Speaking during an information meeting for food importers yesterday, Mr Vassallo said the new system will increase commercial activity in Malta and Gozo that will benefit the consumer as far as prices and choice are concerned.

He said that joining the EU meant cutting out a lot of the red tape involved in importing. “This will give rise to stiffer local competition. Being in the EU also means free movement of goods and merchandise. We will also witness changes in the import and export process,” he said.

Mr Vassallo said that exporting will also become easier because there will be no VAT charges on products going to other EU member states.

He explained that the import licences of today will be removed. The licence will only be needed to import goods that are not manufactured in the EU and, in fact, a legal notice is due to be published listing those products.

In addition, levy tax on food products will no longer be applicable. “The old ASYCUDA form for products originating in the EU will be replaced by the Intrastate form for the gathering of statistics and information,” he said.

For goods originating from outside the Union, the ASYCUDA form will remain in use.

Anyone who imports less than Lm300 worth of merchandise in 2004 will be exempted from completing the Intrastate form. Duty on products from the EU will no longer be paid, but products from

outside the EU will still be liable for

taxation.

Another important development is that Customs will no longer collect VAT before releasing merchandise imported from the Union. They will simply release the merchandise, once the Intrastate form is handed in, but will have the facility of carrying out random checks on importers.

In addition, the number of departments requiring Customs checks on imported items has been reduced to six from 29. These will include The Agriculture Department, Port Health, The Police Corps, The Armed Forces, the Drug Squad and the Censorship Department.

The authorities must also be notified between 24 and 48 hours before animals, animal products, plants and medicinals are imported. In addition, chemicals, waste and pesticides must be cleared with the authorities between 15 and 30 days prior to arrival and items that could be health hazards will still need clearance. These include detonators, fertilisers, weapons, detergents and any items containing borates.

Customs will also be carrying out checks to ensure that imported goods are, in fact, what they have been declared to be. The Consumer Department will be responsible for ensuring that imported products have CE marks and that perishables are within their date of expiry. Police will be responsible for ensuring weapons have permits, the Veterinary Department will be responsible for livestock while the Health Department will be responsible for foodstuffs.

Imports and exports to EU states will now be referred to as “transport goods” while goods from or to countries outside the EU will still be referred to as imports and exports. Meanwhile, VAT will now only be charged at consumer level.