note:
Indicate in box 16 the suggested procedure
6 = other documents (only suitable for end-use; describe in box 16).
Note:
Transfer is not possible where the place of departure or arrival of the goods is a type B
warehouse.
Indicate all additional information considered useful.
If a continuation form is used complete only the appropriate box (22, 23 or 26)
instead.
14. Simplified procedures
a b
15. Transfer
16. Additional information
17.
Signed ................................................. Date ..................................................
Name ...................................................
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 159
Title II
Remarks concerning the continuation forms
Continuation form "customs warehousing"
Indicate one of the following types:
Type A, B, C, D or E.
Enter the precise place intended to be used as the customs warehouse or, where the
application relates to a type E warehouse, as storage facilities.
You can make a suggestion for the deadline for lodging inventory of goods.
Give details, where appropriate, of loss rate(s).
MCT code and description
Where it is planned to use common storage state the eight-digit MCT code,
commercial quality and technical characteristics of the goods. In all other cases the
trade and/or technical description is sufficient  or if the storage of goods not under
the arrangements covers a number of items of different goods, you may enter the
word "various" in sub-box "MCT code". In this case describe the nature of goods to
be stored in sub-box "Description".
Category/customs procedure
Indicate in column "Category/customs procedure" the appropriate code(s):
1 = Maltese agricultural goods
2 = Maltese industrial goods
3 = non-Maltese agricultural goods
4 = non-Maltese industrial goods
and specify the customs procedure if any to which the goods are subject.
Complete if usual forms of handling are envisaged.
Complete if temporary removal is envisaged.
Indicate all additional information considered useful with regard to boxes 18 to
24.
18. Warehouse type
19. Warehouse or storage facilities (type E)
20. Deadline for lodging inventory of goods
21. Loss rate
22. Storage of goods not under the arrangements
MCT code Description Category/customs 
procedure
23. Usual forms of handling
24. Temporary removal. Purpose:
25. Additional information
160 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
Continuation form "inward processing"
Where it is planned to use equivalent goods, state the eight-digit MCT code,
commercial quality and technical characteristics of the equivalent goods to enable
the customs authorities to make the necessary comparison between import goods and
equivalent goods. The Codes provided for box 12 may be used to suggest supporting
means, which might be useful for this comparison. If the equivalent goods are at a
more advanced stage of manufacture than the import goods give appropriate
information in box 21.
Where it is planned to use the prior exportation system indicate the period within
which the non-Maltese goods should be declared for the arrangements taking
account of the time required for procurement and transport to Malta.
Where it is requested that the compensating products or goods in the unaltered
state will be released for free circulation without formalities, enter "YES".
Indicate all additional information considered useful with regard to boxes 18 to
20.
Continuation form "outward processing"
Where intended enter the appropriate code(s):
1 = standard exchange system without prior importation
2 = standard exchange system with prior importation
Where it is planned to use the standard exchange system (only possible in case of
repair), state the eight-digit MCT code, commercial quality and technical
characteristics of the replacement products to enable the customs authorities to make
the necessary comparison between temporary export goods and the replacement
products. The codes provided for box 12 may be used to suggest supporting means,
which might be useful for this comparison.
Where the applicant is not the person who arranges for the processing operations
to be carried out, authorisation may be granted (only for goods of Maltese origin) in
accordance with Article 147(2) of the Code. Enter in box 20 "YES" and give the
appropriate details.
Where the nature of the processing operations does not allow it to be established
18. Equivalent goods
MCT code Description
19. Prior exportation
20. Release for free circulation without customs declaration
21. Additional information
18. System
19. Replacement products
MCT code Description
20. Article 147(2) of the Code
21. Article 253(2)   of the Code
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 161
that the compensating products have resulted from the temporary export goods, the
authorisation may nevertheless be granted in duly justified cases, provided the
applicant can offer sufficient guarantees that the goods used in the processing
operations share the same eight-digit MCT code, the same commercial quality and
the same technical characteristics as the temporary export goods. The codes
provided for box 12 may be used to suggest supporting means, which might be
useful for this purpose. If such an authorisation is applied for enter in box 21 "YES"
and give the appropriate details.
Indicate all additional information considered useful with regard to boxes 18 to
21.
Continuation form "processing under customs control"
Other processors
If someone else will process the goods on your behalf, or at premises other than
the applicant’s address, provide full details on an attached sheet
Process applied for 
- for a specific process covered by Annex A of the Customs Code, Part A,
give the item number; 
- for goods/processes not covered by Part A of the Annex give full details
of the proposals, and enclose the economic evidence required for the
Malta Development Corporation to consider. 
22. Additional information
162 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
ANNEX 67J
Application for processing under Customs control
Simplified procedure
(see conditions of use)
Section 1 - Application EPU ...................... Entry number .................... Date ............
Section 2 - PCC return (see details of completion)
The goods imported to PCC on the above Entry have been disposed of as follows (X as
appropriate). In all cases you must provide supporting evidence of disposal, including copy
declarations and evidence of payment of any duties due.
Other means of disposal (specify) ....................................................................................... 
................................................................................................................................ ............
Signature ................................... Status (Director/Co. Secretary/etc) ............... Date ..........
WARNING. Anyone who gives untrue information about goods imported under these
arrangements may be liable to penalties.
1. Importer’s Name and Address 2. Place of processing (if different from Box 1)
Contact: Tel:
3. Item number applied for - Customs
Code, Annex A Part A. (If application is
made under item 10, attach a schedule
showing the "duty advantage" calculations).
4. Description of process
5. Technical description of goods for
process
6. Description of compensating products
MCT Code (8 digits) ............................... MCT Code (8 digits) ...............................
7. Rate of Yield (or description of the
method by which the rate may be
established)
8. Throughout period (if more than 6 months is
needed for processing, state the period
required, and give reasons)
9. Declaration: I undertake to comply with the condition of claiming relief under
Processing under Customs Control arrangements, as laid down in the Customs Code, and the
Implementing Provisions on Customs Economic Procedures which lay down provisions for
its implementation.
Signature ........................................ Status ........................... (Director/Co. Secretary/ etc)
Name (in block letters) ............................................ Date ..................................
Note: Authorisation to process under Customs Control is granted upon acceptance of the
import entry
Processed products declared to free
circulation
Unaltered goods declared to free
circulation
Processed products/unaltered goods
exported
Unaltered goods transferred to another
PCC trader
(Authorisation number: PC/ ......../........./...)
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 163
NOTES ON COMPLETION AND CONDITIONS OF USE
Section 1 must be completed in triplicate. Copy one should be attached to the
Import entry and copy two retained with your commercial records. When the time
allowed for processing has expired you must complete Section 2 of Copy 3, and send
the whole form to the Customs Economic Procedures Unit (CEPU) at the address
given below after, within 30 days of the end of the authorised throughput period. No
reminders will be issued. Failure to submit the return within this period may result in
relief being disallowed.
All authorised procedures are subject to post verification.
1. As the authorisation holder, you are responsible for the duty and associated
charges applicable to the goods on the attached customs import declaration.
2. You are authorised to process the goods indicated in box 31 of the attached
declaration in the manner indicated at item 4, to produce the compensating products
indicated in Box 6. The approved processing operations will be carried out at the
premises indicated at item 1 or 2. Note: this authorisation is subject to the right of
the Customs authorities to vary it.
3. Enter in Box 3 the Item number from Part A of Annex A to Customs Code,
which permits the process which you intend to carry out on the imported goods.
4. Describe in Box 4 the process to be carried out on the imported goods.
5. Give a description in Box 5 of the goods for process, together with the Tariff
commodity code(s) to the 8 digit level. If there are several different commodities,
you may attach a separate schedule and refer to this in Box 5.
6. Give a description in Box 6 of the goods to be  produced, together with the
Tariff commodity code(s) to the 8 digit level. If there will be several different
products, you may attach a separate schedule and refer to this in Box 6.
7. The rate of yield will be that indicated at item 7 overleaf. If you are unable
to establish the rate prior to processing, you must give a full description of the
method by which the rate will be established. If this is to be by documentary means
you should enter "To be established through production records".
8. Under this authorisation you have 6 months in which to process the goods
and assign the products to free circulation, or to another "customs approved
treatment or use". If a longer period is needed enter in Box 8 the period required. If
the authorised period is to be exceeded you must notify the Customs Economic
Procedures Unit (CEPU) in writing requesting an extension to the throughput period.
9. It is your responsibility to ensure that records are kept detailing all the
processing operations carried out under this authorisation. You must retain all
records pertaining to this authorisation and processing for a minimum of six years
from the date on which the return is submitted to Customs.
10. Under this authorisation you may not:
- receive PCC goods from other PCC traders
11. You must notify the Customs Economic Procedures Unit of any changes
which may influence the content or continuation of this approval. Their address is:
Customs Economic Procedures Unit
Department of Customs
Customs House
Lascaris Wharf
Valletta CMR 02
164 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
ANNEX 70
ECONOMIC CONDITIONS 
A. GENERAL PROVISIONS
This Annex deals with the detailed criteria for economic conditions
applicable to the inward processing arrangements.
B. DETAILED CRITERIA FOR ECONOMIC CONDITIONS APPLICABLE
TO THE INWARD PROCESSING ARRANGEMENTS
Codes and detailed criteria
10: Unavailability of goods produced in Malta falling within the same eight-
digit MCT code, which are of the same commercial quality and which have the same
technical characteristics (comparable goods) as the import goods referred to in the
application.
The unavailability covers the total absence of production in Malta of
comparable goods, the unavailability of a sufficient quantity of those goods in order
to carry out the processing operations envisaged or the fact that comparable Maltese
goods cannot be made available to the applicant in time for the proposed commercial
operation to be carried out, despite a request having been made in good time.
11: Although available, comparable goods cannot be used because their price
would make the proposed commercial operation economically unviable.
In deciding whether the price of comparable goods produced in Malta would
make the proposed commercial operation economically unviable, it shall be
necessary to take account,  inter alia  of the impact that the use of goods produced in
Malta, would have on the cost price of the compensating product and hence on the
disposal of the product on the market of the other country, having regard to:
- the price before duty of the goods for processing and the price of
comparable goods produced in Malta less domestic taxes refunded or
refundable on export,
- the price obtainable for the compensating products on the market of the
other country, as ascertained from commercial correspondence or other
information.
12: Comparable goods which do not conform to the expressly stated
requirements of the purchaser in the other country of the compensating products or
the compensating products must be obtained from import goods in order to comply
with provisions concerning the protection of industrial or commercial property rights
(contractual obligations).
30: The following are concerned:
1. operations involving import goods of a non-commercial nature;
2. operations carried out under a job-processing contract;
3. usual forms of handling referred to in Article 109 of the Code;
4. repair;
5. processing operations on compensating products obtained under a
previous inward processing authorisation the granting of which was
subject to an examination of the economic conditions;
6. processing of durum wheat falling within MCT code 1001 10 00 00 to
produce pasta falling within MCT codes 1902 11 00 00 and 1902 19;
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 165
7. operations in which the value  of the import goods, by eight-digit MCT
code, does not exceed LM 200 000, per applicant and per calendar year
( de minimus  value);
99: The applicant considers the economic conditions to be fulfilled for reasons
other than those corresponding to the previous codes. The reasons are indicated in
his application.
ANNEX 77
(Article 249)
Cases where the entry of goods for temporary importation by written declaration is
not subject to the provision of a security
1. Materials belonging to airline, shipping or postal services and used by them
in international traffic, subject to them being distinctively marked.
2. Packings imported empty, carrying indelible non-removable markings.
3. Disaster-relief material intended for State or approved bodies.
4. Medical, surgical and laboratory equipment intended for a hospital or
medical institution which has urgent need of such equipment.
5. Entry for temporary importation of goods transferred in the meaning of
Article 185, where the previous holder entered the goods for temporary importation
in accordance with Articles 84 or 97 .
       
166 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
ANNESS 111
APPLICATION FOR REPAYMENT/REMISSION
(read the notes attached before completing the form)
1 1. Applicant or his representative (nameand address) 2. Application for repayment/remission
O
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I
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f
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t
h
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a
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o
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i
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a Reference to the customs declaration
3. Customs office of entry in the accounts
(name and address)
4. Supervising customs office (name and
address)
5. Location of the goods 6. Comments of the supervising office
7. Destination of the goods (request for
prior assignment)
1
8. Description of the goods, number and type 9. MCT code
10. Net quantity 11. Customs value
12. Amount of repayment/remission of duties
applied for in Maltese liri
Number of annexes
13. Application for repayment/remission
The undersigned hereby applies for the repayment/remission (1)  of import/export (1)  duties under
the following Article of the Code (2)
(1) delete as appropriate
(2) make a cross in the appropriate box - (X) a  236
14. Acknowledgement of receipt of the
application by the customs office in the accounts
a  237
a  238
Place and date a  239
Signature Stamp
15. Comments 16. Place and date
Signature of applicant
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 167
ANNESS 111
APPLICATION FOR REPAYMENT/REMISSION
(read the notes attached before completing the form)
1 1. Applicant or his representative (nameand address) 2. Application for repayment/remission
C
O
P
Y
 
F
O
R
 
T
H
E
 
A
P
P
L
I
C
A
N
T
a Reference to the customs declaration
3. Customs office of entry in the accounts
(name and address)
4. Supervising customs office (name and
address)
5. Location of the goods 6. Comments of the supervising office
7. Destination of the goods (request for
prior assignment)
1
8. Description of the goods, number and type 9. MCT code
10. Net quantity 11. Customs value
12. Amount of repayment/remission of duties
applied for in Maltese liri
Number of annexes
13. Application for repayment/remission
The undersigned hereby applies for the repayment/remission (1)  of import/export (1)  duties under
the following Article of the Code (2)
(1) delete as appropriate
(2) make a cross in the appropriate box - (X) a  236
14. Acknowledgement of receipt of the
application by the customs office in the accounts
a  237
a  238
Place and date a  239
Signature Stamp
15. Comments 16. Place and date
Signature of applicant
168 g S.L.337.45
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE)
NOTES
A. General note
The part of the form constituting the application (boxes 1 to 12) shall be filled in
by the applicant so that it is legible and indelible, preferably using a typewriter. It
shall not contain any erasures or overwritten words. Correction should be made by
crossing out the wrong words and adding further particulars, as necessary.
Corrections must be initiated by the applicant and endorsed by the customs
authority.
B. Special notes referring to the relevant box numbers
1. Give the name or business name and full address, including the postal code,
of the applicant or of his representative.
Where the applicant is not the person who paid or is liable to pay the duties
to which the applicant refers, indicate the capacity in which the applicant is acting.
2. Give particulars of the customs declaration which gave rise to entry in the
accounts of the duties the repayment or remission of which is requested.
3. Give the name and full address, including postal code, of the customs office
where the import or export duties to which the application refers were entered in the
accounts.
4. This box must be filled in where the goods are under the jurisdiction of a
customs office other than the one referred to in box 3. In this case, give the name and
full address , including postal code, of the customs office concerned.
5. Give the full address, including postal code.
6. This box must be filled in where Article 320 is applied. In this case, give the
quantity, nature and value of the goods which are to remain in Malta.
Where the goods are to for delivery to a charity, give the name or business
name and full address, including postal code.
7. Except in the cases referred to in Article 236 of the Code, give the customs
approved use or treatment  to which the applicant wishes to assign the goods,
depending on the possibilities available in the particular case under the Customs
Code (re-export from the Malta, entry for another customs procedure, placing in a
free zone or free warehouse, destruction, or delivery to a charity). Where the new
customs treatment is subject to authorisation, give particulars of such authorisation.
Indicate if prior assignment to the treatment or use in question is requested.
8. Give the usual trade description of the goods or their tariff description. The
description must correspond to that used in the customs declaration referred to in
box 2.
State the number, kind, marks and identification numbers of packages. In the
case of unpackaged goods, state the number of objects or indicate "in bulk".
9. Give the Maltese Customs Tariff (MCT) code.
10. The quantity must be expressed in units of the metric system kilograms,
litres, square metres, etc.
11. Indicate the customs value of the goods.
12. Amounts should be entered in Maltese liri.
List of circumstances which may give rise to repayment/remission (for guidance):
CUSTOMS (IMPLEMENTATION
OF PROVISIONS OF CUSTOMS CODE) g S.L.337.45 169
Article 236: No customs debt/amount fixed at a level higher than that lawfully
due;
Article 237: Goods entered in error for a customs procedure involving the
obligation to pay duties;
Article 238: Goods refused because they are defective or do not comply with the
contract;
Article 239: Special situations resulting from circumstances in which no deception
or obvious negligence may be attributed to the person concerned. Where the
application is based on Article 239 of the Code, the special situation must be
described in detail in an ANNEX to the application.
NB: Where the application is based on an Article of the Code other than Article
239 an explanatory ANNEX may likewise be attached where necessary. When an
ANNEX is attached, indicate the number of pages.
C. Technical provisions regarding the application form for repayment or
remission
1. The form on which the application for repayment or remission is to be drawn
up shall be printed on self copying white paper free of mechanical pulp and dressed
for writing purposes and shall weigh between 40 and 65 g/m 2 .
2. The size of the form shall be 210 x 297 mm.
3. The form shall bear an individual serial number.
4. The form shall be printed either in the English or Maltese language.
