Maldives Customs Service has stated businesses can save over USD 11 million annually following the amendments made to the Import-Export Act of the Maldives.
Speaking on a programme aired on PSM News, Senior Superintendent Ahmed Niyaz said hereafter duty will be collected from Free on Board (FOB) value, adding previously the duty was collected from Cost, Insurance, and Freight (CIF) value. Niyaz revealed the allocation to collect duty from FOB value rather than CIF value will reduce the expenditure on duty and enable to save up to USD 11.55 million annually. He added businesses can now purchase and receive goods at a lower price which in turn will reduce the prices the goods are sold in the market.
President Ibrahim Mohamed Solih ratified the 17th Amendment to the Import Export Act of the Maldives on July 23 after it was passed by the Parliament of the Maldives on July 15. Following the ratification of the amendment, no export duty can be taken from any good which is not listed under the Section 3 of the act. Moreover, a 50% of export duty from the FOB price will be charged from ambergris and a 5% royalty will be charged from the FOB price of goods re-exported for business.
The changes also include a 50% waiver on import duties on all goods, excluding those listed in the Section 7 of the act, imported to any formal seaport or airport apart from ports in the Greater Male' Region. Also, a revenue fee of USD 0.065 from every USD 6.5 will be charged by the government from the price Customs allocates for all the goods imported, exported, or re-exported from the Maldives.
The act also mandates that 3% of the proceeds from the import-duty imposed on tobacco and cigarettes, go to the public health fund to carry out anti-tobacco public awareness campaigns under the Public Health Protection Act. Also starting from January 1, 2021, import of any goods declared by the president to be classified as single-use plastic, will be prohibited under Section 7 of the act.