Category: Archive – 2011

On the initiative of the Head of Commission Representation in Malta Martin Bugelli, GRTU and other leading constituted bodies had the opportunity to meet Michel Barnier, Commissioner for the Internal Market and services during his visit in Malta. GRTU raised the issues related to obstacles to trade and investment in the internal market especially as these effect services, problems related to the implementation in Malta of the Transparency Directive and issues relating to thresholds on public procurement in the internal market.

GRTU Director General Vincent Farrugia stated that he is very much involved as Malta's employers representative at EESC on issues effecting the internal market. Mr Farrugia was the rapporteur who wrote the EESC adopted report on the taxation obstacles for citizens crossing from one country to the other. He stated that much greater effort needs to be done to eliminate the obstacles that are effectively prohibiting more trans-border investments by small businesses. In spite of the efforts of the commission too many hurdles still exist and the statistics show clearly that the vast majority of enterprises – 99% of enterprises are small and medium – hardly ever cross borders. This really means that under current austerity programmes, as imposed by various Governments under budget deficit procedures and as total demand continues to fall due to falling rates of economic growth, that an unbalanced situation in Europe continues to persist whereby areas in Europe suffer from shortage of labour while others have high rates of unemployment. This is one important factor why youth employment in Europe in many countries is so high. There are simply not enough incentives for EU citizens to become more mobile in spite the fact that we have just celebrated 20 years of internal market. Michel Barnier was also urged, given his vast experience in trade and administration, to push harder to remove existing obstacles and provide great incentives for owners of SMEs especially in the services area to be able to seek new opportunities for orders and direct investment across the EU.

Paul Abela GRTU President raised the question of public procurement. Also on behalf of GRTU and the employers Vince Farrugia was rapporteur on the Communication Green Paper on expanding the use of e-Procurement in the EU. The President stressed that the threshold level under which tenders for orders by Governments of member states are not obliged to be public should be removed. Traders, consultants and service providers from Malta cannot be expected to contest for the above threshold contract, most of there offers are just too large. It is easier for small enterprises from all over Europe to be able to bid for tenders for orders across border if smaller size orders where also open for cross border competition. The situation is getting even worse in the market of most member states such as Malta where obstacles for small enterprises to compete for public tenders are increasing rather then diminishing. The GRTU president appealed for strong immediate action on this issue.

"Small businesses have survived during the recession and will grow despite the treat of a second recession if they are given greater opportunities to work beyond borders. Malta is not afraid of this competition. On the other hand we make efforts as the national chamber of SMEs to encourage our members to look for opportunities within the internal market", stated Paul Abela.

Another speaker at this encounter with Barnier was Mario Debono. Mario is GRTU's special envoy to Libya and he is also President of the pharmaceutical section at the GRTU. Mr Debono explained that the way that the Transparency Directive is being implemented in Malta is erroneous, and in the views of the Pharmaceutical Committee he represents the Maltese Government is going beyond the power bestowed by this Directive. The Directive is aimed at ensuring transparency in the pricing of medicines that are refundable under medical health systems as operational within most EU countries. In brief this really means that the vast majority of EU citizens who are eligible for free medicines under the national health schemes of most EU countries should not be over charged by pharmaceutical suppliers as this would entail unnecessary and additional burdens on the national free medicines services. This situation is not applicable to Malta.

Medicines in Malta except for those listed as receivables of medicines in Malta from the state are sold by registered pharmaceuticals and paid for directly by Maltese citizens. It is a free market where the role of Government is only to ensure that market mechanisms work but definitely does not provide for a Government Imposed Price Control Mechanism of medicines. Yet in Malta under the aegis of the Transparency Directive, Parliamentary Secretary Chris Said, responsible for consumer affairs on behalf of the Government, introduced a regime which is nothing short then Medicine Products Price Control which is unacceptable in a free market and according to GRTU a sheer abuse of the Transparency Directive.

Mario Debono on behalf of GRTU strongly urged Michel Barnier to take up this issue. GRTU has already written to the Commission as GRTU believes that the Malta Government is in infringement. "GRTU is against any abuse by any trader in the pricing of medicines. Government is right in ensuring that suppliers of medicines under public procurement should adhere to the strictest control so that the pricing of medicines to Government services not only appear to lack any hidden profitability but also to lead in a free market with just pricing. Supply of medicines in a free market in a small country like Malta that finds it extremely hard to ensure regular supply from leading manufacturers because of the small size of orders and demands from various brands cannot be accepted to compete under rigid and illicit price control interventions by Government. Traders are suffering but those that are suffering the worst are the patients as a wide range of medicines are becoming uneconomic to trade for local commerce. This is a serious situation as it is turning the clock back to the years of state dirigiste economic policies. This is why GRTU strongly urged Commissioner Barnier to act.

Strong proposals by Vince Farugia-Malta Employers Representative – The European Economic and Social Committee (EESC) Plenary Session held yesterday 8^th December in Brussels discussed a number of recommendations that the EESC wanted to highlight, solutions to the current Euro zone financial crises. Speaking in the discussion where select speakers from the three groups at EESC – Group I (Employers), Group II (Employees), Group III (Civil Society). On behalf of the Employers Group, Vincent Farrugia, Malta Employers member raised 7 important points:

 

1. Immediate implementation of what is already agreed: Vincent Farrugia strongly urged as top priority for action by the EU Council of Ministers for the immediate implementation of all legislative instruments (six pack) on economic governance already agreed to by all member states. He insisted to implement without further delay all agreed initiatives for the recapitalisation of European banks and to take more determinant action on the stabilisation of volatile economies.

2. Enhancing competitiveness and economic growth: It is essential, Vince Farrugia stressed, for national and European competitiveness and economic growth to be enhanced by more specific investment programmes, including the possibility also of bringing forward for implementation essential parts of the Europe 2020 Agenda.

3. Ex-ante review and approval of national budgets: Vince Farrugia insisted that the EESC should come out very strongly in favour of stricter fiscal discipline as Europe cannot afford a repeat of the way the stability and growth procedures where abandoned in the pre-crises period. The EESC should also come out strongly in favour of the adoption of strong fiscal rules, including rules that imposed balanced budget strategies on member states. The balanced budget rule should, as he advised in his report on the Effective Enforcement of Budgetary surveillance in the Euro Area, be implemented in a phased, economic and sustainable manner. Mr Farrugia commented negatively however on any imposition on all MS of any ex-ante review and approval of national budgets by the Commission. He requested the EESC to come strongly against this concept as it infringes upon national sovereignty and erodes the authority of democratically elected Governments. "What the EESC should insist on strongly is that the ex-ante review and approval of national budgets should be adopted only, but strongly, in respect of countries which break the rules, which as a result are risking the financial stability of the whole Euro area", emphasised Vincent Farrugia.

4. Compact in favour of fiscal stability: "Too much loose talk is being stated on the establishment of a fiscal union when actually what most mean and are ready to accept is a compact approved by all member states to impose greater fiscal stability. A fiscal union normally implies a finance authority super-imposed on all member states and with powers to impose taxation at ‘federal level'. It also implies that someone will decide on how these federal taxes will be used. This is not what member states want and it is not in the spirit of the EU Treaties. What we all want is increased fiscal seriousness and the right mechanisms to impose discipline. This can be done through a ‘compact' and not through a ‘fiscal union'" stated Vince Farrugia.

5. European stability mechanism (ESM): The ESM is a flexible and robust institution, specifically geared to address current and future challenges in the financial markets. The EESC should come out very strongly in favour of the earliest entry into force of the ESM.

6. Mutualisation of depths: Mr Farrugia said that "again a lot of stress is being made on the concept of Eurobonds, but no one stresses their implication. The most serious of which is that all the member states of the Euro zone would approve a process of mutualisation of depths, implying that those member states that have been disciplined, have not abused of the Stability and Growth Pact rules and have no problem in raising money at the tight level necessitated by their prudent fiscal policies, will have to be castigated by being undermined by the imposition of depth burdens of those member states who have abandoned prudence and discipline and are therefore suffering from the consequences".

7. Treaties of the EU: Vince Farrugia finally strongly urged the EESC to move publicly against any proposed changes to the EU Treaties. Treaty changes would lead to delays in the action that is urgently needed and would create more divisions than solve. "The last thing that Europe needs at the moment is division rather than unity", stressed VF. He urged that the best way forward is for all the 27 member states working together to produce an agreed solution and agreed implementation mechanisms rather than any Treaty change.

This is a very important notice for all importers as this affects the HS Codes on which you import, which the GRTU received from the Customs Department.

 

The Combined Nomenclature (CN) is updated at the end of every year and any changes take legal effect from the 1st January of the following year. The Common Customs Tariff for 2012 has been published by means of Commission Regulation (EU) No 1006/2011 of 27 September 2011 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff, available at link below:

http://eur-lex.europa.eu/JOIndex.do?year=2011&serie=L&textfield2=282&Submit=Search&ihmlang=en

The new tariff (effective 1 January 2012) introduces significant changes; approximately 800 codes present in the 2011 edition have been withdrawn and a similar number of new lines introduced. There are significant code changes on goods such as meat, fish, fruit and vegetable preparations, fuels, chemicals, articles of iron or steel, printers, recorded/unrecorded media, set-top boxes, cycles and sanitary products.

You can also click on the following link:

http://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en&Screen=0&redirectionDate=20110104&SimDate=20120101

to check whether there will be changes at Taric code level (10 digit level). Particular caution is required in this regard as changes of this type can occur at irregular intervals and with little notice from the EU Commission. For instance some products which where VAT exempt on importation might have now become subject to VAT, this of course always on imports from outside the EU.

Members may wish to consult the correlation tables 2011-2012 for guidance at http://www.revenue.ie/en/customs/businesses/importing/cn-correction-tables.pdf. The Correlation Tables will assist traders to establish if their particular codes will be affected by the changes. However, only individual traders will know the codes which are of interest to them and it is important to note that the onus is on each individual trader to carry out checks to confirm whether or not their existing codes will be changing.

The customs Binding Tariff Information Unit is available to assist with classification issues. You are invited to send queries on: .

 

A company manufacturing an innovative product (heater) which is mainly aimed at heating compressed air. Warmer air is very useful using compressed air for water-based paint spraying (automotive, marine, aeronautics, carpentry & furniture industry mainly). The applications of warm air can also be medical (dental mainly) and industrial (heating up tools, protecting compressed air powered tools, defrosting specific applications, etc.

 

When used in painting, the three greatest advantages of the heater are:

–  paint saving (up to 20%) –  time saving (both in spraying and drying)

–  aesthetic improvement (mirror effect vs. orange peel effect) –  the fourth advantage is the price

The system is also extremely modular, this way the final customer is not obliged to purchase parts he already has. Last but not least the heater offers a constant air outlet and the maintenance kit is made of filters and o-rings.

If you are interested in this offer you are invited to kindly contact Michael Galea on .

As was previously informed Transport Malta had consulted the GRTU on the phasing and the traffic management for the Triq Dicembru 13 to Menqa Roundabout Marsa Ten T Project commencing shortly. GRTU is informed that GRTU's request to have works started after the festive season was received positively by Transport Malta and therefore works should start later on than originally planned following GRTU's request. GRTU is currently waiting for an official confirmation from Transport Malta.

We remind readers that the works we are referring to are those of Triq Patri Felicjan Bilocca, Marsa.

GRTU once again thanks Transport Malta for the consultation.

The European Commission has awarded grants to support initiatives aimed at tackling violence and intolerance in sport, and to strengthen the administration of sport in Europe. Twelve trans-national projects received grants ranging from €125,000 to €200,000 as part of a package intended to pave the way for the launch of an EU subprogramme for sport which would also support grassroots campaigns to promote physical activity, social inclusion through sport, and the fight against doping.

Valletta, Malta's capital city, supported by all other localities in Malta and Gozo, recently submitted its candidature to be designated as the European Capital of Culture 2018. The application was presented by Valletta Mayor Alexei Dingli to the Parliamentary Secretariat for Tourism, Culture and the Environment. Valletta's bid, V.18,addresses the development of an environment for exchange which enables communication and learning experiences for citizens of Malta, Europe and the Mediterranean, differing in age, gender, physical needs, ethnicity and employment. V.18 aims to support citizens through the development of sound cultural and technological infrastructures that will encourage access to and participation in the arts, an inclusive approach to culture, the professionalization of performers and cultural operators and the internationalization of Maltese creativity, primarily through European partnerships.

 

 

 

 

 

 

 

The European Capital of Culture is a flagship programme of the EU which can provide Valletta with the opportunity to experience social, economic and cultural generation aiming at leaving a long-term legacy on the city. Information from MEUSAC News

Applicable to imports of steel ropes and cables originating of China, Ukraine and South Africa –The anti-dumping measures currently in place on imports of steel ropes and cables originating in the People's Republic of China, Ukraine and South Africa were initially imposed for the first time back in 1999. The Commission is proposing that measures be extended for another term.

The current duty rates are equal to 60.4% for imports originating in China, 51.8% for imports with Ukrainian origin and 38.6% for imports with South African origin.  

Due to circumvention practices, the measures were also extended to imports consigned from the Republic of Korea, Morocco and Moldova.

The product concerned is steel ropes and cables, including locked coil ropes, excluding ropes and cables of stainless steel, with a maximum cross-sectional dimension exceeding 3mm, currently falling within CN codes ex73121081, ex73121083, ex73121085, ex73121089 and ex73121098.

This product is used in various applications ranging from agriculture, fishing and construction (lower-end products) to oil rigging, bridge suspension, mining and elevators (higher-end products).  

More information on this case can be accessed through the link below:

http://trade.ec.europa.eu/tdi/case_details.cfm?ref=com&id=1679&sta=1&en=20&page=1&number=&prod=rope&code=&scountry=all&proceed=all&status=all&measures=all&measure_type=all&search=ok&c_order=name&c_order_dir=Up

Members who think will be effected are to contact Abigail Mamo at GRTU.

Nine EU directives covering a wide variety of products will ensure better product safety. The sectors concerned are electrical and electronic products, lifts, measuring instruments, civil explosives, pyrotechnic articles and equipment for use in potentially explosive atmospheres.

 

Market surveillance and customs officers can now better check the safety of products using more effective tools. In addition, Member States can improve the supervision of monitoring bodies that check the conformity of products with EU law, for example ensuring that the CE marking has been properly applied by manufacturers.

Certain provisions of the nine directives are being aligned with model provisions developed at EU level to overcome divergences in EU law which make life hard for businesses. In the future, producers, importers and distributors will profit from uniform trading conditions. At the same time this process will further improve the safety of products on sale in the EU by strengthening compliance procedures and make it easier to keep non-compliant products off the market.

European Commission Vice-President Antonio Tajani, responsible for Industry and Entrepreneurship, stated: "Safety of products is our first priority. Also, producers and distributors will profit from increased consumer trust. Moreover, EU product legislation is now starting to take on a more uniform "look", leading to reductions in administrative burden and costs. However, it is not sufficient to strengthen the rules. We also need Member States to ensure enhanced market surveillance deterring unscrupulous market operators."