Mauritius WT/TPR/S/5
Page 35
IV. TRADE POLICIES AND PRACTICES BYMEASURE
(1) Overview
1. Inthepastdecade,Mauritius'traderégimehasbeenextensivelyliberalized.In1983quantitative
restrictions andpricecontrols affected alargemajority ofimports, tariffs wereashighas600percent,
andtheeffective rateofprotection tomanufacturing wasestimated at89percent. In1984 and1985
quantitative restrictions weredismantled, pricecontrols lifted onallbutessential items andtheexport
taxonsugar wasreduced. In1991import licensing, which hadapplied tothevastmajority ofimports,
waseliminated forallbutalimited range ofproducts subject tohealth, sanitary orstrategic controls.
In1994athree-column tariffconsisting ofthefiscal duty, thegeneral customs dutyandthepreferential
dutywasconsolidated intoonecolumn, andthenumber oftariff ratesreduced from 60toeight. At
thesame time, themaximum customs dutywaslowered to100percent, theimport levyabolished,
andtheincidence ofspecific duties wasreduced totwoitems.
2. While themaximum dutyhasbeenlowered considerably, thesimple average tariff isnearly
30percentandevidence oftariff escalation suggests thatprotection ofdomestic value added remains
high. Under incentive schemes andinspecific cases, dutyconcessions andexemptions areavailable
forawidevariety ofindustries. Tariffs onindustrial products arebound for76(outofapossible 5,010)
tarifflines. Imports dutiable at55percentorhigher fromnon-preferential sources attract anadditional
charge of20percentandmotor vehicles imported from these suppliers areliable toa40percent
surcharge above standard excise duties. Differing excise duties apply toequivalent localandimported
goods.
3. Import andexport licensing applies toanumber ofproducts forhealth, safety orenvironmental
reasons orother technical requirements. Technical standards aremainly voluntary; Mauritius adopts
international standards whenever possible. Licensing mayalsoserve toencourage localproduction
ofagricultural crops, e.g.potatoes andonions, ortosafeguard State-trading privileges forrice,cement
andpetroleum products.
4. TheGovernment doesnotoperate localcontent schemes orprovide export subsidies, although
certain industries, including (butnotlimited to)export enterprises, areeligible fortaxconcessions
andpreferential interest ratesondevelopment loans. Export performance isassisted byanairfreight
rebate scheme forfresh fruit, flowers andelectronic parts. Measures toimprove thecompetitiveness
oftheMauritian economy include schemes todiffuse technology, public financing ofresearch and
development efforts andtaxallowances formodernization andtraining.
(2) Measures Directly Affecting Imports
(i) Registration
5. Established importers andexporters must register withtheIncome TaxDepartment andare
issued anidentification number which mustbeusedinallcustoms documentation. Occasional importers
andexporters must alsoregister withtheCustoms Department.WT/TPR/S/5
Page 36Trade Policy Review
(ii) Tariffs
(a) Structure oftariffs
6. Mauritius hasapplied theHarmonized System (HS)since 1January 1988; with5,436 lines
attheeight-digit HSlevel. Prior toJune1994, thetariff schedule contained 60different tariff rates
andthemaximum customs dutywas600percent. Thetariff consisted ofthree columns: ageneral
dutycolumn, acolumn specifying preferential rates(thedutyapplied toscheduled territories) anda
fiscal charge.
7. InJuly1994arevised andsimplified tariffwasintroduced which consolidated thefiscal charge,
thegeneral andthepreferential dutyintoasingle customs duty. Thenumber ofdifferent tariff rates
wasreduced toeight from 60andtheduties lowered on4,400 items. Themaximum dutyhasbeen
setat80percent, although forgoods dutiable at55or80percenta20percentadditional dutyon
imports from"non-scheduled territories" isinplace. Most major trading partners, including member
States oftheEuropean Union, andtheUnited States formapartofthescheduled list;notable exceptions
include Japan, theRepublic ofKorea andSwitzerland (Table IV.1). Theuseofspecific duties has
alsobeenvirtually eliminated; inthe1994tariff onlytwotariff linesweresubject tospecific duties.1
8. Theunweighted average tariff across allsectors is29percentwithastandard deviation of
26.3percent. Between broad economic sectors theaverage tariffformining products is14.1percent
withlittle(4.7percent) deviation around themean, 17.7percentforagriculture withastandard
deviation of16percentandamean tariff formanufacturing of30.1percentwhere thedispersion
isgreatest at26.8percent(Table AV.1).
9. Tariffs areapplied onanadvalorem basis except forthetwolinesmentioned above. Duties
range from0to80percent(zero, 5%,15%, 20%, 30%, 40%, 55%and80%). Taking intoaccount
thatgoods from non-scheduled suppliers dutiable at55percentormore areliable toanadditional
rateofdutyof20percent,thenumber oftariff ratesortiersincreases toten,i.e,though notindicated
clearly inthetariff, defacto there isa75percentanda100percentduty.
10. Although theaverage tariff ishigh, nearly 20percentofalltariffs arezero; overtwothirds
ofalltariffs are20percentorless. Another 23percent,almost entirely inmanufacturing, areequal
toormore than55percent(Chart IV.1). High tariffs, tariff "peaks", occur inanumber of
manufacturing branches, withthegreatest absolute frequency intheapparel sector.
1These apply tothong-type sandals (6402.201) andtheir straps (6406.101) attherates ofMau Rs15/pair
andMau Rs10/pair, respectively.Mauritius WT/TPR/S/5
Page 37
Table IV.1
Scheduled Territories
Arab Republic ofEgypt
Ashmore andCarier Islands
Australian Antarctic Territory
Bahamas
Bangladesh
Barbados
Belgium
Bermuda
Botswana
British Antarctic Territory
British Honduras
British Indian Ocean Territory (comprising theChagos
Archipelago, Aldabra, Farquahar andDesroches)
British Solomon Islands Protectorate
Brunei
Burma
Burundi
Canada
Cayman Islands
Channel Islands
Christmas Island
Cocos orKeeling Islands
Commonwealth ofAustralia
Comoros Islands
Cyprus
Democratic Republic ofMadagascar
Denmark
Djibouti
Ethiopia
Falkland Islands anddependencies
Fiji
France
Gambia
Germany
Ghana
Gibraltar
Gilbert andEllice Islands Colony
Grand Duchy ofLuxembourg
Greece
Guyana
Heard Island andMcDonald Island
Hong Kong
India
IsleofMan
Italy
JamaicaKenya
Leeward Islands (comprising Antigua, Montserat,
St.Christopher, Nevis andAnguilla)
Lesotho
Malawi
Malaysia (comprising Federation ofMalays, Sarawak and
Sabah)
Malta
Monaco -French territory
Mozambique
Namibia
Nauru
NewZealand
Nigeria
Norfolk Island
Pakistan
Papua
Portugal
Republic ofIreland
Republic ofSouth Africa
Ross Dependency
Rwanda
Seychelles
Sierra Leone
Singapore
Somalia
Spain
SriLanka
St.Helena (with Ascension andTristan daCunha)
Swaziland
Sweden
Tanzania (comprising Tanganyika andZanzibar)
Territory ofNewGuinea
TheNetherlands
Tonga
Trinidad andTobago
Turks andCaicos Islands
Uganda
Union oftheSoviet Socialist Republics
United Kingdom
United States ofAmerica
Virgin Islands (British)
Western Samoa
Windward Islands (comprising Dominica, Grenada, St.Lucia
andSt.Vincent)
Zambia
Zimbabwe
Source: Government ofMauritius.
11. Theschedule ofduties exhibits asignificant tendency towards tariffescalation withthesimple
average unweighted tariff forrawmaterials 14.8percent, forsemi-manufactures 17.2percentand
forfinished goods 39.5percent(Table AV.1).2
2Allagricultural andmining products areincluded inthecategory rawmaterials; excluding these products
reduces theaverage tariff (onindustrial rawmaterials) to11.2 percent.WT/TPR/S/5
Page 38Trade Policy Review
(b) Tariff bindings
12. IntheUruguay Round Mauritius bound ten(four-digit) tariffitems, equal to76six-digit tariff
lines, onindustrial products at65percent; bound items include plastic andironandsteeltubes and
pipefittings, rolled glass, fork-lift trucks andpublic transport motor vehicles. Likeother participants,
allofitsagricultural products arebound; theceiling binding hasbeensetat122percent,withlower
ratesofbound duties applied to25tariff lines. Potatoes, onions, milk, butter, wheat, maize andrice
haveallbeenbound at37percent; other items, including bananas, teaandshelled groundnuts have
beenbound at82percent.3Foralloftheitems bound, Mauritius hasalsobound "other duties and
charges" at17percent.4Applied ratesonallofthese products areconsiderably lower.
(c) Tariff preferences
13. While preferential tariffs persewereeliminated withthe1994 tariff, onimports originating
from non-scheduled sources dutiable at55percentor80percent, anextra charge of20percentis
levied.
14. Tariff preferences fortrading partners whoaremembers ofCOMESA (Common Market for
Eastern andSouthern Africa) have been levied since October 1994 attherateof30percent(a
3Schedule CXVIII, 15April 1994.
4Thiscorresponds totheimport levyof17percentwhich wasabolished on30June 1994.Mauritius WT/TPR/S/5
Page 39
70percentreduction) ofthecustoms duty.5Under theterms ofthePTA(Preferential Trade Area
forEastern andSouthern African States), preferential tarifftreatment wasproduct-specific; according
totheCOMESA Treaty allproducts areeligible forpreferential tariff treatment.
15. Between 1989 and1993, imports from non-scheduled territories (i.e.liable togeneral tariff
treatment) lostmarket share while those under preferences nearly doubled. Most ofthiswasaccounted
forbyincreasing imports from theEC,butimports from other scheduled territories andCOMESA
partners havealsobeenrising; thelatter from1to2.5percentinthefive-year period (Chart IV.2).
(d) Tariff quotas
16. Mauritius applies notariff quotas toimports.
(e)Tariff concessions
17. Dutyexemptions areextended under various investment incentive schemes (Section (4)(ii) and
Table IV.14). Inaddition tothese, there are93unclassified exemptions orconcessions, including
suchuniversally exempt merchandise asre-imports, allimports bythePresident oftheRepublic,
donations andsamples. Duty reductions oninputs forvarious manufacturing industries, e.g.tools
forthebuilding industry ormachinery andequipment tobeusedexclusively inagriculture, arealso
available. These arelisted inPartIIoftheFirstSchedule totheTariff. Exemptions orconcessions
inthetariff aregranted onlyupon Customs being satisfied thatthebeneficiaries areentitled tothe
exemptions aspertheabove criteria.
18. Other firm-specific exemptions orconcessions aregranted bytheMinistry ofFinance forone
yearandiftheconcession isexpected toincrease domestic value added orexport potential.
19. In1991, ontotalimports forthedomestic market (i.e.excluding forexport-processing zones,
trans-shipment andtemporary admission) ofMauRs16.9billion, duties (including salesandexcise
tax)collected amounted toMauRs4.6billion, while exemptions amounted toMauRs2.6billion,
halfofwhich werethrough Ministerial exemptions.6Exemptions forEPZandExport Service Zone
(ESZ) firms amounted toanother MauRs1billion. Inotherwords, although theaverage dutycollected
was19.1percent,subtracting theexemptions gaveanaverage collection rateonnon-exempt imports
of34.2percent. More recent datapoints tothecontinued highlevelofdutyexemptions andconcessions
accorded outside export-oriented sectors. "Other exemptions/concessions" aretwice thevalue ofduties
waived onimports forexport production, although inthe1992 to1994 period thevalue ofoverall
exemptions declined either asaresult ofthegeneral lowering ofduties orindicative ofreduced
discretionary actions (Table IV.2).
5Thesignatories ofthePTAwere Angola, Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Lesotho,
Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Seychelles, Somalia, Sudan, Swaziland,
Tanzania, Uganda, Zambia andZimbabwe. Asof1January 1995 13member States hadratified theCOMESA
Treaty.
6World Bank (1993), Table 3.2.WT/TPR/S/5
Page 40Trade Policy Review
Mauritius WT/TPR/S/5
Page 41
Table IV.2
Duty collections andexemptions, 1992-94
(Mau Rsmillion andpercent)
1992 1993 1994
Mau RsMn Percent Mau RsMn Percent Mau RsMn Percent
Total imports 25,232 30,438 32,620
Import dutycollected 4,307 17.1 5,207 17.1 5,176 15.9
Import dutyexempted 4,920 19.5 4,050 13.3 3,304 10.1
EPZ/ESZ exemption 1,115 4.4 1,489 4.9 1,137 3.5
Other exemptions/concessions 2,718 10.8 2,493 8.2 2,058 6.3
Source: Government ofMauritius.
(iii) Other import charges
20. Fiscal duties andcustoms surcharges wereinforce untiltheywereconsolidated inJune1994
intothecustoms dutyunder theCustoms Tariff, 1994. Inaddition, astamp dutyof12percentwas
raised to13.2percentin1984 andtransformed toa17percentimport levyin1985. Thelevywas
originally collected atthetimeofissueoftheimport permit bytheMinistry ofTrade; collection was
transferred toCustoms in1988. Thelevyapplied, untilabolished inJune1994, toallimports except
essential items, suchasrice,flour, pulses, saltfish,kerosene andpublic transport equipment, andinputs
fortheEPZandexport companies holding development certificates.
21. Cess feesarecollected onimports ofmaize atMau Rs50perton,andonteaat
MauRs0.20perkilo.
22. Asalestaxisnormally levied at5percentofthewholesale value ondomestic deliveries and
ontheduty-paid value ofimported goods. There arevarious exemptions tothesalestax,including
onessential items andonimports byEPZfirms, fortemporary admission andintothefreeport.7The
salestaxapproximates toavalue-added tax,astaxpaidbyproducers formaterials incorporated into
finished goods canbededucted from thesalestaxpayable onthefinalgood.
23. Hotel services andairline tickets aretaxed at10percent.
24. Until 1July1994, acapital transfer taxof5percentwasapplied toimports ofgoldcoins
other thanthose bythecentral bank.
25. Excise duties areinprinciple applied tobothimports andlocal production ofawide range
ofalcoholic beverages, tobacco products andmotor vehicles; exports areexempt (Table IV.3).8
TableIV.4givesexamplesofthecumulativeeffectofimportdutiesandexcisetaxesonselectedproducts.
7Essential items include basic foodstuffs (such asrice,flour, sugar andmolasses, rawanddried vegetables,
tea,coffee, meat andfish, bread, fruit, edible oilsandfats,milk andcream, butter, eggs andhoney), fuels,
medicine, liveanimals, agricultural machinery, animal feed, containers, fertilizers, liveplants, flowers andseeds,
textiles, textile machinery, locally manufactured clothing, books andperiodicals.
8Manufacturers ofexcisable goods must belicensed andpayanannual orquarterly feewhose ratehasbeen
fixed intheSecond Schedule oftheExcise Duty Act.WT/TPR/S/5
Page 42Trade Policy Review
Table IV.3
Excisable goods manufactured orimported intoMauritius
ISIC
CodeHSCode DescriptionRate of
excise
dutyon
imported
itemsExcise dutyonlocally produced
items
(Rupees orpercentadvalorem)
3133 2203001 Beermade from malt 150 8.22perlitre
3133 2203002 Beermade ofmalt, stout 150 8.22perlitre
3133 2203003 Beermade ofmalt, shandy 150 6.85perlitre
3132 220410 Wine, offresh grapes 20 3.00perlitreor30%advalorem,
whichever isthehigher
3132 2204291 Other wine, offresh grapes 15 3.00perlitreor30%advalorem,
whichever isthehigher
3132 2204292 Fortified wine 15 3.00perlitreor30%advalorem,
whichever isthehigher
3132 2204293 Wine imported inbulk, forbottling 15 36percent
3132 2204299 Other wine offresh grapes 20 0
3132 2205109 Other flavoured vermouth andwine 20 0
3132 2205901 Other vermouth, imported inbulkforbottling 15 0
3132 2205909 Other vermouth, n.e.s. 20 0
3132 2206001 Fermented beverages, imported inbulkfor
bottling15 3.00perlitreor30%advalorem,
whichever isthehigher
3132 2206009 Other fermented beverages 20 0
3131 2207101 Undenatured ethyl alcohol, formedicinal use 200 0
3131 2207102 Undenatured ethyl alcohol, forperfumed spirits
andcosmetics200 5.00perlitre
3131 22071099 Undenatured ethyl alcohol, foruseasinput for
other purposes200 0.78perpercentage ofalcohol perlitre
3131 220720 Ethyl alcohol andother spirits, denatured 200 0
3131 2208201 Cognac 100 0
3131 2208202 Brandy 100 1.75perpercentage ofalcohol perlitre
3131 2208209 Other spirits 200 0
3131 2208301 Whisky, ormatured whisky 150 3.00perpercentage ofalcohol perlitre
3131 2208303 Whiskies, imported inbulkforbottling 150 0
3131 2208309 Other whiskies 200 3.00perpercentage ofalcohol perlitre
3131 220840 Rum andtafia 200 0.78perpercentage ofalcohol perlitre
3131 220850 Gin 200 1.75perpercentage ofalcohol perlitre
3131 2208901 Eau-de-vie, canespirit 100 1.75perpercentage ofalcohol perlitre
3131 2208902 Aperitif (local) - 1.10perpercentage ofalcohol perlitre
3131 2208903 Cordial (local) - 1.10perpercentage ofalcohol perlitre
3131 2208904 Liqueur (local) - 1.10perpercentage ofalcohol perlitre
3131 2208905 Vodka (locally produced) - 1.75perpercentage ofalcohol perlitre
3131 2208906 Compounded spirits made from local rum - 0.78perpercentage ofalcohol perlitre
3131 2208907 Compounded spirits made from rum - 0.78perpercentage ofalcohol perlitre
3131 2208908 Admixed spirit (local) - 1.75perpercentage ofalcohol perlitre
3131 2208909 Other alcoholic beverages, n.e.s. 200 0.78perpercentage ofalcohol perlitre
3140 2401101 Leaftobacco, fluecured, notstemmed - 36.30 perkg
3140 2401102 Leaftobacco, aircured, notstemmed - 24.20 perkg
3140 2401201 Leaftobacco, fluecured, stemmed - 36.30 perkg
3140 2401202 Leaftobacco, aircured, stemmed - 24.20 perkg
3140 240210 Cigars, cheroots andcigarillos 270 0
3140 2402201 Cigarettes containing tobacco, stateexpress brand 400 132percent
3140 2402209 Cigarettes containing tobacco, other brand 400 120percent
3140 2402901 Other cigars, cheroots, cigarillos andcigarettes,
stateexpress brand400 132percent
3140 2402902 Other cigars, cheroots, cigarillos andcigarettes,
other brand400 120percent
3140 240310 Smoking tobacco 230 0
3530 271000 Aviation spirit 120 0
3843 8703219 Motor vehicles, ofacylinder capacity below
1,000cc17 17percent
Table IV.3 (cont'd)Mauritius WT/TPR/S/5
Page 43
ISIC
CodeHSCode DescriptionRate of
excise
dutyon
imported
itemsExcise dutyonlocally produced
items
(Rupees orpercentadvalorem)
3843 87032291 Motor vehicles, ofacylinder capacity below
1,150cc17 17percent
3843 87032292 Other motor vehicles, ofacylinder capacity
between 1,150cc and1,400cc17 37percent
3843 87032299 Other motor vehicles between 1,400cc &1,500cc 77 77percent
3843 87032391 Motor vehicles, below 1,850cc 77 77percent
3843 87032399 Motor vehicles between 1,850cc and3,000cc 157 157percent
3843 8703249 Motor vehicles, below 3,000cc 157 157percent
3843 87033191 Motor vehicles (diesel, semi-diesel), ofacylinder
capacity below 1,400cc17 17percent
3843 87033199 Other motor vehicles (diesel, semi-diesel),
between 1,400cc and1,500cc77 77percent
3843 87033291 Motor vehicles (diesel, semi-diesel), between
1,500cc and1,850cc)77 77percent
3843 87033299 Motor vehicles (diesel, semi-diesel), between
1,850cc and2,500cc157 157percent
3843 8703339 Other diesel vehicles, (above 2,500cc) 157 157percent
3843 87042191 Transport vehicles, notexceeding 1,400cc 17 17percent
3843 87042192 Transport vehicles, between 1,400cc and1,850cc 37 37percent
3843 87042193 Transport vehicles, between 1,850cc and2,500cc 77 77percent
3843 87042199 Other transport vehicles 157 157percent
3843 87043191 Other transport vehicles, withspark-ignition, not
exceeding 1,150cc17 17percent
3843 87043192 Other transport vehicles, withspark-ignition,
between 1,150cc and1,400cc37 37percent
3843 87043193 Other transport vehicles, withspark-ignition,
between 1,400cc and1,850cc77 77percent
3843 87043199 Other transport vehicles, n.e.s. 157 157percent
Note: Formotor vehicles (ISIC 3843) there isanadditional 40percentonimports from non-scheduled territories.
Source: Excise Act1994, Government ofMauritius.
Table IV.4
Charges onselected imports bystage ofprocessing inMauritius
(Percent)
Wheat
HS1001Ironbars
HS7213Motor spirit HS2710 Passenger carsHS8703.2295
Scheduled
supplierNon-scheduled
supplieraScheduled
supplierNon-scheduled
suppliera
Import value (c.i.f.) 100 100 100 100 100 100
Customs duty 0 30 80 100 80 100
Sub-total 100 130 180 200 180 200
Excise duty 0 0 120a120 77 117b
Landed cost 100 130 300 320 257 317
[Advalorem equivalent of
import taxes onc.i.f. value]0 30 200 220 157 217
a Imports from non-scheduled suppliers dutiable at55percentormore aresubject toanadditional dutyof20percent.
b A40percentsurcharge isadded totheexcise dutyonmotor vehicles imported from non-scheduled territories.
Source: WTO Secretariat.WT/TPR/S/5
Page 44Trade Policy Review
26. There areseveral instances ofsignificant differences intheapplication ofexcise duties between
importedandlocallyproducedgoods.Inthemostobviouscases,theexcisedutyonlocallymanufactured
ethylalcohol andmanufactured tobacco iszero-rated andonimports ranges from200to400percent.
Motor spirit, forwhich there isnolocal production, issubject toanexcise dutyof120percent.
Furthermore,onmotorvehicles,whereexcisedutiesrangefrom17to137percentdependingoncylinder
capacity, thereisanadditional 40percentexcise dutylevied onvehicles imported fromnon-scheduled
sources.
27. Inmost cases therateofexcise dutyonlocally manufactured excisable goods isapplied on
aspecific basis andthatonimports atanadvalorem rate. Theadvalorem equivalents, oreffective
rates, onlocalgoods cannot becompared totheduties applied toequivalent imports asdutycollected
foreachproduct manufactured inMauritius isnotavailable.
28. Inthesixmonths from JunetoDecember 1994 MauRs500million inexcise duties were
collected onlocalproduction andMauRs345million onimports, overhalfofwhich derived from
excise onpetroleum products andmotor vehicles.9
(iv) Rules oforigin
29. Imports dutiable above 55percentfromscheduled territories musthaveundergone substantial
processing inthecountry oforigin, amounting to50percentofthevalue ofthegoods.
30. Forimports fromCOMESA partners, origin isdefined as:(i)wholly produced; (ii)60percent
orlessimported material content; (iii)45percentvalue added onanex-factory costbasisor25percent
value added forgoods ofparticular importance toeconomic development. Direct transport isrequired
forobtaining originating status.
(v) Customs procedures
31. Theinvoice formerchandise imports mustspecify thef.o.b. value ofthegoods, thecostof
packing, allinland transport charges, dockandshipping charges, thetotalcostincluding theexpenses
incurred forfreight andinsurance andanybuying andselling commissions.10Where there ismore
thanonepackage intheshipment apacking listisrequired. Theinvoice mustbeaccompanied bya
certificate stating thattheinvoice iscorrect andthatnodifferent invoice forthegoods hasbeen, or
willbe,issued.
32. Animportdeclarationformorbillofentrygivingfullinformationastothedescription,quantity
andvalue ofthegoods foreachconsignment hastobesubmitted intheapproved form. With the
ASYCUDA (Automated System forCustoms Data) system ofclearance nowfunctioning theimport
declaration canbeprocessed within tenminutes andgoods cleared within oneortwodays. According
toaWorld Bank study inthelastquarter of1990, ittookovertendaysforoverhalfofallimports
toreceive portclearance.11
9Data supplied byCustoms Department.
10Customs Regulations 1989; Section 13.
11World Bank (1992), p.40.Mauritius WT/TPR/S/5
Page 45
33. Acertificate oforigin forimports from"scheduled" territories should indicate separately the
ex-factory value ofthegoods andthetotalvalue ofthematerial, labour andother manufacturing cost
originating inthescheduled territory.
34. Customs provides freewarehousing forthreedays, afterthatgoods arestored atfreight stations
orbytheMauritius Marine Authority attheowner 'sexpense. Goods must beremoved within two
months; otherwise, theyaresubject tosale.
35. Thetemporary admission régime allows forgoods toenterforprocessing andre-export within
asix-month period; thiscanbeextended foranadditional sixmonths, against aguarantee covering
duties andsalestaxpayable.
36. Goods entered fortransit ortrans-shipment must beremoved within twoyears.
(vi) Customs valuation
37. Thecustoms valuation system isbased onahybrid definition oftheBrussels Definition ofValue
andtheWTO valuation provisions. Valuation ofimported goods iscarried outaccording tothe
provisions ofSection 18oftheCustoms Tariff Act1988 andSections 10,11and12oftheCustoms
Regulations, 1989. Section 18ofthelegislation states thatthe"value ofthegoods forcustoms purposes
shallbetaken tobethepricepaidorpayable atwhich such, orlike,goods areordinarily soldoroffered
forsalefordeliveryinMauritius".Theimplementingregulations,however,allowvaluetobedetermined
either: "(i)onthebasisoftheprice paidforidentical orcomparably similar goods made bythesame
manufacturer andimported atorabout thesametimebyanother independent buyer inMauritius under
fullycompetitive conditions; or(ii)imported byanother country from thesame manufacturer; or
(iii)soldinthecountry ofexport; orfinally (iv)made byanother manufacturer andimported into
Mauritius".
38. Mauritius plans toadapt itslegislation totheWTO provisions within therequired timeframe,
thatisby1January 2000.
39. Inpractice, Customs accepts thedeclared value ontheinvoice inmost cases. Themajority
ofmerchandise, approximately 70percent,iscleared through customs within 24hours, without being
inspected, although Customs hopes toincrease thisproportion further. Where therearedoubts regarding
theaccuracy ofthevalue ortheclassification, Customs isentitled torequest additional payment of
duties; theauthorities estimate thatthisoccurs insome 5percentofshipments.
40. Disputes arising from theclassification orvaluation ofgoods areexamined bytheCustoms
Advisory Committee andimporters mayappeal decisions, including forrefund ofcustoms orexcise
duty, within 28daystotheTaxAppeal Tribunal. Typically, 20cases ayearareexamined bythe
Committee withtwoorthree subsequently appealed totheTribunal.
(vii) Import restrictions
41. Mauritius hasnotapplied anyimport quotas since 1985. However, withthedismantling of
import licensing in1991, certain import prohibitions wereintroduced, including onballvalve bottles,
explosive capsfortoypistols andguns, rubber tyresthathavebeenretreaded, recapped orregrooved,
white phosphorous matches, certain firecrackers, kerosene stoves, water scooters, ivory andtortoise
shell,underwaterfishingguns,sugarandchocolateconfectionery,chewinggumintheformofcigarettes,
rolling papers forcigarettes andsecondhand motor vehicle spare parts (Table IV.5).WT/TPR/S/5
Page 46Trade Policy Review
Table IV.5
Prohibited imports
Description ofgoods HSCodeGATT
Article
invokedReason
Ballvalve bottles 7010.90 XX(b) Public health
Explosive capsfortoypistols andgunscontaining amixture ofpotassium
chlorate andredphosphorus3604.90 XX(b) Public safety
Firecrackers ofatypecommonly known as"petards rapes" 3604.90 XX(b) Public safety
White phosphorous matches 3605.00 XX(b) Public safety
Rubber tyres which havebeenremoulded, recapped orregrooved 4012.10 XX(b) Public safety
Kerosene stoves ofatype"lampes vertes" andparts thereof 7321.12 XX(b) Public safety
Water scooters 8506.29 XX(g)
Ivory andtortoise shell 9601.10, 90 Application ofthe
Convention on
International Trade in
Endangered Species of
Fauna andFlora
Underwater fishing guns 9303.90 XX(g) " "
Sugar andchocolate confectionery andbubble/chewing gumintheform
ofcigarettes1704.10, 90
1806.90XX(a) Public health
Second-hand motor vehicle spare parts &accessories asfollows:
(a) Tyres,
tubes andwheels
(b) Radiators
(c) Springs andfront legs
(d) Lorry cabins andparts thereof
(e) Injector nozzles
(f) Chassis andparts thereof
(g) Brake linings
(h) Clutch nutandparts thereof
(i) Fueltanks
(j) Filters
(k) Hoses
(l) Engine mountings
(m) Belts
(n) Oilseals
(o) Balljoints
(p) Bearings
(q) Shock absorbers
(r) Spring leaves
(s) Carbodies4011.10
4013.10
8708.70, 91
7320.90
8707.90
8409.91
8708.99
8708.31
8708.93
8708.93
8421.23
4009.10
4016.9911
4010.10
4016.9911
8482.10
8482.10
8708.80
7320.90XX(b);
(d)Public safety
Toymotor-cyclists 'helmets 9503.90 XX(b,d) Public safety
"Roll-your-own" cigarette papers 4813.909 XX(a) Public health
Aerosol insecticides containing C.F.C. (Chloro Fluoride Carbon) as
propellantXX(g) Application ofthe
Montreal Protocol
Concerning Products
Containing C.F.C.
Eggyellow inpowdered form 0408 XX(b) Public health
Bakery additives containing Potassium Bromate asaningredient XX(b) Public health
Hydrogenated oilsandfatsimported under HS15.16 andcontaining more
than75%saturated fattyacidsXX(b) Public health
Margarine richinpolyunsaturates imported under HS15.17 containing
lessthan45%ofpolyunsaturated fatandmore than20%ofsaturated fatsXX(b) Public health
Other margarine imported under HS15.17 andcontaining more than60%
ofsaturated fatsandmore than25%ofpalm oilXX(b) Public health
Edible mixtures orpreparation ofanimal/vegetable fatoroiloffractions
ofdifferent fatsoroilimported under HS15.19 andcontaining more than
23%ofsaturated fattyacids andmore than25%ofpalm oilXX(b) Public health
P.V.C. pipes notcomplying withMauritius Std.5&Mauritius Std.6 3917.23 XX(b) Public health &safety
Straw brooms andbrooms wholly orpartially made ofvegetative material 1403 XX(g) Safeguarding
agriculture
Source: Government ofMauritius.Mauritius WT/TPR/S/5
Page 47
Table IV.6
Imports subject tolicensing
Description ofproducts HSCodeGATT Article
InvokedReason
Salted fish 0305 XI2(c) Toremove temporary surplus ofthelike
domestic product
Milk (fresh/liquid) 0401 XX(b) Toprotect health
Potatoes (inallforms) including seeds 0701 XI2(c) Toremove temporary surplus ofthelike
domestic product
Onions andshallots 0703.10 XI2(c) "
Garlic 0703.20 XI2(c) "
Beans 0708.20 XI2(c) "
Other broad beans 0708.90 XI2(c) "
Groundnuts 0802 XI2(c) "
Oranges 0805.10 XX(b) Health andplant protection
Tangerines, mandarines 0805.20 XX(b) Health andplant protection
Lemons andlimes 0805.30 XX(b) Health andplant protection
Grapefruit 0805.40 XX(b) Health andplant protection
Spices 0904-10 XI2(c) Toremove atemporary surplus ofthelike
domestic product
Maize inallforms 1005
1103.13,
1102.20XI2(c) "
Rice 1006 XVII Toensure foodsecurity
Wheat ormeslin flour 1101 VIII4(e) Tomonitor foodaidprogramme
Plants andparts ofplants (including seeds and
fruits) ofakindusedprimarily inpharmacy
fresh ordried, whether ornotcut,crushed or
powdered1211 XX(b) Health andplant protection
Soyabean oilanditsfractions, whether ornot
refined, butnotchemically modified1507 XX(b) Health protection
Palm oilanditsfractions, whether ornot
refined, butnotchemically modified1511 XX(b) Health protection
Sunflower-seed, safflower seedorcotton-seed
oilandtheirfractions, whether ornotrefined,
butnotchemically modified1512 XX(b) Health protection
Coconut oil(copra) anditsfractions, whether
ornotrefined, butnotchemically modified1513.11
1513.19XX(b) Health protection
Rape, colza ormustard oilandtheirfractions
whether ornotrefined butchemically modified1514 XX(b) Health protection
Maize (corn) oilanditsfractions (crude) 1515.21 XX(b) Health protection
Maize (corn) oilanditsfractions (other) 1515.29 XX(b) Health protection
Animal orvegetable fatsandoilsandtheir
fractions partly orwholly hydrogenated, inter-
esterified, re-esterified orelaidonised, whether
ornotrefined, butnotfurther prepared1516 XX(b) Health protection
Margarine edible mixtures orpreparations of
animal orvegetable fatsoroilsoroffractions
ofdifferent fatsoroilsofCh.15,other than
edible fatsoroilsortheirfractions ofHS15161517 XX(b) Health protection
Animal/vegetable fats&oils&theirfractions
boiled, oxidised, dehydrated, sulphurised,
blown, polymerised byheatinvacuum orinert
gasorotherwise chemically modified1518 XX(b) Health protection
Artificial sweeteners 1702 XX(b) Health protection
Infant formulas 1901.10,
1905.401
0401XX(b) Health protection
Nutrient supplements 2106 XX(b) Health protection
Dietary foods 2106 XX(b) Health protection
Table IV.6 (cont'd)WT/TPR/S/5
Page 48Trade Policy Review
Description ofproducts HSCodeGATT Article
InvokedReason
Bakery additives 2106.902 XX(b) Health protection
Cigarettes containing tobacco 2402.20 XX(b) Health protection
Salt 2501 XI2(c) Toremove temporary surplus ofthelike
domestic product
Portland cement 2523.21,29 XVII Sensitive andessential commodity, national
security
Petroleum oilsandoilsobtained from
bituminous mineral crude2709 XVII Sensitive andessential commodity, national
securit.
Petroleum oilsandoilsobtained from
bituminous minerals other thancrude2710 XVII Sensitive andessential commodity, national
security
Acrylic acid 2916 XX(b) Public security
Pharmaceutical products, aryuvedic andother
traditional medicinesChapter 30 XX(b) Health andlifeprotection
Diagnostic materials ofbiological origin 3006.20,30
3822XX(b) Health protection
Insecticides, rodenticides, fungicides,
herbicides, antisprouting products, plant
growth regulators, disinfectants &similar
products, putupinforms orpacking forretail
oraspreparations/articles (e.g. sulphur treated
bands, wicks, candles &fly-paper)3808 XX(b) Health, lifeandplant protection
PVC pipes 3917.23 XI2(b) Standard specification andpublic security
Plastic feeding bottles 3926 XI2(b); XX(b) Health protection
Teats andsoothers 3926.909,
4014.90XI2(b); XX(b) Health protection
Motor-cyclists 'helmets (crash helmets) 6506.101 XI2(b); XX(b) Standard specification andlifesecurit.
Gold (inc.gold-plated withplatinum)
unwrought orsemi-manufactured forms, orin
powder form7108 XX(c) National security
Waste/scrap goldinc.metal cladwithgold
exc.sweepings ofother precious metals7112.10 XX(c) National security
Bakery andpastry equipment 8417.20,
8438.10,
8514XI2(b); XX(b) Health protection andstandard specification
Weighing machinery 8423 XI2(b); XX(d) Standard specification andprevention of
deceptive practices
Electric water heaters andimmersion heaters
andparts thereof.8516.10 XI2(b); XX(b) Standard specification andlifeprotection
Public transport type, passenger motor
vehicles, buses8702 XI2(b); XX(b) Standard specification andpublic security
Buschassis fitted withengines 8706.001 XI2(b); XX(b) Standard specification andpublic security
Cruise ships, excursion boats, ferry-boats,
cargo ships, barges andsimilar vessels forthe
transport ofpersons orgoods8901 XI2(b); XX(b) Standard specification andpublic security
Fishing vessels, factory ships orother vessels
forprocessing orpreserving fishery products8902 XI2(b); XX(b) National security, standard specification
andpublic security
Tugs andpusher craft 8904 XX(b) Public security
Instruments formeasuring length, forusein
thehand (e.g. measuring rodsandtapes)9017 XI2(b); XX(d) Standard specification andprevention of
deceptive practices
Syringes withorwithout needles 9018.31 XI2(b); XX(b) Health protection
Sutures andligatures 9018.39 XI2(b); XX(b) Health protection
Brooms 9603.10 XX(g) Protection ofenvironment
Food additives (preservatives colouring
substance, flavouring substance, flavour
enhancers.Chs.13,21,
28,32,33,35XX(b) Health protection
Second-hand (used/reconditioned) motor
vehiclesXX(b); (d) Public security andprevention ofdeceptive
practices
2nd-hand motor vehicle parts andaccessories XX(b); (d) "
Other used, scrapped andsecond-hand goods XX(b); (d) "
Source: Government ofMauritius.Mauritius WT/TPR/S/5
Page 49
42. Anumber ofproducts require approval bytheregulatory authorities, many forhealth andsafety
orsecurity reasons, butsome, forexample certain staple foods, suchaspotatoes andspices, inorder
toprotect self-sufficiency objectives inthedomestic market. These import restrictions werenotified
totheGATT Committee onNon-Tariff Measures andjustified under Articles XI,XVII andXX
(Table IV.6).
43. Import permits must berequested from theImport Division oftheMinistry ofTrade and
Shipping. Import permits normally require clearance from therelevant Ministries, e.g.Ministry of
Agriculture foragricultural goods orMinistry ofHealth forprepared foods, drugs anddangerous
chemicals, andtheclearance process varies between oneweek andamonth. In1995 anelectronic
approval procedure willbefunctioning which isintended tospeed upthisprocess.
(viii) Local-content requirements
44. Mauritius hasnomanufacturing schemes involving local-content requirements.
(ix) Trade remedies
45. Mauritius currently hasneither anti-dumping, countervailing norsafeguard legislation, butthe
Government isconsidering theintroduction ofsuchlegislation inviewoftherecent tariff reductions.
In1994atemporary dutyincrease onironbarsfrom40to50percentwasaimed atcountering alleged
dumping.
(x) Government procurement
46. Mauritius isnotyetamember oranobserver totheAgreement onGovernment Procurement,
butisseriously considering participation tosome degree.
47. Until 1995, government procurement inMauritius wasdecentralized. ATender Board, within
theMinistry ofFinance wasresponsible fortheprocurement needs ofgovernment departments, but
notforlocalauthorities orother public orparastatal institutions. In1994 theCentral Tender Board
Actwaspassed establishing anautonomous andindependent body, theCentral Tender Board, toapprove
theaward of"major contracts" inthepublic sector.12Responsible officers forpublic bodies areobliged
tonotify theBoard ofmajor procurement plans andmust obtain approval from theBoard prior to
launching atender orawarding acontract.
48. TheBoard, which started operations on15March 1995, hasissued guidelines ontendering
procedures which aresimilar tothose currently inpractice, i.e.publication intheGovernment Gazette,
advertising inthelocaland,asappropriate, intheinternational press. Existing legislation onlyprovides
foropentendering, although selective orsingle tendering maybecovered inthefuture. Incases where
aninternational development agency isproviding thefinancing, itsownprocurement guidelines are
followed.
12Amajor contract isdefined asprocurement ofgoods andservices above thefollowing thresholds: for
government departments, Mau Rs500,000; forlocal authorities andsome parastatal bodies, Mau Rs10million
(limitedtocivilengineeringworksandcapitalgoods);andforotherparastatalbodiesandState-ownedcompanies,
Mau Rs25million (limited tocivilengineering works andcapital goods).WT/TPR/S/5
Page 50Trade Policy Review
49. There arenoregistration requirements forforeign suppliers. Local agents offoreign suppliers
canparticipate intenders calling forgoods notavailable locally.
50. According totheauthorities, national firms donotreceive preferential treatment inprocurement
contracts except where authorized byforeign agencies, such asunder Article (9)oftheGeneral
Regulations oftheEuropean Development Fund, thefinancing mechanism fortheLomé Convention.13
51. Dataonthevalue ofgovernment procurement contracts orthepercentage metbyimports are
notavailable,althoughforeignsuppliershaveobtainedbetween15and20percentofcontractsconcluded
withtheprevious Tender Board.
(xi) State trading
52. Intheareaofmerchandise imports andexports, Mauritius hasanumber ofState-trading
enterprisesandsoleimporters.14Theseparastatalbodiespurchase,importandstoreanumberofstrategic
commodities, themajority ofwhich aresubject toprice controls.
53. TheState Trading Corporation (STC), established under ActNo.24of1982, assumed in
January 1983theoperations oftheDepartment ofSupplies inthethenMinistry ofTrade andShipping.
TheCorporation isexpected to"operate onsound commercial principles" andisthesoleimporter of
rationrice(20-45percentbroken),wheatflourandpetroleumproducts.Italsomanagesstoragefacilities
forrice,flourandpetroleum products andisresponsible forthedistribution ofstaple foods; petroleum
products aredistributed bythelocaloilcompanies.
54. Purchases oflow-grade ration rice,which accounts forthevastmajority ofimported riceand
twothirds ofdomestic consumption, andflour aremade through theSTC"inorder tosupply these
staple products atreasonable prices todomestic consumers".15Until May1993, theSTCsoldthese
products below costagainst payment ofagovernment subsidy tocover thelosses incurred andpaid
theGovernment afixed annual dividend onitsprofits earned primarily from trading inpetroleum
products. Subsidies amounted to2.3percentofcentral government expenditure and0.5percentof
GDPin1991(Chart IV.3). Withincreasing awareness oftheriseinpurchasing power ofthepopulation
andtheunjustifiable element ofsubsidy, theGovernment eliminated subsidies toconsumers in1993
andsettheprice forlow-grade ricetoallow theSTCtobreak even.16TheSTCexpects tocover its
residual deficit on"ration" ricefromprofits onitssalesofluxury grade rice. TheSTCalsoimports
about 40percentofluxury ricedemands (principally from Pakistan andThailand) andhashada
monopoly since 1990 onBasmati rice.
13Article 303ofLomé IVallows a10percentmargin ofpreference toACP companies onworks contracts
anda15percentmargin ofpreference onsupply contracts.
14According totheUruguay Round Understanding onArticle XVII, State-trading enterprises include
"Governmental andnon-governmental enterprises, including marketing boards ...granted exclusive ...privileges
...[by]...which theyinfluence ...thelevel ordirection ofimports orexports" (GATT, 1994, p.25).
15Private traders mayimport ricecontaining lessthan10percentbroken rice.
16Consumer subsidies were reinstated in1995.Mauritius WT/TPR/S/5
Page 51
55. Originally, riceandflourrequirements werenegotiated onanannual basisbetween Mauritius
andother governments. Ricepurchases arestillnegotiated onagovernment-to-government basis;
China, Pakistan, Myanmar andThailand aretheusual suppliers. TheSTCisthesoleimporter and
bulkdistributor offlour. Inthelate1980s aprivate flourmillbegan operations inMauritius andin
1990, thelatest yearforwhich dataisavailable, supplied thebulkofflour requirements totheSTC
atprices competitive withinternational bids. TheSTCtenders for50percentofexpected annual needs,
withthelocalmillgiven theoption tosupply theother 50percentattheprice ofthewinning bid.
Theannual tender isopentothelocalmill, France, Australia and,since 1995, totheUnited States
andIndia; wheat imports arenotrestricted (Table IV.7).
56. Intheperiod 1957to1985, theMauritius Portland Cement Company (MPCC) heldamonopoly
intheimportanddistributionofportlandcement.Since1985,theSTCimports50percentofMauritius'
requirements through international tender; theother 50percentisimported byMPCC. There isno
localproduction. TheStateTrading Corporation 'simport priceserves asthebasisforthelocalprice.
Imports ofcement aresubject tolicensing, justified toGATT under Article XVII (State trading).
57. TheSTChasbeenthesoleauthorizedimporterofMauritius'requirementsforpetroleumproducts
since 1985, when itwasgiven these rights inorder toeffect scaleeconomies inpurchasing. TheSTC
tenders annually forthequantity tobeimported based ondemand estimated inconsultation withthe
distributors.17ProductsaresoldbySTCtolocaldistributorsatasetprice,withpricecontrolsmaintained
along thedistribution chain. From 1989 to1991 annual imports averaged close to500,000 metric
17WTO (1995).WT/TPR/S/5
Page 52Trade Policy Review
tons, including fueloilsoldtotheCentral Electricity Board, gasoline andaviation fuel.Since 1990,
theretail price ofgasoline hasbeenstable atMauRs9.50/litre; thisisthree times theimport cost,
withtaxes accounting forsome twothirds ofthecoststructure.
Table IV.7
Purchases bytheState Trading Corporation, 1989-94
(Tonnes)
Financial yearending 30June 1989 1990 1991 1992 1993 1994
TOTAL 1,950 2,298 2,264 n.a. n.a. n.a.
Rice(ration) 85,460 68,243 83,810 57,308 68,528 n.a.
Luxury - 8,530 1,500 6,000 16,852 n.a.
Flour
Imports 34,686 4,252 11,459 7,700 7,204 n.a.
Domestic 1,514 58,885 60,181 n.a. n.a. n.a.
Cement
STC 195,614 224,698 218,868 245,613 279,403 n.a.
MPCCa198,643 190,750 265,991 n.a. n.a. n.a.
Petroleum products 488,231 517,164 494,738 557,309 561,061 n.a.
Otherb9 7 10 237 n.a.
n.a. Notavailable.
a Mauritius Portland Cement Company.
b In1990-91 theSTCimported fresh grapes; in1992 fertilizer; andin1992 and1993 fertilizer andmotor cycle helmets. Imports
ofthese havebeendiscontinued.
Source: Government ofMauritius.
58. TheSTCrecently entered themarket forfresh fruit, importing anddistributing fresh grapes
in1989and1990; asaresult theprice onthelocalmarket fellsignificantly.18Similarly in1991 and
1992 itimported fertilizer buthasdiscontinued thisactivity.
59. Theshare oftheSTCintotalimports averaged around 9percentinthe1989-91 period.19
60. TheAgricultural Marketing Board isthesoleimporter anddistributer ofagricultural products
forwhich there areguaranteed prices: potatoes, onions, garlic, maize, turmeric, andcardamom.
(Chapter V(2)(ii)(a)).
61. TheAgricultural Marketing Board wasestablished in1963inorder toprovide themarketing
facilities feltnecessary tosupport localfoodproduction. TheBoard isexpected toensure thatmarketing
costs arekepttoaminimum andtolimitprice fluctuations while promoting localproduction tothe
extent economically feasible. TheAMB actsasabuyer oflastresort, atproducer prices based on
production costsplus30percent. TheBoard maintains storage facilities, including astorage capacity
of10,000 tonsforpotatoes, andwhen localsupply isinadequate imports toensure adequate supplies
tothemarket (Table IV.8).
18Republic ofMauritius (1993b).
19Note thatpetroleum products, imported solely bytheSTC, asinother oil-importing countries, amount
to5to10percentofmerchandise imports.Mauritius WT/TPR/S/5
Page 53
Table IV.8
Production andimports ofselected products marketed bytheAMB
(Tonnes)
Potatoes Onions Garlic
Production Imports Production Imports Production Imports
1986 16,265 0 2,295 2,385 325 145
1987 15,535 3,646 2,145 2,585 245 410
1988 12,770 3,867 3,088 3,315 165 401
1989 19,690 5,045 3,225 3,161 160 608
1990 17,820 2,513 2,635 3,230 169 448
1991 16,445 6,347 2,960 4,779 140 621
1992 19,175 6,099 3,240 4,250 170 694
Source: Agricultural Marketing Board.
62. TheMeat Authority, created in1974, isaparastatal body under theaegis oftheMinistry of
Agriculture. TheAuthority hasthepower toestablish andmanage abattoirs, purchase andimport
livestock forslaughter, control andregulate thesaleofmeatandmeatproducts and,withtheapproval
oftheMinistry ofTrade andShipping, fixprices. Since 1978, theAuthority hasoperated theonly
abattoir inthecountry, andsince 1986, thesoleimporter ofslaughter cattle; modalities forthe
liberalization ofimports, while continuing toprotect localproduction, arecurrently being examined.
63. Inaddition, theauthority runstheCattle Marketing Scheme, introduced in1987, which provides
asubsidy tocattle breeders andsince May1991 guaranteed prices arepaidforlocalcattle.20
64. TheTobacco Board, setupin1932, regulates theproduction ofleaftobacco, controlling land
allocation andadministering annual production quotas fortobacco growers. TheBoard purchases all
localproduction, atprices based onproduction costs, andsellsthistothesolemanufacturer, British
American Tobacco. TheTobacco Board isself-financing deriving itsrevenue fromamark-up ofthe
purchase price.21Imports forblending purposes areeffected bythemanufacturer whomustapply for
animport permit which isgranted upon request bytheTobacco Board (Chapter V(2)(ii)(a) and
V(3)(ii)(a)).
65. TheTeaBoard issues import andexport permits. Imports bymanufacturers arepermitted
forblending purposes while private traders mayimport types ofteaswhich arenotgrown inMauritius.
Nofeeisattached totheissuance ofexport permits; however, forteaimports alicense fee,astatutory
levyandcessarerequired (Chapter V(2)(ii)(c)).
(xii) Standards andother technical requirements
66. Mauritius isintheprocess ofrevising itslegislation governing goods thatpresent potential
health risks toconsumers andadopting international standards inallrelevant areas. Asaresult of
theUruguay Round, Mauritius isrequired toimplement theobligations oftheAgreement onTechnical
Barriers toTrade withtheentry intoforce oftheWTO.
20WTO, (1995).
21WTO (1995)WT/TPR/S/5
Page 54Trade Policy Review
(a) Standards
67. Although Mauritius didnotjointheTokyo Round Agreement onTechnical Barriers toTrade
("Standards" Code), ithasbeen acorrespondent member oftheInternational Organization for
Standardization (ISO) since 1977 andbecame afullmember inJanuary 1995.
68. TheMauritius Standards Bureau (MSB), within theMinistry ofIndustry andIndustrial
Technology, wassetupin1975 under theStandards Acttopromote standardization inindustry and
trade. TheStandards Actwasreplaced bytheMauritius Standards Bureau Actin1993; therevised
legislationtransformedMSBintoacorporatebodyandservedtointroducetheestablishmentofanational
quality assurance scheme withregistration certificates issued toapplicants whomeet thequality
management system standards. Thesystem seeks toimprove thequality ofMauritian products sothat
theycanmore readily compete onworld markets.
69. TheMSB, withaStandards Council asitsthegoverning body, isresponsible, interalia,for
thepreparation andmodification ofstandards andcodes ofpractice, testing, calibration andinspection
facilities, andforthesupply oftechnical information toindustry. Draft standards, aswellasthose
amended, revised orwithdrawn arepublished and,afterdueconsideration hasbeengiven toanywritten
objection orrepresentation, come intoforce afteronemonth. Asamatter ofpolicy, theMSB adopts
international standards where theyareavailable.
70. Mauritius haspublished 93voluntary standards, including whatarenormally considered health
regulations. Standards affecting foodproducts include specifications onbread, canned peas, tomatoes
andsardines, jamsandjellies, riceandcurry powder andprocessed chicken.22TheMSB Actof1993
contains provisions toconvert standards intocompulsory technical regulations andtheConsumer
Protection Actof1991empowers theMinister tointroduce regulations withaviewtoadopting more
testing services andcompulsory standards. Todate,seven standards havebecome compulsory, most
under legislation implemented bytheMinistry ofTrade andShipping, e.g.labelling ofprepackaged
foods (Table IV.9). Where astandard iscompulsory, localmanufacturers mayrequire alicence issued
bytheMinistry ofTrade andShipping.
Table IV.9
Compulsory standards (technical regulations)
Standards
No.Year of
adoptionProduct
MS5 1981 Unplasticized PVC coldwater pipes
MS6 1981 Unplasticized PVC sewer andchain pipes
MS10 1980 Steel barsforthereinforcement ofconcrete
MS18 1982 Hot-dip galvanized coatings onironandsteelarticles
MS30 1983 Labelling ofprepackaged foods
MS34 1982 Hard drawn mildsteelwires forthereinforcement ofconcrete
MS37 1985 Specification forwhite andwhole wheat bread
Source: Information provided bytheauthorities.
22Mauritius Standards Bureau.Mauritius WT/TPR/S/5
Page 55
71. TheBureau isinaposition tocertify, attherequest ofmanufacturers, thatproducts being sold
onthelocalmarket meetspecific standards. Licences forcertification marks (Mauricert), available
toforeign suppliers, aremade available subject toapplication andconformity withthestandard.23
72. Testcertificates issued byastandards organization from aproduct 'scountry oforigin are
recognized bytheMSB. Safety regulations on,forexample, electrical equipment havebeenbased
ontheexporting country 'scertificate aslocaltesting facilities havenotbeenadequate. Type approval
ofweighing andmeasuring equipment isperformed bytheLegal Metrology division under theLegal
Metrology Act.
73. AQualityStandardsCommitteerecommendedtheadoptionofISO9000standardswhichinstitute
strict surveillance andconformity atallstages ofproduction byensuring thatmanagement systems
follow prescribed quality manuals andareclearly documented. TheBureau, which isresponsible for
operating thenational quality assurance certification scheme hasbeenissuing ISO9000 certificates
since February 1995. Since thereisnointernational system foroverseeing oraccrediting certification
activities, agreements areoften sought between certification bodies indifferent countries. TheMSB
ISO9000 certificates willbeaccredited bytheRaad voordeCertificatie (RvC) intheNetherlands
which willguarantee notechnical obstacles tothecirculation ofMauritian certified products within
theEU.
74. Theprivate sector hasundertaken itsowninitiatives toguarantee quality assurance management
systems. Anaffiliate ofSociété Générale deSurveillance (SGS) hasbeeninoperation inMauritius
since1983; ittestsbothimported andexported goods, including foodandtextiles andoffers consultancy
services tocompanies installing ISO9000.24
(b) Health andsanitary regulations
75. Controloffood,drugsandchemicalswithpotentialadverseeffectsonhealthisunderthepurview
oftheMinistry ofHealth. Certificates ofanalysis from recognized foreign institutions areaccepted
buttheHealth Inspectorate samples imported foodtoensure thatshipments comply withlocalfood
regulations. Under theFood andDrugs Act1940, regulations havebeenissued identifying acceptable
levels of,interalia,chemicals, preservatives, traceelements. TheFoodandDrugs Actisbeing replaced
bythePharmacy Act1995 andaFood Law(indraft) prepared inlinewithinternational standards
recommended intheCodex Alimentarius, given theenormous changes inthepast50years withrespect
tofoodprocessing, preservation, storage andtransport.
76. Imported pharmaceuticals andpesticides mustberegistered forsaleintheircountry oforigin.
Only registered pharmacists mayimport pharmaceuticals.
77. Import permits, from theMinistry ofAgriculture, arerequired forgrains, plants orseeds,
animal feedstuffs, meat, fishproducts andliveanimals. ThePlant Quarantine Service inspects and
certifies allimports andexports ofagricultural goods. Imports ofplants, fruitandvegetables require
aphytosanitary certificate; livestock, meatandoffalrequire ahealth certificate; andalcoholic beverages
acertificate ofanalysis.
23Manufacturers ofedible oilscertified bytheMSB mayimport certain inputs dutyfree.
24Chamber ofCommerce andIndustry (1993).WT/TPR/S/5
Page 56Trade Policy Review
78. TheMinistry ofAgriculture hassetupcommittees todraftinternational standards forfood
meant forlocalconsumption andexport inorder tostandardize Mauritian foodandfoodproducts to
international norms, andisestablishing aPesticides Residue Laboratory todetect chemical residues
infood, andaFood Hygiene Laboratory tomonitor standards offoodofanimal origin forlocal
consumption andexport.25
79. Only those authorized bythePesticides Control Board areallowed toimport, manufacture,
sellanddistribute pesticides.
(c) Marking, packaging andlabelling
80. Certain locally manufactured andimported goods mustbearalabelindicating thecountry of
origin, unless theyaresecond-hand (Table IV.10).26
Table IV.10
Imports requiring origin labels
HS4202 Bags, trunks, wallets andsimilar receptacles (leather)
HS9103 Clocks, clock cases andmovements
HS6906 Conduit pipes
HS9616 Cosmetics
HS8214 Cutlery
HS8712 Cycles
HS8506 Dry-cell batteries
HS16,17,18,19,20 Food, including beverages
HS64 Footwear
HS61 Garments
HS70 Glass
HS7321 Household appliances andutensils
HS9613 Lighters
HS36 Matches
HS3701 Photographic andcinematographic cameras, projectors andaccessories
HS8525 Radio receivers andtransmitters
HS8212 Razors andrazor blades
HS8519 Record players
HS8213 Scissors
HS3401, 11 Soap
HS3401 Soap detergents
HS9506 Sports gearandequipment
HS8520 and8521 Tape andvideo recorders andreproducers
HS8528 Television receivers
HS5204, 5401, 5508 Thread (embroidery, knitting andsewing)
HS33 Toilet preparations
HS82 Tools andimplements
HS95 Toys
HS4013 Tyres andtubes
HS9101 and9102 Watches, watch cases andmovements
Source: Government Notice, 1981.
25Republic ofMauritius (1994b).
26Commodities Regulations 1981. Thelisthas,according totheauthorities, beencompiled inconsultation
withconsumer representatives.Mauritius WT/TPR/S/5
Page 57
81. Saleormanufacture ofprepackaged food(including dairy andmeatproducts, cereals, baby
foods, processed fruitandvegetables, sauces andchocolate) mustbearaconspicuous labelinconformity
withMauritian Standard 30,Labelling ofPre-packaged Foods Regulation (1983). Thisregulation,
making thestandard compulsory asof2May1990, requires thatthelabelonallprepackaged foods
shallbearinEnglish orFrench thename, ingredients, including additives, netcontents, expiry date,
thecountry oforigin, thename andaddress ofthemanufacturer, acodeorbatch number andinstructions
forstorage, preparation orusewhen necessary.27
82. Labelling forpesticides mustcontain: thename oftheactive ingredient anditsconcentration
andformulation; theantidote tobeusedincaseofpoisoning andabriefdescription oftreatment to
begiven; protective clothing tobeworn when using thepesticide; theinterval prescribed between
thedateoflastapplication andharvesting ormarketing; thecrops onwhich theuseofpesticide is
recommended;measuresnecessarytoensuresafedisposalofpackages;andclassificationofthepesticide
inregard totoxicity.28
(3) Measures Directly Affecting Exports
(i) Registration
83. Established exporters must register withtheIncome TaxDepartment andareissued an
identification number which isusedinallcustoms documentation. Occasional exporters arealso
registered withtheCustoms Department.
(ii) Export taxes
84. TheGovernment hasforseveral decades collected duties onsugar exports, ataxwhich has
contributed significantly tofinancing thedevelopment ofother sectors oftheMauritian economy. In
order topromote efficiency inthesector andagricultural diversification, various lawshave been
introduced inthelasttenyears reducing theimpact oftheexport duty. Export duties asashare of
Government taxrevenue were reduced from 15.8to3.4percentbetween 1983/84 and1993/94
(Chart I.2).
85. In1985theSugar Sector Package DealActeliminated theexport taxonthefirst1,000 tonnes
ofsugar.29In1988, under theSugar Industry Efficiency Act,thedutyexemption wasraised tothe
first3,000 tonnes exported, thetaxrateonexports lowered fromanaverage of20toabout 13.5percent
andtheexport dutyonmolasses waseliminated (Table IV.11). Since June1994, theexport charge
nolonger accrues totheGovernment asarevenue item. Instead, itischannelled backtotheindustry
forsuchpurposes asresearch financing andinvestment inmilling companies through thePlanters '
andtheEmployees 'Funds. Export dutymayberebated inrelation totheuseofsugar caneasbagasse
forelectricity generation, investment innewcultivation andcropdiversification.
27Government Notice 174(1989) andGovernment Notice 1058 (1983).
28Bureau ofNational Affairs (1993).
29Findlay andWellisz (1993), p.248WT/TPR/S/5
Page 58Trade Policy Review
Table IV.11
Evolution oftherateofexport dutyonsugar
(Percentage ofgross proceeds)
Exports byindividual
producer1973 19741975-
19761977 19781979a-
19811982b19831984c-
19881989-
19911992-
1993d
20tonnes - - - - - - - - - - -
20to75tonnes 6 6 6 6 6 10.5 9 - - - -
75to1,000 tonnes 7 7 7 7 7 10.25 10.5 12.5 - - -
1,000 to3,000 tonnes 8 8 8 8 9 15.75 13.5 15.75 15.75 - -
3,000 to5,000 tonnes 8 8 12 13.5 13.5 23.625 20.25 23.625 23.625 18.75 18.75
>5,000 tonnes 9 10 12 13.5 13.5 23.625 20.25 23.625 23.625 18.75 18.75
Millers only
(ontotalproduction)- - - - - - - - - 9,375
a Inclusive of75percentsurcharge tocapture windfall profits from devaluation.
b Forpartof1982 cropyear, when 50percentsurcharge wasinforce.
c Newprinciple applied tothegraduated scale.
d Asfrom 1992 crop, millers havetheoption ofcalculating theexport dutyatarateof9.375 percentontotalproduction orat
thesame rateasmiller-planters depending upon theonemore advantageous tothem.
Source: Gulhati andNallari (1990), Table 2.2.
86. Export feesofMauRs8.50/tonne forbulksugar andMauRs25/tonne forbagged sugar are
payable totheMauritius Marine Authority.
(iii) Export licensing
87. Products ofstrategic importance, suchascement, silver andgold, andexports restricted by
quotas inimporting markets, including clothing restricted intheUnited States andCanada, require
anexport permit. There isacomplete prohibition ontheexport ofcoral, sandandcoconuts. Other
products, forexample, wheat, flour, spices, products containing sugar, aresubject toexport licensing
under either Article XIorXX(Table IV.12).30Sugar, teaandspices require approval bytheMauritius
Sugar Syndicate, theTeaBoard andtheAgricultural Marketing Board, respectively. Other agricultural
products listed inTable IV.12 require approval bytheMinistry ofAgriculture andNatural Resources
andpharmaceutical products bytheMinistry ofHealth. Licences areissued bytheMinistry ofTrade
andShipping subject toprior approval bytherespective authorities.
30Thesugar content ofexported foods ismonitored toensure thatthemanufacturer haspaidtheindustrial
price forsugar.Mauritius WT/TPR/S/5
Page 59
Table IV.12
Products subject toexport licensing
Description ofproducts HSCodeGATT Article
invokedReasons
Liveanimals 0101 to0106 XI;XX Implementation ofsanitary measures.
Remedy temporary shortages. CITES.
Meat, allspecies including poultry,
meat, fresh, chilled orfrozen0201 to0210 XI;XX Implementation ofsanitary measures.
Remedy temporary shortages. CITES.
Allfishandfishproducts (fresh,
frozen, salted)0301 to0307 XI;XX Implementation ofsanitary measures.
Remedy temporary shortages.
Preservation ofnatural resources.
Aquatic bulbs 0601 XX Implementation ofphytosanitary measures.
Ornamentals: plants, flowers and
leaves (green ordried)0603 to0604 XX Phytosanitary measures.
Vegetables (general andgreen) 0701 to0712 XI;XX Implementation ofphytosanitary measures.
Remedy temporary shortages.
Redlentils, broad beans 0701 to0712 XI;XX "
Roots 0714 XX Implementation ofphytosanitary measures.
Coconuts, inc.drycoconuts, fruit 0801 to0814 XX Conservation ofenvironment.
Spices 0910 XI;XX Implementation ofphytosanitary measures.
Remedy temporary shortages.
Maize, popcorn 1005 XI;XX "
Wheat, flour 1101 XI;XX "
Oilseeds 1201 to1207 XX Implementation ofphytosanitary measures.
Medicinal herb 1211 XX Implementation ofphytosanitary measures.
Conservation ofenvironment.
Dryraffia 1401 XX Implementation ofphytosanitary measures.
Cooked meat orprocessed, canned,
smoked, salted1601 to1602 XX Implementation ofphytosanitary measures.
Sugar 1701 Enabling clause Sugar Protocol Agreement. Mauritius Sugar
Syndicate being thesoleexporter ofsugar.
Sugar confectioneries andproducts
withsugar content1704 VIII4(e) Monitoring ofsugar contents inproducts bythe
Mauritius Sugar Syndicate.a
Palms 2008 XX Implementation ofphytosanitary measures.
Conservation ofenvironment.
Fruit juice 2009 VIII4(e) Implementation ofphytosanitary measures.
Monitoring ofsugar content.a
Soybean meal 2106 XX Implementation ofphytosanitary measures.
Softbeverages (lemonade andPepsi) 2202 VIII4(e) Monitoring ofsugar content.a
Wheat bran 2302 XX Implementation ofphytosanitary measures.
Limestone 2521 XX Conservation ofenvironment.
Portland cement 2523 XI Sensitive product. Regularity oflocal supply.
Organs (animals) 3001 XX CITES.
Serum, samples ofblood,
biologically needed forveterinary
research, vaccines, deadorlive,
attenuated, freeze-dried orwetform3002 XX Implementation ofveterinary measures.
Products ofanimal origin, skinand
hides, stuffed head4101 to4111 XX Implementation ofphytosanitary measures.
CITES.
Textile andtextile products for
export toUnited States andCanada5001 to6310 MFA Implementation ofexport quota under bilateral
agreements.
Birds'feathers 6801 XX CITES.
Silver 7106 XX National security.
Basemetal cladwithsilver 7107 XX National security.
Gold 7108 XX National security.
a Sugar content ismonitored toensure themanufacturer haspaidtheindustrial price forsugar.
Note: Article XI2(a)exempts export restrictions "temporarily applied toprevent orrelieve critical shortages offoodstuffs..." from
thegeneral ruleoneliminating quantitative restrictions.WT/TPR/S/5
Page 60Trade Policy Review
Source: Government ofMauritius; GATT, MTN/NTM/W/6/Rev.5/Add.10, Annex VII,9December 1994.
(iv) Duty andtaxconcessions
88. Imports forexport production, admitted under temporary admission andfree-port régimes,
areexempt fromcustoms duties andsalestax.Forindustries producing under incentive schemes, such
astheExport Processing Zone (EPZ) adefined listofgoods maybeimported exempt ofcustoms duty
andsalestax(section (ix)below).
89. Local manufacturers areentitled toadutydrawback ontheshare ofimports usedforexport
production. Drawback mustbeclaimed fromtheComptroller ofCustoms within sixmonths ofimport.
Drawback mustbeclaimed ontheappropriate formandinclude acopyoftheexport bill,theimport
billandtheinvoice. Arrangements must bemade withCustoms, prior toexport, todetermine the
proportion ofrawmaterials. Forasmall group ofproducts (varnishes, resins, detergents, plastic wares,
pipes andfittings, mosquito killer matsandaluminum utensils), standard drawback ratesfortheduty
andthelevyarespecified.31Drawback payments have varied between Mau Rs3million and
MauRs10million inthelastfiveyears.32
90. Export performance bylocalcompanies producing primarily forthedomestic market mayact
toreduce income taxpayable. Starting in1984 non-EPZ companies could lower theamount oftax
theypayfrom thestandard 35percentrateby2percentage points foreach10percentofoutput
exported.33Theformula wasrevised in1991 sothat,atpresent, when exports account forbetween
10and30percentofproduction, thetaxrateisreduced by30percent, from 35to24.5percent.
When over50percentofoutput isexported, thetaxratefallsto15percent, thesame rateasthat
applied toEPZcompanies.
(v) Export quotas under restraint arrangements
91. Mauritius maintains quotas onexports oftextiles andclothing inaccordance withitsbilateral
agreements withtheUnited States andCanada (Chapter V(2)(i)). These areadministered bytheMinistry
ofTrade andShipping onthebasis ofpastperformance; exporters whocannot filltheirquota must
relinquish these toapoolopentonewcomers bythemiddle ofthequota year.
92. Thevolume ofsugar exports totheEUisrestricted under theSugar Protocol, attached tothe
Lomé Convention. Since 1986thevolume hasbeenfrozen at507,000 tonnes (491,030.5 tonnes white
sugar equivalent), which represents 40percentoftotalACPexports totheEUalthough inJune1995
thequota willbeincreased by81,500 tons(WSE) inorder tosupply therefiners 'deficit inPortugal.
Deliveries ofbulksugar areeffected attheACP guaranteed price, equivalent totherawsugar
intervention price, while salesofspecial sugars fetchpremia onthebasisofcontracts negotiated with
buyers.
93. Mauritius isallocated 1.2percentoftheU.S. sugar import quota, anamount which varies
annually but,according totheprovisions ofthe1990 Farm Act,setsaminimum quota of1,134,000
31Government Notice No.46(1989), Regulations made bytheMinister under Section 163oftheCustoms
Act1988.
32Information supplied bytheDepartment ofCustoms.
33TheCourier, May-June 1991, p.75Mauritius WT/TPR/S/5
Page 61
metric tonnes rawvalue (MTRV). Thecurrent quota forbothbulkrawandspecial sugars heldby
Mauritius amounts to14,959 MTRV forthe14-month period 1August 1994to30September 1995.34
TheU.S.import fee(US$22 pertonne) onspecial sugars (allsugars withapolarization oflessthan
99.5percent) hasbeenwaived witheffect from January 1995.
(vi) Export cartels
94. TheMauritiusSugarSyndicate,representing36,000producers,isthesolemarketerandexporter
ofsugar. TheSyndicate paystheproducer abasic price atthestartoftheharvest. Proceeds from
thesaleofsugar aredistributed afterdeducting marketing andadministrative expenses.
(vii) Export assistance
95. Since 1991, 50percentofthefreight costsforselected exports, including pineapples, beans,
chillies andorchids havebeeneligible forrefund under thefreight rebate scheme operated bythe
Mauritius Export Development andInvestment Authority (MEDIA). In1993 roses, carnations and
heliconia weremade eligible anda25percentrebate wasintroduced forokra, avocadoes, starfruit,
mangoes andlychees. In1994 high-precision mechanical andelectronic products, including watch
parts andcomponents, were made eligible fora50percentrebate under thescheme.
96. Between September 1991andDecember 1994closetoMauRs6.8million wasdisbursed under
theScheme. Theprincipal beneficiaries byfarwereexporters ofpineapples and,toalesser extent,
carnations. Inthefirstsixmonths since freight costs ofelectronics shipments havebeenincluded,
overMauRs500,000 hasgonetoreimburse exporters ofelectronic products.
(viii) Export credit guarantees andinsurance
97. Nogovernment agency issues export credits, rather theyareprovided onmarket terms by
commercialbanks.ExportcreditscanbeinsuredandguaranteedbytheDevelopmentBankofMauritius,
government-owned butrunasacommercial corporation, aswellasbycommercial banks.
(ix) Incentives forexport production
98. TheExport Processing Zone Act1970 introduced anumber ofincentives toindustries
manufacturing forforeign markets. Incontrast tothesituation inmany countries where EPZ
arrangements aredefined byspecific location, anycompany operating inMauritius andproducing for
export could acquire "export processing zone" status asan"export enterprise" onapplication tothe
Ministry ofIndustry andIndustrial Technology, subject toCabinet approval ofarecommendation by
theIndustrial Development Committee, composed ofrepresentatives from various branches of
Government (Chapter III(l)(i)).
99. Export enterprises benefit from areduced corporate taxrateof15percent, compared tothe
standard 35percentrate,forthelifeofthecompany. They alsoreceive exemption from payment
oftaxesondistributed dividends for20years. Customs dutyandsalestaxareexempted on"scheduled"
rawmaterials andequipment (Table IV.13). Thisconcession isestimated tohaveallowed export
34Mauritius Sugar Syndicate (1994).WT/TPR/S/5
Page 62Trade Policy Review
enterprises toreduce theirimported input costsbyanestimated 50percent.35Local banks were, until
1988, encouraged tolendatpreferential interest ratestolocalinvestors inexport enterprises.
Table IV.13
Goods which export enterprises areallowed toimport dutyfree
"Scheduled" goods thatmaybeimported dutyfreeonce Products thatmaybeimported dutyfreeatanytime
Computer equipment (hardware andsoftware)
Typewriters
Airconditioners
Calculators andcashregisters
Close-circuit TVsystems
Exhaust fans/ceiling fans
Fluorescent tubes andlamps
Fire-fighting equipment
Photocopying machines orduplicating machines
Inter-communication systems
Canteen equipment tobeusedexclusively forthepurpose
ofproviding meals toemployees
Electrical fittings forindustrial use
Telecopier facsimile machinesMachines andrelated spare parts
Rawmaterials directly related toproduction
Packing materials
Protective footwear andoveralls (embossed withthename of
theenterprise)
Source: Ministry ofIndustry andIndustrial Technology.
100. Inthelastfewyears EPZfirms havebeenallowed tosellupto100percentoftheirtextiles
andclothing dutyfreeonthedomestic market. Other EPZindustries maysell25percentoftheir
previous year'sexport salesonthelocalmarket. Export enterprise status wasalso,in1993, extended
todeep-sea fishery enterprises.
101. TheExport Processing Zone Development Authority (EPZDA), setupunder theauspices of
theMinistry ofIndustry andIndustrial Technology tohelpexisting firms achieve international standards
ofcompetitiveness, became operational in1992. Intheshort term, theAuthority seeks toassist the
exportsectorbyoperatinganinformationserviceandprovidingtechnicaladvisoryandconsultingservices
toenhance theproductivity ofexport enterprises. Feesarecharged forconsulting services; however,
themajor share oftheAuthority 'sbudget isthrough anannual grant, setinitially atMauRs3million
in1992 andraised in1994 toMauRs12million.
(x) Export promotion
102. Theofficial export promotion agency, MEDIA, whose budget allocation in1994 was
MauRs48million, runsaTrade Information Centre, organizes participation intradefairs, undertakes
market surveys andpromotes contacts withbuyers. Itmaintains offices inFrance, Germany, India,
Kenya, Singapore, South Africa, theUnited Kingdom andtheUnited States.
103. TheMauritius Export Processing Zone Association (MEPZA) isaprivate association of
industrialists intheEPZsector. TheAssociation participates intrade missions organized byMEDIA
andprovides information andtraining toitsmembers.
35Woldekidan (1992a), p.16.Mauritius WT/TPR/S/5
Page 63
(xi) Freeport
104. Aspartofitsdiversification efforts, Mauritius hassought tobecome aregional trading and
trans-shipment centre andhasopened theonlyfreeportintheIndian Ocean area. Established through
the1992Freeport Actandmanaged bytheMauritius Freeport Authority, thefreeportbegan operations
inSeptember 1993. Incentives offered tooperators inthefreeportinclude exemption fromcorporate
tax;exemption fromdividends taxforthefirst20years; preferential ratesofwarehousing andstorage
(US$20 persquare metre perannum); reduced portcharges forallgoods destined forre-export
(25percentofnormal rates) anddutyandsalestaxexemption. Operations inthefreeportmaybe
100percentforeign-owned andhaveaccess tooffshore banking facilities.
105. Freeportactivities provide warehousing fortrans-shipment andfacilities forprocessing goods
andmaterials forre-export. BytheendofDecember 1994, 230licences hadbeen issued and
60companies werefullyoperational, thevastmajority trading companies, oneengaged inshiprepair
andeight inminor processing orassembly.
106. Re-exports from thefreeport, themajority destined forMadagascar, amounted to
MauRs269million bythe12months ended September 1994.36
(4) Measures Affecting Production andTrade
(i) Adjustment assistance
107. Fullemployment hasresulted inwage increases farexceeding productivity growth. The
Government iswellaware oftheneedforthedomestic economy toadjust tofiercer global competition,
byimproving itsskills andtechnology base, especially inlightofthelikely erosion ofpreferential
treatment inexport markets. Anumber ofpublic sector programmes aregeared towards assisting the
adjustment ofMauritius tochanging internal andexternal conditions.
108. ATechnologyDiffusionSchemewasintroducedinMauritiusin1994.Theprogramme,managed
byaprivate contractor, isdesigned tooffset theinitial coststotheprivate sector ofacquiring technology
support services toimprove productivity, product quality, design ormanufacturing response time.Costs
aretobeshared equally bytheGovernment andtheprivate sector. Overafour-year period (1994-98)
US$2.7 million willbeallocated toindividual firms, primarily intheEPZ. Grants willaverage
US$10,000 perindividual company withamaximum stipulated ofUS$100,000 toanyonefirm. Other
measures implemented topromote technology transfer havebeentheelimination ofcustoms duties
oncomputersandspecialtaxconcessionstoexpatriateworkersintheelectronicsorotherhigh-technology
sectors.
109. While 90percentofthepopulation isliterate (education accounts for11percentofgovernment
expenditure) justoverhalfofstudents goontosecondary school andonly1.5percentofthegraduates
attend university compared tobetween 7(Malaysia) and19(Chile) percentforcountries atsimilar
levels ofdevelopment.37TheMinistry ofEducation hasdeveloped aMaster Plandesigned toimprove
teacher competence andeducational infrastructure.
36Data provided bytheMauritius Freeport Authority.
37World Bank (1994).WT/TPR/S/5
Page 64Trade Policy Review
110. TheIndustrialandVocationalTrainingBoard(IVTB),viewedasalinkbetweenformaleducation
andtheworkplace, co-ordinates technical andvocational training onacost-sharing basiswiththeprivate
sector. Since itsinception in1989, several thousand workers haveparticipated inIVTB-approved
in-house training courses orattended thevocational centres providing training intextiles, electronics,
jewellery, footwear, hotelandcatering, printing andinformation technology. The1994budget more
thandoubled theallocation totheIVTB, granting MauRs208million forspending ontraining personnel
andinfrastructure. TheIVTB isfunded through atraining levypaidbyemployers setat1percent
ofthepayroll andcollected through theNational Pension Fund. Seventy-five percentofapproved
in-house oroverseas training costsarereimbursed, partofitdirectly fromIVTB, andtherestthrough
taxdeductions.38
111. In1994MauRs22million wasallocated toprovide forin-house training ofpublic sector staff.
(ii) Taxanddutyconcessions
112. FiscalincentiveshavebeenusedthroughouttheperiodofMauritius'industrializationtostimulate
import substitution aswellasexport diversification. Starting in1964import substitution waspursued
throughtheissuanceofDevelopmentCertificatestocompaniesproducingforthelocalmarket.Incentives
provided forimport substitution wereformalized under theDevelopment Incentives Act1964. The
Development Certificates Scheme isnolonger operational fortheindustrial sector. In1970 the
export-processing zoneconcept (asdescribed above) wasintroduced, offering taxandcustoms duty
advantages andalooser regulatory structure tofirms manufacturing forexport markets.
113. Under theIndustrial Expansion Act1993 incentives forindustrial enterprises have been
consolidated aiming, according totheauthorities, attheintegration oftheEPZandnon-EPZ sectors:
however, anumber ofdiffering incentive schemes stillexist(Table IV.14). TheActestablished six
broad categories ofenterprise towhich assistance could begranted: "Export Enterprises" (formerly
EPZenterprises);"PioneerStatusEnterprises"(inthefieldsofelectronics,otherthanTV,microtechnics
andmanufacturing technologies); "Strategic Local Enterprises" (manufacturing forthelocalmarket,
butmeeting the"national interest" orpromoting theeconomic, technological andindustrial development
ofMauritius asawhole, e.g.production ofelectricity using bagasse orcoal); "Industrial Building
Enterprises"; "Modernization andExpansion Enterprises" (businesses thatinvest innewplant and
technology, other thanpollution control equipment, formodernization andexpansion); and"Small
andMedium Enterprises" (notdefined bysector, butwithanaggregate c.i.f. value ofproduction
equipment notexceeding MauRs5million).
114. Atpresent, allenterprises established ormaintained under theIndustrial Expansion Act(other
than"Modernization andExpansion" enterprises) benefit from thereduced corporate taxrateof
15percentforthelifeofthecompany. Export Enterprises, Strategic Local Enterprises andSmall
andMedium Enterprises receive exemption frompayment oftaxesondistributed dividends for20years;
enterprises with"pioneer" status andindustrial building enterprises fortenyears. Allindustrial
companies receive aninitial investment allowance formachinery andequipment of50percentand
anadditional 20percentinvestment allowance annually fornewmachinery orequipment intheyear
when expenditure isincurred. Capital expenditure onenvironmental protection technology iseligible
forahigher thanaverage initial investment allowance.
38Direct reimbursement isnormally 17percentofcostbutrisesto50percentforcompanies listed onthe
Stock Exchange and64percentforEPZ enterprises.Mauritius WT/TPR/S/5
Page 65
115. Thecustoms dutyandsalestaxexemptions forscheduled items imported byExport Enterprises
havebeenextended toPioneer Status enterprises; similar exemptions, onlyonproduction equipment
aregiven to"Modernization andExpansion" enterprises.
Table IV.14
Industrial incentive schemes ineffect inMauritius, 1995
Incentive scheme Fiscal incentives
I.Export enterprise Corporate taxrateof15percent.
Dividends aretaxfreefor20years.
Complete exemption from customs duties onmachinery andequipment,
spare parts andrawmaterials.
Norestrictions ontherepatriation ofprofits, dividends andinvested
capital.
Exemption from payment ofhalfthenormal registration feeonland
andbuildings bynewindustrial enterprises.
II.Pioneer status enterpriseaCorporate taxrateof15percentfor10years.
Dividends taxfreefor10years.
Exemption from payment ofdutyandsales taxonscheduled materials
andequipment.
III.Strategic local enterprisebCorporate taxrateof15percent.
Dividends taxfreefor20years.
IV.Modernization andexpansion enterprisecCustoms dutyexemptions onproduction equipment.
10percenttaxcredit (spread over3years) onnewinvestment
(Mau Rs10million minimum) formodernization/expansion, within
2years ofissue ofcertificate, including hardware andsoftware.
Taxallowance oncapital expenditure incurred: totalallowance of125
percentduring thelifetime oftheequipment.
Anenterprise investing inpollution control andenvironmental
protection technology benefits from ataxallowance amounting to
80percentoncapital expenditure incurred.
V.Industrial building enterprise
Buildings withafloor space ofnotlessthan
1,000m2,forusebyamanufacturing enterprise.Corporate taxrateof15percentthroughout.
Dividends taxfreefor10years.
50percentexemption onregistration duesforlandpurchase.
VI.Small andmedium enterprise Exemption from payment ofcustoms duties onproduction equipment of
aggregate c.i.f. value notexceeding MauRs5million.
Corporate taxrateof15percent.
Allenterprises Grants ofupto75percentofcosts incurred forapproved vocational
training programmes.
a APioneer Status Enterprise isdefined asundertaking activities involving technology andskills thatwillenhance theindustrial
andtechnological development ofMauritius. Currently, these arelimited toelectronic assembly, biotechnology, printing and
related support industries andservices.
b AStrategic Local Enterprise isdefined asoneproducing forthelocal market andpromoting theindustrial andtechnological
advancement ofMauritius.
c AModernization andExpansion Enterprise isdefined asoneinvesting inproduction machinery, involving automation oncomputer
applications orinanti-pollution technology.
Source: Industrial Expansion Act(1993).
116. Themain form ofincentives offered intheagricultural sector isthrough theAgricultural
Development Certificate Scheme. Thisscheme provides forthesame taxbenefits thatapply under
industrial incentives, exemption ofduties andtaxesonmachinery, equipment, spare partsandapproved
office equipment, concessional loans from theDevelopment Bank ofMauritius and,asforexport
enterprises, a50percentreduction inlandandbuilding registration fees.
117. Inthetertiary sector, there areschemes forfilmdevelopment, hotel management andExport
Service Zone enterprises. Export Service Zone enterprises, which must have 70percentlocalWT/TPR/S/5
Page 66Trade Policy Review
participation, include suchservices asaccountancy, law,medicine, international marketing, quality
control, preshipment services, civilengineering, re-insurance, trans-shipment andentrepôt trade. The
incentives mainly consist ofdutyexemptions onimported equipment, forfilmproduction there are
additional income taxconcessions andforhotel management alsoareduction inregistration fees.
118. Aspartofitsdiversification strategy Mauritius hasalsodeveloped alegal andregulatory
infrastructure foroffshore activities, defined asthose thatdobusiness withnon-residents andinforeign
currencies. These include offshore banking andother financial services, e.g.insurance, fund
management, leasing andinternational dataprocessing. Offshore companies arelicensed andregulated
bytheMauritius Offshore Business Activities Authority (MOBAA) (Chapter V(4)(v)). Offshore
businesses paynotaxes, although theymayelecttodoso,andtheirnon-resident staffareentitled to
a50percentincome taxcredit. Office equipment maybeimported dutyfree.
(iii) Interest ratesubsidies
119. Untiltheeliminationofcreditcontrolsin1991,concessionalcreditandsectoralallocationceilings
wereusedextensively topromote priority sectors, particularly theEPZandsugar sectors. Commercial
banks arenowfreetoextend credit inresponse tomarket forces; loanrates varybetween 9and
23percent. However, theDevelopment BankofMauritius, established in1964andincorporated along
commercial linesin1988, stillmakes long-term loans, withamaturity ofeighttotenyears, forcapital
investment atconcessional rates between 7and13percent. Loan exposure does notexceed
MauRs25million onanysingle project. Projects withinterest ratesof8percentinclude modernization
ofequipment forEPZcompanies andfuelsaving investments, forsmall enterprises andthose with
Pioneer Status certificates, loans aremade available at10percent; a13percentrateisapplicable
toother manufacturing units, forhotel construction andmodernization andforindustrial andoffice
construction.39AttheendofJune1993, theDevelopment Bank'stotalassets wereMauRs3.2billion.40
Thiscompares toMauRs20.6billion incredit from commercial banks totheprivate sector.
(iv) Competition legislation
120. Consumer protection andtheprohibition ofanti-competitive trade practices arecovered by
theprovisions oftheFairTrading Act,passed in1980 andamended in1988, andtheConsumer
Protection Act,1991. TheConsumer Protection Actempowers theMinister tomake regulations with
aviewtotheintroduction ofmore compulsory standards andtesting services.
121. Under theFairTrading Act,which inparticular aimstoensure thatthose prices thatarefixed
(Chapter IV(4)(v)) arenotexceeded, trade practices must notmislead orconfuse consumers norbe
detrimental totheirinterests.41Agreements, including exclusive salesagreements ormonopolies, likely
toprevent ordistort competition intheproduction andsupply ofgoods, branded ornot,andservices,
arelikewise prohibited. Although exclusive rights maybegranted toagents byoverseas suppliers,
parallel imports areallowed; animporter isfreetoimport thesame product from another source.
Nocomplaints havebeenfiledwiththeMinistry ofTrade andShipping since theamendment made
totheFairTrading Actin1988.
39Republic ofMauritius (1994c).
40Republic ofMauritius (1994a).
41In1981 Commodities (Indications ofOrigin) Regulations requiring thatdomestic andimported goods bear
anindication oforigin label were issued under theFairTrading Act.Mauritius WT/TPR/S/5
Page 67
122. Compulsory codes ofpractice concerning trade in,orprovision of,services maybeissued
bytheMinistry ofTrade andShipping which isresponsible forenforcing theprovisions oftheFair
Trading andConsumer Protection Acts. In1989 twocompulsory codes ofpractice wereintroduced
under Section 8oftheFairTrading Actfordealers inelectrical andelectronic appliances andinmotor
vehicles.42These regulations aimtoensure thatthedealer makes theterms ofthetransactions, including
theprice andtheguarantee, clear totheconsumer andhasspare parts available forrepairs.
123. According totheauthorities, there hasbeensome discussion onestablishing aMergers and
Monopolies Commission orsimilar competition authority, butnodefinite plans havebeenconcluded
todate.
(v) Price controls
124. InMauritius price controls areadministered bythePrice Control Unitwithin theMinistry of
Trade andShipping intwoforms: afixed maximum pricesystem andamaximum percentage markup
system. Inthelate1970s 8,000 articles weresubject tofixed prices ormaximum mark-ups. In1983
along withtheliberalization ofthetrade régime, agradual movement toward decontrol began. The
number ofcommodities subject toprice control wasreduced from 115in1983 to13in1988.
Subsequently, price control wasreinforced, partly asananti-inflationary instrument, withcoverage
extended to51items in1991 (19locally manufactured and32imported goods) andthendismantled
foranumber ofcommodities in1991 asinflation declined. Atpresent ninelocally produced and32
imported commodities remain under pricecontrol (Table IV.15). Locally produced goods arestrictly
controlled viaprice fixing, whereas thepriceofcertain imports isregulated through maximum mark-
ups.43
125. According totheauthorities prices arefixed toensure supply atreasonable prices ofstrategic
imports andstaple commodities andwhere lackofcompetition makes consumer protection necessary.
Items which remain subject toprice control include agricultural products subsidized andmarketed by
theAgricultural Marketing Board andproducts imported bytheStateTrading Corporation orbyother
soleimporters. Consumer subsidies forriceandflour, financed through theStateTrading Corporation,
were eliminated in1993 andretail prices were raised; however these items remain subject tofixed
prices (Section (2)(xi)).
(vi) Assistance toresearch anddevelopment
126. TheMauritius Research Council, created bythe1992 Research Council Act,iscompleting
astrategy paper onScience andTechnology Policy. In1994MauRs10million ofgovernment funds
were earmarked fortheMauritius Research Council tosupport research anddevelopment (R&D).
Ataxrelief programme forfirms undertaking R&D wasestablished. During 1993/94 projects receiving
research funds included anational survey onquality ofcotton yarns andfabrics processed inMauritius
andchanges inconditions, attitudes andbehaviour oftheagricultural labour force.
42Government Notices 105and106(1989).
43Under theprovisions oftheLocally Manufactured Goods Regulations, 1992, oftheSupplies Control Act,
prices should cover production costs andallow foramark up;however, sugar, included inthelistofgoods,
ispriced below production costs.WT/TPR/S/5
Page 68Trade Policy Review
Table IV.15
Goods subject toprice control, 1995
Imports
Fixed pricesHS
CodeImports
Maximum mark-upaHSCode Local goods
Fixed pricesHSCode
Cement 2523 Ceramic tiles 6905 Onions 070310
Cheese 0406 Crash helmets 6506.101 Potatoes 0701
Cooking gas(LPG) 2711 Household washing machines Sugar 1701
Fertilizers 31 Electric floor polishers 8509 Aerated beverages 2201-2
Flour 1101 Electric foodgrinders &mixers,
fruitorvegetable juice extractors8509.40 Bread 1905
Frozen fish 0303 Electric kettles 8516.791 Edible oil 1507-9, 1515-16
Infant milkpowder 1901.10 Electric ricecookers 8516.792 Fertilizers 31
Ironandsteelbars 7213 Electric smooth irons 8516.40 Frozen fish 0303
Petroleum products 27 Glass panes Iron/steel bars 7213
Rice 1006 Plywood 4412 Flour, inc.whole
wheat flour1101
Salted snoek 03 Refrigerators andfreezers 8418
Sanitary wares 3922
School textbooks 4820
Timber
Tyres 4011
Vacuum cleaners 8516
Vinyl tiles 3918
Pharmaceutical products 30
Simple drugs 30
Sports goods 9506
Fresh fruit 08
a Mark-up varies between 20and45percent.
Source: Government ofMauritius.
(vii) Environmental policies
127. Mauritius can,byastretch oftheimagination, beconsidered asanearly casestudy ofthe
negative effects oftrade onenvironmental equilibrium. Famous asthehome ofthenowextinct dodo
bird,exterminated bysettlers inthe17thcentury, lesswell-known butequally destructive wasthecutting
down ofvastebony forests forfirewood. Inmodern times environmental damage hasoccurred in
Mauritiusinsuchareasascoraldepletion,overuseofagro-chemicalsandwastefromthetextilesindustry.
128. Astrong institutional framework exists toputacomprehensive environment policy intopractice.
TheNational Environment Commission firstmetin1987 andunder theEnvironment Protection Act
(1991) wasgiven thetaskofsetting national goals andresolving inter-sectoral issues. Ministerial
portfolios wererealigned resulting ultimately inthecreation oftheMinistry ofEnvironment andQuality
ofLifein1991. Within theMinistry, theDepartment ofEnvironment carries outtheGovernment 's
policies related toenvironmental goals. Setupin1989 theDepartment isresponsible fordeveloping
andenforcing standards toprotect theenvironment, carrying outreviews ofenvironmental impact
assessments forlocalprojects andisimplementing anEnvironment Investment Programme emphasizing
improvements inwaste andsewage treatment. Bylawmost neweconomic activities withpotential
significant impact ontheenvironment mustfileanenvironmental impact assessment forapproval byMauritius WT/TPR/S/5
Page 69
theMinistry. Among theactivities generally requiring animpact assessment areforestry andlivestock
projects, sewage works, transportation infrastructure projects, waste management activities, major
construction (including hotels andmajor housing projects), virtually anymanufacturing industry that
islikely togenerate significant pollution, andallcoastal, portorharbour development projects.44
129. Government policy istoapply the"polluter pays" principle aswidely aspossible. Newfactories
arerequired toinstall water recycling systems andwaste water treatment plants. Allhotels withmore
than75rooms musthavetheirownsewage treatment plant. Industries mustconform tothestandards
setforeffluent bytheCentral Water Authority ortheirwater supply willbedisconnected. Appropriate
standards forthecontrol ofindustrial effluent aretobedetermined.45Currently, cases ofindustrial
pollution detected orreported aredealt withadhoc. TheEnvironment Protection Actprovides a
mechanism fortheenforcement ofcorrective measures, butatpresent standards arebeing reviewed
andregulations havenotyetbeenissued.
130. Conservation measures, suchasabanonthesaleorexport ofcoralandshells andprohibitions
onspear fishing, have been putintoeffect. Exports ofcoral, sandandlimestone areprohibited
(Section (3)(ii)) andconstruction ofacement plant, which would limitdependence onimports, has
beendiscouraged forenvironmental reasons. Norms arebeing developed forpesticide residue infood
products (Section (2)(viii). Measures related toconserving energy orreducing theuseoffossil fuels
include theduty-free import ofsolarheating equipment ortechnology. Novehicle emission standards
haveyetbeensetandservice stations donotsellunleaded petrol. Under theIndustrial Expansion Act,
significant taxcredits andaccelerated depreciation allowances areavailable tointroduce anti-pollution
equipment andtechnology designed toprotect theenvironment.
131. Mauritius hassigned anumber ofmultilateral environmental agreements, including theVienna
Convention ontheProtection oftheOzone Layer anditsMontreal Protocol, theConvention on
International Trade inEndangered Species ofWild Fauna andFlora (CITES), theBasel Convention
onTransboundaryMovementofHazardousWastes,theBamakoConvention,theConventiononClimate
Change andtheConvention onBiodiversity. Itisalsoasignatory totheLawoftheSeaTreaty.
(viii) Protection ofintellectual property rights
132. Mauritius haslong-standing legislation, inherited from theUnited Kingdom, governing the
protection ofpatents andtrademarks, themost common forms ofindustrial property rights. Since
1976, Mauritius hasbeenamember oftheWorld Intellectual Property Organization (WIPO) andis
asignatory totheParis andBerne Conventions.
133. Under thePatents Act(1875) amended in1983, patents, ofwhich there were 119registered
inMauritius in1991, aregranted, assuming theforeign patent hasnotexpired, totheinventor only.
Anapplicant filesapetition withtheCentral Industrial Property Office, anewly created entity within
theMinistry ofTrade andShipping. Thepatent application must include themanner inwhich the
patent istobeperformed. Once approved bytheAttorney-General, thepatentee mustadvertise the
patent application intheGovernment Gazette. Ifnoobjections havebeenraised within onemonth
44World Bank (1993), p.61.
45Republic ofMauritius (1993a).WT/TPR/S/5
Page 70Trade Policy Review
oftheadvertisement, patent protection isgranted. Exclusive rights aregranted thepatent holder for
aperiod of14years, which maybeextended forafurther period of14years.46
134. Thepatent holder mayfilesuitagainst anyinfringement inthedomestic courts which willbe
heard intheSupreme Court. Afinding inthepatentee 'sfavour entitles himtofullcostreimbursement.
Aninjunction maybeissued prior totheinitiation ofcourt proceedings.
135. Closeto7,000trademarksareregisteredinMauritius.TheTradeMarksAct(1868),asamended
in1993, outlaws anyfalsedescription ofgoods. Asisthecaseforpatents, applications fortrademarks
aremade totheCentral Industrial Property Office. Again, theapplicant isexpected toadvertise his
application andwithin threemonths ofadvertisement; iftherearenoobjections, theapplicant receives
acertificate ofregistration. Trade marks ongoods areissued foraninitial period ofseven years, and
arerenewable. Customs havetherightunder theCustoms Act1988(Section 63)toprohibit imports
which would violate trade mark laworwhich falsely indicate origin.
136. ACopyright Act,protecting artistic, literary orscientific works, wasenacted in1986 and
amended in1988tobring theperiod ofcopyright protection intoconformity withtheBerne Convention.
TheActprovided fortheestablishment oftheMauritius Society ofAuthors forthecollective
administration ofauthors 'rights. TheSociety hasbeeninstrumental innoting various instances of
copyright infringement thathavebeenresolved orarepending judicial review.
137. ATechnical Committee under theaegis oftheNational Computer Board isreviewing the
Copyright Acttoensure adequate protection ofcomputer programmes.
46ASub-Committee onTRIPs isdeliberating thechanges required toimplement theWTO Agreement on
Intellectual Property Rights; asadeveloping country Mauritius hasuntil 1January 2000 toimplement the
Agreement.