Issue link: https://maltatoday.uberflip.com/i/720024
maltatoday, SUNDAY, 28 AUGUST 2016 9 JURGEN BALZAN THE government is in the process of creating a special enforcement unit to block goods from being brought into Malta illegally from Sicily. The business community has long called for further enforcement to block goods – ranging from food to clothing – which have flooded the market, creating an uneven playing field and hitting the com- petitiveness of a number of eco- nomic sectors. Local operators told MaltaToday that while Maltese businesses are heavily scrutinised and monitored by Italian authorities at Sicilian ports, the same is not happening in Malta, with serious doubts hang- ing on the legality of goods brought into Malta by Italian registered ve- hicles and a few Maltese importers. Concerned companies have shed doubt on whether some of the for- eign operators hold valid trading licences and whether taxes and ex- cise duties have been paid. The Malta Chamber has been lobbying for stricter controls on imports from Sicily which, it says, affect the large majority of its members and the Maltese busi- ness community, in particular dis- tributors, wholesalers, retailers and manufacturers producing for the local market. In comments to MaltaToday, a finance ministry spokesperson said that between January and June 2016, Customs officers carried out over 500 inspections during Sicily ferry operations. However, the spokesperson said that the ministry "is in the process of setting up a special joint enforce- ment unit to monitor and investi- gate the black economy, including activity originating from neigh- bouring countries such as Sicily." Goods entering from Sicily, whether by air or catamaran, qual- ify for free movement of goods and are treated as goods in free circula- tion, in accordance with EU regula- tions. The ministry said Customs of- ficers have the power to apply meaningful interventions to ensure compliance with legal provisions applicable at the national border, such as the payment of excise duty on goods which are not for per- sonal use and monitoring of goods which are subject to import prohi- bitions or restrictions. The ministry said it has no re- cords of how many vehicles car- rying goods have crossed over to Malta from Sicily as neither Eu- rostat nor the National Statistics Office hold data related to ferry crossings. The Malta Chamber has been concerned and vociferous on the abuse in free movement of goods since EU accession in 2004, irre- spective of their point of departure. Speaking to MaltaToday, a Malta Chamber spokesperson said that since joining the EU, Malta faced a new scenario in which merchan- dise trade became subject to mar- ket surveillance rather than border control, given that products being moved within the EU's single mar- ket are deemed to be in free circu- lation. "It is a situation which creates unjust competition and a non-level playing field among legitimate op- erators who operate above board and within the law and those who are operating under the radar. This is leading to a lower appetite for investment from operators in the sectors, eroding the competitive levels of these segments." The Chamber spokesperson added that this abuse is also affect- ing negatively the government's potential revenue, especially in view of potential fiscal evasion that might be occurring when products being brought into Malta are not being declared. "Given the lack of information and data there could be a situation in which health and safety proce- dures are not being adhered to. This in turn could be compromis- ing the quality of goods, especially food products we find on our ta- bles. There are also potential issues related to national security as cer- tain avenues could be used to by- pass normal procedures." The Chamber has for years been lobbying for a review of the proce- dures and legal provisions which it says are not serving the country well, "particularly when one notes the increased range of products that are subject to excise duty and increases in the rates of this tax." "The Chamber also proposes the introduction of a scanner to support non-intrusive customs surveillance at point of entry for all vessels carrying commercial and private vehicles, both accom- panied or non-accompanied, on arrival from other EU ports," the Chamber spokesperson said. News Special unit to be set up to block illegal entry of goods from Sicily Cars driving off a Virtù Ferries catamaran: the Chamber of Commerce has been concerned and vociferous on the abuse in free movement of goods since EU accession in 2004, irrespective of their point of departure among cars impounded in foreign plates clampdown Action against unregistered foreign cars has been going on since the beginning of the year, with the number of such cars having mushroomed. Abuses mainly happen for four reasons, including Mal- tese drivers who import cars from the United Kingdom and keep on driving it in Malta without registering it. Other owners may have a valid Mal- tese residency permit or iden- tity card, but still drive a for- eign-registered car. Another common occurrence is of foreign residents who overstay in Malta, including Italians and eastern Europeans. Officials have also, on sev- eral occasions, come across car dealers who abuse their trial run plates, usually over week- ends. In reply to a parliamentary question raised by PN MP Kristy Debono in January, Transport Minister Joe Mizzi confirmed that, by law, cars with foreign-registered plates can be driven in Malta for a temporary period of seven months, out of a 12-month period. Following this period, the cars have to be registered or exported. Motorists found to be in breach of this law have their car impounded.