Budget Speech 2021/2022 – Better Together

Highlights : Port Sector & Blue Economy

OUTER ISLANDS

• The cost of freight between Mauritius and Rodrigues is being reduced by 20%.
• As regards Agalega, the new jetty and airstrip will be completed during the next financial year 2021/22. The improved air and sea connectivity will definitely boost up the socio-economic development of the population of Agalega.

FREEPORT ZONE

The Freeport Act will be amended to –

1. allow third-party freeport developers to provide space to an enterprise outside the Freeport zone for manufacturing and storage of goods;
2. introduce display showroom as an authorised freeport activity to allow freeport operators to promote and market their products to potential buyers; and
3. empower the MRA, in consultation with EDB, to extend the warehousing period of 24 months for goods imported into the freeport zone for a further maximum period of 36 months under such terms and conditions as MRA may determine.

FACILITATING TRADE

1. A Trusted Trader Programme will be introduced where importers with a good history of compliance will be able to register for a Certificate allowing them to import goods without the need for permits for each import.
2. Public Sector Agencies concerned with the Trusted Trader Programme are, namely, the (…) (x) Ministry of Blue Economy, Marine Resources, Fisheries and Shipping (…)

MARINE BIOTECHNOLOGY

The Mauritius Oceanography Institute will launch an expression of interest in collaboration with the EDB for strategic alliance in the field of marine exploration, characterisation and commercialisation. A partnership framework will be devised to ensure protection of Intellectual Property and genetic assets in Mauritius.

MERCHANT SHIPPING ACT

The Merchant Shipping Act will be amended to build resilience against potential maritime casualties.

EDB – EXPORT DEVELOPMENT CERTIFICATE INCENTIVES:

• 3% income tax on export of goods
• Freight Rebate Scheme
• Trade Promotion and Marketing Scheme
• Subsidy on the cost of Credit Guarantee Insurance Premium
• Preferential Port and Handling Charges

FISHERIES AND MARINE RESOURCES ACT:

It will be amended to –

1. provide for the implementation of resolutions adopted in international conservation and management organisations/agreements;
2. include penalties pertaining to offences committed in respect of different sections of the Fisheries and Marine Resources Act;
3. introduce measures and conditions on the exploration of untapped resources in the Exclusive Economic Zone of Mauritius through exploratory fishing; and
4. provide for registration of fiberglass vessels of 24 metres or more intended to be used for fishing and related activities.

TAX ADMINISTRATION: CUSTOMS ACT

1. Presently, a fee of Rs 300 is payable for amendments to be made to the aircraft/ship cargo manifest. This fee will not be applicable for amendments arising due to causes beyond the control of the master or agent of the aircraft or ship such as natural calamities.
2. MRA Customs will carry out the inspection of aircrafts/ships on a risk-management basis provided that the master/owner of the aircraft/ship has submitted all the required information in advance.
3. MRA Customs will be empowered to issue clearance to any departing aircraft/ship electronically with a view to reducing cost and dwell time.
4. Given that an increasing number of parcels of minimal value are being imported/exported by economic operators through post and courier services and it is an administrative hassle to make a Bill of Entry for each transaction, provision will be made to allow them to submit a consolidated Bill of Entry for such goods imported/exported by air during a month.
5. Provision will be made to allow electronic submission of bill of lading and other documents required for clearance of goods. (vi) Where an administrator, executor, receiver or liquidator is appointed to manage or wind up the business of a person transacting business with customs, he will have to inform MRA Customs of his appointment within 15 days.

LAW AND ORDER

Future investments include

• Replace the Coastal Surveillance Radar Systems; and
• Acquire: High Patrol Vessels for the National Coast Guard.

SMES AND COMPETITIVENESS OF EXPORTS

• The Freight Rebate Scheme is being extended until June 2022;
• We are increasing the maximum refund from 0.2 to 0.5 percent under the Export Credit Guarantee Scheme up to June 2022;
• The 50% reduction in port dues and terminal handling charges for export will be extended for 2 more years.
• Vessels calling at outer anchorage solely for bunkering services will be granted a 75 percent reduction in anchorage dues for the first 24 hours and 50 percent reduction for the next 48 hours
• The cap on Gross Tonnage for computing vessel fees calling at anchorage will be reduced from 100,000 tonnes to 35,000 tonnes.
• The EDB will launch an e-export Directory to display to the world products manufactured by Mauritian entrepreneurs.
• The directory will be a matchmaking platform to facilitate movement of goods between Mauritius, Africa and Asia.