Category: Articles

Transport Malta has recently issued guidelines for car importers and car dealers, of both new and used vehicles imported from the UK and other non-EU countries.

 

The following are the guidelines for the registration process of such vehicles in Malta as of the date in which the United Kingdom (UK) (comprising England, Scotland, Northern Ireland and Wales) leaves the European Union (EU) on the 31st December 2020 (the withdrawal date), in the eventuality that such event occurs without the implementation of a withdrawal agreement.

New guidelines are also available for both new and used vehicles imported from non-EU countries.

1. Registration of new vehicles imported from the UK after the withdrawal date:

a) All new vehicles that are accompanied by a Certificate of Conformity (CoC) referring to a UK type-approval cannot be registered in Malta after the withdrawal date. A UK type-approval may be recognised from the type-approval number or from the type-approval mark “e11” that is shown on the CoC.

b) All new vehicles imported from the UK after the withdrawal date will only be registered in Malta if they are accompanied by a CoC referring to a type-approval issued by a Type-Approval Authority of any other EU member state.

c) Any UK type-approval automotive items cannot be placed on the local market after the withdrawal date.

d) Besides the applicable registration tax, Value Added Tax (VAT), and other fees (such as administration and registration plates fees), new vehicles which will be imported from the UK after the withdrawal date will also be subject to the applicable customs duties (10%) and VAT (18%) upon their registration in Malta.

 

2. Registration of used vehicles imported from the UK and from other non-EU countries after the withdrawal date:

a) After the withdrawal date, all used passenger cars (M1), goods carrying vehicles (N1) and motorcycles (L) registered in and imported from the UK will only be registered in Malta if they are either accompanied by:

i. a registration certificate referring to a type-approval issued by a Type-Approval Authority of any other EU member state; or

ii. a Single/Individual Vehicle Type-Approval Certificate issued by a Technical Service designated by a Type-Approval Authority of any EU member state.

b) All used passenger cars (M1), goods carrying vehicles (N1) and motorcycles (L) registered in the UK on or before the withdrawal date but imported from the UK after the withdrawal date shall continue to be registered in Malta under the same procedure that was applicable before the withdrawal date, and shall therefore not be bound by the conditions stipulated in the preceding paragraph. However, besides the applicable registration tax, VAT, and other fees (such as administration, inspection and registration plates fees), all used vehicles which will be imported from the UK after the withdrawal date will also be subject to the applicable customs duties and VAT.

c) Used passenger cars (M1), goods carrying vehicles (N1) and motorcycles (L) imported from other non-EU countries (such as Japan) will continue to be registered in Malta only if they are accompanied by a Single/Individual Vehicle Type-Approval Certificate issued by a Technical Service designated by a Type-Approval Authority of any EU member state.

d) All the other conditions (Registration and Licensing of Motor Vehicles Regulations (S.L. 368.02)) for the registration of used vehicles in Malta, including those imported from the UK, shall apply. A minimum Registration Tax will also be applicable to all USED M1 vehicles which are five (5) years or older since the date of first registration/manufacture.

e) Vehicles imported from the UK on or before the withdrawal date, can be registered in Malta under the normal procedures. Owners have 30 days to register such vehicles. Therefore:

i. Authorised motor dealers already in possession of USED vehicles imported from the UK, or have such vehicles arriving in Malta by the 31st of December 2020, may register them after the 1st of January 2021 under the normal procedures (i.e. no customs duty or VAT will be applicable); and

ii. Documents (a copy of the Registration Certificate, Notice of Arrival and Invoice) of USED vehicles already in stock and bearing a UK registration plate must be deposited to Transport Malta offices by not later than the 23rd of December 2020.

f) After the withdrawal date (i.e., as from the 1st of January 2021), all used vehicles imported from the UK shall be categorised as used non-EU vehicles. Payment of customs duty and applicable VAT should be made at the Customs office prior to registering such vehicles with Transport Malta.

 

Useful Links:

https://mccaa.org.mt/Section/Content?contentId=3754

https://customs.gov.mt/brexit/notices-by-the-customs-department

Malta Chamber of SMEs officially meets Hon Minister Miriam Dalli

The Malta Chamber of SMEs has officially met new Minister Miriam Dalli to discuss issues falling under her portfolio.

SME Chamber President Paul Abela emphasized how important it is to give businesses the necessary breathing space at the moment, giving them the ability to extend their loan repayments on a long time-frame to give them time to make up for this year.

Mr Abela mentioned Libya as one of the avenues Malta needs to look into in order to make best use of opportunities there for economic regeneration for the good of both countries.

The SME Chamber also emphasised on the need to formalize the economic regeneration plan, including stakeholders and business players in this plan. Businesses should be guided in their investment needs to support the priorities of the country. Aggressive grants should be put in place in order to sustain such investments.

A number of support measures were also discussed in order to set up essential schemes that would help businesses re-invent themselves and change their business models.

The Wage Supplement was another aspect discussed, on which the Minister said that feedback presented by the key stakeholders, including the SME Chamber, was being evaluated and work was ongoing.

Other subjects discussed were Energy Efficient Investments, Tourism and Banking Issues.

Malta Chamber of SMEs and the Minister for Research, Innovation and the Co-ordination of Post COVID-19 Strategy Owen Bonnici agreed on the need to further co-operation between the two entities in favour of research which can be of benefit to small and medium sized enterprises.

In a meeting held between Minister Bonnici and the Malta Chamber of SMEs, they agreed that research can be a game-changer for start-ups and small enterprises in order to apply new systems or solutions which can make a difference in their operations.

Minister Bonnici explained that the government is intent to work hand in hand with the SME Chamber in order to identify more research and innovation solutions which are applicable to small and medium sized companies, so that they can grow and expand.SME Chamber President Paul Abela mentioned how encouraging it is to have a focused Minister for research and innovation, an area Malta has struggled with for a very long time. “We believe that SMEs have a lot to contribute in this area and, with focused efforts, we can together bridge the existing gaps to tap into this essential resource and reach Malta’s targets. This would be an absolute record achievement for Malta.”

A discussion also took place about the co-ordination of the post COVID-19 strategy, and a number of priorities for the furtherance of economic and social progress were discussed.

Brexit: A call for Maltese and Gozitan businesses to maintain ongoing contact with the government on support for their business under Brexit 

As Brexit edges closer, Maltese and Gozitan businesses are being given a helping hand by the government. While the government has been making preparations, Maltese businesses must continue to prepare themselves and express their concerns when they encounter new challenges as a result of the UK leaving the European Union.

This message was conveyed by Minister for Enterprise Miriam Dalli and Parliamentary Secretary for European Funds Stefan Zrinzo Azzopardi during a webinar organised by the Malta Chamber of Small and Medium Enterprises in collaboration with Business First. This was an opportunity for businesses to communicate about the preparations that need to be made and to understand the new realities that Brexit will bring.

During the webinar, it was said that the relationship between the two countries needs to be strengthened and that it is in Malta’s interest to attract British companies or companies with a strong presence in the United Kingdom.

Minister Dalli said that, faced with Brexit, the priority of this government is to reduce negative impacts on business, and for Maltese businesses to make good use of the opportunities that can develop. She added that, in the coming weeks, a specific website will be announced, where information on Brexit will be provided and where operators from the different economic niches can be contacted.

“I urge you to use this practical help, but also to learn about existing aids in the form of incentives, including that of the Business Change and Transformation. Through this scheme, you can receive up to €5,000 as a refund on the costs of business consultants. These incentives can help you adapt your businesses in response to the changes that Brexit will bring about,” Minister Dalli said.

Parliamentary Secretary Stefan Zrinzo Azzopardi reminded that EU laws will cease to apply to the United Kingdom after the 31^st of December 2020. The Parliamentary Secretary held that the government has been working so that departments and agencies are prepared and able to assist businesses in the best possible way. He explained that administrative resources have been increased in entities such as Customs, in order to cope with the increased activity that Brexit will bring. Specific courses aimed at commercial entities are being held to prepare them for the new scenarios. He also referred to other preparations being made by Identity Malta to register British residents in Malta, as well as to the work being done by the Ministry for Health and the Medicines Authority regarding the importation of medicines, 80% of which are imported from the UK.

The Malta Chamber of SMEs’ Chief Executive Abigail Mamo emphasized the importance of preparing businesses for Brexit.

During this webinar, representatives from the Customs Department, MCCAA and Malta Enterprise replied to questions made by particiants.

Anyone wishing for more information should visit the site www.brexit.gov.mt, which is constantly updated with notices and informative material. Direct assistance is being offered to citizens via the Brexit helpline on number 153 and to businesses on the BusinessFirst helpline on number 144. Help is also provided via e-mail on the address , where more individual and specific questions may be addressed.

Covid has necessitated a significant level of close contact with enterprises to monitor the fluid and fluctuating conditions in order to be able to respond with adequate policy proposals.  

The SME Chamber’s latest study, carried out in November, on the state of business highlighted how almost 80% of businesses reported lower levels compared to 2019 with 55% reporting a decrease of over 30%. Another 10% reported staying in the same situation as the previous year and 11% reported an improvement. 

Amongst the sectors experiencing an improvement were those in household goods, finishings and electronics. The sectors that experienced a downturn were the majority, more prominently however Accommodation and Tourism Services, Catering and Restaurants, Clothing Accessories and Jewellery, Entertainment and Events, Weddings and the Leisure sector, Advertising and Marketing, Hair and Beauty, as well as Transport Services. 

Of concern was the feedback received by businesses where close to 40% did not foresee being able to survive for longer than 12 month, all things remaining equal. 37% also said that they were unable to answer this question. 

When asking businesses on whether they were foreseeing making any changes during the coming 6 months, 50% expressed that they had no plans. Other choices which scored highly were Selling and Marketing Online, Diversifying, Reduction in Employees and Downsizing. 9% said that they planned to invest more, as opposed to 7% that planned to close down. 

The results show clearly how heavily the uncertainty was weighing on businesses, 70% ranking it as their biggest concern at the moment. This was followed at 53% by very low turnover, the concern of government aid stopping at 33%, followed closely and by order of ranking, by not having an existent market, paying employees, rental costs, piling debt and increases in bank-related costs. 

When asked about the wage supplement, those benefitting and those not both carried out a degree of layoffs, with a high percentage, in both cases, however saying that they did not lay off anyone.  

In terms of aid necessary and investment priorities, businesses said that grants are a priority as opposed to tax credits or repayable loans. IT solutions, including eCommerce sites, automation software, digital marketing and subscription fees was another priority ranked highly by businesses.  

Apart from investing however businesses also outlined what other support they deem necessary by the government. These included: 

• Help with rental costs 
• Cost of banking facilities 
• Cost of shipping when selling online 
• Government to guide businesses with strategy 
• Relief from piling tax burdens and financial commitments 

The SME Chamber also asked businesses to share their experience in terms of how they mitigated the impact of Covid. At 35%, the majority did not do anything to mitigate. 29% of respondents however said that they came up with special promotions and offers to boost business, 20% started their delivery service, 18% migrated to online, 15% trained employees, 14% refurbished and another 14% diversified their operation. 

Human resources was one of the other big concerns of our members, mostly small and tight knit teams. We have therefore asked businesses to tell us about their struggles, apart from costs, were they experiencing. Highest ranking were the uncertain working environment and employees not feeling that their job is secure, issues with mental health, lack of social contact and low levels of morale. 

The festivities are the most important peak for businesses, the peak that makes up for other slower periods. This year the festivities are still expected to peak, yet the peak can only be called such when compared to the rest of the record slow year. 

Early figures are coherent with this assessment and though business is by far lower than last year, on average businesses appreciate the situation and therefore do not expect any better. There are however segments that are suffering more than others and sacrificing their businesses for the benefit of health and the rest of the economy, including snack bars, bars, entertainment establishments, events, performers and retail outlets selling occasion wear,  that are fairing much worse than others. 

The Malta Chamber of SMEs has taken up a number of initiatives to boost business in Malta. 

 

Black Friday Campaign 

The SME Chamber is a driver for Black Friday in order to ensure that Maltese businesses do their utmost on this day and feature prominently when consumers are looking for the best places to spend money at.  

This year’s Black Friday initiative sought to highlight all our members participating in the initiative, also including who is carrying offers online and who is delivering. This information was all included in our own ‘Guide to Black Friday’ that gave visibility to consumers to be able to plan their shopping ahead.  

 

Valletta 

From the feedback gathered and statistics, it became evident how Valletta was standing out in terms of the negative impact of Covid. In fact Valletta was turning into a silent city and businesses were on the verge of desperation.  

Through discussions with the Government and the support primarily of the Tourism Ministry and the Valletta Cultural Agency, a few meaningful initiatives were carried out to highlight Valletta as a place to visit for the festivities. 

 

Shop Local Campaign  

This is a campaign many members asked us to carry out to support them during this difficult time. This campaign was also suggested for the government to carry out at a national level in order to encourage consumers to support local businesses and save jobs by giving them priority during their spending.  

This campaign was launched at the beginning of December .

 

Wage Supplement 

Not all businesses could benefit from the initiatives highlighted above and therefore their survival did not depend on consumption but government support, while they remained closed or with close to no sales. 

The SME Chamber has therefore entered into discussions with the government in order continue ensuring that the Supplement helped those that needed it the most.  

The European Union’s medicines agency has moved forward a meeting to assess the Pfizer-BioNTech coronavirus vaccine for provisional approval to December 21.

The European Medicines Agency (EMA) is planning to issue its decision on the BioNTech and Pfizer vaccine on December 21, eight days earlier than planned.

The EU has come under increasing pressure to approve the vaccine, following emergency approvals from the UK and the US earlier this month.

Health Minister Chris Fearne told parliament on Tuesday that Malta was among the countries which had urged the EMA to move the approval process forward, without sacrificing any safeguards.

Malta has secured 500,000 jabs of the Pfizer vaccine.

Fearne said the European Commission is expected to approve the vaccine procurement within a couple of days of its approval by the EMA. Deliveries to several EU countries including Malta will then start within days.

“This means the first vaccinations in Malta could take place before the end of the year,” Fearne said.

Superintendent of Public Health Charmaine Gauci said the vaccine “could arrive a few days earlier than expected” but that it was too early to say.

A fortnight ago, BioNTech and Pfizer submitted an application to the EMA for a conditional marketing authorization for their COVID-19 vaccine.

The vaccine is currently considered one of the promising potential means of containing the Corona pandemic.

Covid vaccine not a ‘magic wand’

President of the EU Commission, Ursula von der Leyen tweeted that she welcomed the EMA’s decision to bring the meeting forward.

She added: “Likely that the first Europeans will be vaccinated before end 2020!”

Every day counts – we work at full speed to authorise #COVID19 vaccines that are safe & effective.
 
I welcome @EMA_News bringing forward its meeting to discuss the @pfizer/BioNTech vaccine, before Christmas.
 
Likely that the first Europeans will be vaccinated before end 2020!

— Ursula von der Leyen (@vonderleyen) December 15, 2020

Source: TimesofMalta.com; dw.com

Most of us will eagerly be turning the page on 2020 and looking forward to 2021. In fact, 2021 is expected to be better, not a difficult feat to achieve, with most of the aspirations hanging on the vaccine.

While we will all gladly swap any given year with 2020, 2021 is not presenting us with a clear trajectory.

2021 will see the slow return and gradual gearing up of the normal economy, something that will be consolidated between 2022/2023. 2021 will in fact still retain a number of unknowns – when will we be clear of the virus? How many tourists will Malta be attracting? What is the size of our economy?

What we want to avoid is going into 2021, such an important year for recovery, with an attitude of nonchalance, lowering our guard on preparation just because 2021 will be a better year than 2020.

 

In reality we must all work twice and even triple as hard to make 2021 a year of recovery. The reality is also that our contracted economy will not have space to accommodate the number of economic operators we had prior to Covid and certain sectors will take long to regain viability.

We must go into 2021 better prepared to turn the losses into profitability, in a much shorter timeframe. In a state of great fragility, following 2020, businesses do not afford wasting resources, they do not afford waiting around for clients that will not return in time to save their business.

Malta’s economy will have to restructure, and this is something we have been hearing for months about, yet the direction of restructuring is not known. This is something Malta must rectify in the immediate because we must shorten waiting time, we must redirect resources and funds from unsecure and questionable activity into the new lifelines.

Many businesses are at the moment evaluating their position and some are finding taking diversification decisions difficult since there is no clear guidance. Businesses know that due to Covid some doors will remain closed for now, but which doors Malta will seek to open, in terms of alternative economic pillars, is still unknown.

Such visibility and clarity is also essential from a banking perspective. Given the facilities made available thanks to the MDB, increasing the debt levels has so far been quite accessible, going into further debt however, either to sustain current business activities or to invest into re-structuring and diversification, will be a challenge.

Going into further debt is risky, yet investment and business redirection will be necessary for most businesses. SMEs should be supported through aggressive grants that will cover a significant part of the investments, not just any investments, but investments that will support Malta in its economic restructuring and redirectioning.

Economic recovery is a collective effort and responsibility. Our country does not afford stakeholders working independently, stakeholders must work together and in sync.

The Recovery Plan for Europe, the EU’s long-term budget, coupled with the NextGenerationEU initiative, will be the largest stimulus package ever financed through the EU budget. Malta needs to take the opportunities offered by greater flexibility in State Aid regulations to aggressively support businesses make the necessary investments, by which, they will be able to enter into the economic sectors that will re-ignite Malta’s economy, improve their business models into more sustainable ones and advance on the digital fronts.