Mozambique: Nacala Customs exceeds target in H1

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Mozambique: Nacala Customs exceeds target in H1

3:22 CAT | 12 Jul 2022

Image: Notícias

Nacala Customs in Nampula province collected 3,777,977,160 meticais in the first half of the current year, against the 3,696,582,330 planned, representing a fulfilment of 106%.

Rigorous inspection and awareness of the need to pay taxes and customs fees are the main factors contributing to success in meeting targets.

‘Notícias’ found that the collection of taxes and other customs fees takes place at international goods terminals including the Port of Nacala, Nacala Airport, the coal terminal and the special export terminal.

The director of Nacala Customs, José Saltiel, notes that there are situations which challenge his institution, such as the rehabilitation and modernization of the Port of Nacala, which, he says, has reduced the number of ships docking there.

In 2020, 12 ships docked at the port, a number that in 2021 fell to just six. This year, the flow has already dropped to three to four vessels.

The second challenge is the non-payment of customs duties and Value Added Tax (VAT) by goods importers who benefit from exemptions within the scope of the Special Economic Zone.

Tax evasion is another constraint indicated by Saltiel.

It is not possible to quantify the losses caused by tax evasion, he said, as any estimate depends on the volume of goods seized on smuggling routes. For example, the last seizure at Nacala-Porto avoided more than 16 million meticais worth of damages to the state.

Despite all the challenges, Nacala Customs have managed to “tighten” exports to bridge the gap created in imports, making it possible to exceed the assigned targets, he explained.

José Salteil however says that the rehabilitation and modernization of the Port of Nacala will improve its visibility and influence hinterland countries towards it, although goods in transit are not subject to customs duties.

“Mozambique’s presence in the regional integration process will be very remarkable,” Saltiel says.

The Port of Nacala’s main competitors are the Port of Beira and Port of Maputo, in Mozambique, and Dar-es-Salaam Port, in Tanzania.

Source: Notícias