The Gibraltar Government has outlined how the forthcoming UK–EU Treaty will impact the movement of goods, customs rules and taxation. RSM Gibraltar was represented at a Treaty Briefing Session to Business Leaders in which the Chief Minister and Attorney General, accompanied by the Deputy Chief Minister and Minister for Business, revealed some of the details of the forthcoming UK/EU Treaty on the future relationship between Gibraltar and the European Union. Below is a summary of the main points covered.

1. Timeline
- The Treaty is expected to enter into force on 10th April 2026.
- The final text has been approved and its formal publication is expected shortly, although it is likely that the Treaty text may emerge unofficially as it is distributed to all Member States.

2. Customs Union & Movement of Goods
- Gibraltar will operate within a new customs union with the EU, applying rules equivalent to the EU’s free movement of goods.
- No customs duties or quotas will apply between Gibraltar and the EU.
- Goods will be cleared mainly through Designated Customs Points in Spain and Portugal.

3. Transaction Tax (TT)
- Import Duty will end on 10th April and be replaced by TT: 15% in Year 1, 16% in Year 2, 17% from Year 3 onwards (the long-term rate will be aligned to whichever is the lowest VAT rate within the EU).
- Reduced rates: 5% for items like children’s clothing and bicycles; 0% for food, water, pharmaceuticals, medical equipment, publications, and solar panels.
- TT revenue remains entirely with Gibraltar.

4. Excise Duties
- Apply only to tobacco, alcohol, and fuel.
- No excise duty on fuel during the first three years.
- After three years, rates must be no lower than 6% below Spanish excise rates.

5. Special Customs Procedures
- Goods in customs warehouses, inward processing or temporary admission procedures will not incur TT or excise until released into the Gibraltar market.

6. EU Standards Compliance
- Goods produced or placed on the market in Gibraltar must comply with EU product standards, with limited exemptions for certain foods and medical items.

7. Personal Allowances
- For three years: €430 allowance (air/sea) and €300 (land). Afterward, standard personal‑use rules without fixed limits.

8. Other Points
- Land entry point will include a police presence and live facial‑recognition systems to enhance security once frontier controls disappear.
- An independent body will monitor market distortions and may recommend TT or excise adjustments.