VI. Trade Regulations and Standards

Import Tariffs

Imports are subject to a maximum tariff rate of 43 percent.
Certain products are also subject to a temporary additional duty
that can run as high as an additional 30 percent.  Goods are also
subject to a two dinar per declaration customs formality fee.
Certain imports are also liable to a value added tax (VAT) and a
consumption tax.  These taxes also apply to locally produced
items.  VAT rates run from 6 to 29 percent.  Consumption tax
rates can vary from 10 to as high as 500 percent.

Tunisia, as a member of the General Agreement on Tariffs and
Trade (GATT), is fully committed to a free trading regime.
Government officials have publicly and strongly supported GATT.
While maintaining restrictions on a limited number of what they
designated as strategic areas, the Tunisian government is
pursuing its program of freeing up imports.  Currently,
approximately 85 percent of Tunisian imports are unrestricted.
By the first trimester of 1995, this will rise to over 90
percent.  This represents a substantial increase over 1986 when
only 23.6 percent of imports could be freely imported.  Tunisia
has made substantial progress in liberalizing its trade regime.
This has been codified by the new foreign trade law, which will
come into effect on July 1, 1994.  The Tunisian government is
continuing to move positively in this direction.  Future polices
and agenda are expected to reinforce this trend.


Free Trade Zones

Tunisia has currently established two free trade zones, one in
the north at Bizerte and the other in the south at Zarzis.  The
land is state owned, but managed by a private company.  Companies
setting up in the free trade zones are free from most taxes and
customs duties and benefit from special tax rates.  Both zones
are due to become operational in late 1994.


Membership in Free Trade Agreements

Tunisia is a member of the Maghreb Union (Tunisia, Algeria,
Morocco, Mauritania, and Libya), which allows duty free trade
among members.  It also has an associate membership with the
European Union, allowing preferential access for most Tunisian
exports, with the exception of certain textile and agricultural
products.  Tunisia is negotiating a new economic agreement with
the European Union.