Nigeria recently expanded its list of goods exempt from value-added taxes, which now includes more agricultural, energy and pharmaceutical products, KPMG said Oct. 19. The changes, which were published last month, add various petroleum products, renewable energy equipment, agricultural seeds and seedlings, and raw materials used to produce pharmaceutical products to the country’s VAT-exempt list. Also included are military hardware, arms, ammunition and gas supplied by “gas-producing companies to electricity-generating companies.”
Ethiopia recently revised its customs tariff book, which includes over 8,000 tariff line items for raw materials, intermediate, consumer-oriented and capital goods, the U.S. Department of Agriculture Foreign Agricultural Service said in a report released Oct. 18. The book now includes higher duties on certain imported goods to “enhance the competitiveness of domestic producers,” USDA said, but also lowers duties on certain raw materials that aren’t available domestically. The changes include tariff cuts for 525 agricultural goods and increases for 522 other agricultural products.
Kenya will fully implement its new Integrated Customs Management System this month, which is expected to improve cargo clearance and allow all customs submissions at a single window, the Hong Kong Trade Development Council reported Oct. 11. The new system, which will be in place from Oct. 22, will also allow authorities to process declarations before vessels dock, which should reduce clearance times by about 60%, HKTDC said. Traders must submit both export and import sea manifests through the new system at least 48 hours before the ship arrives or departs.
Iran will extend its import ban on home appliances until at least the end of March 2022, the Hong Kong Trade Development Council reported Oct. 8. The ban, which began three years ago, has support from Iran’s appliance manufacturing sector, which says it helps local producers. But even though some imports can harm domestic production, the Home Appliances Sellers Association said the law encourages import smuggling in situations where local production can’t meet demand, HKTDC said.
Saudi Arabia recently announced new customs duty exemptions for certain imports, the Hong Kong Trade Development Council reported Oct. 7. Saudi Arabia will exempt duties on all imported “personal shipments” worth less than $267, including the shipping charges, and will impose a standard 15% value-added tax rate on all imports “of greater values,” HKTDC said. The country also clarified some shipping obligations by saying the transport carrier is responsible for shipment and customs clearance, “but the customer must communicate with the carrier to complete the shipment clearance procedures.” The carrier’s customs broker must prepare the declaration and is required to “provide the customer with a copy of the customs declaration showing all duties and taxes imposed,” the report said.
Egypt’s new Advance Cargo Information (ACI) system (see 2106210004 and 2107280006), which is expected to significantly reduce cargo processing times, became mandatory Oct. 1, the country’s finance ministry said, according to an unofficial translation. The ministry said the system will “expand the advance customs release of goods before their arrival at ports.” Carriers will be required to validate all ACI-related information “prior to loading from the first load port,” Maersk said in an Oct. 1 advisory. The company warned that shipping instructions will be rejected if certain information is missing.
The Gulf Cooperation Council recently amended its customs laws to better combat imported counterfeit goods, the Hong Kong Trade Development Council reported Sept. 30. The council, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, will now treat counterfeit goods as “smuggled” goods, and traders could face fines of up to double or triple the customs duty or tax on the goods, whichever is higher, HKTDC said.
Venezuela has struck a deal with Iran to swap its heavy oil for Iranian condensate that can be used to up the quality of the country's tar-like crude oil, Reuters reported Sept. 25. The first shipments are expected this week, five people close to the deal said, according to Reuters. The deal, signed between the state-run companies Petroleos de Venezuela, S.A. and National Iranian Oil Co., seeks to skirt U.S. sanctions for both nations. The swap is scheduled to last six months but could be extended, the report said. The Treasury Department told Reuters the U.S. can impose “secondary sanctions” against non-U.S. individuals or entities that carry out transactions with either of the oil companies. Secondary sanctions can include freezing a given party out of the U.S. financial system, fines or asset freezes.
Saudi Arabia officially completed the merger of its tax and customs authorities this month (see 2105120005), a move intended to improve customs procedures and trade exchanges, KPMG said Sept. 22. The new Zakat, Tax and Customs Authority is now “one umbrella authority,” organizationally still under the Ministry of Finance, KPMG said, and is expected to save traders time and money.
South Africa is conducting a cargo-related pilot test on its ePenalty system, which identifies and penalizes reporting noncompliance among carriers and freight forwarders, the Hong Kong Trade Development Council reported Sept. 10. The pilot, which is active Sept. 1 to Nov. 30, will focus on submissions on “advance‑cargo reports” for air and sea imports and rail exports. HKTDC said cargo reporters won’t be penalized during the pilot period but are “urged to submit the correct cargo reports and electronic conveyances on time.”