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Country Commercial Guides for
Report prepared by U.S. Embassy Nouakchott, released July 1999 |
VI. TRADE REGULATIONS AND STANDARDS
Trade Barriers
Foreign investors very often complain of the complexity of customs procedures and problems of corruption. The importation of luxury items is discouraged through the system of taxation, which is based on the local market value of each item. Customs, however, handles a referential list of items with the respective import taxes and duties. Following are some trade barriers that the GIRM is committed to changing:
Limited infrastructure: A major barrier to trade and investment is the limited infrastructure available in the country. Few paved roads (1,971 km), one railroad line destined for the transport of iron (670 KM), limited air and maritime transports, deterioration of airstrips in the interior, lack of electricity in many localities in the interior, and a lack of potable water in many urban areas are some of the obstacles to foreign investment in Mauritania. However, several development projects currently underway covering the period 1998-2002 are designed to address these deficiencies.
Communication Problems: Arabic is the official language, but French is used in almost all business activities. A few but growing number of businesspeople can conduct business in English. Consumer product literature in Arabic and/or French is preferable. Mauritanian commercial practices are French-based, but this should not constitute a significant barrier to U.S. exports to Mauritania.
Customs Regulations
All imported goods, except those previously exempted by law, are subject to import duties. Import duties are generally calculated on the basis of imported goods' values as reported on the original invoice price (CIF). When the buyer does not present the original invoice price, Customs evaluates the market value of the product and applies the respective rate. Mauritania is one of the undeveloped countries benefiting from the ten years' exemption to apply the WTO requirements. The imported goods should be declared at Customs after landing, and the "Societe Generale de Surveillance" should inspect them in order to control their quality and quantity and compare it with those reported in the invoice.
Tariff and Import Taxes
The GIRM's 1999 Financial Laws focused on a Government revenue increase but with the reduction of customs duties. The number of different taxes has been reduced from five to four, with the introduction of "Droit Fiscal à l'Importation," which replaced two existing taxes that applied to imports. Customs formalities have been simplified, imports of essential goods encouraged, and the system of collecting customs duties streamlined. However, Mauritania's system of taxation continues to be heavy for importers. The tax rate varies between 9% and 43% according to the nature of items and their utility for consumers or users. Value Added Tax (VAT) rates on imported goods are divided in two categories: 5% for goods considered essential and 14% for nonessential goods. VAT is not applied to exported goods. Importers consider the import taxes high in comparison to the rest of the world. GIRM plans to reduce taxes on imports in the next years in order to reach its goal of 25%.
Import licenses requirements
Import licenses are now easy to obtain. The cost and conditions of obtaining the import/export license are discouraging for small and medium traders. The industrial companies, however, have more facilities in obtaining the license. To further facilitate import procedures, the Minister of Commerce can grant special authorization to Mauritanians who do not hold a regular import/export license. In such cases, the amount authorized, the validity, and the items to be imported are specified in the authorization. Mauritania is member of World Trade Organization and a signatory of the EU/ACP Lomé Convention.
Special Import/Export Requirements and Certifications
Significant amounts of import and export transactions are conducted through commercial banks. The documents generally required by Mauritanian importers include the commercial invoice, bill of lading or certificate of origin, and certificate of inspection given by "Société Générale de Surveillance" covering the country of origin of imported goods. The commercial invoice should contain the name and address of seller and buyer; place and date the invoice was prepared; method of shipment; quantity, description, and price of the goods; and delivery and payment terms. Payments are usually made through irrevocable and confirmed Letters of Credit under the control of the Central Bank of Mauritania or through direct transfer from the bank of importer abroad to the bank of supplier.
Export controls
There are no restrictions on the export of goods from Mauritania. The country exports only four products: iron, fish, gum, and skin/leather.
Prohibited imports
Mauritanians, in accordance with Islamic strictures, are prohibited from importing alcoholic drinks and pork; imports of firearms are also prohibited. Due to Mauritania's establishment of ties with Israel, the Arab League-imposed secondary and tertiary boycotts against Israel are no longer enforced.
Free Trade Zones
There are no free trade zones in Mauritania; however, UNCTAD-supported free trade zones are under consideration.
Customs contact Information
Following is the Customs contact information:
Ministère des Finances
Direction Générale des Douanes
Boite Postale 198
Nouakchott, Mauritanie
Tel: (222) 25-14-04 or 25-63-02
Fax: (222) 25-63-04
Contact: Colonel N'Diaga Dieng (Director)
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[end of document] Note* International Copyright, United States Government, 1999. All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U.S. Copyright Law, Title 17, United States Code.
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