Transit Customs Regime Diagnosis and Recommendations ... - MCLI

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Draft Report for SSATP –MCLI Mozambique Transit Regime Project update and understanding of the SEWS, with the focus on transit transactions, and which is in the process of being rolled out in a pilot phase. It was clear that many of the challenges faced by earlier transit importers and exporters will be addressed through this system and MCLI used the opportunity to encourage all industry participants to buy into the system with support and commitment. The project driver to make recommendations to the transit regime is very timely as the same is being done to facilitate the SEWS and hence there is a lot of pressure on the project team to present the recommendations timely to the Mozambique Revenue Authorities, in order to have it mandated around the end of March 2012. The desk study that preceded these meetings looked at information from the following sources: Various meetings with leadership and team of Alfandegas Policy & Procedures Department of • Inputs from Ports & Container shipping line forum • Field Visit to Beira Port & Customs & Agents & ACIS • Engagement with Alfandegas Single Electronic Window System Team • MCLI transit customs workgroup minutes & notes (since 2008) • MCLI Members & CTA relevant communication over time (since 2008) • Presentations done at MCLI events • SADC Protocol on Trade • WTO – GATT section 5 and 7 • World Bank Reports/studies pertinent to corridors, transport, trade facilitation and customs transit regimes • UNCTAD reports pertinent to trade facilitation and customs transit regimes • Participation & reports at numerous regional trade facilitation platforms • Non Trade Barriers lodged in Trademark System The project was concluded with the presentation of the MCLI recommendations under the signature of the MCLI Chairman Dr Antonio Matos, through Dr Kekobad Patel, the CTA president for customs matters to The Head of Customs for submission to the president of the Mozambique Revenue Authority on 24 October 2011 as per the below submission, Early indications are that the adoption process may not be concluded prior to the end of March 2012, due to the upcoming December holiday period and the SSATP program is requested to consider to change the expiry date of the project contract from the 31 March 2012 to be 45 days after government adoption and signatory date of the revised TCR‘s, should Phase 2 of the project still to be implemented. P a g e | 21
Draft Report for SSATP –MCLI Mozambique Transit Regime Project CHAPTER 3: IMPORT, EXPORT AND TRANSHIPMENT VIA MAPUTO AND DURBAN Cost, Time, Complexity and Financial Impact Comparison Overview This chapter is addressed from a trade facilitation perspective and will outline the cost, transit time, complexity and financial impact to shippers importing and exporting to and from Johannesburg, South Africa using the ports of Durban, South Africa versus Maputo Mozambique with the objective of understanding where the barriers to trade exist and proposing recommendations to unblock the potential of the Maputo Corridor, the Port of Maputo and, most of all, the economy and people of Mozambique and South Africa impacted by the corridor. At present, the only mode where cargo is flowing from South Africa via Maputo is exports in which large volumes of coal, magnetite and chrome are shipped, primarily to China and India. Transit imports and transhipments have been inhibited due to the lack of clear regulation by customs which has, in turn, posed an additional burden on the port. It is however widely held by the port and shipping industry that a revision to have the final port of destination the acquittal port, will greatly contribute to a reversal of this position and see substantial volumes currently being transhipped in Durban for Beira and Nacala reverting to the port of Maputo. The top three cost differences 9 between Durban, South Africa and Maputo, Mozambique, per mode were identified and evaluated. This highlighted the major areas that require focus in order for the corridor to attract additional cargo flows. 9 See table 1 below P a g e | 22
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