Morocco’s New Customs Declaration Rule Raises Import Costs, Sparks Industry Backlash

L’Économiste reports that this new procedure based on WTO rules "contributes to increasing the customs duties borne. The actual price paid must be declared, to determine the real value of an imported product, plus royalties and other license fees related to the merchandise to be valued".

Furthermore, when a franchisee or a subsidiary of a multinational company established in Morocco imports goods from abroad, it must include in the price of the goods the royalties paid to the franchisor. And "these royalties must be added to the value of the goods" indicates the same source.

Consequences, the invoices are steep. "Between the period of January 1 and July 26, the customs duty rate applied is 30%. And, since July 27 (date of publication of the amending finance law in the Official Bulletin), the tariff has risen to 40%".

It is important that "the franchise contract be thoroughly reviewed by the administration because many importers do not use maneuvers to evade the payment of customs duties" concludes the newspaper.