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Country Commercial Guides for FY 2000: Cameroon Report prepared by U.S. Embassy Yaounde, released July 1999

CHAPTER VI.   TRADE REGULATIONS AND STANDARDS

A.   TRADE BARRIERS, INCLUDING TARIFF AND NON-TARIFF BARRIERS

In January 1994 Cameroon became the first state of the six-nation Central African Economic and Monetary Union (CEMAC) to implement a new Regional Reform Program which included new custom and investment codes. The code eliminated quantitative restrictions on imports, lifted non-tariff protections, eliminated many import licensing requirements, and simplified customs assessments. In January 1998, the tariff code was further liberalized to facilitate regional trade within CEMAC by eliminating duties on manufactured goods, leaving only the Value Added Tax (VAT) which became effective as of January 1999. A functioning, stable CEMAC customs code may ultimately facilitate shipment and sales within Central Africa.

B.   CUSTOMS REGULATIONS

Customs taxes in Cameroon are levied on the CIF value of the imported goods. Customs fraud is endemic in Cameroon, and protracted negotiations are common with customs officers over the value of imported goods not subject to SGS valuation. For the purpose of determining the value of goods that are subject to import tariffs, the prevailing practice is to value the goods at the list prices in the country of origin and include the cost of freight to Douala.

C.   TARIFF RATES

The 1994 Regional Fiscal Reform Program outlines six different tariffs and taxes associated with importation of goods: The Common External Tariff, the Generalized Preferential Tariff, the Temporary Surcharge, the Excise Tax, the Value Added Tax, and other Service Taxes.

The Common External Tariff (T.E.C.) regroups merchandises in four categories, with rates ranging from 5 to 30 percent:

  
   Cat I  : First necessity goods		Rate :   5 percent
   Cat II : Raw materials and equipment 	Rate :  10 percent
   Cat III: Intermediary (semi-processed) goods Rate :  20 percent
   Cat IV :  Final products (consumption goods) Rate :  30 percent

The Generalized Preferential Tariff (T.P.G.) was only temporarily levied and disappeared in 1999, five years after inception of the reform. Its rate was 20 percent.

The Temporary Surcharge is a tax that aims to protect the national economic space. It concerns only some categories of merchandise and ranges from 0 to 30 percent. On prescription of the World Trade Organization, this tax will disappear on July 1, 2000

The Excise Tax, as an indirect tax on consumption goods, covers specific categories of goods defined by Ministerial ordinance. Its rate in Cameroon is 25 percent, but in some CEMAC countries it can soar to 100 percent.

The Value Added Tax (T.V.A.) is a consumption tax. It is levied on both merchandise entering the country and merchandise sold on the local market. For exonerated products, the rate is 0 percent. For other products, the general rate is 17 percent plus a communal tax of 10 percent, or an overall 18.7 percent tax. Products that qualify for the reduced rate will pay 8 percent plus a communal tax of 10 percent, or an overall 8.8 percent tax.

Finally there are miscellaneous taxes on services. The administration of these tariffs is very difficult to understand for the general public. Any potential exporter to Cameroon might want to contact the Custom Administration or the Geneva-based Société Générale de Surveillance (SGS), which handles customs valuation. The SGS, which verifies the quantity, quality and pricing of Cameroonian imports, is headquartered at SGS Control Services, Inc., 42 Broadway, New York, New York 10004 (212/482-8700; Fax: 212/224-9122). A list of SGS field offices in the United States can be obtained from that office.

D.   IMPORT TAXES INCLUDING VALUE ADDED TAXES, PURCHASE TAXES, UPLISTS AND SURCHARGES, AND PROVINCIAL TAXES

The 1994 Regional Fiscal Reform Program outlines six different tariffs and taxes associated with importation, which are all discussed above.

E.   IMPORT LICENSE REQUIREMENTS

Import licensing has been simplified. Currently a prospective importer needs only the "agrément" in order to import. The "agrément" is a general import license delivered to registered businesses for a duration of two years, renewable, to cover any item that the importer may choose. Special permits are granted to individuals who desire to import items for personal use. Contractors importing equipment and supplies related to public contracts can obtain a special tax-free exemption from the Ministry of Economy and Finance.

F.   TEMPORARY GOODS ENTRY REQUIREMENTS

Temporary admission has been scaled down to include only a few large importers wishing to sell on the Cameroonian market. A maximum of one year is allowed for storage, and a security bond is usually required. Storage fees are assessed from the date of landing. The importer pays customs duties on each batch of goods removed from storage until the entire stock is cleared. The Government provides warehouses for temporary admission. Some large importers and freight forwarding companies also operate government-supervised warehouses for temporary admission.

Goods in transit to the landlocked countries of Chad, the Central African Republic and the Republic of Congo (Congo-Brazzaville) are stored in the freight forwarder's warehouse, and an amount equal to the value of assessed import tax is held by customs as a guarantee. The guarantee is released when the goods are removed from the warehouse for onward delivery to their destinations. SGS has initiated a new control to verify that goods destined for trans-shipment are indeed delivered, since they are free of duty.

G.   SPECIAL IMPORT/EXPORT REQUIREMENTS AND CERTIFICATIONS

Cameroonian customs officials require a commercial invoice and a bill of lading (or air waybill) for all goods entering the country. Shipping marks and numbers on bills of lading should correspond exactly with those on the invoices and on the goods. Three copies of invoices are requested for surface shipments and four copies for air shipments. In addition, the Cameroonian importer has to present an import license, permit or exception. Documentation on bank transactions concerning the specific delivery is required only if the value of the imported goods is over two million CFA francs (USD 3,333). Certificates of non-infestation, delivered by the appropriate authority in the country of origin, are also required for certain imports such as used clothing. A pre-shipment inspection certificate and the Bill of Clean Findings, delivered by SGS is required for shipments valued over two million CFA francs (FOB).

H.   LABELING REQUIREMENTS

Labeling and packaging requirements for canned products destined for Cameroon should have the manufacture and the expiration dates engraved or stamped on top of the container or packaging in clearly legible indelible ink. Dates should be preceded by short comments in French and/or English: "made in" and "to be consumed before." It is recommended that the label, written in both French and English, carry the following inscriptions: country of origin, the name and address of the manufacturer, the product name, the weight (metric system), and all ingredients, including salt. It is compulsory to prelabel cigarettes that are to be sold in Cameroon. This label, in the form of a fiscal stamp, must theoretically be prepaid by an importer of cigarettes months before the shipment is made. Cameroon has granted a contract to SGS to inspect the quality of goods imported in the country. U.S. exporters interested in doing business with Cameroon may also wish to contact SGS for further information on shipping food items into the country.

I.   PROHIBITED IMPORTS

Prohibited imports include specific sanitary products, chemicals, toxic waste, some cosmetics, and some food items. The list of prohibited imports can be modified whenever a new item is identified for exclusion. A complete list of prohibited imports is included in the General Trade Schedule (GTS) that is available for public distribution. American companies may obtain a copy of the GTS from the Cameroonian Embassy in Washington.

J.   WARRENTY AND NON-WARRENTY REPAIRS

General conditions on warranty repairs are applicable in Cameroon. Parties to a transaction can also decide whether to fix the item locally and obtain a cash rebate on subsequent orders or send the item back at the supplier's expense to have it fixed.

K.   EXPORT CONTROLS

The Government of the Republic of Cameroon eliminated its most onerous export licensing requirement as of July 1, 1994 by deregulating the export of cocoa, coffee and cotton.. Coffee and cocoa exports must still obtain a quality grade certification. In August 1997, the GRC licensed Société Générale de Surveillance (SGS), La Cordeler Cameroun, SA and L'Observatoire Camerounais de la Qualite (OCQ) to control the quality of Cameroonian coffee and cocoa prior to exportation. Licenses are also required for "strategic" products such as gold and diamonds and for ecologically sensitive items (governed by the CITES Convention) such as live animals, birds and medicinal plants. In January 1998, the GRC removed petroleum and hydrocarbons from the list of sensitive products subjected to prior price assessment procedures.

In order to support the competitiveness of its agricultural products, the GRC eliminated in its FY2000 Financial Law export taxes on eight agro-industrial products: bananas, cocoa, coffee, cotton, rubber, sugar, palm oil and medicinal plants. Although export taxes on agricultural products are seen as an alternative to taxing farmers, a more efficient mechanism for collecting personal income taxes throughout the society is being explored.

L.   STANDARDS

The Department of Price Control, Weights and Measures is responsible for standards administration in Cameroon, but its impact has so far been felt mainly in the area of price control. The metric system is the official standard of weights and measures. The standard electric current used in Cameroon is A.C., 50 cycles, 220-380 volts, but there are regional variations to that norm. Television operates on the PAL standard. Cameroon transformed its telecommunications system from analog to digital technology. A cellular phone service was launched in July 1993 to cover a limited geographical area, and a second cellular phone license was also recently granted to a French company. They operate on the GSM standard. While both English and French are official languages in Cameroon, French is essential to successful business transactions. The English-speaking part of the country constitutes only 20 percent of the population.

M.   FREE TRADE ZONES/WAREHOUSES

Cameroon's Industrial Free Zone (IFZ) regime is production and export oriented. Only 20 percent of goods produced in the enterprises in the zones can be sold on the Cameroonian market. The GRC has discontinued granting authorizations to investors seeking the free zone regime. The licensing process was suspended since 1996, awaiting an audit of past operations. There are no free trade warehouses in Cameroon.

N.   MEMBERSHIP IN FREE TRADE ARRANGEMENTS

Cameroon belongs to all multilateral free trade arrangements except the ATA Carnets Convention. A signatory member of the Lome Convention, Cameroon enjoys special trading advantages within the European Union, its largest trading partner. Cameroon is also a member of the World Trade Organization (WTO) and is one of only six countries in Sub-Saharan Africa to have had its trade policies reviewed through the Trade Policy Review Mechanism (TPRM). Cameroon has established an inter-ministerial committee to monitor and implement its WTO commitments.

O.   CUSTOMS CONTACT INFORMATION

Mr. Joseph Moulela, Director of Customs; Telephone (237) 42.32.02. The best alternative would be to contact SGS Control Services, Inc., 42 Broadway, New York, New York 10004 (212/482-8700; Fax: 212/224-9122). A list of SGS field offices in the United States can be obtained from that office.