The GDP of the relatively small country of Sao Tome and Principe (STP), which has a lower middle class, is weak. It is extremely susceptible to external shocks. It is an island 350 kilometers off the west African coast that is organized into six divisions and the Autonomous Republic of Principe. This Portuguese-speaking country has a sample size of over 215,000 individuals and a Gross National Income (GNI) per head of population of $1,960 as of 2019. Its total area is 1,001 sq. km.
Small, isolated nations like STP suffer difficulties that limit their capacity to absorb crises and preserve financial and international dynamic equilibrium. A massive price of common utilities and a significant level of public spending are implied by the indivisibility in the production of common goods and the challenge of supplying facilities to a dispersed populace. Anyone who intends to launch a business or acquire any foreign goods for private use has to be aware of the country’s import tariffs and laws. To learn more about imports into the nation, keep reading.
Import tariffs
Wheat and milk are exempt from import taxes. To reduce tree cutting and the ensuing habitat loss, the state announced in May 2022 to exclude wood importers from all duties and importation levies. The basic duty ratio in Sao Tome and Principe is
- 5% for Group One items such as basic goods,
- 10% for Class Two items (such as building ingredients), and
- 20% for Class Three commodities (e.g., intermediate goods such as most eateries and cosmetics).
Brewery, fine wines and liquor products fall under Class Three and are subject to a 20 percent duty. Additionally, there are fees on certain product lines that range from 50% to 110%. Liquor is taxed at $1.4 per liter, wine at $0.47 per liter, and beer at $0.28 per liter. Additionally, port fees, and costs associated with customs officials, dealers, and occasionally plant protection officials, are necessary. There is an extra registration fee for vehicles.
The table below explains additional import taxes.
| products | MFN taxes in % | Import taxes in % | |||
| AVG | Duty-free | Max | AVG | Duty-free | |
| Electricals | 10.3 | 0 | 20 | 9.0 | 0 |
| Non-electrical items | 9.4 | 0 | 20 | 8.2 | 0 |
| Manufacturing items | 10.7 | 0 | 20 | 2.4 | 0 |
| Transport items | 12.2 | 0 | 20 | 2.4 | 0 |
| Leather | 14.6 | 0 | 20 | 2.1 | 0 |
| Shoes | 14.6 | 0 | 20 | 2.1 | 0 |
| Paper | 6.3 | 36.5 | 20 | 7.2 | 8.8 |
| Clothes | 8.5 | 0 | 10 | 0.8 | 0 |
| Textile | 10.3 | 0 | 20 | 2.9 | 0 |
| chemicals | 9.7 | 0 | 20 | 9.3 | 0 |
| petroleum | 5.8 | 0 | 10 | 0.1 | 0 |
| Metals | 9.1 | 0.3 | 20 | 11.0 | 2.5 |
| Fishes | 10.4 | 0 | 20 | 0.3 | 0 |
| Agriculture items | 12.9 | 0 | 20 | 1.8 | 0 |
| Cotton | 10 | 0 | 10 | 0 | 0 |
| Fats and oil | 8.2 | 0 | 20 | 2.6 | 0 |
| Drinks | 15.8 | 0 | 20 | 8.3 | 0 |
| Cigarettes | 15.8 | 0 | 10 | 8.3 | 0 |
| Sugar | 5.0 | 0 | 5 | 1.5 | 0 |
| Oilseeds | 8.2 | 0 | 20 | 2.6 | 0 |
| Coffee | 11.5 | 0 | 20 | 14.1 | 22.8 |
| Cereals | 8.2 | 1.1 | 20 | 0.4 | 0 |
| Tea | 11.5 | 0 | 20 | 14.1 | 22.8 |
| Fruits | 12.4 | 0 | 20 | 3.1 | 0 |
| Vegetables | 12.4 | 0 | 20 | 3.1 | 0 |
| Animal items | 9.5 | 0 | 20 | 4.8 | 0 |
| Dairy items | 4.0 | 19.8 | 5 | 2.8 | 7.9 |
Requirements
All products reaching STP must be accompanied by a contract of carriage and a delivery note. For agricultural goods, particularly beef, and poultry, import authorization, as well as hygienic and phytosanitary clearances, are necessary. For dangerous materials including guns, grenades, and industrial chemicals, licenses must also be given. For other things, STP does not demand a license.
Restrictions on Imports in STP
Imports are not prohibited or subject to limitations. However, some goods require a permit from the relevant administration. For example, the Administration of Forestry must approve the use of a chainsaw, while the Department of Poultry must approve the import of pigs.
