VI. TRADE REGULATIONS AND STANDARDS

TARIFFS AND IMPORT TAXES

There are three kinds of taxes levied on imports:
     a. Import taxes, five to forty percent.
     b. Customs fees, exempt to forty percent.
     c. Transactions taxes, exempt to 150 percent.


CUSTOMS VALUATION

Imports are valued on c.i.f. basis.

IMPORT LICENSES

Import licenses from appropriate ministries are needed for
certain items which the government of Madagascar considers
"strategic," such as guns, explosives, precious stones, and
radioactive materials.

EXPORT CONTROLS

Export licenses must be obtained for certain "endangered" items
specified by the Convention on International Trade in Endangered
Species (CITES), such as crocodiles and crocodile skin products,
live reptiles, and precious woods.  Export controls on vanilla
were lifted in May 1994.

Export duties, from one to twenty-five percent, are levied on the
f.o.b. value of exports.  Only shellfish and chrome are exempt.

IMPORT/EXPORT DOCUMENTATION

IMPORTS:
-Commercial Invoice
-Bill of Lading or Air Waybill
-Insurance Certificate
-Packing List
-Import Declaration
-Certificate of Origin
-Report of VERITAS inspection for quality and quantity control at
 port of embarkation.

In addition the Malagasy importer is required to submit a "Fiche
Statistique d'Importation" accompanied by proforma or final
invoice to their primary commercial bank, with a copy to the
Ministry of Commerce.

EXPORTS:
-Commercial Invoice
-Bill of Lading or Airway bill
-Insurance Certificate
-Certificate of Origin
-Phytosanitary Certificate, for some items
-Commitment to repatriate foreign exchange earnings
-Packing List
-Export Declaration
-Customs Declaration
-Analysis of Quality certificate for exports of vanilla, coffee,
 fish and meat products.

TEMPORARY ENTRY

Personal effects of diplomats and employees of international
organizations and institutions with diplomatic privileges are not
subject to import taxes upon entry.  However all taxes must be
paid on personal effects sold in country to those without duty-
free status.

Temporary entry is granted to any items or products used within
the Free Trade Zones.

LABELING, MARKING REQUIREMENTS

Madagascar adheres to international labeling and marking
standards, though there is no enforcement.

PROHIBITED IMPORTS

Imports of pornographic material are prohibited.  Refer to
"Tariffs and Import Taxes" section for restricted imports.

STANDARDS

The Ministry of Commerce is working on developing a
comprehensive, enforceable system of standards.  None is
currently in use.

FREE TRADE ZONES/WAREHOUSES

Firms operating in the Free Trade Zone are eligible for exemption
from all import taxes, but are subject to forty-five percent
corporate taxes.

SPECIAL IMPORT PROVISIONS

Import duties are not required for the following items:

-Non-commercial parcels sent by postal packet, parcel post, or by
 air, when no import declaration is entered;

-Commercial consignments sent by postal packet, parcel post, or
 by air;

-Personal effects of tourists;

-Books, publications, and documents referred to in Annex A of the
 UNESCO Agreement.

MEMBERSHIP IN FREE TRADE ARRANGEMENTS

A.  Madagascar is a signatory to the following international
    trade agreements:

          -1964: United Nations Convention on Trade And
                 Development (UNCTAD)
          -1994: World Trade Organization (WTO), and formerly
                 General Agreement on Trade and Tariffs  (GATT)
          -1990: Lome IV, between the European Union and ACP
                 countries.
          -1993: Preferential Exchange Zone (Zone d'Echanges
                 Preferentiels-ZEP) for Eastern Africa and Australia
                 (Marche Commun de l'Afrique de l'Est- COMESA).

B.  Madagascar has bilateral Commercial Agreements with Mauritius
    and Seychelles.