MALDIVES Law and Practice Contributed by: Hassan Maaz Shareef, Aminath Amathulla, Aishath Shifala, Mohamed Azmee, Nazahath Ahmed, Maaisha Mohamed Musthafa, Aifa Shareef and Noorul Hudha Ahmed, Premier Chambers LLP
5.8 Tariffs Tariffs in the Maldives are governed by the Export Import Act (Law 31/1979) (the “Export Import Act”), which is implemented and enforced by the Maldives Customs Service. Tariff rates are generally applied uni - formly based on the type of goods, while preferential rates and exemptions may apply to some countries under free trade agreements (FTAs). The tariff rates in the Maldives generally range from 0% to 400%. Goods and Applicable Tariffs A general list of goods subject to the highest tariff rates is as follows. • Tobacco and related products: (a) general tobacco and tobacco products: 200%; (b) cigarettes: 50% + MVR8 per cigarette; (c) Bidi (traditional cigarettes): 50% + MVR8 per Bidi; (d) flavoured chemicals for e-cigarettes and to - bacco: 50% + MVR8 per ml; (e) heated tobacco products and sticks: 50% + MVR8 per stick; (f) electronic devices (e-cigarettes, vaping devices, tobacco heating products): 200%; and (g) paper used for rolling cigarettes/bidis: 200%. • Other products: (a) non-biodegradable plastic bags and sacks: 400%; (b) drinking straws: 400%; (c) single-use/disposable plastic items (eg, plates, cutlery): 200%; (d) used passenger vehicles (cars, jeeps, vans): 200%; (e) other passenger transport vehicles (excluding cars, jeeps, vans, motorcycles, auto-cycles): 150%; (f) chemicals with hydrochlorofluorocarbons: 100%; (g) new passenger vehicles (cars, jeeps, vans): 100%; (h) auto-cycles and motorcycles: 100%; and (i) pork and pork products: 50%. Value-Based Tariff Rates Notwithstanding the general rates specified in the Export-Import Act, for goods with a CIF value per unit
exceeding MVR6,425,000, the following tiered rates apply: • CIF value per unit between MVR6,425,000 and MVR12,850,000: 13%; • CIF value per unit between MVR12,850,000 and MVR25,700,000: 7%; • CIF value per unit between MVR25,700,000 and MVR38,550,000: 5%; and • CIF value per unit between MVR38,550,000: 4%. General Exemptions The following items are exempt from tariffs: • personal items and duty-free allowances deter - mined by the President; • goods imported for re-export; • biodegradable and non-biodegradable variants of plastic bags, sacks, films, sheets, tube rolls, polyu - rethane, prefabricated greenhouse units, water system pipes and hydroponic/drip irrigation pipes; • renewable energy vehicles, machinery and equip - ment; • renewable energy generation equipment; • items and fish imported for fish processing and value addition; • items and raw materials for poultry production expansion; • agricultural items listed by the Ministry of Agricul - ture and Animal Welfare of the Maldives; and • diesel exemptions for fishing vessels operating within Maldivian waters and for electricity genera - tion by registered public utilities. Partial Exemptions Under the Export and Import Act, a duty exemption of 50% is granted for items imported via regional sea and air ports outside the Malé area, except for: • tobacco products and substitutes (including e-cigarettes and components); • alcoholic beverages; and • pork and products containing pork. This partial exemption under the Export and Import Act only applies to goods stored on or cleared through the regional port’s associated island.
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