Non-Tariff Barriers

Complaint

Complaint number

NTB-000-628  

NTB Type

6.3. Special supplementary duties  

Complaint

Malawi is currently applying a discriminatory excise duty regime that discriminates against imported cigarettes and foreign manufacturers of cigarettes. The Malawian government formally introduced the two-tier discriminatory cigarette excise regime on 3 June 2011. Currently, for imported cigarettes, a specific excise tax of US$ 30 per 1000 cigarettes is levied, compared to the excise rate of US$ 15 per 1000 cigarettes with more than 70% local content. This practice infringes the national treatment principle which requires that cigarettes, once they have crossed the border and entered the domestic market of Malawi, be taxed no less favourably than locally produced cigarettes. In this regard, and under its regional commitments, Malawi should not be allowed to discriminate against foreign made cigarettes by applying higher and discriminatory excise duties.  

Status note

On 13 November 2014, Focal Point Malawi reported that this NTB had been resolved (Customs and Excise (Tariffs) (Amendment) order 2014 ) and Malawi applies a uniform rate. Communication to COMESA Secretariat, currently coordinating the tripartite process, had since been sent and a report of the same was also submitted to the NTBs Focal Point meeting that was held in Nairobi, Kenya on 23 - 25 September, 2014.
uploaded for clarity.  

Progress update note

On 22 April 2014, COMESA NTB focal point reported that the NTB Focal Point Malawi had undertaken to investigate with the relevant authorities and report back as soon as possible.  

Policy or regulatory NTB

No 

Location

Malawi: Malawi Revenue Authority (Government institution)  

Reporting Country or Region

Malawi  

Country specific trade issue

No  

Date of incident

2014-03-01  

Status

Resolved  

Date of resolution

2014-09-23  

Product Description

Cigarettes

Computer-assisted translation

• English
• Arabic
• French
• Portuguese

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Total value

15.00  

Date reported

2014-03-10 15:18  

Modified

2014-11-13 13:06