Extension of the Freight Rebate Scheme to Africa
The Freight Rebate Scheme for exports to Africa is in operation since 1st June 2014 and it is funded by the Ministry of Finance, Economic Planning and Development. The scheme is implemented and managed by the Economic Development Board (EDB) Mauritius. Exporters are refunded 25% of the basic ocean freight costs for exports to Africa, Madagascar, Seychelles, Comoros Island, and Reunion Island for container types 20ft, 40ft, and Less Container Load (LCL/Groupage) as per the Terms & Conditions.
Budget measures 2020-2021
As per Budget 2020-2021, the scheme is maintained with the existing eligible ports, effective for exports from 1st July 2020 under the same Terms & Conditions.
COVID-19- Plan de Soutien aux Entreprises, 13th March 2020
The Scheme has been extended to Madagascar – Port of Toamasina (Tamatave) and South Africa and will be effective for exports from 23rd March 2020 to 31st Dec 2020 under the “Plan de Soutien aux Entreprises” to mitigate the adverse impact of the pandemic virus COVID-19.
An outline of the conditions and modalities of the scheme is being provided below to guide applicants.
1.0 Eligible Countries and 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]
- Djibouti- 1 Port [Port of Djibouti]
- 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 – 4 Ports [Mahajanga, Fort Dauphin, Tulear, Port of Toamasina (23 Mar to 31 Dec20)]
- 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 [Pointe des Galets (Le Port), Port Est, Port of Saint Denis, Port of Saint Pierre]
- Senegal-1 Port [Dakar]
- Seychelles - 1 Port [Port Victoria]
- South Africa – 4 Ports [Cape Town, Durban, Coega, Port Elizabeth] 23 Mar to 31 Dec 20
- Tanzania –4 Ports [Dar Es Salaam, Mtwara, Tanga, Zanzibar]
Click here to download the list of Eligible Countries and Ports
1.1 Eligible Landlocked Countries
Exports to 12 landlocked countries (Botswana, Burkina Faso, Burundi, Lesotho, Malawi, Mali, Niger, Rwanda, Swaziland, Uganda, Zambia, Zimbabwe) are eligible under the Freight Rebate Scheme from port to port freight only.
Click here to download the list of Landlocked Countries and Ports of Discharge.
2.0 Eligible Beneficiaries
(i) Exporters of goods produced/manufactured in Mauritius; and
(ii) Freeport operators exporting goods locally manufactured or goods manufactured in the Freeport Zones;
3.0 Eligible Products
- 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.
4.0 Amount of Rebate:
- 25% of Ocean Freight Cost* per 20-feet container up to the maximum of USD 300
- 25% of Ocean Freight Cost* per 40-feet container up to the maximum of USD 600
- 25 % of Ocean Freight Cost* for exports for Less Container Load (LCL/Groupage)
*Note: Rebate will apply on basic Ocean Freight Cost including (a) BAF (Bunker Adjustment Factor/Environmental Fuel Fee/Low Sulphur Surcharge IMO 2020), (b) Liner out Charges, but excluding all charges relating to Handling, Documentation, Stevedoring, and other associated Charges.
5.0 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.
Click here to download Registration Form.
5.2 Claim Form
Application for Rebate to be submitted in the prescribed CLAIM FORM* together with the following copy of supporting documents:
- Bill of Lading
- Commercial Invoice
- MRA Custom Declaration Form (Bill of Entry)
- Certified Invoice (Costs breakdown) from Freight Forwarding Agent
- Receipt of Payment from Freight Forwarding Agent
- Certificate of Origin (EUR1, IOC, COMESA or SADC)
- Written statement on process of manufacture and % of value addition certified by a registered accountant (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 a Certificate of Origin.
- Written statement from Exporter on source of goods exported and relevant supporting documentary evidence -This applies to non-manufacturing exporters.
Click here to download Claim Form.
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.
5.3 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.
For any additional details you may contact Mr Pravin Soburrun on 2033825 or Mrs Reshma Napaul on 2032446.