Legal aspects of the Maltese freeport system

Abstract

The primary scope of this thesis is to serve as a source of practical and current information with regard to that rather innovative branch of commercial law which relates to the concept of freeports - one species comprised within the genus concept of free zones. As evidenced by the choice of title, throughout this study, the accent falls most heavily upon the Maltese freeport system which essentially harbors a customs-free zone, structured upon a sound legislative framework which finds its bearings within the Malta Freeports Act of 1989. Although different zones tend to exhibit varying characteristics which are tailored to suit tl7e needs and policies of the particular host country, all such zones may be generically described as areas wherein the customs, fiscal and other regulations which are applicable within the territory of the host country, may be uplifted. In the course of this study, constant effort is made to analyze the legislative framework underlying the Maltese freeport project, whilst at the same time, providing background information regarding the generic notion of free zones. In line with this two-fold effort, the first two chapters tackle several historical, socio-political, economic and legal issues relative to free zones, in general, and to the Maltese customs-free zone, in particular. The remaining chapters are devoted entirely to a close analysis of the Malta Freeports Act. Chapter Three seeks to project a complete image of the corporate structure obtaining within the Malta Freeport, where the main protagonist is the Freeport Authority, which is supported and assisted by five subsidiary companies. Since the latter are fully-fledged licensed companies, an examination of the statutory regulations relative to the granting, retention and possible withdrawal of licensed status, is also forthcoming. The fourth and final chapter then concentrates upon the fiscal regime which holds sway within the freeport zone, as well as upon the administrative arrangements which are specifically intended to ensure that the said regime is not converted into a vehicle for the perpetration of illegal and evasive action on the part of freeport users.