Country Commercial Guide 2006

Chapter 5: Trade Regulations and Standards

• Import Tariffs
• Trade Barriers
• Import Requirements and Documentation
• U.S. Export Controls
• Temporary Entry
• Labeling and Marking Requirements
• Prohibited and Restricted Imports
• Customs Regulations and Contact Information
• Standards
• Trade Agreements
• Web Resources

Import Tariffs       

Mozambique’s trade weighted average tariff is 9%, one of the lowest in Africa. Duties on imported goods range from zero to 20 percent. A duty of 20 percent is levied on consumer goods; a value-added tax of 17 percent is also assessed at the time of importation. Import duties represent approximately 15% of government tax revenue.

Trade Barriers       

Mozambique does not use import quotas. The often time-consuming and bureaucratic customs clearance procedures are considered by many to be a significant non-tariff barrier.

Import Requirements and Documentation   

Import Taxes and License Requirements – No import taxes, aside from tariffs and VAT, are imposed, except on sugar and some luxury items. All importers must be licensed by the National Directorate of Trade, which is part of the Ministry of Industry and Commerce. Registration is straightforward and has not been used as a non-tariff barrier.

Special Import/Export Requirements and Certifications – All importers and exporters must be duly licensed by the Ministry of Industry and Commerce. Pre-shipment inspections are currently mandatory for all imports. The importation of live animals (other than domestic pets) requires veterinary certificates. Sanitary and phytosanitary requirements exist in legislation for the importation of foodstuffs and plant materials, but are rarely enforced in practice. Special import permits and licenses are necessary for pharmaceuticals, firearms, munitions, and explosives. In July 2004 the Ministry of Agriculture tightened controls over the importation of frozen chickens. All products must bear a health certificate from the country of origin, certifying they are free of disease, or importers may face sanctions.

Warranty and Non-Warranty Repairs – Spare parts imported for repair purposes are subject to normal tariffs. Goods are not normally shipped to Mozambique for temporary repair.
 
Industrial Free Zones/Warehouses – The government issued Decree No. 61/99 on September 21, 1999, establishing industrial free zones (export processing zones).  The decree set up an Industrial Free Zone Council, which approves companies as industrial free zone enterprises, thereby providing them customs and tax exemptions and benefits.  There are two essential requirements for Industrial Free Zone status:  job creation for Mozambican nationals and the exportation of at least 85% of annual production.  Industrial Free Zone developers enjoy an exemption from customs duties, VAT and tax on the importation of construction materials, machinery, equipment, accessories, accompanying spare parts and other goods destined for the establishment and operation of the Industrial Free Zone.  The processing of cashew nuts, fish and prawns are not acceptable industrial free zone activities.  Free zone concessions are granted for a renewable period of 50 years.  Mozambique’s large export-oriented investment projects of recent years, such as MOZAL and SASOL, operate as industrial free zones. 

U.S. Export Controls      

No information is currently available.

Temporary Entry       

Temporary entry is permitted for goods that are going to be used temporarily in Mozambique and then removed.   In addition, goods in transit are exempt from customs duties. Such procedures work reasonably well at the ports of Beira and Nacala for shipments destined to Malawi, Zambia, and Zimbabwe. As the procedures are not frequently used for goods entering through the Maputo port, gaining the exemption can be complicated and time consuming.

Labeling and Marking Requirements    

Labeling requirements for foodstuffs and pharmaceuticals remain on the books from prior to independence, but are not enforced.

Prohibited and Restricted Imports    

Mozambique prohibits the importation of pornographic materials and certain controlled substances, and carefully regulates the importation of pharmaceuticals, firearms, and explosives.

Customs Regulations and Contact Information   

Further information on Mozambican customs regulations and guidelines can be obtained at the following website: www.alfandegas.org.mz, or by contacting the U.S. Embassy in Maputo.

Standards   

NIST Notify U.S. Service

Member countries of the World Trade Organization (WTO) are required under the Agreement on Technical Barriers to Trade (TBT Agreement) to report to the WTO all proposed technical regulations that could affect trade with other Member countries. Notify U.S. is a free, web-based e-mail subscription service that offers an opportunity to review and comment on proposed foreign technical regulations that can affect your access to international markets. Register online at Internet URL: http://www.nist.gov/notifyus/

Trade Agreements       

SADC Trade Protocol – Mozambique is one of eleven members of the Southern African Development Community (SADC) currently implementing the organization’s trade protocol, as discussed in Chapter 2. Tariffs have been eliminated on trade in certain goods with other implementing members. Tariffs on additional items are to be eliminated by 2012, although final details remain under discussion, and Mozambique has until 2015 to comply. If fully implemented, the protocol will give Mozambican products duty free access to a market of over 200 million people with a GDP of $275 billion, with reciprocal treatment for the goods from ten other nations including South Africa.
 
AGOA/GSP – Under the African Growth and Opportunity Act (AGOA) and the Generalized System of Preferences (GSP), a wide range of Mozambican products receives duty-free entry to the United States. A key provision of AGOA is the duty-free entry of apparel manufactured in Mozambique, including apparel manufactured with third-country fabric. The preferential arrangements contain no reciprocal treatment for U.S. products entering Mozambique.
 
EU – Under the terms of the Cotonou Agreement, certain Mozambican products currently enjoy reduced tariffs or duty-free entry into European Union member nations under an Everything But Arms (EBA) arrangement.   Mozambique is currently negotiating an economic partnership agreement with the EU as a member of a block of other SADC countries.

Other Bilateral Trade Agreements – In December 2005, Mozambique entered into a preferential trade agreement with Malawi. This agreement was an update of a similar agreement signed by the Portuguese colonial authorities with Malawi prior to Mozambican independence.  It allows for free trade of goods originating in the two countries, excluding beer, certain soft drinks, tobacco, sugar, vegetable oil, chickens and eggs, office equipment, petroleum products, weapons, ammunition and explosives.  The Mozambique-Malawi agreement has simpler rules of origin that those outlined in the SADC Trade Protocol.  Mozambique also finished negotiations with Zambia for a preferential trade agreement, but as of January 10, 2006, had not yet signed a final agreement.

Web Resources      

SADC Trade Protocol: http://www.sadcstan.co.za/protocol.html

AGOA/GSP: http://www.agoa.gov/

Cotonou Agreement: http://europa.eu.int/comm/development/body/cotonou/index_en.htm