New Guidance Published on Warehousing, Processing and Transit

In a week Spain started demolishing its physical frontier infrastructure ahead of the expected a5 July Treaty implementation date, HM Government has published a further package of Treaty-related customs guidance aimed at businesses, importers, exporters, freight forwarders and logistics operators preparing for the new customs arrangements expected to come into force under the UK-EU Gibraltar Treaty.

The guidance covers three key areas:

• Annex 19 Special Customs Procedures (for EU-origin goods)
• Annex 21 Special Customs Procedures (for non-EU goods)
• Transit procedures for goods moving between Gibraltar, Spain and the wider EU customs territory.

Why it matters

For many businesses, these documents provide the clearest picture yet of how goods will move under the new Treaty framework. The guidance explains how businesses will be able to use customs warehousing, inward processing and temporary admission procedures to store, repair, process or temporarily import goods while suspending taxes, duties and other charges until goods are released into the market or re-exported.

These arrangements are particularly relevant for wholesalers, distributors, marine services, automotive businesses, repair operations, logistics providers and any company importing goods that may later be exported or processed.

Annex 19 vs Annex 21: What’s the difference?

The distinction comes down to the origin of the goods.

Annex 19 applies to Union (EU) goods. Under this regime, businesses will deal directly with HM Customs Gibraltar, and the special customs procedure is primarily used to suspend Gibraltar Transaction Tax and excise duties while goods remain under customs control.

Annex 21 applies to non-Union goods and mixed consignments. These procedures involve both Gibraltar and EU customs requirements, including obtaining the relevant Spanish authorisations and, in many cases, holding a valid EORI and NIF number.
New requirements for businesses

Businesses wishing to operate customs warehouses, inward processing facilities or temporary admission procedures will require authorisation and will need to demonstrate appropriate controls.

Requirements include:

• Secure premises
• Digital inventory and traceability systems
• Floor plans showing segregation of goods where required
• Access for customs inspections
• Appropriate guarantees covering potential tax and duty liabilities.
In many cases, operators will also need to obtain an OFT trading licence before authorisation can be granted.

Transit: How goods will move

The separate Transit Guidance Note provides the most detailed explanation to date of how goods will move between Gibraltar and the EU under the Treaty.

The document introduces the new T1GI and T2GI transit systems:

• T1GI for non-EU goods
• T2GI for EU-origin goods.

The guidance also walks businesses through the import, warehousing and export process step-by-step, including the role of Designated Customs Posts (DCPs) in Spain, customs declarations, Movement Reference Numbers (MRNs), transaction tax payments and export procedures.

One notable point is that goods imported for warehousing will generally not attract Transaction Tax, excise duties or (where applicable) EU import duties until they are removed from the warehouse and placed on the Gibraltar market.

Transitional arrangements

Businesses already operating bonded warehouses, transit sheds or other special customs procedures should note that transitional arrangements are available for existing stock.

Goods already placed under current customs procedures before Treaty implementation can remain under existing arrangements for a limited period, generally up to two months after the Treaty comes into force.
What happens next?

Government has indicated that additional guidance will continue to be published in the coming weeks, alongside further Town Hall meetings where businesses will have the opportunity to ask questions directly and better understand how the new arrangements will work in practice.

For businesses involved in importing, exporting, warehousing, manufacturing, shipping, logistics or wholesale trade, these latest documents provide some of the most detailed operational guidance published so far and are likely to form an important part of Treaty readiness planning.

The GFSB will continue to review and summarise new guidance as it is published. Members who believe their business may be affected by these changes are encouraged to review the documents carefully and seek professional advice where appropriate.