Complaint
- Complaint number
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NTB-000-585
- NTB Type
-
8.8. Issues related to transit
- Complaint
-
New transit procedures are causing a lot of delays in the clearance of transit cargo through Mozambique Ports. According to the new transit procedures, Malawian transporters /clearing agents are requested to make cash deposits bond requirements to the Mozambican customs at the borders or prior to transit clearance at the Port of discharge to Malawi and other neighbouring countries like Zimbabwe, Zambia, among others. According to Mozambique, the requirement is made because transit goods end up disappearing within Mozambique and their Government lose a lot of revenue. In addition to that, customs clearing and Forwarding Agents need to undergo re-registration formalities.
The major problem about these issues is that most Malawian businesses were not aware and there is a crisis at the borders with a lot of Malawian trucks that cannot clear. Even on the part of Mozambican customs they are also learning the new system.
- Status note
-
On 11th September 2013, Mozambique Focal Point reported that the alleged NTB´s related to the transit procedures in Mozambique, were removed, through the approval of Ministerial Diploma nº 116/2013 of 8th of August, which approves the Norms and Specific Principles to be taken into account in the implementation of Customs Transit of Goods. This Ministerial Diploma repeals the Ministerial Diploma nº 307/2012, of 15 of November.
Pursuance to reaching a common understanding on this matter, FCFASA members in Malawi reported that CAFAAM Executive Committee Members together with Malawi Revenue Authority, Ministry of Trade and Ministry of Transport and Executives from Malawi, travelled to Cuchamano and Nyamapanda to appreciate the various challenges (delays, costs, etc.) which came about as a result of the new transit procedures introduced in Mozambique in April 2013. The delegation met with Mozambique customs , Beira , Port authorities and had an opportunity to interact with Mozambican Clearing and Forwarding Agents and some Malawian drivers during the launch of the Diploma nº 116/2013 of 8th of August.
The delegation reported:-
1. It was agreed that the new Transit Bond Procedures in Mozambique are in line with international practice and appreciated the fact that in the absence of these procedures, a lot of traders were smuggling goods into Mozambique under the guise of “transit cargo”.
2. Mozambican Clearing agents had been given adequate notice to put in place the required bond guarantees although they were not ready by implementation date.
3. The general consensus was that the conditions (e.g. the required collateral) set up by banks, insurance companies and the authorities themselves for setting up the transit bond guarantees were too tough to be met by transporters and forwarding agents.
4. To this end, the Mozambican Government’s had exempted some products (tobacco, tea, sugar, cotton, etc.) from monetary bonding and reduced bond values from 100% on containerized cargo to 20% or 35% on break-bulk cargo. This measure would reduce pressure on the available bond levels for other cargo not exempted.
5. That there was need to license more “Despachantes” to speed up clearance procedures or alternatively, allow forwarding agents to be doing own customs clearing of cargo which they are moving.
6. There was need for Station Managers at the various borders to be taking stock of trucks available at the borders every day and talk to drivers who have stayed at the border for more than a day to encourage them to proceed with their journey so as to minimise the prevalent corrupt practices by some customs officers, guards, clearing agent.
7. A proposal to set up a “Help Desk” at the borders to achieve transparency and quarterly meetings between the various players at senior level.
8. Joint border training sessions between customs and other authorities and clearing & forwarding agents to be enhanced.
9.That various customs authorities establish a deliberate policy for Accrediting Clearing agents based on an exhaustive Risk assessment of each one of the agents and track record in order to “smoke out” fraudulent clearing and forwarding agents who cheat importers or assist them with smuggling practices,.
10. That Mozambican authorities should endeavor to translate and display the various rules and regulations into English to enable none Portuguese speaking people to understand the applicable regulations.
11.Mozambique customs advised that:
a. Clearing Agent need to quickly do a Supplementary Entry if there are any changes to a declaration (e.g. amending border of exit, amending values or quantity of goods, etc.) to avoid truck delays at the border or bond acquittals being blocked.
b. Once CORRECT documents are lodged and payment effected, their processing time is up to 3 hours only.
c. They would as far as possible, be rotating their staff to avoid corruption if they familiarize themselves too much to one border station.
- Progress update note
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On 12 May 2013, the President of the Federation of Clearing and Forwarding Associations of Southern Africa (FCFASA) gave a latest first hand update on the situation following his visit to Nyamapanda/Cuchamano border where he held discussions with both Zimbabwean and Mozambican clearing agents at the border. He submitted his report confirming that:
1.The new system that Mozambican Customs is using DOES NOT have any technical problem at all. The problem is that a draw-down transit bond guarantee system that was introduced is not being supported by adequate bonds. At Cuchimano, for example, ONLY ONE clearing agent is licensed to clear transit cargo. This agent's bond is not big enough to cover the duty on all the transit traffic that passes through the border. As a result, The agent is only processing consignments of less than USD10 000 using the new system. Mozambican authorities are allowing higher value consignments to be processed using the old system. Even the smaller value consignments of less than USD 10000 are sometimes experiencing delays pending acquittal of others that would have been cleared before them.
2. Only four (4) clearing agents are licensed under the new single window system at Forbes/Machipanda border.
3. In addition to toll fees that are of varying amounts depending on the distance, a total of USD 119 is payable to Mozambican authorities for each transit truck. The breakdown of the charges is as follows: USD20 is a transit tax due to Customs, USD24 is for MCNet the system provider, USD25 is the clearing agent fee and USD50 is a fee that is due to the Bond Guaranting company. The USD50 due to the Bond company is for contractual clients only. If one does not have a contract with the company, this fee increases to USD100 (increasing the total payable from USD119 to USD169).
There is also an insurance fee of USD45 that is valid for 30 days to cover both the hoarse and trailer of a truck.
On 10th May 2013, Mozambique Revenue Authority reported that:
1.Mozambique Revenue Authority would like to emphasize that the Mozambique Single Window does not have any technical difficulties and does not have any problems as many would like to portray.
2. The Mozambique Single Window introduces transparency to the process of transit of goods and NOT new customs regulations. Single window only serves to implement the existing requirements, which ensure that ALL TRANSPORTERS are registered and approved by Mozambique Customs and that they have adequate customs guarantee bonds in place. The measures are fully in line with SADC procedures and contain no additional requirements.
3. Mozambique Revenue Authority also sought to clarify that THERE ARE NO DELAYS experienced by registered transporters or those agents WITH ENOUGH GUARANTEE BONDS LODGED WITH Mozambique CUSTOMS.
4. In Mozambique, a bond/guarantee is registered with Customs for a fixed amount, and based on this amount any transaction falling within this value may proceed in transit/bond to its destination. For example, say a bond of 1,000,000,00 MT is registered with Customs this will entitle the trader to remove as many consignments as long as the value for total consignment in transit do not exceed 1,000,000 MT. The acquittal of bond/guarantee is done automatically as soon the goods exit the country. In this way the trader can move goods expeditiously without being worried that his/her bond limit has been reinstated.
5. The Mozambique Single Window has good infrastructure and the service is available at all borders. MRA is not clear about the allegations of non-availability of the system at the borders because it keeps monitoring very closely and knowing if border offices service is down. The complainant is requested to provide more information.
6. The Government of Mozambique expresses concern about the current level of false transit declarations whereby some transporters indicate goods as being detained for transit through Mozambique, when they actually intend to sell them into local consumption within the country. This practice has become extremely widespread and has resulted in considerable loss of revenue to the state as well as created unfair trade for local companies who pay their full import duties and taxes.
7. As part of ongoing sensitization programme, MRA to make sure that operators are fully sensitized about the introduction of the Single Window well in advance, Mozambique has trained about 5000 stakeholders.
8. Mozambique requests the SADC Secretariat to assist by advising Member States to sensitize all transporters and transit operators to get registered with Mozambique customs and have an adequate customs guarantee bond in place in order to avoid possible constraints for transit goods.
Mozambique Revenue Authority are very pleased to assist all complainants to ensure the fast transit of goods from Mozambique and are always available for further clarifications, where needed.
- Policy or regulatory NTB
- Yes
- Location
-
Mozambique: Delegação Aduaneira de Zobwe (Border post)
- Reporting Country or Region
-
Malawi
- Country specific trade issue
-
No
- Date of incident
-
2013-04-29
- Status
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Resolved
- Date of resolution
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2013-09-11
- Product Description
-
All products
- Total value
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0
- Date reported
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2013-04-30 13:50
- Modified
-
2013-09-27 15:06
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