Freight Rebate Scheme for exports to Africa, Madagascar and Reunion
Exporters are informed that, as announced in Budget 2014, they may apply for a refund of 25% of the Basic Freight Cost to the maximum of USD 300 per 20-feet container and USD 600 per 40 –feet container exported to eligible Ports in Africa, Madagascar and Reunion Island (see 1.0). An outline of the conditions and modalities of the scheme is being provided to guide applicants.
1.0 Countries and Ports to which Scheme will apply.
The scheme would apply to the following main 45 ports:
- Angola-3 Ports (Lobito, Luanda, Soyo)
- Cameroon-1 Port (Douala)
- Comoros Island-3 Ports (Moroni, Port of Mutsamudu, Fomboni)
- Congo (Brazzaville)-1 Port (Pointe Noire)
- Egypt-3 Ports (Alexandria, Damietta, Port Said)
- Gabon-2 Ports (Libreville, Port Gentil)
- Ghana – 1 Port (Tema)
- Ivory Coast (Cote D’Ivoire) - 1 Port (Abidjan)
- Kenya-1 Port (Mombasa)
- Madagascar – 3 Ports (Mahajanga, Fort Dauphin, Tulear) *
- Mayotte – 2 Ports (Longoni, Dzaoudzi)
- Morocco – 3 Ports (Agadir, Casablanca, Ceuta)
- Mozambique-3 Ports (Beira, Maputo, Nacala)
- Nigeria – 5 Ports (Calabar, Lagos-Apapa, Port Harcourt, Warri, Onne Seaport)
- Reunion - 4 Ports (Port Ouest (Le Port) /Point des Galets, Port Est, Port of Saint-Denis, Port of Saint-Pierre)
- Senegal-1 Port (Dakar)
- Seychelles - 1 Port (Port Victoria)
- Tanzania –4 Ports (Dar es Salaam, Mtwara, Tanga, Zanzibar)
Note : South Africa – 3 Ports (Cape Town, Durban, Coega) - Eligible only for Landlocked Countries
See Annex 1 for the List of Eligible Ports.
1.1 Landlocked Countries
- Export to 12 landlocked countries (Botswana, Burkina Faso, Burundi, Lesotho, Malawi, Mali, Niger, Rwanda, Swaziland, Uganda, Zambia, Zimbabwe) is eligible to the Freight Rebate Scheme from port to port freight only.
- The three South African Ports: (i) Cape Town, (ii) Durban and (iii) Coega will be eligible for refund under the scheme only for export to landlocked countries. Direct export to South Africa will not be eligible.
See Annex 2 for the list of Landlocked Countries and Ports of Discharge.
(i) Exporters of goods produced/manufactured in Mauritius; and
(ii) Freeport operators exporting goods locally manufactured or goods manufactured in the Freeport Zones;
2.1 Categories of goods eligible for rebate:
- Goods that are wholly grown or produced in Mauritius.
- Goods that are exported under an IOC, COMESA, SADC, and EUR1 certificate of origin.
- All other goods exported that have been locally manufactured/produced in Mauritius, including those manufactured/processed in a Freeport Zone, wholly or partially from imported materials by a process of manufacture/production:
- i) resulting in a change in tariff classification (either Change-in-Tariff Heading or Change-in-Tariff Sub-Heading); or
- ii) Involving a value addition of not less than 20% of the ex-works costs (excluding profit) of the finished goods.
Important Note: It should be noted that products falling under category 3 above which have undergone the following ‘minimal processes’ would not qualify under this scheme:
- Operations to ensure the preservation of products in good condition during transport and storage;
- Simple operations* consisting of removal of dust, sifting or screening, sorting, classifying, matching, washing, painting and cutting up;
- Changes of packing and breaking up and assembly of consignment; simple bottling and packing operations;
- Affixing of marks and labels;
- A combination of two or more operations specified above; and
- Slaughter of animals.
*Note: Simple operations mean operations where neither special skills nor machines, apparatuses or tools especially produced or installed for those operations are required for their performance.
2.2 Shipping Time
As time to destination is a critical element in the success of the Scheme, the maximum Transit Time from Port to Port to destinations will vary and has been reviewed as per new schedule 2017.
See Annex 3 for the revised Transit Time.
3.0 Amount of Rebate:
- 25% of freight cost* per 20-feet container up to the maximum of USD 300.
- 25% of freight cost* per 40-feet container up to the maximum of USD 600.
- 25 % of Freight cost* for Export under “Groupage” on a pro-rata basis.
*Rebate will apply on Basic Freight Cost including (a) BAF (Bunker Adjustment Factor), (b) Liner out Charges, but excluding all charges relating to Handling, Documentation, Stevedoring, and other associated Charges.
4.0 Application for Rebate
Companies must register themselves once and submit the Registration Form together with copy of (1) Certificate of Incorporation, (2) Business Registration Card, (3) VAT Certificate of Registration for approval
4.2 Claim Form
Application for Rebate to be submitted in the prescribed Claim Form together with the following supporting documents:
- Copy of Bill of Lading;
- Copy of Commercial Invoice;
- Copy of Export Declaration;
- Certified copies of Invoices (Costs breakdown) & Receipts of payments from Shipping Agent;
- Written statement from exporter on source of goods exported and any other supporting documentary evidence (for Wholly grown or Produced; or)
- Copy of certificate of origin (for Exported under EUR1, IOC, COMESA or SADC); or
- Written statement on process of manufacture and certificate from a qualified accountant on breakdown on and % of value addition (for Locally Manufactured or Processed (i) resulting in Change in tariff or Sub heading or (ii) Value Addition)
(This applies for products not wholly produced or processed and those not accompanied by Certificate of Origin).
*Prescribed forms can be downloaded from Website: http://www.edbmauritius.org/schemes/freight-rebate-scheme/
Registration and Claim Forms to be submitted to the Economic Development Board (EDB) Mauritius, 10th Floor, One Cathedral Square Building, 16 Jules Koenig Street, Port Louis 11328.
4.3 Time Limit for Submission of Claim
Claim to be submitted within nine months from the date of shipment.
The Economic Development Board (EDB) Mauritius reserves the right to exercise control post disbursement of fund and in case any fraudulent declaration is detected the following may apply:
1) The company will not be eligible for any future rebate, and
2) Legal action will be undertaken to recover the amount refunded and may be also liable to prosecution.