Chapter 382

(4); "authorised and empowered" means an official that has an identity card issued by the Department of Customs and which shows the power to exercise the powers and duties given to him by the Commissioner by virtue of the provisions of the laws of Malta and the European Union; "authorised tax warehouse" means a place where excisable goods are produced, processed, held, received or dispatched under duty suspension arrangements by an authorised tax warehouse keeper in the course of his business, subject to certain conditions laid down by the Commissioner; "authorised tax warehouse keeper" means a natural or legal person authorised by the Commissioner, in the course of his business, to produce, process, hold, receive or dispatch excisable goods under a duty suspension arrangement in a authorised tax warehouse; "beer production" or "the production of beer" shall be taken to mean the process whereby beer is produced from the fermentation of the wort and any process whereby beer of lower density or specific gravity is derived from beer, whatever its origin, of a higher density or specific gravity. It shall also include the mixing of EXCISE DUTY beer with any non-alcoholic beverage and on either of which no excise duty had been paid such that the resulting admixture contains an actual alcoholic strength by volume exceeding 0.5% vol; "certified consignee" means a natural or legal person duly registered with the competent authorities of a Member State of destination to receive excisable goods, in the course of his business, which were released for consumption in the territory of one Member State and which are subsequently transferred to the territory of another Member State; "certified consignor" means a natural or legal person duly registered with the competent authorities of a Member State of dispatch to send excisable goods, in the course of his business, which were released for consumption in the territory of one Member State and which are subsequently transferred to the territory of another Member State; "the Community" or "territory of the Community" means the territories of the Member States; "competent authority" means a body or authority which has a supervisory or regulatory role in a Member State in relation to excisable goods; "the Commissioner" has the same meaning assigned to it in the Customs Ordinance; "computer" means any electronic device used for information storage or retrieval and includes a mobile phone or any other electronic means of information storage or retrieval; "Customs official" means any official of the Department of Customs as authorised and empowered by the Commissioner, by virtue of the relevant legislation and includes any other person having an express or implied authority to act for the said Commissioner in carrying out the provisions of this Act as authorised for this purpose by the applicable legislation; "customs suspensive procedure or arrangement" means any one of the special procedures as provided for under Regulation (EEC) No 2913/92 relating to the customs supervision to which nonCommunity goods are subjected upon their entry into the Community customs territory, temporary storage, free zones or free warehouses, as well as any of the arrangements referred to in Article 84

(1)(a) of that Regulation; "Customs tariff" means the Common Customs Tariff adopted by the European Union; "duty" and "excise duty" mean the duty imposed by this Act; "duty suspension arrangement" means a tax arrangement applied to the production, processing, holding, storage or movement of excisable goods not covered by a customs suspensive procedure or arrangement, excise duty being suspended; "endangered duty" means the difference between all the duty due on the goods and the duty which has been paid on the same goods; "excise duty due" means all the excise duty due on the goods and EXCISE DUTY includes also the excise duty which has already been paid on those goods; "excisable goods" means any goods of a class or description as listed in the First Schedule, excluding tobacco which is not listed in the Third Schedule; "importation of excisable goods" means the entry into the territory of the Community of excisable goods unless the goods upon their entry into the Community are placed under a customs suspensive procedure or arrangement, as well as their release from a customs suspensive procedure or arrangement; "independent small brewery" and "birrerija indipendenti u żgħira" mean, for the purpose of reduced rates, a brewery which is legally and economically independent of any other brewery, which uses premises situated physically apart from those of any other brewery and does not operate under licence. However, where two

(2)or more small breweries cooperate, and their combined annual production does not exceed two hundred thousand (200,000) hectolitre, those breweries may be treated as a single independent small brewery; "independent small wine producer" and "produttur tal-inbid indipendenti u żgħir" mean, for the purpose of reduced rates, a wine producer which is legally and economically independent of any other wine producer, which uses premises situated physically apart from those of any other wine producer and does not operate under licence. However, where two

(2)or more small wine producers cooperate, and their combined annual production does not exceed one thousand (1,000) hectolitre or twenty thousand (20,000) hectolitre, as appropriate, those wine producers may be treated as a single independent small wine producer; "information in a non-legible form" means information that needs to be deciphered before being understood; "Member State" and "territory of a Member State" means the territory of each Member State of the Community to which the Treaty is applicable, in accordance with Article 299 thereof, with the exception of third territories; "the Minister" means the Minister responsible for customs; "nicotine pouch" means nicotine containing products intended for the intake of nicotine into the human body, for oral application, excluding products for inhalation, and products intended to assist tobacco use cessation classified under HS Code 2404919000; "non-alcoholic beverage" means a non-alcoholic beverage falling under heading 22.02 of the Customs Tariff; "records" means any books, accounts, documents or other recorded information, including information in a computer or information in other non-legible form; "registered consignee" means a natural or legal person authorised by the Commissioner, in the course of his business and under the conditions fixed by the Commissioner, to receive excisable goods moving under a duty suspension arrangement from another Member EXCISE DUTY State; "registered consignor" means a natural or legal person authorised by the Commissioner, in the course of his business and under the conditions fixed by the Commissioner, to only dispatch goods subject to excise duty which are subject to duty suspension upon their release for free circulation in accordance with Article 201 of Regulation (EU) No. 952/2013; "registered merchant" means a physical or legal person authorised by the Commissioner to dispatch and, or receive goods subject to excise duty as mentioned in Schedule Five A, Five B, Five C, Five D, Five E, Five F, Five G and Five H; "release for consumption" means: (a) the release of excisable goods, including irregular release, from a duty suspension arrangement; (b) the holding of excisable goods outside a duty suspension arrangement where excise duty has not been levied pursuant to the applicable provisions of Community law and national legislation; (c) the production of excisable goods, including irregular production, outside a duty suspension arrangement; (d) the entry into Malta of excisable goods, including irregular entry into Malta, unless the excisable goods are placed, immediately upon entry, under a duty suspension arrangement; L.S. 315.10. "smokeless tobacco product" means a tobacco product not involving a combustion process, including heated tobacco products as defined in regulation 2 of the Manufacture, Presentation and Sale of Tobacco and Related Products Regulations and herbal products not involving a combustion process but excluding chewing tobacco, nasal tobacco or tobacco for oral use; "third country" means any State or territory to which the Treaty is not applicable; "the T reaty" means the T reaty establishing the European Community; "vessel or ship" includes any open boat, open pontoon or other undecked vessel or ship, as well as any decked vessel or ship. Impositions of excise duty. Amended by: XIV. 1998.2; IX. 2001.4; XXII. 2011.5; VII.2022.59; III.2026.46. 3.

(1)There shall be charged and levied by the Commissioner on account of the Government an excise duty on excisable goods.

(2)The duty payable on excisable goods shall be at the rate specified in the relevant Schedules to this Act which shall be in the English language only: Provided that the Minister may from time to time order the publication of the said relevant Schedules in the Maltese language and in any such case, if there is any conflict between the Maltese and English text of the Schedules, the English text shall prevail.

(3)The duty payable on excisable goods according to this Act shall also be payable on goods which are produced, imported and EXCISE DUTY placed on the market under any description of excisable goods, notwithstanding that such goods do not have the specifications and qualities required by law so as to have such description, and all the provisions of this Act and of any regulations made thereunder shall apply to such goods in the same manner as if they were the excisable goods as which they are described.

(4)(

1. a)Goods in small consignments of a non-commercial nature sent from third countries by private persons to other private persons in Malta are exempt from excise duty. (
2. b)For the purposes of paragraph (a): (
3. i)"goods" means excisable goods except: - cigarettes, cigarillos, cigars and smoking tobacco; and distilled beverages and spirits of alcoholic strength which exceeds twenty-two per-cent (22%) vol., undenatured ethyl alcohol of eighty per-cent (80%) vol. and more, distilled beverages and spirits, and aperatives based on wine or alcohol, tafia, saké or similar drinks of alcoholic strength of twenty-two per-cent (22%) vol. or less, sparkling wines, fortified wines or still wines; (
4. ii)"small consignments of non-commercial means consignments which: (
5. a)(
6. b)(
7. c)(
8. d)nature" are of an occasional nature; consist only of goods which are intended for personal use by the consignee or his family, and their nature and quantity do not indicate that they are being imported for any commercial purposes; contain goods with a total value which does not exceed forty-five euro (€45); are sent by a sender to the consignee, without any form of payment.

(5)(a) Notwithstanding the provisions of sub-article

(1)and the rates specified in the Fifth Schedule, no excise duty shall be charged or levied on non-harmonised excisable goods listed in Schedules 5A to 5H of the Fifth Schedule which are imported in consignments, where the intrinsic value thereof does not exceed one hundred and fifty euro (€150), provided that all the following conditions are satisfied: (

1. i)the consignment is imported by means of postal services or by an authorised courier operator; (
2. ii)the consignee is a natural person not acting in the course of any business, trade, profession or vocation; (iii) the goods are intended solely for the private use of the consignee or members of his family and neither the EXCISE DUTY nature and the quantity of the goods nor any document relating thereto indicates any commercial purpose; (
3. iv)the consignment is of an occasional nature and does not form part of a series of consignments which, taken together, indicate any commercial intent; and (
4. v)the goods are not subject to any prohibitions or restrictions under European Union law. (
5. b)For the purposes of paragraph (a): (
6. i)"intrinsic value" means the value of the goods determined in accordance with the customs valuation rules established in Regulation (EC) No. 1186/2009, excluding the cost of transport and insurance; (
7. ii)"postal services" or "authorised courier operator" includes any postal service and any private courier authorised to effect the clearance of low-value consignments in Malta; (iii) compliance with the conditions in paragraph (
8. a)shall be verified by the Commissioner on the basis of the customs declaration, including any simplified declaration, the particulars of the consignee and consignor and such other information or checks as the Commissioner may deem as applicable. (
9. c)The exemption provided under this sub-article shall be without prejudice to sub-article

(4)in respect of small consignments of a non-commercial nature sent by natural persons to other natural persons from any third country. (d) The Minister may make regulations for the purpose of ensuring the correct implementation of this sub-article, including further conditions, procedures or forms of declaration required for the application of the exemption provided in this sub-article. Tax point. Substituted by: II. 2002.10. Amended by: XIII. 2010.3; XXII. 2011.5; III.2026.47. 4.

(1)Excisable goods shall be subject to excise duty at the time of their production, or where applicable of their extraction, or of their arrival into Malta, provided that where excisable goods are placed under a customs procedure on arrival into Malta, entry shall be deemed to take place when they leave the customs procedure.

(2)Excise duty shall become chargeable at the time of release for consumption or when shortages are recorded.

(3)The chargeable conditions and rate of excise duty to be adopted shall be those in force on the date on which release for consumption takes place or shortages are recorded.

(4)Repealed by III.2026.47.

(5)For the purpose of this article where excisable goods are moved under a duty suspension arrangement within the territory of the Community, including where the goods are moved via a third country or a third territory, the time of release for consumption shall be considered to be: (a) when a registered consignee receives the excisable goods from a authorised tax warehouse; EXCISE DUTY (b) when a consignee referred to in article 14

(2)receives excisable goods from a authorised tax warehouse which have been dispatched from another Member State.

(6)Where excisable goods are imported into Malta and the Commissioner allows such goods to be moved under a duty suspension arrangement according to the conditions laid down by him to be delivered to a place which has been designated by an authorised tax warehouse keeper or registered consignee, the time of release for consumption shall be the time of receipt of the excisable goods at the place which has been approved by the Commissioner: Provided that this shall not apply when a registered consignee receives goods on an occasional basis.

(7)For the purpose of this article, the total destruction or irretrievable loss of excisable goods under a duty suspension agreement, as a result of the actual nature of the goods, of unforeseeable circumstances, as a result of force majeure, or as a consequence of an authorisation granted by the Commissioner, shall not be considered as a release for consumption.

(8)The chargeable conditions and rate of excise duty to be adopted shall be those in force on the date on which release for consumption takes place.

1. Save as otherwise provided for in this Act or as may be prescribed by regulations thereunder, no goods which are subject to duty shall be released for consumption unless the duty on the said goods has been paid. Goods not to be released before the payment of the duty. Substituted by: II. 2002.
3. Any excise duty which is proved to the satisfaction of the Commissioner to have been paid on goods which are used as ingredients or components in the production of excisable goods produced in Malta shall be credited against the duty payable on the goods produced, provided that the said credit shall not exceed the duty on the goods produced. Duty on ingredients to be credited. Amended by: XXII. 2011.
5. The duty imposed under this Act shall be without prejudice to any other duty or tax imposed by any other law. Savings. 8.

(1)persons: Payment of duty. Amended by: II. 2002.12; XIII. 2010.4; XXII. 2011.5; XII.2023.45. Duty on excisable goods shall be paid by the following (

1. a)in relation to the departure of excisable goods, including irregular departure from a duty suspension arrangement, duty shall be paid: (
2. i)by the authorised tax warehouse keeper, the registered consignee or any other person releasing the excisable goods or on whose behalf the excisable goods are released from the duty suspension arrangement and, in the case of irregular departure from the authorised tax warehouse, by any other person involved in that departure; EXCISE DUTY (
3. ii)in the case of an irregularity during a movement of excisable goods under a duty suspension arrangement as indicated in article 8A, by the authorised tax warehouse keeper, the registered consignor or any other person who guaranteed the payment in accordance with article 10 and any person who participated in the irregular departure and who was aware or who should reasonably have been aware of the irregular nature of the departure; (
4. b)in relation to the holding or storage of excisable goods outside a duty suspension arrangement where the excise duty has not been levied pursuant to the applicable provisions of this Act, by the person holding or storing the excisable goods and any other person involved in the holding or storing of the excisable goods; (
5. c)in relation to the production of excisable goods, including irregular production, outside a duty suspension arrangement, by the person producing the excisable goods and, in the case of irregular production, by any other person involved in their production; (
6. d)in relation to the importation of excisable goods, including irregular importation, unless the excisable goods are placed, immediately upon importation, under a duty suspension arrangement, by the person who declares the excisable goods or on whose behalf they are declared upon importation and, in the case of irregular importation, by any other person involved in the importation.

(2)Where two or more persons are liable for the payment of the duty in terms of sub-article

(1)their liability shall be joint and several.

(3)The prescriptive time period for the Commissioner to notify the debtor with a final decision as provided for in this Act or to initiate judicial proceedings in any other way against him shall be of six

(6)years from the date when the excise duty becomes payable as provided for in this Act. Irregularity. Added by: XIII. 2010.5. Amended by: XXII. 2011.5. 8A.

(1)When an irregularity occurs in relation to excisable goods which are moving under a duty suspension arrangement from a Member State to Malta or when excisable goods are in transit and pass through Malta, which irregularity gives rise to their release for consumption in accordance with article 4

(4)(a), the Commissioner, on detecting such an irregularity, shall inform the competent authorities of the Member State of dispatch.

(2)When it is possible for the Commissioner to determine where the irregularity under sub-article

(1)occurred, the release for consumption shall take place in the Member State where the irregularity occurred.

(3)When it is not possible for the Commissioner to determine EXCISE DUTY where the irregularity under sub-article

(1)occurred, it shall be presumed that it has occurred in Malta.

(4)When excisable goods moving under a duty suspension arrangement, notwithstanding that they have Malta as their destination, fail to arrive in Malta, and during the movement no irregu lari ty giv ing rise to th eir rel ease fo r consum pt ion in accordance with article 4

(4)(a) has been detected, an irregularity shall be deemed to have occurred in the Member State of dispatch at the time when the movement began, unless, within a period of four months from when the movement began, evidence is provided to the satisfaction of the Member State of dispatch of the end of the movement, or of the place where the irregularity occurred: Provided that where the person who guaranteed payment in accordance with article 10 has not been, or could not have been, informed that the goods have not arrived at their destination, a period of one month from the date of communication of this information by the Commissioner shall be granted to enable him to provide evidence of the end of movement, or of the place where the irregularity occurred.

(5)If before the expiry of a period of three years from the date on which the movement began, the Commissioner ascertains that the irregularity referred to in sub-article

(4)actually occurred in Malta, he shall inform the competent authorities of the Member State where the excise duty was levied, which shall reimburse or remit it as soon as evidence of the levying of the excise duty in the other Member State has been provided.

(6)For the purpose of this article: (a) the movement of excisable goods under a duty suspension arrangement shall end, in the cases referred to in article 8B

(1)(a)(i), (ii), and (iv) and article 8B

(1)(b) when the consignee has taken delivery of the excisable goods and, in the cases referred to in article 8B

(1)(a)(iii) when the goods have left the territory of the Community; (b) the movement of excisable goods under a duty suspension arrangement shall begin in the cases referred to in article 8B

(1)(a), when the excisable goods leave the authorised tax warehouse of dispatch, and in the cases referred to article 8B

(1)(

1. b)upon their release for free circulation in accordance with Article 201 of Regulation (EU) No. 952/2013; (
2. c)"irregularity" means a situation occurring during a movement of excisable goods under a duty suspension arrangement, other than the one referred to in article 14

(5), due to which a movement, or a part of a movement of excisable goods, has not ended in terms of paragraph (a) of this sub-article. Movement of excisable goods under a suspension of excise duty. Added by: XIII. 2010.5. Amended by: XXII. 2011.5. EXCISE DUTY 8B.

(1)Excisable goods may be moved under a duty suspension arrangement within the territory of the Community, including where the goods are moved via a third country or a third territory: (

1. a)from a authorised tax warehouse to: (
2. i)another authorised tax warehouse; (
3. ii)a registered consignee; (iii) the place where the excisable goods leave the territory of the Community; (
4. iv)a consignee referred to in article 14

(2), where the goods are dispatched from another Member State; (b) from the place of importation to any of the destinations referred to in paragraph (a), where the goods are dispatched by a registered consignor: Provided that for the purposes of this paragraph, "place of importation" means the place where the goods are when they are released for free circulation in accordance with Article 79 of Regulation (EEC) No 2913/92.

(2)By way of derogation from sub-article

(1)(a)(

1. i)and (
2. ii)and (
3. b)hereof, and except in the situations referred to in the proviso to article 10A

(3), the Commissioner may, under the conditions which he lays down, allow excisable goods to be moved under a duty suspension arrangement to a place of direct delivery, where that place has been designated by the authorised tax warehouse keeper or by the registered consignee. The authorised tax warehouse keeper or the registered consignee shall remain responsible for submitting the report of receipt referred to in regulation 10 to Part H of the Sixth Schedule.

(3)Sub-articles

(1)and

(2)shall also apply to movements of excisable goods at a zero rate which have not been released for consumption.

(4)A movement of excisable goods shall be considered to take place under a duty suspension arrangement only if it takes place under cover of an electronic administrative document process in accordance with the procedure contemplated under Part H of the Sixth Schedule. Production, processing and holding of excisable goods. Amended by: IX. 2001.5. Substituted by: II. 2002.13. Amended by: XXII. 2011.5; XII.2023.46. 9.

(1)The Commissioner shall determine the rules concerning the production, processing, holding and storage of products subject to excise duty, subject to the provisions of the relative regulations.

(2)Production, processing, holding and storage of products subject to excise duty, where the latter has not been paid, shall take place in a authorised tax warehouse.

(3)(

1. a)The opening and operation of authorised tax warehouses shall be subject to authorization from the Commissioner. (
2. b)Applications for the registration of authorised tax warehouses shall be made to the Commissioner in such manner, and shall contain such information and be EXCISE DUTY accompanied by such documents, plans and certificates, as may be prescribed. (
3. c)A certificate of registration shall be issued in such circumstances and in such a manner, and shall be valid for such period and subject to such conditions, as may be prescribed. (
4. d)A separate registration shall be required in respect of each authorised tax warehouse.

(4)Subject to any regulations made under this Act, sub-article

(2)shall not apply to production of excisable goods produced merely by reason of: (

1. a)operations during which small and negligible quantities of excisable goods as may be prescribed, are obtained incidentally; (
2. b)production of home made beer, wine and other fermented beverages not produced for commercial purposes; and (
3. c)such other operations as may be prescribed. 10.

(1)An authorized warehouse keeper shall be required to: (

1. a)provide a guarantee, if necessary, to cover production, processing, holding, storage and a compulsory guarantee to cover movement, the conditions for which shall be set by the Commissioner; (
2. b)comply with the requirements laid down by the Commissioner; (
3. c)keep, for each authorised tax warehouse correct and precise, accounts of stock and product movements which truly reflect the actual stock that is physically present in the authorised tax warehouse; (
4. d)produce the products whenever so required; and (
5. e)consent to all monitoring and stock checks: Provided that the Commissioner, under the conditions set by him, may allow the guarantee referred in paragraph (
6. a)to be provided by the transporter or carrier, the registered consignor, the owner of the excisable goods, the consignee, or jointly by two or more of the said persons herein mentioned.

(2)The guarantee mentioned in the previous sub-article shall be valid throughout the Community and its detailed rules shall be laid down by the Commissioner.

(3)The Commissioner may waive the obligation to provide a guarantee in respect of the following movements of excisable goods under a duty suspension arrangement: (

1. a)movements which take place entirely in Malta; (
2. b)where the other Member States concerned so agree, movements of energy products within the Community by sea or by fixed pipeline. Records and statements. Substituted by: II. 2002.14. Amended by: XIII. 2010.6; XXII. 2011.5; VII. 2018.66; XII.2023.47. Consignee may be any professional trader. Added by: II. 2001.15. Amended by: XIII. 2010.7; XXII. 2011.5; VII.2018.67. EXCISE DUTY 10A.

(1)Notwithstanding the provisions of article 10, the consignee shall be a professional trader without authorized warehouse keeper status. This trader may, in the course of his business, receive products subject to excise duty under duty-suspension arrangements. However, he may neither hold nor dispatch such products under excise duty-suspension arrangements.

(2)Such trader shall, before beginning to receive the goods, request to be registered by the Commissioner.

(3)A registered consignee shall comply with the following requirements: (

1. a)before dispatch of the excisable goods, guarantee payment of excise duty under the conditions fixed by the Commissioner; (
2. b)at the end of the transaction, enter in his accounts excisable goods received under a duty suspension arrangement; (
3. c)consent to all monitoring and stock checks enabling the Commissioner to verify that the goods have actually been received: Provided that where a registered consignee receives excisable goods only occasionally, the authorisation granted by the Commissioner shall be limited to a specified quantity of excisable goods, a single registered consignor and a specified period of time or to a single transaction. The Commissioner may limit the authorisation to one transaction. Registered consignor. Added by: VII.2018.68. 10B.

(1)Notwithstanding the provisions of article 10, a registered consignor may be a professional trader without the status of authorized warehouse keeper. The registered consignor may, in the course of his business, dispatch goods which are under duty suspension or goods which are in free circulation.

(2)The registered consignor shall, before starting to dispatch the objects, request to be registered by the Commissioner.

(3)Registered requirements: consignor shall observe the following (

1. a)before dispatch of the excisable goods, he shall guarantee the payment of excise duty, under the conditions fixed by the Commissioner; (
2. b)at the end of the transaction, he shall enter into his accounts excisable goods dispatched under an excise duty suspension arrangement; (
3. c)consent to all monitoring and stock checks enabling the Commissioner to verify that the goods have actually been dispatched: Provided that where a registered consignor dispatches excisable goods only occasionally, the authorisation granted by the Commissioner shall be limited to a specified quantity of excisable goods, a single consignor and a specified period of time or a single EXCISE DUTY transaction. The Commissioner may limit the authorisation to one transaction. 10C.

(1)Notwithstanding the provisions of article 10, the registered merchant shall be a professional trader without the status of authorised warehouse keeper. This trader may, in the course of his business, dispatch and, or receive goods subject to excise duty, mentioned in Part B of the Fourth Schedule and, in Schedule Five A, Five B, Five C, Five D, Five E, Five F, Five G, Five H and Five I. Registered merchant. Added by: VII.2018.68. Amended by: VIII.2020.61; IX.2025.51.

(2)Such a merchant shall, before starting to dispatch or to receive the objects, request to be registered by the Commissioner.

(3)A registered requirements: trader must observe the following (

1. a)before dispatch or receipt of the excisable goods, he shall guarantee the payment of excise duty, under the conditions fixed by the Commissioner; (
2. b)at the end of the transaction, he shall enter into his accounts the excisable goods that would have been received or dispatched; (
3. c)consent to all monitoring and stock checks enabling the Commissioner to verify that the goods have actually been dispatched or received: Provided that where a registered merchant receives excisable goods only occasionally, the authorisation granted by the Commissioner shall be limited to a specified quantity of excisable goods, a single consignor and a specified period of time or a single transaction. The Commissioner may limit the authorisation to one transaction. 11. The Commissioner may suspend or revoke the registration of any authorised tax warehouse where the person in charge thereof fails to comply with the provisions of article 10, and the provisions of sub-article

(3),

(4)and

(5)of article 38, shall mutatis mutandis apply to any such suspension. Suspension or revocation of registration. Amended by: II. 2002.16; XXII. 2011.5. 12.

(1)Any tanks, receptacles or other containers used in a authorised tax warehouse for the production or storage of excisable goods shall conform with any specifications as may be prescribed or as may be approved for the purpose by the Commissioner. Marking of storage tanks and vessels and of excisable goods. Amended by: II. 2002.17; XXII. 2011.5.

(2)The Minister may make regulations for the colouring and for the marking of excisable goods for the purpose of ensuring the correct and straightforward application of the provisions of this Act and of preventing any evasion, avoidance or abuse. Regulations. Amended by: VII. 1996.2; XXV. 1997.3; XIV. 1998.3; V. 1999.2; IX. 2001.6; II. 2002.18; II. 2005.37; L.N. 425 of 2007; I. 2010.55; XIII. 2010.8; XXII. 2011.5; VII.2022.60; XXXV.2023.39. EXCISE DUTY 13.

(1)The Minister may make, and when made, revoke or amend regulations for the better carrying out of the provisions of this Act, and without prejudice to the generality of the foregoing, such regulations may provide for any of the following: (

1. a)the time or times within which, the place where, and the manner in which, excise duty in accordance with this Act is to be paid; (
2. b)the manner in which excisable goods may be produced; (
3. c)the circumstances under which excisable goods not fit for consumption or unmarketable are destroyed without the payment of duty, or with refund of duty; (
4. d)the providing of a security by an authorised tax warehouse keeper in a form acceptable to the Commissioner, in order to safeguard the payment of excise duty payable under this Act, and the manner in which such security may be called in; (
5. da)the extension of all or part of the provisions of this Act, including any regulations thereunder to any exclusive economic zone area or environment protection area as defined in Exclusive Economic Zone Act and prescribing or otherwise providing for excise duty matters in respect of an exclusive economic zone area or environment protection area as defined in Exclusive Economic Zone Act; (
6. e)the fees that may be payable to the Commissioner for any services provided by him or for the registration of any authorised tax warehouse under this Act; (
7. f)anything that may be prescribed in accordance with this Act; (
8. g)the procedure to be followed on a movement of excisable goods under suspension of excise duty; and (
9. h)guide levels to determine the quantity of an article subject to excise duty.

(2)Any regulations made under sub-article

(1)may provide that any person who contravenes or fails to comply with any of those regulations shall be guilty of an offence, and such regulations may provide for the penalty of a fine (multa) not exceeding twentyfive thousand euro (€25,000) or an amount equal to three times the duty payable on any goods in respect of which the offence is committed, whichever shall be the higher, or to imprisonment for a term not exceeding six months, or to both such fine and imprisonment, in respect of any conviction.

(3)Where any regulations made under sub-article

(1)do not provide for any punishment, any person who contravenes or fails to comply with any of those regulations shall be liable, on conviction, t o a f i n e ( m u l t a ) n o t ex ce e d i n g t w e n t y - f i v e t h o u s a n d e u r o (€25,000) or an amount equal to three times the duty payable on any goods in respect of which the offence is committed, whichever shall be the higher. EXCISE DUTY

(4)The regulations contained in the Sixth Schedule to this Act shall be deemed to have been made under the powers contained under sub-article

(1)and may be revoked and amended accordingly.

(5)The Minister may by regulations published in the Gazette add, amend, revoke or substitute the Schedules to this Act, or any of them, as may become necessary from time to time, and such amendments may also be made with an aim to ensure that the Customs Tariff Headings under which the respective excisable goods are classified conform with the Harmonized Commodity Description and Coding System 1983, as adopted and published by the Customs Co-operation Council: Provided that this authority shall not extend to cases in which its application results in a duty being prescribed in respect of any new article or in an increase in the rate of duty prescribed in respect of any article. 14.

(1)No duty shall be liable on excisable goods (a) produced in the circumstances specified in article 9

(4); and (b) so exempted in terms of the relevant Schedules to this Act. Exemptions. Amended by: IX. 2001.7; II. 2002.19; XIII. 2010.9; XXII. 2011.5.

(2)It shall be lawful for the Minister to exempt the following from the payment of excise duty under such conditions and restrictions as he may deem fit to impose: (

1. a)excisable goods on which the granting of such exemption is necessary, but to the extent only that it is so necessary, for the implementation of any international commitment entered into by the Government of Malta; (
2. b)excisable goods where such exemption is granted in favour of a person or a class of persons who, in accordance with, or by an order made under, the provisions of the Diplomatic Immunities and Privileges Act, is exempt from customs duties on articles intended for the personal use of such person or persons; (
3. c)excisable goods where such exemption is deemed to be justifiable by the Minister; (
4. d)excisable goods intended to be used by international organizations recognized by the host Member State, and by members of such organizations, within the limits and under the conditions laid down by the international conventions establishing such organizations or by headquarters agreements; (
5. e)excisable goods intended to be used for consumption under an agreement concluded with third countries or international organizations provided that such an agreement is allowed or authorised with regard to an exemption from value added tax: EXCISE DUTY Provided that excisable goods moving under a duty suspension arrangement to a person referred to in this sub-article shall be accompanied by an exemption certificate in the form and content established by the Commissioner.

(3)The Minister shall have the power by order to exempt from the payment of excise duty any excisable goods which are imported or produced in Malta for the purpose of being used as ingredients or components in the production of excisable goods. Such exemption may be made subject to such conditions as the Minister may deem fit to impose.

(4)No excise duty shall be payable on excisable goods released for export as merchandise, shipped as stores or taken as fuel to power the engines of ships or aircraft on any foreign bound ship or aircraft provided this is done directly from a authorised tax warehouse.

(5)No excise duty shall be liable on excisable goods which have not been released by the authorised tax warehouse keeper for consumption, provided such excisable goods are destroyed under customs supervision by written permission of and under the conditions laid down by the Commissioner. Excisable goods acquired by a private individual. Added by: XIII. 2010.10. Amended by: XXII. 2011.5. 14A.

(1)Excise duty on excisable goods acquired by a private individual for his own use, and personally transported from a Member State to Malta, shall be charged in the Member State in which the excisable goods are acquired.

(2)To determine whether the excisable goods referred to in sub-article

(1)are intended for the own use of a private individual, the Commissioner shall take account of the following: (

1. a)the commercial status of the holder of the excisable goods and his reasons for holding them; (
2. b)the place where the excisable goods are located or, if appropriate, the mode of transport used; (
3. c)any document relating to the excisable goods; (
4. d)the nature of the excisable goods; and (
5. e)the quantity of the excisable goods.

(3)For the purposes of applying sub-article

(2)(e), the Minister may make regulations laying down guide levels, solely as a form of evidence.

(4)The Minister may, by notice in the Gazette, also provide that excise duty shall become due on the acquisition of mineral oils already released for consumption in another Member State if such products are transported by a private individual using atypical modes of transport. Excisable goods already released for consumption. Added by: XIII. 2010.10. Amended by: XXII. 2011.5. 14B.

(1)Without prejudice to article 14D

(1), excisable goods which have already been released for consumption in one Member State and are held for commercial purposes in Malta in order to be delivered or used in Malta, shall be subject to excise duty in Malta: Provided that for the purpose of this sub-article, holding for EXCISE DUTY commercial purposes shall mean the holding of excisable goods by a person other than a private individual or by a private individual for reasons other than his own use and transported by him.

(2)Excise duty due in terms of sub-article

(1)shall be paid by the person making the delivery or holding the goods intended for delivery, or to whom the goods are delivered in the other Member State, as the case may be.

(3)Without prejudice to article 14F, excisable goods which have already been released for consumption in one Member State and move within the Community for commercial purposes shall not be regarded as being held for such purposes until they reach the Member State of destination, provided that they are moving under cover of the formalities set out at Part H of the Sixth Schedule.

(4)Excisable goods which are held on board a boat or aircraft making sea-crossings or flights between Malta and another Member State but which are not available for sale when the boat or aircraft is in the Maltese territory shall not be regarded as held for commercial purposes in Malta.

(5)When excise duty for excisable goods which were released for consumption in Malta had become chargeable and collected in another Member State, the Commissioner may request the authorities of the other Member State for a reimbursement or remittance of the duty paid. 14C.

(1)Excisable goods which have been released for consumption in terms of article 14B

(1)shall move between the territories of the vario us Memb er S tates un der co ver of an accompanying document listing the main data from the document referred to at Part H of the Sixth Schedule.

(2)The persons referred in article 14B

(2)shall comply with the following requirements: Excisable goods released for consumption in terms of article 14B

(1). Added by: XIII. 2010.10. Amended by: XXII. 2011.5. (

1. a)before the goods are dispatched they shall submit a declaration to the Commissioner and guarantee payment of the excise duty; (
2. b)pay the excise duty to the Commissioner after the excisable goods arrive; (
3. c)consent to any checks by a Customs official to satisfy himself that the excisable goods have actually been received and that the excise duty chargeable on them has been paid. 14D.

(1)Excisable goods already released for consumption in one Member State, which are purchased by a person, other than an authorised tax warehouse keeper or a registered consignee, established in another Member State who does not carry out an independent economic activity, and which are dispatched or transported to Malta directly or indirectly by the vendor or on his behalf, shall be subject to excise duty.

(2)In the case referred to in sub-article

(1), the excise duty shall become chargeable at the time of delivery of the excisable Excisable goods already released for consumption in a Member State. Added by: XIII. 2010.

1. Amended by: XXII. 2011.
2. EXCISE DUTY goods. The chargeability conditions and rate of excise duty to be applied shall be those in force on the date on which the duty becomes chargeable.

(3)The person liable to pay the excise duty is the vendor who shall comply with the following requirements: (

1. a)before dispatching the excisable goods, he shall register his identity and guarantee payment of the excise duty with the Commissioner and be subject to the conditions laid down by the Commissioner; (
2. b)pay the excise duty to the Commissioner after the excisable goods arrive; (
3. c)keep accounts of deliveries of the excisable goods: Provided that the Minister may enter into bilateral agreements with other Member States in order to simplify these requirements.

(4)In the case referred to in sub-article

(1), the excise duty levied shall be reimbursed or remitted by the Commissioner at the vendor’s request, where the vendor has followed the procedures laid down in sub-article

(3).

(5)The Minister may, by a notice in the Gazette, lay down specific rules for applying sub-articles

(1)to

(4)to excisable goods that are covered by special national distribution arrangements. Loss of excisable goods during transport. Added by: XIII. 2010.10. Amended by: XXII. 2011.5. 14E.

(1)In the situations referred to in article 14B

(1)and article 14D

(1), in the event of the total destruction or irretrievable loss of the excisable goods, during their transport, which were not released for consumption in Malta, as a result of the actual nature of the goods, or unforeseeable circumstances, or force majeure, or as a consequence of authorisation by the Commissioner, the excise duty shall not be chargeable in Malta: Provided that the total destruction or irretrievable loss of the excisable goods in question shall be proven to the satisfaction of the Commissioner. Furthermore, the guarantee lodged pursuant to article 14C

(2)(a) or article 14D

(4)(a) shall be released.

(2)The Minister may, after consulting the Commissioner, by notice in the Gazette, lay down the rules and conditions under which the losses referred to in sub-article

(1)are determined. Irregularity occurring or detected in Malta. Added by: XIII. 2010.10. Amended by: XXII. 2011.5. 14F.

(1)Where an irregularity has occurred in Malta during a movement of excisable goods under article 14B

(1)or article 14D

(1), and such excisable goods were released for consumption in another Member State, they shall be subject to excise duty.

(2)Where an irregularity has been detected in Malta during a movement of excisable goods under article 14B

(1)or article 14D

(1), and such excisable goods were released for consumption in another Member State, and it is not possible to determine where the irregularity occurred, the irregularity shall be deemed to have occurred in Malta: Provided that if, before the expiry of a period of three years EXCISE DUTY from the date on which the excisable goods were acquired, it is ascertained in which Member State the irregularity actually occurred, the provisions of sub-article

(1)shall apply.

(3)The excise duty shall be due from the person who guaranteed payment thereof in accordance with article 14C

(2)(a) or article 14D

(4)(a) and from any person who participated in the irregularity: Provided that, if the excisable goods were released for consumption, the Commissioner shall, upon request, reimburse or remit the excise duty in the Member State where the irregularity occurred or was detected. Furthermore, the Commissioner shall release the guarantee lodged pursuant to article 14(C)

(2)(a) or article 14D

(4)(a).

(4)For the purposes of this article, "irregularity" means a situation occurring during a movement of excisable goods under article 14B

(1)or article 14D

(1), not covered by article 14E, due to which a movement, or a part of a movement, of excisable goods has not duly ended. 15.

(1)Unless otherwise specified in this Act, no excise duty paid under this Act on any excisable goods released for consumption in Malta shall be refunded: Provided that the Minister may under such conditions as he may deem appropriate authorise the refund of any excise duty paid on goods where an exemption in terms of paragraph (c) of subarticle

(2)of article 14 has been granted after the duty has been paid and excise duty on excisable goods which have been released for consumption may, at the request of the person concerned, be reimbursed or remitted by the Minister where those goods were released for consumption in the situations identified by the Minister and in accordance with the conditions that the Minister shall lay down by a notice in the Gazette for the purpose of preventing any possible evasion or abuse. Such reimbursement or remission may not give rise to exemptions other than those provided in article 14: Provided further that a drawback of the actual duty paid in accordance with the provisions of this Act shall be allowed after a written application by the claimant: (i) in respect of duty on any excisable goods exported as merchandise or shipped as stores or taken as fuel to power the engines of ships or aircraft on foreign bound ships or aircraft otherwise than as specified in sub-article

(4)of article 14; (ii) in respect of duty on any excisable goods supplied by any person in circumstances in which such excisable goods are exempt from duty in terms of an exemption made under the provisions of sub-article

(2)of article 14.

(2)The payment of a drawback shall be made in any case Drawback. Amended by: II. 2002.20; XIII. 2010.11; XXII. 2011.5; VII.2022.61. EXCISE DUTY falling under sub-paragraph (i) of the second proviso to sub-article

(1)h e r e o f t o t h e e x p o r t e r, o r i n a n y c a s e f a l l i n g u n d e r sub-paragraph (ii) of the said proviso to the supplier of the excisable goods in respect of which the drawback is allowed.

(3)The payment of a drawback shall be subject to the production of such documents and to the making and signing by the exporter or the supplier, as the case may be, of a written declaration in such form or manner as the Commissioner may require.

(4)(

1. a)In the case that, under whatever circumstance, including when it results that a crime has been committed, more excise duty is paid than is due to the Commissioner, the same Commissioner shall refund the excess excise duty that was paid. (
2. b)There shall be paid to the Commissioner the fee of fifteen euro (€15) for every refund made by the Commissioner in the circumstances provided for in paragraph (a). This fee shall be deducted from the amount to be refunded at the moment the refund is being made. If the excess excise duty paid amounts to fifteen euro (€15), then this is directly passed to Government revenue. Offences and penalties. Amended by: IX. 2001.8; II. 2002.21; IX. 2003.80; L.N. 425 of 2007; I. 2010.56; XXII. 2011.5; III. 2013.59; XVI. 2017.65; L.N. 270 of 2017; VII.2018.69; VII.2019.56; VIII.2020.62; XVIII.2021.50; XII.2023.48. 16.

(1)Any person who (

1. a)produces excisable goods by a process which is not permitted in terms of this Act or of any regulations made thereunder; or (
2. b)produces excisable goods in any establishment other than a authorised tax warehouse; or (
3. c)makes any alterations in the productive facilities and storage areas in a authorised tax warehouse or affecting the security of a authorised tax warehouse without the prior notification thereof to the Commissioner; or (
4. d)forges a die, stamp, mark or other device used by the Government, or under its authority, for making excise revenue bands or stamping or marking such bands for the purposes of this Act or any regulations made thereunder; or (
5. e)makes with such forged die, stamp, mark or other device an impression on any material; or (
6. f)sells or exposes for sale or utters or uses any forged die, stamp, mark or device or any impression made therewith; or (
7. g)knowingly and without lawful excuse (the proof whereof shall lie on the accused) has in his possession any forged die, stamp, mark or device or impression made therewith; or (
8. h)makes fraudulent use of any genuine die, stamp, mark or device or commits any of the acts contemplated in paragraphs (e), (f), and (
9. g)with regard to impressions fraudulently made with genuine instruments; or EXCISE DUTY (
10. i)makes or gives or submits or is instrumental in the making or the giving of any declaration, document or information to the Commissioner, which to his knowledge is false in any detail: Provided that a person who makes an incorrect declaration and requests the Commissioner in writing to amend it: (
11. i)before the Commissioner informs the person that the particulars of the customs declaration are not correct; and (
12. ii)(
13. aa)during the period when it is not yet established, in the systems relating to the processing of customs declarations, whether manual or electronic, if there is going to be control of the goods; or (
14. bb)within ten

(10)working days from the date of release of the goods, which goods were released without control; and (iii) such amendment does not tend to make the declaration applicable to other goods, other than those which were originally declared, in the sense that the only amendment that may take place in the declaration is one

(1)or more amendments from those listed in the Ninth Schedule, that person shall be deemed not to have committed the offence under this paragraph; or' (

1. j)is in any way knowingly concerned in any evasion or attempt at evasion of the duty leviable under the Act; or (
2. k)obstructs the Commissioner or any Customs official or other persons duly charged with the prevention and detection of offences against this Act with the carrying out of any of the provisions of this Act or of any regulations made thereunder; or (
3. l)recommends a retail price for cigarettes in excess of the established retail price on the basis of which excise duty has been computed in terms of the relevant Schedule to the Act; or (
4. m)sells cigarettes at a price in excess of the retail price established by the local manufacturer, or importer, and on which excise duty has been computed in terms of the EXCISE DUTY relevant Schedule to this Act; or (
5. n)knowingly aids, abets or assists in the commission of any of the foregoing offences; or (
6. o)is the person in whose name a authorised tax warehouse is registered and fails to report, within the time prescribed by regulations made under this Act, any quantity of excisable goods released for consumption or for free circulation, and fails to show to the satisfaction of the court that any such act or thing done or omitted to be done by any person in his employment or subject to his authority or control, was done or omitted without his knowledge, and that he could not with reasonable diligence have obtained knowledge thereof; or (
7. p)stores and, or offers for sale containers of alcohol or wine to which there is affixed an excise stamp that was already affixed to another alcohol or wine container; or (
8. q)imports for the purpose of sale or stores for the purpose of sale or prepares for the purpose of sale or offers for sale or offers for free water-pipe tobacco (also known as shisha tobacco) when not authorised as a registered consignor, registered consignee or an authorised tax warehouse keeper: Provided that whoever shows that he has acquired waterpipe tobacco from a registered consignor, registered consignee or an authorised tax warehouse keeper shall be deemed not to have committed a crime; or (
9. r)stores for the purpose of sale or prepares for the purpose of sale or offers for the purpose of sale or offers for free, water-pipe tobacco (also known as shisha tobacco) while the tobacco is neither in its box, packet or container with the excise stamp still affixed to it, nor is it in the water-pipe itself; or (
10. s)is a wholesaler of tobacco, a distributor of tobacco or is a first retail outlet of tobacco and is not authorised or registered in the system of Track and Trace; or (
11. t)imports or brings into Malta, or has in his possession, or disposes of, tobacco which is not listed in the Third Schedule, without the permission of the Commissioner; or, (
12. u)comes into possession of excisable goods or excise stamps or bands in breach of the law; or (
13. v)fails to register himself with the Commissioner, or his business or the property which he manages, in breach of this Act or its subsidiary laws, shall be guilty of an offence and shall for every such offence be liable on conviction to a fine (multa) of not less than five hundred euro (€ 500) and not m ore th an twenty-five th ousand euro (€25,000): EXCISE DUTY Provided that in the case of conviction for an offence related to manufactured tobacco mentioned in the Third Schedule to this Act, the offender shall be liable to a fine (multa) of not less than three thousand five hundred euro (€3,500) and not more than twenty five thousand euro (€25,000): Provided further that in the case of a conviction relating to the evasion or attempted evasion of excise duty, the offender shall be liable to a fine (multa) equivalent to three times the excise duty due on goods or five times the endangered duty, whichever is the lesser, but in any case not less than six hundred euro (€600) which fine may exceed twenty-five thousand euro (€25,000): Provided further that in the case of a conviction relating to the evasion or attempted evasion of excise duty related to manufactured tobacco mentioned in the Third Schedule to this Act, the offender shall be liable to a fine (multa) equivalent to three times the excise duty due on goods or five times the endangered duty, whichever is the lesser, but in any case not less than four thousand euro (€4,000) which fine may exceed twenty-five thousand euro (€25,000): Provided further that in the case of importation or bringing into Malta or possession or disposal of tobacco that is not listed in the Third Schedule, the offender shall be liable, upon conviction, to a fine (multa) equivalent to twice the value of the tobacco: Provided further that in the case of a conviction relating to the evasion or attempted evasion of excise duty by means of an item of excise duty found in the Seventh Schedule, the offender shall be liable to the fine (multa) provided for in the relevant provisos of t his article as the c ase ma y be t o g e t h e r w i t h imprisonment for a term not exceeding three

(3)years: Provided further that one-third of the fine (multa) shall be deemed as a civil debt owed and payable to the Department of Customs.

(2)(Deleted by Act I. 2010.56.).

(3)In the case of a second or subsequent conviction under this article, the offender shall be liable, at the discretion of the court, to be sentenced to imprisonment for a term not exceeding six months in addition to the penalties herein prescribed.

(4)In the case of a conviction for an offence against the provisions of paragraph (a) or (b), the stock of excisable goods to which the conviction relates shall be forfeited in favour of the Government, and such forfeiture shall be executed without the necessity of any express order of the court for the purpose.

(5)In the case of a second or subsequent conviction under subarticle

(1)(a) or (b), it shall be lawful for the Commissioner to seize and take possession of any machinery, equipment, receptacles, utensils, materials and ingredients used in the production of excisable goods, and to dispose of the same as provided in article 38.

(6)In the case of a conviction for an offence against the provisions of sub-article

(1)(d), (e), (f), (

1. g)or (
2. h)the offender shall, EXCISE DUTY in addition to the penalties laid down in sub-article

(1), be liable to a term of imprisonment from one to four years.

(7)Any person who negligently makes or gives or submits or causes to be made or given any declaration, document or information to a Customs official which is false in any detail shall be liable, on conviction, for every such offence, to a fine (multa) equivalent to three

(3)times the duty endangered, but not less than three-hundred and fifty euro (€350): Provided that a person who makes an incorrect declaration and requests the Commissioner in writing to amend it: (

1. i)before the Commissioner informs the person that the particulars of the customs declaration are not correct; and (
2. ii)(
3. aa)during the period when it is not yet established, in the systems relating to the processing of customs declarations, whether manual or electronic, if there is going to be control of the goods; or (
4. bb)within ten

(10)working days from the date of release of the goods, which goods were released without control; and (iii) such amendment does not tend to make the declaration applicable to other goods, other than those which were originally declared, in the sense that the only amendment that may take place in the declaration is one

(1)or more amendments from those listed in the Ninth Schedule, that person shall be deemed not to have committed the offence under this paragraph. Penalty instead of proceedings in terms of this Act. Added by: I. 2010.

1. Amended by: XXII. 2011.5; III. 2013.60; XV. 2016.32; XVI. 2017.66; VII.2018.70; VIII.2020.63; XVIII.2021.51; VII.2022.62; IX.2025.52; III.2026.
2. 16A.

(1)Notwithstanding any other provision of this Act relating to forfeiture of goods in favour of the Government, and without prejudice to sub-article

(2), in the case of an irregularity committed by an offender which, if undetected, would involve loss of excise duty on excisable goods not exceeding four thousand euro (€4,000), for tobacco products and twenty-five thousand euros (€25,000) in cases related to any other excisable goods t h e C o m m i s s i o n e r , w h i l s t h e f o r f e i t s t h e g o o d s m a y, o n acknowledgement of the committed offence by the offender, refrain from instituting proceedings in terms of this Act and impose a penalty equivalent to three times the excise duty endangered, which penalty shall not be less than two hundred and fifty euro (€250): Provided that when the excisable goods related to the irregularity mentioned in this article are goods listed in the Seventh Schedule except for manufactured tobacco mentioned in the Third Schedule to this Act, and the mentioned penalty is paid, then any forfeiture contemplated in this article shall still take effect unless the offender elects to pay also to the Commissioner a sum equivalent to the value of the goods seized, as determined in accordance with the provisions of the Import Duties Act, together with the duty, taxes EXCISE DUTY and other amounts due on the goods, and also satisfies any rules, regulations or special limitations related to the said goods. The amounts due are also to be paid even if the goods are to be exported: Provided further that: (

1. a)when the excisable goods, relative to which the irregularity mentioned in this article has occurred, are manufactured tobacco mentioned in the Third Schedule, then a penalty equivalent to three times the excise duty endangered shall be paid, which penalty shall not be less than one thousand five hundred euro (€1,500), and their forfeiture provided for in this article shall also take place; (
2. b)notwithstanding the provisions of paragraph (a), when a person fails to declare up to two thousand (2,000) cigarettes beyond the applicable exempted limit thereto according to the Excise Duty (Goods Imported by Persons Travelling from Third Countries) Regulations and chooses to enter into an agreement according to this article, the amount of cigarettes exceeding the limit shall be forfeited and the person shall pay a penalty equivalent to the endangered duty: Provided also that, when the goods in respect of which the irregularity, mentioned in this article, has been committed, are tobacco that is not listed in the Third Schedule, there shall be paid a penalty equivalent to one per cent (1%) of the value of the tobacco but not less than one-hundred euro (€100) and the forfeiture contemplated in this article shall also take place: Provided also that when the excisable goods related to the irregularity mentioned in this article are goods listed in the Eighth Schedule, and the circumstances provided for in this article take place, then the goods shall not be forfeited but any sum due in relation to the goods is to be paid together with a penalty equivalent to three times the excise duty endangered, which penalty shall not be less than two hundred and fifty euro (€250).

(2)If a person commits an irregularity after the 1st June 2017 and the circumstances provided for in sub-article

(1)take place, and then within a period of twenty four months from the first irregularity, the person commits another irregularity as mentioned above and the circumstances provided for in sub-article

(1)take place once again, the penalty due for this second irregularity would be three times the duty evaded but not less than two hundred and fifty euro (€250), increased by 10%. If within the same period of twenty four months the person commits a third irregularity or more as mentioned above, and the circumstances provided for in sub-article

(1)take place again, the penalty due would be three times the duty evaded but not less than two hundred and fifty euro (€250), increased by 25%: Provided that in the case of irregularities related to manufactured tobacco mentioned in the Third Schedule to the Act, when the circumstances mentioned in this sub-article take place, the penalty due S.L. 382.02. EXCISE DUTY for this second agreement would be three times the duty evaded but not less than one thousand five hundred euro (€1,500) increased by 10%, and the penalty due for the third agreement or more would be three times the duty evaded but not less than one thousand five hundred euro (€1,500), increased by 25%.

(3)If a person commits the irregularity mentioned in article 16

(1)(v), the Commissioner may, if the offender admits, refrain from instituting proceedings in terms of this Act and impose a penalty equivalent to two hundred euro (€200).

(4)For the purpose of this article, the signing of this agreement shall also mean that the person is renouncing to any claim that he may have against the Commissioner, State Advocate or Attorney General resulting from the case. Out of court agreement Added by: VII.2018.

1. When an object is forfeited, the duty and taxes shall not be collected. Added by: XII.2023.
2. Forfeiture. Amended by: II. 2002.
3. Substituted by: I. 2010.
4. Amended by: XXII. 2011.5; III. 2013.61; XIII. 2015.128; XVI. 2017.67; XVIII.2021.52; XII.2023.50.

(5)Without prejudice to any other provision in this Act, when the endangered duty in accordance with this Act together with any other duty and tax mentioned in the Customs Ordinance altogether does not exceed one hundred and fifty euro (€150), the provisions of article 63

(6)of the Customs Ordinance shall apply. 16B. In case of an out of court agreement under article 16A of this Act, when the law provides for the lowest and the highest amount of the fine (multa) that may be so imposed by the Court, the sum that shall be paid as a result of that agreement, shall be a sum which is equivalent to the said lowest amount increased by half the difference between the said lowest and highest amounts. 16C. When an object is forfeited in accordance with an article of customs legislation, the duty and taxes due on the forfeited object shall not be collected. 17.

(1)If any excisable goods (

1. a)are deposited or concealed in any place with intent to defraud the Government of the excise duty leviable under this Act; or (
2. b)are clandestinely or illegally removed from or out of any authorised tax warehouse or place of security in which such excisable goods have been duly deposited; or (
3. c)after having been delivered from any authorised tax warehouse or other place of security without payment of duty for removal to any place authorised by the Commissioner, are not duly delivered at such place; or (
4. d)are brought into Malta and the payment of excise duty has been evaded or an attempt has been made to evade the payment thereof, in every such case, such excisable goods shall be forfeited, together with any goods which may be found packed with or used in concealing them, and the offender shall moreover be liable to the penalties laid down in article 16.

(2)Furthermore, all vehicles, vessels and other means of EXCISE DUTY transport, used or intended to be used for the importation, landing, removal, keeping, concealing or conveyance of any uncustomed or other goods liable to forfeiture under this Act together with the property, whether movable or immovable, within which the uncustomed or goods liable to forfeiture are found, shall be forfeited: Provided that no vessel shall be liable to forfeiture under the provisions of this article unless such vessel is under two hundred and fifty tons net registered tonnage.

(3)(a) With regard to any vessel of or exceeding two hundred and fifty

(250)tons burden, the Commissioner may, in any case in which, in his opinion, any responsible officer of such vessel is implicated, either actually or by neglect, proceed in the manner prescribed by article 36, and without prejudice to any appeal as laid down in that article, for condemnation of the said vessel to the amount mentioned in paragraph (b). For this purpose, the Commissioner may require, as to any vessel referred to in this sub-article, the deposit in his hands of this amount as guarantee to abide by the decision of the court, and in default of payment of such deposit, the Commissioner may detain such vessel. (b) The amount mentioned in paragraph (a) shall be of: (i) half a million euro (€500,000) for vessels between two hundred fifty

(250)and nine thousand, nine hundred and ninety-nine (9,999) tons burden; (

1. ii)six hundred thousand euro (€600,000) for vessels between ten thousand (10,000) and nineteen thousand, nine hundred and ninety-nine (19,999) tons burden; (iii) seven hundred thousand euro (€700,000) for vessels between twenty thousand (20,000) and twentynine thousand, nine hundred and ninety-nine (29,999) tons burden; (
2. iv)eight hundred thousand euro (€800,000) for vessels between thirty thousand (30,000) and thirty-nine thousand, nine hundred and ninety-nine (39,999) tons burden; (
3. v)nine hundred thousand euro (€900,000) for vessels between forty thousand (40,000) and forty-nine thousand, nine hundred and ninety-nine (49,999) tons burden; (
4. vi)one million euro (€1,000,000) for vessels between fifty thousand (50,000) and fifty-nine thousand, EXCISE DUTY nine hundred and ninety-nine (59,999) tons burden; (vii) one million, one hundred thousand euro (€1,100,000) for vessels between sixty thousand (60,000) and sixty-nine thousand, nine hundred and ninety-nine (69,999) tons burden; (viii) one million, two hundred thousand euro (€1,200,000) for vessels between seventy thousand (70,000) and seventy-nine thousand, nine hundred and ninety-nine (79,999) tons burden; or (
5. ix)one million, three hundred thousand euro (€1,300,000) for vessels of eighty thousand (80,000) tons burden or more.

(4)No claim for damages shall lie against the Commissioner in respect of the payment of any deposit or the detention of any vessel, vehicle, immovable property or other goods under this article.

(5)The expression "responsible officer" in this article means and includes the master, mates and engineers of any vessel, and in the case of a vessel carrying a passenger certificate, the purser or chief steward.

(6)The expression "neglect" includes cases where goods unowned by any of the crew are discovered in a place or places in which they could not reasonably have been put if the responsible officers having supervision of such place or places had exercised proper care, at the time of the loading of the ship or subsequently.

(7)Notwithstanding the provisions of sub-article

(1), tobacco that is not listed in the Third Schedule that is imported or brought into Malta or found in Malta without the permission of the Commissioner shall be forfeited, together with all the other objects that are found packed with, or, used in concealing it, and sub-articles

(2),

(3),

(4),

(5)and

(6)shall also apply to this case, and the person who commits this offence shall also be liable to the penalties established in article 16.

(8)Any quantity of excise stamps that are found in the possession of a person in violation of the provisions of this Act shall, without prejudice to any other punishment under this Act or another law, be forfeited in favour of the Government. Powers of Customs officials. Amended by: XXV. 1997.4; II. 2002.23. Substituted by: IX. 2003.82. Amended by: L.N. 425 of 2007; I. 2010.59; XXII. 2011.5. 18.

(1)It shall be lawful for any Customs official to carry out inspections, at reasonable time, at any authorised tax warehouse or place where excisable goods are kept or suspected to be kept.

(2)The person in whose name the authorised tax warehouse is registered, shall provide such Customs officials with the necessary assistance for the execution of their duties.

(3)A person other than the person in whose name a authorised tax warehouse is registered, who is in possession of any books, EXCISE DUTY documents including machine readable material or other records shall likewise be under a duty to produce the same to the Commissioner or a Customs official.

(4)Any person who wilfully or maliciously refrains from giving his assistance, or wilfully obstructs, impedes or delays any Customs official in the execution of his duties or powers under this Act or under regulations made thereunder, shall be guilty of an offence under this article and shall be liable, on conviction, to a fine (multa) not exceeding twenty-five thousand euro (€25,000). 19.

(1)Without prejudice to the provisions of the foregoing article, the Attorney General or a magistrate may, if satisfied on the sworn information by aCustoms official Customs official that there are reasonable grounds for suspecting that (

1. a)anything liable to forfeiture under this or any other law relating to excise, or Issue of a search warrant. Added by: IX. 2003.82. Amended by: XIII. 2015.134; VII.2018.72. (
2. b)any records relating to transactions in contravention of this or any other law relating to excise, are kept or concealed in a dwelling, issue a search warrant.

(2)A search warrant issued under this article shall be sufficient a u th o r it y f o r th e C us to m s o ff i cial n amed the re in, alone or accompanied by such other Customs officials or such other persons as the Customs official considers necessary, at any time or times within one month of the date of issue of the warrant, to enter (if need be by force) accompanied or alone in a dwelling named or specified in the warrant to search such dwelling, to examine every item held therein, to inspect anything found therein or thereat, to inspect any record found therein or thereat and, if there are reasonable grounds for suspecting that anything found therein or thereat is liable to forfeiture under this Act or any other law relating to excise, or that a record found there may be required as evidence in proceedings under this Act or such other law, to detain or seize the thing as liable to forfeiture or, in the case of a record, to detain it for so long as it is reasonably required for such purpose. 20.

(1)A Customs official in uniform may stop any vehicle, aircraft or vessel in order (

1. a)that such Customs official, or any Customs official accompanying such Customs official, may exercise any power conferred on them by article 19 in relation to excise products or any other products chargeable with excise duty under any other law, where there are reasonable grounds to believe that such products are being transported in or on such vehicle, or (
2. b)to examine and take samples of mineral oil under article 21

(1)(c).

(2)Any person in charge of a moving vehicle, aircraft or vessel shall, at the request of a Customs official in uniform or a Police officer, stop such vehicle, aircraft or vessel.

(3)Any person in charge of a vehicle, aircraft or vessel shall, Power to stop vehicles, aircrafts and vessels. Added by: IX. 2003.

1. Amended by: XIII. 2015.
2. EXCISE DUTY whether such vehicle, aircraft or vessel has been stopped by a Customs official under this article or article 20

(1), or is already stationary, at the request of a Customs official (a) keep such vehicle, aircraft or vessel stationary for such period as is reasonably required to enable a Customs official to exercise any power conferred on such Customs official by article 19 or by article 20

(1), or (b) where such vehicle, aircraft or vessel is, in the opinion of such Customs official, situated in a place unsuitable for the exercise of any power conferred on such officer by the said articles, take such vehicle, aircraft or vessel or cause it to be taken to such place as such Customs official may consider suitable for the exercise of such power. Power to examine and search vehicles and to take samples. Added by: IX. 2003.82. Substituted by: XIII. 2015.129. 21.

(1)A Customs official, on production of his authorisation if so requested by any person affected, or any Customs official accompanying such officer, may (

1. a)examine a vehicle, or aircraft or vessel, (
2. b)carry out such searches of a vehicle, aircraft or vessel as may appear to the Customs official to be necessary to establish whether (
3. i)anything on or in the vehicle, aircraft or vessel or in any manner attached to the vehicle, aircraft or vessel, is liable to forfeiture under this Act or any other law relating to excise, or (
4. ii)any excisable goods being transported in or on, or in any manner attached to, the vehicle, aircraft or vessel correspond in every material respect with the description of any such products in a document referred to in paragraph (d)(iii); (
5. c)take samples, without payment, of any product subject to excise duty in or on, or in any manner attached to the vehicle, aircraft or vessel, and (
6. d)question the person in charge of the vehicle, aircraft or vessel in relation to the vehicle, aircraft or vessel or anything on or in any manner attached to the vehicle, aircraft or vessel, and require such person (
7. i)to give, within such time and in such form and manner as may be specified by the Customs official, all such information in relation to the vehicle, aircraft or vessel as may reasonably be required by such Customs official and is in the possession or procurement of such person, (
8. ii)within such time and in such manner as may be specified by the Customs official, to produce and permit the inspection of, and the taking of copies of, or of extracts from, all such records relating to the vehicle, aircraft or vessel and any products being so transported, as are reasonably EXCISE DUTY required by such Customs official and are in the possession or procurement of the person, and (iii) to produce to the Customs official any accompanying document, duty document or exemption certificate accompanying any products subject to excise duty being transported in or on, or in any manner attached to, the vehicle or aircraft or vessel.

(2)A Customs official, on production of his authorisation, if so requested by any person affected, may (

1. a)examine and take samples of any mineral oil in any fuel tank or otherwise present on or in any vehicle, aircraft or vessel, or anything attached to any vehicle, aircraft or vessel, for use or capable of being used for combustion in the engine of the vehicle, aircraft or vessel, whether or not the vehicle, aircraft or vessel is attended, (
2. b)examine or inspect any vehicle, aircraft or vessel or anything attached to any vehicle, aircraft or vessel for the purposes of paragraph (a), (
3. c)question (
4. i)the owner of any vehicle, aircraft or vessel, (
5. ii)any person who for the time being stands registered as the owner of any vehicle, aircraft or vessel, (iii) any director, manager or principal officer of such owner where the registered owner is not one or more individuals, or (
6. iv)the person in charge of any vehicle, aircraft or vessel, in relation to such mineral oil, and require such owner, person, director, manager or principal officer to give to such Customs official any information in relation to such mineral oil as may reasonably be required and which is in the possession or procurement of such owner, person, director, manager or principal officer, as the case may be. 22.

(1)A Customs official may, at all reasonable times, on production of his authorisation, if so requested by any person affected, enter any premises or other place (other than a dwelling) in which (

1. a)the production, processing, holding, storage, keeping, importation, purchase, packaging, offering for sale, sale or disposal of any excisable goods is being or is reasonably believed by the Customs official to be carried on, (
2. b)the manufacture, distribution, storage, repair, modification, importation, dealing, delivery or disposal of mechanically propelled vehicles is being, or is reasonably believed by the Customs official to be Entry and search of premises. Added by: XI. 2003.82. Amended by: XIII. 2015.134. EXCISE DUTY carried on, or (
3. c)any records relating to, or reasonably believed by the Customs official to relate to, the products or activities referred to in paragraphs (
4. a)and (
5. b)are being kept or are reasonably believed by the Customs official to be kept.

(2)A Customs official, on production of his authorisation, if so requested by any person affected, may (

1. a)enter and inspect any premises or other place (other than a dwelling) for the purposes of this article and bring onto those premises any vehicle being used in the course of his or her duties, (
2. b)make such search and investigation of such premises or place as such Customs official may consider to be proper.

(3)A Customs official in or on any premises or place pursuant to sub-article

(1)may there (

1. a)carry out such search and investigation as such Customs official may consider to be proper, (
2. b)take account of, and without payment, take samples of any product subject to excise duty and of any materials, ingredients and substances used or likely to be used in the manufacture of such product, (
3. c)in relation to any records referred to in sub-article

(1)(

1. c)(
2. i)search for, inspect and take copies of or extracts from any such records (including, in the case of any information in a non-legible form, a copy of, or an extract from, such information in a permanent legible form), (
3. ii)remove and retain such records for such period as may reasonably be required for their further examination, and (iii) require any person to produce any such records which are in that person’s possession, custody or procurement and in the case of information in a non-legible form, to produce it in a legible form or to reproduce it in a permanent legible form, (
4. d)question any person present in relation to (
5. i)any product referred to in sub-article

(1)(

1. a)or any materials, ingredients or other substances used or intended to be used in the manufacture of such product, (
2. ii)any vehicle, aircraft or vessel, (iii) any records referred to in sub-article

(1)(c), produced or found in or on such premises or place, and such person shall give to such Customs official all information required of such EXCISE DUTY person which is in such person’s possession, custody or procurement.

(4)A Customs official in or on any premises or place pursuant to article 21, or any person accompanying a Customs official pursuant to article 20, may require any person present to give to such Customs official or such other person his or her name and address. 22A. In article 21 and 22, the word "authorisation" means an identity card of the Department or means of identification issued by the respective Department according to the applicable law. Definition of the word "authorisation". Added by: VII.2019.57. 23. A Customs official may require any person whom such officer has reasonable cause to believe to be guilty of an offence under article 16

(1)or article 17, to furnish to such officer - Obligation to give information. Added by: XI. 2003.82. Amended by: XIII. 2015.130. (

1. a)his or her name and surname, address and other details, (
2. b)a document of identification; and (
3. c)all such information in relation to the goods subject to excise duty as may be reasonably required by such Customs official or member, which goods are in the possession or procurement of such person. 24. Where a Customs official has reasonable grounds to suspect that a person is committing an offence against this Act and its subsidiary legislation, then such officer may detain such person without warrant and as soon as immediately practicable thereafter and in any case not later than two hours after such detention, place such person in the custody of an officer of the Police force whereupon such officer of the Police force shall either release such person or proceed to present such person before a court and the provisions of the Criminal Code relating to arrest shall mutatis mutandis apply to the Customs official and the officer of the Police force. Power to detain. Added by: XI. 2003.82. Amended by: III. 2013.62; VII.2018.73. 25.

(1)Where a Customs official or a Police officer reasonably suspects that any products, subject to excise duty or any other goods, are liable to forfeiture under this Act then - Detention of goods and vehicles. Added by: XI. 2003.82. Amended by: I. 2010.60; XIII. 2015.131; VII.2022.63. (

1. a)all such excisable goods or other goods, (
2. b)any other thing being made use of in the conveyance of such products or goods, and (
3. c)any vehicle, aircraft or vessel in or on which or attached to which any such products or goods are found, shall be detained by such Customs official or Police officer until such examination, enquiries or investigations as may reasonably be deemed necessary by such Customs official or another Customs official, or Police officer have been made for the purposes of determining whether or not such products, goods, thing, vehicle, aircraft or vessel are liable to forfeiture.

(2)When a determination referred to in sub-article

(1)has been EXCISE DUTY made in respect of any such products, other goods, thing or vehicle or on the expiry of a period of ninety

(90)working days from the date on which such products, goods, thing or vehicle were detained under that sub-article, whichever is the earlier, such products, goods, thing or vehicle are to be either seized as liable to forfeiture under the Act, or released. Seizure of goods or vehicles. Added by: XI. 2003.82. Amended by: I. 2010.61; XIII. 2015.134. 26.

(1)Any goods or vehicle, aircraft or vessel that are liable to forfeiture under the Act shall be seized by a Customs official. Procedure when goods are withheld. Added by: XI. 2003.82. Amended by: XIII. 2015.132. Substituted by: XII.2023.51. Amended by: IX.2025.53. 27.

(1)Whenever goods are withheld under this Act, the official who does the withholding shall issue a receipt for withheld goods to the person from whom the goods were taken or else the receipt for withheld goods shall be affixed to the place from where the goods were withheld.

(2)Any Police officer who has detained any goods or vehicle, aircraft or vessel that are liable to forfeiture under the Act shall deliver the same to a Customs official as soon as is practically possible and in no case later than forty eight hours after such detention.

(2)Where within a period of ninety

(90)working days from when the goods were withheld the Commissioner decides that the goods are not subject to seizure or if he fails to take a decision regarding those goods, the Commissioner shall immediately give back the withheld goods to the person from whom they were withheld.

(3)Where it is decided that the object is subject to seizure, the Commissioner or the official shall give a seizure note containing the reasons for the seizure within ninety

(90)working days from when the goods were withheld to every person who, in the opinion of the Commissioner or the official, was at the time of seizure, the owner or owners of the goods seized, if such were known.

(4)The seizure note shall be accompanied by a copy of article 28 and it shall be deemed to have been duly given to the interested person: (

1. a)when it is delivered to that person personally, if known; or (
2. b)when it is addressed to that person and is sent to him by registered mail or left at the last known address of his residence or place of business of that person, or in the case of a body corporate at its registered or main office and in this case the date of the seizure note shall be the date when the registered post is delivered; or (
3. c)where that person does not have a known address in Malta or Gozo, when a notice is published in the Government Gazette declaring that the seizure note has been issued. The date of the seizure note in this case shall be the date of publication of the notice in the EXCISE DUTY Government Gazette. 28.

(1)(a) The goods seized in accordance with this Act shall be deemed to be forfeited ipso jure and the Commissioner may dispose of them according to law, unless the person from whom the goods have been seized, or the owner, or any person authorised by him within thirty

(30)days from the date of the seizure note, gives a notice in writing to the Commissioner, requesting that the seized goods are returned to him or indicating that he intends to demand that they are returned, and within thirty

(30)days from such notice, initiates the necessary proceedings before the Administrative Review Tribunal by means of an application against the Commissioner. (b) The Commissioner shall have thirty

(30)days from the notification to reply to the application before the Administrative Review Tribunal. The Tribunal shall hear the application expeditiously. (

1. c)In default of such contestation in terms of paragraph (a), the claim on the seized object shall be deemed to be abandoned: Provided that where a seizure is made in accordance with this Act and no contestation has been made by the person from whom the goods have been seized, or by the owner, or any person authorised by him for the purposes of this article, in case of an acquittal by the competent Court as provided for in article 36, which has become a res judicata, the contestation process as provided for in paragraph (
2. a)may be availed of within thirty

(30)days from the date of the judgement becoming a res judicata. In default of such contestation, the claim on this good shall be deemed to be abandoned: Provided further that the preceding proviso shall not apply to the confiscation of any good which is illegal or prohibited by virtue of any law and to the confiscation of any restricted good unless such restrictions have been observed.

(2)When the object seized by virtue of this Act is a vessel or is of a perishable nature or is, in the opinion of the Commissioner, likely to suffer substantial loss of value by the lapse of time, or consists of a living creature, the same object may, by order of the Commissioner, be sold, and the proceeds thereof be retained to abide the results of any claim that may be legally made in respect thereof and for the purpose of any proceedings taken under this Act in respect of the seized goods, such proceeds shall represent and substitute the said seized goods.

(3)When a seizure made in accordance with this Act is contested in accordance with sub-article

(1), the Commissioner may, at anytime, if he sees fit and notwithstanding the pendency of the proceedings wherein the seizure is contested, deliver any goods seized to any claimant upon his paying to the Commissioner such sum as the Request for the goods to be given back. Added by: XI. 2003.

1. Amended by: XXII. 2011.5; XIII. 2015.
2. Substituted by: XII.2023.
3. Amended by: IX.2025.
4. EXCISE DUTY Commissioner thinks proper and not exceeding that which in the opinion of the Commissioner represents the value of the goods, including any duty, levy or tax chargeable thereon and which have not been paid, or upon giving to the Commissioner such security acceptable to the said Commissioner for the payment of such sum. Such sum or security, as the case may be, shall be retained to abide the result of any claim that may be legally made in respect thereof and shall, for the purpose of any proceedings taken under this Act in respect of the seized goods, represent and substitute the said seized goods. Power to deal with articles seized. Added by: XI. 2003.
5. Amended by: XXII. 2011.5; VII.2022.64; XII.2023.
6. 29.

(1)The Commissioner may, in his discretion, and if so ordered on writing by the Minister responsible for finance restore anything seized under the Act.

(2)Without prejudice to sub-article

(1), where a notice of claim relating to the thing seized has been duly given under article 28, the Commissioner may as he thinks fit and notwithstanding the pendency of the proceedings wherein the seizure is contested (

1. a)deliver it up to the claimant on payment to the Commissioner of such sum as the Commissioner thinks proper, being a sum not exceeding that which in the opinion of the Commissioner represents the value of the thing, including any duty or tax chargeable on it which has not been paid, or (
2. b)if the thing seized is in the opinion of the Commissioner of a perishable nature, sell or destroy it.

(3)If, where anything is delivered up, sold or destroyed under this article, it is held by the court in proceedings under article 28 that the thing was not liable to forfeiture at the time of its seizure, the Commissioner shall, on demand tender to such claimant (a) an amount equal to any sum paid by the claimant under sub-article

(2), (

1. b)if he has sold the thing, an amount equal to the proceeds of sale, or (
2. c)if he has destroyed the thing, an amount equal to the market value of the thing at the time of its seizure, together with the reasonable costs of any court proceedings to challenge the seizure where the Commissioner is of the opinion that the claim was justified.

(4)If the claimant accepts the amount tendered under suba r ti c l e

(3), suc h c la i m a n t sh a l l no t be e nt i t le d t o m a i nt a i n proceedings in any court on account of the seizure, detention, sale or destruction of the thing concerned.

(5)(

1. a)The Commissioner shall have the right to dispose according to law of all objects seized in accordance with any customs law, when the seizure becomes final, as well as when the objects are abandoned. (
2. b)The right provided in paragraph (
3. a)is without EXCISE DUTY prejudice to the right of the Commissioner to dispose of the objects seized before the seizure becomes final, in the circumstances and for the reasons provided in the law. (
4. c)The objects seized according to customs legislation, except for objects of food or drink items for humans, shall either be put to use by a public entity, or be placed for sale by call for offers or be destroyed or otherwise the Commissioner may dispose of them in any other way as he deems appropriate with the approval of the Minister responsible for Customs: Provided that objects of food or drink items for humans shall be placed for sale by call for offers.

(6)Notwithstanding any other provision of this Act relating to goods seized as liable to forfeiture, a Customs official who seizes as liable to forfeiture any spirits or any stills, receptacles, utensils, wort or other material for manufacturing, distilling or preparing spirits may at his discretion spill, break up or destroy any of those goods. 29A.

(1)The Commissioner may grant to, refuse to grant or withdraw an authorisation from a person to act as a registered consignee, registered consignor, registered merchant or authorized warehouse keeper.

(2)The Commissioner may refuse to grant or withdraw an authorization according to sub-article

(1)if in the opinion of the Commissioner: (

1. a)where the applicant is a natural person, the applicant is not a fit and proper person; (
2. b)where the applicant is a partnership, any of the partners are not fit and proper persons; (
3. c)where the applicant is a company, any director, shareholder or officer of the company who would be involved in the direction or control of the company is not a fit and proper person.

(3)A natural person, partnership or company shall be deemed to be unfit and improper, if amongst others: (

1. a)they lack honesty, integrity or competence in their dealings with the Commissioner; or (
2. b)they lack financial soundness; or (
3. c)such person has contravened any of the dispositions of this Act or any other Act relating to customs; or (
4. d)such person has been found guilty of committing a criminal offence for which such person has been effectively sentenced to imprisonment for twelve months or more: Provided that for the purposes of this paragraph: (
5. i)two or more sentences for convictions which are Power to grant, refuse or withdraw authorization. Added by: I. 2010.62. Amended by: XXII. 2011.5; XV. 2016.33; VII.2018.74; VIII.2020.64. EXCISE DUTY required to be served consecutively shall be considered as separate convictions if none of them will be for a term of more than twelve months or more, so however that if one of the convictions is for a term of imprisonment for a term of twelve months or more, the said convictions shall be considered as one conviction; and (
6. ii)no account shall be taken of any conviction of imprisonment imposed as an alternative for, or because of the failure to, the payment of a fine (multa); or (
7. e)has been found guilty of committing an offence relating to property and public security, public trust, government revenue, financial services or violence committed against a public officer: Provided that for the purposes of this sub-article

(3): (i) an agreement between a person and the Commissioner in terms of article 63 of the Customs Ordinance or in terms of article 16A, except if it is an agreement related to manufactured tobacco products mentioned in the Third Schedule, shall not affect in any way the considerations about whether a person is fit and proper, so long as this agreement would have been entered into not less than one

(1)year before the date of the application under this article; (

1. ii)if a person benefits from the provisions of paragraph (
2. i)of this proviso and is given authorisation to act as a registered excise trader or as authorised tax warehouse keeper and then enters into another agreement with the Commissioner in terms of article 63 of the Customs Ordinance or article 16A, except if it is an agreement related to manufactured tobacco products mentioned in the Third Schedule, then this second agreement is not to affect in any way the considerations about whether a person is fit and proper, so long as this second agreement would have been entered into not less than three

(3)years before the date of the application under this article; (iii) in case the person commits a third irregularity or more thereafter, except if it is an irregularity related to manufactured tobacco products mentioned in the Third Schedule, then the person is to be considered unfit and improper for the purposes of this sub-article

(3); (iv) A person who enters into an agreement with the Commissioner under article 63 of the Customs Ordinance or article 16A relating to manufactured tobacco products mentioned in the Third Schedule EXCISE DUTY shall not be considered as a fit and proper person for the purposes of this article.

(4)Any person who feels aggrieved by a decision taken by the Commissioner according to sub-article

(3), may appeal under article 31 to the Administrative Review Tribunal. 30.

(1)When the Customs official deems that there is any sort of discrepancy in the information given to Customs and, or in relation to the goods arriving in Malta which may lead to a difference between the amount of duty paid and that which is due, or is going to take any other decision in relation to an economic operator which shall affect him negatively, the official shall communicate in writing to the economic operator the grounds on which he intends to base his decision and give him thirty

(30)days from this communication during which the economic operator may exercise his right to be heard by the Commissioner, in written form. This period of time may be extended to up to sixty

(60)days where the Commissioner deems it appropriate, upon the request of the economic operator. Right to be heard and the final decision. Added by: XI. 2003.82. Amended by: XXII. 2011.5; XIII. 2015.134. Substituted by: XII.2023.53.

(2)When the period of time to be heard given to the economic operator is over, the Commissioner shall send a final decision in writing to the economic operator, stating where applicable, the amount of duty due.

(3)The final decision shall be sent to the economic operator by registered mail at the address given by the economic operator or at the address tied to the value added tax registration number. The decision shall state that it is a final decision, shall state the reasons for the decision and shall give the economic operator ten

(10)days from the date of the final decision to pay or to state in writing that he disagrees with the Commissioner with regards to the amount due or on the decision taken. 31. Where the economic operator disagrees with the final decision of the Commissioner, he has thirty

(30)days from the end of the ten

(10)day period specified in article 30

(3)to commence proceedings against the Commissioner in the Administrative Review Tribunal by means of an application demanding that the decision is unfounded, and the Commissioner shall have thirty

(30)days from notification in which to file a reply. In default of the written statement provided for in article 30 and the application provided for in this article, the final decision shall constitute an executive title in accordance with and for the purposes of Title VII of Part I of Book Second of the Code of Organization and Civil Procedure. Appeal to the Administrative Review Tribunal. Added by: XI. 2003.

1. Amended by: I. 2010.63; L.N. 336 of 2010; XXII. 2011.
2. Substituted by: XII.2023.
3. Publication in the Government Gazette where the trader is not found. Added by: XI. 2003.
4. Amended by: L.N. 425 of
5. Substituted by: L.N. 336 of
6. Amended by: XXII. 2011.
7. Substituted by: XII.2023.
8. Guarantee. Added by: XI. 2003.
9. Amended by: L.N. 336 of 2010; XXII. 2011.
10. Substituted by: XII.2023.
11. EXCISE DUTY
12. When the notification of the final decision by registered mail is not successful because the economic operator may not be found or because of other reasons attributable to him, the Commissioner shall publish a notice in the Government Gazette where he states that a final decision has been issued and in that notice he invites the economic operator to collect it from the Department within thirty

(30)days from publication of that notice. The economic operator shall be deemed to be notified with the final decision at the end of this period. The economic operator shall have ten

(10)days from the notification to pay or to state in writing that he disagrees with the Commissioner regarding the amount due or the decision taken, and if he disagrees, he shall have thirty

(30)days from the end of the ten

(10)day period to commence proceedings against the Commissioner before the Administrative Review Tribunal by means of an application, demanding that the Tribunal declares that the claim of the Commissioner is unfounded, and the Commissioner shall have the right to file a reply within thirty

(30)days from notification. In default of the written statement and the application provided for in this article, the final decision shall constitute an executive title in accordance with and for the purposes of Title VII of Part I of Book Second of the Code of Organization and Civil Procedure. 33.

(1)The proceedings before the Tribunal relating to an amount of duty due to the Commissioner after a final decision shall be cancelled from the list on the first hearing unless a guarantee acceptable to the Commissioner equivalent to the duty due, excluding value added tax, is presented. The guarantee shall be kept by the Commissioner until final judgement and shall be withheld or returned according to the judgement of the Tribunal: Provided that the Tribunal may order that the guarantee shall not be given by the applicant, where it is proven that the giving of a guarantee would cause the applicant serious economic or social difficulties. These difficulties shall be proven by the applicant by means of adequate and relevant documentation, which shall include, according to circumstances, the last three

(3)audited financial statements, the financial report for the current year, tax returns, notarial acts, bank accounts or equivalent documentation.

(2)The provisions of sub-article

(1)relating to the giving of a guarantee shall also apply to proceedings in the competent court under article 466 of the Code of Organization and Civil Procedure which shall relate to duty and taxes due to the Commissioner under any customs law.

(3)The Tribunal shall expeditiously hear and decide all cases relating to claims against the Commissioner. EXCISE DUTY 33A. When an amount of duty, tax or interest remains unpaid after ten

(10)days from the notification to the debtor of the amount due, the Commissioner may immediately take those administrative and procedural measures necessary, including not giving any customs service to the debtor until payment is effected, take all enforcement measures necessary so that payment of the established amount is effected, as well as take all measures necessary according to law to enforce the executive title when it is constituted. Measures to collect duty, taxes or interest which are not paid. Added by: XII.2023.

2. Where criminal prosecution is pending against any person in respect of any offence under this Act in connection with which any seizure has been made under this Act, or where a person has been informed that such proceedings are being contemplated then no appeal under articles 30 to 32 may be entered until the criminal prosecution has been finally concluded or the said person has been informed that no prosecution will be initiated and the terms referred in the said articles for appeal shall be suspended accordingly. No appeal pending criminal prosecution. Added by: XI. 2003.
3. 35.

(1)It shall be lawful for the President of Malta, by a notice published in the Gazette, to authorise any Customs official or any officer of customs to exercise, within such limits as shall by a notice published as aforesaid be prescribed by the President of Malta, such functions as by any law or regulations made thereunder, are vested in the officers of the Executive Police. Customs officials may be given powers of Executive Police. Added by: XI. 2003.82.

(2)Before any such officer or person shall exercise any of the functions referred to in sub-article

(1), he shall take the oaths here following: "I ........................ do swear/solemnly affirm that I will bear true faith and allegiance to the people and the Republic of Malta and its Constitution. (So help me God).". "I ................................. do swear/solemnly affirm that while holding the office of (insert description of office) I will do the best of my knowledge and ability discharge the functions of an officer the Executive Police faithfully and according to law. (So help me God).". 36.

(1)All proceedings under this Act shall be taken in the name and on behalf of the Commissioner before the Court of Magistrates in Malta or Gozo, as the case may be, sitting as a court of criminal judicature, and the provisions of the Criminal Code relating to the procedure before such court and to the award and execution of the punishment imposed by such court shall apply in the case of such proceedings.

(2)Notwithstanding the provisions of the Criminal Code, the Attorney General shall always have a right of appeal to the Court of Cri m in al App eal f ro m any j udg m ent g ive n b y th e Co urt of Magistrates in respect of criminal proceedings arising out of the provisions of this Act. Proceedings. Amended by: IX. 2003.81; XXII. 2011.5; III. 2013.63. EXCISE DUTY

(3)Every offence under this Act shall for all ends and purposes of law be deemed to be a crime within the meaning of the Criminal Code and shall be dealt with as such.

(4)Those proceedings shall commence within ten years from the date of the commission of the offence. Saving of other laws. Amended by: II. 2002.24; IX. 2003.

2. The possession of any licence issued by the Police or other authority to any authorised tax warehouse keeper or other person in his employment or acting under his instructions for any purpose other than those specified in this Act, shall in no way exonerate such authorised tax warehouse keeper or other person from any obligation or any liability under this Act or any regulation made thereunder for any offence against the provisions of this Act or of any regulation made thereunder. Appropriation and seizure of goods, security, etc. Amended by: II. 2002.25; IX. 2003.81; XXII. 2011.
3. 38.

(1)If any duty due under this Act shall, for any reason whatsoever, remain unpaid after the time within which it is payable, it shall be lawful for the Commissioner to appropriate all or part of any security which may be provided for under any regulations, and which is equivalent to the duty which remained unpaid, and if the said deposit or other security prove to be insufficient, to seize and take possession of all or any excisable goods which are kept in the authorised tax warehouse or any premises in the use or possession of the authorised tax warehouse keeper or any person in his behalf, and all or any excisable goods and any machinery, equipment, receptacles, utensils, materials and ingredients used in the production of excisable goods within the precincts of the authorised tax warehouse or in any premises in the use or possession of the authorised tax warehouse keeper or of any person in his behalf which shall in virtue of this sub-article also constitute a security for such duty, and to sell such excisable goods, machinery, equipment, receptacle s, utensils, mate rials and ingredients by public auction after giving not less than eight days prior notice of the sale or by public call for tender as may be prescribed. Such notice shall be given to such authorised tax warehouse keeper, if present in Malta, or to his agent, if any, or failing both shall be published in the Gazette: Provided that such excisable goods may at the discretion of the Commissioner, after such eight days’ notice, be destroyed.

(2)The cost and expenses of the seizure and sale, and the duty recoverable under such sale, shall be a first charge on the proceeds thereof. Such proceeds shall be applied in or towards the payment of such costs and expenses and in or towards the payment of the duty, and the surplus, if any, shall be paid to the authorised tax warehouse keeper.

(3)Any person aggrieved by any action of the Commissioner made in virtue of sub-article

(1)shall have the right to oppose such action by filing an application before the First Hall of the Civil Court within eight days from the date on which the notice of the seizure is given by the Commissioner, or on which a notice is given by the Commissioner that he has appropriated any security given.

(4)Any application made in virtue of sub-article

(3)shall be EXCISE DUTY served on the Commissioner within two days of filing, and the cause shall be appointed for hearing with urgency, from day to day until judgment. No appeal shall lie from the determination of the issue by the Civil Court, except on a point of law. Such appeal shall be made by application to the Court of Appeal within six days from the decision of the Civil Court, First Hall.

(5)The Rule Making Board set-up under article 29 of the Code of Organization and Civil Procedure shall make rules providing for the manner in which any application under this article shall be drawn up, and for the procedure to be followed in any such application. Such rules shall provide that such proceedings shall be conducted expeditiously and with urgency and the rules for the production of evidence shall be drawn up accordingly.

1. If, when the things are demanded, seized due to the lack of payment of the duty, or for any other reasons which result in the confiscation, or in proceedings for the collection of any monetary penalty or otherwise, according to this Act, an issue arises as to whether the duty due on those goods was paid or if those goods were imported or exported or landed according to law or regarding the place the goods came from, in each of these cases the onus of proof is on the person who makes the claim or the accused against whom the proceedings are taken, as the case may be. 39A. The Commissioner may require a sworn declaration to serve as proof in the absence of more specific customs documents or to serve as ulterior proof after all the required documentation has been provided. Proof of payment of duty and other proof. Added by: III. 2013.
3. The powers of enforcement for collection of duty under the Import Duties Act and its subsidiary legislation apply mutatis mutandis for collection of excise duty due under this Act. Collection of excise duty. Added by: VII.2022.
4. Ulterior proof. Added by: XII.2023.
5. EXCISE DUTY EXCISE DUTY FIRST SCHEDULE Amended by: VII.1996.
6. Substituted by: XXV. 1997.
7. Amended by: XIV. 1998.
8. Substituted by: IX. 2001.9; II. 2004.57; II. 2005.
9. Amended by: IV. 2011.67; XIII. 2015.135; XV. 2016.34; XVI. 2017.68; VII.2018.75; IX.2025.
10. First Column List of Excisable goods Second Column Relevant Schedule Alcohol and alcoholic beverages to the extent as shown in the relevant schedule to this Act. Second Schedule Manufactured tobacco to the extent as shown in the relevant schedule to this Act. Third Schedule Energy products to the extent as shown in the relevant schedule to this Act. Fourth Schedule Mobile Telephony Services. Fifth Schedule Cement. Schedule Five A Pneumatic Tyres Schedule Five B Waters to the extent as shown in the relevant schedule to this Act. Schedule Five C Chewing gum, whether sugar coated or not, to the extent as shown in the relevant schedule to this Act Schedule Five D Non-alcoholic beverages to the extent as shown in the relevant schedule to this Act Schedule Five E Plastic sacks and bags to the extent as shown in the relevant schedule to this Act Schedule Five F Toiletries and washing preparations to the extent as shown in the relevant schedule to this Act Schedule Five G Construction components and other fixtures to the extent as shown in the relevant schedule to this Act Schedule Five H Electronic cigarettes and refill containers Schedule Five I EXCISE DUTY SECOND SCHEDULE ALCOHOL AND ALCOHOLIC BEVERAGES Amended by: VII. 1996.
11. Substituted by; VII. 1997.2; XXV. 1997.5; IV. 1998.2; IX. 2001.9; II. 2002.26; II. 2004.
12. Amended by: L.N. 118 of
13. Substituted by: L.N. 425 of
14. Amended by: II. 2009.33; IV. 2011.68; XXII. 2011.5; XII. 2014.71; XIII. 2015.136; XV. 2016.35; XVIII.2021.53; L.N. 177 of 2022; L.N. 43 of 2024; IX.2025.56; III.2026.
15. Description of excisable goods Rate of Excise Duty BEER €4.60 per hectolitre by the actual alcoholic strength by volume expressed as percentage €2.30 per hectolitre If produced by small and independent breweries with an annual production not exceeding two-hundred thousand by the actual alcoholic strength by volume (200,000) hL of beer. expressed as percentage €0.54 per hectolitre P r o d u c t s c o n t a i n i n g a m i x tu r e of beer with nonalcoholic drinks and beers not exceeding 3.5% of the actual by the alcoholic strength alcoholic strength by volume. by volume expressed as percentage The term "beer" covers any product falling within C u s t o m s T a r i ff H e a d i n g N o . 2 2 0 3 or a n y p r o d u c t containing a mixture of beer with non-alcoholic drinks falling within Customs Tariff Heading No. 2206, in e i t h e r c a s e w i t h an a c t u a l a l c o h o l i c s t r e n g t h by v o l u m e exceeding 0.5% vol. WINE OF FRESH GRAPES
16. If produced by independent small wine producers which produce on average less than twenty-thousand (20,000) hL of wine per year
17. The term "still wine" covers all products falling within Customs Tariff Heading Nos. 2204, 2205 and 2206 except sparkling wine as defined in paragraph 2 below: €0.205 per litre €0.1025 per litre EXCISE DUTY which have an actual alcoholic strength by volume exceeding 1.2% vol., but not exceeding 15% vol., provided that the alcohol co n ta in ed in the finished product is entirely of fermented origin; which have an actual alcoholic strength by volume exceeding 15% vol., and not exceeding 18% vol., provided they have been produced without any enrichment and that the alcohol contained in the finished product is entirely of fermented origin.
18. The term "sparkling wine" covers all products falling within CN codes 2204 10, 2204 21 06, 2204 21 07, 2204 21 08, 2204 21 09, 2204 29 10 and 2205 which: are contained in bottles with "mushroom stoppers" held in place by ties or fastenings, or they have an excess pressure due to carbon dioxide in solution of three

(3)bar or more; have an actual alcoholic strength by volume exceeding one point two per cent (1.2%) vol., but not exceeding fifteen per cent (15%) vol., provided that the alcohol contained in the finished product is entirely of fermented origin.". FERMENTED BEVERAGES

1. The term ‘still fermented beverages’ covers all products falling within Customs Tariff Heading Nos. 2204 and 2205 but not falling under Wine of Fresh Grapes above, and products falling within Customs Tariff Heading No. 2206, except other sparkling fermented beverages as defined in paragraph 2 below and any product covered under Beer above: having an actual alcoholic strength by volume exceeding 1.2% vol., but not exceeding 10% vol., having an actual alcoholic strength by volume exceeding 10% but not exceeding 15% vol., provided that the alcohol contained in the product is entirely of fermented origin.
2. The term ‘sparkling fermented beverages