Legal Framework on Import of Machinery, Equipment, and Technology for Mining Operations in
Mozambique
1. Customs Regulations:
a. Mining Rights Holders: - Holders of mining rights enjoy customs exemptions on imports of machinery,
equipment, and other goods specifically for mining operations. - For goods not intended for use in mineral
operations, the general customs regime applies.
b. Customs Duties Calculation: - Customs duties are calculated based on the Customs Classification of
Goods under the Customs Tariff Schedule. - Values stated in foreign currency must be converted into the
local currency (metical). - The customs value considers transportation costs, maneuvering costs, and
insurance of goods.
c. WTO Customs Valuation Agreement: - Mozambique adopted the World Trade Organization's Customs
Valuation Agreement in 2002. - Customs valuation is based on the General Agreement on Tariffs and Trade.
2. Employment of Expatriate Personnel:
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Foreign employees can work in Mozambique under an employment contract governed by
Mozambican law.
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Regulations on the Hiring of Expatriates for the Petroleum and Mining Sectors apply.
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Quota regime for hiring foreigners is defined by the Ministry of Labour.
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Mining contracts may authorize hiring more foreigners than general quotas.
3. Sale, Import, and Export of Minerals:
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Mineral products are subject to a special export customs regime.
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Export of mineral samples is allowed for prospecting and exploration license holders.
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Mining title holders can market and process minerals in their respective areas.
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Licensing by MIREME is required for entities without a mining title for the sale, import, and export
of minerals.
4. Foreign Investment:
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Foreign investors enjoy guarantees under the Mining Law, including legal protection and limitations
on public expropriation.
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Qualifying operations for foreign direct investment include acquisitions, equipment imports,
national direct investment, technology rights, and geological studies.
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Tax advantages and incentives are provided for mining projects, including exemptions from customs
duties on imported equipment.
5. Tax Advantages and Incentives:
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Mining projects are exempt from customs duties on imported equipment for the prospecting,
exploration, and mining/production phases.
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Exemption from VAT on settled invoices at the production stage if exports exceed 75% of the annual
turnover.
6. Importation of Services and Equipment:
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No specific restrictions on the importation of services and equipment, but customs duties
exemptions are subject to the absence of comparable local manufacturing.
7. Funds for Exploration and Extraction:
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The State guarantees mining license holders' right to export and repatriate profits, subject to
foreign exchange regulations.
•
Import of funds and repatriation of proceeds qualify as foreign exchange operations, requiring
Central Bank approval or registration.
This legal framework provides a comprehensive overview of the regulations governing the import of
machinery, equipment, and technology for mining operations in Mozambique.
Presentation
Basically, we provided a legal framework concerning the import of machineries, equipment and
technologies in Mozambique which is structured around five pillars: First of all, all the goods imported into
Mozambican territory are subject to the payment of customs duties set in the Customs Tariff Book, which
include ad valorem charges, service charges, Specific Consumption Tax and Value-Added Tax. Exemption
over the first 5 years from customs duties and VAT on importation of equipment related to prospecting,
research and mining exploration. Regarding the technology neutrality, custom Duties exemption are only
valid for machineries and equipment not directly made or assembled in Mozambique. For environmental
regulation, no emission-related laws apply on machineries, equipment and technologies imported in
Mozambique. Imported machineries must be supported by the following documentation: • Machinery’s
Description • Declaration of Conformity • Technical Documentation • Risk Assessment. And for customs
supervisions, goods brought into the customs territory are subject to customs supervision until the
administrative process is completed.
Regarding the government support, there are four key points:
To begin, Canadian company takes the lead in constructing essential infrastructure like access roads and
airstrips. Seeks cooperation from the government for necessary assistance, guidance, and regulatory
support. Emphasizes the importance of collaboration to navigate regulatory hurdles and ensure
construction aligns with local standards. Regarding the logistical support, - Government assistance for
logistic, construction materials, equipment, and personnel to the exploration site, - Support for the safe and
efficient movement of heavy duty vehicles in challenging desert terrain. - Need for obtaining a geological
map and preliminary terrain analysis for the research site. - Planning safe routes and addressing potential
obstacles or hazards. - Ensure secure transportation of construction materials and equipment to the mining
site. There are also some points about the emergency response panning, such as: - Recognize the isolated
nature of the desert area, emphasizing the need for a comprehensive emergency response plan. - Highlight
the importance of developing this plan in collaboration with government authorities. - Specify that the plan
should outline procedures for medical emergencies, natural disasters, and unforeseen events. - Emphasize
the ultimate goal of ensuring the safety and wellbeing of all parties involved in the exploration site. And to
end, the community engagement includes: - Engagement initiatives with locals, including consultations with
communities regarding the exploration project. - Addressing concerns and expectations raised by local
communities. - Relationships with the local population for social sustainability. - Government assistance in
ensuring the safety of personnel and locals. - Risks for individuals entering the mining area inadvertently. Common effort in implementing security measures.
Rewritten
We provided a comprehensive legal framework designed to facilitate the importation of machineries,
equipment, and technologies into Mozambique. This framework is built on five pivotal pillars, each
addressing a crucial aspect of the import process and establishing a foundation for collaboration between a
Canadian company and the Mozambican government.
Navigating Customs and Import Duties:
In essence, all goods entering Mozambican territory are subject to customs duties as defined in the Customs
Tariff Book. This includes ad valorem charges, service charges, Specific Consumption Tax, and Value-Added
Tax. However, a notable exemption exists for the initial five years, encompassing customs duties and VAT on
the importation of equipment associated with prospecting, research, and mining exploration.
It's important to note that this exemption is contingent upon the technology neutrality principle. Simply
put, the exemption applies only to machineries and equipment not directly made or assembled within
Mozambique. Additionally, there are no emission-related laws that apply to the imported machineries,
equipment, and technologies.
To facilitate a smooth process, certain documentation is required, including a detailed machinery
description, Declaration of Conformity, Technical Documentation, and a Risk Assessment. Customs
supervision remains in effect until the administrative process is completed.
Government Support:
Moving beyond the legal framework, government support plays a primary role in ensuring the success of
exploration efforts. The Canadian company takes the lead in constructing essential infrastructure, such as
access roads and airstrips. Simultaneously, cooperation and assistance from the government are sought to
navigate regulatory challenges effectively.
Logistical support is another key aspect, encompassing government assistance for logistics, construction
materials, equipment, and personnel to the exploration site. This includes support for the safe movement of
heavy-duty vehicles in challenging desert terrain. The acquisition of geological maps and a preliminary
terrain analysis further enhances the planning process for exploration sites.
Emergency response planning is given due consideration, recognizing the isolated nature of the desert area.
A collaborative effort with government authorities is emphasized to develop comprehensive procedures for
medical emergencies, natural disasters, and unforeseen events, ultimately prioritizing the safety and
wellbeing of all involved parties.
Engaging with Local Communities:
A critical component of any exploration project is community engagement. The Canadian company
undertakes initiatives to engage with local communities, seeking their input and addressing concerns and
expectations. Building relationships with the local population ensures social sustainability, with a focus on
safety measures to mitigate risks for both personnel and locals inadvertently entering the mining area.
Conclusion:
In conclusion, this comprehensive framework sets the stage for a mutually beneficial partnership between
the Canadian company and the Mozambican government. By navigating legal intricacies, securing
government support, and actively engaging with local communities, we aim to foster collaborative progress
and ensure the success and sustainability of exploration efforts in Mozambique. Thank you for your
attention.