Movement of goods during the transition period (Annexes 19 and 21)

Movement of goods during the transition period (Annexes 19 and 21)

In general, the goods They will only be allowed to enter and leave Gibraltar overland.

However, certain things are established exceptions where entry and/or exit by sea is permitted, and which are summarized as follows:

• Supplies at the port and airport of Gibraltar.

• Completion of special regimes.

• Sea transport from Algeciras to Gibraltar (less than 2 hours) is permitted under T2GI, conditional upon full disembarkation in Gibraltar.

The requirements for the application of these exceptions are detailed in the following sections relating to the movement of goods.

For a better understanding, it is necessary to differentiate two scenarios:

1. Movements of goods with EU status from the customs territory of the Union (hereinafter CTU) to Gibraltar and vice versa (Annex 19)

2. Movements of goods from third territory to Gibraltar and vice versa (Annex 21)

4.1) EU goods movements from the TAU to Gibraltar

Goods destined for Gibraltar from any point in the TAU must be covered by a export declaration. The export will be direct if the export declaration is submitted to the DCP and will be indirect if it is submitted to any customs office other than the DCP. In any case, the physical departure of the goods must take place through the DCP located in La Línea or Algeciras (note that Sagunto will not act as a DCP in the movement of goods of the Union between the TAU and Gibraltar). In general, this scenario contemplates land movements involving La Línea, with the exception of a specific sea movement involving the Algeciras DCP.

Upon arrival of such goods subject to prior export to the DCP, a transit declaration will be submitted. T2GI through the NCTS system, with such DCP acting as the customs office of departure and Gibraltar Customs as the customs office of destination for that transit. 

Once the T2GI has been admitted, cleared and released from the DCP, the circulation towards Gibraltar will begin, where the procedure will be finalized by the competent Customs in Gibraltar. This will send the DCP the arrival notice, the notification of completion results (within three working days of arrival), as well as proof that the goods have been released for free circulation in Gibraltar and the indirect taxes (transaction tax and excise duties) have been settled or included in a special tax regime in Gibraltar, whether it be a tax warehouse, temporary tax import or inward processing.

If that T2GI is not finalized correctlyThe DCP will settle the VAT and, where applicable, the corresponding IIEE, given the presumed irregular entry into the TAU.

The text of the Agreement includes specific periods of stay depending on the special tax regime:

• Temporary import regime for tax purposes and inward processing for tax purposes: up to three months unless there are duly justified exceptional circumstances that allow for a longer period or an extension of the period initially granted. The maximum period will in no case exceed nine months.

• Fiscal deposit regime: A minimum period of one month up to nine months is expected. In the case of supplying ships and aircraft, no minimum period of one month is established.

The finalization of such regimes can only take place through:

• Free movement of goods in the Gibraltar market, submitting the appropriate proof of settlement of the transaction tax and the Gibraltar excise duties.

• Re-export outside of Gibraltar.

• Destruction, sending the appropriate evidence to the DCP.

If the completion does not occur within the deadline or if any irregularity arises during the stay of the goods under the special tax regime As with the removal of goods from customs surveillance, Gibraltar will demand the applicable VAT and excise duties in Spain and then transfer that amount.

As an exception to the land entry into GibraltarEntry through the port is permitted Gibraltar goods from the Union sent directly from the Algeciras DCP must arrive within a maximum of two hours from departure and the vessel must be fully unloaded in Gibraltar.

4.2) Movements of goods from Gibraltar to the customs territory of the Union

Goods that are in free circulation in Gibraltar or those included in a special tax regime leaving Gibraltar destined for the Union must be presented to the customs authorities in Gibraltar for the purpose of being transferred to the Union, through the NCTS system, by submitting a declaration T2GIGibraltar acting as the departure customs office and the DCP as the destination customs office.

Before the goods leave Gibraltar, a summary entry declaration must be submitted in Spain. (ENS), given that Gibraltar is considered a third territory during the transition period and that, as a consequence of Brexit, the exemption from ENS provided for Gibraltar in the Union customs code and its implementing regulations has disappeared.

Once the T2GI has been admitted, cleared and released, the DCP, acting as the destination customs office, must send an arrival notification and notification of the transit completion results. If the T2GI is not finalized correctlyGibraltar must settle the applicable VAT and Special Tax in Spain and subsequently transfer that amount to Spain.

Goods released for free circulation in Gibraltar or those obtained in that territory have the status of third-party goods until the end of the transitional period, with the sole peculiarity that there will be no tariffs on trade between the TAU and Gibraltar. Thus, once the transit has been completed correctly, in the DCP they may be subject to re-export, release for free circulation or consumption, as well as being subject to a T1 to any other point in the Union.

Goods that were previously subject to a special tax regime are goods that continue to retain their community status, so upon their return they may be subject to a declaration of release for free circulation, benefiting from the customs and tax regime for returned goods.

Finally, it should be mentioned that it makes possible the goods exit for supplying ships and aircraftdirectly through the port or airport of Gibraltar. The appropriate customs formalities will be carried out at the DCP, with the exception of the physical presentation of the goods, since they will leave Gibraltar directly through the port or airport.

4.3) Movement of goods from third territories to Gibraltar

Goods originating from third territories destined for Gibraltar must be subject to a H1 declaration in the DCP. In the H1 declaration, you can declare regime 40 (release for free circulation), 51 (inward processing), 53 (temporary import) and 71 (customs warehouse).

In this scenario, the three DCPs contemplated by the Agreement come into play. The dispatch formalities will be carried out in accordance with Union regulations as well as everything related to special regimes (authorization, supervision…).

The dispatch procedures related to prohibitions and restrictions They will be carried out at the first point of entry into the Union. All of this is without prejudice to the commercial licenses and authorizations that must be granted by the competent authorities in the United Kingdom to economic operators in relation to operations or activities carried out in Gibraltar.

Tariff quotas do not apply. Neither preferences nor suspensions.

As to the procedures Specifically:

1) Goods from third territories will be presented in the DCP as well as a declaration H1 with any of the aforementioned regimes.

2) Once the H1 has been cleared, the goods must be transported to Gibraltar under special transit procedures. T1GI, with the DCP acting as the Customs of departure and Gibraltar as the Customs of destination.

3) The DCP will settle and collect import duties corresponding if the declared regime is the dispatch for free circulation (regime 40), being recorded as own resources of the United Kingdom. No import duties will be levied if the declared regime is 51, 53 or 71.

4) T1GI successfully completed (arrival message and transit completion results sent successfully), there are three possibilities:

• That the goods be put into free circulation in the Gibraltar market (if the regime declared in the H1 is 40)

• That the goods are included in a special tax regime in Gibraltar (if the regime declared in the H1 is also 40)

• That the goods are included in a special customs regime (if regime 51, 53 or 71 was declared in the H1).

5) If the T1GI was not completed correctly, the DCP will settle VAT and the IIEE applicable in Spain due to presumed irregular introduction into the TAU. Furthermore, it will be necessary to make an accounting correction so that the previously settled import duties are recorded in the accounts as own resources of the Union and not of the United Kingdom. If no import duties were levied because the goods were included in a special customs regime, the DCP will directly settle such duties, recording them in the accounts as an own resource of the Union.

A maximum period of three months is established from the date the T1GI release was granted by the DCP to finalize the special transit.

The periods of stay in the tax regimes will be those mentioned above in the EU-Gibraltar scenario and those of the customs regimes will be those established in the Union regulations. Before the breaches of the regime During our stay in these places, we must differentiate:

• If the goods are under a special tax regime, Gibraltar will settle and transfer to us the applicable VAT and excise duties in Spain.

• If the goods are under a customs regime, the DCP will be informed of the non-compliance and will settle the import duties, which will be recorded in the accounts as UK own resources. Gibraltar will settle its transaction tax and Gibraltar excise duty, if applicable.

It should be noted that, exceptionally and duly justifiedThey can arrive by sea directly to the port of Gibraltar from third territories, without T1GI through, merchandise that is linked to inward processing, temporary import and customs warehousing (for supplies).

4.4) Goods originating in Gibraltar destined for a third territory

First, goods leaving Gibraltar must be presented to the Gibraltar customs authorities and be subject to a special transit up to the DCP:

• It will be a T2GI if the goods in question are goods in free circulation in Gibraltar (because they were obtained there or because the transaction tax was paid at the time) or goods linked to a special tax regime.

• It will be a T1GI if it is merchandise linked to a special customs regime.

If the T1GI or T2GI is completed without incident, it will be subject to the appropriate declaration in the DCP, depending on the customs destination. If it is completed with incidents, we must differentiate:

• In the case of T2GI: Gibraltar will settle and transfer to us the VAT and Special Tax applicable in Spain. The DCP will make an accounting correction and the UK tariff will become a European Union tariff.

• In the case of T1GI: The DCP will settle the tariff, which will be recorded in the accounts of the European Union and not the United Kingdom, as well as the VAT and the excise duty applicable in Spain.

It will be permitted, if there are exceptional and duly justified circumstances, that goods leaving Gibraltar by sea to third territories, from temporary import regimes as well as inward processing, and from customs warehouses for supplies. In these cases, T1GI will not be presented from Gibraltar to the DCP.

• In the case of processing and temporary importation, a re-export declaration must be submitted to the DCP 48 hours before the effective departure.

• In the case of the customs warehouse, physical exit is allowed both by port and by airport, and the re-export declaration must be presented in the DCP.