Cap. 337 Art. 21Drawback.

(1) Subject to the provisions of this article, the Minister may by order published in the Gazette provide that drawback on exportation or shipment as stores, or on warehousing in a bonded store pending exportation or shipment as stores shall be allowed under this article (either for a period specified in the order or without limit of period) as respects import duties paid on the importation of goods of any description specified in the order. For the purpose of this article "the imported articles" means the goods charged with the duty which is to be drawn back.

(2) No order shall be made under this article unless the Minister is satisfied that it will promote the export trade of Malta and is in the public interest and the Minister shall have regard to the interest of those producing in Malta goods comparable with the imported articles.

(3) The Minister may by order declare any premises occupied and used for the building, repairing and refitting of ships to be an authorised yard for the purposes of the next following sub-article.

(4) Goods brought to an authorised yard shall be deemed for the purposes of this article to be exported.

(5) The allowance of drawback under this article shall be subject to such conditions as the Minister sees fit to impose for the protection of the revenue and, in a case where drawback is allowed by virtue of sub-article (4) of this article, subject also to such conditions as the Minister sees fit to impose for securing that the goods will be used in the building, repairing or refitting in the yard of ships of a description not for the time being chargeable with any import duty.

(6) Drawback may be allowed either -

(a) in accordance with sub-article (9) of this article on the exportation or shipment as stores of the imported articles or of goods incorporating those articles; or

(b) in accordance with sub-article (10) of this article on the exportation or shipment as stores of goods produced or manufactured from the imported articles.

(7) For the purposes of this article any process whereby the form or character of any goods is changed shall be treated as producing other goods from them.

(8) Any order may provide for allowing drawback subject to restrictions not specifically provided for by this article.

(9) Any order providing for drawback to be allowed in accordance with this sub-article shall be taken as providing that -

(a) the drawback shall be of an amount equal to the duty shown to have been paid in respect of the imported articles;

(b) the drawback shall not be allowed on an exportation or shipment as stores by a person other than the importer of the imported articles or some person who has taken delivery of those articles or of goods incorporating them directly from him;

(c) the drawback shall not be allowed if since the duty became chargeable on the imported articles those articles or any goods for the time being incorporating them have been used otherwise than by being incorporated in other goods or if the imported articles have ceased, otherwise than by undergoing some process not changing their form or character, to be in the same state as they were in at the time when the duty became chargeable on them.

(10) Where drawback is to be allowed in accordance with this sub-article -

(a) the rate of drawback shall not be such as appears calculated on the average to result in the duty drawn back amounting to more than the duty paid;

(b) subject to paragraph (a) of this sub-article, the drawback may be allowed at such rate or rates as appear appropriate and convenient, but so that any rate of drawback shall be fixed by reference either to the quantity of the imported articles (or any goods produced or manufactured from those articles) actually contained in the goods exported or shipped as stores or to that of the goods exported or shipped as stores;

(c) where the drawback is to be allowed in the case of any goods exported or shipped as stores at more than one rate according to the duty charged on the imported articles or according to the value by reference to which duty was paid on those articles, provision may be made for determining any question as to the quantity to which any rate is to apply.

(11) Any order for drawback to be allowed in accordance with sub-article (10) of this article shall be taken, except in so far as it provides to the contrary, as providing that any rate of drawback shall, in relation to imported articles charged with duty at a preferential rate, be reduced so as to bear to the full rate of drawback the proportion which the duty charged bore to the full duty.

(12) Any order providing for drawback to be allowed in accordance with sub-article (10) of this article shall be taken as providing that the drawback shall not be allowed if since the duty became chargeable on the imported articles those articles or any goods produced or manufactured from them have been used otherwise than for the production or manufacture of other goods from them.