On the 31st May 2019, the Malta Free Zones Act 2019 was published as Act XV of 2019. The Malta Free Zones Act effectively facilitates the establishment customs-free zones in Malta, with the aim of promoting and incentivising further investment into Malta’s international logistics services infrastructure.

The Malta Free Zones Act effectively facilitates the establishment customs-free zones in Malta, with the aim of promoting and incentivising further investment into Malta’s international logistics services infrastructure

EU member states are entitled to designate parts of the customs territory of the Union as ‘free zones’ or areas within the customs territory where goods from outside the EU can be introduced free of import duty and other charges as well as commercial policy measures.

Accordingly, the primary scope of the new Act is precisely to empower the Minister responsible for Customs to designate areas or parts of Malta as Free Zones, as well as to establish a Free Zones Authority, which will be tasked with administering the affairs of each Free Zone, authorising and regulating undertakings authorised to carry on activities within any Free Zone and management of land, sites, premises, services and facilities for undertakings authorised to carry on activities within any Free Zone.

The Act is clearly geared towards supporting the manufacturing and logistics sectors and, to this end, the list of activities which may be carried out within a Free Zone as set out in the said Malta Free Zones Act consists primarily of activities related to these sectors.

The provisions of the Act do not apply to any Free Zones which are governed by any other law, such as the Malta Freeport which is regulated by the Malta Freeports Act and which will continue to be so regulated.