CHANGES TO THE CUSTOMS AND EXCISE (TARIFFS) ORDER  FOR 2010/11 FINANCIAL YEAR

 The Malawi Revenue Authority is pleased to publish new Customs and Excise Measures for the 2010/11 fiscal year as presented by the Minister of Finance in the budget statement in Parliament on 28^th May, 2008. The Customs and Excise changes were with effect from midnight 28^th May, 2010.

 The amendments to the Customs and Excise (Tariffs) Order are as follows:

1.   Removal of import duty on raw materials of HS Chapter 28 and Chapter 29 in line with Common Market for Eastern and Southern Africa (COMESA) Customs Union and the Southern Africa Development Community (SADC) Free Trade Area (FTA).

2.  Removal of import duty on electric motors, generators and transformers

3.  Removal of import duty on thermometers and thermostats

4.  Removal of import duty on energy saver bulbs and introduction of 100% excise duty on ordinary bulbs

5.  Increase import duty on intermediate products to 15% and 10% in line with COMESA Customs  Union and SADC Free Trade Area (FTA)

6.  Increase excise duty on soft cap cigarettes to K2,250 or US$15 equivalent per 1000 cigarettes

7.   Increase excise duty on hinge cap cigarettes to K4,500 or US$30 equivalent per 1000 cigarettes  

8.   Increase import duty on mineral and aerated water to 25% and 30%

9.   Increase import duty on soft drinks to 30% and 25%

10. Increase import duty on printing inks to 15% and 10%

11. Increase import duty on conveyor and transmission belts to 15% and 10%

12. Increase import duty on news print to 15% and 10%

13. Increase import duty on sewing threads to 15% and 10%

14. Increase import duty on bars, rods, sections, wire, plates and nails to15% and 10%

15. Increase import duty on hand tools to15% and 10%

16. Increase import duty on fuses to 15% and 10%

17. Increase import duty on parts and accessories of bicycles to 15% and 10%

18. Increase excise duty on furniture from 10% to 25%

19. Increase excise duty from 75% to 85% on spirits and clear beer and from 25% to 30% on opaque beer

20. Introduction of 20% excise duty on big buses (over 45 seats)

21. Introduction of import duty on projection screens to 15% and 10%

22. Introduction of additional 20% excise duty on passenger carrying motor vehicles aged 8 years but not exceeding 12 years of age.

23. Introduction of additional 50% excise duty on passenger carrying motor vehicles exceeding 12 years of age.

24. Introduction of 20% excise duty on goods carrying motor vehicles aged 15 years and over. This rate is applicable to vehicles carrying 10 tonnes and above. 

25. Introduction of 25% excise duty on ball point pens

26. Introduction of 10% excise duty on mineral water and aerated waters

27. Introduction of 35% excise duty on fireworks.

28. Introduction of 50% excise duty on matches

29. Introduction of 30% excise duty on dry cell batteries

30. Introduction of 25% excise duty on retreaded and used tyres

31. Introduction of 20% excise duty on vehicles imported by car hire operators under CPC 4000.443. This rate will be applied on the existing concessary rate of 10% import duty and 16.5% VAT

32. Introduction of tax stamps scheme on imported cigarettes

33. Listing of specified goods to be accepted under the CPC 4000.446 and 4071.446 for direct use in irrigation.

34. Listing of specified goods for direct use in the production of horticultural produce intended for export under CPC 4000.448 and 4071.448

35. Amendments to CPC 4000.488 and 4071.488 to allow duty exemption on specified goods for use in water supply imported directly by water boards

36. Amendments to CPC 4000.489 and 4071.489 to allow duty exemption on specified goods for use in electricity generation and distribution directly imported by Elecricity Supply Corporation of Malawi (ESCOM)

 37. Review of the Industrial Rebate Scheme

38. Removal of duty exemptions for goods for the mining industry under Customs Procedure Codes 4000.481 and 4071.481

39. Removal of duty exemptions of building materials under the following Customs Procedure Codes: -

i) 4000.422 and 4071.422 for churches and church development projects

ii) 4000.442 and 4071.442 for hotels, lodges and inns

iii) 4000.425 and 4071.425 for the construction of factories and adjoining warehouses

For further clarification please contact Mr. Steven Kapoloma on 0888 986 200 and Mr. Edwin Starch on 0888 952 139.

L. A. MUHARA

COMMISSIONER GENERAL