MOZAMBIQUE Law and Practice Contributed by: José Miguel Oliveira, Kenny Laisse and Caio de Mello Ferreira, VdA
The following set of requirements must be met for the review and confirmation of a foreign judgment, as set out by Article 1096 of the Civil Procedure Code: • there are no doubts as to the authenticity of the judgment and the intelligibility of its decision; • it must have become a final decision (not subject to appeal) according to the law of the country where the judgment was issued; • it comes from a foreign court whose jurisdiction has not been fraudulently acquired and it does not concern a matter of exclusive jurisdiction of the Mozambican courts; • there is no case pending or decided before a Mozambican court, unless the foreign court has prevented jurisdiction; • the defendant has been duly summoned to the proceedings, in accordance with the law of the country of the court of origin, and the principles of adversarial proceedings and equality of the parties have been observed; and • it does not contain a decision whose recognition would lead to a result manifestly incompatible with the principles of international public policy or inter - national private law of Mozambique. Under domestic law, the grounds for refusing the enforcement of an arbitral award are the same as those set forth for the enforcement of court decisions, which are wider than those of the New York Conven - tion. 7.4 Arrest of Vessels Subject to Foreign Arbitration or Jurisdiction In accordance with Articles 2, 4 and 8 of the Brussels Convention, Mozambican courts may order the arrest of a vessel in respect of any maritime claim. However, pursuant to Article 7 (3) and (4) of the Brussels Con - vention, if the parties have agreed on submitting the dispute to a different jurisdiction or to arbitration, the Mozambican court may fix the time within which the claimant should commence the main proceedings. If the action or proceedings are not brought within the time so fixed, the defendant may apply for the release of the vessel or of the bail or other security. Outside the scope of the Brussels Convention, Mozambican courts will also accept the arrest in respect of claims
subject to foreign arbitration or jurisdiction clauses where the vessel is within their territorial jurisdiction. 7.5 Domestic Arbitration Institutes Currently, there is no domestic arbitration institution that specialises in maritime claims active in Mozam - bique. Hence, in such matters general arbitral bodies will be competent, governed by Law 11/99. 7.6 Remedies Where Proceedings Are Commenced in Breach of Foreign Jurisdiction or Arbitration Clauses In the event of a breach of foreign jurisdiction or arbitration clauses, the defendant must invoke such before the court that lacks jurisdiction and ask for the claim to be dismissed. 8. Ship-Owners’ Income Tax Relief 8.1 Exemptions or Tax Reliefs on the Income of Ship-Owners’ Companies Companies incorporated in Mozambique will be sub - ject to the general taxation regime set forth for other companies incorporated or with a permanent estab - lishment in the country – ie, they will be subject to 32% corporate income tax on their taxable profits. This notwithstanding, according to the Code of Fis - cal Benefits, tax benefits and reliefs may be granted to holders of investment projects approved under the Investment Law. Non-resident shipping companies that obtain income from chartering vessels for fishing or cabotage activities are subject to a reduced 10% withholding rate (the general rate is 20%, if a double tax treaty is not applicable). 9. Implications of Non-Performance, IMO 2020, Trade Sanctions and International Conflict 9.1 Force Majeure and Frustration If the parties have not included force majeure or hard - ship clauses in their contracts, it is particularly impor - tant to take into consideration the general Mozam - bican legislation, namely the provisions of the Civil Code regarding abnormal changes in circumstances
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