Madagascar, like many developing nations, derives a sizeable portion of its revenue from customs taxes and value-added tax (VAT) on imports. Five to twenty percent of customs fees are subject to change each year when the budget is created. For many years, the import VAT has remained constant at 20%. Despite Madagascar’s lack of large formal non-tariff trade barriers, an indirect tariff barrier does exist in the form of the island nation’s higher-than-average customs fees (in comparison to other developing nations). With drinks, fisheries, flora and fauna, textiles, and about 40% of imports being subject to a 20% customs levy, these are some of the most protected goods. The government waived import taxes on medical supplies and accessories during the COVID-19 pandemic. Under industrial promotion programs, important industries like mining and textiles might gain fiscally from exemptions from customs import tariffs and VAT. Exports from nations that are partners with Madagascar in preferential trading blocs like the Common Market for Eastern and Southern Africa (COMESA), the Southern African Development Community (SADC), the Indian Ocean Commission (IOC), and the Interim Economic Partnership Agreement with the European Union (APEi) are exempt from customs taxes. Under certain circumstances, American businesses with manufacturing operations in those organizations’ member nations may be granted duty-free access to the Malagasy market.
Import requirements
The following documents are mandatory for importers based in Madagascar:
BSC (Bordereau de Suivi des Cargaisons, cargo follow-up document) – must be filled out online (https://bscmg.sgs.com/Misc/User_Guide_FR.pdf) before import of shipment to Madagascar Commercial invoice
- The airway bill or the bill of lading
- Bank payment
- Packing list
- Import declaration
- Certificate of origin
Prohibited and restricted imports
Except for a small number of strategically important commodities that are subject to specific regulation by the Malagasy government, the majority of imports entering Madagascar are not subject to import licensing requirements. The importation of pornographic materials, counterfeit items, pirated goods, radioactive waste from nuclear power plants, and products with forged labels of origin is prohibited. As with diamonds, gemstones, gold/platinum jewelry, and vanilla, prior authorization is required for the import of products like weapons, explosives, and drugs. Additionally, importing lubricants and tobacco leaf is subject to special regulations in Madagascar. The same limitations and/or concessions that are mandated by the multilateral environmental agreements to which Madagascar is a party are also implemented by Madagascar.
Customs regulations
Madagascar is a member of the World Customs Organization (WCO). Since November 2000, the Malagasy customs authorities have implemented the “transactional value” definition of the WCO. Customs duties are valued based on Cargo, Insurance, and Freight (CIF) for all imports.
Standards for trade
The Bureau de Normes de Madagascar, or BNM, is in charge of developing, implementing, and upholding standards in Madagascar. It represents Madagascar in regional and global standards bodies like the Codex Alimentarius, the Cycle Engineers’ Institute, the International Organization of Legal Metrology, and the International Organization for Standardization (ISO). BNM adheres to international standards, primarily those created by ISO when creating new ones. BNM creates specialized national standards for some important agricultural exports in close collaboration with the Ministry of Industry, Commerce, and Arts.
Under the Agreement on Technical Barriers to Trade, Members of the World Trade Organization (WTO) are required to disclose to the WTO all proposed technical rules that may have an impact on trade with other Members (TBT Agreement). Key information on proposed regulations and conformity assessment procedures is captured and made accessible for study and discussion through the free, web-based Notify U.S. e-mail subscription service. Users can request full texts of regulations and receive personalized email alerts when new notifications are added by their chosen country or country and industry sector(s).
