Newly ratified amendment to Export-Import Act introduces 50 percent waive on import duties through two regional ports

The 17th amendment bill to the Export-Import Act of the Maldives has been ratified.

President Ibrahim Mohamed Solih ratified the 17th amendment to the act on Wednesday.

The People’s Majlis passed the amendment to the Export-Import Act on July 15, during the 20th sitting of its second session.

Upon ratification, the act has been publicized in the government gazette.

Following the ratification of the 17th amendment, export duties will not be taken from anything that is not listed under the third section of the Export-Import Act.

Any goods imported that are declared as single-use plastic by the president, will be prohibited under section 7 of the Export-Import Act, starting 1st January 2021.

Parliament in mid-2019 passed a resolution to ban single-use plastics in Maldives from 2025 onward, after students from a number of schools collectively submitted a proposal that details the dangers of single-use plastic.

In December 2018, the president launched a campaign to eliminate single-use plastic.

The amendment slashes duties on goods imported from the regional ports of southernmost Addu City and Kulhudhuffushi City by 50 percent. A 50 percent cut will also be applied to goods imported via regional international airports across the country.

In addition, a 50 percent export duty will be charged from the Freight on Board (FOB) price, from ambergris as well as a five percent royalty from FOB prices of goods re-exported for business.

The act further mandates that three percent of the proceeds from the import duty imposed on tobacco and cigarettes to go under the public health fund. These funds will be used to conduct anti-tobacco public awareness campaigns under the Public Health Protection Act.

The government is to charge a revenue fee of MVR one from every MVR 100 from the price Maldives Customs Service allocates for all imported and exported or re-exported goods, following the amendments.