Ammunition and firearm importers are up in arms over the government’s new excise duty that is to be imposed on importers as from 1 January.

Moreover, they are also faced with the AFM storage facility’s skyrocketing fees.

The “sector” is not limited to firearm dealers, it includes shooting range operators and those who practice target shooting as a sport.

Importers store an amount of their wares at the Armed Forces of Malta ammunition depot in Mosta. Importers are allowed to store up to 12,000 rounds of ammunition at their own premises. The rest of the consignment must be stored at the facilities.

Ammunition includes cartridges and other ammunition and projectiles and parts thereof classified under the HS Codes 9306 21, 9306 29, 9306 30 & 9306 90 of the Customs Nomenclature.

Importers who spoke to this newsroom said that this in itself was already creating a problem since the limit of only storing 12,000 rounds at their premises is far too little and therefore have to store the rest at Mosta against new fees to be introduced by the AFM.

The new fees include €0.5 cents per round per month for storage only.

But the most worrying issue for importers and target shooters is that the storage fees of ammunition used for target shooting are set to increase by €0.30c, and this for a €6 box containing ammunition for a basic .22LR rifle.

They explained that importers will have to face an additional €0.30c the following month since the fees are not set for a whole year but are set monthly.

“Given that all this is happening when the government is announcing the building of a national shooting range complex, and also marketing Malta as a destination for sports shooting tourism, makes it even more bizarre.

“Ammunition is already more expensive in Malta due to logistical reasons (particularly since the demise of Sea Malta),” they explained.

Shooting range

Outlining Labour’s proposals for sports during a visit to the Bidnija shooting range prior to the general election, Prime Minister Joseph Muscat had proposed the building of an international shooting range for Malta to be able to attract international tournaments all year round, making good use of its climate.

Shotgun shells have also gone up to one cent per round, and the fee is not only to be incurred by sport target shooters but also by hunters.

“Keeping ammunition at Fort Mosta is not a privilege that dealers have asked for; it is an imposition given that dealers are only allowed to keep 12,000 rounds on their premises.

“The figure of 12,000 is ridiculously low and exists only in Malta as civilian ammunition is perfectly safe to store, even in large quantities,” they explained.

“Submissions to the authorities to remove this limit have been made over the last years but to no avail,” importers said.

“The fee charged by the AFM has always been thought to be low. However the new rates effective from 1 January have skyrocketed.

“Since dealer stocks at Mosta normally last several months, the price will increase by 50% if they are kept stored for nine months. In the case of shotgun shells, the increase will double that.”

Importers and target shooters have asked if the Sports Secretariat was consulted about these changes.

Excise duty

On the excise duty, one of the government’s new fiscal measures, ammunition and arm dealers told this newsroom that they have written to the Finance Minister to air their concerns.

One dealer noted that shotgun cartridges not exceeding 24grams per cartridge have been excluded from this tax, presumably on the valid argument that these are used for target shooting, and rightly so.

However, pistol and rifle ammunition, including reloading components (even air-gun pellets), have not been excluded and instead a hefty duty of € 0.70c per kg will be imposed on any import.

“It is needless to say this will drastically raise the cost of ammunition for our rifle and pistol target shooting sport. We cannot understand the reasoning behind this absurd eco tax on pistol and rifle ammunition, which licensed target shooters only use for target shooting,” the arms dealer said.

“Therefore it is ammunition that is consumed strictly on shooting ranges and leaving a minimal environmental impact,” he added.
The question being raised is if clay pigeon target shooting cartridges (which do not exceed 24grams) have been excluded, then why has not rifle and pistol ammunition been treated the same?

“This new measure is likely to drive arm and ammunition imports underground,” an importer said.

Fees  for storage at the ammunition depot at Fort Mosta

The fees currently being charged by the AFM, including the computation system, for the items stored at Fort Mosta have been reviewed as follows. Review of charges with effect from 1 January, 2015.

Pyro Precursors                                -              0.5c per Kg

Shotgun Cartridges                         -              1c per cartridge

Ammunition                                       -              0.5c per round

Shotgun Powder                              -              35c per Kg

Detonators                                         -              1c per detonator

Detonating Cord                               -              1c per meter

Pyrotechnics                                      -              3c per piece

Ammonium Nitrate                         -              0.5c per Kg

ANFO                                                    -              1c per Kg