Country Commercial Guide Mauritius

CHAPTER 6: TRADE REGULATIONS AND STANDARDS

Tariffs and Import Taxes

Mauritius operates a relatively streamlined trade regime, although peculiarities remain. The most significant is a two-tiered system whereby imports from certain countries are given preferential duties. Countries on the preferred list include the United States, members of the European Union and India. Countries not afforded preferential rates include Japan, Switzerland, and South Korea.

Over the years, the government has undertaken a number of customs tariff reform measures to rationalize the tariff structure. One such major reform carried out in 1994 was the combination of three separate import levies into one single tariff and the reduction of tariff rates from 60 to nine. Combined duties on most imports vary between 0 and 80 percent for countries on the preferred list. Imports of goods with duty at 55% from countries currently under general tariff (i.e., non-preferential tariff) are subject to an additional duty of 10%. A Value Added Tax (VAT) of 12% is payable by importers on the Cost, Insurance, and Freight (CIF) value of their imports. Vehicles, petroleum, alcoholic drinks, and cigarettes are subject to excise duties in addition to the basic import duties, ranging from 0 to 360%.

In the context of the government's on-going tariff reform program, in July 2000, significant reductions in import tariffs went into effect that eliminated the customs duty on about 1,500 raw materials and intermediates, while reducing it on another 300 items. In June 2001, a range of other products, including various industrial inputs as well as specialized spare parts for production equipment, were exempted from customs duty. Customs duties have also been reduced on several items, including infant feeding bottles, infant car seats and carriages, electric bicycles, magnetic tapes, rubberized textile fabrics, motor vehicle batteries and packing materials for industrial use. For information on tariffs, U.S. entities should contact either the Embassy or the Comptroller of Customs, Customs & Excise Department, IKS Building, Port Louis, Mauritius. Tel: (230) 240-3475; Fax: (230) 240-0434; E-mail: custompl@bow.intnet.mu.

Customs Valuation

In general, Customs valuation is based on the price paid for identical or comparable goods. In practice, Customs accepts the declared value on the invoice in most cases. For used machinery, equipment and vehicles the maximum reduction in duty is 48 percent. For other used goods, the reduction will be determined by the Comptroller of Customs on the basis of all relevant information available.

Mauritius is signatory to the WTO Valuation Agreement of July 1994 and has been implementing WTO-consistent practices since January 2000.

Import Licenses

Import permits are required for foodstuffs (milk, potatoes, corn, rice, beans, wheat, fruits, infant formulas, food additives, spices, fats and oils, pharmaceuticals, cigarettes, insecticides, petroleum products, cement, PVC pipes, plastic feeding bottles, corrugated iron sheets, gold, weighing machinery, baking equipment, syringes, electric water heaters, electric cables, motor vehicles (including used vehicles, parts and accessories), pocket lighters (gas fuelled), crash helmets and fireworks.

Importation of animals, animal feed, plants, and seeds must satisfy phytosanitary conditions and are subject to rigorous quarantine regulations.

The following state enterprises control the import of several commodities: State Trading Corporation (rice, wheat flour, petroleum, cement), Agricultural Marketing Board (products that compete with domestic produce, e.g potatoes and onions), Tea Board, Tobacco Board and the Mauritius Sugar Syndicate.

Export Controls

Mauritius permits the export of all items except products of strategic importance or whose market access is restricted by quota. Products requiring export licenses include sugar, tea, vegetables, fruits, meat, fish, textiles, pharmaceuticals, gold, live animals, corals, and shells.

Import/Export Documentation

The following are necessary for imported goods: commercial invoice, bill of lading/airway bill, certificate of origin, and phytosanitary or veterinary certificates where applicable. An import permit is required for the goods noted above.

The following export documents are required: EUR1 Certificate for export of goods to the European Union, COMESA Certificate of Origin for exports to the Common Market for Eastern and Southern Africa, SADC Certificate of Origin for exports to the Southern African Development Community, IOC Certificate of Origin for exports to countries of the Indian Ocean Commission, G.S.P. Form A for GSP-eligible goods destined for the United States, AGOA Textile Certificate of Origin for export of textile products to the United States, ordinary certificate of origin for other exports, export bill of entry, bill of lading/airway bill, and the export invoice.

Imports from the United States that are transshipped through third countries are eligible for preferential tariff rates provided they are accompanied by a certificate of origin from a recognized chamber of commerce or a government agency in the third country.

Temporary Entry

Authorities may authorize the temporary admission of goods when the importer furnishes adequate security to cover duty and taxes otherwise payable. The importer may be exempted from furnishing security provided the goods are covered by documents for temporary admission issued under any international convention approved by the Government of Mauritius. Additional information can be obtained from the Comptroller of Customs, Customs and Excise Department, IKS Building, Port Louis, Mauritius, Phone: (230) 240-3475, Fax: (230) 240-0434.

Goods destined for re-export normally enter duty-free. Such goods must be held in bonded warehouses. Items for trade fairs may be imported duty-free.

Labeling/Marking Requirements

Weights and measures must be in metric form. Food labels should include the name of the food, name and address of the manufacturer, ingredients, country of origin, and manufacture and expiration date and the net quantity. Weights and measures must be in metric form. Further information is available from the Permanent Secretary, Ministry of Industry and Commerce, Commerce Division, Air Mauritius Building (8th floor), President John Kennedy Street, Port Louis, Mauritius, Phone: (230) 210-3774; Fax: (230) 201-3289.

Prohibited Imports

Imports of the following items are prohibited: ball valve bottles, caps for toy guns, recapped tires, white phosphorous matches, certain firecrackers, kerosene stoves, water scooters, ivory and tortoise shell, underwater fishing guns, candy in the form of cigarettes, toy crash helmets, cigarette papers, used motor vehicle spare parts, electric water heaters with bare elements, portable electric lamps, teething rings, rolling machines (other than industrial-type rolling machines) for cigarette manufacturing, blue asbestos and its products, and items containing chlorofluorocarbons (CFC). A detailed list is available from the Embassy.

Standards

The Mauritius Standards Bureau manages the ISO 9000 series. MSB is responsible for certifications, but exporters may use foreign certification bodies if requested by their clients overseas. The objective of the National Quality System Certification Scheme is to recognize companies that meet the requirements of MS ISO 9001, MS ISO 9002, MS ISO 9003, or MS ISO 9004. MSB is also planning to introduce MS ISO 14,000 for companies which put in place a sound environmental management system.

A registration certificate issued by the MSB is valid for two years and may be renewed. Additional information can be obtained from the Director, Mauritius Standards Bureau, Villa Road, Moka, Mauritius, Phone: (230) 433-3648, Fax: (230) 433-5051.

Free Trade Zones/Warehouses

Mauritius Freeport: The Mauritius Freeport was created in 1992 as a regional warehousing, distribution, and marketing center. In addition to more than 15,000 square meters of warehousing facilities provided by the Mauritius Freeport Authority, the government agency responsible for developing the Freeport, 55,000 square meters of infrastructural facilities have been constructed in recent years by private developers. These facilities include warehouses, cold rooms, and an International Trade Merchandising Center.

In addition, the Freeport Authority is planning to set up a Freeport Air Cargo Logistics Center at the SSR International Airport for airport-based freeport activities such as courier services, mail ordering, telemarketing, warehousing, airport logistics facilities, aircraft maintenance and aviation-related services. As a first step, MFA is planning to do a feasibility study at the end of 2001. Contact Mr. Gerard Sanspeur, Director-General, Mauritius Freeport Authority, Freeport Zone 5, Mer Rouge, Port Louis, Mauritius; Tel: (230) 206-2500; Fax: (230) 206-2600; E-mail: freeport@bow.intnet.mu

The Freeport has grown substantially in recent years. At the end of 2000, the total number of freeport licenses issued reached 790, of which 224 companies were operational in such activities as transshipment/re-exportation, processing and assembly, and ship repair. Goods are imported mainly from China, India, Thailand and re-exported to Madagascar, Hong Kong, Singapore and African countries. Main products re-exported include frozen fish, textiles and accessories, machinery and electronic equipment, vehicles and spare parts, chemicals, pharmaceuticals, and foodstuffs.

Export Processing Zone: The Export Processing Zone was established in 1970 to encourage manufacturing for export. There is no formally designated zone, and EPZ companies are located throughout the island.

Textiles and apparel account for 80% of EPZ exports, but there has been some diversification into manufacture of watches, electronic measuring instruments, jewelry, leather goods, toys, and optical goods. The government is now promoting information technology, printing and publishing, high-precision plastics, electronics, light engineering, and pharmaceuticals.

An informatics park was established several years ago and a number of firms are currently engaged in typesetting and other pre-press operations, data processing, CD-ROM publishing, image processing and related activities. The park provides ISDN and other high bandwidth services.

EPZ companies are exempt from import duties and Value Added Tax on machinery, equipment, and spare parts, and from tax on dividends. They are liable to a 15% corporate tax.

Membership in Free Trade Arrangements

Mauritius is a member of the Southern African Development Community, the Common Market for Eastern and Southern Africa, the Indian Ocean Commission, and the Indian Ocean Rim Association for Regional Cooperation, and signatory to the World Trade Organization, United Nations Conference on Trade and Development, and the EU-ACP Cotonu Agreement (formerly the Lome Convention). Mauritius benefits from the GSP schemes of Australia, Austria, Canada, the EU, Japan, Switzerland and the United States.

Southern African Development Community (SADC)

Mauritius joined SADC in 1995. Members include South Africa, Lesotho, Swaziland, Botswana, Namibia, Angola, Mozambique, Malawi, Zimbabwe, Tanzania, Zambia, Congo and Seychelles. The main objective is economic cooperation and the creation of a free trade area by the year 2008. SADC currently has projects in transport and communications, tourism, industry, trade, agriculture, and energy, among others. Additional information on SADC can be obtained on the Internet at http://www.sadcreview.org.

Common Market for Eastern and Southern Africa (COMESA)

The 20-member COMESA countries, representing a market of 350 million consumers, includes Angola, Burundi, Comoros, Congo, Djibouti, Ethiopia, Eritrea, Kenya, Malawi, Mauritius, Namibia, Rwanda, Seychelles, Madagascar, Sudan, Swaziland, Uganda, Zambia, Zimbabwe, and Egypt. COMESA is implementing a Free Trade Area (FTA) among the member countries. Already nine countries out of the 20 have joined the Free Trade Area (FTA) and are applying zero duty on imports from the group of nine. They include Mauritius, Djibouti, Kenya, Madagascar, Malawi, Sudan, Zambia, Zimbabwe and Egypt. The deadline for the elimination of all tariff barriers among all member countries is October 30, 2001. COMESA is increasingly seen as an important market for products from the Mauritius Freeport.

Indian Ocean Commission (IOC)

The IOC includes Mauritius, Madagascar, Seychelles, Reunion and the Comoros. Projects, which are funded mainly by the EU, have been implemented in meteorology, tourism, environmental protection, fishing, and compilation of trade statistics.

EU-ACP Cotonou Agreement

Mauritius is signatory to the Cotonou Agreement (which has replaced the Lome Convention in 2000) whose main objective is to promote trade between the European Union and the African, Caribbean and Pacific states (ACP). Under the agreement, ACP products that satisfy rules of origin criteria enter the EU duty- and quota-free. Mauritian sugar and textile exports enter the EU under this agreement.

Indian Ocean Rim Association

The Indian Ocean Rim Association for Regional Cooperation (IOR-ARC) as established in March 1997. It comprises Mauritius, Madagascar, Mozambique, Tanzania, Kenya, South Africa, Australia, India, Sri Lanka, Singapore, Malaysia, Indonesia, Oman and Yemen, Bangladesh, Seychelles, Thailand, Iran, and the United Arab Emirates. The Association's main objective is to promote trade and investment among member countries.