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Transit Customs Regime Diagnosis and Recommendations ... - MCLI

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Draft Report for SSATP –<strong>MCLI</strong> Mozambique <strong>Transit</strong> <strong>Regime</strong> Project<br />

<strong>Customs</strong> <strong>Transit</strong> <strong>Regime</strong>. The freight forwarding community in Mozambique is less<br />

advanced than that of South Africa, <strong>and</strong> the constraints of transiting an international<br />

border, with the still comparatively low volumes <strong>and</strong> the imbalance in trade, are<br />

obstacles for the development of traffic along the corridor <strong>and</strong> for economic growth in<br />

Mozambique. The current <strong>Customs</strong> legislation for transit, <strong>and</strong> its implementation by the<br />

freight forwarding community in Mozambique, presents several constraints which need<br />

to be identified <strong>and</strong> addressed through adjustments of the legislations on one h<strong>and</strong>, <strong>and</strong><br />

dissemination of training material on the other h<strong>and</strong>.<br />

Furthermore, transit imports through the port of Maputo for the SA hinterl<strong>and</strong> have to<br />

compete with direct imports through South African ports where there are no transit<br />

regimes, <strong>and</strong> fewer costs <strong>and</strong> complexities. Another area of lost opportunity for<br />

Mozambique is encapsulated in the present complexities of the transhipment legislation,<br />

policies, processes <strong>and</strong> procedures in Mozambique through the port of Maputo, which<br />

drives importers in Beira <strong>and</strong> Nacala <strong>and</strong> their transit flows to neighbouring countries to<br />

rather have their freight transhipped in South African ports instead of utilising the port of<br />

Maputo. It is estimated that every additional vessel calling a Mozambican port adds<br />

around US$ 250K revenue to the Mozambican economy which ultimately contributes to<br />

job creation <strong>and</strong> poverty alleviation. 7<br />

The review <strong>and</strong> recommendations for changes to the transit regime, will, once<br />

implemented, have a significant impact on the competitiveness of the Maputo corridor,<br />

<strong>and</strong> will have positive spill over effects for the other transit corridors of Mozambique,<br />

specifically through the ports of Nacala <strong>and</strong> Beira.<br />

In underst<strong>and</strong>ing the importance of collaboration between <strong>MCLI</strong>, the stakeholders <strong>and</strong><br />

the customs department of the Mozambican Revenue Authority, the project was<br />

launched at a meeting on the 8 th of September 2011 which was chaired by the Director<br />

General of Alf<strong>and</strong>egas, Dr. Domingo Tivane, <strong>and</strong> attended by <strong>MCLI</strong> representatives,<br />

senior representatives of the Policy <strong>and</strong> Procedures department, the Single Electronic<br />

Window project <strong>and</strong> the director for the Southern Region where the project objectives<br />

7 MPDC Presentation at <strong>MCLI</strong> workshop February 2010<br />

P a g e | 19

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