Guide to Export
GUIDE TO EXPORT
Going Global
Your organization is Export Ready which means you have great product or service that the international market is looking for; you meet the international norms and standard, you have supply capacity – this section gives an overview on the Export Process.
Grow Your Business Through Exporting
Getting the right balance between international and domestic trade can protect your business if there is a downturn in one of the markets. Exporting will also give exposure to new ideas, marketing techniques and ways of competing. The challenges and victories undergone through exporting to overseas markets will also help developing new skills and ability to compete more robustly. In the long run Export helps the business generates more revenue.
Practical Information
Success in exporting needs careful preparation, planning and commitment. Before venturing into export markets, it is essential to get conversant on the following key elements:
- International legal requirements and to comply with
- Understanding of Free Trade Agreement (FTA) depending on trading country
- Awareness on Intellectual Property Rights (IPRs)
- International Sales Contract
- Knowledge in arbitration and dispute settlement
- Methods of payment: It is also important to understand the exchange rate volatility as fluctuations can affect profitability and pricing.
The beginner’s Guide to Export by the MCCI can as well be consulted.
Export Regulation
Expoters should comply to the Mauritius law in relation to export activities as there are a few goods that are controlled as per the Consumer Protection (Export Control) Regulation. The regulation is accessible here.
The Customs Department of the Mauritius Revenue Authority is responsible for monitoring and facilitating exports whereby the customs requirements for export are as follow:
The export entry/bill of entry is submitted electronically to customs by a declarant (a clearing and forwarding agent, a custom broker, a ship chandler or a commission agent) on behalf of the exporter or by an exporter who is registered on Mauritius Network Services (MNS) TradeNet.)
Freight Forwarder
Exporters can use the service of a customs broker or a freight forwarding agent for the clearance of goods through customs. A list of freight forwarding members of the Professional Association of Freight Forwarders is available here.
List of control goods for export
Certain goods are prohibited and restricted from exports and may be subject to the requirement for a third-party agency approval and appropriate clearance measures. The list of controlled exports whereby permit is required from the Ministry Commerce and Consumer Protection is available on the following link:
The list of controlled exports requiring clearance from a third party agency is accessible by clicking here.
Prohibited goods for exports are:
- National Heritage (Goods designated in Section 12 and specified in the schedule of the National Heritage Fund Act 2003, except with prior approval from the National Heritage Fund Board)
- Copper exported as Scrap (Refined copper and copper alloys, unwrought classified under HS 7403 exported as scrap) and Copper waste and scrap under HS 7404
Taxes on exports
Exports of goods and services are zero rated supply. Companies engaged in exports of goods are subject to a corporate tax rate of 3% compared to the regular 15% corporate tax rate.
Support and Assistances
Various initiatives and support programmes are made available to boost export among SME exporters in Mauritius. To get acquainted on the existing incentives you may refer to Schemes section.
Mauritius Trade Agreements
Multilateral Trade Agreement
WTO
A member of the WTO since 1995, Mauritius is subject to the surveillance of national trade policies whereby a trade policy review is carried out every 5 years by the WTO officials. The main principles of the WTO include the Most-Favoured Nation (MFN) Treatment and the National Treatment Rule
The WTO consists of the following main agreements:
- Multilateral Agreements on Trade in Goods including the General Agreement on Tariffs and Trade (GATT 1994) and its associate Agreements
- General Agreement on Trade in Services (GATS)
- Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
Useful Links
ESA-UK EPA
Mauritius is a beneficiary of the GSP scheme which offers preferential market access to the following countries:
- Australia
- Belarus
- European Union
- Japan
- Kazakhstan
- New Zealand
- Russian Federation
- Norway
- Switzerland
- Turkey
- USA
Criteria to export under the GSP Scheme
Mauritius along with Seychelles and Zimbabwe signed the United Kingdom (UK) – Eastern Southern Africa (ESA) Economic Partnership Agreement (EPA), referred as the “Agreement establishing an Economic Partnership Agreement between the Eastern and Southern Africa States on the one part, and the United Kingdom of Great Britain and Northern Ireland, other part” on 31st January 2019.
The Agreement entered into force on Friday, 01 January 2021 and it contains 3 chapters namely Trade in Goods, Fisheries and Development Cooperation.
Under the agreement, the ESA Signatory states have duty free access on all products, including that of high export interest such as sugar, tuna, garments, agro processed products, on similar terms as the EU-ESA IEPA.
The EUR1 Certificate of Origin is both issued and approved by the Customs Department of the MRA. The electronic application for the EUR1 Certificate of Origin can be submitted by authorized TradeNet users to the MRA Customs Department through the TradeNet system.
Useful Links
Regional Trade Agreements
African Growth Opportunity Act (AGOA)
The African Growth and Opportunity Act (AGOA) builds on the existing Generalised System of Preferences (GSP) scheme and offers duty-free and quota-free market access to the United States for approximately 7000 products.
The AGOA Visa Certificate is sold by Mauritius Export Association and is approved by the Ministry Commerce and Consumer Protection
Useful Links
Interim EPA with EU
An interim EPA was signed in Mauritius on 29 August 2009 between the European Commission and four Eastern and Southern African (ESA) countries namely; Mauritius, Madagascar, Seychelles and Zimbabwe. The agreement entered into force on 14 May 2012. The Union of Comoros joined the ESA Member States and ratified the interim EPA in January 2019.
The EUR1 Certificate of origin is issued and approved by the Customs Department of the MRA. Application can also be made online via the TradeNet System.
Useful Links
African Continental Free Trade Agreement (AFCFTA)
The AFCFTA came into force on 30 May 2019 and is the continent’s most ambitious integrated initiative, with the main objectives of:
- Creating a single continental market for goods and services, with free movement of business persons and investments;
- Expanding intra-africa trade; and
- Enhancing Africa’s competitiveness and support its economic transformation.
The certificate of origin shall be issued by the Customs Department of the Mauritius Revenue Authority on application by exporter or producer, provided that the goods meet the origin criteria.
Useful Links
Indian Ocean Commission (IOC)
The Indian Ocean Commission (IOC) is an intergovernmental organisation that joins Comoros, Madagascar, Mauritius, France (for Réunion), and the Seychelles together to encourage cooperation. The main objectives of the IOC are to promote diplomatic cooperation and to strengthen economic and commercial ties among the Indian Ocean islands. Presently, only Mauritius and Madagascar are granting trade preferences under the IOC trade regime and there are no customs duties for products meeting the IOC rules of origin between the two countries.
Useful Links
COMESA
Launched on 31 October 2000, the COMESA FTA consists of 16 member states trading on a full duty free and quota free basis, with the remaining countries at various stages of joining the FTA.
The COMEA Certificate of Origin is issued and approved by the Ministry Commerce and Consumer Protection.
Useful Links
SADC FTA
The SADC Free Trade Area (FTA) was officially launched in August 2008 by 12 of the 15 Member States. The implementation of the SADC Trade Protocol started in the year 2000 with the gradual elimination of customs duties on 85% of tariff lines by 2008. For Mauritius, tariffs on the remaining ‘sensitive products’ were eliminated in January 2014.
The SADC Certificate of Origin is issued and approved by the Customs Department of the MRA.
Useful Links
GSP Scheme
Under the Generalized System of preferences (GSP) Scheme, a number of developed countries offer preferential market access on a wide range of products to selected developing and least-developed countries.
Mauritius is a beneficiary of the GSP Scheme which offers preferential market access to the countries offering the Schemes.
As from January 2019, Mauritius has implemented the Registered Exporter system (REX system) which is a system of certification of origin of goods that applies in the Generalised System of Preference of the Norway and Switzerland
The GSP Certificate of Origin is sold by the Mauritius Chamber of Commerce and Industry and approved by the Commerce Division of the Ministry of Industry, Commerce and Consumer Protection
Useful Links
Bilateral Trade Agreements
Mauritius Pakistan PTA
The Preferential Trade Area (PTA) between Mauritius and Pakistan was signed on 30 July 2007 in Mauritius with the main objective of increasing trade between the two countries. Under the PTA, tariff concessions have been granted on a list of products of export interest to both countries, which will allow operators to trade with Pakistan on preferential terms.
The Mauritius-Pakistan PTA Certificate of Origin is issued and approved by the Customs Department of the Mauritius Revenue Authority.
Useful Links
Mauritius Turkey FTA
The Mauritius and Turkey FTA was signed on 9 September 2011 in Istanbul and entered into force on 01 June 2013. It provides duty-free and quota-free access on all industrial products except for a list of 70 clothing items on which duties will be phased down over a period of 4 years. With respect to agricultural products, the FTA provides preferential access on a list of some 40 products on a tariff quota basis.
Useful Links
Mauritius China FTA
The FTA between Mauritius and China was signed in October 2019 in Beijing and entered into force on Friday 01 January 2021.The FTA comprises of four main components which pertain to trade in goods, trade in services, investment, and economic cooperation.
The Certificate of Origin is issued by the Customs Department of the Mauritius Revenue Authority on application by exporter or producer, provided that the goods can be considered as originating in Mauritius.
Useful Links
MAURITIUS-INDIA COMPREHENSIVE ECONOMIC COOPERATION AND PARTNERSHIP AGREEMENT (CECPA)
India and Mauritius resumed negotiations on the Comprehensive Economic Cooperation and Partnership Agreement in September 2017.
7 rounds of negotiations and 13 DVC were held. The CECPA covers three main chapters namely Trade in Goods, Trade in Services and General Economic Cooperation.
Useful Links
Trade in Goods
The CECPA contains a comprehensive chapter on Trade in Goods including Preferential Trade Agreement text and tariff elimination scheduled by both countries, Customs Cooperation, Trade Facilitation, Sanitary and Phyto-sanitary measures and Technical Barriers to Trade.
Mauritius submitted a request for market access for 615 products covering key products such as special sugar, garments, medical devices, spirits and rum amongst others. The latest proposal as included in the consolidated CECPA text on our key products are provided below.
| Item | Market Access Offer of India on Key Products |
|---|---|
|
Special Sugar |
40 000 tons @ 10% duty Year 1: 15 000 tons @10% duty Year 2: 30 000 tons @10% duty Year 3: 40 000 tons @ 10% duty |
|
Rum |
1.5 million litres @ 50% duty |
|
Beer |
2 million litres @ 25% duty |
|
Fruit Wine |
5000 litres @ 50% duty |
|
Garments |
7.5 million pieces at zero duty with sourcing of 5 million yarn/fabric from India, and 2.5 million yarn/fabric from any other country |
|
Canned tuna |
7000 tons duty free |
In a nutshell, Mauritius will have preferential access on including medical devices, food preparations, vanilla, ethyl alcohol, medicinal preparations, detergents, soaps, clock and watch parts, and jewellery, amongst others.
The Indian market access offer as it stands is commercially meaningful and can be accepted by Mauritius, although a request has been made to the Indian side to further improve its offer. A provision has been included in the Agreement to pursue negotiations on additional tariff lines.
As regards the Mauritius market access offer, preferential treatment will be provided to the Indian side on a list of 310 products.
Trade in Services
The CECPA contains a comprehensive Chapter on Services aimed at improving bilateral trade in services. Both sides will take commitments in some 31 sub sectors, including insurance and insurance related services, banking and other financial services, telecommunication, professional services such as accounting, auditing, market research, architectural, engineering, veterinary services, distribution services, tourism and travel related services, translation and interpretation services.
Way Forward Agreed by Both Sides
- Market Access– Both sides agreed to sign the Agreement and include relevant provisions therein that would allow the continuation of negotiations on additional market access within a period of 2 years from the date of entry into force of the Agreement.
- General Economic Cooperation: To expedite the signing of the Agreement, on 18 October 2019, the Indian side proposed to drop the General Economic Cooperation Chapter for the time being since it covers 25 different sectors and would be time consuming for them to consult with different Ministries. An article has thus been included in the Agreement that provides for the incorporation of the General Economic Cooperation chapter, within two years from the signing of the Agreement.
- Data Protection: The Mauritian side was informed in October 2020 that the Indian side is in process of introducing new laws on data protection and would not wish for the time being to take any commitments in the schedule on commitments under Services. Both sides thus agreed that a side letter on data protection be signed together with the CECPA.
- Signature of the CECPA: On 30 December 2020, the Indian side submitted a draft consolidated CECPA text, that was sent to the Indian Cabinet of Ministers. The CECPA will be signed on 22 February 2021.
- Entry into Force: The CECPA Agreement has come into force on 1st April 2021.
Useful Links
Market Intelligence
Useful insight to enhance your decision-making and get an overview on export opportunities, please visit :
Useful Links
EXPORT PROMOTION
The Export Promotion Programmes provided by EDB shall enable SMEs to reach out global buyers and seize business opportunities overseas. The plethora of programmes range from participation in workshop, webinars, International Trade Events – please register to get updated information.
Market Intelligence
Useful insight to enhance your decision-making and get an overview on export opportunities, please visit :
Export Promotion
The Export Promotion Programmes provided by EDB shall enable SMEs to reach out global buyers and seize business opportunities overseas. The plethora of programmes range from participation in workshop, webinars, International Trade Events – please register to get updated information.
