Transit Customs Regime Diagnosis and Recommendations ... - MCLI

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Draft Report for SSATP –MCLI Mozambique Transit Regime Project This includes the port, railways, roads and borders that have been upgraded and which have to be continuously maintained at considerable cost. In order to capitalise on the asset base, unblocking of constraints on the corridor is essential to unlocking the potential for growth. P a g e | 47
Draft Report for SSATP –MCLI Mozambique Transit Regime Project 3.5 Recommendations for Legislation, Process and Procedure Review from a Trade Facilitation Perspective 3.5.1 Bonds and Guarantee Bond Application in Mozambique The application of bonds is not uniform throughout Mozambique and it is recommended that this is aligned for all ports. Transit Imports For land-locked countries that are served via Mozambique, it is recommended that legislation is aligned to best practise transit standards to facilitate the movement of transit goods with the least time and cost possible. However, if the Port of Maputo wants to compete for Johannesburg based cargo with Durban, then the application of the bond will have to be reviewed from a commercial perspective rather than a purely transit customs regime perspective as it will be extremely difficult to convince shippers to add additional costs and cash flow challenges in order to use the corridor. This is not an isolated case, as Walvis Bay, Namibia is also affected by the same constraint as South African shippers do not experience any transit regimes when shipping via South African ports or any additional costs as a result. If the rail service were bonded and reliable, then this would eliminate many of the requirements, however without a bi-directional flow of cargo, the rail service will also not function as volumes and economies of scale are required to make rail services economically viable . Reduction/elimination of customs bond should be considered as benefit to approved economic operators Transit Transhipments in Maputo Port A major barrier to transhipping in Maputo is that the port is not considered a customs controlled area and shipping lines have to provide bonds for cargo being transhipped. P a g e | 48
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Transit Customs Regime Diagnosis and Recommendations ... - MCLI

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