new measures in favor of economic sovereignty

In its present version, the draft finance law (PLF) 2023 proposes a set of customs revisions originating in the particularity of the world economic situation, but also in Morocco’s commitments in the realization of its economic sovereignty.

Improving access to medicines, consolidating the industry or even reducing production costs are, among other things, issues that animate the spirit of this bill in its section relating in particular to import duties (DI ).

Moreover, some of these new measures would be able to generate additional revenue for the State budget. Revenue from import duties amounting to more than 14.84 billion dirhams (MMDH), against 11.83 billion dirhams in 2022, an increase of 25.51%.

Customs duties on certain medicines, a flagship restructuring

In its current state, Chapter 30 reserved for pharmaceutical products is characterized by a complex structure and by a disparity in rates ranging from 2.5% to 40% as well as the existence of several inconsistencies and tariff distortions, we note in the PLF 2023 presentation note.

The proposed restructuring thus aims to revise the import duty applied to certain finished products in relation to those applied to the inputs used in their manufacture. It also tends to support national strategies aimed at improving citizens’ access to these products, supporting national industry and, in general, achieving pharmaceutical sovereignty and safety.

Substantiation of tariff heading 34.02

Tariff heading 34.02 currently covers surface-active preparations, washing preparations and cleaning preparations. Examination of this position reveals the absence of a tariff position dedicated to cleaning preparations, underlines the PLF.

Also, and in the absence of such a subheading, the PLF proposes to create, within the nomenclature, a specific tariff line accompanied by a DI rate of 40% for the aforementioned products.

Duplex paper: reduce DI to support the packaging industry

In order to support the packaging sector which suffers from a great lack of raw materials, both at national level and on the international market, it is proposed to reduce the DI from 17.5% to 10% for the duplex paper through its specialization in the tariff of customs duties.

Unroasted coffee: a reduction in DI is possible

This measure aims to reduce the import duty applicable to unroasted coffee which is used as an input for the production of freeze-dried coffee. This tariff reduction from 10% to 2.5% is likely to reduce the cost of production of the finished product, the majority of imports of which benefit from an exemption from the DI under the preferential regime.

Filters for vehicles: Reduction of DI applied to inputs

This measure is intended to encourage and support the local production of filters for vehicles in order to face competition from filters imported free of import duty under free trade agreements and to reduce the cost of production of these products and this, through the reduction of the rate of import duty from 40% to 17.5% for metal components and rubber seals used in the manufacture of these filters, and from 40% and 17.5% to 2 5% for the paper used as an input in the manufacture of filters for vehicles, subject to their specialization in the tariff of customs duties.

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