Malta's entry in the European Union : challenge for the Customs Department

Abstract

As from the 1st of May 2004, Maltese Customs became part of a Customs Union which since its existence has achieved, amongst others: elimination of all internal customs duties; development of a Customs Code for the whole Community; and realisation of the internal market. The Customs Union is an essential element of the European Union's single market with its four basic freedoms: the free circulation of goods, persons, services and capital. Thus, the effects of the Community's Customs Union are far reaching and offer a new challenge to the Maltese Customs Administration. The main purpose of this research is to highlight the challenges and the changes that the Malta Customs Department faced upon accession to the European Union, analyse the way the Customs Department adjusted to these changes and reveal the impact of European Union accession on the operation of Customs. Qualitative research was used for this study, with the main data collection instrument being the one - on - one, semistructured interview. This research indicates that Malta's membership of the European Union required a major reform to upgrade and modernise the Department of Customs. A business change management project aimed at improving practices in line with modem administrative principles, especially those prevailing in the EU, was undertaken. Through this project, Customs has managed and will continue with efforts to streamline procedures, to maximise compliance with fiscal obligations, to raise awareness and provide training activities. The main recommendations put forward by this paper include: the Customs Department needs to effectively manage change by communicating the changes and the reasons necessitating these changes; a Department co-ordination team should be appointed; the Department make an audit of its employees' skills and that the Customs Department needs to encourage employee participation in planning and implementing a change initiative.