Mauritius WT/TPR/S/90
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III. TRADE POLICIES AND PRACTICES BY MEASURE
(1) INTRODUCTION
1. Since its last Trade Policy Review, in 1995, Mauritius has continued its trade-related reform
effort, although border protection remains relatively high in some areas.  Tariff reforms, through
elimination of customs duties on certain inputs, equipment and capital goods, and reduction of
maximum rates, have helped to lower the simple average tariff rate to some 20% during the fiscal year2000/01.  However, the number of bands has remained the same (eleven, including the zero rate and
the ad valorem  equivalents of two specific duties).  The ad valorem  customs tariffs range from zero to
80% and are highly dispersed;  the ad valorem  equivalent of the specific duty on straps of thong-type
sandals is around 360% (the highest rate).  Manufacturing (Major Division 3 of ISIC Revision 2) is
the most protected sector with a simple average tariff of nearly 21%.
2. Steps have been taken to harmonize differing customs duties applied to imports depending on
their source ("scheduled", i.e. Commonwealth and certain major trading partners, and "non-
scheduled" territories, i.e. other countries).  As from the 2000/01 Budget, the tariff differential of 20
percentage points imposed on certain imports from non-scheduled territories is being eliminated
gradually.  It is currently of 10 percentage points and applies only to one band:  products liable to theMFN tariff rate of 65% (certain imports from non-scheduled territories) carry a reduced rate of 55%
when they are imported from scheduled territories.  Moreover, up to the 2000/01 Budget, imports of
motor cars from non-scheduled territories have been subject to relatively high excise duties (60
percentage points above the excise duties collected on similar items from scheduled territories).
Differing excise duties still apply to imports and locally produced goods.  In September 1998, a value-
added tax of 10% replaced the sales tax.  Mauritius has been applying the customs valuation method
based on the transaction value since 1 January 2000.
3. The liberalization reforms have fallen short of further dismantling non-tariff measures
maintained on various grounds.  Imports of table potatoes and salt are still subject to quota, while the
number of products subject to import ban, or import control by means of permit has increased
substantially.  Several parastatal bodies, including the State Trading Corporation and the Agricultural
Marketing Board, still purchase, import, and store "strategic products" (including flour, ration rice,petroleum products, cement, table potatoes, onions, and garlic).  Price controls based on a fixed
maximum price system and a maximum percentage markup system are also maintained on some of
the strategic products;  the controls are to be abolished gradually after the enactment of the
competition legislation – the draft legislation is being vetted by the Office of the Attorney General.
A permit is required for the exportation of products of "strategic importance" and of goods eligible forpreferential-quota treatment in importing countries.
4. Various incentive schemes are available to local producers, mainly manufacturers, and to
exporters to encourage investment and improve the international competitiveness of Mauritian
products.  The incentives, together with elimination/reduction of tariffs on inputs, increase effective
protection for local processing industries.  Mauritius does not have legislation on contingency traderemedies;  it has not taken any anti-dumping, countervailing or safeguard actions.  The legislation on
government procurement has been revised several times in recent years;  it is currently under review
by a High Powered Committee.
5. Mauritius has revised its Copyright Act.  It is finalizing new legislation on patents and trade
marks, and drafting legislation on industrial designs, geographical indications, and layout design of
integrated circuits with a view to complying with its obligations under the WTO Agreement onWT/TPR/S/90 Trade Policy Review
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Trade-Related Aspects of Intellectual Property Rights (TRIPS).  In Mauritius, counterfeiting mainly
affects copyrights and trade marks.
(2) MEASURES DIRECTLY AFFECTING IMPORTS
(i) Registration, documentation, and procedures
6. All operators in domestic or international trade in Mauritius must be registered with the
Income Tax Department and be issued an identification number that is used in all customsdocumentation.  Occasional operators must also register with the Customs Department.  The
Government of Mauritius does not have recourse to the services of a pre-shipment inspection
company.
7. Importers of commercial consignments to Mauritius have to submit customs declarations
(bills of entry) together with usual commercial docum ents (the invoice, the bill of lading, air waybill
or postal documentation, import permits, sanitary and phytosanitary certificates (where applicable),
and certificates of origin for goods eligible for preferential treatment).
1  In 1994, the Customs
Department of Mauritius started replacing the Automated System for Customs Data (ASYCUDA),
developed by UNCTAD for customs administrations , with a new computerization project – the
TradeNet Project.  The project was implemented in five phases, from June 1994 to December 2000.The core part of the TradeNet Project is the Customs Management System (CMS).  The CMS allows
the electronic submission of declarations by declarants through their front-end system, and processing
by the CMS up to the final clearance of goods;  it allows declarants to prepare and send their
declarations in advance.
2  A single goods declaration format based on international standards has been
introduced.
8. Declarations undergo a risk management procedure in the CMS and are sorted into two
categories:  "non-selected" and "selected".  For non-selected declarations (60% of total declarationsprocessed, i.e. release of imports and shipment of exports), goods may be delivered automatically,
without documentary and physical verification;  clearance is normally completed within five minutes.
For selected declarations needing documentary control only (some 20% of the total declarations
processed), customs clearance takes around 15 minutes;  the goods are released without physical
verification.  For the other selected declarations, physical examination is required prior to delivery;clearance normally takes up to one hour depending on the consequential procedures after
examination.
9. Customs provides warehousing for three days, after which goods are stored at freight stations
or by the Mauritius Marine Authority at the owner's expense.  With the exception of imports under
temporary admission or free-port regimes, goods mu st be removed within two months after being
landed;  otherwise, they may be sold by public auction or public tender after public notice of the sale.
10. On 1 January 2000, Mauritius switched from a hybrid system of customs valuation to the
method based on the transaction value.
11. Importers may appeal against decisions or actions of the Customs Administration to the
Customs Advisory Committee in the first instance, and to the Tax Appeal Tribunal and then the
                                                     
1 See WTO (1995) for more details on customs procedures.
2 Mauritius Customs (1999).Mauritius WT/TPR/S/90
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Supreme Court in further instances.3  The Customs Advisory Committee hears about 25 to 30 cases
while the Tax Appeal Tribunal adjudicates on about 2,500 cases annually.
(ii) Tariffs, other duties, and taxes
(a) General features
12. Goods imported to Mauritius are generally subject to the customs tariff and the value-added
tax (VAT).  Excise duties apply to imports of certain products.  Mauritius applies no tariff quotas toimports.  The basis for customs tariffs and excise duti es is the c.i.f. value, and for the VAT the value
at importation, i.e. the c.i.f. value plus customs tariffs and excise duties.
13. Customs duties and taxes on imports, including tariffs, excise duties, and the VAT, account
for some 50%  of total tax revenue, with customs tariffs and excise duties accounting (in aggregate) for
about one-third of the total.  The share of customs tariffs in total tax revenue has declined from 33.5%in 1996/97 to around 18% in 2000/01, while the share of excise duties on imports has increased from
6.6% to some 14% of total tax revenue over the period.
14. For differential import duty purposes, exporting countries are grouped as:  "scheduled"
territories, comprising Commonwealth countries and certain major trading partners (Table III.1);  and
"non-scheduled" territories, composed of all the other countries, including Japan and the Republic ofKorea.
4
15. The preferential duty treatment ex nihilo  granted to scheduled territories consists of a
10 percentage point reduction of the tariff on imports liable to the 65% rate (i.e. a reduced rate of
55%);  and a 60 percentage point reduction of the excise duties on imports of motor vehicles
(HS Nos. 8703 and 8704).5  The customs tariff and excise duties published by Mauritius may be
misleading since their schedules detail the regime that applies to imports from "scheduled" territories
and not what may be considered as the MFN regime.  The tariff analysis under section (b) below isbased on this MFN regime.
(b) Tariff structure
16. The tariff classification is based on the 1996 Harmonized System (HS).
6  Tariff reforms are
normally carried out under the Customs Tariff Act and in subsequent budgets;  the approval of
Parliament is required.  Proposals for changes in tariff structure come from, inter alia , the Mauritius
Chamber of Commerce and Industry, the Association of Mauritian Manufacturers, and the Small and
Medium Industries Development Organization;  the final authority lies with the Finance Minister.
                                                     
3 Decisions regarding origin, classification, and valuation of goods may be appealed to the Tax Appeal
Tribunal within 28 days after the matter has been reviewed by the Customs Advisory Committee and the
Committee has given its findings.
4 See WTO (1995) for details of the preferential import duties granted to scheduled territories up to
end-June 2000.
5 In 1995, there was a 20 percentage points difference under the Customs Tariff and an additional 40
percentage points difference under the Excise Act, i.e. a total of 60 percentage points.  In 1999, a decision wastaken to consolidate import duties on motor cars by tran sferring existing rates under the Customs Tariff Act to
the Excise Act.  Accordingly, the differential under the Excise Act moved from 40 to 60, but the differential
under the Customs Tariff Act moved from 20 to 0.  According to the authorities, the 60 percentage pointdifferential between non-scheduled and scheduled territories was abolished on 12 June 2001 and announced bythe Deputy Prime Minister and Minister of Finance in the 2001/02 Budget Speech.
6 Mauritius has been applying the HS since 1 January 1988.WT/TPR/S/90 Trade Policy Review
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Table III.1
Scheduled territories, as at May 2001
Arab Republic of Egypt Kenya
Ashmore and Cartier Islands Leeward Islands (comprising Antigua, Montserrat, St. Christopher, Nevis and Anguilla)
Australian Antartic Territory Lesotho
Austria Malawi
Bahamas Malaysia (comprising Federation of Malays, Sarawak and Sabah)
Bangladesh Malta
Barbados Monaco – French territory
Belgium Mozambique
Bermuda Namibia
Botswana Nauru
British Antarctic Territory New Zealand
British Honduras Nigeria
British Solomon Islands Protectorate Norfolk Island
Brunei Pakistan
Burma Papua
Burundi Portugal
Canada Republic of Ireland
Cayman Islands Republic of South Africa
Channel Islands Ross Dependency
Christmas Island Rwanda
Cocos or Keeling Islands Seychelles
Commonwealth of Australia Sierra Leone
Comoros Islands Singapore
Cyprus Somalia
Democratic Republic of Madagascar Spain
Denmark Sri Lanka
Djibouti St. Helena (with Ascension and Tristan da Cunha)
Ethiopia Swaziland
Falkland Islands and Dependencies Sweden
Germany Switzerland
Finland Tanzania (comprising Tanganyika and Zanzibar)
Fiji Territory of New Guinea
France The Netherlands
Gambia Tonga
Ghana Trinidad and Tobago
Gibraltar Turks and Caicos Islands
Gilbert and Ellice Islands Colony Uganda
Grand Duchy of Luxembourg Union of the Soviet Socialist Republics
Greece United Kingdom
Guyana United States of America
Heard Island and McDonald Island Virgin Islands (British)
Hong Kong, China Western Samoa
India Windward Islands (comprising Dominica, Grenada, St. Lucia and St. Vincent)
Isle of Man Zambia
Italy Zimbabwe
Jamaica
Source: Information provided by the Mauritian authorities.Mauritius WT/TPR/S/90
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17. The tariff consists mostly of ad valorem  duties;  specific duties apply to thong-type sandals
(HS 6402.201) and their straps (6406.101) at Mau Rs 15 per pair and Mau Rs 10 per pair,
respectively.  The number of bands, as well as the levels of specific duties and products to which they
apply, has remained unchanged since the last Review of Mauritius.  Nevertheless, as from the 2000/01
Budget, the tariff differential (20 percentage points) applied on imports from non-scheduled territories
is being gradually eliminated:  the 100% tariff rate on certain imports from non-scheduled territorieswas aligned with the 80% rate applied on imports of similar products from scheduled territories, and
the 75% tariff rate was reduced to 65% (10 percentage points above the 55% rate applied on imports
of similar products from scheduled territories).
7  Customs tariff rates were also lowered on more than
500 items in June 1999 and on more than 1,300 items in June 2000;  they were reduced to zero on
industrial machinery and equipment, on raw materials, and on certain hand tools and laboratoryequipment.
18. The bands of the ad valorem  component of the 2000/01 MFN tariff are:  0;  5%;  10%;  15%;
20%;  30%;  40%;  65%;  and 80%.  The estimation of ad valorem  equivalents for the two tariff lines
carrying specific duties has led to rates of 94.3% on thong-type sandals, and 360.2% on their straps.
8
In consequence, the rates of the customs tariff range from zero to 360.2%.
19. The simple average of Mauritius' 2000/01 MFN tariff is 19.9%, with a standard deviation of
29% (Table AIII.1).9  The coefficient of variation of 1.46 depicts high dispersion of tariff rates.  The
modal rate (the rate occurring most frequently) is zero and applies to nearly 55% of the 5,499 tariff
lines at the HS eight-digit level10;  in general, products imported duty-free include raw materials,
industrial machinery and equipment, certain semi-finished products (e.g. knitted or crocheted fabrics,
and man-made filaments and staple fibres), products of the printing industry, musical instruments and
parts and accessories of such articles, and certain hand tools and laboratory equipment.  The averageand the modal rate of zero on more than half of the total tariff lines indicate high customs tariffs on
non-duty-free imports.
20. Nearly 18% of tariff lines carry rates of 65% or more (Chart III.1);  these high rates apply to
products of all kinds.  Except for the modal rate, the 80% rate applies to the highest number of lines
(some 12.5% of lines);  this rate applies to various kinds of products, including certain meat andedible meat offal, certain vegetable products (e.g. cut flowers and flower buds, mosses and lichens),
certain sugars and sugar confectionery, peanut butter, alcoholic beverages, manufactured tobacco,
certain paints and varnishes, cosmetics, certain soap, organic surface-active agents, washing
preparations and waxes, explosives, pyrotechnic products, matches, pyrophoric alloys and certain
combustible preparations, certain shopping bags, and certain rubber products.
21. Manufacturing (Major Division 3 of ISIC Revision 2) is the most tariff protected sector
(Chart III.2), with a simple average tariff of 20.6% and rates ranging up to 360.2% (the ad valorem
equivalent of the specific duty on straps of thong-type sandals);  the average tariff in the sector is
above the overall average.  Tariff protection in agriculture (Major Division 1 of ISIC Revision 2)
averages 14%, with rates ranging up to 80%.  Mining and quarrying (Major Division 2 of ISIC
Revision 2) is the least tariff protected sector with a simple average tariff of 1% and rates ranging up
                                                     
7 The application of a tariff differential of 20 percentage points affected two tariff bands and resulted in
the imposition of tariff rates of 75% and 100% on imports from non-scheduled territories when imports ofsimilar goods from scheduled countries were subject to lower rates of 55% and 80%, respectively.
8 The ad valorem  equivalent is calculated as the ratio of the specific duty on a product to its import
price.  See WTO (2001) for details of specific duties.
9 The simple average of Mauritius' customs tariff rates on imports from scheduled territories is 19.4%,
compared with 29% in 1994.  The tariff collection ratio was 6.8% during the fiscal year 1999/2000.
10 In July 1999, some 28% of all the tariff lines bore the zero rate.WT/TPR/S/90 Trade Policy Review
Page 28
to 15%;  Mauritius imports almost all its mineral product requirements.  Tariff rates are more
dispersed in mining and quarrying than in the othe r sectors, with a coefficient of variation of 3.7.
Using the WTO definition, the simple average tariff is 20.6% on agricultural products and 19.8% on
non-agricultural products.
(12.5)
(5.1)(7.8)
(4.0)(1.9)(9.0)
(3.4)(1.5)(54.7)
05001,0001,5002,0002,5003,0003,500
D u t y  f r e e 5 1 01 52 03 04 06 58 00102030405060708090100Chart III.1
Applied MFN tariff distribution, 2001
Number of tariff lines
WTO Secretariat estimates, based on data provided b y the Mauritian authorities. Sourc e:Per cen t
Number of lines (% of total)
Cumulative per cent
22. Mauritius' tariff shows escalation on all products except textiles, wearing apparels and leather
products, and "other manufacturing products", on which negative escalation is present from the first to
the second stages of processing.  Tariff escalation is most pronounced on:  basic metal industries;wood and wood products, including furniture;  paper, paper products, printing and publishing;
chemicals, petroleum, coal, rubber and plastics;  and non-metallic mineral products except of
petroleum and coal (Table III.2).  Nevertheless, because of relatively high tariff rates on mainly
certain basic agricultural products, in aggregate, the tariff displays negative escalation from first-stage
processed (with a simple tariff average of 9.1%) to semi-finished products (with an average of 5.5%),and positive escalation from semi-finished to finished goods on which customs tariffs average 30.4%.
The negative escalation may, to a certain extent, be inverted by tariff concessions granted under
various incentive schemes.
23. In the Uruguay Round, Mauritius bound duties on 14.6% of all its tariff lines at the
HS eight-digit level.  Mauritius bound tariffs at a ceiling rate of 65% on non-agricultural products(WTO definition);  the binding covers ten HS four-digit tariff lines (i.e. 1.6% of its total tariff lines at
the HS eight-digit level for non-agricultural products ), including tubes, pipes and hoses, and fittings
thereof;  printed matters;  glasses;  interchangeable and electro-mechanical tools;  derricks, cranes,Mauritius WT/TPR/S/90
Page 29
mobile lifting frames, straddle carriers and trucks;  electric motors and generators;  and public
transport motor vehicles.11
Total
Industry
Mining
AgricultureDuty free
>0-15
>15-40
>400102030405060708090100Chart III.2
MFN tariff distribution by sector, 2001
Source : WTO Secretariat estimates, based on data provided by the Mauritian authorities.Per cent
24. Mauritius also bound tariffs on all agricultural products (WTO definition) at a ceiling rate of
122%, with the exception of frozen boneless bovine meat, milk and cream, butter, processed cheese,potatoes, onions and shallots, peas, oranges, grapes and apples, wheat, meslin, maize and rice, on
which the ceiling rate was set at 37%;  and coconuts, almonds in shell, bananas, tea, shelled
groundnuts, tomatoes preserved, and frozen orange juice, on which tariffs were bound at a ceiling rate
of 82%.
Table III.2
MFN tariff escalation by ISIC 2-digit heading, 2000/01
(Per cent)
ISIC Code Description No. of linesSimple
averageRangeStandard
deviationShare of
1999 imports
Total 5,499 19.9 0 – 360.2 29.0 100.0
11 Agriculture and hunting 230 15.7 0 - 80 18.0 3.8
12 Forestry and logging 27 0.0 0 - 0 0.0 0.1
13 Fishing 56 13.8 0 - 40 18.0 0.1
21 Coal mining 4 15.0 15 - 15 0.0 0.2
22 Crude petroleum and natural gas production 3 0.0 0 - 0 0.0 0.0
23 Metal ore mining 23 0.0 0 - 0 0.0 0.0
Table III.2 (cont'd)
                                                     
11 The bound tariffs are on non-agricultural products of HS headings 39.17;  49.01;  70.03;  73.07;
82.07;  84.26;  84.27;  85.01;  85.08;  and 87.02.WT/TPR/S/90 Trade Policy Review
Page 30
ISIC Code Description No. of linesSimple
averageRangeStandard
deviationShare of
1999 imports
29 Other mining 77 0.6 0 - 15 2.9 1.8
31 Manufacture of food, beverages and tobacco
  - First stage of processing 86 10.5 0 - 40 16.5 2.7
  - Semi processed 63 18.9 0 - 80 22.1 0.5
  - Fully processed 332 29.4 0 - 80 29.6 7.6
32 Textile, wearing apparel and leather industries
  - First stage of processing 38 6.3 0 - 80 21.9 0.5
  - Semi processed 418 0.8 0 - 65 6.5 17.5
  - Fully processed 457 64.7 0 - 360.2 33.0 2.4
33 Wood and wood products, including furniture
  - First stage of processing 5 0.0 0 - 0 0.0 0.0
  - Semi processed 33 1.8 0 - 30 7.3 0.9
  - Fully processed 55 54.7 0 - 80 31.7 0.5
34 Paper, paper products, printing and publishing
  - First stage of processing 19 0.0 0 - 0 0.0 0.0
  - Semi processed 67 0.0 0 - 0 0.0 1.2
  - Fully processed 76 43.4 0 - 80 34.8 1.1
35 Chemicals, petroleum, coal, rubber, plastics
  - First stage of processing 56 2.0 0 - 15 4.9 0.8
  - Semi processed 711 3.8 0 - 80 11.7 4.2
  - Fully processed 327 32.2 0 - 94.3 32.3 10.9
36 Non-metallic mineral products except of petrol. & coal
  - First stage of processing 2 0.0 0 - 0 0.0 0.0
  - Semi processed 32 5.9 0 - 80 18.1 1.1
  - Fully processed 146 29.5 0 - 80 23.5 1.5
37 Basic metal industries
  - First stage of processing 16 0.0 0 - 0 0.0 0.0
  - Semi processed 428 12.3 0 - 65 17.2 2.6
  - Fully processed 1 80.0 80 - 80 0.0 0.0
38 Fabricated metal products, machinery & equipment
  - Semi processed 6 0.0 0 - 0 0.0 0.0
  - Fully processed 1,476 17.6 0 - 80 24.9 35.2
39 Other manufacturing industries
  - First stage of processing 15 16.7 0 - 80 26.1 0.3
  - Semi processed 4 7.5 0 - 10 5.0 0.0
  - Fully processed 210 33.8 0 - 80 33.4 2.1
Source: WTO Secretariat estimations, based on data provided by the Mauritian authorities.
25. "Other duties and charges" on all of these agricultural and non-agricultural products were
bound at 17%, with the exception of frozen boneless bovine meat, milk and cream, processed cheese,
potatoes, peas, maize, and printed matter, on which they were bound at zero.12
(c) Tariff preferences
26. All goods are freely traded between Mauritiu s and other COMESA members that have met
the free-trade area (FTA) commitments (Chapter II(5)(ii )(a));  Mauritius grants preferential treatment
of 90% tariff reduction, on a reciprocal basis, on imports from COMESA members that are not yet
parties to the FTA.
                                                     
12 Schedule CXVIII, 15 April 1994.Mauritius WT/TPR/S/90
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27. Under the SADC Trade Protocol, Mauritius grants duty-free access, on a reciprocal basis, to
imports of category A products (mostly capital goods and equipment) from the other members that
have already deposited their implementation instrume nts (Chapter II(5)(ii)(b)).  Moreover, under the
IOC Agreement, all goods are freely traded between Mauritius and Madagascar (Chapter II(5)(ii)(c)).
28. Preferential tariff treatment granted under the COMESA, SADC and IOC treaties is subject to
the relevant certificates of origin.
(d) Other duties and taxes
29. On 7 September 1998, a value-added tax (VAT) replaced the sales tax.13  The VAT is levied
at a standard rate of 10% on the duty-inclusive value (the customs value plus border charges) of
imports, and on the sale price of locally produced goods and services.14  Zero-rated goods and services
include exports;  wheat flour and bran;  edible oils;  margarine;  sterilized liquid milk, curdled milkand cream;  yoghurt;  sugar;  live poultry, meat of poultry, edible offal of poultry and birds' eggs in
the shell;  fertilizers;  animal feeding stuffs other than prepared pet foods;  printed matter (except
directories and reports), music, printed or in manuscript
15;  common salt, ghee, and fish (fresh, chilled
or frozen), produced in Mauritius; electricity and water; transport of goods by sea or air;  supply of
goods by an operator of a duty-free shop situated at the port or airport;  and supply of goods orservices to a licensee in the freeport zone.
30. Goods and services exempt from the VAT include basic foodstuffs (e.g. rice, cereal flours,
wheat, bread, edible fats and oils, dairy products, meat, chicken and fish);  live animals of a kind
generally used as, or yielding or producing, food for human consumption;  unprocessed agricultural
and horticultural produce;  health care, veterinary, educational and training services;  journals and
periodicals;  sea or air transport and cargo handling services;  kerosene;  sports events;  public
transport;  and financial services.  The list of bodies or persons exempt from the VAT includesdisabled persons and the blind;  religious, benevolent, and charitable bodies/institutions;  airlines
(their instrumental material and training aids, their repair, maintenance, and servicing equipment, and
fuel, lubricants, and other consumable technical supplies for their own consumption);  any non-citizen
working in Mauritius under a bilateral agreement with the Government of Mauritius;  and diplomatic
missions and agents.  Any goods not exceeding Mau Rs 1,000 in customs value, imported in a singlepackage, may be exempt from the VAT if the comptroller of Customs is satisfied that the package is
not part of a larger consignment.  Enterprises engaged in a line of activities approved by the Finance
Minister may also be exempt from the VAT for their imports of specialized machinery and equipment
and parts thereof and raw materials.
31. A cess is levied on imports of tea at Mau Rs 0.20 per kg., and a 20% fee is collected on the
c.i.f. value (Chapter IV(2)(ii)(b)).  Excise duties are collected on a wide range of imported and locally
produced goods, including alcoholic beverages;  tobacco products;  motor and aviation spirit, spirit-
type jet fuel, and gas oils;  and motor vehicles.  Exports are exempt.  There are significant differences
in the application of excise duties between imported and locally produced goods:  excise duties are
ad valorem  on imports, and either ad valorem , specific or alternate on locally produced goods.  In
several instances – the most obvious being ethyl alcohol, and manufactured tobacco and their
substitutes – excise duties are significantly higher on imports than on locally produced goods
                                                     
13 See WTO (1995) for details of the sales tax.
14 Enterprises having an annual turnover of Mau Rs 3 million or more should register themselves with
the VAT Department;  those with an annual turnover below Mau Rs 3 million may opt for voluntaryregistration.
15 Items of HS headings 49.01;  49.03;  and 49.04.WT/TPR/S/90 Trade Policy Review
Page 32
(Table AIII.2).  Moreover, excise duties on imports of motor vehicles from "non-scheduled" countries
are 60 percentage points higher than on imports from "scheduled" territories (section (a) above).16
32. The collection ratio on imports was 5.4% for excise duties and 6% for the VAT in 1999/2000;
revenue forgone in terms of exemptions from the VAT represented some 70% of the VAT collected
on imports.
(e) Duty and tax exemptions and refunds
33. Tariff exemptions are granted under various incentive schemes (section (4)(i)).  There are also
67 categories of unclassified tariff exemptions, including on machinery, equipment (and parts thereof)
and inputs to be used in various manufacturing industries or in agriculture and agri-based industries;
on specified motor vehicles;  on pedagogical materials and equipment;  and such universally exempt
merchandise as re-imports, donations, samples, imports by benevolent, charitable, and religiousinstitutions/bodies, and bona fide passenger baggage.
17
34. Reduced tariff rates apply on various kinds of products imported by persons (natural or
artificial) classified under 57 groups, including companies, organizations, manufacturers, returning
residents, educational institutions.18  In addition, other firm-specific exemptions or concessions may
be granted by the Finance Minister on a selective basis (e.g. to increase domestic value added orexport potential).
35. During fiscal year 1999/2000, tariff and excise duty exemptions amounted to some 57% of
tariff and excise duties collected on imports;  tariff and excise revenue forgone on imports in terms of
unclassified exemptions accounted for some 24% of total revenue forgone in terms of exemptions.
Unclassified exemptions accounted for some 55% of total tariff and excise revenue forgone (on
imports) under various incentive schemes.
19
(iii) Rules of origin
36. Mauritius has no national legislation or regulations on non-preferential rules of origin.20
However, regional trade agreements to which Mauritius is a signatory provide for preferential rules of
origin (Chapter II(5)(ii)).
37. To be eligible for preferential tariff treatment, goods imported from a scheduled territory must
be covered by a proper certificate of origin issued in that territory.  Such a certificate must:
- be signed or visaed by a Government Authority in the scheduled territory where the
goods originate or by a Chamber of Commerce in that same country affiliated to or
being a member of the International Chamber of Commerce;  and
- specify that the final process of manufacture has taken place in that territory and the
goods have undergone a substantial manufacturing process containing at least 50% oflabour, material and other manufacturing costs originating in that scheduled territory.
                                                     
16 A rationalization programme on excise taxation is being implemented:  differentiated excise taxation
has been abolished for furniture and reduced for certain products;  its abolition for motor cars was announced in
the 2001/2002 Budget Speech.
17 Part II of the First Schedule to the Tariff.
18 Part II A of the First Schedule to the Tariff.
19 VAT exemptions are covered in section (d) above.
20 WTO document G/RO/N/1/Add.1, 22 June 1995.Mauritius WT/TPR/S/90
Page 33
(iv) Local-content and local-purchase requirements
38. According to the authorities, no local-content or local-purchase requirements are in force in
Mauritius.
(v) Import prohibitions, restrictions, and licensing
39. The 1999 Consumer Protection (Control of Imports) Regulations provide for import controls
(general goods and dangerous chemicals) (Table A III.3);  and prohibitions.  Import prohibitions are
maintained for various reasons, including sanitary, phytosanitary, security, and environmental
grounds, or under international conventions to which Mauritius is a signatory (section (4)(ii)(b)).
40. The number of categories of prohibited goods has increased from 13 in 1995 to 24 in 2001.
The list of prohibited goods currently consists of:  ball valve bottles;  explosive caps for toy pistols
and guns containing a mixture of potassium chlorate and red phosphorus;  fire crackers of a typecommonly known as "pétards rapés";  white phosphorous matches;  remoulded, recapped or
regrooved motor-vehicle rubber tyres;  kerosene stoves of a type commonly known as "lampes vertes"
and parts thereof;  water scooters;  ivory and tortoiseshell;  underwater fishing guns;  sugar and
chocolate confectionery and bubble/chewing gum in the form of cigarettes;  second-hand
motor-vehicle spare parts and accessories;  toy motor-cyclists' helmets;  imported "roll your owncigarettes" papers
21;  electric water heaters with bare element and parts and accessories thereof;
portable electric lamps commonly known as laser penlights/torches;  toy pistols and guns with
projectiles;  containers performing the function of "aerosols" using chlorofluorocarbons (CFC) as
propellant with contents other than pharmaceutical products;  items containing CFC as refrigerant or
blowing agent;  crocidolite (blue asbestos) and it s products;  polybrominated diphenyls (PBB) and its
products;  polychlorinated diphenyls (PCB) and its products;  polychlorinated terphenyls (PCT) and
its products;  tris (2, 3 – dibromopropyl) phosphat e and its products;  and PVC teethers and teething
rings.
41. Imports of controlled goods are subject to permit issued by the Permanent Secretary of the
Commerce Ministry.  For straightforward applications, permits are issued electronically within
24 hours.  For applications that need consultation with other controlling agencies (e.g. the Mauritius
Standards Bureau for goods subject to specific standards, and the Pharmacy Board for pharmaceuticalproducts), the issue of a permit may take (in ex ceptional circumstances) up to a maximum of one
month.  Specific conditions and restrictions are imposed on the importation of certain controlled
goods (Table III.3).  For example, imports of table potatoes and table salt are subject to quotas.  The
total quota on each product is determined on a yearly basis and distributed equally among the
applicants;  it cannot be exceeded for the purpose of accommodating new importers.  Unused quotasare not carried forward to a succeeding period.  The quota on table potatoes is set for private
importers, not on imports by state-owned companies (section (4)(iv)), at (in tonnes):  2,092 in 1999;
2,450 in 2000;  3,000 in 2001;  and 4,000 in 2002.  It has been under-filled (Table III.4).  The quota
on salt is 500 tonnes per year shared among 50 traditional suppliers.
42. Only traditional importers are eligible to apply for permits in respect of goods that are under a
non-restrictive system
22;  any person or firm is eligible to ap ply for permits in respect of the other
controlled goods.  Controlled goods may be imported throughout the year once they are covered by
valid import permits.  No fee is charged for the issue of an import permit.  Importers also need an
authorization from the Commerce Minister before customs clearance.23  No import permit is required
                                                     
21 Items of HS 48.13.
22 Processing of applications to import goods under quota takes one week to one month.
23 WTO documents G/LIC/N/1/MUS/1, 24 October 1995, and G/LIC/N/3/MUS/1, 23 January 1996.WT/TPR/S/90 Trade Policy Review
Page 34
for the following controlled goods:  household and personal effects of a passenger (excluding
second-hand vehicles and second-hand equipment and tools for commercial or industrial use);
samples of no commercial value involving no transfer of funds;  and goods for shipstores and
transshipment.
Table III.3
Conditions on imports of controlled goods, as at May 2001
Description of controlled goods Conditions under which the goods should be imported
Rice (imported by traders other than State Trading Corporation) Should not exceed 10% broken rice
Weighing and measuring instruments not for trade use Each and every instrument should be clearly and indelibly marked
"not for trade use"
Food additives (preservatives, colouring substance, flavouring
substance, flavour enhancer)Excluding egg yellow in powered form
Second-hand (used/reconditioned) motor vehicles as follows:
(a) Motor car/van The motor car/van should:
(i) be less than five years old at the time of shipment;
(ii) be consigned to the applicant whose name shall appear on 
the bill of lading and the manifest as the consignee;
(iii) be registered with the National Transport Authority in the 
name of the importer except where the motorcar is 
imported by an authorized dealer;
(iv) be a right-hand drive;
(v) be in good running condition and not damaged;
(vi) have its original chassis
(vii) be covered by a document issued by a competent authority 
in the exporting country certifying the road-worthiness of 
the motorcar/van at the time of shipment
(b) Lorry/truck The lorry/truck should
(i) be less than eight years old at the time of shipment;
(ii) be consigned to the applicant whose name shall appear on 
the bill of lading and the manifest as the consignee;
(iii) be covered by a document issued by a competent authority 
in the exporting country certifying the road-worthiness of 
the lorry/truck at the time of shipment;
(iv) be registered with the National Transport Authority in the 
name of the importer except where the lorry/truck is 
imported by an authorized dealer;
(v) be a right-hand drive;
(vi) have its original chassis
(c) Motor-cycle The motor-cycle should be less than one year old at the time of
shipment
Second-hand motor-vehicle parts and accessories Excluding prohibited second-hand motor-vehicle parts and
accessories as specified in the Second Schedule
Controlled goods imported for re-export (a) Should be re-exported ex-bonded warehouse and not sold 
on the local market in any circumstances;
(b) no permission to sell on the local market will be granted in 
any circumstances
Motor-cyclists' helmets (crash helmets) Each helmet should be indelibly and clearly marked with the
certification mark issued either by the National Bureau of
Standards or by a recognized Standards Institution in the country
of origin
Bakery additives Shall not contain potassium bromate as an ingredient
(a) Hydrogenated oils and fats imported under CTN 15.16 for 
industrial useShall contain not more than 85% saturated fatty acids on the fat
weight basis
Table III.3 (cont'd)Mauritius WT/TPR/S/90
Page 35
Description of controlled goods Conditions under which the goods should be imported
(b) Vegetable fats (Vanaspati) imported under H.S. Code 
15.16.20Shall contain not more than 30% of saturated fatty acids on the fat
weight basis
Margarine rich in polyunsaturates imported under H.S. Code 15.17 Shall contain not less than 45% of polyunsaturated fats and not
more than 25% of saturated fats on the fat weight basis
(a) Margarine imported under H.S. Code 15.17 for industrial 
purposeShall contain not more than 75% of saturated fatty acids on the fat
weight basis
(b) Other margarine imported under H.S. Code 15.17 Shall contain:
(a) not more than 60% of saturated fats on the fat weight 
basis;  and
(b) not more than 25% of palm oils
(a) Edible mixtures or preparations of animal or vegetable fats or
oil or of fractions of different fats or oil imported under HS 
No 15.17 and 15.18Shall contain:
(a) not more than 23% of saturated fatty acids;  and
(b) not more than 25% of palm oils
Measuring tapes At least 50% of each and every consignment of measuring tapes
shall be graduated in metric only
PVC pipes Shall comply with MS ISO 4422-2 and MS6
(a) a certificate from the Mauritius Standards Bureau shall be 
obtained prior to the clearance of the goods from the 
Customs
Brooms Excluding straw brooms and brooms wholly or partially made of
vegetative material like "fataque"
Corrugated iron sheets excluding of a type commonly known as"Tole Canadien"The thickness of each sheet should not be less than 0.56 mm
Electric cable insulated with plastic materials (a) Shall comply with MS 17 and MS 113;
(b) A certificate from the Mauritius Standards Bureau shall be 
obtained prior to the clearance of the goods from the 
Customs
Armoured electric cables Should comply with MS 101
Coconut oil Coconut oil should be imported in bottles of 1 litre each, to be
labelled as follows:
(a) "For cosmetic or religious purposes only";  and
(b) "Coconut oil is hazardous to health if consumed"
Fine gold for resale (a) The importer should hold the appropriate Trading Licence 
issued under the Trade and Industries Classification Act 
and the Local Government Act giving him the right to 
manufacture and sell goldware
(b) The fine gold should be sold to licensed jewellers only
(c) A certificate of fineness from overseas, attesting that the 
gold is of 24 ct., should be submitted to the Ministry prior 
to the clearance of the goods from the Customs
Pocket lighters, gas fuelled, non-refillable (a) Shall comply with the International Standard, ISO 
9994:1995 or any other equivalent standard;
(b) A recent certificate of conformity with the international 
standard, ISO 9994:1995 or any other equivalent standard, 
should be submitted to the Ministry prior to the clearance 
of the goods from the Customs
Source: Information provided by the Mauritian authorities.
43. An individual or firm (other than an authoriz ed dealer) is entitled to import only one unit of
the following items every five years:  second-hand (used/reconditioned) motor cars;  second-hand
(used/reconditioned) lorries/trucks (other than lo rries/trucks of special types for specific purposes);
and second-hand (used/reconditioned) van.  "Total restriction" applies to imports of the followingWT/TPR/S/90 Trade Policy Review
Page 36
products:  second-hand bakery and pastry equipment24;  second-hand motorcycles for resale25;  used,
scrapped and second-hand goods for resale, other than essential second-hand motor-vehicle parts and
accessories;  second-hand motorcycle/autocycle parts and accessories for resale or assembly.  Palm oil
can be imported only by oil refineries (for blending with soyabean or sunflower oil) and by other food
industries as raw material;  and gold only by jewellers or factories in the export-processing zone
holding the appropriate licences or certificates to manufacture goldware.
Table III.4
Quotas on potatoes, 1995-2001(Tonnes)
YearLocal
productionQuotas on
importsImports by
the private
sectorImports by
AMBTotal importsImports by
the private
sector
(% of total)Imports by
AMB
(% of total)
Table potatoes
1995 15,718 .. .. .. 8,040 .. ..
1996 10,639 .. .. .. 10,505 .. ..
1997 17,583 .. .. .. 10,185 .. ..
1998 14,612 .. 5,080 3,853 8,933 57 43
1999 15,322 2,092 1,546 5,121 6,667 23 77
2000 15,000 2,450 1,477 5,545 7,022 21 79
2001a16,000 3,000 1,945 6,775 8,720 22 78
Seed potatoes
1995 1,509 .. 0 1443 1443 0 100
1996 1,347 .. 0 979 979 0 100
1997 787 .. 0 1219 1219 0 100
1998 780 .. 0 1711 1711 0 100
1999 1,126 .. 0 1200 1200 0 100
2000 1,522 .. 0 1114 1114 0 100
2001 .. .. .. .. .. .. ..
.. Not available.a Estimation.
Source: Information provided by the Mauritian authorities.
(vi) Contingency trade remedies
44. Mauritius has no legislation on anti-dumping, countervailing or safeguard measures.  Draft
legislation is being vetted by the Attorney General's Office. The legislation may come into force by
the end of 2001.  Mauritius has taken no anti-dumping, countervailing or safeguard actions.
45. Mauritius retains the right to use the transitional safeguard mechanism of Article 6 of the
WTO Agreement on Textiles and Clothing.  It has also undertaken a programme to integrate its textile
and clothing products into GATT 1994 rules;  the lists of products integrated during Phase I (16% of
its 1990 imports) of implementation of the Agreement included specified tops and yarns, fabrics,
                                                     
24 New equipment can be imported only by holders of bakery and pastry licences or by traders on their
behalf.
25 Only one autocycle (less than 50cc) and/or one motorcycle of less than a year old can be imported
per year as gift or resettlement by an individual if the importation involves no transfer of funds.Mauritius WT/TPR/S/90
Page 37
made-up textiles, and clothing.26  The transitional safeguard mechanism cannot be used in respect of
such integrated goods;  rather GATT 1994 Article XIX is available.
(vii) Government procurement
46. Mauritius is neither a member of, nor an observer to, the WTO Plurilateral Agreement on
Government Procurement.  In October 2000, a new Central Tender Board Act replaced existing
legislation deemed stringent, administratively cumbersome, and difficult to implement.  A HighPowered Committee has been established to review existing legislation on government procurement
and propose amendments with a view to ensuring c onformity with international norms and practices.
47. All public purchasing entities must notify the Central Tender Board (CTB), in writing, of any
"major contract" they intend to execute, and submit all the relevant documents to the CTB.
27  Within a
reasonable delay after having been informed, the Board may call for tenders in respect of the contract.General guidelines on tendering procedures (including advertisement of calls for tenders in the local
and, as appropriate, in the international press) have been issued by the Board.  Under the guidelines,
procurement of less than Mau Rs 500,000, by ministries and government departments, is allowed
without reference to the CTB;  purchases of Mau Rs 500,000 or more (major contracts for ministries
and government departments) must be made through the CTB.
48. Specific thresholds apply to procurement of civil engineering works and capital goods by
government agencies and state-owned companies, depending on their activities:  Mau Rs 10 million
for local authorities and certain parastatal bodies;  and Mau Rs 25 million for other parastatal bodies
and state-owned companies.
49. Decisions regarding procurement procedures are made by the CTB in consultation with the
purchasing entity.  There is no de jure  prescription in this regard;  the CTB is free to choose between
open tenders, selective tenders, and direct purchases.  In principle, only local firms and local agents offoreign suppliers are eligible for open tenders.  Price preferences of up to 15% are granted to local
suppliers when tenders are open to foreign firms.  Where an international development agency is
providing the financing, its own procurement guidelines (including provisions on preferential
margins) apply.
50. The total value of contracts approved by the CTB increased from some Mau Rs 2.9 billion
(for 468 contracts) in 1995 to about Mau Rs 5.1 bill ion (for 1,491 contracts) in 2000 (Table III.5).
                                                     
26 WTO documents G/TMB/N/32, 6 March 1995;  G/TMB/N/95, 23 March 1995;  G/TMB/N/94,
25 May 1995;  G/TMB/N/136, 15 February 1996;  and G/TMB/N/295, 23 September 1997.
27 The CTB was established in 1994;  it sets tender procedures and ensures compliance therewith;  vets
tender documents and notices;  invites tenders locally or internationally, as appropriate;  receives and opens
tenders;  examines and evaluates tenders;  and approves the award of such tenders (Section 8 of the Central
Tender Board Act, 2000).  A "major contract" is defined as a contract for the procurement of goods and services,and execution of works, to which a public body is or proposes to be a party, and of a value exceeding thethresholds mentioned in the text.  The public bodies covered by the Act include ministries and governmentdepartments;  local authorities;  and other public institutions, including state-owned enterprises.WT/TPR/S/90 Trade Policy Review
Page 38
Table III.5
Activities of the Central Tender Board, 1995-2000
Activities 1995 1996 1997 1998 1999 2000
Contracts considered 550 1,265 1,162 1,278 1,516 1,516
Contracts approved 468 1,145 1,097 1,202 1,469 1,491
Variations considered 81 217 332 337 269 210
Variations approved 60 190 323 305 259 199
Vetting 279 254 266 285 357 318
Procedures/ enquiries 177 387 483 763 967 830
Bids 1,907 3,074 2,779 2,674 2,472 1,708
(Mau Rs million)
Value of contracts approved 2,895.7 3,954.7 6,681.4 4,586.7 7,082.1 5,086.8
Value of variations approved 246.0 179.4 342.0 475.7 161.1 229.5
Source: Information provided by the Mauritian authorities.
(viii) Other measures
51. According to the authorities, Mauritius has not taken any trade sanctions, except those
endorsed by the United Nations Security Council or other regional organizations of which it is a
member.
52. No official countertrade or offset arrangements, or agreements designed to influence the
quantity or value of goods and services exported to Mauritius are currently in force.  Likewise, theauthorities are not aware of the existence of such agreements between Mauritian and foreign
companies.  Mauritius has not taken any measures for balance-of-payments purposes.
53. Strategic reserve stocks are required for, inter alia , rice, flour, potatoes, onions, and garlic
(Chapter IV(2)(i)).
(3) M
EASURES DIRECTLY AFFECTING EXPORTS
(i) Registration, documentation, and procedures
54. A trading licence confers the title of both importer and exporter.  Therefore, the registration
formalities required for the importation of goods for commercial purposes (section (2)(i) above) also
apply to exports.
(ii) Export taxes, charges, and levies
55. According to the authorities, Mauritius applies no taxes, charges or levies to its exports.
(iii) Export prohibitions, licensing, and other restrictions
56. Export bans apply to products prohibited under international conventions to which Mauritius
is a signatory (Section (4)(ii)(b)).  The First Schedule of the 2000 Consumer Protection (Export
Control) Regulations contains the list of products subject to export control on various grounds,
including sanitary, phytosanitary, environmental and food security.  Goods currently subject to export
control include products of "strategic importance", and goods eligible for preferential-quota treatmentin importing countries (Table III.6);  a permit is required for their exportation.  The permit is issued
by the Commerce Ministry and valid for a maximu m of six months.  Exports of some of theseMauritius WT/TPR/S/90
Page 39
controlled goods may also be subject to approval by the respective authorities, e.g. the Agriculture
Ministry for agricultural products and the Health Ministry for pharmaceutical products.  Approval of
the permit is now done electronically and, unless there are queries, almost immediately upon receipt at
the Commerce Ministry.  A quota applies to exports of chilled fish (Chapter IV(2)(ii)(d)).
57. Preferential quotas are maintained on exports of textiles and clothing (winter outerwear and
underwear) to Canada;  the quotas are under-utilized and are therefore easily accessible to applicants.Preferential quotas on exports of textile products to the United States were abolished upon entry into
force of the U.S. African Growth and Opportunity Act (AGOA) for Mauritius;  Mauritian exports of
textiles and apparel are now eligible for duty-free access to the U.S. market subject to strict
compliance with the provisions of the AGOA (Chapter II(5)(iii) and Chapter IV(3).  Preferential
quotas also apply on sugar exports to the EU (under the Sugar Protocol to the Cotonou Agreement)and to the United States (Chapter IV(2)(ii)(a)).
Table III.6
Export-controlled goods, as at end 2000
H.S. Code Description
01.01-01.06 Live animals (all species including birds)
02.01-02.10 Meat and edible meat offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies (fresh,
chilled, frozen)
03.01-03.07 All fish and fish products (fresh, frozen, salted)
0.508 Corals and shells (unworked or simply prepared but not otherwise worked or cut to shape)
07.01-07.12 Vegetables (fresh and dried)
09.10 Spices (ginger, saffron, turmeric and other spices classified under HS No. 09.10)
10.06 Rice
11.01 Wheat or meslin flour
16.01-16.05 Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates (smoked, salted, dried,
canned)
17.01 Sugar
17.04 Sugar confectioneries and products with sugar content
20.09 Fruit juices
22.02 Non-alcoholic beverages (soft drinks)
25.05 Sand
25.21 Limestone
25.23 Portland cement
30.01 Organs (animals)
30.02 Serum, samples of blood, biologicals needed for veterinary research vaccines (dead or live attenuated, freeze-
dried or wet form)
50.01-63.10 Textiles and textile articles for export to USA and Canada
67.01 Bird's feathers
96.01 Decorative sea shells
Source: Consumer Protection (Export Control) Regulations.
(iv) Export subsidies, and duty and tax concessions
58. Various incentive schemes are available to Mauritian companies producing for export:  the
Freight Rebate Scheme;  the Export Enterprise Scheme;  the Export Service Zone;  the Offshore
Business Scheme;  the Freeport Scheme;  the Hotel Management Scheme;  and the Hotel
Development Scheme (section (4)(i)).  Moreover, local companies producing primarily for the
domestic market are eligible for reductions of income tax:  30% reduction (i.e. from the standard rate
of 25%, to 17.5%) when exports account for between 10% and 30% of production;  when over 50% ofWT/TPR/S/90 Trade Policy Review
Page 40
output is exported, the tax rate falls to 15%, the sa me rate as that applied to companies eligible for
incentive schemes under the Investment Promotion Act, 2000.
59. The Agricultural Products Export Promotion Authority (APEPA) operated a Freight Rebate
Scheme under which partial refunds of freight costs were granted for selected exports.  The rebate
was:  50% of the air freight for export of fresh fruits and vegetables, including pineapples (around
90% of annual refunds under the scheme), and small chillies;  and 25% for okra, green beans,
avocados, star fruit, mangoes, lychees, and sweet potatoes.  APEPA has ceased operations since
January 2001 and the scheme has been transferred to the Agricultural Marketing Board.  The scheme
is being reviewed.  Table III.7 shows annual refunds under the scheme.  The annual amounts granted
by the State to APEPA were (in Mau Rs):  800,000 in 1997/98;  1,735,000 in 1998/99;  3,363,896 in
1999/2000;  and 2,344,487 in 2000/01.
Table III.7
Refunds under the Freight Rebate Scheme, 1994-2000(Mau Rs)
Products 1994/95 1995/96 1996/97 1997/98 1998/99 1999/2000
Pineapples 89,116.44 1,424,761.73 4,079,475.28 5,581,781.36 7,799,830.12 7,540,539.00
Chillies 10,606.00 118,721.65 287,629.09 313,963.37 229,104.87 102,208.50
Lychees 42,062.50 413,142.19 612,981.86 537,933.37 892,659.37 89,612.22
Green beans 42,062.50 189,703.14 442,257.42 321,362.20 134,216.53 62,394.75
Mangoes .. 33,901.90 84,597.22 53,040.50 54,615.86 73,909.50
Total 183,847.44 2,180,230.61 5,506,940.87 6,808,080.80 9,110,426.75 7,868,663.97
.. Not available.
Source: Information provided by the Mauritian authorities.
60. The Export Enterprise Scheme (commonly known as export-processing zone (EPZ) status) is
the most important incentive scheme in Mauritius;  in 2000, it accounted for 60.5% of the totalamount of customs and excise duty exemptions and 95.6% of the VAT exemptions granted to
"privileged enterprises" (companies producing under incentive schemes).  In Mauritius, EPZ
companies are not located in specified areas and ther efore are rather 'free points' (export enterprises).
In principle, export enterprises may sell up to 20% of their production duty free on the domestic
market, subject to authorization by the Industry Ministry.
28
61. The Export Processing Zone Development Authority (EPZDA) helps export enterprises
achieve international standards of competitiveness by operating an information service, and by
providing technical, advisory, and consulting services.  The EPZDA charges for services it provides.
Grants received by the EPZDA from the Government amounted to (in Mau Rs million):  18,000 in
1995/96;  20,000 in 1996/97;  20,946 in 1997/98;  18,500 in 1998/99;  21,000 in 1999/2000;  and
22,500 in 2000/01.
62. Activities allowed under the Freeport Scheme include warehousing for transshipment,
storage, breaking bulk, sorting, grading, mixing, labelling, packing, repacking, simple assembly, and
provision of facilities for minor processing of goods for re-export.  Companies operating in the
freeport may be 100% foreign owned. The Mauritius Freeport Authority manages and controls thefreeport zones.  It issues licences to traders or tr ading companies to operate in the zones;  allocates
                                                     
28 Under Section 18(2)(c) of the 1993 Industrial Expansion Act, sales of scheduled export products on
the domestic market are liable to payment of customs duties and taxes.  However, sales by export enterprises onthe domestic market, as well as the end-use of their imports, are difficult to monitor given that they are freepoints rather than EPZ companies confined to areas under strict customs administration.Mauritius WT/TPR/S/90
Page 41
land, warehousing space, and other facilities available in the zones;  collects rents on leased land, and
fees and charges on freeport bills and cargo storage;  and works out agreements with third parties to
provide back-up services to traders.
63. Goods stored in bonded warehouses29, manufactured under bond or admitted into a freeport
are exempt from customs duties and taxes if they are to be exported.  Exports are zero-rated for VAT
refund purposes (refunds of VAT on all goods and services incorporated in their production).Exporters are also entitled to duty drawback  on imported inputs used for export production.
Drawback on products exported after manufacture must be claimed from the Comptroller of Customs
within three months from the date of entry for ex port of the goods;  drawback on goods exported in
the same state must be claimed within six months from the time of import.
30  Arrangements must be
made with Customs, prior to export, to determine the proportion of raw materials.
64. Standard drawback rates (of the customs duty) are specified as a percentage of the f.o.b.
export value on certain manufactured exports:  varnish (1.5%);  resins (1%);  detergents (4.5%);
plastic wares, pipes and fittings (2%);  mosquito killer mats (6%);  and aluminium utensils (2%).31  In
2000, the total amount of duty reimbursed under the drawback scheme was some
Mau Rs 11.3 million, of which Mau Rs 9.7 million on goods exported in the same state, andMau Rs 1.6 million on goods exported after manufacture.
32
(v) Export promotion and assistance
65. The Mauritius Export Development and Investment Authority (MEDIA) runs a Trade
Information Centre;  organizes trade missions, prof essional exhibitions abroad, and participation in
fairs;  undertakes market surveys;  and promotes contacts with potential foreign importers of
Mauritian products.33  Since 1998, beneficiary local companies have been charged a participation fee
set at 25% of stand costs for eligible small and medium enterprises, and 60% for large companies.
66. MEDIA maintains offices (antennae) in France, Germany, India, Kenya, Singapore, South
Africa, the United Kingdom, and the United States.  Samples from individual manufacturers are sent
to MEDIA's offices abroad for market testing;  th e related costs, including transport, are borne by
MEDIA.  MEDIA is largely financed by the State (Table III.8);  Mau Rs 40 million (including some
Mau Rs 13.7 million for export promotion) have been granted for 2001/02.
67. The Mauritius Export Processing Zone Association (MEPZA), a private association of export
enterprises, participates in trade missions organized by MEDIA and provides trade information and
training to its members.
                                                     
29 Warehoused goods may be sorted, separated, packed, repacked or undergo such lawful alterations
therein, or arrangements and assortments thereof, as may be necessary for the preservation, sale, shipment, or
legal disposal of the goods.
30 No claim for drawback on goods exported in the same state will be made except where the f.o.b.
value at the time of export is greater than the c.i.f. value at the time of import.
31 Customs Regulations 1989, Second Schedule.
32 Annual amount of drawback payments varied between Mau Rs 3 million and Mau Rs 10 million
during the first half of the 1990s, WTO (1995).
33 Due to the setting up of the Board of Investment, which will henceforth be responsible for the
development and promotion of investment activities in Mauritius, the Mauritius Export Development andInvestment Authority has been renamed as the Mauritiu s Industrial Development Authority and is responsible
for the development and promotion activities in Mauritius, as well as for the setting-up of industrial estates.WT/TPR/S/90 Trade Policy Review
Page 42
Table III.8
Grants received by MEDIA, 1995-2001
Financial yearExport promotion
(Mau Rs'000)Total
(Mau Rs'000)
1995/96 11,805 53,000
1996/97 13,140 58,797
1997/98 8,382 43,596
1998/99 7,785 54,981
1999/00 5,913 49,295
2000/01 14,396 50,082
Source: Information provided by the Mauritian authorities.
(vi) Other provisions
68. Export credits are provided, insured and guaranteed on market terms by commercial banks.
Exporters are free to contract insurance and export credit guarantees with foreign companies.
69. The Mauritius Sugar Syndicate is the sole marketer (exporter and importer) of sugar
(Chapter IV(2)(ii)(a)).
(4) MEASURES AFFECTING PRODUCTION AND TRADE
(i) Incentives
70. Various incentive schemes are in place to encourage investment and improve the
competitiveness of Mauritian products (Table AIII.4).  Aside from product-specific incentives(Chapter IV(2)(i) and (ii)), the Agriculture Development Scheme is the only incentive scheme
available in the agriculture sector.  In light of changing internal and external conditions, Mauritius has
consolidated its legislation on the development of its industrial sector, since 1993, with a view to
providing a new legal framework for industrial m odernization, transfer of technology, upgrading of
small and medium enterprises, integration of non-export-processing zone subsectors into the export-processing-zone sector, and for protection of the environment.
34
71. Incentives granted under the schemes range from customs duty and VAT exemptions to a
reduced corporate tax of 15% instead of the standard rate of 25% (Table AIII.4 and sections (2)(ii)(e);
and (3)(iv)).  Moreover, all industrial companies receive an initial investment allowance for
machinery and equipment of 50%, and an additional 20% investment allowance annually for newmachinery or equipment in the year the expenditure is incurred.  Capital expenditure on
environmental protection technology is eligible for a higher than average initial investment allowance.
72. The Development Bank of Mauritius Ltd grants long-term loans for the implementation of
projects in various sectors.  These loans carry interest at varied rates depending upon the nature of the
project.  Concessionary interest rates are normally charged for certain agricultural projects,
micro-credits, and personal loan schemes.
                                                     
34 Industrial Expansion Act 1993.Mauritius WT/TPR/S/90
Page 43
(ii) Standards and other technical requirements
(a) Standardization, testing, and certification
73. The Mauritius Standards Bureau (MSB) was established in 1975 to promote standardization.35
It provides metrology, standards, testing and qu ality assurance services to the manufacturing and
services sectors.  Under the 1993 Mauritius Standards Bureau Act (as amended in 1999), the MSB is
administered by the Standards Council, consisting of eight members;  the Chairman of the Council isappointed by the Industry Minister.  The Director of the MSB is the chief executive officer,  and is
appointed by the Council with the approval of the Minister.  The Council is assisted by ten technical
committees.  The MSB is 60% financed by the State.
74. The MSB develops voluntary standards.  Draft standards are published;  they enter into force
after due consideration has been given to any written objection or representation.
36  As at June 2001,
Mauritius has some 145 voluntary standards in various technological areas.  The Industry Minister
may, by public notice, declare a standard to be compulsory, after publication of his intention to do so
and after due consideration has been given to any written objections lodged with the Director of the
MSB within two months after the publication of the notice.
75. Compulsory standards apply both to imports and locally produced goods.  As at June 2001,
Mauritius has twelve compulsory standards (Table  III.9), compared with seven in 1995.  Where a
standard is compulsory, local manufacturers may require a licence issued by the Trade Ministry
subject to recommendation by the MSB.  Mauritian standards are revised every five years with a view
to aligning them on international standards;  st andards on labelling and packaging are under review.
Table III.9
Compulsory standards, as at May 2001
Standards No. Year of adoption Product
MS 1 1994 The International System of Units (SI)
MS 4 1985 Specification for starter batteries for internal
combustion engines
MS ISO 4422 1996 Unplasticized PVC cold water pipes
MS 6 1991 Unplasticized sewer and drain pipes
MS 10 1999 Steel bars for the reinforcement of concrete
MS 17 1981 PVC insulated cables and flexible cords for electric
power light
MS 18 1982 Hot dip galvanized coating of iron
MS 30 1983 The labelling of pre-packed foods
MS 34 1990 Hard drawn mild steel wires for the reinforcement of
concrete
MS 37 1985 Specification for white and wholemeal wheat bread
MS 48 1985 Specification for fixed electric and instantaneous water
heater
MS 113 1997 Specification for PVC insulated cords and cables
Source: Information provided by the Mauritian authorities.
                                                     
35 The MSB has been transformed into a corporate body since 1993.
36 The 1999 amendment to the Mauritius Standards Bureau Act 1993 (Section 18) increased from one
month to sixty days the period allocated for public comments on draft standards, proposed amendments,withdrawals or revisions of standards.WT/TPR/S/90 Trade Policy Review
Page 44
76. The MSB also provides certification services on request.  A licence is required to use the
MSB certification mark;  it is granted by the Standards Council.  As at June 2001, 40 licences have
been issued under the MSB Certification Marking Scheme (Mauricert).  The MSB also issues ISO
standards certificates.
77. The accreditation body for Mauritius, MAURITAS, was established in 1998.  The MSB will
seek accreditation of all its testing laboratories as well as its calibration laboratory with MAURITAS.MAURITAS is an Associate Member of the Inte rnational Laboratory Accreditation Cooperation
(ILAC) and member of the International Accreditation Forum (IAF).  In general, Mauritius recognizes
accreditations and certifications issued under the aegis of the ILAC and IAF Mutual Recognition
Agreements (MRAs), respectively.  MAURTIAS is  not yet a signatory of ILAC or IAF MRAs.
78. The MSB provides calibration services for industrial equipment.  The Legal Metrology
Division performs type approval of weighing and measuring equipment.  An affiliate of Société
Générale de Surveillance (SGS Mauritius) inspects and tests (on request) both imported goods and
products for export;  it also provides consultancy services to companies installing ISO standards.
79. Mauritius became a full member of the International Organization for Standardization (ISO)
in January 1995.  In February 2000, the MSB notified acceptance of the Code of Good Practice for the
Preparation, Adoption and Application of Standards to the ISO/IEC.  Mauritius is a member of the
African Regional Organization for Standardization (ARSO).
37
(b) Health, sanitary, phytosanitary, and environmental protection measures
80. The Ministry of Health and Quality of Life controls the importation, manufacture, processing,
storage, distribution, and sale of food, drinks, and certain chemicals, to the final consumer.  The
importation of these products is subject to its approval.
81. A permit from the Ministry responsible for agriculture is required prior to the importation or
exportation of plants and their by-products, animals, and animal products.38  Imports must be
accompanied by a certificate issued in the country of origin not more than fourteen days before the
despatch of the consignment (in the case of plants and plant products).  Following inspection of the
products, a certificate (phytosanitary certificate for plants and their by-products, health certificate for
animals and animal products, and a certificate of analysis for alcoholic beverages) is issued by therelevant authority to attest conformity with cond itions of the permit.  Table III.10 shows inspection,
certification and treatment fees and charges.
82. Imports of live animals are subject to quarantine regulations.  Imports from countries with
diseases of great zoonotic or economic significance are prohibited.  Imports of dogs from Africa,
Madagascar, Latin America, and Asia are also  prohibited on grounds of rabies prevalence.
39
Vaccinations against certain diseases are required depending on the disease picture of the country of
origin.
83. To be imported into Mauritius, pharmaceuticals and pesticides must be registered in their
country of origin.  Only registered pharmacists may import pharmaceuticals;  only persons authorized
by the Pesticides Control Board are allowed to import, manufacture, sell or distribute pesticides.
                                                     
37 Mauritius holds the vice-presidency of ARSO for 2001-03.
38 The permit is issued by the Ministry responsible for fisheries in the case of fish or sea products.
39 A pest-risk analysis is carried out before imports are allowed.Mauritius WT/TPR/S/90
Page 45
Table III.10
Inspection, certification and treatment fees and charges, as at May 2001
Operations Fees/Charges
(Mau Rs)
Simple estimations of pH, moisture, blood cholinesterase level,ash125
Fibre, nitrogen, sugar, fat chloride, radioactivity 300
Alcohol determination in blood, alcohol determination in
alcoholic drinks, heavy metals (e.g. lead) in blood, histamine
level, metals in food, mycotoxin, sweetening agent, preservatives
in food, colouring matter or antioxidant and other foods additives.For complete chemical analysis of foods, pharmaceutical
products, alcoholic beverages, water, salt, rubber and plastic
materials750
Spectrophotometric determinations by atomic absorption or flame
photometer2,000
Gas liquid chromatography analysis, high performance liquid
chromatography analysis, Fourrier transmittance infra red
spectrophotometric analysis (F.T.I.R. Analysis)2,500
Microbiological examinations of food samples 400
Fumigation
For bulk treatment, per 20 metre cube 500
For small parcels or packages each 100
Treatment other than fumigation, provided at the Quarantine
Stations
Commercial consignments each 75
Non-commercial consignments each 10
Other treatment
Travelling expenses, expenses where transport is provided bythe Chief Agricultural Officer, and value of material used plus
for the first hour or part of an hour per man 15
for every hour or part of an hour after the first hour per man 5
Inspection and certification fees
Commercial exports, per consignment 50
Non-commercial exports, per consignment 10
Commercial imports, per consignment 100
Non-commercial imports, per consignment 10
Permits
Import permit, per permit 50
Inspection at premises or active growth inspection
Travelling expenses where transport is provided by the ChiefAgricultural Officer, plus300
per inspection in respect of premises where articles are stored 50
per inspection in respect of a plantation 50
not exceeding one arpent 25
1-3 arpent 50
3-5 arpent 100
5-10 arpent 200
10 arpent and above 300
Quarantine fees
Adult rooted plants, per container or plant 30
Seedlings, cuttings, tubers, bulbs, corns per unit etc. 10
Source: The Food Act 1998, Sixth Schedule;  and the Plants Act 1976, Second Schedule.WT/TPR/S/90 Trade Policy Review
Page 46
84. Mauritius is amending its legislation on health, sanitary, and phytosanitary measures.  The
1998 Food Act has modernized and consolidated the 1940 Food and Drugs Act, and other
similar/related enactments.40  The food legislation applies equally to imports and locally produced
food.  Awareness campaigns, including seminars, were held for all stakeholders, including
manufacturers, importers, and exporters of food commodities.  A joint public/private sector
monitoring unit has been established to monitor the application of the 1999 Food Regulations.  Anenquiry point on sanitary and phytosanitary requirements has been established.  Moreover, a Plants
Bill and a Veterinary Services (Duties and Powers) Bill have been adopted by the Parliament and are
awaiting official decrees.
85. The Government's environment policy is to apply the "polluter pays" principle as widely as
possible.  The laws and regulations on environment protection include:  the 1991 EnvironmentProtection Act;  the 1996 Environment Protection (Drinking Water Standards) Regulations;  the 1997
Environment Protection (Effluent Limitations for the Sugar Industry) Regulations;  the 1997
Environment Protection (Environmental Standards for Noise) Regulations;  and the 1998
Environment Protection (Environmental Standards for Air) Regulations.  Various notices, including
enforcement and prohibition notices, are in place to be served to industries that fail to comply with the
regulations and guidelines.
41  Voluntary Environmental Management Systems Standards (EMS) have
also been promoted.  The MSB has adopted the ISO 14000 standards on environmental management;
Mauritian industries are acceding to these standards.  As from 1 January 2001, a levy of 0.75% has
been collected on the monthly turnover of hotels,  boarding houses, and the stone crushing industry.
86. Mauritius is a member of, inter alia , the International Plant Protection Convention, the
FAO/WHO Codex Alimentarius Commission, the Internat ional Office of Epizootics (OIE), the United
Nations Convention on Biological Diversity, the Convention on International Trade in EndangeredSpecies of Wild Fauna and Flora (CITES), the United Nations Framework Convention on Climate
Change, the 1985 Vienna Convention on the Protection of Ozone Layer, the 1987 Montreal Protocol
on Substances that Deplete the Ozone Layer, the Basel Convention on the Control of Transboundary
Movement of Hazardous Wastes and their Disposal, and the Bamako Convention on the Prohibition
of International Trade in Waste with Africa.
(c) Marking, labelling and packaging
87. Certain locally manufactured and imported goods must bear a label indicating the country of
origin, unless they are second-hand.  Table III.11 lists imports that require origin labels.  Weights and
measures must be in metric units.  In addition, food labels must include the specific name of the food
in English or French, name and address of the manufacturer, ingredients in descending order ofproportion by mass (in general), date of manufacture and minimum durability/sell-by date, net
contents, a code or batch number, and instructions for storage, preparation or use when necessary.
42
Food containing preservatives must be labelled as such.43
                                                     
40 The 1998 Food Act and the 1999 Food Regulations entered into force on 1 January 2000.
41 The guidelines are published for Inland Surface Waters (1998), Coastal Water Quality (1999), and
for Irrigation Water (1999).
42 Mauritian Standard MS 30-1984 on the labelling of prepackaged foods, General Notice No. 1058,
1983.
43 Dun and Bradstreet Inc. (2000).Mauritius WT/TPR/S/90
Page 47
Table III.11
Imports requiring origin labels, as at May 2001
HS No. Description
4202 Bags, trunks, wallets and similar receptacles (leather)
9103 Clocks, clock cases and movements
6906 Conduit pipes
9616 Cosmetics
8214 Cutlery
8712 Cycles
8506 Dry-cell batteries
16, 17, 18, 19, 20 Food, including beverages
64 Footwear
61 Garments
70 Glass
7321 Household appliances and utensils
9613 Lighters
36 Matches
3701 Photographic and cinematographic cameras, projectors and accessories
8525 Radio receivers and transmitters
8212 Razors and razor blades
8519 Record players
8213 Scissors
3401, 11 Soap
3401 Soap detergents
9506 Sports gear and equipment
8520 and 8521 Tape and video recorders and reproducers
8528 Television receivers
5204, 5401, 5508 Thread (embroidery, knitting and sewing)
33 Toilet preparations
82 Tools and implements
95 Toys
4013 Tyres and tubes
9101 and 9102 Watches, watch cases and movements
Source: Government Notice, 1981.
88. Pesticide labels must contain:  the name of the active ingredient and its concentration and
formulation;  the antidote in case of poisoning and a brief description of treatment to be given;
protective clothing to be worn when using the pestic ide;  the interval prescribed between the date of
last application and harvesting or marketing;  the crops on which use of the pesticide is recommended;
measures necessary to ensure safe disposal of packages;  and classification of the pesticide with
regard to toxicity.44
(iii) Competition policy and regulatory issues
89. Mauritius is finalizing draft legislation on competition.  The draft is being vetted by the
Office of the Attorney General;  it is scheduled for introduction into Parliament before the end of
2001.  The draft legislation covers restrictive business practices, such as abuse of monopoly, mergers,
                                                     
44 WTO (1995).WT/TPR/S/90 Trade Policy Review
Page 48
collusive agreements, bid-rigging, and anti-competitive agreements.  An Office of Fair Trading, a
Competition Tribunal and an Advisory Council on Competition and Fair Trading are to be established
once the legislation is adopted.
90. Certain competition aspects are currently covered by the 1980 Fair Trading Act (as amended
in 1988), and the 1998 Consumer Protection (Price and Supplies Control) Act, which replaced the
1991 Act.  The Ministry of Industry, Commerce and International Trade is responsible forenforcement of the Acts.
91. The Fair Trading Act is aimed at ensuring that trade practices do not mislead or confuse
consumers, that they are not detrimental to consumer  interests, and that fixed prices are not exceeded.
The Act prohibits agreements, including exclusive sales arrangements or monopolies, likely to
prevent or distort competition in the production and supply of goods (branded or not) and services.
92. The 1998 Consumer Protection (Price and Supplies Control) Act deals primarily with
monitoring prices and supplies of goods.  Administered by the Price Control Unit (PCU) within the
Ministry of Industry, Commerce and International Trade, price controls in Mauritius still consist of a
fixed maximum price system and a maximum percen tage markup system.  The markup system applies
only to imports, and the fixed maximum price syst em applies both to imports and locally produced
goods.
45  The controlled prices are computed by the PCU and approved by the Minister of Industry,
Commerce and International Trade;  the Consumer Protection Unit within the Ministry ensures that
traders comply with the pricing regulations.46
93. The scope of price control has been influenced by inflation and political events;  the number
of products subject to price control was increased in 2000.  Price controls apply to certain subsidized
products (including agricultural products), or g oods marketed by sole importers or companies
operating under monopoly.  Products subject to the fixed maximum price system are:  aeratedbeverages, beer and stout, bread, cement, concrete blocks, cooking gas, edible oils, fertilizers, flour
(including whole wheat flour), iron/steel bars, mine ral water, onions (other than the type known as
"traditional toupie"), petroleum products, (including kerosene), rice (excluding luxury rice), salted
snoek, and sugar.  Table III.12 lists imported commodities that are subject to the maximum mark-up
system.
Table III.12
Imported commodities subject to the maximum mark-up system, as at May 2001
Commodity Maximum mark-upSpecial allowance on c.i.f. pricea
(%)
School textbooks 20 ..
Tyres and tubes 25 6
Pharmaceutical products 45 5
Simple drugs 35 5
Magazines 45 ..
Helmets 35 5
Table III.12 (cont'd)
                                                     
45 The Ministry of Industry, Commerce and International Trade may establish a Code of Practice to
provide for the method to be adopted for the determination of the maximum recommended retail price of goods
other than controlled goods.  A trader who sells or supplies any goods for which there is a maximum
recommended retail price must affix a label in a conspi cuous place on a specimen on any such goods indicating
the maximum recommended retail price.
46 With the exception of sugar priced below production costs, prices should cover production costs and
allow for markup (Locally Manufactured Goods Regulations of the Supplies Control Act, 1992).Mauritius WT/TPR/S/90
Page 49
Commodity Maximum mark-upSpecial allowance on c.i.f. pricea
(%)
Sport articles
Basketballs 30 n.a
Footballs 30 n.a
Tennis balls 30 n.a
Volleyballs 30 n.a
Soccer shoes 30 n.a
Pétanque balls 42 n.a
Carom balls 42 n.a
Squash balls 42 n.a
Squash rackets 42 n.a
Badminton rackets 42 n.a
Badminton shuttlecocks 42 n.a
Spikes 42 n.a
Training shoes 42 n.a
Tennis rackets 42 n.a
Football jerseys 42 n.a
Boxing gloves 42 n.a
Volleyball nets 42 n.a
Tracksuits 42 n.a
Ceramic tiles 30 6
Sanitary wares 30 12
Vinyl 30 6
Plywood 25 10
Glass panes 50 10
Timber 25 20
Domestic washing machines 35 8
Electrical floor polishers 35 8
Electric irons 35 8
Electric juicers/grinders 35 8
Electric kettles/mixers 35 8
Refrigerators and freezers 35 8
Rice cookers 35 8
Vacuum cleaners 35 8
Fresh fruit .. ..
Infant milk powder .. ..
Prawns and shrimps .. ..
.. Not available.
n.a Not applicable
a Margins allowed on c.i.f. prices before application of the maximum mark-up.
Source: Information provided the Mauritian authorities.
94. According to the authorities, price controls are maintained because of lack of competition,
and to protect consumers against unreasonable prices for strategic imports, staple commodities and
other "essential" products.  The controls are to be abolished gradually as soon as the competition
legislation is enacted and markets become effectively competitive.WT/TPR/S/90 Trade Policy Review
Page 50
(iv) State-owned enterprises and privatization
95. Several parastatal bodies purchase, import, and store "strategic products " (including
commodities subject to price control), and/or supply certain services.  The State Trading Corporation
(STC), with a turnover of around Mau Rs 6 billion47, imports the totality of Mauritius' requirements
for petroleum products, flour and ration rice (rice with 25% broken)48, and 50% of cement
requirements (Table III.13).  These products are considered as "essential" goods for which regularityand reliability of supply must be assured.  The authorities also justify STC's monopoly citing the
sustainable quantities of the goods it enables Mauritius to import and the resultant cheap prices (due
to bulk purchases) STC obtains from foreign suppliers.
Table III.13
Purchases by the State Trading Corporation, 1991-2000
(Million tonnes)
Financial year 1991/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 1999/00
Ration rice 57,308 68,528 66,580 38,800 57,039 50,150 45,521 32,444 50,402
Luxury rice 6,000 16,852 8,709 24,663 18,619 25,850 13,500 5,500 5,475
Imported flour 7,700 7,204 .. .. 5,586 11,970 14,007 10,600 ..
Domestic flour .. .. 69,767 70,693 70,173 65,358 67,023 71,165 89,354
Cement STC 245,613 279,403 302,752 210,767 193,069 161,021 322,650 297,493 288,801
Petroleum
products557,309 561,061 553,882 624,611 667,890 693,886 699,638 785,387 794,584
Other 10 237 .. .. .. .. .. .. ..
.. Not available.
Source: Information provided by the Mauritian authorities.
96. STC sells the staple food (flour, ration rice) to private wholesalers and bakers, who then
distribute the products to retailers.  The retail prices of ration rice and flour are subsidized.  Imports of
luxury (Basmati) rice were liberalized in 1997.  Therefore, the monopoly formerly held by STC over
the importation of this product was abolished;  STC currently competes with private traders in the
importation of Basmati rice.
97. Mauritius Portland Cement Company (MPCC), and Ciments de l'Océan Indien Limitée (since
2000) import the remaining 50% of Mauritius' requirements for Portland cement;  the STC's import
price serves as the basis for the local price.  Petroleum products are sold by STC to local distributors
at a set price, with price controls maintained along the distribution chain.  The Agricultural Marketing
Board (AMB) still holds a monopoly over, or still m onitors, the importation and/or marketing of the
main controlled agricultural products, such as table potatoes (section (2)(v)), onions and garlic
(Table III.14), and maize, turmeric, and cardamom (Chapter IV(2)(i) and IV(2)(ii)(c)).
98. Other parastatal bodies through which the State intervenes in economic activities (e.g bodies
that market or supply products or services) include the Tea Board, the Tobacco Board, the Mauritius
Meat Authority, the Central Electricity Board, the Central Water Authority, the Waste Water
Authority, the Development Works Corporation, the National Transport Corporation, Air Mauritius,
the Sugar Bulk Terminal Corporation, the Cargo Handling Corporation, the Mauritius FreeportAuthority, the State Investment Corporation, and the Mauritius Telecommunications Authority
(Chapter IV).  The Mauritius Sugar Syndicate (a private association) is in charge of sugar marketing,
                                                     
47 STC employs 290 persons.  Its turnover is estimated at Mau Rs 6.6 billion, its total purchases at
Mau Rs 5.9 billion, and its value-added to the economy at Mau Rs 700 million for 2000-01.
48 The vast majority of imported rice (two thirds of domestic consumption).Mauritius WT/TPR/S/90
Page 51
including export, in Mauritius (Chapter IV(2)(ii)(a)).  The State Investment Corporation Limited
(SIC) is the Government's main investment arm.  It  invests in sectors considered to be of strategic
importance for the socio economic development of the country, and participates in the equity capital
of selected pioneering enterprises.  The SIC does not benefit from any preferential regime.  It is
incorporated under the Companies Act, operates along commercial lines and is subject, like any
company, to taxation and other statutory and fiduciary obligations.
99. The 1997 White Paper on Privatization and Workers' Participation proposed an Economic
Restructuring Action Plan (ERAP) that would create a new synergy in the economy.49  The proposals
contained in the White Paper and the ERAP have not so far been translated into policy measures,
neither have they been institutionalized or implemented.  In the 2001/02 Budget Speech, the
Government announced its intention to identify a strategic partner of international repute for each ofthe following public enterprises:  the Cargo Handl ing Corporation, the Central Electricity Board, the
Central Water Authority, and the Postal Services.
Table III.14
Onions and garlic imported by the Agricultural Marketing Board, 1995-2001(Million tonnes)
Onions Garlic
YearLocal production Total importation Local production Total importation
1995 5,974 4,947 .. 611
1996 6,067 5,487 .. 922
1997 5,036 6,202 .. 1,000
1998 6,727 7,232 131 1,010
1999 9,066 9,310 38 1,243
2000 11,400 7,763 46 1,229
2001a11,000 8,125 30 1,200
.. Not available.
a Estimation.
Source: Information provided by the Mauritian authorities.
100. Notwithstanding the above, 40% of the capital of Mauritius Telecom was sold to France
Telecom through a competitive bidding process;  the proceeds have been used to finance theGovernment's development projects.  Prior to 1997, the shareholding of Air Mauritius and the State
Bank of Mauritius Ltd had already been opened to the public through their listing on the domestic
Stock Exchange.
(v) Intellectual property rights
101. Intellectual property rights are protected under the 1875 Patents Act (as amended in 1983),
the 1868 Trade Marks Act (as amended in 1993), and the 1986 Copyright Act (as amended in 1988).
Table III.15 presents data on registrations of patents and trade marks.
50
102. The Patents Act provides for a nationally independent system of patent protection51;  and a
patent term of 14 years, which may be extended for a further period of 14 years.  Under the Patents
Act, assuming the foreign patent has not expired, patents are granted to the inventor only.  A patent is
invalid or void if the patent or the mode in which it is exercised is mischievous to Mauritius or
                                                     
49 Republic of Mauritius (1997).
50 See WTO (1995) for details on registration procedures.
51 Patents and trade marks must be registered in Mauritius to be afforded full legal protection.WT/TPR/S/90 Trade Policy Review
Page 52
generally prejudicial to the public;  or if the patentee has committed a breach of any special condition
under which the patent was originally issued or extended.  A patent holder may proceed against any
infringer before the Supreme Court.  An injunction may be issued prior to the initiation of court
proceedings.  A finding in the patentee's favour entitles him to full-cost reimbursement.  Sanctions
against infringements include fines of up to Mau Rs 100 and imprisonment for a term of up to two
years.
103. The Trade Marks Act provides for protection for a term of seven years, renewable for
fourteen-year periods.  Under the Act, trade mark forgery or false application of a trade mark to
goods, with intent to defraud, constitutes an o ffence.  Customs officers may detain import of such
goods.52  Sanctions against infringements of the Act may consist of fines not exceeding
Mau Rs 1,000, imprisonment for a term of up to two years, and forfeiture of every chattel, article,instrument and thing by means of or in relation to which the offence has been committed.  The court
may order any forfeited articles to be destroyed or disposed of.
Table III.15
Registration of intellectual property rights, 1995-99
1995 1996 1997 1998 1999
Patents
Applications 7 4 15 15 30
G r a n t s 3413 8
Trade Marks
Applications 891 991 1,044 1,108 1,184
Grants 501 488 648 497 712
Renewals 364 372 412 391 458
Source: Information provided by the Mauritian authorities.
104. In July 1997, a new Copyright Act replaced the 1986 Act (amended in 1988).  The 1997
Copyright Act was enacted with a view to aligning Mauritius' legislation on copyright on similar
provisions in the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
The 1997 Act provides protection for artistic, literary or scientific work, or a derivative work.  The
Act provides for protection for the lifetime of the author of a work (or of the last surviving author inthe case of joint authorship), and for 50 years thereafter.  Sanctions against infringements of
copyright, which increase with each conviction, consist of fines of up to Mau Rs 500,000 and
imprisonment for up to eight years.  Civil remedies include payment of damages, injunction, forfeiture
of any infringing copy, and of apparatus, article or thing used to make the infringing copy.
53  T h e
Customs Administration can seize infringing imports or exports with the help of the police.
                                                     
52 The importation of manufactured articles bearing the trade mark of any manufacturer or dealer,
calculated to impart to those articles a special character of manufacture which they do not actually possess, is
prohibited (Article 63 of the 1988 Customs Act).
53 An action by a copyright owner or an exclusive licensee for an infringement of copyright must be
commenced by plaint with summons before the Supreme Court, Section 41 (Civil remedies) of the 1997Copyright Act.Mauritius WT/TPR/S/90
Page 53
105. In Mauritius, no provisions exist under the current legislation with regard to parallel imports.
Counterfeiting mainly affects copyrights (e.g. sound recordings and video cassettes) and trade marks
("Ralph Lauren" is a well-known case).54
106. Mauritius is finalizing new legislation on patents and trade marks, and drafting legislation on
industrial designs, geographical indications, and layout design of integrated circuits with a view to
complying with its obligations under the WTO Agreement on TRIPS.
107. Mauritius is a member of the World Intellectual Property Organization (WIPO), the Paris
Convention for the Protection of Industrial Propert y, the Universal Copyright Convention, and the
Bern Convention.
                                                     
54 A workshop was organized for police and customs officers to further combat counterfeiting,
L'Express  No. 13903, Thursday 15 March, and No. 13906, Sunday 18 March 2001.