Transit Customs Regime Diagnosis and Recommendations ... - MCLI
Transit Customs Regime Diagnosis and Recommendations ... - MCLI
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 />
3.1.1.5 Top 3 Import Cost Barriers<br />
Bond/Guarantee Costs<br />
The bond is one of the largest single barriers to importing to South Africa via Maputo. The bond<br />
cost is more than the freight cost for a 40‘container, which makes it cost prohibitive with no<br />
savings on transit time to compensate.<br />
The high bond cost is one of the factors contributing to the fact that very little transit import<br />
cargo is moving between Port Maputo <strong>and</strong> the South African markets, which has a direct effect<br />
on road transport costs since no bi-directional flow means that round trip road trip charges are<br />
applicable on the corridor<br />
TABLE 2: Bond Cost Calculation<br />
CHARGE DESCRIPTION<br />
20' DRY/GP 40' DRY/GP<br />
Port Durban Maputo MPO vs DUR Durban Maputo MPO vs DUR<br />
Currency ZAR USD ZAR USD ZAR USD ZAR USD ZAR USD ZAR USD<br />
CLEARING<br />
Interest on Bond (1%) 0 0 896 128 896 128 0 0 896 128 896 128<br />
Bond Cost - Finance (4%) 0 0 3 675 525 3 675 525 0 0 3 675 525 3 675 525<br />
Guarantee Charges (4.1%) 0 0 3 584 512 3 584 512 0 0 3 584 512 3 584 512<br />
Acquittal Charges (1%) 0 0 896 128 896 128 0 0 896 128 896 128<br />
Border <strong>Transit</strong> Clearance 0 0 200 29 200 29 0 0 200 29 200 29<br />
<strong>Transit</strong> Port Clearance 0 0 700 100 700 100 0 0 700 100 700 100<br />
CLEARING CHARGES 0 0 9 951 1 422 9 951 1 422 0 0 9 951 1 422 9 951 1 422<br />
Note: This example is based on a commodity with a low duty % of 5% whereas the duty<br />
can be between 20-25%. With increased duty values, the cost barrier increase.-,<br />
Road Transport Rates<br />
Given that there is no bi-directional flow of cargo, currently round trip rates are applied to the<br />
corridor. This makes the cost prohibitive.<br />
TABLE 3: Round Trip Road Costs<br />
CHARGE DESCRIPTION<br />
Port Durban<br />
20' DRY/GP<br />
Maputo MPO vs DUR Durban<br />
40' DRY/GP<br />
Maputo MPO vs DUR<br />
Currency ZAR USD ZAR USD ZAR USD ZAR USD ZAR USD ZAR USD<br />
TRANSPORT<br />
Empty 20'/40' Cross-Haul 409 58 409 58 0 0 627 90 627 90 0 0<br />
Transport Order 80 11 80 11 0 0 80 11 80 11 0 0<br />
Road 9 000 1 286 19 500 2 786 10 500 1 500 9 000 1 286 19 500 2 786 10 500 1 500<br />
ROAD CHARGES 9 489 1 356 19 989 2 856 10 500 1 500 9 707 1 387 20 207 2 887 10 500 1 500<br />
For road transport the 20‘ rate is used based on a weight class of 13 metric tons per 20‘ as the<br />
majority of cargo moves in this category, even though a truck can carry 1 x 40‘ at 26 metric<br />
tones or 2 x 20‘<br />
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