Administrative Arrangement between the United Kingdom, in respect of Gibraltar, and Spain on Customs

This administrative arrangement on customs is between the United Kingdom (UK), for Gibraltar, and Spain, who call themselves "the Participants". It notes that the treaty it refers to is the treaty between the European Union (EU) and the UK on Gibraltar, as published in the Official Journal of the EU with the date 14 July 2026, marked as not yet published. It says the arrangement is made ahead of the treaty coming into force and is to be read in line with the treaty, its annexes and protocols, in relation to the implementation of several treaty provisions and annexes and the protocol on tobacco. It sets out the practical arrangements the treaty refers to, and is made under and subject to the principles of the treaty and, in particular, to one article of it. It also notes that neither this arrangement nor any activity or measure taken in applying it or as a result of it implies any change to the respective legal positions of Spain and of the UK on sovereignty and jurisdiction in relation to Gibraltar. It also acknowledges that this arrangement, any arrangements related to it, and any measures, instruments or conduct taken in applying it, as a result of it or under it, do not affect, and will not in any other way affect, the respective legal positions of Spain or of the UK on sovereignty and jurisdiction, and will not be the basis for claiming or denying sovereignty, including in legal proceedings or otherwise. The Participants have decided as follows.

Under the heading arrangements on movement of goods, the administrative arrangement between Spain and the UK, for Gibraltar, on customs says it will cover: movements of goods referred to in an annex of the treaty, in relation to certain articles of the treaty; movements of goods referred to in another annex of the treaty, in relation to one of those articles; and special procedural arrangements for professional equipment and certain special categories of goods. The Participants note that coordinating customs and tax controls on such movements of goods, together with the exchange of information and the procedures applied, will require the customs authorities of Spain and of the UK, for Gibraltar, to carry out their activities within the same working hours schedule.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, goods exported to Gibraltar from any part of the EU customs territory (the UCT), as the EU customs code (the UCC) defines that territory, and which are in free circulation in that territory, will, when they are presented at the customs posts designated in the treaty (DCPs), be placed under the transit procedure, by land and exceptionally by sea (as referred to at the end of this section), through the NCTS system, using a special declaration known as T2GI.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for this T2GI transit, the customs office of departure will be any DCP in Spain and the customs office of destination will be in Gibraltar. The addresses of the Gibraltar customs offices for this will be the Entry Processing Unit, British Lines Road, and, as a secondary location, the Port of Gibraltar, North Mole.

This section of the administrative arrangement between Spain and the UK, for Gibraltar, on customs sets out the procedures for different situations that may arise, depending on what happens while the goods move from the DCP to Gibraltar.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the customs office of destination will send the following messages through the relevant web service.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, a "notification of arrival" message is to be sent on the same day the goods arrive and are presented to the competent customs authority in Gibraltar, and in any event no later than six calendar days from the release of the T2GI transit declaration by the DCP. This is the deadline normally set by the customs office of departure.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, a "results of transit control" message and a "destination of goods in Gibraltar" message are to be sent within three working days from the sending of the notification of arrival. The T2GI transit procedure will not be treated as discharged just because the "results of transit control" message is received. Discharge will require the Gibraltar customs authorities to send a later message giving the reference for the levying of the transaction tax and, where applicable, excise duty, or, if applicable, the placing of the goods in a special customs procedure for tax purposes. Until then, the T2GI transit procedure will not be considered discharged.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where goods are placed in a special customs procedure for tax purposes, the Gibraltar customs authorities will inform the DCP in real time, case by case, giving: the special customs procedure for tax purposes that applies; the date the goods were placed in it; the expected date of discharge; and the identity of the individual or legal entity placing the goods under the regime. This information will relate to the particular item level of the T2GI declaration, will give the net mass of the goods, and will be put into the register referred to in an annex of the treaty for monitoring goods under special tax regimes in Gibraltar.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where goods are released for consumption in Gibraltar after a special customs procedure for tax purposes, proof that indirect taxes have been levied in Gibraltar will be sent. This proof will be sent monthly through the relevant web service.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the customs office of departure will send a message to the customs office of destination asking for information on the status of the T2GI movement. The customs office of departure will have seven calendar days to finalise the transit procedure automatically; the office of destination will send the notification of arrival and the results of the transit checks promptly so that this can be done within seven calendar days. If, within seven calendar days, the transit cannot be discharged automatically by receipt of the required messages, an enquiry procedure will be started, in which the holder of the transit procedure will be asked to provide proof, within 28 calendar days, that the procedure was ended in compliance with the rules.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the following forms of proof will be accepted as valid proof for the Gibraltar context: a document certified by the customs authority of destination in Gibraltar, identifying the goods and confirming that they were presented at the customs office of destination; a message showing the destination of the goods in Gibraltar, either placing in a special regime, with enough detail to identify it, or release for consumption, the latter together with proof of payment of transaction tax and, where applicable, excise duty.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, if the holder of the transit procedure submits any of the means of proof set out above within the time limit set, the customs office of departure will inform the customs office of destination within 14 calendar days of receiving the documents the holder submitted. The customs office of destination will then either accept the proof and notify the customs office of departure, so that it may discharge the procedure within 14 calendar days from receiving the notification, in which case the rules of an earlier paragraph on the absence of irregularities would apply; or reject the proof and inform the customs office of departure within seven calendar days from receiving the notification, so that it may start the corresponding procedure to collect VAT and, where applicable, the excise duties applicable in Spain. The arrival notification alone will not be evidence of proper discharge of the transit procedure.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, if no proof is provided, the transit will be treated as not properly discharged, and the customs office of departure will start recovery proceedings.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where there is no message on the results of discharge or on the destination of the goods, the procedure described in an earlier paragraph of this arrangement will apply after six calendar days from receipt of the arrival notification.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in case of minor discrepancies, the rules of an earlier paragraph on the absence of irregularities will apply.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in case of major discrepancies: a recovery procedure will be started if the discrepancy affects all the goods; a recovery for the missing part will be started if it affects part of the goods; and if the discrepancy does not affect the possible settlement, discharge would be confirmed in line with an earlier paragraph, through the customs office of departure starting the corresponding sanction proceedings against the holder of the transit procedure.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where technical problems prevent messages from being sent or resent, the customs office of destination may provide alternative evidence acceptable to the customs office of departure, as provided for in the operational guidance.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the deadlines for submission will be the same as for standard cases, and enquiries may be made through the designated helpdesk.

This is a heading in the administrative arrangement between Spain and the UK, for Gibraltar, on customs: it introduces the procedures to be followed where the authorities of the UK, for Gibraltar, are aware of irregularities in the handling of goods that arrived without irregularities under the T2GI from the DCP.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the authorities of the UK, for Gibraltar, will contact the DCP so that the DCP can take this into account in its records; depending on the nature of the irregularity, the matter will be dealt with in the same way as in the case described in an earlier paragraph of this arrangement.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, as an exception to the general rule that EU goods enter Gibraltar by land, an annex of the treaty allows EU goods to enter through the port of Gibraltar, provided that a T2GI is lodged through the NCTS at the Algeciras DCP and this transit procedure is discharged within two hours of the goods leaving the port of Algeciras. The goods must be fully unloaded from the vessel.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, goods placed under a special customs procedure for tax purposes (fiscal warehousing, fiscal inward processing or fiscal temporary admission) may stay under those regimes for the periods set in an annex of the treaty. This does not affect any extensions that may be granted where duly justified circumstances approved by the DCP apply, either when the authorisation is requested or later, while the goods remain under the regime. When the relevant period ends, a customs destination will be given to the goods, with the changes needed. A matching message will be sent in real time through the relevant web service, giving the net mass of the goods leaving the regime, at item level, and the MRN or MRNs of the T2GI in which the goods were included. In addition, supporting evidence for each destination will be sent monthly, where required. There are therefore four possible destinations for these goods, and only the last of them involves the goods leaving Gibraltar for the EU. One is release into the internal market in Gibraltar, which will require proof of payment of transaction tax and, where applicable, excise duty to be submitted to the DCP; that proof will be sent through the corresponding web service. Another is re-export to a third country, by lodging a re-export declaration at the DCP, preceded, where applicable, by a T2GI. Another is destruction without generating waste: proof must be provided, together with the relevant destruction agreement and a certificate from an authorised waste manager, and if waste is generated as a result of the destruction and is not removed from Gibraltar, transaction tax must be paid. The last is re-export to the EU customs territory, by lodging an import declaration at one of the DCPs. An exemption from import duties and VAT may be applied under the returned goods relief regime. Where returned goods relief does not apply, preference code 400 will be accepted so that no customs duties are paid where the destination of the goods is the EU. Before this, a T2GI transit declaration will be lodged from Gibraltar at the DCP. This T2GI movement will apply the rules set out in an earlier section of this arrangement, with the changes needed, with the UK, for Gibraltar, acting as customs office of departure and the DCP as customs office of destination. The T2GI declaration will include, under "supporting documents", the reference (MRN/item) of the T2GI originally used to move the goods from the DCP to Gibraltar.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, what is said above does not affect a rule of an annex of the treaty, read together with another rule of that annex, which allows vessels and aircraft to be supplied from customs warehouses for tax purposes, provided that the relevant declaration is presented at the DCP. In such cases, neither a T2GI nor physical presentation of the goods at the DCP will be required; presentation will take place at the airport or port facilities in Gibraltar agreed by the DCP.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, goods in free circulation in Gibraltar, having either been released for consumption there or manufactured or obtained in Gibraltar, will be covered by a T2GI declaration from Gibraltar to the DCP. This T2GI will apply the rules set out in an earlier section of this arrangement, with the changes needed, with the UK, for Gibraltar, acting as customs office of departure and the DCP or DCPs as customs offices of destination. The T2GI declaration will include, where applicable, the MRN of the T2GI under which the goods were originally brought into Gibraltar.

This is a heading in the administrative arrangement between Spain and the UK, for Gibraltar, on customs: it covers non-compliance, and issues relating to the assessment and recovery of Spanish indirect taxes (VAT and excise duties).

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the following situations will be distinguished for VAT and, where applicable, excise duty applicable in Spain: (a) irregularities in the T2GI declared from the DCP to Gibraltar: where irregularities prevent proper discharge of the T2GI transit procedure under a rule of an annex of the treaty, the DCP will assess the VAT and excise duties applicable in Spain; (b) failure to provide proof relating to special customs procedures for tax purposes, failure to discharge such procedures within the period set, or any irregularity during the period in which the goods remain under such regimes; (c) irregularities in the T2GI declared from Gibraltar to the DCP.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in cases (b) and (c), the customs authorities of the UK, for Gibraltar, will assess and collect VAT and excise duties on behalf of Spain, because the situation is treated as an irregular entry into the EU customs territory. The amounts collected will then be transferred to Spain as set out below.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the DCP will record the situation in the register and inform the UK, for Gibraltar, by email of the tax rates and tax concepts that apply. The debt will be calculated based on the date on which non-compliance occurred, either when the arrival notification message is sent or when the message notifying the results of the checks is sent. This will be done in line with a rule of the UCC, which will apply, with the changes needed, when conditions are no longer met, that is, once a maximum period of 12 days has passed since the declaration was accepted.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, once the communication is received, the UK, for Gibraltar, will transfer the amounts assessed, within a maximum period of two months, to the designated Spanish account, giving: the taxable person (and Spanish tax identification number, if applicable), the amounts collected, the assessment number, the tax concept (VAT or excise) and the T2GI reference with which the goods entered Gibraltar.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, if the transfer is not made within the agreed period, Gibraltar will justify the delay, and this will be communicated to the DCP so that it enters that circumstance in the register. The amounts transferred will be recorded in the register as settled, and the procedure will be treated as completed for those amounts.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where the transfer is not received within the agreed period, this will be reported to the Working Group and then, if necessary, to the EU-UK treaty committee on economy and trade provided for in the treaty.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where, after the payment and the submission of the corresponding breakdown of information, an operator is entitled to repayment of those amounts, the customs authorities of the UK, for Gibraltar, will submit the appropriate evidence recognising that right (a court decision, a decision of an economic administrative body, or equivalent).

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, once the documents submitted have been verified and the evidence accepted, the amounts requested will be refunded to the account of the customs authorities of the UK, for Gibraltar, from which the transfer was made. After that, the customs authorities of the UK, for Gibraltar, will refund the relevant operators.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, goods originating in third countries and destined for Gibraltar will be covered by an import declaration (H1) lodged at the DCP.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, once the import declaration (H1) has been lodged, release will not be granted until the special transit declaration T1GI that follows it has been submitted through the NCTS system to cover the land movement. The declarant will be told that this transit declaration needs to be submitted.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, once the T1GI declaration lodged from the DCP to Gibraltar has been accepted and released, the transit regime may be discharged either without irregularities or with irregularities, in which case the rules set out in an earlier section of this arrangement will apply. Only the specific aspects of incorrect discharge or non-discharge that derive from an annex will apply as particularities.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where the T1GI is correctly discharged in Gibraltar, the following situations may arise.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for goods released for free circulation in Gibraltar by the DCP, the corresponding messages will be sent on time and in the proper form through the web service.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where the goods are released onto the Gibraltar market as regards transaction tax and, where applicable, excise duties, the rules already set out in an earlier section of this arrangement on EU goods released for free circulation in Gibraltar will apply.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where the goods are placed in a special tax regime, the rules set out in another part of this arrangement on EU goods destined for a special tax regime in Gibraltar will apply.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for goods placed in a special customs procedure in Gibraltar: where the T1GI is correctly discharged, the goods will be treated as having been placed under a special customs procedure, and the relevant information will be linked to the import declaration, from which the time limits for the goods to remain under the procedure will be monitored.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, exceptionally, and where duly justified, in line with a rule in an annex of the treaty, goods may arrive by sea directly at the port of Gibraltar from third countries, without the need to lodge a T1GI declaration at the DCP, so that they can be placed under inward processing and temporary admission. In addition, fuel for commercial seagoing vessels that is to be placed under the customs warehousing procedure for later use in ship supplies may arrive by sea at Gibraltar port. Under this procedure, exceptional and duly justified circumstances are not required, and such fuel may arrive by sea directly at Gibraltar port from third countries without the need to lodge a T1GI declaration at the DCP.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in such cases the import declaration must be lodged in advance at a DCP.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs notes, lastly, that the procedures for supervising authorisations for special customs regimes will be laid down in the arrangement on joint visits and information exchange that an annex of the treaty refers to.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, on the discharge of goods in a special customs procedure for tax purposes in Gibraltar: goods in such a procedure that entered Gibraltar under a T1GI (in line with a rule in an annex of the treaty) will be discharged under the procedure set out in two paragraphs of another section of this arrangement, which will apply with the changes needed. In the T2GI to be lodged in Gibraltar covering the movement to the DCP, where the goods are to leave Gibraltar, reference will be made to the MRN/item of the T1GI under which the goods were placed under the special regimes. The H1 will be included as the previous document in the T2GI.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, on the discharge of goods previously placed under a special customs procedure authorised by the designated customs post or posts: goods that were placed under a special customs procedure of inward processing, temporary admission or customs warehousing may remain under those procedures in line with EU customs law; this does not affect any extensions that may be granted where duly justified circumstances apply. When the relevant period runs out, or where it is decided to discharge the special regime (in the case of customs warehousing, because a rule of the UCC sets no time limit), a destination will be assigned to the goods. One possible destination is release in the internal market of Gibraltar: this will require the UK, for Gibraltar, to submit to the DCP proof that the transaction tax and, where applicable, excise duty have been assessed and paid; the DCP will send the calculation details for indirect taxation to the UK, for Gibraltar, through a web service; no prior T1GI declaration will be required; and the DCP will assess the import duties beforehand, which will be recorded in the separate accounts as own revenue of the UK, for Gibraltar. Another is re-export to third countries, by lodging a re-export declaration at the DCP where the goods were placed under the regime, and two scenarios may apply. As a rule, a T1GI transit declaration will be lodged from Gibraltar to the DCP; in this T1GI, the rules set out in another part of this arrangement will apply with the changes needed, with the UK, for Gibraltar, acting as customs office of departure and the DCP as customs office of destination; the T1GI will include, under supporting documents, the reference (MRN/item) of the T1GI under which the goods first moved from the DCP to Gibraltar, and the H1 will be included as the previous document. A prior T1GI will not be required before lodging the re-export declaration in two cases. One is where the discharge concerns inward processing or temporary admission and the goods leave directly from Gibraltar port, in duly justified cases involving exceptional circumstances; then the re-export declaration will be lodged at least 48 hours before the goods actually leave, and the goods will not be physically presented at the DCP but at a maritime location at the port of Gibraltar agreed with the DCP. The other is where the discharge concerns the customs warehousing regime for supplying vessels or aircraft under a rule in an annex of the treaty; then the 48-hour time limit will not apply, and the goods will likewise not be presented at the DCP but at an air or maritime location at Gibraltar port or airport as agreed by the DCP. Another destination is destruction without generating waste, in which case the UK, for Gibraltar, will submit proof to the DCP of placement, together with the relevant destruction agreement and evidence from an authorised waste management operator; where destruction generates waste that is not removed from Gibraltar, the transaction tax and, if applicable, customs duties will be payable. Another is placement within the EU customs territory under another special customs regime provided for in the UCC, subject to full compliance with all applicable legal conditions. Another is release onto the EU market, which will result in the discharge of the goods previously placed under the special regime: in such cases, a T1GI declaration will be lodged from Gibraltar to the DCP of placement, where an import declaration (H1) will be submitted and the applicable import duties and indirect taxes will be paid, and those import duties will be own resources of the EU.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, on the exit of goods from Gibraltar to third countries: in this case, the supply (bunkering or provisioning) of goods obtained in, or released for free circulation in, Gibraltar may also take place. Such supply will require the appropriate re-export declaration to be submitted at the DCP, and no prior T2GI or T1GI will be required.

This is a heading in the administrative arrangement between Spain and the UK, for Gibraltar, on customs: non-compliance and issues relating to the assessment and recovery of customs debts, tax debts or both, and accounting adjustments.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, four scenarios will be distinguished. For a T1GI declaration from the DCP to Gibraltar, where the regime could not be discharged, or where three months have passed since the DCP granted release to place the goods under the T1GI transit regime without correct discharge, these distinctions will apply. Where the regime declared at the DCP was release for free circulation, the DCP will have assessed the corresponding import duties, which were first recorded separately as own resources of the UK, for Gibraltar; in the event of incorrect discharge of the T1GI, the goods will be treated as having entered the EU customs territory irregularly, and an accounting correction will be made so that the import duties assessed become own resources of the EU; the DCP will also assess VAT and, where applicable, excise duties. Where the regime declared at the DCP was inward processing, temporary admission or customs warehousing, the DCP will assess the import duties, which will be recorded directly as own resources of the EU, together with VAT and excise duties, where applicable. For failure to discharge special customs procedures within the set period, or any irregularity while the goods remain under such regimes: under a rule in an annex of the treaty, the customs debt arising from any failure to comply with the conditions or obligations attached to an authorisation for the relevant special regime will be assessed by the DCP and recorded in the separate accounts as revenue of the UK, and the DCP will notify the customs authorities of the UK, for Gibraltar, of that circumstance by email, so that they may assess and collect the corresponding transaction tax and, where applicable, excise duty. For a T2GI declaration from Gibraltar to the DCP with irregularities in the discharge of the transit regime, the rules set out in another part of this arrangement apply. For a T1GI declaration from Gibraltar to the DCP with irregularities in the discharge of the transit regime, the DCP will assess the import duties, which will be recorded in the accounts as own resources of the EU, together with VAT and, where applicable, excise duties payable in Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the definition of professional equipment is set out in some articles of an annex to the convention on temporary admission signed at Istanbul on 26 June 1990.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, a rule of the treaty provides that, except in the cases set out in another paragraph of that same article, and apart from goods carried in travellers' luggage, goods imported into or exported from Gibraltar will necessarily move by land.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, under a rule in an annex of the treaty, professional equipment may be transported by land from any point in the EU customs territory to Gibraltar without using the NCTS system, so no T2GI declaration will be required. Another rule of that same annex likewise allows professional equipment to move from Gibraltar to the EU by land without a T2GI.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for movements between the EU and Gibraltar in either direction, EU law will apply with the changes needed, under a rule in an annex of the treaty. So the options for exporting professional equipment are: a standard customs declaration, under the UCC; a simplified declaration, under the UCC; an oral declaration, where the UCC-DA permits it, subject to authorisation by the customs authorities under the UCC-DA, which will be accompanied by the supporting document referred to in an annex to the UCC-DA, adapted to movements between the EU and Gibraltar, and stamped by Spain and Gibraltar; a declaration by any other act, under the UCC-DA; and an ATA Carnet, whose movement will be stamped or scanned (where carnets are digitised, from 1 June 2026) at any customs office of the EU customs territory, together with validation or activation of the carnet. Where the carnet is presented at a customs office other than a DCP, the DCP will merely endorse the exit.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, temporary admission may take place by a declaration by any other act, under a rule in an annex of the treaty; by a standard customs declaration (under the UCC), whether under the normal procedure or the simplified procedure (under the UCC-IA); or by an ATA Carnet, in which case the UK, for Gibraltar, will stamp or scan the temporary import movement.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in addition to the above, a rule of the UCC-DA allows an oral declaration to be used for temporary admission. That oral declaration must be accompanied by the document in an annex to the UCC-DA, adapted to movements between the EU and Gibraltar. Return movements from Gibraltar to Spain may also be carried out under a standard declaration, and no T2GI will be required in those cases.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the re-export of professional equipment may also be covered by an oral declaration accompanied by a specified annex document (under a rule of the UCC-DA), by a standard declaration lodged at the DCP (under the UCC), or by an ATA Carnet, in which case the re-export will be stamped or scanned by the Gibraltar customs authorities.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for reimportation, an oral declaration may be used under a rule of the UCC-DA, accompanied by a specified annex document, as provided for above.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where the movement is covered by an ATA Carnet, the DCP will stamp or scan the QR code relating to the reimportation.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs makes clear that goods other than professional equipment, such as machinery, that are destined for Gibraltar under the temporary admission regime on the basis of an ATA Carnet will require a T2GI declaration to be submitted for the movement from the DCP to Gibraltar. The same will apply to their re-export from Gibraltar back to the DCP.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for the entry of professional equipment originating in third countries, the treaty lays down no specific arrangements, so the rules set out in a section of this arrangement will apply. The arrangement stresses that goods entering under an ATA Carnet will be subject to a T1GI declaration for the movement from the DCP to Gibraltar. For the purpose of a rule of the treaty, a triptych will be put in place as follows, and the form's heading names that rule. It is a supporting document for an oral customs declaration for vehicles for personal use, for temporary importation and re-export. It has three copies: the original for the customs office of placement (Copy 1), the original for the customs office of discharge (Copy 2) and the original for the holder of the authorisation (Copy 3). Each copy has the same entries: declarant or holder of the authorisation (full name); goods to be placed under a temporary importation regime; chassis number; registration number; quantity; value; place of use and type of use of the goods; period for discharge of the regime; additional information; and date, name, signature and stamp of the customs authority. Its instructions say that Copy 1 will be presented to the customs office of placement (temporary importation) and Copy 2 to the customs office of discharge (re-exportation); that the box on the place of use and type of use of the goods, and the period for discharge, will be completed only where the goods are placed under the temporary importation regime by means of an oral declaration; and that Copy 3 will be a supporting copy kept by the holder of the authorisation, for both the placement under, and the discharge of, the temporary importation regime.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in application of a rule of the treaty, this arrangement sets out the practical arrangements for putting into effect two other paragraphs of that same article of the treaty.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the IT systems of Spain and of the UK, for Gibraltar, will be interconnected as set out below.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the UK, for Gibraltar, has a system in place able to access the EU NCTS through Spain's NCTS system. This setup complies with, and will evolve in line with, the specifications defined for the NCTS (New Computerised Transit System) by TAXUD (the European Commission's Directorate-General for Taxation and Customs Union).

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, accordingly, both Spain and the UK, for Gibraltar, receive the NCTS messages submitted by economic operators involved in transit movements that fall within their respective responsibility, and they communicate with one another, system to system, to exchange the messages established for the common domain, so as to manage the transit movement until it is completed. So an operator wishing to start a special GIB transit movement from Gibraltar to a DCP in Spain will submit the corresponding initiation message to the Gibraltar system, which, after carrying out the appropriate validations, will communicate the movement to the Spanish system by means of the NCTS message defined for that purpose.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the connection between the systems of Spain and of the UK, for Gibraltar, for exchanging NCTS common-domain messages will be carried out over the internet, through a secure connection under the HTTPS (HyperText Transfer Protocol Secure) protocol, with mutual authentication. This protocol sets up an encrypted communication channel that guarantees the confidentiality and integrity of the information exchanged and authenticates both the server and the client by means of digital certificates. Spain will provide the digital certificate required for this connection. For that purpose, Gibraltar will be assigned a valid identifier within the Spanish information system.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, SOAP web services will be used for exchanging common-domain messages between both systems, as defined in a web services guide for Spain-Gibraltar transit. This guide, provided by Spain, sets out an information-exchange architecture in which Spain acts, in both directions, as the service provider, and it makes available to Gibraltar an inbox infrastructure giving access to communications addressed to it.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, as the treaty provides for specific variations to the NCTS system for transit movements between Spain and Gibraltar, both those variations and the relevant NCTS common-domain messages required to put the treaty into effect will be specified in the web services guide for Spain-Gibraltar transit already mentioned, provided by Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, Spain and the UK, for Gibraltar, each operate their own information systems for managing the information on the movements covered by the treaty. Accordingly, for each movement, they will exchange information on its progress after receipt of the transit. For this purpose, the web services guide for Spain-Gibraltar transit provided by Spain will include a web service for providing information on: the destination of the goods; the supporting evidence for that destination provided for in the treaty (for example, proof of payment of the transaction tax); and any updates to the destination, in particular in cases involving special tax regimes of the UK, for Gibraltar, in Gibraltar. This service will operate in a similar way to the web services described above.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, to get real-time access to the port, airport and taxation systems of the UK, for Gibraltar, within the scope of four annexes of the treaty, user IDs or equivalent procedures must be supplied to Spain. At least in the first phase of putting the treaty into effect, aggregated information will be exchanged using structured file formats (such as CSV or similar), for example by email. If this is deemed necessary at a later stage, a web service similar to those described above may be defined to allow automated, machine-to-machine exchange of such information.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for managing incidents, communications will be sent to these national service desks or helpdesks: for Spain, helpdeskspain@correo.aeat.es; for the UK, for Gibraltar, ncts@gibraltar.gov.gi.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, by the end of 12 months after the treaty enters into force, Spain and the UK, for Gibraltar, will review the arrangements set out in this arrangement, with specific focus on the effectiveness and efficiency of access by the UK, for Gibraltar, to EU systems and of access by Spain to the systems of the UK, for Gibraltar. A primary aim of the review will be to identify and put in place areas for improvement and further easing of data access. If applicable, this arrangement will be changed accordingly.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says here that these administrative arrangements set out the practical arrangements for the joint visits referred to in an annex and an article of the treaty, between the competent authorities of Spain and of the UK, for Gibraltar.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, this point covers the supervision and customs control of goods entering, leaving or passing through the EU customs territory via Gibraltar under the treaty.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, this point covers the logistical cooperation needed to facilitate the work of Spain's customs authorities under the treaty.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the actions and measures that may be taken during joint visits will be carried out by the customs authorities of the UK, for Gibraltar. They will be carried out promptly. They will include, among others and in addition to those listed in an annex to the treaty, supervision of the operations and facilities of operators authorised to use special customs procedures in Gibraltar in line with another annex to the treaty.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, without affecting what this arrangement provides, and to make it work in practice, the participants will exchange the necessary information, in particular contact details for exchanging information and for scheduling and conducting joint visits, as well as the duly authorised and official services designated as competent to send and receive the communications concerned.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the competent authorities of Spain in excise duties and the fight against tobacco smuggling may visit the facilities of authorised excise warehouses for storing tobacco in Gibraltar under an annex to the treaty, under the suspension regime for excise duties, when deemed necessary for operational reasons linked to investigations or controls in the fight against tax fraud or smuggling, and always on prior justification of evidence of fraud.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, during such joint visits, the competent authorities of the UK, for Gibraltar, may adopt the verification and control measures listed after this.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, this point covers verifying online information, including customs and excise documents, that the competent authorities of the UK, for Gibraltar, will make available in real time on the tobacco tax and excise warehouses and storage facilities, together with documents such as invoices, delivery notes and accounting records.

An item in a list in the administrative arrangement between Spain and the UK, for Gibraltar, on customs: random counting of the stocks of tobacco products, based on a risk assessment.

An item in a list in the administrative arrangement between Spain and the UK, for Gibraltar, on customs: inspection measures on traceability charged on goods entering Gibraltar.

An item in a list in the administrative arrangement between Spain and the UK, for Gibraltar, on customs: taking samples of products for later technical analysis.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for the purposes of the actions and measures listed in an article of an annex to the treaty, the customs and excise authorities of Spain will have continuous real-time online access to the information set out in the following paragraph of that same article. The customs and excise authorities of Spain will have access to passenger information given to them by the competent authorities of Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, access to the information mentioned above will serve proper risk management, the programming and planning of joint visits, and making sure that the treaty and the relevant EU customs laws are complied with.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the exchange of this information, other than the advance passenger information, will be carried out through access by the customs and excise authorities of Spain, using specific user profiles, to the relevant IT systems in which the information is available in real time, whether those systems are run by port or airport concessionaires, transport companies or the customs authority of the UK, for Gibraltar. The customs and excise authorities of Spain will have access to passenger information given to them by the competent authorities of Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, if a system fails, information that is nevertheless available will be sent by email to the designated mailbox, with sufficient advance notice and in any event at least 24 hours before the arrival or departure of a vessel, ship or aircraft.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in light of the above, the customs authority of the UK, for Gibraltar, must specify, case by case, the method of information exchange, naming, where applicable, the computer systems where the information mentioned can be accessed. Specific user profiles will be provided for the customs and excise authorities of Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in relation to a rule of an annex to the treaty on the number and characteristics of all previous checks carried out by the competent authorities of the UK, for Gibraltar, on crew and passengers of all ships and aircraft entering or leaving the port and airport, the customs authorities of Spain will have continuous real-time online access through the specific electronic system provided by the competent authorities of the UK, for Gibraltar. Specific user profiles must be provided for the customs authorities of Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, if the system fails, information that is still available will be sent by email to the designated mailbox.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, information concerning a rule of an annex to the treaty, relating to measures and sanctions taken by the competent authorities of the UK, for Gibraltar, after the findings of a joint visit, will be exchanged by email to the designated mailboxes.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the competent authorities of Spain will send a notification to the customs authority of the UK, for Gibraltar, in order to carry out a joint visit by representatives of both authorities to inspect the relevant aircraft, ships, infrastructure and facilities in Gibraltar where a risk to the EU internal market for goods has been identified.

In the administrative arrangement between Spain and the UK, for Gibraltar, on customs, this opens a list of what the competent authorities of Spain will do during joint visits.

An item in a list in the administrative arrangement between Spain and the UK, for Gibraltar, on customs: to ask the competent authorities of the UK, for Gibraltar, to carry out the relevant actions and measures under the treaty and another paragraph of this arrangement; the competent authorities of the UK will proceed as requested.

An item in a list in the administrative arrangement between Spain and the UK, for Gibraltar, on customs: to ask for the intervention of the customs authorities of the UK, for Gibraltar, to ensure that they provide logistical support or perimeter security, where necessary, to ensure customs surveillance of goods.

In the administrative arrangement between Spain and the UK, for Gibraltar, on customs, this opens a list of what the competent authorities of the UK, for Gibraltar, will do for their part.

An item in a list in the administrative arrangement between Spain and the UK, for Gibraltar, on customs: to ensure that the competent authorities of Spain can accompany them to the relevant aircraft, ships, infrastructures and facilities, to provide the necessary logistical support (movement of goods and the like), and to guarantee the security and physical integrity of the site.

An item in a list in the administrative arrangement between Spain and the UK, for Gibraltar, on customs: the customs authorities of Spain will adopt all measures or customs decisions on the goods, ships and aircraft under EU customs control, and on the authorisations they have granted.

An item in a list in the administrative arrangement between Spain and the UK, for Gibraltar, on customs: the authorities of the UK, for Gibraltar, will adopt the appropriate measures and penalties in respect of operators who fail to comply with the treaty, and will inform the customs authorities of Spain as a rule of an annex to the treaty provides.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, based on the information provided, joint visits can be requested so that actions and measures can be carried out relating to two things: inspections of ships and aircraft at Gibraltar port or airport, to verify that goods are not loaded onto or unloaded from these ships and aircraft other than in accordance with a part of the treaty; and selective controls of goods carried in ships and aircraft at Gibraltar port or airport, based on a risk assessment.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for joint visits concerning the above, prior notification will always be required and will be given with sufficient advance notice.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where the actions and measures relate to random and risk-based inspection of goods brought by passengers of ships and aircraft, notifications will be given in line with the administrative arrangement on travellers.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, joint visits on operations or goods linked to special customs procedures under an annex to the treaty will always be carried out with prior notice to the customs authorities of the UK, for Gibraltar, given sufficiently in advance. This applies except in cases of imminent risk of non-compliance with EU customs legislation; in that case the prior notice will be given as soon as possible and, in any event, before a joint visit can be carried out.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in all cases where the conditions in a rule of an annex to the treaty are met, the customs authorities of the UK, for Gibraltar, will make themselves available so that the visit may be carried out jointly with the customs authorities of Spain without delay.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, all information exchanges and communications relating to joint visits will be in writing, in electronic format, either through access to IT systems, where the treaty provides for this, or, where it does not, by email to the designated mailboxes, with acknowledgement of receipt.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, this does not rule out the use of additional communication channels, such as telephone or instant messaging, in cases of urgency or imminent risks, or for the coordination of practical matters relating to the joint visit.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for these purposes, the Participants will exchange contact details, such as telephone numbers or email addresses.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the content of the information and the deadline for submitting it will differ depending on whether the information is provided in advance or after the event.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for advance information, the continuous real-time online access to the information set out in a rule of an annex to the treaty will be provided to the customs authorities of Spain in these ways. First, through the relevant IT run by port or airport concessionaires, transport companies or the customs authority of the UK, for Gibraltar, for: the time schedule of all incoming and outgoing ships and aircraft at the port and airport (Yacht Portal and Port Portal); arrival and leaving notices of all ships, boats and aircraft (Yacht Portal and Port Portal); and any available customs documents on the ships and aircraft (Yacht Portal and Port Portal). Second, through notification before the arrival or departure of ships or aircraft, in cases where the online access is unavailable, in the event of a system failure or in the case of spontaneous information. Spontaneous information: where an imminent risk of non-compliance with the treaty is known, the information will be sent case by case by email. Other information: it will be exchanged in writing, by email, every day, covering all information and documents on vessels and aircraft arriving or leaving on a specific day, or by mode of transport and day.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, information on passengers will be given to the customs authorities of Spain by the competent authorities of Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for information after the event, the continuous real-time online access by the customs authorities of Spain to the information set out in a rule of an annex to the treaty, and to the measures and penalties adopted by the customs authorities of the UK, for Gibraltar, as a result of the conclusions of a joint visit, will work in these ways: through the relevant IT system or systems run by the customs authorities of the UK, for Gibraltar, in real time; and by email, monthly, in the event of system failure or where other information is exchanged.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the customs authorities of Spain will send a notification to the competent authorities of the UK, for Gibraltar, in advance and in good time, in order to carry out a joint visit. That period of time will depend on whether there is an imminent risk of non-compliance with the treaty, or on the kind of actions and measures required to be taken.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for the procedure to supervise a customs decision that requires a joint visit to the premises or facilities concerning a standard authorisation, granted or to be granted, for the inward processing, customs warehousing or temporary admission procedure under an annex to the treaty, the notification will be sent at least one week before the scheduled date if there is no imminent risk of non-compliance with the treaty.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for other visits, the notification will be sent at least two hours before the scheduled visit.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where there is an imminent risk of non-compliance with the treaty that needs to be dealt with urgently, the notification may be given verbally as soon as the risk is known, but in every case before the joint visit takes place, and this does not affect a later written confirmation.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, as a general rule, the customs authorities of the UK, for Gibraltar, will be ready to carry out a joint visit at the time the customs authorities of Spain request. The Participants may agree other times when the notification is received. In any case, the customs authorities of the UK, for Gibraltar, will respond before the estimated date of the visit. A heading on the visit then follows.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, while a joint visit is being carried out, goods, ships or aircraft that are the subject of the joint visit may not enter the customs territory of the EU or otherwise leave the customs territory of Gibraltar.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, before carrying out a joint visit, the customs authorities of the Participants will meet at the Second Line Checks Area of the airport. They will travel to the place where the joint visit is to be carried out in vehicles provided by the customs authorities of the UK, for Gibraltar.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, officers of the competent authorities of Spain taking part in joint visits will be in civilian clothes but suitably identified. They will not carry service weapons.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in line with an article of the treaty, travellers may carry goods in their personal luggage when entering or leaving Gibraltar. Another article of the treaty provides that such goods, as well as pets and cash carried by travellers, will be subject to the rules set out in two annexes to the treaty.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, a rule in an annex to the treaty requires the Participants to set up arrangements on two things: the procedures, controls and checks that are to apply to such goods (the goods an earlier paragraph refers to), and the exchange of information, including on declarations.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs sets out those arrangements (the arrangements referred to in an earlier paragraph).

The administrative arrangement between Spain and the UK, for Gibraltar, on customs applies to travellers entering or leaving Gibraltar, whether by land, sea or air.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs also sets out specific rules for two groups: travellers entering Spain immediately after having entered Gibraltar by sea or air, and travellers leaving Gibraltar by sea or air immediately after having left Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, any mention of the “Second Line Checks Area” in this arrangement will be understood as meaning the Second Line Checks Area defined in an article of the treaty, which will contain areas designated for customs purposes. In these areas, spaces will be provided for carrying out the following, in line with this arrangement: entry checks and controls; the making and processing of declarations on arrival or departure; the setting up of counters; and any follow-up action.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, these areas (the customs areas an earlier paragraph refers to) will include public and restricted spaces, depending on the nature of the function being carried out.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, travellers will be subject to checks and controls, at random or on the basis of risk profiles, by the competent authority, which will be either the customs authorities of Spain or the customs authorities of the UK, for Gibraltar, to verify the formalities and procedures that apply under EU or domestic legislation.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the competent authority will be the customs authorities of the traveller's place of destination (on arrival) and of the traveller's place of provenance (on departure). This will apply to carrying out checks and controls and to lodging declarations on cash movements.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, declarations on goods exceeding allowances will, in every case where they are needed, be made to the customs authorities of Spain, except where travellers enter Gibraltar by land. Where travellers enter Gibraltar by land, those declarations will be made to the customs authorities of the UK, for Gibraltar.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where travellers are required to pay EU customs duties, the customs authorities of Spain will be responsible for calculating and collecting those duties, which, for travellers whose destination is Gibraltar, will be accounted for in accordance with the procedures set out in an annex to the treaty. Where travellers are required to pay any other indirect taxes, these will be assessed and collected by either the customs authorities of Spain or the customs authorities of the UK, for Gibraltar, depending on the traveller's destination.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the competent authorities of Spain or the competent authorities of the UK, for Gibraltar, as the case may be, will be responsible for carrying out any follow-up action required after checks and controls have been carried out. Where follow-up action is required, it will be taken in the restricted areas of the Second Line Checks Area, and it may concern regularisation or a formality relating to cash, the settlement of excess allowances, compliance with prohibitions and restrictions, including on pets and foodstuffs, or other formalities required for goods to be brought in or taken out.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, travellers carrying goods of a non-commercial character who arrive in Gibraltar from outside the customs territory of the EU by sea or by air will be exempt from the obligation to pay EU customs duties and indirect taxes, provided that: for travellers whose destination is Spain, the value of the goods does not exceed the thresholds set out in an EU Council directive (the “Union thresholds”); and for travellers whose destination is Gibraltar, the value of the goods does not exceed the thresholds set out in the Gibraltar Act of 2026 that puts the treaty into effect, where that Act applies an annex to the treaty (the “Gibraltar thresholds”).

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the customs authorities of Spain will not apply the “Union thresholds” to travellers who arrive in Gibraltar from within the customs territory of the EU, other than special fiscal territories, and whose destination is Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the customs authorities of the UK, for Gibraltar, will apply the “Gibraltar thresholds” to travellers who arrive in Gibraltar from within the customs territory of the EU and whose destination is Gibraltar, but only until the UK, for Gibraltar, takes the measures referred to in a rule of an annex to the treaty. After this period, and while those measures are in place, the customs authorities of the UK, for Gibraltar, will not apply these thresholds to such travellers.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the customs authorities of Spain will, for travellers entering Spain from Gibraltar by land, and without causing any obstacle to the unimpeded flow of persons and vehicles entering Spain from Gibraltar, apply the “Union thresholds”, but only until the EU takes the measures referred to in a rule of an annex to the treaty. After this period, and while those measures are in place, the customs authorities of Spain will not apply these thresholds to such travellers.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the customs authorities of the UK, for Gibraltar, will, for travellers entering Gibraltar from Spain by land, and without causing any obstacle to the unimpeded flow of persons and vehicles entering Gibraltar from Spain, apply the “Gibraltar thresholds”, but only until the UK, for Gibraltar, takes the measures referred to in a rule of an annex to the treaty. After this period, and while those measures are in place, the customs authorities of the UK, for Gibraltar, will not apply these thresholds to such travellers.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where goods carried by travellers exceed the allowance thresholds, the following will apply. Where the goods are of a non-commercial character: the appropriate declaration will be made; where EU customs duties apply, they will be assessed and collected in accordance with another paragraph of this arrangement; and indirect taxes applying in Spain or Gibraltar will be assessed and collected by the customs authorities of Spain or the customs authorities of the UK, for Gibraltar, respectively, depending on the traveller's destination. Where the goods are considered of a commercial character: where those goods are carried by travellers moving between Gibraltar and Spain by land, those travellers will be informed of the procedures required for shipment to or from Gibraltar, but no assistance will be given with completing them, as this must be done in accordance with the procedures set out in either of two annexes to the treaty. Where those goods are carried by travellers who enter or leave Gibraltar by sea or by air, except in the cases where exceptions may apply by sea as specified in the treaty, the goods will be seized and may be re-exported to their origin, abandoned to the public treasury or destroyed. Such goods may not be regularised through the procedures set out in either of those two annexes.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, an earlier paragraph of this arrangement will not affect any other measures that the competent authorities may apply for failure to make declarations or failure to adhere to legislation applying the arrangements in an article of the treaty relating to imports into and exports from Gibraltar.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for paying EU customs duties or indirect taxes applied under part of an earlier paragraph of this arrangement, the preferred means of payment will be electronic.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, goods of a non-commercial character carried by travellers from Gibraltar to the EU or the other way will, where the goods exceed the thresholds set out in several articles of an annex to the treaty, be eligible for the reimbursement of indirect taxes paid respectively in Gibraltar or in the EU. This paragraph will apply until the UK, for Gibraltar, takes the measures referred to in an annex to the treaty. After this period, and while those measures are in place, such goods will not be eligible for reimbursement of indirect taxes paid in Gibraltar or in the EU.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the customs authorities of Spain will grant a VAT refund to travellers whose provenance is Spain or other parts of the EU and who are leaving the territory of the EU through Gibraltar with goods bought in Spain or other parts of the EU, in line with the EU VAT Directive. The customs authorities of Spain will process that refund at the counter referred to in another paragraph of this arrangement. People resident in Gibraltar will not be treated as travellers for the purposes of this paragraph.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, and subject to another paragraph of this arrangement, travellers who carry cash worth EUR 10,000 or more have an obligation, when entering or leaving Gibraltar, to declare it and make it available for control. Such declarations will be made on the basis of the form in an appendix to an annex to the treaty.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the declaration will be made to the customs authorities of Spain where travellers intend to enter Spain immediately after arriving in Gibraltar from outside the territory of the EU, by air or by sea, or intend to leave Gibraltar for a place outside the territory of the EU, by air or by sea, immediately after entering Gibraltar from Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, an obligation to declare accompanied cash to the customs authorities of Spain will apply under Spanish regulations to travellers who intend to enter Spain immediately after arriving in Gibraltar from the territory of the EU, by air or by sea, or who intend to leave Gibraltar for the territory of the EU, by air or by sea, immediately after entering Gibraltar from Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the declaration will be made to the customs authorities of the UK, for Gibraltar, where travellers intend to enter Gibraltar immediately after having arrived in Gibraltar by air or by sea, or intend to leave Gibraltar by air or by sea immediately after having stayed in Gibraltar.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for travellers who carry accompanied cash by land between Gibraltar and Spain, a declaration will be made as follows: when leaving Spain for Gibraltar, to the customs authorities of Spain and then, immediately on entering Gibraltar, to the customs authorities of the UK, for Gibraltar; and when leaving Gibraltar for Spain, to the customs authorities of the UK, for Gibraltar, and then, immediately on entering Spain, to the customs authorities of Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, routine checks and controls on accompanied cash will not be required to be carried out for travellers moving between Gibraltar and Spain. This does not affect a rule of an annex to the treaty, or any non-discriminatory controls that the customs authorities of Spain may carry out in Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the reference to the competent authority in an article of an annex to the treaty is understood as referring to the competent authority of the UK, for Gibraltar, which will pass the information obtained in the cash declarations to the Gibraltar Financial Intelligence Unit, in line with a section of a Gibraltar Act on imports and exports.

This is a heading in the administrative arrangement between Spain and the UK, for Gibraltar, on customs. Its subject is food, plants, plant products and pets, as well as prohibitions and restrictions, including restrictive measures, which the heading calls “sanctions”.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, checks and controls on food, plants, plant products and pets carried by travellers, and on the legislation on prohibitions and restrictions and on sanctions referred to in an annex to the treaty, will be carried out for travellers entering or leaving Spain or Gibraltar from or to outside the customs territory of the EU, in line with the destination or provenance principle set out in an earlier paragraph of this arrangement.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where checks and controls are carried out by the customs authorities of Spain, they will be carried out in line with national legislation applying the EU legislation listed in an annex to the treaty, as that legislation applies to the personal luggage and the pet animals that accompany travellers, and the EU legislation referred to in another article of that annex.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where checks and controls are carried out by the customs authorities of the UK, for Gibraltar, they will be carried out in line with the legislation of the UK, for Gibraltar, applying the EU legislation listed in a rule of an annex to the treaty, as that legislation applies to the personal luggage and the pet animals that accompany travellers, and the EU legislation referred to in another rule of that annex.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the customs authorities of the Participants will, when carrying out the checks and controls described in this arrangement, work in a coordinated way, and during the same hours, within the area described in another paragraph of this arrangement.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the customs authorities of Spain will set up in that area the counter referred to in a rule of an annex to the treaty. To help cooperation, the customs authorities of the UK, for Gibraltar, will also set up a counter in the same area. The counters will be side by side.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the counters referred to in another paragraph of this arrangement will accept and process declarations, and process the payment of any duties or indirect taxes that travellers are required to pay.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where the customs authorities of Spain are required to carry out checks and controls on travellers who have entered Gibraltar by sea and whose destination is Spain, those checks and controls will be carried out in the area described in another paragraph of this arrangement, for as long as the conditions referred to in an article of the treaty and in a paragraph of the separate administrative arrangement on border checks and border surveillance are met. Where those conditions are not met and the customs authorities of Spain need to be present in the port to carry out first line checks and controls, they will notify the customs authorities of the UK, for Gibraltar, in advance, if possible, in writing. As a general rule, when officers of the customs authorities of Spain are in the port, they will be in areas designated for these purposes. They will be in civilian clothes but suitably identified, and they will not carry service weapons. The authorities of the UK, for Gibraltar, will escort those officers to and from the port and accompany them while they are at the port.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, given the removal of physical barriers between Gibraltar and Spain under an article of the treaty, and the application of another paragraph of this arrangement, where declarations are required to be made to the customs authorities of Spain by travellers moving between Gibraltar and Spain by land, by travellers who have entered Gibraltar by sea or by air, or by travellers who intend to leave Gibraltar by sea or by air, they will be made at the counter referred to in a different paragraph of this arrangement.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where declarations are required to be made to the customs authorities of the UK, for Gibraltar, by travellers moving between Gibraltar and Spain by land, they will be made at the counter referred to in another paragraph of this arrangement.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, routine checks and controls, for the purposes set out in this arrangement, are not required to be carried out for travellers arriving in Gibraltar from within the customs territory of the EU, or for travellers moving between Gibraltar and Spain. This does not affect a rule of an annex to the treaty, or any non-discriminatory controls that the customs authorities of Spain may carry out in Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the competent authorities of the Participants will make sure that travellers using Gibraltar airport and Gibraltar port are informed of the arrangements this administrative arrangement sets up. The competent authorities of the UK, for Gibraltar, will make sure that traveller flows are adequately separated, and that signposts and lanes (including green and red channels) are appropriately provided, for the checks and controls carried out under this arrangement. For arrivals by air, travellers will be separated into different lanes based on their destination.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the customs authorities of Spain and the customs authorities of the UK, for Gibraltar, will work together and exchange information in real time to make sure that travellers comply with what this arrangement requires.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for the purposes of this arrangement and so that they can plan and schedule checks and controls, the customs authorities of Spain will have continuous, real-time online access to the information referred to in a rule of an annex of the treaty. That information will also include advance passenger information given to the competent authorities of Spain in accordance with an article of the treaty and two paragraphs of another annex of the treaty.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the customs authorities of the UK, for Gibraltar, have responsibilities for carrying out checks and controls on travellers whose destination is Gibraltar; despite those responsibilities, the customs authorities of Spain may, on the basis of the advance information described in an earlier paragraph of this arrangement, be able to send a notification to the customs authorities of the UK, for Gibraltar, so that the latter carry out the actions and measures provided for in a rule of an annex of the treaty. Those actions and measures will be taken in the area described in another paragraph of this arrangement, in accordance with joint visits arrangements.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in addition, and taking into account that travellers arriving at the airport will go into separate lanes according to their destination for the purposes of checks and controls, the customs authorities of Spain may ask the customs authorities of the UK, for Gibraltar, on the spot and verbally, from the agreed location in the area described in one paragraph of this arrangement, to carry out the actions and measures provided for in a rule of an annex of the treaty on travellers whose destination is Gibraltar. The customs authorities of the UK, for Gibraltar, will take those actions and measures in the area described in another paragraph of this arrangement, in accordance with joint visits arrangements.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, two earlier paragraphs of this arrangement will also apply to actions and measures that the customs authorities of the UK, for Gibraltar, take under a rule of an annex of the treaty in relation to travellers leaving Gibraltar.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the customs authorities of Spain and the customs authorities of the UK, for Gibraltar, will exchange the following information on land movements between Gibraltar and Spain: where non-routine controls are carried out on persons moving between Gibraltar and Spain, the number and characteristics of those controls; and any measures or sanctions taken after those controls were carried out. This information will be exchanged by email, sent to designated email inboxes, every quarter.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that the object of this arrangement is to develop technical aspects of the protocol on tobacco. This does not affect the powers that the authorities of each of the Participants have in their own right.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, two annexes are approved by this paragraph; they contain the models of the information exchange forms provided for in two paragraphs of this arrangement, the first annex for the first of those paragraphs and the second annex for the second.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, and on the basis of another article, the Participants will, before the treaty enters into force, provide information on imports, sales or exports of raw or unmanufactured tobacco or tobacco products originating from or destined for Gibraltar, from 1 January 2025 until the treaty starts to be applied provisionally, both dates included.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the information described above that is to be exchanged will be broken down by quarter and will include the following data.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for raw or unmanufactured tobacco, the information to be exchanged will include details of: the quantity in kilograms; the variety; for imports, the origin and full identification of the supplier, specifying the third authority or territory of origin; for exports, the destination and full identification of the recipient, specifying the third authority or territory of destination; and the date of the operations by which raw tobacco enters and leaves Gibraltar.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for manufactured tobacco products, the information to be exchanged must distinguish between cigarettes, roll-your-own tobacco, shisha tobacco, hookah tobacco, cigars and cigarillos, and will include details of: the quantity in kilograms; the variety; for imports, the origin and full identification of the supplier, specifying the third authority or territory of origin; and for exports, the destination and full identification of the recipient, specifying the authority of destination.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the UK, for Gibraltar, will, at the time the treaty is signed, provide the data on the quantity of imported raw or unmanufactured tobacco and tobacco products that, as of the date the treaty is signed, have not been distributed for retail sale.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for tobacco products, information broken down by quarter must also be provided on the trend of retail prices for each type of tobacco product, specifying the weighted average price of the quantity sold, the minimum price and the maximum price. For wholesale or retail sales of each type of tobacco, this information will distinguish between direct retail sales and duty-free sales to pleasure cruises or other means of transport.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, both before and after the traceability mechanism referred to in another article is fully working, the competent authorities of the Participants will respond, within a maximum of seven days, to requests for information made within proceedings started in relation to the smuggling of tobacco products from or to Gibraltar. They do so within the scope of their respective powers, and this does not affect the conditions set by domestic law. Such requests will relate to identifying persons domiciled in their territories who may be considered directly or indirectly responsible for such acts.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, mutual assistance will consist of providing information on the prevention, investigation, detection and prosecution of smuggling activities, and on the enforcement of penalties imposed in such cases.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the information will be provided in line with a rule in an article of the treaty.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, and in line with the last sentence of a paragraph of another article, the competent authorities will also cooperate within investigations opened to establish the facts and to attribute responsibility.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where the alleged perpetrators of the acts are not resident in the territory of either of the Participants, the relevant competent authorities will provide all known information on the origin or movements of tobacco, in order to identify persons involved in their territory and the possible extent of their liability.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the information requested and to be provided will include information on both persons and goods under investigation, and may be supplied either in response to a request or spontaneously. It is supplied within the scope of the powers of the competent authority sending it (the transmitting competent authority), and this does not affect the conditions of domestic law that apply to that authority.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, information may be requested and provided on condition that the conditions of domestic law that apply to the requesting or the transmitting competent authority do not require the request or the provision of information to be made or transmitted through judicial authorities.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in urgent cases, the transmitting competent authority (the one sending the information) will respond to a request, or provide information spontaneously, as soon as possible.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, a competent authority of the requesting authority may, in line with the relevant domestic law, when submitting the request or at a later stage, ask for the consent of the transmitting authority for the information to be used as evidence in proceedings before a judicial authority. The transmitting authority may give its consent for the information to be used as evidence in proceedings before a judicial authority of the requesting authority.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in the same way, where information is provided spontaneously, the transmitting authority may give its consent for the information to be used as evidence in proceedings before a judicial authority of the receiving authority. Where consent is not given under this paragraph, the information received will not be used as evidence in proceedings before a judicial authority. In any event, the competent authority providing the information may, in line with the relevant domestic law, impose conditions on the use of the information provided.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the cooperation referred to in the preceding paragraph will include the areas provided for in two paragraphs of another article.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, and as provided for in the protocol on tobacco, the UK, for Gibraltar, will have a fully operational traceability mechanism, equivalent to the system in force in the EU, by 15 July 2026, for cigarettes and roll-your-own tobacco manufactured in or imported into its territory. The only exception is security features, which will be in place no later than 1 December 2026.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, for other tobacco products, the UK, for Gibraltar, will have the traceability mechanism fully operational within 24 months after the treaty enters into force.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, throughout the process before the traceability mechanism referred to in this paragraph is fully put in place, and from 15 July 2026, the competent authorities of the UK, for Gibraltar, will gradually provide the competent authorities of Spain with the information being put into the official repository where information and data from the various economic operators are recorded.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, and on the basis of an article of the treaty, the UK, for Gibraltar, will facilitate direct access for the competent authorities of Spain to the information collected in the traceability mechanism, once it is fully in force.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, until that direct access is put in place, the Participants will share information on the traceability of tobacco products in line with a paragraph of another article.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in addition, the UK, for Gibraltar, will set up monitoring mechanisms to exchange information with the competent authorities of Spain on raw tobacco, unmanufactured tobacco and other tobacco-related products that are introduced, imported or sold in Gibraltar, or that leave or are exported from Gibraltar, and that are not included in the traceability system.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the UK, for Gibraltar, will seize tobacco products that do not comply with the identification requirements of the traceability mechanism, health warnings and security measures, or those discovered in operations against illicit trafficking or smuggling. It will also notify the authorities of Spain within 24 hours of the seizure, and provide information every quarter on the destruction of such seized products.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, this paragraph will not apply to products that were imported into Gibraltar before 15 July 2026 and are still waiting to be put on the market before the end of the transitional period provided for in the transitional provision of these arrangements.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the competent authorities for the purposes of this arrangement are, for Spain, the Customs and Excise Duties Department, and, for Gibraltar, HM Customs Gibraltar. Under Spain's entry, the text adds that any irregularities detected in the field of health warnings will be communicated by the customs authorities of Spain to the competent Spanish health and consumer protection authorities.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, if any of the Participants breaches the obligations set out in these administrative arrangements (lack of cooperation, non-application of the treaty, poor administration and so on), the Participants may inform the EU-UK treaty committee on economy and trade.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs records that a rule in an annex of the treaty requires the UK, for Gibraltar, to apply a price differential mechanism for cigarettes, under which the price difference resulting from the overall excise duty that applies in Gibraltar will not exceed EUR 0.80 or 15% per packet of cigarettes, whichever leads to the lower difference from the prices in Spain.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, to establish the price differential, the cigarette market in Gibraltar will continue to be divided into four product categories: premium, upper-mid, lower-mid and budget, each with a minimum price set. In this way, the total price difference will not exceed either EUR 0.80 or 15% per pack of cigarettes, whichever results in the lower retail price differential. The calculation to determine this price differential will take into account the brand, the specific trade name, variety or commercial presentation, and the size or number of units per pack of cigarettes within the same brand.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where certain brands are available in Gibraltar but not marketed in Spain, the minimum retail price will be fixed according to the most similar product published by the Spanish Tobacco Market Commissioner.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the UK, for Gibraltar, will also publish every quarter in the Gibraltar Gazette the category of each brand sold on the market within Gibraltar and the minimum retail prices for each of the categories of cigarettes, to achieve and maintain the overall price differential requirement; and it will keep in place the mechanisms needed to make sure that all retailers effectively comply with those prices.

Under the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the provisions of these administrative arrangements will not apply to tobacco movements that started before the treaty enters into force and are completed afterwards.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that another paragraph of this arrangement will also not apply to stocks of tobacco products manufactured or imported into Gibraltar before 15 July 2026, which therefore do not include traceability identification codes, health warnings or security features: until 15 July 2027 for cigarettes and roll-your-own tobacco, and until twenty-four months from the effective implementation of these systems for other tobacco products.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that a joint working group (the Working Group) will be set up for the purposes of this arrangement. The Working Group will provide a forum for enhanced cooperation, the exchange of information and the coordination of operational collaboration relating to customs. It will meet at least every six months or whenever the Participants consider it appropriate.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that each Participant will have an equal number of members in the Working Group, and that they will inform each other of the members appointed and of any possible changes. The Working Group will include representatives of the relevant competent authorities of the Participants.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that the Working Group will facilitate the implementation and application of the relevant provisions of the treaty and of any supplementing agreement, and will resolve differences on operational matters related to its implementation and application.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that each Participant may refer to the Working Group any issue relating to the implementation, application and interpretation of the relevant provisions of the treaty or of any supplementing agreement.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that the Working Group will adopt its rules of procedure and work by joint decision between the Participants, and will designate points of contact to facilitate communication between the Participants as needed.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that the Working Group may propose action guidelines for the respective competent authorities.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that this arrangement will take effect on the date of the last signature and will operate from the date the treaty enters into force.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that this arrangement will remain in effect during the transitional phase set out in an article of the treaty, and for as long as its application is not suspended.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that either Participant may end this arrangement by written notification through diplomatic channels. It will then cease to be in effect on the first day of the twelfth month following the date of notification. If the treaty is terminated, this arrangement will cease to be in force.

This is the closing record of the administrative arrangement between Spain and the UK, for Gibraltar, on customs. It says that the record above represents the understandings reached between the UK, for Gibraltar, and Spain on the matters it refers to.

Signature block: the arrangement was signed at Madrid on 25 June 2026. For the UK, for Gibraltar, it is signed by Sir Alex Ellis, Ambassador to Spain and Andorra; for Spain, by Carlos Moreno Blanco, Secretary General for the European Union.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs has an annex that sets out a form, in Spanish and English, for information sharing for the purposes of a paragraph of the arrangements on tobacco traceability. Its fields are: the name and address of the sending authority; telephone and email; the maximum response time; the name of the contact person; the file number; the date and place the form was completed; and a description of the information sent, covering the amount of raw or unmanufactured tobacco and tobacco products that have been exported from or to Gibraltar; for raw or unmanufactured tobacco, the details of exports, specifying the variety, identification data of the exporter, the destination and the weight in kilos; and a further entry for tobacco products.

This entry of the administrative arrangement between Spain and the UK, for Gibraltar, on customs, written in Spanish and English, names the different types of tobacco products: cigarettes, rolling tobacco, hookah tobacco, cigars and miniature cigars.

This entry of the administrative arrangement between Spain and the UK, for Gibraltar, on customs, written in Spanish and English, covers the trend in retail prices for each type of tobacco product, giving the weighted average price for the amount sold, the minimum price and the maximum price.

This entry of the administrative arrangement between Spain and the UK, for Gibraltar, on customs, written in Spanish and English, covers retail sales and duty-free sales to leisure cruises or other forms of transport, and is followed by a field for the number of annexes.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs has an annex that sets out a form, in English and Spanish, for information sharing for the purposes of a paragraph of the arrangements on tobacco traceability. Its fields are: the name of the requested authority; the name of the sending authority; the name of the contact person sending the request; telephone; email; the file or reference number; the date information was requested; the nature of the request in relation to offences committed; the date the offence was committed; the specific information requested; the purpose for which the intelligence is requested; once received, the use of the intelligence received, to be specified; where tobacco or drugs were seized, if any; the registration numbers of the vehicles or vessels involved with the seizure of goods; the persons detained or investigated with the items seized, including copies of any ID or passport and/or addresses available; and seized tobacco.

This is the heading of an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs: the notification structure for joint visits. It has no text of its own.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs, under the heading on the purpose of the joint visit, states that a joint visit is required so that certain actions and measures may be undertaken: either actions and measures under five lettered subparagraphs of a provision of an annex to the treaty, or actions and measures relating to special customs procedures under another annex to the treaty, to be selected from these as appropriate.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs, under the heading on compliance with the treaty and risk to the EU's internal market for goods, states that verification of certain provisions of one title of the treaty is necessary (with a reference to an article of the treaty), with details to be provided, and that the risk to the EU's internal market for goods which has been identified (with a reference to a provision of an annex to the treaty) is as follows, with details to be provided. It then has entries for the date and time of the joint visit, with a blank line for the entry, and for the attendees.

This is the heading of an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs: the terms of reference for the independent consultative body referred to in an article of the treaty. It has no text of its own.

This is the heading of an article in an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs: principles and objectives. It has no text of its own.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that its terms of reference set out the procedures for selecting the independent consultative body to be set up by the UK, for Gibraltar, and Spain under an article of the treaty, which will advise and assess on the impact of a transaction tax and excise duties to be introduced in Gibraltar under the treaty (the independent body); they also explain how the independent body will carry out its functions and what financial arrangements will be put in place to allow the independent body to carry out its functions.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that the functions of the independent body are set out in two parts of an article of the treaty and in two articles of an annex to the treaty.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that the independent body will exercise its functions once the treaty enters into force.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that the independent body will carry out its tasks autonomously, independently and objectively, without the intervention of the Participants, except as foreseen in these ToR, and without the participation of any other person or body.

This is the heading of an article in an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs: definitions. It has no text of its own.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs gives these meanings for the purpose of these ToR: the Participants means Spain and the UK, for Gibraltar; the contiguous frontier zone means the territory of the municipalities that make up the Mancomunidad de Municipios del Campo de Gibraltar, in Spain; the independent body means the entity selected through the joint procurement procedure conducted by the Participants under these ToR to carry out the functions provided for under these arrangements, and subject to another rule that the text cites by number; the awarded contractor means the third person with whom a procurement contract has been concluded after the joint procurement procedure conducted by the Participants under these ToR, and once that contract is concluded, the awarded contractor will serve as, and for all purposes will be treated as, the independent body; the point of contact means the person, service or unit appointed independently by each Participant and authorised to channel all interactions with the independent body; the retail price means the total cost of buying goods in retail outlets, including all applicable taxes, fees, surcharges and additional costs when passed on to the consumer for buying those goods; and significant actual distortion means an effective impact on a trader's monthly turnover of over 10%, compared with its monthly average turnover over the three calendar years immediately before the relevant report or request, which cannot be explained by factors other than either the application of the transaction tax and excise duties in Gibraltar under an article of the treaty and an annex to it, or the differences in the levels of the transaction tax and excise duties charged by the UK, for Gibraltar, compared with the rates of VAT and excise duties charged by Spain, as assessed by the independent body.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that, for the purposes of a definition given above, the reference period will work as follows: for the purposes of the initial mapping under another article, the reference period will be the 3 calendar years immediately before the entry into force of the treaty; after that, the reference period will be the most recent 3 calendar years ending immediately before the date of the relevant report or request. A distortion will not be regarded as significant solely on the basis of aggregate turnover data where the increase in turnover is attributable to factors unrelated to the indirect tax. The independent body will carry out a causal analysis to assess whether the relevant change can be explained by extraneous factors other than those referred to in two sub-paragraphs of that definition. In making any finding, the independent body will specify which of those two sub-paragraphs the distortion falls under.

This is the heading of an article in an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs: procurement procedure, evaluation panel and evaluation of tenderer. It has no text of its own.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that the role of independent body will be awarded to a contractor through a procurement procedure conducted in accordance with EU rules, and based on the principles of transparency, equal treatment, proportionality, open competition and value for money.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that, for the purposes of this procedure, an Executive Committee will be set up, made up of two persons appointed by the UK, for Gibraltar, and two persons appointed by Spain. Its members will have sufficient experience in market research and public procurement procedures.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that an Evaluation panel will also be set up, made up of two persons appointed by the UK, for Gibraltar, and two persons appointed by Spain. They will have the necessary expertise in market research or procurement procedures. The persons on the Executive Committee may not be the same as those on the Evaluation panel.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that, once established, both the Executive Committee and the Evaluation panel will be convened at the initiative of either of the Participants. They will establish their working methods, including their decision-making rules, at their first meeting. The decision-making rules will include a mechanism for resolving any deadlock, including by reference to an independent tie-breaking procedure or escalation to the Participants in line with another article.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that the Executive Committee will prepare and approve the procurement documentation, which defines the subject matter of the contract and all the actions the contractor is to carry out to fulfil it, as well as the maximum amount to be paid to the successful bidder for providing the service, including the payment schedule and the method of certifying that the services have been performed correctly.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that the Executive Committee will also decide on the date of launch of a procurement procedure, and will prepare all documentation needed, as well as the channel for publishing the tender.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that the procurement documents will include the necessary information and award requirements, and in particular: the subject matter of the procurement procedure and the purpose of creating an independent body; the type of procurement procedure; administrative and technical specifications; the publication channel or channels; the type of public contract; exclusion, selection and award criteria; minimum requirements to be met by all tenderers; the contract model; the obligations and rights of the successful bidder during the performance of the service; the term and duration of the contract, including provisions for renewal and for ending the contract, both for cause and for convenience, together with continuity arrangements to make sure the functions of the independent body are not interrupted if the contract expires or is ended; the penalty regime; the legal regime applicable to the contract; the applicable appeal regime and the competent jurisdiction to hear them; and the bodies with the authority to sign the contract and its successive extensions.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that, in drafting the applicable exclusion, selection and award criteria, the following aspects will be taken into account. Technical capability of the applicants: only tenderers with recognised expertise in the field of market research and consumer behaviour will be considered, and the procurement documentation will make clear that the tenderers will be capable of providing clear and objective data on the markets concerned, and of advising on the changes needed in the rates of indirect taxation in Gibraltar in order to address significant actual distortions in trade. Professional secrecy and disclosure of information: because of the sensitivity of the data to be managed by the independent body, only tenderers with the proper security systems and protocols in place will be considered; in particular, the procurement documentation will require tenderers to demonstrate detailed policies and procedures for the handling, storage, transmission and destruction of commercially sensitive data, including compliance with applicable data protection legislation. Security and social order: the awarded contractor will not be established, or have its executive management structures, in the UK, Spain or Gibraltar. Without affecting that, preference will be given to contractors established in the EU or in an EEA/EFTA State. It will not be subject to control by a third country other than an EU country or any of the other EEA/EFTA States. However, this criterion may be waived for tenderers established in the EU, the UK or another EEA/EFTA State when controlled by another third country, if it has been subject to screening and, where necessary, to appropriate mitigation measures as understood in an EU regulation or equivalent UK regulations. The Executive Committee will agree to award the contract to the bid by the Evaluation panel and will submit the contract prepared by it to the competent bodies for signature.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that, during the execution of the contract, the Executive Committee will verify the correct execution of the contract for the purposes of payment to the contractor; will decide the imposition of any applicable penalties; and will propose the extension of the contract, if applicable, and, where appropriate, its modification.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that the Evaluation Committee will have the following functions. It will define the documents to be submitted by tenderers, taking into account the content of the technical and legal documents approved by the Executive Committee. It will promote the processing of the procedure, and for this purpose: it will promote the publishing of the tender in the Official Journal of the EU and the corresponding one of GIB, including the technical and legal documents approved by the Executive Committee, the tender models to be submitted by bidders, and establishing the maximum period for submitting tenders and the description of the basic rules of the process for selecting the best tender, and the announcement will specify whether tenderers may submit bids on paper, indicating, where applicable, the address to which the envelopes must be sent, or whether the tender must be submitted electronically; it will open the bids submitted, analyse whether the tenderers comply with the requirements and propose their exclusion where appropriate, and evaluate the bids accepted in accordance with the criteria established by the Executive Committee, and for this purpose it may ask the tenderers for clarifications of any kind, but the request for clarifications does not allow them to substantially change the terms of their bid; and it will propose the award to the best bid, once it has verified that any guarantee that may have been required has been lodged. It will notify the participants of the decisions taken by the Executive Committee.

The administrative arrangement between Spain and the UK, for Gibraltar, on customs says that tenderers will be evaluated by the Evaluation panel in a non-discriminatory manner, and that the evaluation will be based on the exclusion, selection and award criteria set out in the procurement documentation.

This is the heading of an article in an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs: how the independent body carries out its reporting functions.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the role of the independent body is to deliver two kinds of report: ad hoc reports and annual reports, each in line with a different provision that the text cites by number only.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the first of the annual reports referred to in an article of the treaty will cover the 12-month period from the provisional application of the treaty, and annually after that. The first annual report will be delivered no later than 90 days after the end of the first 12-month period, and 60 days each year after that. A heading follows: transaction tax.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, during the first three years, the annual report will give the independent body's general assessment and advice on how the standard rate of transaction tax is working. After the first three years, if the recommendations to apply rates different (higher or lower) from the standard rate of transaction tax to a selection of goods or categories of goods are not enough to avoid significant actual distortions in Gibraltar or the contiguous frontier zone linked to the differences between the rates of transaction tax charged by the UK, for Gibraltar, and the rates of VAT charged by Spain, the independent body may recommend, as part of its annual report, that the standard rate is adjusted upwards or downwards for all goods subject to that rate. In making any recommendations, the body will act within the limits set out in an annex to the treaty, in line with an article of the treaty. Both the annual report and the proposed recommendations will be notified without delay to the points of contact and the European Commission.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where the annual report contains recommendations to adjust the standard rate of transaction tax, those recommendations will specify, with reference to an article of the treaty and the relevant provisions of an annex to the treaty: whether the recommended adjustment is upwards or downwards, and the reasons why the earlier ad hoc recommendations on specific goods or categories of goods were not enough to avoid significant actual distortions, as that annex requires; the rate to which the standard rate of transaction tax should be increased or decreased in order to avoid the identified significant actual distortions linked to differences in the levels of transaction tax in Gibraltar and VAT in Spain; the evidential basis on which the independent body has concluded that the adjustment is necessary to avoid a significant actual distortion in trade, having regard to the definition in another article of these ToR; and the reasons for its recommendations, including the reasons for the relevant product market used as the basis for its competition assessment. A heading follows: excise duties.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, from the date the treaty enters into force, the annual report will give the independent body's general assessment and advice on how the excise duty rates are working and whether any significant actual distortions exist. In making any recommendations, the body will act within the limits set out in an article of an annex to the treaty, in line with an article of the treaty; this does not affect certain other paragraphs of that same article of the annex. Both the annual report and the proposed recommendations will be notified without delay to the points of contact and the European Commission.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where the annual report contains recommendations to adjust the excise duty rates, those recommendations will specify, with reference to an article of the treaty and the relevant provisions of an annex to the treaty, as referred to in the previous paragraph: whether the recommended adjustment is upwards or downwards; the specific excise goods concerned by the recommended adjustment; the rate to which the excise duties for those goods should be increased or decreased in order to avoid the identified significant actual distortions linked to differences in the levels of excise duty in Gibraltar and excise duty in Spain; the evidential basis on which the independent body has concluded that the adjustment is necessary to avoid a significant actual distortion in trade, having regard to the definition in another article of these ToR; and the reasons for its recommendations, including the reasons for the relevant product market used as the basis for its competition assessment.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, after the notification set out in a provision of these ToR, the point of contact for the UK, for Gibraltar, will confirm within one month, to the point of contact for Spain and the European Commission, that the adjustment or adjustments which had been considered necessary to avoid the identified significant actual distortions in trade (whether upwards or downwards) will be in force within one month from that confirmation.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, ad hoc reports on specific goods or categories of goods requested by the Participants under an article of the treaty will be notified to the points of contact and the European Commission within 15 working days of the date of the request. The Participants will not request an ad hoc report in relation to excise duties until three years after the entry into force of the treaty, in line with a provision of an annex to the treaty. To allow a reasonable period of time to pass after the entry into force of the treaty, so that the independent body is able to make an informed assessment of the effect that the new rates of transaction tax in Gibraltar are producing on trading conditions in relation to specific goods or categories of goods, the Participants undertake not to request such an ad hoc report before three months from the date of entry into force of the treaty.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where an ad hoc report contains recommendations to adjust transaction tax or excise duty rates for specific goods or categories of goods, those recommendations will specify, with reference to an article of the treaty and the relevant provisions of an annex to the treaty: whether the recommended adjustment is upwards or downwards; the specific goods or categories of goods to which the adjustment relates; whether the recommendation entails moving a good or category of goods from one rate category (standard, reduced or super-reduced) to another; the rate (higher or lower) which it recommends should apply, in line with the thresholds set out in that annex (in some of its provisions for the transaction tax and in another for the excise duties); the evidential basis on which the independent body has concluded that the distortion has existed for a period of at least 30 days and that the adjustment is necessary to avoid a significant actual distortion in trade, having regard to the definition in another article of these ToR; and the reasons for its recommendations, including the reasons for the relevant product market used as the basis for its competition assessment.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, after the notification set out in another provision of these ToR, the point of contact for the UK, for Gibraltar, will confirm within one month, to the point of contact for Spain and the European Commission, that the adjustment or adjustments which had been considered necessary to avoid the identified significant actual distortions in trade (whether upwards or downwards) in relation to the identified goods or categories of goods will be in force within a period of [one] month from that confirmation.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, where the independent body becomes aware that a new EU excise duty is to be introduced that would, under a provision of an annex to the treaty, also apply in Gibraltar, it may, if it considers it appropriate, recommend a temporary suspension of up to one year for the application of that new excise duty in Gibraltar. Any such recommendation will be notified to the points of contact and the European Commission without delay.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the European Commission will receive all reports, recommendations and proposed measures produced by the independent body at the same time as they are notified to the points of contact.

This is a heading in an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs: working methods.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the awarded contractor will recommend to the points of contact a methodology corresponding to the tasks that the independent body will exercise. The points of contact will, within 15 working days of receiving the recommended methodology, confirm their agreement or give reasoned objections. Where the points of contact do not agree on the methodology, or where either point of contact gives reasoned objections that are not resolved within a further 15 working days, the matter will be referred to the Participants [in line with another article] for resolution. No report or assessment under another article will be produced until the methodology has been agreed.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the methodology will include an initial mapping of the trade situation using the markets of Gibraltar and the contiguous frontier zone as references, evaluating them by comparing levels of average monthly turnover of traders with the evolution of retail prices in those markets. This mapping will be completed no later than 12 months after entry into force of the treaty. The areas of economic activity in trade of goods will be identified using a standard classification code such as NACE or SIC at no less than the 4-digit level of granularity. The initial mapping of the traders will analyse the annual average turnover of traders in the last three calendar years before the entry into force of the treaty, and give an overview of the retail prices of a basket of representative goods currently on sale both in Gibraltar and in the contiguous frontier zone. The basket of representative goods will be decided jointly by the points of contact on the recommendation of the independent body, and will be reviewed and updated at least once a year. The composition of the basket will be representative of the full range of goods traded in both markets. This initial mapping will also include references to possible goods or categories of goods at risk of causing significant actual distortions in the short term, particularly for the purposes of the ad hoc reports referred to in two paragraphs of another article of these ToR. This initial mapping will serve as reference data for the independent body's later reports on market conditions. The methodology will also include the specification that later annual reports will analyse the evolution both in the turnover of the identified traders carrying out the economic activities analysed and in the retail prices in the reference markets. It will also include the specification that, for ad hoc reports, the independent body will analyse how the sales volume of the specific good or category of goods has evolved over a period covering at least the 30 days before the request, as well as the differences in retail prices for that good or category of goods; this result may be contrasted with cross-border trade data obtained by collecting primary information on consumer behaviour, such as personal interviews with acquirers and/or traders; and the ad hoc report will take account of seasonal variation and relevant longer-term trends before reaching any finding of distortion. It will also include the specification that the information obtained by EU customs authorities on the export of goods towards Gibraltar from the EU customs territory and from non-EU customs territories will serve as a contrast source in preparing reports. It will also include a channel for economic operators to communicate relevant data directly; the independent body will verify and analyse the information reported by operators, assess whether there is a significant actual distortion in trade for a specific good or category of goods, and inform the Participants promptly. It will also include an explanation of how the concept of "retail price", as defined in another provision of these ToR, will be measured, collected and assessed in practice; in applying the concept of "significant actual distortion", as defined and elaborated in other provisions of these ToR, the independent body will apply the definition as set out there and will not adopt any interpretation that departs from, widens or narrows the scope of that definition. The methodology will also take account of any material change in the VAT or excise duty rates applicable in the contiguous frontier zone.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the points of contact may also report relevant data and information to the independent body, and that data and information will be shared at the same time with the other point of contact.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in an article headed duty of sincere co-operation, the points of contact will take all appropriate measures to ensure that the independent body has access to all relevant and real-time economic statistics and data it needs to carry out its mission as developed in the methodology agreed by the Participants. The points of contact will not take any action that could put at risk the achievement of the independent body's objectives.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in an article headed financial provisions, the UK, for Gibraltar, and Spain will provide the necessary funding to cover the setting up and normal functioning of the independent body, in line with the award contract and in equal shares. Each Participant will make its share of the funding available within 30 days of the date on which payment falls due. Detailed arrangements for payment, audit and budgetary oversight will be set out in the procurement contract.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, in an article headed dispute resolution, any disagreement between the Participants arising out of or in connection with these ToR or the conduct of the procurement procedure that cannot be resolved within 30 working days of the dispute being raised will be escalated by the Participants with a view to resolving it.

This is a heading in an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs: contract duration, performance and continuity.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, the procurement contract with the awarded contractor will be for an initial term of 3 years, renewable for successive periods of 3 years if the Participants mutually agree.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, either Participant may, through its point of contact, ask for the procurement contract to be terminated on grounds of serious and persistent failure by the awarded contractor to perform its functions under these ToR. Any such termination will require both Participants to agree to it.

Under an annex to the administrative arrangement between Spain and the UK, for Gibraltar, on customs, if the procurement contract expires or is terminated for any reason, the Participants will make sure that transitional arrangements are in place to keep the functions of the independent body continuous, including by appointing a new evaluation panel in line with another article of these ToR and starting a new procurement procedure no later than six months before the existing contract expires or, in the case of termination, as soon as reasonably practicable after the termination.