DUTY FREE SHOP REGULATIONS

DUTY FREE SHOP

SUBSIDIARY LEGISLATION 337.43

DUTY FREE SHOP REGULATIONS

15th November, 1991

LEGAL NOTICE 177 of 1991, as amended by Legal Notices 60 of 1994,

136 of 2002, 424 of 2007 and 313 of 2012; and Act XIII of 2015.

The title of these regulations is the Duty Free Shop

Regulations.

In these regulations, unless the context otherwise requires

"Comptroller" means the Comptroller of Customs and includes

any person authorised by him to act on his behalf for the purposes

of these regulations;

"duty free shop" means such facilities within precincts approved

by the Comptroller, which such facilities, in accordance with a

licence issued by the said Comptroller, are used to keep in stock

supplies of goods for sale to departing and arriving entitled

passengers within an air or sea port;

"entitled passengers" means persons about to board an air or sea

craft for a destination outside the European Union or persons

arriving from a place outside the European Union, but does not

include members of crews of such crafts except when travelling out

of uniform and/or as ordinary passengers and any other person who

in the opinion of the Comptroller is not entitled under the

Convention concerning Customs Facilities for Touring

Provided that the Comptroller may allow the purchase of duty

free goods by members of crews of such sea craft departing for a

destination outside Malta under such terms and conditions as he may

determine to ensure the necessary controls and the safeguarding of

revenue;;

"Malta" has the same meaning as is given by article 124 of the

Constitution;

"operator" means the person authorised by the Comptroller to

operate a duty free shop within an air or sea port;

"person" includes an association or body of persons.

(1) The operator shall be in possession of a licence issued

by the Comptroller indicating the goods which he may keep for sale

free of duty, which licence shall contain such conditions as the

Comptroller may from time to time deem fit to impose.

(2) Every such licence shall cease to be valid after the 31st day

of December immediately following the date of issue but may be

renewed by the Comptroller from year to year

Provided that it shall be lawful for the Comptroller to refuse

to grant a new licence, and at any time to revoke any licence granted or

renewed under these regulations.

(3)

A fee of one thousand and two hundred and eighty-one

DUTY FREE SHOP

euro and twenty cents (€1,281.20) per annum payable to the

Comptroller shall be charged on the grant and every renewal of any

licence issued under the provisions of these regulations

Provided that where it is shown satisfactorily that the

Police trading licence is less than one thousand and two hundred

and eighty-one euro and twenty cents (€1,281.20) per annum, the

amount of the fee chargeable under this regulation shall be

equivalent to the amount of the Police trading licence.

(1) The operator shall obtain his supplies for the duty free

shop from a Government Bonded Warehouse or from an appointed

bonded warehouse approved by the Minister responsible for

customs.

(2) The operator shall, immediately and without delay, inform

the proper officer of Customs by means of a delivery note of the

goods to be withdrawn from the warehouse and transferred to the

shop.

(3) The original of this document shall be kept by the officer

of Customs and at least one copy shall be kept by the operator.

(1) Duty free goods shall be sold to arriving or departing

entitled passengers.

(2)

(a) For each sale of duty free goods a receipt shall be

issued and shall have such particulars as the

Comptroller may direct.

(b) The receipt shall be attached to the special packing

containing the duty free goods.

(3) The operator shall sell goods to entitled departing

passengers from the duty free shop departures section only and to

entitled arriving passengers from the duty free shop arrivals section

only. Such sales are only to be made against the presentation of

documents mentioned in the licence as issued by the Comptroller.

(4) Goods sold to each individual entitled arriving passenger

shall not exceed the normal duty free concession allowed to

arriving passengers.

The Comptroller may direct that duty-free goods be

goods.suitably marked.

(1) Duty free goods shall be wrapped in a special packing,

such as a bag or carton, closed with a self-destructing seal so that

the packing cannot be opened without damage to the closure.

(2) The packing must bear in clear print instructions to the

passenger that the packet is not to be opened before the air or sea

craft leaves Malta in the case of departing entitled passengers and

that the packet is not to be opened before it is examined by

Customs in the case of arriving entitled passengers.

(1) The operator shall keep continuous records of additions

to and deductions from stock.

(2) These records shall be kept in accordance with good

accounting practice to the satisfaction of the Comptroller and in

DUTY FREE SHOP

such manner as to permit the drawing up of a stock position at any

given time.

(3) The Comptroller may check these records and carry out at

any time physical spot checks of the goods in stock.

(4) The operator shall without delay and whenever requested

hand over to the Comptroller the daily statements of addition to and

deductions from stock as well as a record of all sales receipts in

such form and order as he may direct.

(1) The operator shall deposit with the Comptroller a sum

equivalent to the amount of duty payable on the quantity of goods

stored in the duty free shop or shall give such alternative security

as the Comptroller may require.

(2) The amount of any security consisting in a monetary

deposit or in a bank guarantee shall be reconstituted to the original

amount whenever any part of it is deducted for the recovery of any

duty claimed under regulation 10 or any amount due under

regulation 11.

Where the Comptroller, on examination by him of the

goods in the duty free shop, finds that such goods are less in

quantity than those which should exist therein according to a proper

keeping of stock records as are referred to in regulation 8, he shall

inform the operator accordingly, and the latter shall forthwith pay

the amount of duty payable on the shortages.

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

any of these regulations shall be guilty of an offence and shall be

liable, on conviction by the Court of Magistrates as a Court of

Criminal Judicature, to punishments not exceeding a fine (multa) of

not more than four hundred and sixty-five euro and eighty-seven

cents (465.87) or an amount equal to three times any duties and, or

taxes on every article in respect of which the offence is committed,

whichever is the greater, or imprisonment for a term not exceeding

three months or to both such fine and such imprisonment.

(2) Any reference in sub-regulation (1) to a person shall be

deemed to be also a reference to any company, association or other

body of persons whether vested with legal personality or not.

(3) Where an offence under sub-regulation (1) is committed by

a company, an association or body of persons, every person who, at

the time of the commission of the offence was a director, manager,

secretary or other similar officer of such company, association or

body of persons or was purporting to act in such capacity shall be

guilty of that offence unless he proves that the offence was

committed without his knowledge and that he exercised all due

diligence to prevent the commission of the offence

Provided that no more than one person may be found guilty

of the same offence under this sub-regulation.

Any officer of Customs may, at any time, enter the duty

free shop for any purpose connected with these regulations.

For the purpose of any visit or inspection requested,

required or allowed under these regulations, the services of

DUTY FREE SHOP

Customs officers shall be given free of charge subject to the

approval of the Comptroller.