|
Matthew Vella
The Ministry for Rural Affairs and the Environment has confirmed that it has commenced verification exercises on large consignments of non-EU food products, to check on companies that imported large stocks of agricultural produce over and above usual amounts.
Importers fearing the imposition of new tariffs and duties on non-EU products after 1 May, 2004, reportedly overstocked on products such as beef and sugar, amongst others, to avoid paying the common external tariff imposed by the EU on products imported from outside the bloc.
Ministry spokespersons told MaltaToday that according to EU Directive 1972/2003, the ministry is obliged to carry out ‘investigations’ on those companies whose importation of non-EU products before 1 May went beyond historical levels of importation.
“We are obliged to carry out these checks according to EU legislation on those companies which have imported more than traditional levels of importation. These companies have been informed by the permanent secretary since January of this year about possible checks,” Ministry spokespersons said.
This means that companies that imported large stocks of food prior to the 1 May, are liable to be levied with the common external tariff, a duty mechanism that safeguards EU production from cheaper, non-EU competition. Products such as beef, for example, imported from high-quality countries of origin such as New Zealand, Argentina or Canada, today carry a duty of 12.8 per cent on value of beef imported and an additional tariff of around two euros on every kilo. Before accession into the EU, beef products imported from the international market carried duty of 10c on every kilo.
Government will now be seeking to charge all those companies that sought to avoid the CET by importing higher amounts than usual of non-EU food products before 1 May with the tariffs and duties applicable after accession.
According to the EU directive, issued with the aim of avoiding speculation on food prices in the run-up to accession, all surplus stocks of certain sugar products, frozen beef, and milk and cream containing added sugar or sweetener, will be levied with the common external tariff. Surplus stocks will be determined according to historical levels of importation, which in Malta are based on averages of three-year import levels, and the circumstances in which stocks were built up.
Speaking to MaltaToday, Foster Clark Products director Charles Busuttil said companies that overstocked sugar products prior to the 1 May, 2004, should have known that the Government would be subsidising the increase in sugar prices at 100 per cent for the first year of accession:
“I assume that Foster Clark Products Limited is liable to the verification exercise as any other company operating in Malta,” Busuttil told MaltaToday. “As we are a 98 per cent export company, this does not affect us in any way. As for the 2 per cent sold in Malta, this would have an affect, but the government will be subsidising the difference at a digressive rate for a period of seven years.”
Sugar is in fact the most heavily-subsidised of agricultural products, a deal secured in the negotiations between Malta and the EU, where any increase in sugar prices arising from the tariffs imposed on non-EU sugar imports, are to be subsidised.
Like sugar, beef products also faced an impending price hike. EU beef will be charged at the higher, internal price of EUR4.50 per kilo. As a non-member, Malta imported EU beef at EUR2.50 per kilo, a price subsidised by the EU to enable Member States compete with other beef producers on the international market. As a Member State, EU beef is now imported at the EU’s internal price, but Malta will be fronting an EUR850,000 subsidy in 2004 to help importers keep prices stable.
Between January and 30 April 2004, a total of 1,810 metric tonnes of beef were imported into Malta from the international market. Between 1998 and 2002, an around 5,800 metric tonnes of beef were imported on average into Malta every year from the international market.
The Government will also carry out an inventory of stocks available as at 1 May, and notify the European Commissioner of the quantity of products in surplus stock by 31 July 2004.
matthew@newsworksltd.com
|
