Commercial goods entering Gibraltar to continue through customs even after border fluidity begins

Commercial goods entering Gibraltar after the Treaty comes into effect will still have to go through customs controls, even once the border becomes more fluid for people.

That’s one of the key messages in a new set of business FAQs published by the Government on the implementation of the UK-EU Treaty.

There will be measures in place to protect local businesses and prevent Spanish businesses from masquerading as personal sellers online or on Facebook.

The guidance says only goods brought into Gibraltar in personal luggage, and genuinely for personal use or as gifts, will be able to avoid commercial customs processes and transaction tax.

It says a small trader bringing goods from Spain into Gibraltar to sell would not qualify as personal shopping, even if the goods are low in value or small in quantity.

The same would apply to online or Facebook sellers sourcing goods from Spain.

For the first three years of the Treaty, personal goods over certain allowances will still have to be declared and may be subject to transaction tax.

These allowances include the sterling equivalent of three hundred euros for goods brought in by land, four hundred and thirty euros by air or sea, and one hundred and seventy-five euros for those aged 15 or under.

After the first three years, those thresholds will no longer apply to goods brought from the EU into Gibraltar, provided they are genuinely for personal use.

The FAQs also say Spanish retailers and delivery operators will not be able to use the open border to deliver commercial goods into Gibraltar while simply charging Spanish VAT.

The Government says commercial goods will have to comply with the Treaty’s import and transit rules, and undergo customs controls.

Enforcement will fall to Customs, the Driver and Vehicle Licensing Department, and the Office of Fair Trading, with penalties to be set out in legislation.

The Government also confirms airport duty-free sales for passengers travelling to non-EU destinations, including the UK, will remain free of transaction tax and excise duties.

Duty-free will not be limited to tobacco and alcohol, but may also apply to other goods that would normally attract transaction tax.

Minister for Business Gemma Arias-Vasquez says the FAQs bring together detailed and technical questions raised by businesses, and will help them understand how the new arrangements are expected to operate.

Further sector-specific town hall meetings are expected on Monday.