CONTROL ON THE SALE OF COMMODITIES REGULATIONS

SUBSIDIARY LEGISLATION 117.15

CONTROL ON THE SALE OF COMMODITIES

REGULATIONS

19th April, 1972

LEGAL NOTICE 21 of 1972, as amended by Legal Notices 34 and 50 of

1972, 20 and 115 of 1973, 24 and 83 of 1974, 12 and 75 of 1975, 87 and

127 of 1976, 16, 33 and 135 of 1977, 6 of 1978, 86 and 108 of 1979, 56 of

1980, 62 and 66 of 1982, 54 of 1984, 7 of 1989, 89 of 1990, 61 and 125 of

1992, 192 of 1994, 104 of 1998, 295 of 2002 and 409 of 2007.

The title of these regulations is Control on the Sale of

Commodities Regulations.

(1) In these regulations, and in any order made thereunder,

unless the context otherwise requires -

"Act" means the Supplies and Services Act;

"commodity" means any article which is ordinarily sold to the

public, but does not include any produce which is cultivated or

grown locally by a farmer or is derived from local husbandry, nor

imported fruit or vegetables or imported fresh fruit;

"C.I.F. value" means and shall be deemed to have always meant

the C.I.F value in euro established for Customs purposes or for

import duty purposes;

"Director" means the Director of Trade and, to the extent he is so

authorised, includes any person authorised by the Director of Trade

to exercise any the powers and duties conferred on the Director by

these Regulations;

"fixed" in relation to a price, means fixed in accordance with

these Regulations;

"Gazette" means the Malta Government Gazette;

"Minister" means the Minister responsible for trade;

"purchase" means the acquisition of any commodity by any

onerous title but does not include the importation of goods from

any place abroad;

"sale" includes any disposal under any onerous title whatsoever;

"trader" includes any wholesaler, retailer, manufacturer, importer

or the person who deals or is concerned in or performs any act of

commerce relating to the sale, manufacture, exchange or disposal

of commodities.

(2) For the purposes of these regulations, the price of a

commodity shall be deemed to be unreasonable if -

(a) in respect of a sale by a local manufacturer or an

importer to a wholesaler, the profit exceeds ten per

cent of the ex-factory price or the import duty paid

cost of the commodity as provided in regulation

3(3)(i);

(b) in respect of a sale by a local manufacturer or an

importer to a retailer, the profit exceeds fifteen per

cent of the ex-factory price or the import duty paid

cost of the commodity as provided in regulation

3(3)(i);

(c) in respect of a sale by a wholesaler to a retailer, the

profit exceeds ten per cent of the price at which the

wholesaler purchased the commodity without the

addition of any charge;

(d) in respect of a sale by a retailer to a consumer, the

profit exceeds twenty per cent of the price at which the

retailer purchased the commodity without the addition

of any charge.

(1) The Director may, from time to time, by order in the

Gazette, fix the maximum price at which any commodity may be

sold.

(2) Prices may be so fixed by the Director using any one or

more of the following methods -

(a) fixing stated maximum prices;

(b) fixing maximum margins of profit;

(c) fixing maximum percentages of profit.

(3) In the case of orders made in accordance with paragraphs

(b) or (c) of sub-regulation (2) -

(i)

the profit of the importer shall be calculated on

the aggregate of the C.I.F. value and import duty

of the commodity, and no further addition, such

as charges for landing, transport, storage,

interest or any other charge whatsoever, shall be

made for the purpose of ascertaining the cost;

and

(ii) the profit of the retailer shall be calculated on

the price at which the commodity shall have

been purchased from the importer, wholesaler or

local manufacturer, without the addition of any

charge whatsoever.

For the purposes of paragraph (i) of this sub-regulation,

where the C.I.F. value is expressed in foreign currency, such value

shall be calculated at the rate determined daily by the Central Bank

of Malta for the computation of customs duty in accordance with

the Import Duties Act, on the date of importation.

(4) In respect of particular parcels or consignments of

commodities, the Director may, at his absolute discretion, fix the

maximum prices on the certificate of costing submitted by the

importer as provided in regulation 21.

The Director may by order, in respect of any commodity,

impose any such condition as he may deem fit with regard to its

sale, prohibition of sale or limitation of sale.

Repealed by Legal Notice 295 of 2002.

When the maximum price of any commodity is fixed in

accordance with the provisions of these regulations, the price

shown on the label referred to in regulation 5 shall not exceed such

(1) Every person shall, if so required by the Director or by

any member of the Police or by any person appointed under article

4 of the Act, or by any member of a body of persons so appointed,

produce on demand for examination any invoice or other document

(including books) in his possession, relating to the purchase,

manufacture, production or sale of any commodity.

(2) Certificates of costings and related invoices or documents

are to be retained by local manufacturers/importers/wholesalers/

retailers for a period of two years from their date of issue or until

the commodities to which they relate are sold, whichever is the

later.

(3) Where any invoice or other document produced for

examination as required by this regulation is false or misleading or

does not represent the true facts in any material respect, the person

so producing it and any person responsible for the drawing up of

such invoice or document or for the making of the false, misleading

or untrue entry therein, shall be guilty of an offence against these

regulations.

A trader in possession of stocks of any commodity which

he does not expose for sale in his place of business or keep therein

in sufficient quantities to meet the daily demands shall be deemed

to be hoarding or refusing to sell and shall be guilty of an offence

against these regulations.

(1) No trader shall store foodstuffs, or any other goods as

may be specified by the Director from time to time by order in the

Gazette, in any warehouse or other building or place unless he is in

possession of a special licence issued by the Director permitting

such storage therein.

(2) The Director may attach to any such licence any condition

or conditions as he may deem fit.

(3) Any person who in any way helps a trader to contravene

sub-regulation (1) shall be guilty of the same offence as the trader.

(1) Every importer and every wholesaler of a commodity

to which this regulation applies shall, on the first working day of

every month, not being a Saturday, deliver to the Director a return,

on such form as the Director may from time to time determine and

w h i c h s h a l l b e o b t a i n a b l e f r o m t h e o ff i c e o f t h e D i r e c t o r,

containing a correct and fair statement of the information specified

in sub-regulation (2).

CONTROL ON THE SALE OF COMMODITIES

(2)

The information required to be given by sub-regulation (1)

(i)

amounts imported or purchased during the

period between one return and the one

immediately following together with details of

suppliers and quantities purchased therefrom;

(ii) sales made during the said period;

(iii) stocks held at the end of the said period;

(iv) places of storage where such stocks are held and

the quantities of stocks held in each such place.

(3)

The commodities to which this regulation applies are -

Cattle on the hoof, imported

Beef, frozen

Pork, frozen

Canned Ham

Corned Beef

Luncheon Meat

Milk, tinned

Butter

Cheese -

Cheddar

Emmenthal

Edam

Canned fish -

Tuna

Mackerel

Rice

Fruit, imported -

Oranges

Bananas

Apples

Pears

Potatoes, imported

Sugar

Coffee

Tea

Soya bean oil, crude

Timber -

White Deal

Red Deal

Mahogany and substitutes

Cement.

(4)

For the purposes of this regulation stocks shall be deemed

to be held by a person if they are owned by him, or are in his

possession or under his control or within his power to dispose of or

deliver, even if they are so held for or on behalf of another person.

(1) No trader may purchase any commodity from any

person not known to him.

(2) No manufacturer, importer, or wholesaler shall, without

reasonable cause, refuse to sell in reasonable quantities to any

retailer any commodity required in connection with the latter’s

trade or business.

(3) No retailer shall without a reasonable cause refuse to sell

to any customer any commodity in quantities reasonably required

for the normal use and consumption of the customer or his

household or of his establishment or occupation or calling

Provided that the Commissioner of Police may exempt

from this provision in respect of any shop where wine, beer or

spirits are consumed on the premises, or of any restaurant, if he is

satisfied that such exemption should be granted to provide a higher

standard of amenities for tourists or other visitors or customers.

(4) Nothing in this regulation shall prevent any consumer from

making direct purchases from a wholesaler authorised so to sell by

the terms of his licence

(1) Any person licensed to sell groceries, who at any time

during any one year kept for sale one or more of the commodities to

which this regulation applies, shall be guilty of an offence if he at

any time thereafter fails to keep stocks of any of the said

commodities in sufficient quantities to meet reasonable demands of

customers.

(2) This regulation applies to such commodities as may from

time to time be specified by the Director by order in the Gazette.

No trader shall, in selling or offering for sale any

commodity, impose any condition in connection with such sale

other than the charging of the proper price and any such condition

as the Director may impose.

It shall not be lawful, except in accordance with a normal

trade practice in Malta, for a trader or a group of traders to enter or

induce another trader or traders to enter into any undertaking,

agreement, contract or other instrument which in any way purports

to limit, restrict or otherwise control the sale, the price and/or the

conditions of sale of any commodity or commodities.

Any trader who closes his shop or store without a just

cause shall be deemed to be refusing to sell and shall be guilty of an

offence against these regulations.

(1) Manufacturers, importers and wholesalers shall deliver

to every person purchasing any commodity a detailed receipted bill

or, as the case may be, an invoice, showing the number and date of

the applicable certificate of costings, if any, the date of the

transaction, the quantity sold, the price at which the sale has been

made and the maximum price at which the commodity may be sold

to the consumer, which prices shall not exceed the prices fixed or

allowed under these regulations.

(2) Manufacturers, importers and wholesalers shall keep a

book with proper records of the quantities of any commodity sold,

to whom it has been sold and the relative price.

(3) No retailer shall resell any commodity obtained from a

manufacturer, an importer or from a wholesaler unless he is in

possession of the invoice or receipted bill referred to in sub-

regulation (1).

(4) The retailer shall ascertain that the maximum price at which

any commodity is sold to the consumer does not exceed the price

fixed or allowed under these regulations, and for this purpose the

w h ol e s a l e r o r t h e i m po r t e r, a s t h e c a s e m a y b e , s h a l l i f s o

requested, produce to the retailer the relative documents for

perusal.

(1) The Director may at any time, either generally or in

one or more specific cases, either by order published in the Gazette

or by letter addressed to the trader to whom it refers, require any

trader to furnish him with such returns, documents and information

as the Director may specify, in such form and within such time as

he may specify in the request.

(2) Any trader who fails to make such return, or to furnish such

information or documents, or who makes the return or furnishes the

information or documents after the lapse of the specified time, or

who in making such return or in furnishing such information or

documents gives any information which is incorrect or misleading,

shall be guilty of an offence against these regulations.

(1) No person shall mark, offer for sale, sell or attempt to

sell any commodity above the maximum price fixed in respect of

that commodity or at an unreasonable price where no maximum

(2) When no maximum price is fixed, any extra charge made in

respect of any commodity shall be taken into account in

determining whether the total price charged is a reasonable price.

(3) In determining the reasonable price of any commodity,

when no maximum price has been fixed, no account shall be taken

of any sale, purchase or other transaction which contravenes any

regulation for the time being in force.

(4) Any profit exceeding the margin or percentage of profit

allowed under these regulations shall be conclusively deemed to

render the price charged or demanded unreasonable.

Any trader who has in his possession or under his control

any weight or measure or any weighing or measuring instrument or

equipment which is false or which does not represent or show the

true and real weight or measure, as the case may be, shall be guilty

of an offence against these regulations, and the court shall on

conviction, besides awarding the punishment applicable under

these regulations, order the forfeiture of any such weight or

measure or weighing or measuring instrument or equipment.

(1) Any trader whose licence has been suspended shall be

debarred from the exercise of his trade or business, either generally

or to such extent only as specified in the suspension order.

(2) There shall be affixed to the door of the place or places of

business of any trader whose licence has been suspended a notice to

the effect that such licence has been suspended and such notice

shall remain so affixed for the duration of the period of suspension.

(3) It shall not be lawful for any person to remove, cover, alter

or otherwise deface any notice of suspension so affixed.

(4) No person shall, whether directly or indirectly, supply any

trader whose licence has been suspended any commodity to which

the suspension relates, except for the personal use of such trader

and his family.

(1) No imported commodity shall be released by an

importer or wholesaler to any person before the relative certificate

of costings has been submitted to, and approved by, the Director.

(2) Certificates of costings shall be drawn up by the importer

and submitted to the Director not later than forty-eight hours after

the goods have been withdrawn out of Customs control, on forms

obtainable at the office of the Director

Provided that the Director may, in special cases, extend the

said period of forty-eight hours if he is satisfied that the importer

cannot comply with the provisions of this regulation within the said

time.

(3) The Director may in his discretion exempt any commodity

of commodities, or any class or classes of commodities, from the

requirements of this regulation.

(4) The provisions of this regulation shall not apply to any

commodity the maximum price of which is at the time of the

release fixed in the manner specified in regulation 3(2)(a).

(5) If any certificate of costings, or any document

accompanying it, submitted under this regulation is false,

misleading or otherwise incorrect in any material respect, the

person submitting it and any person responsible for the drawing up

thereof shall be guilty of an offence against these regulations.

(1) No locally manufactured commodity to which this

regulation applies shall be released by a manufacturer to any person

before the relative certificate of costings has been submitted to, and

approved by, the Director, in such form and manner as the Director

may require.

(2) This regulation shall apply to such commodities as are from

time to time specified by the Director by order published in the

Gazette.

Every retailer shall display prominently in his shop

premises any notice which the Director may ask him to display in

connection with the sale of any commodity.

At the door of every restaurant, with the exception of such

restaurants as from part of a hotel and which are not open to non-

residents, there shall be exhibited a menu and price list in such a

place and of such dimensions that they may be easily and clearly

read by members of the public without the need of entering therein

Provided that this provision shall not apply in respect of

commodities offered for sale but not intended for consumption

therein or thereat.

Any person authorised by the Director of Trade to exercise

any of the powers and duties conferred on the Director by these

Regulations may be required by the said Director to take the

following oath before a Commissioner for Oaths

I, ....................... solemnly swear/affirm that I shall

perform my functions in terms of the Sale of

Commodities (Control) Regulations, faithfully and to

the best of my ability, and shall not disclose to

unauthorised persons any information which comes to

my knowledge during the performance of the said

functions. (So help me God).

(1) Any person who contravenes or fails to comply with

any of these regulations or any order made under these regulations

or otherwise imposed by these regulations or any condition

attached to any licence issued under these regulations shall be

guilty of an offence against these regulations.

(2) Offences against these regulations shall be deemed to be

contraventions.

(3) The provisions of the Criminal Code relating to criminal

proceedings shall, subject as hereinafter stated, apply in respect of

proceedings for offences against these regulations

Provided that proceedings in respect of an offence against

these regulations may be commenced at any time within one year

from the commission of the offence.

(4) Any person guilty of an offence against these regulations

shall be liable -

(a) on a first conviction, to a fine (multa) of not less than

one hundred and sixteen euros and forty-seven cents

(116.47) but not exceeding five hundred and eighty-

two euros and thirty-four cents (582.34);

(b) on a second conviction, to a fine (multa) of not less

than two hundred and thirty-two euros and ninety-four

cents (232.94) but not exceeding one thousand and one

hundred and sixty-four euros and sixty-nine cents

(1,164.69) sohowever that if the second offence is

committed within twelve months from the first

conviction the offender shall be liable to the penalty

contained in paragraph (c) of this sub-regulation;

(c) on a further conviction, to a fine (multa) of two

thousand and three hundred and twenty-nine euros and

thirty-seven cents (2,329.37)

Provided that where the offence is one as is provided in

regulation 7(3) or in regulation 21(5), or consists in giving

information which is incorrect or misleading as provided in

regulation 17(2), the Court may, and if so requested by the

prosecution shall, in addition to any other punishment, sentence the

offender to imprisonment for a term of not less than ten days and

not exceeding six months.

(5) In addition to the punishments laid down in the foregoing

provisions of this regulation, the Court shall, on the demand of the

prosecution -

(a) in the case of a second conviction, order the

suspension of the offender’s licence for a period of not

less than one week and not more than three months;

and

(b) in the case of a further conviction, order the

cancellation of any licence held by the offender and

relating to any trade or business and of any licence

relating to the premises to which the offence relates.

(6) In every case of conviction for an offence against these

regulations, the Court may, and if so requested by the prosecution

shall, order the forfeiture of the commodities to which the offence

relates.

(7) The suspension of the licence ordered by the Court shall

have effect from such date, being a date within eight days from the

date of the sentence, as the prosecuting officer may specify orally

to the Court during the proceeding.

(8) The provisions of the Probation Act, shall not be applicable

i n r e s p e c t o f a n y o ff e n c e a g a i n s t t h e p r o v i s i o n s o f t h e s e

regulations.

(9) The court by which a person is found guilty of an offence

against these regulations consisting in the selling of any commodity

at an unreasonable price or at a price higher than the maximum

person to whom the commodity has been sold such portion of the

of the maximum price fixed, as the case may be, within such time

not exceeding one month, as the Court shall prescribe, under a

penalty of not less than four euros and sixty-six cents (4.66) for

each day of default in case of non-compliance with such order

within the time fixed, saving the right of the person to whom the

refund is due to recover the amount by civil process before the

competent Court, for which purpose the order for the refund made

by the Court of Magistrates shall constitute an executive title and

may be enforced by the creditor after two days following the

service on the debtor of a demand for payment made by a judicial

act.

(10) Where an offence against these regulations is committed

by an individual acting in the name, or on behalf or in the interest

of a partnership or an association or other body or group of persons,

or where action is taken against an individual by virtue of his

liability as a director, manager, secretary or other similar officer of

such body, association or group as provided in article 13 of the

Interpretation Act, or by virtue of any liability under article 10 of

the Act, and it results that an offence against these regulations has

occurred, the provisions of this regulation relating to the

suspension or cancellation of any licence held by the offender or

other person as aforesaid shall apply also to any licence held by or

in the name, or on behalf or in the interest of the partnership,

association or other body or group of persons of which the offender

or other person as aforesaid is a director, manager, secretary or

other officer or in whose name or interest or on whose behalf such

person was acting, and such licence shall equally be suspended or

cancelled accordingly.

Every trader shall take all such steps as are required to

ensure full compliance with all the provisions of these regulations;

and even where any contravention of or non-compliance with any

provision of these regulations may be attributed to any person in

the employment of such trader or in the exercise of any act or

function authorised or permitted by the trader, such trader shall

also be guilty of that offence unless he proves that he took all

reasonable steps to prevent the commission of the offence.

All prices lawfully fixed prior to the coming into force of

these regulations shall remain in force until varied or revoked

under these regulations, and shall be deemed to have been fixed

under the relative provision of these regulations.