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Country Commercial Guides for FY 2000: Maldives Report prepared by U.S. Embassy Colombo, Sri Lanka, released July 1999   Note*

CHAPTER V

Trade Regulations and Standards

The trade sector in the Maldives is somewhat closely regulated. Certain staple agricultural products are imported mainly by the State Trading Organization, for security reasons. Local traders must apply for an import license to import these staples and because the quantities approved are so small, trading is not feasible or cost-effective--so the STO by default is usually the only importer. The STO also controls the import and resale of jet fuel. In addition, a government monopoly handles the trade of raw and frozen fish.

Imports are subject to duty, though tariff levels are relatively low. Goods considered to be luxury items (cars) or those posing environmental dangers (cars, large motorcycles, plastic bags) are subject to very high duties, as much as 200 percent.

Duty-free status is granted to inputs used in export-oriented industries (most notably on fabrics and other accessories for garment production). In addition, items imported for use in the tourism sector are exempted from duty, including: cement, corrugated metal sheets, glass, plywood, formed timber and wood; machinery (including commercial kitchen appliances such as ranges and freezers) and engines valued at US $1000 or above; outboard engines and sea vessels (up to US $5000 in value; vessels over US $5000 receive 50% relief in duty); plumbing and toilet/tub/sink fittings; electrical equipment (e.g., air conditioners, refrigerators and fans); electrical wiring and cables; and, desalinization plants, incinerators and compactors.

Specific trade prohibitions are limited to the following few items: firearms, ammunition, narcotic drugs, liquor and pornographic material.