Personal goods
- Gibraltar is entering a customs union arrangement with the EU Customs Union. This means that goods that are legal in the Schengen Zone are legal in Gibraltar, and vice versa.
- This means that there will be no Customs formalities as such on entry to or exit from Gibraltar, but HM Customs will be able to conduct any checks that they deep operationally necessary.
- For the first three years after the Treaty comes into effect, an allowance-basedsystem will be in place for the movement of personal goods into and out of Gibraltar:
- For arrivals to Gibraltar Airport, Port and Marinas: 430 euros worth of goods per person.
- For arrivals via the land frontier: 300 euros worth of goods per person.
- Standard quantitative restrictions will apply on cigarettes, alcohol and fuel.
- There will be a counter at the Gibraltar Airport where those travelling with goods above these thresholds can declare them.
- After the three years, you will be able to move any quantity of goods for persona use freely between Gibraltar and the Schengen area as long as they are legal in both.
- Further information is available in the Technical Notice – Temporary Allowances Regime.
Transitional arrangements for Commercial Goods
- There are special transitional arrangements for categories of goods that for specified periods of time after the application of the Treaty, will be exempt from the transit regime, compliance with EU standards and the payment of the transaction tax:
- Any goods that have already started their journey to Gibraltar before the application of the Treaty but have still not arrived are exempt for 2 months.
- Exemption certificates, which are granted under the regulation 8 of the integrated tariff regulations, are exempt for either the duration of the certificate or for three months after the entry into force of the treaty, whichever is the earliest.
- Goods which are already on the shelves in the shops in Gibraltar are exempt for three months.
- Goods which on the date of entry into force of the Treaty are held in either bonds or in temporary storage can continue to remain so for two months after the entry into force of the treaty or for 30 days after their entry into the temporary storage facility and the entry into force of treaty. The treaty rules will apply to release the goods after those periods.
- Further information is available in the Technical Notice – Business community: transitional arrangements for goods under the treaty.
Importing commercial goods to Gibraltar
- Gibraltar is entering a customs union arrangement with the EU Customs Union. This means that goods that are legal in the Schengen Zone are legal in Gibraltar, and vice versa.
- All goods sold in in Gibraltar will have to comply with EU standards, except for those covered by the transitional arrangements outlined in the Technical Notice – Business community: transitional arrangements for goods under the treaty.
- The regime applies to goods which are produced in either the EU or in Gibraltar, and there will be no customs duties or no quotas in the movement of goods between Gibraltar and the EU.
- A Designated Customs Post within the EU (the closest possible one to Gibraltar geographically) will clear any goods which are consigned to a Gibraltar importer or wholesaler in terms of compliance with the EU code.
- Every commercial importation into Gibraltar will have to clear Gibraltar Customs at the Commercial Gate in exactly the same way as it does today. • Wholesale importers will continue to carry out paperwork with both the Gibraltar and Schengen authorities in a very similar way as they have been used to.
- Those goods will then be consigned to HM Customs Gibraltar for the payment of the transaction tax and any excise duties, which will be charged on importation on the declared value of the goods.
- Goods placed in bond will be subject to the control of HM Customs:
- EU goods can be kept in bond (to be known as Customs Warehouses) for a maximum of 9 months
- Goods brought in under the inward processing and temporary admission procedures can be kept for a period of three months under those procedures which can be extended where justified.
- Goods are going to bond or any other of the special customs procedures, they will only be charged transaction tax and any excise duties once the goods are released to be put for sale in the market in Gibraltar.
Exporting commercial goods from Gibraltar to the European Union
- Gibraltar Customs will open the new T2GI procedure using the NCTS to cover the transit of the goods from Gibraltar to one of the Designated Customs Posts in the EU.
- The DCP will carry out its customs formalities, close the T2GI procedure and then open the standard T2 transit procedure for the movement of those goods from the DCP to the point of destination in the EU.
Special Customs procedures for non-EU goods
- Both Gibraltar Customs and the DCP will be responsible for the authorisation and supervision of the goods under the three special customs procedures.
- The DCP will levy any customs duties may be applicable to the non-EU goods, applying the EU common external tariff.
- The proceeds of the customs duties will be reverted back to Gibraltar.
- Non-EU goods may be kept in Customs Warehouse (bond) indefinitely.
- Non-Eu goods may be kept in an inward processing or temporary admission procedure for 24 months.
- Non-EU goods may be exported from Gibraltar by sea to countries and territories outside the EU directly from the port in Gibraltar without a physical presentation in the DCP.
The Transaction Tax
- The Transaction Tax is a sales tax which will be charged by HM Customs on importation on the declared value of the goods. Goods manufactured in Gibraltar will be charged when they leave the production site.
- Both the transaction tax and any excise duty will only apply where the goods are to be placed on the market for sale in Gibraltar.
- The whole of the Transaction Tax (and any excise duties) will stay in Gibraltar as an important source of public revenue.
- The Government has committed to reinvest the Transaction Tax in the implementation of the treaty, in the beautification of Gibraltar, and in the technological enhancements to Gibraltar’s security.
- This will be phased in over 3 years:
- Year one: 15%
- Year two: 16%
- Year three onwards: 17% or such other amount that is not lower than the lowest in the union in terms of VAT.
- There will be reduced rates of 5% for certain classes of goods including:
- goods normally intended for the use in agricultural production
- live equines
- live plants and other floricultural products
- children’s clothing and footwear
- children’s car seats
- bicycles
- works of arts
- tools and other equipment intended for use in rescue or first aid services.
- Some essential goods will not be subject to the transaction tax. This will protect the local economy from price rises on everyday essentials, including:
- Foodstuffs
- the supply of water
- LNG imported and used for the production of electricity
- The supply of electricity
- bunkering fuel
- ship supplies not being placed on the market in Gibraltar
- pharmaceutical products
- medical equipment and appliances
- library books, books and periodicals
- solar panels to be installed on and adjacent to private dwellings.
- Traders in Gibraltar will be able to return the value of the transaction tax to individuals who are not resident in the customs union who are returning to their home or state of origin.
- An independent consultative body will be established, appointed jointly by Gibraltar and Spain. Its role will be to assess the effect that the rates of taxation is having on market conditions in order to avoid significant actual distortions in Gibraltar and the Campo area.