Mozambique has reduced the transit bond fees and revised the list of exempted goods exported from Malawi from 40 to 144.
This follows discussions between the Mozambican Government and the Malawi Government after trucks were piling up at the borders owing to the introduction of a transit bond system by Mozambique in April this year.
During a press briefing that the Malawi Revenue Authority (MRA) held in conjunction with the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) and the Clearing and Forwarding Agents Association of Malawi (Cafaam), MRA commissioner of customs and excise AgnessKatsonga noted that Mozambique had a bond requirement all along but it was not being enforced.
“With the introduction of the national single window in April 2013, the transit bonds were automated and enforced. However, although the Mozambican clearaing agents had been given adequate notice to put in place the required bond guarantees they were not ready by implementation date,” she said.
She observed that this was because conditions such as the required collateral set up by banks and insurance companies among others for setting up the transit bond guarantees were too tough, and agents reduced from over 100 to 25.
The piling of trucks at the borders led to delayed delivery of merchandise, raw materials and project equipment; high landed cost of various goods due to unofficial transit payments; loss of production; high transport costs due to diversions and delayed realisation of forex due to delays in processing export transit approvals for goods shipping through Mozambique ports.
Following the discussions that Malawi had with Mozambique, the transit bond fee has been reduced from 100 percent to 20 percent for containerised goods and 35 percent for break bulk cargo.