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Country Commercial Guides for FY 2000: Cape Verde Report prepared by U.S. Embassy Praia, released July 1999

CHAPTER VI:   Trade Regulations and Standards

Tariffs and Import Taxes: in August 1991, import tariffs were streamlined. The previously cumbersome system (including over 80 rates with specific tariffs) was replaced by 10 ad valorem rates ranging from 5% to 50%. In addition to these duties, imports to Cape Verde are subject to a general customs service tax of 7 percent and a consumption tax on non-priority goods, ranging from 5 percent to up to 60 percent for hard liquor.

Customs valuation is made in accordance with the definitions of Brussels' convention.

Import Licenses: as a result of pre-election overspending and higher than expected imports in 1995, the government faced with strong pressures on its foreign exchange reserves, re-introduced import quotas on a number of commodities equivalent to about 10 percent of import value. Although the list of commodities subject to import quotas was reduced to about 6 percent in 1997, the government of Cape Verde intends to introduce legislation to completely remove import quotas by the end of 1999. For liberalized products, the prior import license has been replaced by a simple declaration of importation.

Export Controls: given the significant structural deficit of the trade balance, there are no controls on exports. On the contrary, a new law passed in 1993 provides a variety of incentives to exports.

Import/Export Documentation

1. Commercial Invoice - Two copies of the commercial invoice, in both Portuguese and English, should accompany the shipment. An accurate and specific description of the goods should be given, together with FOB value and an itemized description of expenses. The shipper's name and address as well as that of the consignees should be shown, plus date and any other usual details.
2. Pro-forma Invoice - may be required by the importer to obtain an import license.
3. Bill of Lading/Air Waybill: There are no regulations specifying the form or number of bills of lading required for any particular shipment. A bill of lading customarily shows the name of the shipper, name and address of consignee, port of destination, description of goods, listing of freight and other charges, number of bills of lading in full set, and the date and signature of the carrier's official acknowledging receipt on board of the goods for shipment. The information should correspond to that shown on the invoices and packages.
4. Insurance Certificate - it is required that transport insurance on imports be placed with the state insurance company whenever goods are under the ownership of a Cape Verdean national.
5. Import License - six copies of the import license for controlled goods; four copies of the declaration of importation for liberalized goods.
6. Phytosanitary Certificate - Plants, seeds and animals, and vegetable and animal products should be accompanied by a sanitary certificate issued in the country of origin and may be subject to inspection at the port of entry..

Temporary Entry: Temporary entry is authorized for cooperation projects, diplomatic missions and to temporary foreign workers.

Import Restrictions: Narcotics are prohibited. Pharmaceuticals may only be imported by public institutions.

Standards: Cape Verde uses 220 v 50 cycles for electricity and the metric system of measurement. Operating standards usually follow the Portuguese or European norm.

Free Trade Zones/ Warehouses: A decree law in May 1989 created the legal basis for a free trade zone. Entrepot activities can be undertaken, such as the storage of goods without payment of duties, with storage periods ranging up to four years. Recently, a new law was passed, regulating free-zone enterprises. Enterprises that export goods or services may apply for free-zone status without being located in a free zone.

Membership in Free Trade Arrangements: Cape Verde is a member of the Economic Community of West African States (ECOWAS) and it benefits from the Generalized System of Preferences and the Lomé Convention, thus providing investors with preferential access to West Africa, the United States and Europe.