Transit Customs Regime Diagnosis and Recommendations ... - MCLI

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Draft Report for SSATP –MCLI Mozambique Transit Regime Project EXECUTIVE SUMMARY The objective of this MCLI Mozambique Transit Regime Project (Phase 1) was to carry out a diagnostic study of the existing Mozambican transit customs regime and to compare it to that of the South African government and SADC protocol and relevant international treaties. The customs transit legislation currently in force in the Republic of Mozambique was approved by Ministerial Diploma 10/2002 of 30 January, which approves the Customs Transit Regulations,. This document identifies those areas which have a negative impact on the Maputo Corridor and Port of Maputo cargo flows with regard to costs, time, complexity and other negatives, and proposes changes to the Mozambican Revenue Authority with regard to legislation, policies and procedures. Transit imports through the port of Maputo for the SA hinterland have to compete with direct imports through South African ports where there are no transit regimes, and fewer costs and complexities. Another area of lost opportunity for Mozambique is encapsulated in the present complexities of the transhipment legislation, policies, processes and procedures in Mozambique through the port of Maputo, which drives importers in Beira and Nacala and their transit flows to neighbouring countries to rather have their freight transhipped in South African ports instead of utilising the port of Maputo. It is estimated that every additional vessel calling a Mozambican port adds around US$ 250K revenue to the Mozambican economy which ultimately contributes to job creation and poverty alleviation. 1 MCLI has utilised a number of stakeholder meetings, expert inputs and other consultative mechanisms to ensure that this document presents the clear, consolidated voice of relevant industry stakeholders for the revisions to the Mozambican transit regime, which recommendations are contained in this report. We are gratified to find that these are in line with the proposals tabled by the Government of Mozambique regarding revisions already undertaken to facilitate the implementation of the Single Electronic Window System in Mozambique. If implemented in tandem, we are certain that these revisions will unblock substantial transit flows to Mozambican ports, release further investment and growth and ultimately make a substantial contribution to the economy of Mozambique and to the region. 1 MPDC Presentation at MCLI workshop February 2010 P a g e | 7
Draft Report for SSATP –MCLI Mozambique Transit Regime Project The key recommendations for changes to the Mozambican transit regime are reflected as a summary at the end of this executive summary and are detailed under the five universal components of a transit regime: Customs Transit Regulations (CTR‘s), Bonds Manifests Transit process authorisation Stakeholder engagement The implementation of these recommendations will have a significant impact on the competitiveness of the Maputo Corridor, and will have positive spill over effects on the other transit corridors of Mozambique, especially through the ports of Nacala and Beira. We believe that not only the aforementioned diploma (i.e. 10/2002) needs revision, but also that amendments to any other legislation that impacts on the over-all efficiency of transit cargo movements, such as, but not exclusively, customs definitions, bonded areas, acquittal processes and the like, will ensure simplicity, enable benchmarked timelines and will ensure reduced costs. Even though this project has been initiated by MCLI, which has as its core focus the promotion of increased cargo flows on the Maputo Corridor, it is clearly understood that proposals for revision of legislation, policy, process and procedures will impact on all Mozambican ports, hence it is the intention of this project to focus on the bigger picture which will ensure that Mozambique‘s bi-directional transit corridors become the first choice for the region‘s importers and exporters. 1. GENERAL CUSTOMS TRANSIT REGULATIONS (CTR’s) It is recommended that CTR’s be amended to ensure that they are consistent with the relevant provisions and definitions of the SADC protocol as a first step to harmonise the procedures with the neighbouring countries. 2. BONDS It is recommended that the definitions of RISK valuation be clarified to clearly establish the risk to be insured is that which is physically in transit at one time and at risk for loss of revenue to the state, with the preamble that for low risk, the requirement for a bond can be waived and that for continuous transit business an approved, authorised operator may operate under a comprehensive guarantee with the reference amount increased to $25 Million fixed for a term such as a year and not with repeat applications to the General Director of Customs (DGA). Furthermore that the bonded status of the railways be clarified as not requiring a P a g e | 8
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Transit Customs Regime Diagnosis and Recommendations ... - MCLI

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