Non-Tariff Barriers

Complaint

Complaint number

NTB-000-391  

NTB Type

7.4. Costly procedures  

Complaint

Withholding tax of 20% is charged on any payment made to a company not registered in Mozambique. Export of fresh produce to Europe by airfreight, or to South Africa by refrigerated road haulage cannot be carried out by any company registered in Mozambique. Therefore payment to service providers such as international airlines and road hauliers engaging in export of perishable goods to Europe or South Africa is subject to payment of 20% withholding tax. International airlines and road hauliers do not accept the deduction of this tax meaning the exporting company based in Mozambique must assume this as a cost, thus increasing the cost of export products, and reducing the margin made on exporting these products  

Status note

At the consultative meeting held between SADC Secretariat and Mozambique NTBs focal Points in Maputo on 19 September 2011, Mozambique reported that all compaines doing commercial business in the territory must be registered in that country. Foreign haulage companies wishing to participate in local business must therefore conform with legal requirements.  

Progress update note

Mozambique advised that the transit operations can only take place when covered by a guarantee, according to article 25 of the ministerial decree 10/2002 from January 30th.
Article 25-
''2. The expenses that result from fiscal accompaniment must be paid by the declaring at the collect office at the departure, before the transit movement begins. The cost of the fiscal accompaniment will be established by the chief of the customs post according to the parameters defined by the Revenue Authority”.  

Policy or regulatory NTB

No 

Location

Mozambique: Ministry of Finance (Government institution)  

Reporting Country or Region

Mozambique  

Country specific trade issue

No  

Date of incident

2011-02-14  

Status

Resolved  

Date of resolution

2011-09-29  

Product Description

Computer-assisted translation

• English
• Arabic
• French
• Portuguese

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Total value

0  

Date reported

2011-02-14 08:34  

Modified

2011-09-29 12:46