The majority of tariffs on eligible consumer and industrial items were promptly reduced under the U.S.-Morocco FTA, which went into effect in 2006. Tariffs will gradually be eliminated for a very small number of products over the years leading up to the FTA’s full implementation on January 1, 2023.
The USMFTA also establishes market access for services, intellectual property protection, a stable legal environment for American investors, transparent and ethical public procurement practices, and robust labor and environmental safeguards.
Duties may be further reduced if the imported good is an unfinished good that needs to be finished in Morocco, processed, or assembled. The few products that will gradually have their import taxes eliminated range from 2.5 percent to 35 percent. Additionally, a Value Added Tax (VAT) that ranges from 0% to 20% is levied on imported goods. Contrarily, the VAT is not always levied on products made locally (such as corn) or on all vehicles used for international travel.
Finance activities like technical export goods inspections, economic and export promotion, industrial development, and small-scale production are subject to a 25% para-fiscal tax on imports. The para-fiscal tax is not applied to any imports of goods that are eligible for preferential treatment under trade agreements between Morocco and other nations, special customs procedures, or concessions granted in the context of officially approved investment programs, statutory provisions, or special regulations.
Too much formality and bureaucracy can delay product introductions. Public sector permits, property approvals, and procurements are inefficient and opaque.
Documentation obligatory for all imports and exports
The following forms of documentation are obligatory for all imports and exports
• A permit specifying “physical import or export” is required.
• A commercial bill
• The Foreign Exchange Office grants “import commitments” to transfer international money from Morocco to suppliers.
In the majority of cases, actual invoices are sent out rather than pro forma ones. There is no requirement for a certain form to be used as an invoice. The commercial or Pro-forma invoice needs to have the following information included: the letterhead of the supplier; a complete description of the items in French; an indication of the HS code if one is available; an indication of the amount of the goods; an indication of the currency to be paid in (for currency exchange); and the supplier’s address. Please include the address of the purchaser. Employ the European format for dates, which is dd/mm/yyyy.
A “customs declaration” (declaration de douane) is provided by the Customs Administration. This document is necessary for import and export transactions that take place at an airport or port. The “declaration of douane” is replaced with a straightforward form that must be filled out at the post office for shipments made through the mail.
Any material that the Customs Administration may find helpful may be attached to the shipment by either the importer or the exporter. The documentation of technical procedures is one example of this type of content.
New Moroccan Verification on Conformity
A “Verification of Conformity (VoC)” program was set up by the Moroccan Ministry of Industry, Investment, Trade, Green and Digital Economy (MCINET) to certify that goods imported into Morocco adhere to national standards for product quality and safety. VoC began accepting applications on February 1, 2020.
Trade agreements
In 2006, the USMFTA came into effect. The sole U.S. free trade deal on the African continent is this one. The USMFTA is broad and contains chapters outlining promises on labor, environmental protection, and intellectual property rights.
By giving businesses an effective, legal framework and a safe workplace, Morocco has pledged to make its business environment more transparent and accessible to foreign corporations. The governments of the United States and Morocco have agreed to publish their existing trade and investment laws as well as any upcoming proposed legislation. Whistleblowers are protected, all forms of bribery are prohibited, and American businesses investing there have the same legal privileges as Moroccan ones.
