RESTRICTED
WORLD TRADE WT/ACC/SYC/3
22August 1996
ORGANIZATION(96-3279)
Original: English
ACCESSION OFSEYCHELLES
Memorandum ontheForeign Trade Régime
TheMemorandum ontheForeign Trade Regime submitted bytheGovernment oftheRepublic
ofSeychelles isreproduced hereunder.
__________________
Inaccordance with theprocedures indocument WT/ACC/1, members arerequested to
communicate totheSecretariat by11October 1996, anyquestions theymaywishtoputconcerning
thematters dealt withintheMemorandum, fortransmission totheauthorities oftheRepublic of
Seychelles.WT/ACC/SYC/3
Pageii
TABLE OFCONTENTS
Page
I. INTRODUCTION 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. Economy
(a) General description 1
(b) Current economic situation 3
2. Economic Policies
(a) Main directions ofongoing economic policies
(i) Neweconomic policy 5
(ii) Pricing policy 5
(iii) Economic development plans 6
(iv) Regional development plans 6
(v) Sectorial priorities 7
(b) Monetary andfiscal policies
(i) Monetary policy 7
(ii) Fiscal policy 8
(c) Foreign exchange payment andcontrol regime
(i) Acquiring foreign currency 9
(ii) Foreign exchange transactions 9
(iii) Administration ofcontrol 10
(iv) Imports andimport payments 10
(v) payment forinvisibles 10
(vi) Exports andexport proceeds 10
(vii) Proceeds from invisibles 11
(viii) Capital 11
(ix) Gold 11
(x) Relations withtheInternational Monetary Fund 11
(d) Foreign anddomestic investment policies 11
Investment Development Advisory Service (IDEAS) 12
Seychelles International Business Authority (SIBA) 12
Seychelles Industrial Development Corporation (SIDEC) 13
Development Bank ofSeychelles (DBS) 14
Investment andTrade Promotion Division (ITPD) 14
(e) Competition policies 14
3. Foreign Trade inGoods andServices
(a) Volume, value, exports andimports, foreign trade balance 14
(b) Structure oftrade 15
(c) Trade bygeographic areas anddynamics oftrade 15
4. Domestic Trade inServices 15
5. Financial Movements ofNationals Working Abroad 15WT/ACC/SYC/3
Pageiii
6. Growth inTrade ofGoods andServices 16
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE INGOODS AND TRADE INSERVICES
(a) Trade policy 20
(b) Trades taxonimports andrules governing imports 21
(i) Tariff nomenclature 21
(ii) Customs valuation 22
(iii) Special tariff exemption fordevelopment purposes 23
(iv) Anti-dumping, countervailing andsafeguard measures 24
(v) Non-tariff measures 24
(c) Rules governing exports 25
IV. POLICIES AFFECTING FOREIGN TRADE INGOODS
3. Internal Policies Affecting Foreign Trade inGoods
(a) Industrial policy
General description 26
(b) Technical regulations andstandards 27
(c) Sanitary andphytosanitary measures 27
(d) Trade-related investment measures 28
(e) State-trading practices 28
(f-g) Freezones andfreeeconomic zones 28
(h-i) Trade-related environmental policies andmixing regulations 28
(j-k) Government-mandated counter-trade andbarter,
andtrade agreements leading tocountry specific quotas allocation 28
(l) Government procurement practices 29
4. Policies Affecting Foreign Trade inAgricultural products 29
5. Policies Affecting Foreign Trade inOther Sectors
Fisheries policy 30
V. TRADE-RELATED INTELLECTUAL PROPERTY RÉGIME
1. General Description
(a) Intellectual property policy 31
(b-c) Government Ministries responsible forpolicy formulation
andimplementation andsignature ofInternational
Conventions relating tointellectual property rights 31
(d-e) Application ofnational andmost-favoured nation treatment to
foreign nationals andfeesandtaxes 31
2. Substantive Standards ofProtection
(a) Copyright andrelated rights 32
(b) Trade marks relating togoods andservices 32
(e) Patents forinventions 33
(f-h) Plants variety protection, layout designs ofintegrated
circuits, requirements onundisclosed information 33WT/ACC/SYC/3
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3. Other Categories ofIntellectual Property andMeasures to
Control Abuse ofIntellectual Property Rights 33
4. Enforcement: Civil andCriminal Procedures andRemedies 33
5. Laws, Decrees, Regulations andOther Legal ActsandStatistical Data 34
VI. TRADE-RELATED SERVICE REGIME
1. General Description 34
2. Market andregulatory structure oftheprominent services sectors 34
(a) Financial services
(i) Banking andfinancial system 35
(ii) Insurance andrelated services 35
(iii) Securities market 36
(b) Communication services 36
(c) Professional services 37
(i) Legal services 37
(ii) Medical andveterinary services 37
(iii) Architectural, engineering andrelated services 37
(iv) Management consulting andrelated services,
including accounting services 37
(d) Construction andrelated services 38
(e) Tourism andrelated services 38
(f) Transport services
(i) Land transport services 39
(ii) Maritime transport services 39
(iii) Airtransport services 39
3. Monopolies andExclusive Suppliers andSafeguard Measures 40
4. International Transfers andPayments forCurrent Transactions ofServices 40
5. Capital Transactions 40
6. Government Procurement ofServices andConsumer
Subsidies forEssential Services 40
Market Access andNational Treatment
(a-d) Limitations onthenumber ofservice suppliers; onthe
totalnumber ofservice transactions orassets; onthetotal
number ofservice operations oronthetotalquantity of
service output; andonthetotalnumber ofnatural persons
employed inaparticular sector 41
(e) Restrictions on,orrequirements orspecific types oflegal
entity ofservice provider 41WT/ACC/SYC/3
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(f) Limitations ontheparticipation offoreign capital 41
Most-Favoured-Nation Treatment 41
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
1. Bilateral orplurilateral agreements relating toforeign trade
ingoods andservices 41
2. Economic integration, customs union andfree-trade areaagreements 42
3. Labour markets integration agreements 42
4. Multilateral economic corporation 42
ANNEXES
Annex 1 Macroeconomic indicators: 1991-1995
Annex 2 ListofLaws andRegulations
Annex 3 Information onImport Licensing Procedures
Annex 4: Table 1 Summary ofExternal Trade: 1979 -1994
- Table 2 Value ofImports bySITC Section: 1990 -1994
- Table 3 Value ofImports (c.i.f.) bycountry ofOrigin: 1990 -1994
- Table 4 Domestic Exports bymain countries ofdestination: 1990 -1994
- Table 5 Value ofRe-Exports: 1989 -1994
- Table 6 Re-Exports bySITC Section: 1994
- Table 7 Balance ofpayments: 1990 -1995
- Table 8 Re-Exports: 1990 -1995
- Table 9 Domestic Exports: 1990 -1995
- Table 10 Imports (c.i.f.) -bySITC Section: 1990 -1995WT/ACC/SYC/3
Page1
I. INTRODUCTION
Seychelles isanarchipelago occupying theWestern partoftheIndian Ocean andspread over
anExclusive Economic Zone (EEZ) ofnotlessthan13million square kilometres. Themain partof
thearchipelago whose landmass isapproximately 155square kilometres issituated between 4and
5degrees south oftheequator atalongitude between 55and56degrees East. Themainisland, Mahe,
liessome1800kmEastoftheEastAfricanCoastatMombassa(Kenya),totheNorth-EastofMadagascar
onthewhole. Seychelles comprises more than100islands whose mostarecoralline andarespread
overalarge areatowards thesouth andsouth-east. However, some 70ofthese islands aregranitic
andarefound within aradius of50kmfrom themain granitic island ofMahe.
Thepopulation which, in1994, wasestimated at73850 isconcentrated onMahé where over
80percentofSeychelloisinhabitsandworks.DescendedfromtheoriginalFrenchsettlers,theirAfrican
slaves andBritish sailors andtraders, theSeychellois mixture hasbeenalsoenriched bytraders from
India andChina aswellasArabs, allintermingling toproduce amulti-faceted andalmost unparalleled
society. Thecommon language iscreole, theoutcome ofearly French influence andadministration.
Nevertheless,Creole,EnglishandFrencharetodaytheNationallanguagesoftheRepublicofSeychelles,
andthiswitnessed clearly thesuccessive French andBritish administration inthearchipelago until
itsindependence in1976.
Asmany other Small-Island States, Seychelles isover-dependent ontourism andfisheries and
isconsequently highly vulnerable toexternal economic factors. Similarly, theexport isverynarrow,
consisting mainly ofexports offish,fisheries products, copra, some manufactured products etc.In
thiscontext, although considerable progress hasbeen made inexpanding thecountry 'seconomic
structure, theeconomy remains yetuncomfortably anddangerously dependent ontheperformance of
those sectors.
Forthese reasons, inorder tofurther broaden anddiversify theSeychelles economic structure
theSeychelles government hasputintoplace aprogramme ofliberalization ofthenational economy
whichwillacceleratethediversificationprocessfirstinitiatedwiththe1985-1989NationalDevelopment
Plan. Given theimportance oftheinternational tradeinthetoday'sdevelopment strategy, itgoeswithout
saying thattheaccession ofSeychelles intheWorld Trade Organisation constitutes oneofthemajor
components ofnational programme ofeconomic liberalization anddiversification.
TheSeychellesgovernmentrecognizesthattheunilateralliberalizationcouldgeneratesignificant
benefits fortheSeychelles economy, butitisalsoconvinced thatthecombination oftheunilateral
liberalization withthemultilateral trade negotiations willbeyond doubt increase thegains from
liberalization anddiversification, andwillleadaneconomy asSeychelles 'towards thesustainable
development andbestperformance. Achieving higher ratesofgrowth andtheability toovercome
debt-servicing problems areclosely linked withexport growth ratesandaccess tomoresecure markets.
ForaSmall-Island States asSeychelles, thebestwaytoachieve these crucial objectives andbalance
istointegrate theworld economy andthemultilateral trading system through theWorld Trade
Organization.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. Economy
(a) General description
Seychelles enters the1990'swelladvanced along aprocess oftransformation aiming toincrease
standards ofliving, ofensuring thelongtermeconomic andecological viability ofthenation, andat
enabling thecountry tocompete effectively ininternational markets. Thisprocess oftransformationWT/ACC/SYC/3
Page2
hasbeenamulti-dimensional one,entailing changes inmany political, economic andsocial fields and
institutions throughout thelast19years.
TheSeychelles economy isprimarily services -oriented withtourism accounting forover
70percentofforeign exchange inflows. Over thelastfewyears, thegovernment hasattempted to
increase theeconomic basebydeveloping other sectors, notably fisheries which issecond pillar of
theSeychelles economy.
Economic growth inSeychelles hasbeenvigorous anduninterrupted sincethecountry emerged
from theeffects oftherecession inEurope intheearly years 1980's.
Between 1983and1987, inrealterms, theaverage annual growth ratehasbeenof6percent,
during thesame period therateofpopulation growth hasbeenof0.8percent,whatgenerated avery
marked increase intheeconomy activity ofSeychelles interms ofpercapita GDP. Thestrong growth
inGDP experienced earlier inthe1980'scontinued during 1988 and1989. Asaresult, although
Seychelles isasmall country highly dependent ontourism andfisheries receipts, which haveraised
earnings andliving standards substantially inthepast19years, itspercapita income, about US$6,000,
continues tobeoneofthehighest inAfrica.
Thissignificant progress andperformance have been realised withastrong government
intervention intheeconomy andthedominance ofthepublic sector, which werethedirect consequences
oftheunder- developed social andeconomic infrastructures, lackofinstitutions abletoinitiate and
sustain development andofthesevere shortage oftrained personnel inherited in1976 bythenewly
independent Republic from itslastcolonial power.
WithaviewtoexpeditingtheintegrationofSeychellesintheworldeconomythroughinvestment,
production andtrade, since 1990, various efforts havebeenmade orareunder waytoliberalize the
Seychelles economy, encourage private sector activity andreduce thesizeofthepublic sector. To
thisend,bothgovernment expenditure exceeding 50percentofGDP inthepastfewyears and
government revenue budgeted todecrease considerably in1995 and1996, respectively.
Itisbeyond doubt thattourism hasbecome asignificant force inthetoday world economy
andpromises tobecome evenmore important inthenextcentury. Since theearly 1970's,tourism
hasplayed asignificant roleinthedevelopment ofSeychelles. Itistoday theprincipal foreign exchange
earnerforthecountry.Thedirectrevenuefromthissectoranditsrelatedactivitiesrepresents70percent
ofallforeign exchange earnings and18percentofalldirect employment inthearchipelago.
Inorder toreduce thedominance oftourism, bothasanemployer oflabour andamainsource
offoreign exchange, initsneweconomic policy, theSeychelles Government isactively pursuing two
approaches. Firstly, itcontinues todiversify economic activity, andspread theeconomic basemore
widely inorder toovercome constraints created bySeychelles isolation andthevulnerability ofits
economy toexogenous economic factors. Secondly, through diversifying tourist markets andbytapping
newniches inthetourist markets suchasFarEast,India, South Africa, Israel etc.which arethemselves
lessvolatile thanEuropean market, atpresent time, themostimportant tourist market forSeychelles.
Among other things, themost obvious sources ofeconomic opportunities inSeychelles are
marine-based. Itisfromthemarine sector thatthecounterbalance tothecurrent dominance oftourism
could mostprominently come. Thisiscurrently oneofthemain areas offocus inSeychelles forthe
development andoperationalization ofalternate economic opportunities. Overall, thiswould appear
tobeafruitful avenue toexplore being bothanareawhere Seychelles would seem tohaveanatural
comparative advantage forthelongrun,andanareathatcurrently appears tobeconsiderably
underdeveloped, given thatitspotential. Forthese reasons, theSeychelles isimplementing astrategyWT/ACC/SYC/3
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toestablish Victoria asamajor marine service centre forbothshipping andindividual fishing inthe
Indian Ocean region, andofcourse, todevelop Seychelles asatrading hub,animportant transhipment
centre fortradebetween Africa, South AsiaandthefarEast, theforthcoming trading golden triangle.
Ithasalsorather dramatically made themove intotunaprocessing, making processed fishnowthe
largest source ofmerchandise exports, inthecourse ofasingle yearcompletely overwhelming traditional
cropexports asasource offoreign exchange. Asthesecond most important sector aftertourism in
terms offoreign currency earnings andprovision ofemployment, thefishing sector willcontinue to
receivecloseattentionbytheSeychellesgovernment.Seychellesisalsoactivelyexploringanddeveloping
other marine-based opportunities suchasoilprospection, shipbuilding, shiprepair, registration of
merchant andpleasure ships, ocean mineral exploitation, aquaculture andofcourse industrial fishing.
(b) Current economic situation
Theeconomy ispresently going through adifficult phase, primarily duetoasevere foreign
exchange shortage which contributed significantly tothestagnancy intheeconomy in1994, butthe
lastquarter of1995 showed certain improvement inrealeconomic activity.
In1994 and1995thedevelopments ofthemacroeconomic indicators andtrends weremixed.
AnR18million fiscal surplus wasrecorded in1994, equivalent to0.7percentofestimated GDP.
Thefiscal outcome for1995 hasbeenasurplus of22million equivalent to1percentofGDP. This
positiveoutcomestemmedfromasharpdecreaseinexpenditurecoupledwithalargeincreaseinrevenue.
Thedecline inspending wasmainly attribute toafallinexpenditure oncapital projects. Theincrease
inearnings stemmed mostly from salesofassets, asgovernment privatised portservices partofthe
hotel sector andother State-owned enterprises. Asaresult, asubstantial portion ofthedomestic debt
hasbeenrepaid. Thisreflects thelandable policy oftheSeychelles government tomaintain fiscal
disciplinary andefficient economic management. Itshould, however, benoted thatthe1996 budget
projects asurplus ofR35,000,000.
There wasa21percentmonetary expansion in1994, mainly duetotheCentral Bankincreasing
itsholdings ofgovernment debtbyR192million, equivalent to83percentofthetotalexpansion.
Domestic credit remains theprimary explanation fortheliquidity growth. Onapositive note, credit
totheprivate andparastatal sectors havealsocontinued torise.
Theincrease inthemoney supply hasalsohadsevere repercussions intheexternal sector.
Firstly, theincrease inunmet demand forforeign exchange hashampered economic activity. Secondly,
thesurplus intheservices account decline inperdiemexpenditure ofvisitors through official channels.
After anexceptionally goodyearin1993, partly duetoexceptional circumstances associated withthe
Indian Ocean Games, visitor arrivals andnights declined in1994; however, onahistorical basis,
performance wassatisfactory asboththese measures were attheirsecond highest levelever.
Inthecourse ofthelastyear, arrivals andvisitor nights havebothincreased -by10percent
and2percentrespectively. However, thishasnotbeentranslated intoincreased perdiemexpenditure
which hasfallen by21percentduring thatperiod. Theprimary explanation forthedecline inper
diemexpenditure inthefaceofrising visitor arrivals andvisitor nights, istheparallel market forforeign
exchange which hasbeeninexistence since 1993andwhich hasbecome more active overthelasttwo
years. However, efforts havebeentaken tocurbparallel market activities; eg.itisnowillegal tobuy
andsellforeign currencies except through anauthorised dealer (seebelow).
Onthepositive side,thecurrent account deficit narrowed significantly in1994, primarily due
toa15percentdecline inimports. Exports rosemarginally, mainly onaccount ofaverylargeincrease
insalesofcanned tuna. Thecurrent account deficit hasnarrowed further in1995, asimports have
declined further whilst exports havemore orlessmatched lastyear'slevel. Since 1994thegovernmentWT/ACC/SYC/3
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hasalsoreduced official debtusing theproceeds from salesofassets toforeign groups, andpartof
international reserves heldbytheCentral Bank. Thishasdiminished official reserves which, bythe
endofSeptember 1995, stood atR134million, equivalent to6.3weeks ofimports.
Thestrong monetary expansion hasnotmanifested itselfthrough priceincrease, which remained
fairly stable throughout 1994 andagain in1995. Thisismainly attributed tothestrong rupee policy
-maintained bythegovernment foralmost twodecades -coupled withamaximum mark-up control
onallimported commodities. Thelowinflation since 1994isalsopartially theresult ofagovernment
decision in1993 toreduce theprice of"essential" commodities suchasrice,margarine, sugar, fruits
andvegetables, andother staple foods. Thatmeasure hasbeenextended toother essential commodities
suchaspoultry, milk,pasta andcereals, canned meats etcbythe1996 budget.
Efforts torestrain liquidity growth havebeenmade since1994. Apipeline scheme forforeign
exchange requests wasintroduced inApril 1994. Under thisscheme therupee equivalent offoreign
exchange requests aredeposited attheCentral Bank, andthusremoved fromcirculation. These efforts
havebeeneffectiveinthatrupeebalancesinpipelinedepositscannotbeusedtocreateadditionalliquidity.
However, theyhave been more thanoffset bythecontinuing increase inCentral Bank credit of
government.IntheyearendingSeptember,itroseby42percentrelativetotheprevioustwelvemonths.
Asexpected thatliquidity growth hasbeendampened in1995 andthishas,tosome extent,
materialised inthatthemoney supply, intheyearuptoSeptember 1995, hasincreased by14percent.
Thismeasure isofutmost importance toretain credibility ofthestrong rupee policy, which hasso
wellserved thecountry inthepastbyproviding forastable priceenvironment, animportant prerequisite
forsustainable growth ineconomic activity andemployment.
Thehighinterest ratestructure inSeychelles haspartially beencause ofsluggish economic
activities. Thehighlending ratemakes credit totheproductive sectors (private andparastatal sectors)
theexception, thepurchases ofgovernment securities therule-thelatter accounted for78percent
ofcommercial bankcredit in1994. Lending bytheDevelopment Bank ofSeychelles (DBS) hasto
some extent compensated forexpensive credit bycommercial banks byproviding credit forcapital
purposes ataslightly lower interest rate:12percent onthegreat majority ofloans in1994 and1995.
TheDBS advances totheproductive sectors lastyearamounted toslightly lessthantwothirds of
commercial bankcredit tothose sectors.
Thegovernment sector 'scontribution toGDPhasprobably beeninconstant decline since1994
asahiring freeze wasimposed aspartofthepackage offiscal restraint. Artisanal fishing continued
todecline lastyearinspiteofanincrease infishexports. Industrial fishing catch andtranshipment,
however, increased slightly inspiteofthedeparture oftheJapanese fleetfromSeychelles waters last
year.
Developmentsintheagriculturalsectorlastyearweremixed.Livestockandcinnamonperformed
wellbutproduction ofother crops wasstagnant ordeclined. However, preliminary indications show
thatproduction offruits andvegetables haveincreased thisyear.
Industrial activities havealsodecline sincelastyearasinputs continue tobescarce anddemand
failing. Investment hasbeenstagnant overthelastyearorsoandagain thehighborrowing costs and
theforeign exchange shortage explains this.Thelatter represents asignificant barrier totheacquisition
ofmachinery, equipment andrawmaterials, which inmostcases havetobeimported. However, in
spiteofthose constraints, asurvey ofcompanies conducted earlier thisyearbytheMinistry ofIndustry
indicated thatthere havebeensome notable developments inthemanufacturing andindustrial sector
overthelastyear.WT/ACC/SYC/3
Page5
2. Economic Policies
(a) Main directions ofongoing economic policies
(i) Neweconomic policies
Thegovernment, cognisant ofthestructural problems facing theeconomy, hastaken some
important stepstoenhance productivity andfacilitate private sector activity. Inthiscontext, stevedoring
andshorehandlingatPortVictoriawereprivatisedin1994.Togetherwithstreamliningandsimplification
ofmarine charges, government expects competitiveness toimprove considerably inthefuture andsigns
tothiseffect arealready evident. Acomprehensive privatisation programme ofvarious sectors isalso
being pursued withthetourism andtheagricultural sectors attheforefront. Major efficiency have
resulted from these measures.
Inagriculture, government isassuming theroleofafacilitator, creating anenabling environment
toallow private sector farmers toplayamore active andprominent roleinsustaining thecountry 's
demand foragricultural produce. Tothisend,theMinistry ofAgriculture 'sIntegrated Agricultural
Development Project isassisting infunding thecostofroads, drainage andprovision ofirrigated water
invarious parts ofthecountry.
Theauthorities arealsoembarking onamajor exercise toincrease investment inSeychelles
including developing theoffshore industry (seethesection oninvestment initiatives). These new
initiatives constitute thecornerstone ofthegovernment 'sstrategy tore-activate theSeychelles economy,
andtomove towards greater diversification ofeconomic activities, particularly inexport andforeign
exchange generating sectors. Arange ofmodern legislations hasbeen introduced tosetupan
International Business Centre toprovide offshore services tointernational businesses andinvestors
participating intheseinitiatives. Thisstrategy encompasses offshore companies registered inSeychelles,
anoffshore trade zone, theregistration ofships andaircrafts, offshore banking andinsurance. To
accompany those measures, budgets ofgovernment ministries anddepartments werereduced in1995
and19996, respectively.
(ii) Pricing policy
Prices oflocalgoods andservices aredetermined freely bythemarket forces whereas imported
products aresubject toprice control bythegovernment. Controlled prices taketheformofthesetting
offormula forthecalculation ofprices, thereistherefore amaximum mark-up of30percentonimports
andtheConsumer Relations UnitoftheMinistry ofFinance andCommunications isresponsible for
ensuring thatbuyers arenotovercharged. Overcharging issubject topenalisation. Theadverse effects
ofrestricted economic competition andtheunusual market situation prevailing inSeychelles arethe
primary justification ofthisprice control onimported products.
Infact,themainandsolereason forthemaintenance ofthepricecontrol onimported products
istoprotectconsumers,notablylower-incomegroups,fromthehighlyplannedpricevariationsgenerated
bythelackoflarge-scale retailing tosecure economies ofscale. Thesmall sizeoftheSeychelles '
domestic market (about 73,000 people), thatis,thesmall number ofbothbuyers andsellers constitute
anunavoidable inducement tosuppliers andretailers torestrict supply inorder tokeepuptheprice
atthedetriment ofconsumers, thelatter notbeing strong enough topersuade suppliers andretailers
toreduce prices intheirfavour. Generally speaking, pricecontrol isanintegral partofthegovernment
social policy, which isfirstly designed toreduce thecostofliving forthelesswell-off andneedy
members oftheSeychelles society inorder tosafeguard thenecessary social peace. Given thatthere
isnospecific legislation dealing withrestrictive practices andmonopoly inSeychelles, thegovernment
iscompelled touseprice control tocorrect imperfect competition created bymonopolistic practices
ofthelocalwholesalers andretailers.WT/ACC/SYC/3
Page6
(iii) Economic development plans
TheMinistry ofPlanning andExternal Relation hasjustcompleted thePublic Sector Investment
Programme (PSIP) for1995-1997, which setsoutexpected government capital spending forthenext
twoyears.
(iv) Regional developments plans
AkeyaspectoftheSeychellesGovernment'sstrategyvis-à-vistheregionaleconomiccooperation
andintegration istherecognition ofitsdynamic potential whereby developing countries, notably small
ones, canbreak outoftheirnarrow national markets andjointheleague ofcountries striving forgreater
prosperity fortheirpopulation. Forthese reasons, itistheSeychelles Government 'spolicy toassess
firstthecosts andbenefits ofanyparticipation inanyregional groupings. Onaregional basis,
Seychelles 'participation inthedifferent regional trade organisations canbesummarised asfollows:
PTA andCOMESA
Seychelles hasofficially acceded tothePreferential Trade AreaforEastern andSouthern Africa
(PTA) inJune1993, buthasnotsigned theCOMESA Treaty which hastransformed PTAintoCommon
Market forEastern andSouthern Africa (COMESA), which formally came intoexistence inDecember
1994.
Cross Border Initiative (CBI)
TheTechnical Working Group (TWG) oftheCBI,co-sponsored bytheWorld Bank, theIMF,
theAfrican Development Bank andtheEuropean Union, hascompleted adraftCBIpolicy letter for
Seychelles. Thegovernment afterconsidering thatdraftCBIpolicy letterhasapproved itandsubmitted
ittotheco-sponsors.
Indian Ocean Commission (IOC)
TheIOChasmorelimited objectives thanCOMESA andismoreproject/programme orientated.
Formedin1982,itsmainobjectivescanbesummarisedasfollows:totightenthefriendshipandsolidarity
thatexistbetweenthepeoples;increasethestandardoflivingofthenationsthroughenhancedcooperation
inallareas between French-speaking countries oftheIndian Ocean region.
Seychelles iscurrently benefiting fromanumber ofprojects funded bytheIOC. These include,
among others, theRegional Environment Programme; theestablishment oftheproposed University
oftheIndian Ocean; setting upoftheInternational Centre forTraining inTelecommunication (CITEL);
theMeteorological Cooperation Programme; theRegional Integrated Programme forDevelopment
andExchanges (PRIDE) andtheTourism Regional Programme etc.
Indian Ocean Rim
Seychelles iscommitted toparticipate intheongoing process towards defining thescope on
anIndian Ocean Rimco-operation. Seychelles 'commitment stems fromthefactthatbecause oftheir
geographical position between AsiaandAfrica, Indian Ocean islands provide astrategic linkbetween
those twomarkets. Islands withpreferential access toAfrican markets will,therefore, beinabetter
position toattract foreign investments. Theactive participation inthatprocess isamajor component
oftheSeychelles Government 'sstrategy todevelop Seychelles asatrading hub, animportant
transhipment centre attheheart oftheIndian Ocean.WT/ACC/SYC/3
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(v) Sectoral priorities
Aspartofthegovernment 'sefforts toincrease private sector participation intheeconomy,
oneofthemostsignificant development intheSeychelles economy overthelastthree years hasbeen
itsprivatisation programme.
Asmentioned earlier, theprivate sector isnowmuch more involved intourism, agriculture,
andcertain areas oftransport, such astheport. Tourism remains attheforefront ofsectoral
development. In1994aTourism Marketing Fundwascreated tolookintowaysofmarketing Seychelles
better abroad. Itsmain objectives areto:bring about anewimage forSeychelles; improve services
andstandards; andincrease market drive toattract more tourists; andtarget more markets. However,
tospread outrisksfromexternal shocks, thegovernment istaking steps todevelop other sectors and
enhance theirproduction capabilities.
Thecountry 'smaritime resources offerhugepotential andcognisant ofthis,thegovernment
hasgiven thissector considerable attention. Inthefisheries area,foodgiants Heinz hasjustacquired
a60percentstake inthetunacanning factory. Heinz isexpected tobring innewtechnology which
willleadtoanincrease inefficiency, andinturnresult inahigher production capacity.
Efforts havealsobeenintensified torevive theagricultural sector, onceanimportant contributor
toGDP, butwhich in1993accounted foramere3.5percent. TheMinistry ofAgriculture andMarine
Resources isinvesting heavily ininfrastructure aspartofitsefforts tobetter assist farmers inincreasing
theagricultural output tomeet thegrowing demand and,atthesame time, cutdown onimport of
products which canbegrown locally instead.
Thegovernment hasalsotaken anumber ofmeasures tofurther develop theindustrial sector,
suchasthesetting upoftheInvestment andTrade Promotion Desk intheMinistry ofIndustry, in
aneffort toimprove thequality andeffectiveness ofassistance given tobusinesses (seeinvestment
initiatives). Thegradual elimination oftheState'smonopoly offoreign trade andtheintroduction of
trade liberalization measures.
(b) Monetary andfiscal policies
(i) Monetary policy
Monetary policy inSeychelles isgeared primarily atensuring thestability oftheexchange
rate. In1979 therupee waspegged totheSpecial Drawing Right (SDR) which wasthenthemost
idealanchor. Over theyears, theSDR hasserved therupee relatively wellinthatithascushioned
itagainst thedetrimental impacts ofexternal shocks andhence prevented excessive fluctuations.
However, theSDRbasket hasundergone considerable transformation since thenwhilst thetrade and
tourism patterns ofSeychelles haschanged remarkably inthatperiod. Asaresult, theSDRhadlost
itsrepresentativeness ofSeychelles 'economic fundamentals andtheeffect ofthishasbeenexcessive
appreciation oftherupee which hasresulted inalossofSeychelles 'external competitiveness. To
haltthisexcessive appreciation andallow thelocalcurrency tomove more inlinewiththecountry 's
economic fundamentals, theCentral Bank ofSeychelles discontinued therupee'slinktotheSDRon
13May1996 andthedomestic currency isnowpegged toatrade andtourism weighted basket of
currencies which represent theeightmostimportant trading andtourism partners ofSeychelles, namely
USA, UK,France, Singapore, South African, Germany, Italy, andJapan.
Whilst ensuring thestability oftheexchange ratehasbeentheprimary longtermmonetary
policy objective ofthegovernment, much emphasis recently hasbeenonfinding arightsetofpolicies
toaddress theproblem offoreign exchange shortage andincrease theflowthrough thebanking system
whilst reducing thelevelofparallel market transactions inhardcurrency. InApril 1993, aforeignWT/ACC/SYC/3
Page8
exchange pipeline scheme wasintroduced withtheprimary objective ofensuring amore equitable
allocation offoreign exchange. Under thescheme, agents requesting foreign exchange placetheirrupee
equivalent onawaiting attheir respective banks with allocation being them made ona
first-come-first-serve basis, subject toinflows. Since those rupee amounts areplaced attheCentral
Bank andhence removed fromcirculation, thisrestrains tosome degree themonetary creation process
asthemultiplier effect isreduced. Onthisbasis, thepipeline wasalsoregarded atoolformopping
upsome oftheexcess liquidity intheeconomy, which itselfispartly thecause oftheforeign exchange
shortage.
With requests forforeign exchange continually growing faster thatinflows, thepipeline has
grown remarkably sinceitsinception. Inthefirsttwelve months (bytheendofApril 1995) outstanding
deposits inthepipeline hadsurpassed theR250million markwithanaverage waiting timeof35weeks.
Atthesame time, aparallel market forforeign exchange hadcome intoexistence andwasseverely
affecting official flows.
Inlightofthose developments thegovernment tookanumber ofmeasure inJuly1995 ina
renewed attempt toincrease theflowofforeign exchange intheofficial channel andcurbparallel market
activities. Oneofthose measures wastobreak thepipeline down intoeight categories withahigher
allocation tomore important types ofgoods. Secondly, atemporary embargo ontransfer offunds
inrespect ofdividend payments, management feesandproceeds from saleofassets wasimposed.
Thirdly,fundingofdomesticaccountsinrupeesbynon-residentnon-Seychelloiswasdisallowed,implying
thatallaccounts owed bysuchpersons orcompanies should befunded initially andonanongoing
basisinforeign currency. However, thisdoesnotapply tocases where suchfunds arisefromlegitimate
investment inSeychelles. Inamove directly targeting parallel market dealers, buying/selling foreign
exchange from/to anyperson orcompany other thanauthorised dealers were made legaloffenses.
(ii) Fiscal policy
Onthefiscal side,itisthepolicy ofthegovernment toprovide forbasic social services such
asfreehealth, education, infrastructures etc.,whilst attaining abalanced budget inthemiddle tolong
term. Theauthorities recognise theimportance ofcontrolling public spending andthese lastyears
stepsweretaken toensure abetter control ofthePublic Purse e.g.lower budgets forministries and
government departments wereannounced inthe1995and1996budgets. Regarding theexternal current
account (excluding official transfers), therehasbeenamarked improvement which hasbeenreflected
bythesignificant recovery from anaverage of17.7percentofGDP in1987-89 toanaverage of
5.2percentinGDPin1990-92.Nevertheless,theexternalcurrentaccountdeterioratedtoapproximately
17percentofGDP in1993 asaresult ofahighdemand forimports generated bytheintroduction
oftrade liberalization measures twoyears earlier. Ontheother hand, duetotheforeign exchange
shortage therewasaconsiderable decrease inthedemand ofimports in1994. Asaresult, theexternal
account deficit hasbeenreduced toapproximately 9percentoftheGDP.
In1995,theSeychellesGovernmentintroducedasuccessfulfiscalreformwithaviewtoboosting
economic activities inSeychelles. Among other things, custom duties havebeenabolished orreduced
onawide range offoodstuffs suchaspowdered milk, baby milk, rice,potatoes, lentils, onions,
margarine,cheese,garlic,tomatoes,carrots,fruitjuices,cookingoil,buildingmaterials,liquidpetroleum
gas,gasappliances, fruits andvegetables, poultry andpoultry products, pastaandcereals, canned meats,
soyasauce,cannedvegetablesandfruits,mayonnaise,babyfoods,napkins,toothpaste,washingpowder,
sanitary towels etc.
Inaddition withaneyeondeveloping Seychelles asalowdutyorduty-free destination and
creating amore dynamic framework forbusiness ingeneral, ithasbeendecided toreduce duties to
5percentoncameras, watches, binoculars, jewellery, perfumes. Inthesame vein, custom dutiesWT/ACC/SYC/3
Page9
onunworked goldhasbeenremoved altogether andthose oncomputers andaccessories ,telephones
andsmall PABXs, solar heaters etchasbeendrastically reduced.
Theglobal taxburden falling onenterprises hasbeenalsoconsiderably reduced. TheSocial
Security (Amendment) Act,1994which amended theSocial Security Act,1987provides asignificant
reduction intheSocial Security contributions foremployers inmiddle management whilst maintaining
atthesame timeanequitable distribution ofcontribution foremployees. Thepenalistic rateof
80percentforemployees earning above R4,000 (U$800) permonth hasnowbeenrestructured to
aceiling of40percentforthose employees earning R10,000 (U$2,000) andabove. Asaresult the
overall rateofSocial Security contributions foremployers isreduced to26.75 percent.
Inkeeping withtheGovernments policy ofusing fiscal policy asameans ofencouraging
investments andtrade, theBusiness Tax(Amendment) Act,1994 which amended theBusiness Tax
Act,1987 removes withholding Taxondividends andinterests paidtonon-residents aswellas
withholding taxoninterests paidtoaresident onaloanprovided toabusiness where theresident
isnotaperson whocarries onthebusiness oflending money. Inorder toencourage investments in
housing andoffice building rental from residential premises have beenexempted from income tax
andthecostofconstruction ofanoffice building maybefortaxpurposes, totally depreciated over
three years andtheallowable depreciation isallowed tobecarried forward indefinitely. Regarding
thepersonal income tax,itisnon-existent inSeychelles. Asforcorporate tax,itrange from0to40
percent.
(c) Foreign exchange payment andcontrol regime
(i) Acquiring foreign currency
Commercial banks andauthorised dealers aretheonlyauthorised sellers offoreign exchange
authorized bylawinSeychelles. They allocate 70percentoftheirforeign exchange inflows tothe
pipeline scheme forforeign exchange payments, (seeearlier). Since July1995, thepipeline isdivided
intoseven categories, depending ontypeofpayment. Acertain percentage offoreign exchange inflows
isallocated toeachcategory. Thesystem operates onafirst-come first-serve basisforeachcategory.
Itisalsopossible toacquire foreign exchange overthecounter atcommercial banks, though onalimited
scale. 15percentoftotalinflows areoffset forsuchtransactions.
(ii) Foreign exchange transactions
Thecurrency ofSeychelles istheSeychelles rupee which, since 13May1996, ispegged to
theSeychelles Trade andTourism Weighted Basket (STTWB) which isabasket ofcurrencies forthe
eightmostimportant trading andtourism partners ofSeychelles, namely USA, UK,France, Singapore,
South African,Germany, Italy, andJapan. Since 1981 uptothetransition oftheSTTWB, therupee
hadbeenpegged totheSpecial Drawing Right atSDR 1=R7.2345. Exchange ratesforvarious
currencies arecalculated dailybytheCentral BankofSeychelles using quotations fortheeightcurrencies
included inthebasket provided bytheUSFederal Reserve Bank andtheIMF. Theratesarecirculated
tothecommercial banks andtourist establishments. TheCentral Bank charges acommission of
0.125 percentonpurchases and0.875 percentonsales ofpounds sterling, USdollar andFrench
franc.
Thecommercial banks areauthorised todealinforeign currencies atratesquoted daily by
theCentral Bank fortherespective currencies. Other authorised dealers include casinos, guesthouses,
hotels, restaurants, self-catering establishments, touroperators, travel agents, shipping agents andship
chandlers. These specific authorised dealers arerestricted tobuying onlyinthecourse oftheirlicensed
activity. They mustsellalltheirforeign currency proceeds tothefivecommercial banks, theSavings
Bank andSaymore Bureau deChange.WT/ACC/SYC/3
Page10
Since 3July1995, allother transactions inforeign exchange havebeenprohibited temporarily,
including one-off purchases orsalesofforeign currency previously, byimplication, allowed. Moreover,
witheffect fromthesamedate,allnon-residents, non-Seychellois persons areprohibited fromfunding
accounts inSeychelles rupees. Thus, itisnecessary thatallaccounts owned bysuchpersons arefunded
initially andonanongoing basis inforeign currency. Butnotwithstanding thegeneral restrictions,
those persons mayexceptionally credit rupees intotheirdomestic accounts provided suchfunds arise
from legitimate investment activity inSeychelles. Thisapplies equally toinvestment infinancial
instruments, suchasGovernment Treasury Bills, Treasury Bonds, FXM Bonds andGovernment Stocks.
There arenotaxes orsubsidies onpurchases orsales offoreign exchange. There areno
arrangements forforward cover against exchange rateriskintheofficial orcommercial banking sectors.
(iii) Administration ofcontrol
Exchange controls aremaintained intheformofadministrative allocation offoreign exchange
forthemaking ofcertain payments. Thisapplies tothe70percentofforeign exchange inflows allocated
totheseven pipeline categories andthe15percentsurrender requirement. Ateamhasbeencreated
toadministerandpolicetheenforcementoftheprohibitionforothersthanauthoriseddealerstoundertake
foreign exchange transactions.
TheMinistry ofFinance andCommunications controls foreign trade anddomestic marketing
through amechanism ofimport andprice controls.
(iv) Imports andimport payments
Nolegalrestrictions areplaced onpayments forimports. Importers, other thanindividuals,
arerequired toobtain import licences fromtheSeychelles Licensing Authority. Theissuance ofthese
licences ismade inaccordance withobjective criteria. Import licences aregranted unless theimporter
doesnotcomply withthecriteria.
Inorder tocopewiththedeterioration oftheSeychelles external accounts, since September
1995 foreachshipment ofcommodities, animporter mustapply forimport permit totheTrade and
Commerce Division oftheMinistry ofFinance andCommunications. Certain prescribed goods, that
issugar, flour, oil,margarine, riceandanimal feedcanonlybeimported bytheSeychelles Marketing
Board. Furthermore, mostimports aresubject toacustoms duty, locally referred toasa"trades tax",
withthebulkofimported commodities around 25percent. Apart from customs duties onimports,
there arenointernal taxes similar tothevalue added tax(VAT).
(v) Payment forinvisibles
There arenolegalrestrictions onpayments forinvisibles, andnolegallimits areimposed on
theprovision oftravel exchange. Travellers maytakeorsendoutofSeychelles anyamount offoreign
currency anduptoR100ofdomestic currency.
(vi) Exports andexport proceeds
Apermit which wasrequired foreachshipment ofcommodities andissued bytheTrade and
Commerce Division oftheMinistry ofFinance andCommunications hasbeenabolished.
Henceforth, residents mayexport goods without anyexchange control formality toanycountry.
There arenoregulations governing repatriation ofexport proceeds.WT/ACC/SYC/3
Page11
(vii) Proceeds from invisibles
Exchange receipts from invisibles maybedisposed offreely. However, buying andselling
offoreign currencies bypersons other thanauthorised dealers isprohibited. Visitors maybring in
anyamount ofcurrency fortravel expenditure.
(viii) Capital
Since 3July1995, payment offuture dividend remittances, transfers ofmanagement feesand
transfers ofproceeds fromsaleofassets should bewithheld because oftheforeign exchange shortage.
However, payments forloanprincipal andinterest mayberemitted byallocation tothepipeline.
Investment outside Seychelles bypermanent residents andbycompanies andotherorganizations
operating inSeychelles isnotsubject toanylimitation. Foreign investment (whether portfolio, direct
investment, additional investments inexisting entities intheformofloans orequity capital) isfreely
permitted, provided thatsuchinvestment doesnotinvolve alienation ofland.
Commercial banks inSeychelles arerequired torestrict credit tonon-nationals primarily for
working capital purposes andgenerally toanamount notinexcess ofoverseas funds invested in
Seychellesenterprisesincertainprioritysectors,i.eagricultureandfishing,manufacturing,construction,
andtourism. Additionally, penalty loanratesareimposed oncredit secured byforeign assets. However,
astheacceleration ofthedevelopment ofthefinancial services isoneofthemainpillars oftheSeychelles
longterm, theproposed Financial Institutions (Domestic banking Business) Regulations, 1996 will
abolish those restrictions.
(ix) Gold
Residents mayfreely purchase, hold, andsellgoldinanyform, except fordealing ingold
bullion which arerestricted toauthorised dealers.
(x) Relations withtheInternational Monetary Fund
Seychelles isamember oftheIMFandhasarticles IVandVIII, sections 2,3and4,status.
Ithasnever hadaprogramme withtheIMF.
(d) Foreign anddomestic investment policies
Toincrease investment inSeychelles, anInvestment Promotion Acttoguarantee financial
incentives topotential investors hasbeenintroduced in1994. Anamendment totheSocial Security
Acthasbeenadopted inDecember 1994. Asaresult, themarginal rateofsocial security contributions
hasbeenreduced by40percentage points. Todevelop national human resources, thatamendment
hasalsointroduced atrainee scheme toincrease incentives forbusinesses toemploy inexperienced
staff.
Asafinalmeasure toimprove theeconomic environment, theBusiness TaxActhasbeenalso
amended. These amendments haveinteraliaprovided forthereduction ofbusiness taxformosttax
brackets, andexemption oftaxforrental ofresidential properties.
Atthebeginning of1995, thegovernment tookseveral additional measures topromote and
facilitate investment inSeychelles, including introduction ofdepreciation bonds forreinvestment of
deductible depreciation. Inaddition, twonewinvestment agencies Industrial Development Advisory
Services (IDEAS) andSeychelles International Business Authority (SIBA) wereestablished. TheseWT/ACC/SYC/3
Page12
aretoco-exist withthetwoinvestment financing arms ofthegovernment: Development Bank of
Seychelles (DBS) andSeychelles Industrial Development Corporation (SIDEC).
Investment Development Advisory Services (IDEAS )
IDEAS isadivision oftheMinistry ofFinance andCommunication, established toadminister
theInvestment Promotion Act(IPA) 1994andco-ordinate investment incentives inSeychelles. Under
theact,IDEAS issues qualifying investors Certificates ofApproval, which specify concessions and
incentives granted onanindividual basis; however, particular emphasis isputonguaranteeing a
level-playing fieldforbusinesses within thesame sector. AnIPAinvestor might alsobeallowed to
bring inexpatriate work force.
IDEAS, which began operations inthefirstquarter of1995, promotes investment inthreebroad
areas: industry, tourism andagriculture. Those areas arefurther broken intothree sub-categories,
namely export-oriented units, special growth areas, andageneral category. Whilst export-oriented
unitsareself-explanatory, thespecial growth areaincludes activities onouter islands, yacht marina,
divingcentres,golfresorts,helicopterservices,andextractionofnaturalresources(excludingquarrying).
Aninvestment under thegeneral category isoneother thananexport-oriented unitoraspecial growth
area, e.g.,afoodprocessing plant supplying thelocalmarket onasignificant scale, thusproducing
import substitutes andsaving foreign exchange.
TheIPA,which applies tocorporate entities only, isaimed atnewinvestments, expansion of
existing ones, orbusinesses whose taxcontributions arenegligible. Whilst specific incentives depend
ontheparticular category, theygenerally taketheform ofvarious taxexemptions suchasbusiness
tax,trades tax,social security contributions, andgainful occupation permit (GOP) fees-thefeetoemploy
expatriates; exemption frompaying thelatterisimportant because IPAinvestors aresometimes allowed
toemploy expatriates. Inaddition, various ways ofreducing taxable income arepermitted.
Seychelles International Business Authority (SIBA)
TheSeychelles government hasembarked onaprogramme todevelop theoffshore industry.
Theprogramme consists offivecomponents:
- theSeychelles International Trade Zone (SITZ);
- alegalframework fortheestablishment ofinternational trusts;
- offshore company registration;
- development offinancial services tosupport international trading andbusinesses; and
- registration andlicensing ofcertain activities inSeychelles, including those under theMerchant
Shipping ActandCivil Aviation Act.
Toregulate theoffshore industry, theauthorities havesetupSIBA, which wasestablished in
February 1995 asacorporate body, financed bythegovernment, withjointpublic andprivate board
representation. Itsmain aimsareto:
- regulate theoffshore industry;
- develop Seychelles asasuccessful international business centre; and
- promote international trade through Seychelles.
Toachieve these ends, itsactivities aredivided intointernational business company andtrust
registration, andmanagement oftheSeychelles International Trade Zone (SITZ).WT/ACC/SYC/3
Page13
TheSITZ, adutyfreezone, created under theSeychelles International Trade Zone Act1995,
isamanufacturing, export processing, transhipment, redistribution, andoffshore facility. Toqualify
forSITZ status, companies arerequired tooperate within aphysical location assigned bySIBA, whence
theymust export alarge partoftheirproducts outside Seychelles. Commodities soldlocally willbe
subject tothesame taxation asother goods produced abroad andexported intoSeychelles. Benefits
toSeychelles include additional activity intheport, which willhavepositive effects onthedomestic
economy through themultiplier effect.
Major developments todateinclude theacquisition oftwoparcels oflandbySIBA. Thenext
stepistoraisefunds fortheinfrastructure. Inaddition tofeesaccruing togovernment under these
initiatives, thecountry willbenefit from aninflow ofbusiness visitors toSeychelles. Technical
know-how andprofessionalism willalsobeenhanced asaresult ofincreased exposure toaninternational
business climate.
Benefits accruing tocompanies operating inside theSITZ arenumerous andthese range from
various taxconcessions toreduction onenergy charges.
TheInternational Business Companies Actof1994 isthelegal foundation forinternational
business company registration. Toregister anIBC, theagent normally charges between US$1,000
andUS$2,000. Outofthis,aUS$100 annual licence feeisduetothegovernment through SIBA.
Government revenue isalsoenhanced bylicence feespayable bytheregistering agencies annually.
Theincentive toIBCs liesintheir benefitting from afavourable taxation environment in
Seychelles. IBCs arenotallowed toengage inbusiness inSeychelles; however, theycanbuyshares
inlocalcompanies. They alsoparticipate inlocalactivity through financial transactions. Moreover,
gains toSeychelles accrue fromthelicensed agents, which employ localstaff, some ofwhom aregiven
training opportunities. Their registration operations constitute adirect contribution tolocalvalue added.
TheInternational Trusts Act,which came intoeffect inDecember 1994, allows forregistration
ofinternational trusts.Atrustisalegalentitlement, created bythesettlor bylawful deed, forexample,
inexecution ofatestament when thebeneficiaries aretooyoung toexercise ownership rights.
Toregister atrust, afeeofUS$100 ispayable once, incontrast toIBCs which payannually.
Trusts holdenormous potential inthatnettransfers inforeign exchange might bechannelled into
Seychelles. However, intheabsence ofdouble taxation agreements (DTA), theprincipal incentive
toregister trusts islost,because funds thennormally aresubject totaxes twice bothincountry of
origin andthatoftrustregistration. Presently, Seychelles hasnotconcluded anyDTAs. Attheend
ofDecember 1996 three trusts hadbeenregistered. There arepresently 2licensed trustees.
Seychelles Industrial Development Corporation (SIDEC)
SIDEC isaparastatal, formed inDecember 1988, withtheprimary objective ofassisting in
theindustrial development ofSeychelles. Toimprove thequality andeffectiveness ofassistance given
tobusinesses, particularly small ones, aSmall Business Bureau (SSB) wasrecently established within
theorganisation; theSSBisexpected towork closely withIDEAS andSIBA.
Currently SIDEC assistance tothesmall business community isprimarily intheform of
managementtrainingservices,businessplans,andaftercareservice.Shortly,theorganisationisexpected
tobegin disbursing loans ataconcessionary rateof3.0percenttosmall business projects, withfunds
from agrant bytheEuropean Union.WT/ACC/SYC/3
Page14
Development Bank ofSeychelles (DBS)
DBSisanimportant player intheinvestment sphere intheSeychelles economy, providing
loans toanumber ofsectors, namely tourism, agriculture, fisheries, industry andservices. Since 1994
onlytheprivate sector iseligible forDBSfunding; parastatals donotreceive credit. DBSmakes funds
available forthepurpose ofproduction andtheprovision ofservices, butnotforcommerce andtrading.
Inaddition, money lentmustbeusedforcapital expenditure, notasworking capital. DBScurrently
lends amaximum ofR6.0million toanyindividual company, atarateof12percentperannum.
Therepayment period isnormally between 4to9years.
Investment andTrade Promotion Division (ITPD)
TheInvestment andTrade Promotion Division isasub-division oftheMinistry ofIndustry,
setupinJuly1995. Itaimsatfacilitating private investment inthefields ofmanufacturing, assembling,
packaging, repairs, maintenance andother related activities. TheITPD houses aninvestment desk
which willwork closely withtheother investment agencies, namely SIBA, IDEAS, andSIDEC.
(e) Competition policies andState-trading
Theeconomy ismade upofawell-functioning private sector andthegovernment encourages
competition where itdeems itappropriate. Theprivate sector isbeing encouraged toplayamore active
roleintheeconomy anditishoped thatthiswillimprove thecompetitive environment, andinturn
result inlower prices andenhanced quality. However, there arestillcertain limitations; forexample,
government stillgrants monopoly totheSeychelles Marketing Board (SMB) fortheimport ofseven
"essential" items thatis,sugar, rice,milk, oil,margarine, fruits andvegetables andmeat. Theprimary
aimoftheSeychelles Marketing Board (SMB) istoprovide price stability andpredictability inthe
market ofsome keyimported commodities andguarantee uninterrupted supplies ofthose essential
commodities. Storage costsareburdened bySMB andwhen demand ofthose products exceed supply,
stocks arereleased tothedomestic market withaviewtostabilizing consumer prices andprotecting
thelowest paidworkers.
3. Foreign Trade inGoods andServices
(a) Volume, value, exports andimports, foreign trade balance
Seychelles isanetimporter, asalargeportion ofwhatisconsumed hastobeimported whilst
theexport baseisconsiderably smaller. In1994, thetrade balance deficit (merchandise only) stood
atR743million. Inthatyear, Seychelles imported R886million worth ofmerchandise goods (fob)
ofwhich machinery andtransport equipment made up23percent. While imports declined overall
relative to1993, thiswasinsharp contrast totheestablished trend; inprevious years imports hadrisen
steadily reaching arecord highofR1.2billion in1993. Thissuggests thatthedecline might be
temporary, andimports willriseagain astheeconomic situation improves andrestrictions arerelaxed.
Total exports fellby4.0percentlastyear. However, merchandise exports, which amounted
toR143million, was19percenthigher thanin1993. Canned tunawasthemostimportant component,
amounting toR89million, or61percentofthetotal. Trade inservices alsoregistered anoverall
decline in1994. Travel receipts andpayments fellby7.8percentand14percent,respectively. Freight
services declined slightly, andgovernment services registered mixed outcomes; receipts fellby
14percentwhilst payments increased by12percent. Income frompassenger transportation bythe
localairline roseby15percent.WT/ACC/SYC/3
Page15
(b) Structure oftrade
Overthelastfiveyears, "machinery andtransport equipment" hasremained themostimportant
import item. In1994, R205million worth ofthose goods wereimported, adecline ofR58million
relative to1993. "Manufactured goods" hashistorically remained second. Upuntil1991, "mineral
fuels" wasthethirdmostimported items; since then, however, "food andliveanimals" accounts for
thethirdlargest share ofimports.
Ontheexport side,aftercanned tuna(seeabove,) freshandfrozen fishhasremained thesecond
mostimportant export. Itpeaked atR18million in1991buthasdeclined sinceandlastyearitamounted
toonlyhalfofthat.Other major components ofSeychelles 'exports arecopra, cinnamon bark, prawns,
andshark fins.
(c) Trade bygeographic areas anddynamics oftrade
Traditionally, Seychelles 'mostimportant trading partners havebeentheUnited Kingdom and
France. Overthelastsixyears, mostofSeychelles 'imports -17percentonaverage -haveoriginated
from UK,whilst France hasbeenourlargest export market, accounting foroverhalfofourexports
onaverage overthatperiod. Nonetheless, overthelastfewyears theimportance ofothertrading partners
hasincreased steadily. Forinstance, Seychelles nowtrades significantly more withSingapore and
theUnited States. In1994, imports fromSingapore andUSAwerethree times andtwice higher than
in1987, respectively.
4. Domestic Trade inServices
Duetotheunavailability ofestimates foroutput ofdomestic services in1994, thissector covers
developments in1993. Services output inthatyearstood atanestimated R2.9billion. Transportation,
distributionandcommunicationsmadeupthebulkofservices,theircombinedoutputtotalling48percent
ofthetotal. Ofthis,"distribution" andairtransportation explained 21percentand11percent
respectively. Government services and"hotel andrestaurants" accounted forR670million andR413
million, respectively. Financial andbusiness services contributed R222million, withbanking services
explaining overhalfofthis.Onalower scale, output ofelectricity andwater amounted to5.0percent
whilst private non-profit services contributed amere 1.0percenttototaloutput.
In1994, foreign direct investment inservices wereprimarily intheareaoftourism. Foreign
concerns invested R80million inthepurchase offormerly State-owned hotels. In1993, proceeds
from thesaleofhotels toforeigners stood atR16million.
5. Financial Movements ofNationals Working Abroad
Inlinewithinternationalpractices,intheCentralBankofSeychelles'reportingsystem,financial
movements withnon-residents arebroken intopersonal remittances andcapital transfers. Financial
transactions ofnationals abroad declined lastyearcompared totheyearbefore. In1994, personal
remittances toresidents amounted toR30million, adecline ofR16million relative totheprevious
year. Incontrast, outward personal remittances byresidents felltoR65million compared toR76
million in1993.
Inward capital transfers toresidents, which arefunds transferred foracquisition offixedassets
andcapital goods, amounted toR21million in1994, compared toR23million recorded intheprevious
year. Outward capital transfers byresidents amounted toR17lastyear,afallofR5.6million relative
to1993.WT/ACC/SYC/3
Page16
6. Growth inTrade ofGoods andServices
Asdiscussed previously, trade between Seychelles andtherestoftheworld isgradually
increasing. With theexception of1991 and1994, imports andexports haveincreased every year.
Thedecline in1991wasonmostparttheresult ofthegulfwarwhich adversely affected tourism and
transportation, whilst theslowdown in1994wasattributable totheunfavourable economic conditions.
Itshould benoted thatexports in1990 were extraordinarily high, theexplanation being thesaleof
anaeroplane toaforeign company.
Trade inservices hasalsoincreased overtheyears, despite falling in1994. After arecord
R691million intravel receipts in1993, itfelltoR637lastyear. Receipts frominternational passenger
transportation havealsobeenincreasing andlastyearitreached arecord R210million. Incontrast,
income fromtherestofthetransportation services hasfallen slightly overthelastcouple ofyears while
trade ingovernment services hasremained fairly constant. Imports arelikely tofallslightly in1995,
asaresult ofthere-introduction ofimport permits inthethird quarter of1995. However, asthe
economy picks up,itisexpected thatthevolume ofimports willriseagain.
Total exports (including repairs andgoods procured inports) declined in1994, eventhough
merchandise exports roseby1.2percent. Commensurate withthisgrowth rate,merchandise exports
canbeexpected toreach between R160toR165in1995. Exports haveshowed acontinued rising
trend overthelongrunanditisexpected toincrease inthecoming years.
GROSS DOMESTIC PRODUCT
Current prices Constant prices
Year Amount (million)
RupeesGrowth rate Amount (million)
RupeesGrowth rate
1982 965.1 0.03 1,088.2 -1.50
1983 989.4 2.52 1,069.6 -1.71
1984 1,068.1 7.95 1,155.3 8.01
1985 1,204.9 12.81 1,274.2 10.29
1986 1,290.0 7.06 1,290.0 1.24
1987 1,395.9 8.21 1,346.5 4.38
1988 1,527.9 9.46 1,418.2 5.32
1989 1,720.9 12.63 1,546.0 9.01
1990 1,967.1 14.31 1,680.7 8.71
1991 1,980.1 0.66 1,726.8 2.74
1992 2.221.1 12.17 1,845.3 6.86
1993 2,419.2 8.92 1,939.6 5.11
*(1994) 2,465.3 1.91 1,932.8 -0.35
*Central Bank estimatesWT/ACC/SYC/3
Page17
MERCHANDISE TRADE BALANCE
(Million Rupees)
Year Exports Imports (f.o.b) Trade Balance
1982 25.3 543.1 -517.8
1983 34.9 503.0 -468.1
1984 35.3 523.9 -488.6
1985 33.1 597.0 -563.9
1986 27.4 552.2 -524.8
1987 44.9 536.8 -91.9
1988 92.8 726.1 -633.3
1989 194.1 870.8 -676.7
1990 301.5 871.1 -582.4
1991 258.3 798.0 -600.5
1992 245.7 856.2 -678.6
1993 265.0 1083.0 -853.9
1994 262.1 912.8 -688.9
CURRENT ACCOUNT BALANCE
(Million Rupees)
Year Trade Balance Non-Trade Balance Current Account Balance
1982 -517.8 246.0 -271.8
1983 -468.1 294.0 -174.1
1984 -488.6 393.2 -95.4
1985 -563.9 431.4 -132.5
1986 -524.8 319.6 -205.2
1987 -491.9 375.6 -116.3
1988 -633.2 480.5 152.7
1989 -676.7 452.3 -224.4
1990 -582.4 512.5 -69.9
1991 -600.5 555.5 -45.0
1992 -678.6 641.9 -36.7
1993 -853.9 654.0 -199.9
1994 -688.9 592.1 -96.8WT/ACC/SYC/3
Page18
FOREIGN EXCHANGE RATES
Year Dollar (average) SDR (average)
1983 6.7677 7.2345
1984 7.0608 7.2345
1985 7.1305 7.2345
1986 6.1682 7.2345
1987 5.6008 7.2345
1988 5.3860 7.2345
1989 5.6466 7.2345
1990 5.3337 7.2345
1991 5.2911 7.2345
1992 5.1363 7.2345
1993 5.1813 7.2345
1994 5.0544 7.2345
1994 5.0544 7.2345
EXPORTS BYMAIN CATEGORIES
(Millions Rupees)
1992 1993 1994
Category Value Share Value Share Value Share
Re-exports 129.7 58.0% 186.2 69.9% 143.8 53.4%
Copra 0.7 0.3% 0.9 0.3% 0.0 0.0%
Cinnamon bark 2.1 0.9% 2.3 0.9% 2.2 0.8%
Frozen andfresh fish 18.1 8.1% 9.2 3.5% 13.0 4.8%
Canned tuna 66.5 29.8% 58.3 21.9% 101.0 37.5%
Shark Fins(Dried) 2.3 1.0% 3.1 1.2% 3.1 1.2%
Frozen Prawns 0.3 0.1% 4.0 1.5% 4.0 1.5%
Other exports 3.8 1.7% 2.3 0.9% 2.3 0.9%WT/ACC/SYC/3
Page19
IMPORTS BYMAIN CATEGORIES
(Million Rupees)
1992 1993 1994
Category Value Share Value Share Value Share
Food andLiveanimals 182.6 0.2 194.1 0.2 116.5 11.3%
Beverages &Tobacco 25.9 0.0 42.8 0.0 23.5 2.3%
Crude Materials 18.4 0.0 17.0 0.0 14.5 1.4%
Mineral Fuels etc 167.3 0.2 175.5 0.1 129.9 12.6%
Animal &Vegetable Oils 8.8 0.0 9.6 0.0 1.0 0.1%
Chemicals 74.8 0.1 81.0 0.1 145.8 14.1%
Manufactured goods 178.4 0.2 226.8 0.2 215.5 20.8%
Mach. &Equipment 204.0 0.2 309.7 0.3 185.8 18.0%
Misc. Manufactured Articles 125.1 0.1 177.7 0.1 200.8 19.4%
0.3 0.0 0.5 0.0 0.6 0.1%
IMPORTS BYMAIN SOURCES, 1994
(MILLIONS RUPEES)
Country/region Value Share
Australia 16.70 1.6%
Austria 0.20 0.0%
Bahrain 0.10 0.0%
Belgium 11.70 1.1%
China 10.60 1.0%
Denmark 2.50 0.2%
France 60.00 5.8%
Germany (W) 14.20 1.4%
Hong Kong 7.50 0.7%
India 15.60 1.5%
Italy 32.80 3.1%
Japan 34.40 3.3%
Kenya 23.00 2.2%
Korea (N) 0.10 0.0%
Malaysia 12.20 1.2%
Mauritius 17.90 1.7%
Netherlands 23.70 2.3%
Pakistan 4.40 0.4%
Singapore 152.50 14.6%WT/ACC/SYC/3
Page20
IMPORTS BYMAIN SOURCES, 1994
(MILLIONS RUPEES)
Country/region Value Share
South Africa 138.20 13.3%
Spain 17.20 1.6%
Sweden 4.60 0.4%
Thai;and 18.80 1.8%
U.A.E 4.80 0.5%
United Kingdom 183.80 17.6%
United States 39.70 3.8%
Yemen (DPR) 147.20 14.1%
Others 48.20 4.6%
III. FRAMEWORKFORMAKINGANDENFORCINGPOLICIESAFFECTINGFOREIGN
TRADE INGOODS AND TRADE INSERVICES
(a) Trade Policy: Executive, legislative andjuridical powers
Pursuant totheConstitution oftheRepublic ofSeychelles approved bythereferendum on18
June1993, theSeychelles archipelago isamulti-party democracy inwhich sovereign State power is
vested inthepeople ofSeychelles. Thatpower isexercised byaPresident andaNational Assembly
elected directly forfiveyears byuniversal suffrage.
ThePresident isboththeHead ofStateandtheexecutive. ThePresident exercises hispower
byassenting amendments totheconstitution andlawsadopted bytheNational Assembly. TheMinisters
oftheGovernment ofSeychelles areappointed bythePresident. Thedesignated Ministers areappointed
withtheconsent oftheNational Assembly.
TheNational Assembly exercises thelegislative power byenacting amendments tothe
Constitution andordinary laws, approving theState budget, ratifying anddenouncing international
treaties andconventions etc.
According toSection 119oftheConstitution oftheRepublic ofSeychelles, "thejudicial power
ofSeychelles isvested intheJudiciary which consists oftheCourt ofAppeal ofSeychelles, theSupreme
Court ofSeychelles andother subordinate courts ortribunals". AsConstitutional Court, theSupreme
Court hasjurisdiction andpowers inrespect ofanymatters relating totheapplication, contravention,
enforcement orinterpretation oftheConstitution andcompliance oflaws, Decree andRegulation with
it.TheSupreme Court handles allCriminal andCivil cases between private individuals orbetween
private individuals andthegovernment. TheSupreme Court 'sdecisions aresubject toappeal inthe
Court ofAppeal. Please notethatthisunusual judicial hierarchy isthedirect outcome ofthehistorical
linkbetween Seychelles andMauritius.
TheMinistry ofFinance andCommunications istheCentral administrative bodyresponsible
forformulating andimplementing thegovernment tradepolicy. Ontheotherhand, Ministry ofIndustry
andthatoftheAgriculture andMarine Resources areresponsible forformulating andimplementing
industry policy, agricultural policy andfisheries policy, respectively. Given thatallthese policies canWT/ACC/SYC/3
Page21
influence trade policy, theMinistry ofFinance andCommunications plays animportant roleinthe
formulation andimplementation ofallthose policies.
Seychelles 'trade policy ismainly regulated bytheTrades TaxAct,1992 andTrades Tax
Regulations 1994 (asamended), thesubsidiary legislation made under thatAct.Please notethatthe
Trades TaxRegulations booklet isre-edited every yearwithaviewtoincorporating allnewamendments
andmeasures relating tocustoms tariffs. Thegovernment bodies participating indrafting, approving
andformulating domestic andforeign trade, import andexport policies, aretheMinistry ofFinance
andCommunications through Trade andCommerce Division andTrades TaxImport Division which
areresponsible forimport andexport formalities, theDepartment ofLegal Affairs, theCabinet
(Executive) andtheNational Assembly (Legislature).
Astotrade statistical records, theyarekeptbytheManagement Information System Division
(MISD) oftheMinistry ofAdministration andManpower. Thatdivision isalsoresponsible forkeeping
allthestatistical records concerning Seychelles.
(b) Trades taxonimports andrules governing import
TheTrades TaxAct,1992andtheTrades TaxRegulations, 1994 regulates procedure forthe
applicationoftheTradesTaximports,thatis,theSeychellescustomstariffandconstitutethefundamental
basisofthecustomsprocedures,rulesoncustomsregimeandformalities.TheSeychelles'tariffstructure
isbased onasystem ofapplied rates. Consequently, anymodifications toapplied ratesmaybemade
bytheMinister ofFinance andCommunications inaccordance withtheTrades TaxAct,1992. Gradually
import restrictions andnon-tariff barriers andreducing protection forimport-substitution industries,
theSeychelles customs tariffs havebeenrestructured asofJanuary 1995 inthescope oftaxreform
engaged bythegovernment inorder toimprove theeconomic andadministrative efficiency andthe
equity ofthetaxsystem.
Thegovernment recognised therefore thatprotection against imports is,inthelongrun,not
aneffectivebasisfordevelopment.However,ifanactivityhasarealprospectforlong-terminternational
competitiveness, someshort-term protection maybegranted through thetaxation ofcompeting imports.
Ontheother hand, ifanactivity islikely toneedsuchsupport forasfarintothefuture ascanbe
foreseen, thenitisnotencouraged byfiscal favours.
(i) Tariff nomenclature
Since January 1,1994, theHarmonized System (HS) wasintroduced inSeychelles. Hence
theSeychelles customs tariff usestheHSnumerical coding system tothefirstfourdigits toproduce
thedutiable national tariff heading. Thefirstandsecond digits indicating theChapter number and
thethird andfourth digits thenumerical order inwhich theheading appears within Chapter. The
fifthandsixthdigits indicate thesub-heading level. Additions andextensions atthenational levelare
represented byasplitinthetariff itemattheseventh and/or eight digits. Consequently, allgoods to
becleared forconsumption must beidentified byaneight-digit numerical code.
Thecustoms tariff comprises 21sections.. 98chapters (firsttwodigits); 1,011. HSheadings
(firstfourdigits); 1,697 sub-headings (firstsixdigits); 1,671 sub-items (lasttwodigits) and5087tariff
headings (eight digits). Forinstance, 01,twodigits, corresponding totheHSchapter 0101; and0101,
fourdigits, corresponding totheHSheading, 0101-1100.WT/ACC/SYC/3
Page22
Regarding thelevels oftariff applicable togoods asofJanuary 1996, theycansummed up
asfollows:-
- Tariff headings "free ofduties" 61
- Tariff headings withadvalorem duties 1991
- Tariff headings withspecific duties 30
Uptotheendof1994, thebaseoftheTaxwasc.i.f. plusanotional wholesale mark-up and
sotheeffecting rateonimportation washigher thanthenominal rate. The1995 budget removed the
notional wholesale mark-up, thebasenowbeing simply thec.i.f. value. Thetaxisadministered in
thesame wayasnormal customs duties, withverification ofinvoice valuations, therequirement to
paytaxbefore goods areremoved from theport, airport, andtheprovision ofbonding.
Rateoftaxareprimarily "advalorem", specific dutybeing imposed onsoftandalcoholic drinks
andsome petroleum products. Additional levies, inspecific form, areimposed onsoftdrinks, beers
andcigarettes, onother alcoholic drinks notinglass bottles andontelevision satellite dishes for
environmental reasons.
In1996statutory customs tariffs ,forimports intoSeychelles range fromzeroto600percent
ofthec.i.f. value, withanaverage of30percent. Tariff peaks arefound inivory, coral, foodof
CITESmeat,fish,CFCdeodorants,armsandammunitions,fireworks,minkfurskins,artificialflowers,
motor carsbeyond 2000cc, ceramic articles (200percent); tobacco andcigars (300percent) and
cigarettes (600percent). Thisdoesnotinclude themassive useoftariff concessions forencouraging
investments intourism, fisheries andmanufacturing sectors. Tariffs accounted for23percentof
government revenues inthefiscal year1995andaccording tothebudget forecasts theywould account
foronly 19percentofgovernment revenues in1996. The1996budget eliminated taxes onalarge
range ofessential foodstuffs andreduced theratesonother items suchasbuilding materials, perfume,
cameras, goldetc.Thedifference inratesaredesigned toreflect fourconsiderations: protection of
domestic production; realincome redistribution withloworzeroratesonbasic foodstuffs andother
consumption items regarded asnecessitous, discouraging ofconsumption ofgoods withanimpact
onhuman bodyandenvironment, andtheinitiation ofanewstrategy aiming totransform thearchipelago
intoaduty-free shop.
Furthermore, itisimportant tonotethatthere isnovalue-added tax(VAT) orsales tax,or
other taxofequivalent effect onimported goods when thelatter aresoldonthelocalmarket.
(ii) Customs valuation
According toRegulation 83oftheTrades TaxRegulations, 1996, "forthepurpose ofassessing
thetaxongoods imported intoSeychelles, theimporter ofthegoods shallsubmit tothecomptroller
insuchform asmaybeprovided bythecomptroller atrueandaccurate statement ofthec.i.f. value
ofgoods". Thatstatement shallifsorequired beaccompanied bytheoriginal commercial invoice,
billoflading, billofparcels, policy ofinsurance, bank payments, packing list,letters andother
documents showing thevalue ofthegoods attheplace atwhich theywere purchased together with
freight, insurance andother charges onthegoods. Where itappears toacustom officer thatthegoods
arenotvalued according totheirtruevalue atthetimeandplace ofimportation, thecomptroller may
require theimporter todeclare onoathbefore whom thetruevalue ofthegoods according tothebestWT/ACC/SYC/3
Page23
ofthebelief ofsuchimporter andtoadvise anydocumentary evidence hemaypossess insupport
thereof.
However, where itappears tothecomptroller thatgoods imported intoSeychelles havebeen
declared atavalue below orabove theirtruevalue atthetimeandplace ofimportation, heshallassess
thevalue ofthegoods.
Incaseofdispute, thegoods inquestion shallbeexamined byapanel oftwocompetent persons
oneofwhom shallbeappointed bythecomptroller andtheother bytheimporter. Those twopersons
shallselect anumpire andthendeclare onanoathbefore thecomptroller whatisthevalue ofthegoods
inquestion atthetimeandplace ofimportation. However, incaseofthose twopersons shallnotagree,
theumpire shallhavethefinalword. Also, iftheimporter failstoappoint acompetent person tovalue
suchgoods when required todoso,thedeclaration oftheperson appointed bythecomptroller shall
befinal.
Please notethatthisprocedure shallnotapply ifthecomptroller isoftheopinion thatanyevasion
oftheprovisions oftheTrades TaxRegulations hasbeencommitted orattempted.
Forthepurposes ofthelevyandassessment oftax,thecomptroller may, having regard to
ratesdetermined bytheCentral BankofSeychelles forbuying andselling foreign currencies, determine
theconversion rateofforeign currencies.
(iii) Special tariff exemption fordevelopment purposes
Generally speaking, special tariffexemptions fordevelopment purposes islaiddown incertain
commercial andinvestment laws, Technical Cooperation Agreements signed bytheGovernment and
anInternal Policy System bywhich, onapplication totheMinister ofFinance, certain imports may
beexempt fromcustoms duties orsubject toreduced rates. Inbroad terms, theInternal Policy System
grants exemption forcapital items other thanmotor carsrelated toanewproject ortheexpansion of
existing activity inmanufacturing, hotels, agriculture, fishing andactivities relating totourism industry.
Themain imports benefitting special tariff treatment arethefollowing:
- imports foragricultural andmarine resources investment, industrial andmanufacturing
investment, professional services investment, small scale industries investment andtourism
development investment under theInvestment Promotion Act,1994;
- imports under Technical AidorAssistance programme approved bytheGovernment;
- imports under anyagreement made between theSeychelles Government andanyother
Government, body, organisation orpersons orbyvirtue oftheprovisions ofArticles 50and
62oftheVienna Convention onConsular Relations of1968;
- goods imported bythePresident forhispersonal useorforofficial purpose inhiscapacity
asPresident andthoseimported specifically fortheconstruction, repair, decoration orfurnishing
ofchurches orpresbyteries, andarticles imported byreligious organisations foruseinthecourse
ofdivine worship;WT/ACC/SYC/3
Page24
- importation ofoffice equipment under theFinancial Institutions Act,1984 andtheInsurance
Act,1994 bylicensed offshore banks andoffshore insurance companies;
- goods re-imported afterexportation forrepair orprocessing orpersonal use,andpersonal effects
andtravel souvenirs oftourists;
- imports under theInternational Trade Zone Act,1995 bytheoperators oftheInternational
Trade Zones administered bytheSeychelles International Business Authority (SIBA);
- allother imports under PartxvoftheTrades TaxRegulations, 1994 asamended, etc.
(iv) Anti-dumping, countervailing andsafeguard measures
Regardinganti-dumping,countervailingandsafeguardmeasures,therearenospecificprovisions
oftheTrades TaxRegulations dealing withthem. However, ifSeychelles introduces statutory
provisions regulating anti-dumping countervailing andsafeguard measures, theyshallbebeyond doubt
based onthecorresponding Multilateral Agreements oftheWorld Trade Organisation.
(v) Non-tariff measures
Generally speaking, theSeychelles trade policy authorizes theimportation intoSeychelles of
allforeign goods from allcountries allovertheworld. However, theimportation ofcertain goods
maybeexpressly prohibited orrestricted byLawandRegulations. Forinstance, inaccordance with
sections 111and112oftheTrades TaxRegulations, 1996, goods consigned toplaces outside Seychelles
andgoods, whose document relating tothem presented forimport isfalse, shallbedeemed tobe
unlawfully imported intoSeychelles, andaretherefore prohibited.
Contrary toimportation ofaprivate nature andimportation forbusiness activity, allimport
fordirect retail orwholesale trade aresubject toimport licence which isgranted bytheSeychelles
Licensing Authority (SLA) inaccordance withLicences Act,1986 andRegulations made under that
Act. Inprinciple, theimport licensing regime issimple andthefundamental requirements arethe
following:
- anapplicant forimport licence must provide theLicensing Authority withaCertificate of
Occupancy obtainable from thePlanning Authority ifpremises tobeusedforimporting,
wholesaling andretailing isnewly constructed;
- ifpremises which hasnotreceived Planning Authority 'sapproval istobeused, theapplicant
mustprovide theLicensing Authority withacopyofhisChange ofUseCertificate obtainable
from thePlanning Authority;
Inaddition individuals, firms andinstitutions desiring toimport certain types ofgoods into
Seychelles mustobtain anImport Permit from theTrade andCommerce Division oftheMinistry of
Finance andCommunications. However, byreason ofthedeterioration ofthebalance ofpayments,
lastSeptember therequirement ofImport Permit hasbeentemporarily extended toallgoods imported
intoSeychelles.WT/ACC/SYC/3
Page25
Although theImport Permit system isprimarily designed toreduce thevolume ofimports when
theexternal account deficit becomes critical, ontheotherhand, thelicensing system itselfisforrevenue
purposes. However, withaviewtocreating aconducive business environment, theGovernment is
nowintheprocess ofstreamlining andsimplifying theSeychelles Licensing System byreducing the
leveloflicencefeesandabolishingcertainLicencesRegulationsandunnecessaryprocedurerequirements.
Finally, itisimportant tonotethatcertain goods aresubject toimportant restrictions forhealth
andsecurity reasons. Forinstance, importation ofanyarmsorammunitions ofwarasdefined inthe
Firearms andAmmunition Act(Chapter 80)andimportation ofanyfoodwhich doesnotcomply with
theFood Act(chapter 83),thatis,foodwhich isinjurious tohealth orpoisonous, harmful orwhich
consists inwhole orinpartofanyfilthy, putrid, rotten, decomposed ordiseased substance orforeign
matter orotherwise unfitforhuman consumption, narcotics andnarcotic substances, pluscertain poisons
which havebeeninternationally banned forenvironmental reasons.
Inaddition toregulations dealing withtheimportation andexportation offood, theMinister
responsible forHealth maymake regulations forprohibiting orrestricting theimportation orthe
useofanyspecified materials orofapparatus orutensils designed foruseinthepreparation offood
andthesaleutensils designed forsuchuseandcontaining anyspecified materials orofanyspecified
class.
(c) Rules governing export
Inprinciple, sinceJanuary 1,1996thereisnolonger aneedforexport permit orexport licensing
forexported goods. However, goods thatarerestricted forexport bylawstillrequire apermit or
aphytosanitary certificate issued bytheappropriate authority. Forinstance, inaccordance with
section 6(1)ofthePlant Protection Act,1996, theplantprotection authority mayissueaphytosanitary
certificate inrespect ofaplantmaterials beneficial organism, soiloranassociated packaging forexport.
Also, inorder tocontrol thequality offishorfisheries products designed toexport, aphytosanitary
certificate issued bytheSeychelles Veterinary Services isnecessary before exporting anyfishand
fisheries products.
Inaddition, according toRegulation 167oftheTrades Taxregulations of1994(asamended),
nogoods other thanpassengers 'baggage shallbetaken onboard anyaircraft orshipforexport unless
theexporter orhisagent shallhavepreviously delivered tothecomptroller abillofentry andsuch
duplicate. Where anygoods entered forexport arenotthereafter shipped according totheentry, the
exporter shallimmediately report thefact,andshallamend theentry forthegoods notlaterthan24
hours orsuchlonger period asthecomptroller maydetermine aftertheclearance oftheaircraft or
ship.
Certificate oforigin areissued forproducts thatareexportable fromtheRepublic ofSeychelles
totheEuropean Union under Protocol No.1oftheLome IVconvention subject tocontrol oftheDirector
General oftheTrades TaxImport Division. Those certificates areissued bytheSeychelles Chamber
ofCommerce andIndustry onpayment ofasmall fee.
Please notethatthere isnoexport dutyinSeychelles andthattherawmaterials imported by
theexport-oriented enterprises areexempt fromcustoms duties. Inaddition, thelatter paycorporate
taxataconcessional rateof15percentandbenefit arebate oncorporate taxpayable which varies
between 5percentand15percentanddepends uponexport turnover oftheexport-oriented enterprises.WT/ACC/SYC/3
Page26
Finally, regarding goods intransit except forgoods whose importation isprohibited orrestricted
theyareauthorized inaccordance withinternational customs practices, thatis,under thesurveillance
ofcustoms officers given thatthere arenospecific provisions intheTrades TaxRegulations, 1994
asamended dealing withthisissue. Those goods areexempt from anyduty.
IV. POLICIES AFFECTING TRADE INGOODS
3. Internal Policies Affecting Foreign Trade inGoods
(a) Industrial policy
General Description
The1985-1989 National Development Planasthe1978-1985 onehighlighted theimportance
ofindustry intheprocess ofbuilding sustainable economic development. Inaddition, emphasis on
thiswasreiteratedwhenGovernmentpublishedinDecember1988,theSeychellesIndustrialDevelopment
PolicyandStrategyfortheperiod1989-1993.Onthewhole,thecentralgoaloftheindustrialprogramme
istoensure thatindustries aretoalargemeasure mutually reinforcing soastoguarantee thedevelopment
ofaplanned system ofsustainable industrial production.
Among otherthings, themainobjectives oftheSeychelles Industrial Strategy arethefollowing:
- thestimulation ofthelocalproduction andpromotion export-orientated industries byprivate
sector investors;
- thedevelopment oftechnological infrastructure andservices required tofacilitate product
improvement, quality control, andwhere appropriate standardization;
- theencouragement ofincreasing investment inexisting industries andwhere needed toassist
industries tosustain employment andmake better useofspare plancapacity wherever
techno-economically feasible;
- thepromotion ofexport-oriented industries based mainly onimported rawandintermediate
materials including assembly-type projects by:
- waiving taxes wherever possible
- reducingcorporatetaxonprofitsinordertomakereturnsoninvestmentsmoreattractive;
- studying waysandmeans ofattracting investors notably foreign ones, totakeadvantage
ofduty-free exports toEEC andalsoofother markets.
- thepromotion ofjoint-venture withprivate sectors, localandforeign, andinthecaseofthe
latter asameans ofensuring thetransfer oftechnology, obtention ofmanagement skills and
securing foreign markets;
- thepromotion ofcooperation between competing producers inorder toencourage economies
ofscaleandhigher levels ofefficiency provided itdoesnotleadtocollusion between producers;
- theprovision ofrelevant training programmes formanagers andmiddle-management personnel,
andalsotheimprovement oftheskills oftheproductive work force, etc.WT/ACC/SYC/3
Page27
(b) Technical regulations andstandards
Generally speaking, technical Regulations andstandards aregoverned bytheSeychelles Bureau
ofStandards Act(Chapter 212). ThatActhasestablished aBureau which isresponsible for:
- promoting standardization inindustry andCommerce andpreparing draftspecification and
codes ofpractice andtodeclare thestandard specifications andstandard codes ofpractices;
- making arrangements orproviding facilities fortheexamination andtesting commodities and
anymaterial orsubstance from which orwithwhich theymaybemanufactured, produced,
proceed, treated andforthemanner ofsuchmanufacture, production, processing ortreatment;
- providing foruseofstandard marks andtheexamination, testing andcalibration ofinstrument,
appliances, apparatus etc;and
- providing forthetesting ofcommodities manufactured inSeychelles orimported intoSeychelles
forthepurpose ofdetermining whether thecommodities comply withtheprovisions ofthe
Seychelles Bureau ofStandards Actoranyother lawdealing withspecifications.
Inorder toprotect human lifeandhealth, property etc;goods, processes, services aresubject
tospecification. Thespecification rules andprocedures aremodelled oninternational norms and
standards, notably norms currently usedintheEuropean Union, ISO9000, ISOandEcodirectives
etc.Please notethatsince August 1989 Seychelles participates asanobserver intheInternational
Organisation forstandardization (ISO).
(c) Sanitary andphytosanitary measures
Therules andprocedures concerning sanitary andphytosanitary measures arelaiddown in
theAnimals (Diseases andImports) Act(Chapter 91),Plant Pests Act(Chapter 171), Public Health
Act,(Chapter 189)andQuarantine Act(Chapter 197). There isnodiscrimination between domestic
andforeign goods ontheapplication ofsanitary andphytosanitary measures.
According tosection 4oftheAnimal (Diseases andImports) Act,noanimals other thandogs,
cats,cattle, pigs,sheep, goats, horses andrabbits shallbeimported intoSeychelles. Inthesame vein,
section 5ofthePlant Protection Ac,1996 prohibits theimportation ofaplant material soiloran
associated packaging which maybeameans ofintroducing anypestordisease intoSeychelles. These
provisions design toavoid theintroduction ofgoods, plants andplant products, animals andanimal
products etc.which arepotentially hazardous tohuman, animal andplanthealth. Regarding animals
andanimal products, andplants andplant products, inaddition toaphytosanitary certificate issued
byaveterinary orthePlant Protection authority ofthecountry from where theanimal andtheplant
material beneficial organism soorassociated packaging hasbeenexported theimporter shallhave
animport permit issued bytheappropriate authority inSeychelles. Infact,anyperson whoimports
aplantmaterial, beneficial organism, soilorassociated packaging shallatthetimetheplantmaterial,
beneficial organism, soilorassociated packaging enters Seychelles, make adeclaration tothiseffect,
produce theimport permit andphytosanitary certificate, andproduce theplant material, beneficial
organism, soilorassociated packaging totheinspector appointed bytheMinister ofAgriculture under
section 12ofthePlant Protection Act,1996, or,where aninspector isnotpresent, thecustoms officer
orother authorised officer atthedesignated point ofentry atwhich entry intoSeychelles takes place.WT/ACC/SYC/3
Page28
(d) Trade-related investment measures
There arenotrade-related investment measures.
(e) State-trading practices
Generally speaking, anyeconomic operators mayengage inforeign trade activities, whether
import orexport. There arenoStatemonopolies onexports andtheproducers havetheabsolute right
toexportallproductswhicharenotprohibitedbylawandinternationalconventionssignedbySeychelles.
However, State monopolies existonimports onsome keyessentials items, thatis,sugar, rice,milk,
oil,margarine, vegetables, meat. TheSeychelles Marketing Board (SMB) wasoriginally established
toensure stable andadequate supply ofthearchipelago inessential commodities andhadheldexclusive
rights toimport andexport ofcertain categories ofproducts. Italsoengages inthemarketing and
production ofsome essential commodities. Inlinewiththeneweconomic andtrade strategy thatthe
government isimplementing, theSMB'smonopoly, which isprincipally motivated byfoodsecurity
given thattheSeychelles geographical remoteness anditsheavy dependence ontheimport ofbasic
foodstuffs, isnow limited totheabove-mentioned commodities. Please notethatStateMonopolies
onexports offish,copra, andcinnamon have been abolished in1992 inthescope ofthetrade
liberalisation oninitiated bythegovernments since thebeginning ofthe1990's.
TheState-owned "Seychelles Petroleum Company (SEYPEC) hasamonopoly onimports and
distribution ofpetroleum products. Inthesame manner astheSMB'smonopoly, theSEYPEC 's
monopoly ismotivated bythesmallness oftheSeychelles domestic market andtheabsolute necessity
toensure stable andadequate supply ofthearchipelago inpetroleum products.
TheState-owned Seychelles Public Transport Corporation (SPTC) hastheexclusive right
regarding theprovision ofpublic transport services. Inthesamevein,thePublic Utilities Corporation
(PUC) hasthemonopoly toprovide thearchipelago withelectricity anddrinking water.
(f-g) Freezones andfreeeconomic zones
TheNational Assembly haspassed lastyeartheInternational Trade Zone Act,1995. Under
thatAct,theMinister ofFinance may, bynotice intheGazette, declare anyareainSeychelles tobe
anInternational Trade Zone andthenotice shalldefine theboundaries ofthezone. According tothis
proviso, three areas havebeendeclared asInternational Trade Zone, thelatter combines thebenefits
ofafreeport andexport processing zone.
(h-i) Trade-related environmental policies andmixing regulations
Although environment playagreat roleingovernment policies, there areforthemoment no
environmental policies affecting directly foreign trade. There arealsonomixing regulations.
(j-k) Government-mandated counter-trade andbarter, andtrade agreements leading tocountry
specific quotas allocation
There arenogovernment-mandated Counter-trade andbarter, andTrade Agreements leading
toCountry-specific quotas allocations.WT/ACC/SYC/3
Page29
(l) Government procurement practices
Government procurement isusually intheform oforders andcommercial contracts placed
andsigned directly withcompanies. However, forcertain works thegovernment mayinvite tenders,
butthere isnospecific legislation governing government procurements.
4. Policies Affecting Foreign Trade inAgricultural Products
While progress hasbeenmade insome areas ofagriculture, notably livestock production,
vegetable production etc.theagricultural sector asawhole hastended tolaybehind many other sectors
oftheeconomy andcontribution toGDP, exports, employment andGovernment revenues isinconstant
decline. Theagricultural sector contribution toGDPwasestimated to4percentin1992. Thesector 's
contributiontoexportearningsstoodatR89million,(includingfisheries)representingabout94percent
oftotalvisible, figure which havebeenslightly increased in1994and1995. Importation offoodduring
1994 amounted toalmost R200million ofwhich vegetables, fruitandmeatproduct accounted for
28percent.
Disturbed bythisdecline anddetermined toreverse theretreat fromprimary production, the
Government undertook amajor review oftheagricultural sector 1989andfinalized, inNovember 1989,
an"Agricultural Sector Strategy" which isdesigned torecover lostground andtoplace theagricultural
sector onagrowth track.
Themain objectives ofthecurrent Seychelles agricultural policy are:
- topromote entrepreneurship andbroader private sector initiative inproduction, processing,
marketing andexports inorder todiversify thesource offoreign exchange;
- tostrengthen andexpand theagricultural productivity andresearch;
- toensure astable foodsupply tothelocalpopulation andthetourism sector withitsgrowing
number ofvisitor arrivals;
- torestrict thegovernment 'sroletothatofafacilitator andcreate theenabling environment
which willallow private sector farmers toplayamore active andprominent roleinsustaining
thecountry 'sdemand foragricultural andfarming produce;
- toprovide adequate institutional, infrastructural andfinancial support tofarmers inorder to
ensure efficient useoflimited landresources;
- topromote andintensify mechanisation andautomation within theagricultural sector;
- toincrease research andtrials inorder toimprove scientific methods ofvegetable production;
- toincrease agricultural contribution GDP.WT/ACC/SYC/3
Page30
5. Policies Affecting Foreign Trade inOther Sectors
Fisheries policy
Fishing hastraditionally occupied animportant place intheday-to-day lifeoftheSeychellois
people andthesector hasalsoplayed andcontinues toplayanimportant roleinthesocial andeconomic
developmentofthissmallislanddevelopingcountry.WiththeemergenceofPortVictoriaastheprincipal
tunaportintheIndian Ocean andthedevelopment ofanindustrial fishery based onthetunastocks
intheSeychelles 'large EEZ, which since 1987hasincluded tunacanning operations, theimportance
offisheries hasconsiderably increased inthepastdecade inSeychelles. Asaresult, theindustrial
fishery continues tobeanimportant source ofeconomic growth. Theinclusion oftheindustrial fishery
andtuna-related activities hasincreased theoverall contribution ofthefisheries sector toGDPtomore
than12percent.
TheSeychelles Fishing Authority (SFA) isincollaboration withtheMinistry ofAgriculture
andMarineResourcesresponsiblefortheformulationofpoliciesrelatingtofishingindustry.Established
under theSeychelles Fishing Authority (Establishment) Act,theSFAismainly responsible forthe
preparation andimplementation ofthenational fisheries management anddevelopment strategy. It
isfurther responsible for:
- negotiating withtherepresentatives offoreign vessels andmonitoring theactivities oftheforeign
fishing fleets;
- managing thefishing resources andconducting scientific anddevelopment research;
- managing thefishing portandappraising fishing projects; and
- ensuring thatthere isatransfer ofappropriate technology forSeychelles toparticipate more
actively inthefishing industry.
In1994 and1995, export offishandfishproducts accounts formore than80percentof
merchandise trade export, what places thefishing second totourism assource offoreign exchange
andgovernment revenues. Thelatter include receipts fromthelicensing offoreign vessels tofishin
theSeychelles EEZ, notably theEuropean Union 'svessels. In1995, themostimportant markets for
Seychelles fishandfishproducts wereFrance, Mauritius, theUnited Kingdom, Germany andPortugal.
Regarding tunatranshipment inPortVictoria, itincreased from 171,043 Metric Tones in1994
(61percentoftotalcatch) to187,145 MTin1995 (61percentoftotalcatch). Thisismainly due
totheGovernment policy ofprivatization offacilities atPortVictoria withasharp reduction inport
charges, andconsequently toshipowner 'spositive response tothispolicy.
There wasa24percentincrease inthenumber oflicences issued in1995 compared to1994
with293licences issued fortheyear.Regarding Fishing licence feescollected for1995, theyamounted
toR36,159,577.90 which corresponds toaslight decrease overthe1994receipts ofR39,503,008.00.
In1995, there wasan18percentdecrease inlicence feescollected from thepurse seiners witha
corresponding increase inlicence feesforlongliners. Inview oftheincrease incatch inside the
Seychelles Economic Exclusive Zone (EEZ) byEECvessels, however, asharp increase isexpected
inpayment oflicence feesforexcess catch for1995 which isnormally made in1996.WT/ACC/SYC/3
Page31
Fortheyear1995, there wasanincrease inboththegross andnetrevenue generated from
theIndustrial TunaFishing activity byforeign fishing vessels inSeychelles. Thisconsists ofexpenditure
onvarious portservices butexcludes earning from thecanning factory. Anincrease ofaround
28percentwasrecorded inthegross revenue including licence fees.
V. TRADE-RELATED INTELLECTUAL PROPERTY RÉGIME
1. General Description
(a) Intellectual property policy
Until1984, theintellectual property system inSeychelles wasthesystem oftheUnited Kingdom
Copyright Actof1956, theTrade Marks Actof1903 andthepatents Actof1901. Given therapid
social andeconomic development, inthelate1970's,theSeychelles Government began tomodernize
theoldsystem oftheintellectual property rights inorder toanswer positively tonewrequirements
oftheSeychelles society andeconomy. Inthisregard, although theoldPatents Actof1901isalways
inforce, in1978theTrade marks Actof1903hasbeenrepealed andreplaced byamore modern Act,
andtheCopyright Actof1956 hasbeenalsorepeal in1984 andreplaced byanewone. Generally
speaking, Seychelles provides legalprotection forinventions, industrial designs trademarks, literacy,
scientific andartistic works, phonogram, copyright, appellations oforigin, artistic performances,
broadcast programmes etc.
(b-c) Governmentministriesresponsibleforpolicyformulationandimplementationandsignature
ofinternational conventions relating tointellectual property rights
Theinstitutional framework forpolicy formulation andimplementation isthefollowing:-
- MinistryofFinanceandCommunicationsisresponsibleforformulatingandimplementingpolicy
inrelation totrade marks ingoods andservices, andpatents.
- Ministry ofEducation andCulture isresponsible forformulating andimplementing policy in
relation tocopyrights.
Regarding membership ofinternational intellectual property conventions, Seychelles hassigned
noconventions inthisfieldforthemoment. Thenewgovernment policy inthisfieldiscentred on
thefollowing points:
- theintroduction ofamodern legislation governing patents forinventions;
- membership inInternational Conventions andtreaties, notably accession totheWord Intellectual
Property Organisation, andthesignature ofbilateral agreements oncooperation andthe
implementation oflegislation.
(d-e) Application ofnational andmost-favoured nation treatment toforeign nationals andfees
andtaxes
Although Seychelles hasforthemoment signed noInternational Conventions inrelation to
intellectual property rights, there isnodiscrimination between Seychellois Nationals andForeignWT/ACC/SYC/3
Page32
Nationals insofarasthelatter comply withtheprocedures setoutintherelevant legislations for
registration ofcopyrights, trade marks andpatents.
Foreign nationals asSeychellois nationals shallpayafeefortheregistration oftrade marks
ingood andservices, copyrights andpatents forinventions.
2. Substantive Standards ofProtection
(a) Copyright andrelated rights
According tosection 3oftheCopyright Act(Chapter 51),copyright istheprotection ofan
eligible work byanexclusive rightconferred ontheauthor oranother person tocontrol foraperiod
of25years inSeychelles oranother place alloranypartofthecopying, reproduction, communication
tothepublic orbroadcasting oftheWork. TheWorks which areeligible forcopyright areliterary
works, musical works, artistic works, performance ofliterary ormusical works, films, sound recordings
andbroadcasts. TheCopyright Actalsostates thataperson who, atatimewhen copyright subsists
inawork, makes forsaleorhire,orsellsorletsforhire,orimports intoSeychelles, otherwise that
forhisprivate anddomestic use,anarticle which heknows tobeaninfringing copyofthework, is
guilty ofanoffence. Please notethattheowner ofcopyright inawork mayapply totheRegistrar
ofCopyrights forregistration ofthecopyright. Where theRegistrar ofCopyrights issatisfied thatthe
applicant istheowner ofthecopyright inthework heshallregister himintheCopyright Register
astheregistered owner ofthatregistered copyright.
Where copyright subsists inawork, onlytheregistered owner isdeemed tobetheowner of
aregistered copyright. However, where aperson claims thatheandnottheregistered owner isthe
owner ofaregistered copyright, hemayapply totheSupreme Court toberegistered asowner inthe
Copyright Register inplace ofthethenregistered owner.
(b) Trade marks relating togoods andservices
Trade marks, whether inrelation togoods orservices, aregoverned bytheTrade Marks Decree
(Chapter 289). Anyperson claiming tobetheproprietor ofatrade mark usedorproposed tobeused
byhim,whoisdesirous ofregistering itmust apply inwriting totheRegistrar ofTrade Marks for
registration ofthatmark. TheRegistrar mayrefuse theapplication, ormayaccept itabsolutely or
subject toamendments, modifications, conditions orlimitations andtheRegistrar muststateinwriting
thegrounds ofhisdecision andthematerials usedbyhiminmaking thatdecision. Please notethat
thelatter issubject toappeal totheCourt andthelatter shallheartheapplicant andtheRegistrar, and
shallmake anorder determining whether theapplication istobeaccepted ornot.When anapplication
forregistration ofatrade mark hasbeenaccepted, theRegistrar shallpublished theapplication as
accepted intheOfficial Gazette before registration andanyperson maygivenotice totheRegistrar
ofopposition totheregistration. Please notethatanyapplicants forregistration ofatrade mark must
normally actthrough patents agents licensed under theAct.
Theregistration ofatrade mark which shallbeforaperiod ofseven years andmayberenewed from
timetotime, shallgivetheproprietor ofthatmark theexclusive righttouseitinrelation toanygoods
orservices. Thatexclusive rightshallbedeemed tobeinfringed byaperson who,notbeing proprietor
ofthetrade mark orregistered userthereof using bywayofpermitted use,usesamark identical with
itorsonearly resembling itastobeinrelation toanygoods orservices inrespect ofwhich thattrade
mark isregistered. Theproprietor ofatrade mark hasthepower toassign histrade mark.WT/ACC/SYC/3
Page33
(e) Patents forinventions
Under thePatents Act(Chapter 156), theRegistrar General isresponsible forregistration of
patents. According tosection 4ofthatAct,anyperson whether acitizen ofSeychelles ornot,may
make anapplication forapatent. TheRegistrar ofPatents, ifhethinks fit,referanyapplication to
anexaminer, whoshallascertain whether thenature oftheinvention hasbeenfairly described and
theapplication anddrawings havebeenprepared according tothatAct.
Therighttoaninvention isconfirmed byapatent which certifies theproprietorship, priority
andexclusive rightofthepatentee tousehisinvention. Inprinciple, patents forinventions arevalid
forfourteen years from thedateofapplication wasreceived bytheRegistrar ofPatents. However,
thePresident oftheRepublic may, onpetition made byapatentee atleastsixmonths before thetime
limited fortheexpiration ofthepatent, extend hispatent forafurther termofseven years orfourteen
years inexceptional cases.
(f-h) Plants variety protection, layout designs ofintegrated circuits, requirements onundisclosed
information
Although anextensive interpretation oftheword"invention" would cover plants variety, layout
designs ofintegrated circuits, therearenospecific provisions inthePatents Actwhich dealwiththem.
However, regarding undisclosed information itisprotected under certain civilandcommercial laws
suchasSecurities Industry Act. Please notealsothattheword "invention" isnotdefined intheAct.
3. Other Categories ofIntellectual Property andMeasures toControl Abuse ofIntellectual
Property Rights
There isnospecific legislation onother categories ofintellectual property rights. Regarding
Control ofpotential abuse ofintellectual property rights, under thePatents ActanyGovernment
department andanyperson authorized inwriting byaGovernment department maymake, use,exercise
andvend anypatented invention fortheservices oftheRepublic. Anyuseoftheinvention inthat
case, shallbemade upon suchterms asmaybeagreed upon either before oraftertheuse,between
thePresident oftheRepublic andthepatentee. Apart from thatcase, there isnolegal mechanism
permitting thegranting ofcompulsory licences iftheowner ofthepatent isconsidered toexploit the
patent insufficiently ornotall.
4. Enforcement: civilandcriminal procedures andremedies
Thecopyright Act,theTrade Marks Decree andthePatents Actcontain provisions which lay
downtheproceduresandmeasuresdealingwithinfringementofintellectualpropertyrights.Forinstance,
according tosection 22oftheCopyright Act(Chapter 51),aperson whoforthepurposes oftrade
orbusiness hasinhispossession anyinfringing copyofawork inwhich subsists copyright isguilty
ofanoffence andisliable toafineofR1000(US$200) foreachinfringing copyandtoimprisonment
for1year.
According totheFirstSchedule totheTrade Marks Decree, aperson who,notbeing proprietor
ofatrade mark oraregistered userthereof using bywayofpermitted use,usesamark identical with
itorsonearly resembling itastobelikely todeceive orcause confusion, inthecourse ofbusiness,WT/ACC/SYC/3
Page34
inrelation toanygoods orservices inrespect ofwhich itisregistered, shallbedeemed toinfringe
theexclusive rightoftheproprietor ofthattrade mark.
Under theSeychelles CivilCode which ismodelled ontheNapoleonic CivilCode, itisbeyond
doubt thattheviolation oftheexclusive rights oftheproprietors ofacopyright, Trade Mark orpatent
entails inevitably thecivilliability oftheoffenders andinvolves bothcompensation forthedamages
suffered bytheproprietor andtheimmediate prohibition oftheillegal usage ofthose rights. Inother
words, anyinfringement ofintellectual property rights inSeychelles mayresult inacourt injunction
tocease theinfringement andincompensation fordamages.
5. Laws, Decrees, Regulations andOther Legal ActsandStatistical Data
ThemainActsgoverningtheintellectualpropertyrightsarementionedinthelistoflaws,Decrees
andRegulations governing andaffecting theSeychelles foreign traderégime which constitutes theAnnex
2ofthisMemorandum. Please notealsothatbetween 1994 and1995, theRegistrar ofTrade Marks
andPatents hasreceived 534applications forregistration oftrades marks andregistered 312,and
3applications forregistration ofpatents andregistered 3,respectively.
VI. TRADE-RELATED SERVICE RÉGIME
1. General Description
InSeychelles likeinmany othersmall-Island States, theservice (excluding government services)
representmorethan64percentoftheGrossDomesticProduct(GDP).Thisover-dependenceonservice
industry explain toalarge extent theextreme influence oftheinternational economic forces onthe
Seychelles economy.
Tourism industry, which alone generates 17percentGDPin1995, wasandisstillshouldered
byother services activities suchasportandairport services, communication services etc.hasfuelled
therapid economic development oftheSeychelles archipelago. Duetogeographical isolation of
Seychelles fromthemainsources ofinputs, thesmall sizeofthedomestic market, limited availability
ofskilled manpower, arable landandnatural resources, thedevelopment ofindustrial andagricultural
activities, which account for12percentand4percentoftheGDP, respectively, isinsignificant.
Since the1990'sthemain challenge facing theSeychelles government ishowtoputinplace
viablemacro-economicstrategyandpolicieswhilecontainingthevulnerabilityoftheeconomytoexternal
shocks. Inanattempt tosearch forviable andsustainable strategy inorder toachieve thisobjective,
thegovernment hassince 1994 taken thedecision totransform Seychelles intoasophisticated and
successful international financial andbusiness centre.
2. Market andRegulatory Structure oftheMost Prominent Services Sectors
According totheLicences Act,1986 andRegulations made under thatAct,itisprohibited
toexerciseanylicenceableactivitywithoutalicenceissuedbytheSeychellesLicensingAuthority(SLA),
ofcourse after consultation theGovernment Department orMinistry responsible forthepolicy
formulation andimplementation inthesector inquestion. Theconditions andprocedures forobtaining
thenecessary licence toexercise oneormore licenceable activities arelaiddown intheRegulations
relating totheactivity oractivities inwhich theapplicant desires toengage. Ifalldocuments requiredWT/ACC/SYC/3
Page35
bythesaidRegulations arepresented bytheapplicant totheLicensing Authority, thelicence maybe
given thedateofapplication iftheGovernment Department orMinistry responsible fortheformulation
andimplementation ofpolicy intheservice sector concerned hasnoobjection totheissuing ofsuch
licence. Please notethataneconomic needs testmaybeusedforcertain services sectors.
(a) Financial services
(i) Banking andfinancial system
Banking business, whether domestic ornon-domestic, isregulated bytheFinancial Institutions
Actof1984asamended in1995. Inaddition totheCentral BankofSeychelles, therearesixCommercial
banks (ofwhich 4arebranches offoreign banks), onedevelopment bankandanumber ofnon-banking
institutions. Awide range offinancial services suchascurrent accounts, savings accounts, loans,
transactions inforeign currencies, foreign currency account, working capital loans, tradefinance, Swift
Services etc.are available inthebanking system. There arenotrestrictions fortheestablishment of
foreign banks andontheparticipation offoreign capital inthelocally incorporated commercial banks
.Theprocedure andconditions toestablish acommercial bankoramerchant bankoranyotherfinancial
institutions arelaiddown intheFinancial Institutions (Domestic banking Business) Regulations, 1996
forthedomestic sector andintheFinancial Institutions (Non-Domestic Banking Business) Regulations,
1996 fortheoffshore sector.
Seychelles hasatwo-tier banking system byseparating theCentral andCommercial bank
functions androle. TheCommercial banks, whether conducting domestic banking business or
non-domestic banking business, areregulated andsupervised bytheCentral bank ofSeychelles on
thebasisofprudential regulations. According totheCentral Bank ofSeychelles Act,theCentral Bank
ofSeychelles isresponsible fortheformulation andimplementation oftheSeychelles 'monetary and
exchange ratepolicies. Foreign banks account formore than55percentofthetotaltrade financing
business. Business Services andthefinancial services industry accounted formore than11.78 percent
ofGDPin1995. Thecentral bankofSeychelles istheonlyadministrative bodyresponsible forreceiving
applications forbanking licence, whether domestic oroffshore, andissuing thecorresponding licence.
Theminimumcapitalandliquidityrequirementsaswellasprudentiallimitoncreditfacilities,investment
inmarketablesecurities,immovablepropertiesandotherassetsareprescribedintheFinancialInstitutions
ActandRegulations made under it.
(ii) Insurance andrelated services
TheSeychelles insurance industry isgoverned bytheInsurance Actof1994 asamended in
1995 andregulated andsupervised bytheInsurance Authority, appointed bytheMinister ofFinance
according tothatAct. AstheFinancial Institutions Act,1984 regulating domestic andnon-domestic
banking business, theInsurance Actregulates domestic andnon-domestic insurance business.
Apart from thesmall sizeofthedomestic insurance market, there arenorestrictions on
establishing aforeign insurance orreinsurance company. Anyinsurance company thatwants tooperate
inSeychelles mayoperate under thesame conditions, aslongasitcomplies withtherequirements
oftheInsurance ActandRegulations made under it.Anyinsurance company musthaveaminimum
paid-up capital, beregistered andoperate under supervision oftheInsurance Authority which isbased
intheMinistry ofFinance andCommunications. Forthemoment, therearetwoinsurance companies
operating onthedomestic market, oneState-owned company andoneprivate-owned company. PleaseWT/ACC/SYC/3
Page36
notethatmore than80percentofthelatter isowned byforeigners and40percentoftotaldomestic
insurance business iswritten byit.
Insurance brokers andagents areregulated bythesameAct.Itisnotrequired tobeaSeychelles
citizen toobtain alicence asaninsurance broker orasaninsurance agent.
(iii) Securities market
Thelegalbaseforestablishment ofaSecurities market islaiddown intheSecurities Industry
Actof1995, which isrecently passed bytheNational Assembly. ThatActprovides thesetting up
ofaSecurities Authority which shallberesponsible forlicensing Securities Exchange, dealers and
dealers 'representatives, investment advisers andinvestment advisers 'representatives.
Inaddition, theSecurities Authority shallcontrol andsupervise theoperation ofaSecurities
Exchange, takeallreasonable steps tosafeguard theinterests ofpersons whoinvest orproposes to
invest inSecurities, issue instruction tothesecurities exchange onanymatter relating tothesmooth
operation ofthesecurities exchange andadvise theMinister ofFinance onallmatters relating tothe
securities exchange.
ThestatutesofSecuritiesExchangeandtraderulesshallbeconfirmedbytheSecuritiesAuthority.
Trade rulesofaSecurities Exchange havetoregulate membership, contributions, Clearing, Settlement
etc.There willbenodiscrimination between Seychellois andforeign brokers, dealers andinvestors.
Please notethatalthough theSecurity Industry Actof1995isalready intoforce thesecurities market
isyetoperational.
(b) Communication services
Thesphere ofcommunication services isregulated bytheBroadcasting andTelecommunication
Actof1988 andPostOffice (ActChapter 175)andRegulations made under those Acts.
Telecommunication services suchasnational andinternational telephone services, including
GSM Service, telefax, telex, telegram, cardphone, leased circuits bothanalogue anddigital, Dattel,
Packet Switching andCentrex, advanced ISDN compatible PABXs withvoice/DATA etc.areprovided
byaprivate telephone company, theCable andWireless (Seychelles), Ltd., asubsidiary oftheCable
andWireless PLCoftheUnited Kingdom. Until 1992, thatcompany hadtheexclusive rights for
theproviding ofthose services, butinthescope ofthestrategy toliberalize theSeychelles economy,
thetelecommunications market hasbeenopentoother private suppliers. Given thesmallness ofthe
Seychelles domestic market (about 15,000 telephone subscribers), theGovernment islooking atvarious
aspects oftelecommunications inSeychelles ingeneral toseewhere competition canbeeffectively
introduced sothatthecustomers canbenefit.
Audiovisual services asalsoregulated bytheBroadcasting andTeleCommunications Actof
1988.TheSeychellesBroadcastingCorporationisresponsibleforthepublicradioandtelevisionservices
activity. ThatCorporation isestablished under theSeychelles Broadcasting Corporation Actof1993.
Given thestrategic location ofSeychelles attheheart oftheIndian Ocean region, twoforeign radios
areoperating from Seychelles.WT/ACC/SYC/3
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(c) Professional services
(i) Legal services
TheAttorney-At-Law services areregulated under theLegal Practitioners Actof1994.
According tothatAct,onlypersons inscribed inthelistofattorneys-at-law oftheRepublic ofSeychelles
have theright tobecalled asattorney-at-law andtopractise theprofession ofattorney-at-law in
Seychelles. Foreign attorneys-at-law canprovide legalservices inSeychelles onlywiththeauthorization
oftheChief Justice, andinaddition, anylawyer, whether Seychellois national ornot,shallpassa
preliminary examination andafinalexamination andspend twoyears ofpupillage inalawfirmbefore
being admitted intheSeychelles BarAssociation. However, anylawyer trained inaBritish, French,
andaMauritian Faculty ofLawshallpasssolely thefinalexamination andspend twoyears ofpupillage
inalawfirmbefore being admitted totheSeychelles BarAssociation. Anylegalpractitioner shall
havealicence issued bytheSeychelles Licensing Authority before engaging inlawyer practice.
(ii) Medical andveterinary services
Inaddition totherequirements ofqualification, itisnecessary tohavealicence toprovide
themedical services, medical treatment etc.National andforeign medical practitioners mayoperate
under thesame conditions, aslongastheycomply withtherequirements ofthePublic Health Act,
Licences ActandRegulations made under those Acts.
Regarding theveterinary services activity, forthemoment, these services areprovided solely
bytheState Veterinary Services though theprivate Veterinary Services arenotprohibited bylaw.
Itisbeyond doubt thatthedefacto State monopoly inthisservice sector isduetothesmall sizeof
thedomestic market. Toprovide these services thequalification ofaveterinary andalicence issued
bytheSeychelles Licensing Authority arerequired.
(iii) Architectural, engineering andrelated services
Therearenospecificlawsgoverningarchitectural,engineeringandrelatedservicesinSeychelles.
However, toprovide theseservices inSeychelles, theproviders needalicence issued bytheSeychelles
Licensing Authority (SLA) inaccordance withtheprovisions oftheLicences Act(Chapter 113)and
therelevant regulations made under thatAct. Anapplicant foralicence toprovide theengineering
andarchitectural services, inthecaseofanindividual, must show theLicensing Authority thathe
possesses adegree ordiploma inengineering inthefieldspecified inhisapplication orinarchitecture
from aninstitution ofinternational repute acceptable totheAuthority, andalsohasthenecessary
experience topractice asanengineer inthefieldspecified orasanarchitect. Inthecaseofabody
corporate,eachofthepartnersmusthavethenecessaryqualificationsandexperiencetoprovideefficiently
theseservices. Although thecommercial presence isnecessary toprovide those services inSeychelles,
there isinfactnodiscrimination between foreign engineers andarchitects andSeychellois ones.
(iv) Management consulting andrelated services andaccounting andauditing services
Asinthecaseofarchitectural andengineering services, there arenospecific lawsgoverning
management consulting services andaccounting orauditing services. However, alicence issued by
theSeychelles Licensing Authority isnecessary. Anapplication forsuchalicence shallbeaccompanied
byacertificate showing thattheapplicant orthepersons employed bytheapplicant possess adegreeWT/ACC/SYC/3
Page38
ordiplomainmanagement,accountingorauditingfromalocalinstitutionoraninstitutionofinternational
repute orthattheapplicant hasobtained adequate knowledge andexperience inthefieldofmanagement,
accounting orauditing inthecourse ofhisemployment. Regarding accountants andauditors, they
mustprovide theAuthority withacertificate showing thattheyaremembers ofalocalassociation of
accountants orauditors ormembers ofaninternational institute orassociation ofaccountants orauditors.
There arenorestrictions onestablishing aforeign firmandthecross-border supply ispossible.
(d) Construction andrelated services
Asother business services, construction andrelated services arealicenceable activity.
Consequently, theproviders ofthese services mustobtain alicence through theLicensing Authority.
Overall construction andrelated engineering services market isregulated byTown andCountry Planning
Act(Chapter 237)andRegulations made under thatAct,through theTown andCountry Planning
Authority oftheMinistry ofCommunity Development.
(e) Tourism andrelated services
Since theearly 1970s tourism hasplayed asignificant roleinthedevelopment ofSeychelles.
Itistoday theprincipal foreign exchange earner forthecountry. Thedirect revenue from tourism
anditsrelated activities isapproximately 17percentofthecountry 'sGDP atcurrent market prices.
Asthemainstay ofmany island economies, thetourism industry inSeychelles isresponsible for
70percentofforeign exchange earnings.
TheMinistry ofTourism andTransport isresponsible fortheformulation ofpolicies relating
totourism. Recently, Tourism Marketing Fund hasbeenestablished bythatMinistry within thestage
ofitsgeneral strategy forthefurther development andpromotion oftourism anditsrelated facilities
andservices inSeychelles.
However, theSeychelles Licensing Authority isresponsible forlicensing andcontrolling any
classorclasses oftourist establishments, tourist guides, travel agents, touroperators etc.under the
Licences Act(Chapter 113). Thelicence toprovide tourism andrelated services isissued bythat
Authority afterconsultation withtheMinistry ofTourism andTransport, theMinistry ofFinance and
Communications andthePlanning andTown Authority. There areinprinciple norestrictions on
establishment byforeign providers oftourism services. Inlinewiththegovernment programme of
economicliberalisationanddiversification,mosttourismandrelatedenterprisesownedbytheSeychelles
Government havebeenprivatized during these lastyears. Foreign investment inSeychelles tourism
sector isbeing encouraged andalready more than50percentofalltourist enterprises owned bythe
government arebought byforeign operators, andthesefigures arebound toincrease asthegovernment
plans tosellother State-owned hotels.
However, theestablishment andmanagement ofsmall hotels ofnotmore than30rooms and
guesthouses arereserved forSeychelles nationals. Similarly, majority ownership inthetouroperators
andtravel agents must beheldbySeychellois Nationals.
Policy andstrategy forthetourism sector overtheincoming years willbetoencourage and
facilitate theprivate sector toplayamore important roleinthatvitalindustry. Inthatconnection,
theGovernment willcreate theenvironment foroptimum development bysimplifying licensing andWT/ACC/SYC/3
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work permit procedures forforeign nationals, liberalising reasonable entry intothetourism sector and
streamlining theapproval process forprojects.
(f) Transport services
(i) Land transport services
Land transportation areregulated under theRoad Transport Act(Chapter 206), Licences Act
(Chapter 113) andRegulations made under them. TheMinistry ofTourism andTransport through
itsLand Transport Division (LTD) andincollaboration withtheSeychelles Licensing Authority is
responsible forplanning, developing, implementing andmanaging public andprivate transport in
Seychelles.
TheLand Transport Division oftheMinistry ofTourism andTransport isinfactresponsible
forregulating thegrowth ofvehicle population, theusage ofvehicles, theroadworthiness standards
toensure roadsafety, incollaboration withtheTraffic Police UnitoftheDepartment ofInternal Affairs
throughinspection,educationandenforcementandhelptheMinistryofEnvironmenttocontrolvehicular
pollution.AsfortheSeychellesLicensingAuthority,thelatterisresponsibleforregisteringandlicensing
motor vehicles anddrivers, respectively, andcollecting motor vehicle registration fees,driving licence
feesetc.
Regarding thecitytransport service, thelatter isexclusively provided bytheSeychelles Public
Transport Corporation (S.P.T.C.), aState-owned corporation established under theSeychelles Public
Transport Corporation Decree.
(ii) Maritime transport services
TheSeychelles merchant shipping industry isregulated bytheMerchant Shipping Actof1992
andthecarriage ofGoods bySeaAct(Chapter 24).TheMerchant Shipping Act, makes provisions
forregistrationofships,classification,safetyprocedures,registration,dischargeandtransferofmortgage
inrespect ofships, liabilities ofshipowners, seaworthiness ofships, master andseamen etc.ThatAct
doesnotrestrict foreign particulars intheshipping industry inSeychelles andalsodoesnotprescribe
anyform ofcargo sharing withforeign partners.
ThePortandMarine Services Division oftheMinistry ofTourism andTransport isresponsible
forsupervising andcontrolling allmatters towhich theMerchant Shipping relates. TheHarbour Master
whoisworking under thesupervision ofaDirector General isresponsible forregistering ofships or
vessels under thatAct.
(iii) Airtransport services
Themainlegislations regulating airtransport services inSeychelles aretheCivilAviation Act,
1949 (Overseas Territories) Order of1969, theCarriage byAir(Overseas Territories) Order, 1967
anddifferent setsofRegulations made under thatAct. These legislations areadministered bythe
Ministry ofTourism andTransport through theDirectorate ofCivil Aviation (DCA) which ismainly
responsible formaintaining andmanaging airport andaerodromes inSeychelles, andatthesame time
providing various airservices toaircrafts andother aeronautical services. TheDCA actsasprincipal
adviser totheSeychelles Government onallmatters relating tocivilaviation, negotiates bilateral airWT/ACC/SYC/3
Page40
services agreements onbehalf oftheSeychelles Government andrepresents itatinternational level
onallmatters relating tocivilaviation.
International flights scheduled byinternational aircarriers to/from Seychelles aresubject to
bilateral airservices agreements between theRepublic ofSeychelles andthehome countries ofthese
international aircarriers. Airlines flying to/from Seychelles canfixtheirfareswhich areinprinciple
determined bymarket forces. However, these fares must benotified totheDCA forapproval or
information depending ontheprovisions stipulated inthebilateral airservices agreements which in
general dealwithtraffic rights, routes, flight frequency, commercial operations, fiscal status ofair
carriers.
There isnodiscrimination between domestic andforeign airlines.
3. Monopolies andExclusive Suppliers andSafeguard Measures
Inthesphere ofservices there areState monopolies incitytransport, electricity, water,
distribution ofpoststamps, envelopes andpostcards withpoststamps anddelivery ofpostal orders
andletters.
Concerning safeguard measures, there isnolegalmechanism andstructure inplace toapply
them inSeychelles.
4. International Transfers andPayments forCurrent Transactions ofServices
Asanoffshore centre, there arenorestrictions inSeychelles oninternational transfers and
paymentsforanycurrenttransactions,includingrepatriationofprofits,dividendsinterestsetc.byforeign
investors. There arealsonorestrictions onimports orexports offreely convertible currency, into
orfromSeychelles. However, theshortage offoreign exchange mayinpractice delay certain transfers
andpayments.
5. Capital Transactions
There arenorestrictions oncapital imports intoSeychelles byforeign investors. Apart from
theshortage offoreign exchange which maydelay exports oflargesums, therearealsonorestrictions
oncapital exports from Seychelles.
6. Government Procurement ofServices andConsumer Subsidies forEssential Services
Thepractices usedforgovernment procurement ofservices aresimilar tothose usedfor
procurement ofgoods.
There areconsumer subsidies forcertain essential services suchascitytransport, electricity,
housing provision, medical services, educational services etc.Allprivate providers ofmedical services
areexempt from Trades Taxonservices, itisthesame forrestaurant, carhirers, tourism services
etc.
Thecurrent business tax,(Taxonprofits) isimposed bytheBusiness TaxActandispaidby
allpersons engaged inaneconomic activity other thanasalaried employment. ThefirstR24,000 ofWT/ACC/SYC/3
Page41
netprofit areexempt fromTax. Dividends andinterests paidtonon-residents andindividuals arealso
exempt fromTax.Farmers, andfisherman whodonotexercise theiractivity through atrading company
areexempt from tax.Please notealsothatpersonal income, capital gains tax,gifttax,inheritance
tax,VAT, property tax,etc.donotexistinSeychelles.
Market Access andNational Treatment
(a-d) Limitations onthenumber ofservice suppliers; onthetotalnumber ofservice transactions
orassets; onthetotal number ofservice operations oronthetotal quantity ofservice
output; andonthetotalnumber ofnatural persons employed inaparticular sector
Apart fromthelimitations imposed bythesmall sizeofthedomestic market, therearenosuch
limitations imposed bylawandadministrative measures. However, restrictions foremployment are
applying forforeigners whohavenotagainful occupation permit (GOP).
(e) Restrictions on,orrequirements ofspecific types oflegal entity ofservice provider
There arenosuchrestrictions.
(f) Limitations ontheparticipation offoreign capital
Except inthecompanies which ownlandinwhich theforeign participation ofmore that
33percentofthepaid-up capital issubject totheSeychelles government approval, thereisnolimitation
onparticipation offoreign capital.
Most-Favoured-Nation Treatment
Although theSeychelles government hassigned several international transportation, educational
orcultural cooperation agreements, there arenomeasures andagreements inconsistent with
most-favoured-nation treatment.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
1. Bilateral orplurilateral agreements relating toforeign trade ingoods andtrade inservices
Seychelles hassigned theLomé IVConvention inwhich areembodied therules governing
trade relations andeconomic cooperation between theACP countries andtheEuropean Union.
Inaddition totheLomé IVConvention, Seychelles hasalsosigned several bilateral agreements on
trade, technical, economic andcultural cooperation. Theprovisions ofthese agreements arenot
incompatible withtheMFN principle. Bilateral agreements aresigned withthefollowing countries:
Algeria, Australia, Bahrain, Bulgaria, China, Cuba, European Union, France, Germany, Greece,
Hungary, India, Iraq, Israel, Japan, North Korea, Madagascar, Morocco, Malaysia, Mauritius,
Netherlands, Pakistan, Singapore, Spain, Switzerland, Tanzania, United Kingdom, Russia, Zambia.WT/ACC/SYC/3
Page42
Also, inorder toattract more direct foreign investments, theSeychelles Government is
contemplating tosignanetwork ofDouble taxation Agreements (DTAs) withsome keycountries in
Europe, Asia, Africa etc.
2. Economic integration, customs union andfree-trade areaagreements
TheRepublic ofSeychelles 'recent initiatives anddebate onthesubject ofeconomic integration
hastobeviewed within thewider context ofAfrica 'sstrategy ofregional economic cooperation and
integration which, inrecent years, hasreceived atremendous impetus fromtheprocess ofglobalization
oftheworld economy andoftheregional organisations andinitiatives intheEastern andSouthern
Africa Subregion andtheIndian Ocean Rim.
Attheeastern andsouthern African level, Seychelles hasofficially acceded tothePreferential
Trade AreaforEastern andSouthern Africa (PTA), buthasnotyetsigned theTreaty which transforms
thisorganisation intotheCommon Market forEastern andSouthern Africa (COMESA). Seychelles
isamemberoftheIndianOceanCommissionandaferventdefenderoftheIndianOceanRimAssociation
thatAustralia, India, Mauritius, South Africa arepromoting.
3. Labour markets integration agreements
Seychelles hasconcluded nolabour markets integration agreements.
4. Multilateral economic cooperation
Since thelateof1970'sSeychelles hasbeenamember oftheInternational Monetary Fund,
theWork bank, theInternational Finance Corporation, theInternational Centre fortheSettlement of
Dispute onInvestments. Seychelles issince 1992amember oftheMultilateral Investment Guarantee
Agency. Attheregional levelisamember oftheOrganisation oftheAfrica Unity (OAU), theAfrican
development bank, theAfrican Reinsurance Corporation, theIndian Ocean Commission etc.
Seychelles isamember oftheUnited nations andalmost allitssatellite organisations suchas
UNDP, UNCTAD, WHO, UNESCO, UNEP, UNIDO etc.Seychelles hasalsosigned several
internationalconventionssuchastheUNconventiononopensea,conventionoftheWorldMeteorological
Organisation, convention ontheprohibition oftheDevelopment Production andstock-piling of
Bacteriological, Biological andToxin weapons andontheirdestruction, theCollision convention, the
LoadLineconvention andtheSafety convention relating tomaritime transport ,theVienna convention
against Illicit Traffic inNarcotic Drugs andPsychotropic substances etc.Please notealsothatSeychelles
participates intheInternational Labour Organisation, theWorld Meteorological Organisation, theUnion
Postale Universelle, theInternational Civil Aviation organisation, theCommonwealth etc.WT/ACC/SYC/3
Page43
ANNEXES
Annex 1 Macroeconomic indicators: 1991 -1995
Annex 2 ListofLaws andRegulations
Annex 3 Information onImport Licensing Procedures
Annex 4 Table 1 Summary ofExternal Trade: 1979 -1994
- Table 2 Value ofImports bySITC Section: 1990 -1994
- Table 3 Value ofImports (c.i.f.) bycountry oforigin: 1990 -1994
- Table 4 Domestic Exports bymain countries ofdestination: 1990 -1994
- Table 5 Value ofRe-Exports: 1989 -1994
- Table 6 Re-Exports bySITC Section: 1994
- Table 7 Balance ofpayments: 1990 -1995
- Table 8 Re-Exports: 1990 -1995
- Table 9 Domestic Exports: 1990 -1995
- Table 10 Imports (c.i.f.) -bySITC Sections: 1990 -1995WT/ACC/SYC/3
Page44
ANNEX 1
Macroeconomic Indicators: 1992 -1995
1992
R(million)1993
R(million)1994
R(million)1995
(January to
August; percentage
change from same
period of1994)
GDP (inconstant prices, 1986
=100)1845.3 1939.6 n/a n/a
Industrial output (inconstant
prices, 1991 =100) 294 322.4 n/a n/a
Agricultural output (inconstant
prices, 1991 =100)64.1 59.3 n/a n/a
Rupee/US$ rate 5.1363 5.1813 5.0544
Consumer prices
average price levelofcurrent year
overaverage price levelof
previous year 98.5/95.4 99.8/98.5 101.6/99.8 102.4/101.8
December 94to
August 1995
Change from December of
previous yeartoDecember of
current year(percentchange of
current leveloverlevelyearago)97.5/96.0 99.2/97.5 1.02621 102.4/101.8
Exports (Allcountries US$m= 48 51 49 n/a
Imports (Min. USD) (F.O.B) 180 216 188 n/a
* DataforJanuary -June1995
Components ofGDP (percentoftotalGDP, incurrent prices)
100 100 100 100forthefirst
quarter
1995
Private consumption 54 53 n/a n/a
Government consumption 30 30 n/a n/a
Gross accumulation 21 29 n/a n/a
Balance oftrade ingoods and
services*-19 -44 -17 n/a
US$millionWT/ACC/SYC/3
Page45
ANNEX 2
ListofLaws andRegulations
1. Animal (Diseases andImports) Act (Chapter 9)
2. Bankruptcy andInsolvency Act (Chapter 13)
3. BillsofExchange Act (Chapter 15)
4. Broadcasting andTelecommunications Act (Chapter 19)
5. Business TaxActasamended in1994 (Chapter 20)
6. Carriage byAir(Overseas Territories) Order, 1967 (Chapter 22)
7. Carriage byAirActs(Application ofProvisions)
Overseas Territories) Order, 1967 (Chapter 23)
8. Carriage ofGoods bySeaAct (Chapter 24)
9. Central Bank ofSeychelles Act (Chapter 26)
10. Cinematograph FilmCensorship Act (Chapter 29)
11. Civil Aviation Act,1949 (Overseas Territories) Order, 1969 (Chapter 31)
12. Civil Code ofSeychelles Act (Chapter 33)
13. Commercial Code Act (Chapter 38)
14. Companies Act (Chapter 70)
15. Control andProtection ofClient ’sAccount Act (Chapter 44)
16. Control ofSupplies andServices Act (Chapter 49)
17. Co-operatives Act (Chapter 50)
18. Copyright Act (Chapter 51)
19. Criminal Procedure Act (Chapter 54)
20. Development Bank ofSeychelles Decree (Chapter 63)
21. Development Loans Act (Chapter 64)
22. Employment Act (Chapter 69)
23. Entertainments TaxAct (Chapter 70)
24. Environment Protection Act (Chapter 71)
25. Essential Services andProperty Protection Act (Chapter 72)
26. Exchange Control Act (Chapter 76)
27. Financial Institutions Actasamended in1995 (Chapter 79)
28. Firearms andAmmunition Act (Chapter 80)
29. Fisheries Act (Chapter 82)
30. Food Act (Chapter 83)
31. Insurance Act (Chapter 97)
32. International Monetary Fund (Membership ofSeychelles) Act (Chapter 102)
33. Interpretation andGeneral Provisions Act (Chapter 103)
34. Legal Practitioners Act (Chapter 111)
35. Licences Act (Chapter 113)
36. Medical Practitioners andDentists Act (Chapter 126)
37. Parastatal Corporations Act (Chapter 154)
38. Patents Act (Chapter 155)
39. Plant Protection Act (Chapter 171)
40. PostOffice Act (Chapter 175)
41. Public Finances (Control andManagement) Act (Chapter 188)
42. Public Health Act (Chapter 189)
43. Public Utilities Corporation Act (Chapter 196)
44. Quarantine Act (Chapter 197)
45. Registration ofBusiness Names Act (Chapter 202)
46. Security onMovables Act (Chapter 209)
47. Seychelles Bureau ofStandards Act (Chapter 212)WT/ACC/SYC/3
Page46
48. Seychelles Code ofCivil Procedure (Chapter 213)
49. Seychelles Fishing Authority (Establishment) Act (Chapter 214)
50. Seychelles Marketing Board Act (Chapter 218)
51. Seychelles Public Transport Corporation Decree (Chapter 224)
52. Social Security Act (Chapter 225)
53. Stamp Duty Act (Chapter 226)
54. Taxation (Professional Charging) Act (Chapter 234)
55. Trade Marks Decree (Chapter 239)
56. Trades TaxAct (Chapter 240)
57. Treasury BillsDecree (Chapter 272)
58. International Business Companies Act,1994
59. International Trusts Act,1994
60. Security Industry Act,1995
61. Insurance (Domestic Insurance Business) Regulations, 1996
62. Insurance (Non-Domestic Insurance Business) Regulations, 1996
63. Financial Institutions (Domestic Banking Business) Regulations, 1996
64. Financial Institutions (Non-Domestic Banking Business) Regulations, 1996
65. Trades Tax(Regulations) 1994 asamended
66. Licences (Tour Operators andTravel Agents) Regulations
67. Licences (Trades) Regulations, 1987.
68. Licences (Services) Regulations, 1987
69. Licences (Broadcasting andTelecommunications) Regulations, 1988
70. Licences (Accommodation, Catering andEntertainment) Regulations, 1987
71. Licences (Health Services) Regulations, 1996.WT/ACC/SYC/3
Page47
ANNEX 3
Information onImport Licensing Procedures
I. Introduction
Generallyspeaking,theSeychellestradepolicyallowstheimportationinSeychellesofallforeign
goods from allcountries allovertheworld. However, contrary toimports byindividuals and
organisations forpersonal use,allimports fordirect retail orwholesale trade aresubject toimport
licence which isprocessed andissued bytheSeychelles Licensing Authority (SLA) inaccordance with
theLicences (Trades) Regulations of1987 made under theLicences Actof1986.
Inpractice, thistypeoflicence issemi-automatic because theessential requirements arethe
following:
(i) Ifpremises tobeusedforimporting, wholesaling andretailing isnewly constructed, anapplicant
forimport licence must provide theSLA witha“Certificate ofOccupancy ”issued bythe
Planning Authority established under theTown andCountry Planning Act;
(ii) ifpremises which hasnotreceived thePlanning Authority ’sapproval istobeusedforimporting,
wholesaling andretailing forthefirsttime, theapplicant mustprovide theSLAwithacopy
ofhis“Change ofUseCertificate ”issued bythePlanning Authority.
II. Objectives andScope oftheImport Licence
Theholder ofanimport licence cantrade inalloranyofthefollowing categories ofgoods
applied for,approved andincluded inthelicence issued:
1. Food, beverages, tobacco andhousehold items
2. Building materials andhardware
3. Mineral fuelsandoils
4. Medical andpharmaceutical products
5. Cosmetics andsouvenir typegoods
6. Agricultural products
7. Textiles andgarments
8. Machinery andtransport equipment
9. Household electrical appliances andequipment
10. Electronic equipment
11. Office machinery andequipment
12. Computers andparts
13. Telecommunication apparatus
14. Rawmaterials forfurther processing etc.
Inaddition totheimport licence, animport permit issued bytheMinistry ofFinance and
Communications under theTrades TaxRegulations of1994mayberequired forcertain types ofgoods,
asmaybeprescribed bythatMinistry. Strictly speaking, theprimary andsoleobjective ofthatimport
permit istocopewiththedeterioration ofbalance ofpayments resulting fromthemassive andsudden
increase inimports. Consequently, therequirement ofimport permit forsome products prescribed
bynotice published intheOfficial Gazette constitutes atemporary measure when iscalled toremove
immediately aftertheimprovement ofBalance ofPayments situation. Furthermore, imports andexports
ofanimals, animal products, medicaments, materials formedical useetc.arealsosubject tothe
authorization oftheMinistry ofHealth. Inthesame vein, imports andexports ofplant material,WT/ACC/SYC/3
Page48
beneficial organism, soil,packaging etc.aresubject totheauthorization ofthePlantAuthority appointed
underthePlantProtectionActof1996bytheMinisterresponsibleforAgricultureandMarineResources.
Please notethattheestablishment andthemaintenance oftheimport licensing system arefor
revenue purposes andarenotintended torestrict thequantity orvalue ofimports.
III. Procedures andEligibility ofImporters toApply foranImport Licence
Asmentioned earlier, theapplication foranimport licence shallbesubmitted totheSeychelles
Licensing Authority (SLA), andifallnecessary documents aresubmitted totheAuthority, adecision
isnormally taken within 7daysofthedateatwhich theapplication hasbeenlodged.
Inpractice, animport licence cannot begranted immediately onrequest. However, anapplicant
mayobtain animport licence aftergoods areshipped from abroad. TheSLAcanrefuse toissue a
licence iftheapplicant doesnotmeettheordinary requirements suchasexistence ofsafeandadequate
premises, orCertificate ofOccupancy ofthePlanning Authority. Inanycase, theSLAshallinform
theapplicant thatithasrefused togrant animport licence, giving thereasons forthatrefusal. However,
theapplicant hastherighttochallenge theSLA’sdecision before theMinister ofFinance within 15
daysfrom thedatethatdecision hasbeenmade.
IV. Documentation forApplication foranImport Licence andConditions ofLicensing
Ingeneral, anapplicant foranimport licence mustfillanapplication formandthelatter must
include information suchasname ofapplicant andaddress, certificate ofincorporation orregistration
forcompanies, termofvalidity ofthelicence, customs office which willcleartheimports ifany,and
finally, name, function andsignature oftheresponsible officer oftheapplicant.
Inprinciple, allimport licences arevalidforaperiod ofoneyearorthree years fromthedate
ofissue unless earlier revoked bytheSLA, andarenottransferable between importers. Inaddition
toanapplication feeofUS$10,thelicence feeisofUS$240foroneyearandUS$1600 forthree
years.
Asmentioned earlier, apart from import licence, animporter, whether mere individual or
professional trader, must comply withother procedural requirements imposed under theTechnical
StandardsregulationsandSanitaryandPhytosanitaryregulationsforimportedgoods.Pleasenotefurther
thatthere isnoforeign exchange control inSeychelles andconsequently import licence isnota
precondition forhaving access toforeign exchange. Also, nodeposit oradvance payment isassociated
withtheissuance ofimport licence.WT/ACC/SYC/3
Page49
ANNEX 4
SUMMARY OFEXTERNAL TRADE: 1979-1994
TABLE 1
Imports
(C.i.f)Domestic
Exports
(f.o.b)Re-exports
(f.o.b)Balance of
Trade
(3)
1979 534,779 30,948 107,675 -396,156
1980 631,442 32,930 102,279 -496,233
1981 589,011 27,471 80,868 -480,672
1982 641,322 20,297 79,787 -541,238
1983 594,082 25,250 111,997 -456,835
1984 618,728 21,,398 160,071 -437,259
1985 704,718 21,858 177,832 -505,028
1986 651,965 13,863 99,789 -538,312
1987 633,898 35,929 88,145 -509,824
1988 856,634 75,698 95,628 -685,308
1989 930,156 70,112 123,407 -736,637
1990 993,779 73,139 228,366 -692,274
1991 910,425 87,569 170,701 -652,156
1992 980,867 93,160 152,501 -735,206
1993 1,234,858 78,776 186,246 -969,836
1994 1,042,366 114,293 141,382 -786,690
Source: Management andInformation Systems Division
Notes: (3) Domestic exports plusre-exports minus importsWT/ACC/SYC/3
Page50
VALUE OFIMPORTS BYSITC SECTION: 1990 -1994
TABLE 2
Thousand Rupees
Section (1) Description 1990 1991 1992 1993 1994
0
1
2
3
4
5
6
7
8
9Total allimports
Food &liveanimals
Beverages &tobacco
Crude materials
inedible
Mineral fuellubricants
&related materials
Animal &vegetable
oils&fats
Chemicals
Manufactured goods
Machinery &transport
equipment
Miscellaneous
Manufactured articles
Commodities not
elsewhere specified (2)993,779
155,747
26,227
19,287
191,639
5,905
54,132
165,513
262,864
111,278
1,187910,425
154,167
20,031
14,219
199,078
9,788
54,988
154,257
210,265
93,493
141980,867
181,979
24,965
18,597
168,419
8,783
73,549
175,990
203,747
124,554
2831,234,858
194,102
42,765
17,004
175,554
9,605
81,003
226,836
309,671
177,673
6441,042,366
190,687
19,284
18,238
162,301
11,497
71,411
205,092
241,360
121,487
1,010
Source: Management andInformation Systems Division
Notes: (1) Standard International Trade Classification (Rev.2)
(2) Includes imports cleared provisionally pending finaldocumentationWT/ACC/SYC/3
Page51VALUE OFIMPORTS (c.i.f) BYCOUNTRY OFORIGIN: 1990 -1994
TABLE 3
Thousand Rupees/% oftotal
Country 1990 1991 1992 1993 1994
Total 993,779 100.0% 910.425 100.0% 980,867 100.0% 1,234,858 100.0% 1,042,366 100.0%
Australia 13,485 1.4% 9.687 1.1% 16.506 1.7% 18,300 1.5% 16,739 1.6%
Austria 376 0.0% 1,217 0.1% 207 0.0% 1,743 0.1% 180 0.0%
Bahrain 80,816 8.1% 147,413 16.2% 158,151 16.1% 231 0.0% 113 0.0%
Belgium 5,604 0.6% 8,470 0.9% 16,700 1.7% 6,620 0.5% 11,668 1.1%
China 11,922 1.2% 11,120 1.2% 17,079 1.7% 13,067 1.1% 10,607 1.0%
Cuba 13 0.0% - 0.0% 6 0.0% 0 0.0% 0 0.0%
Denmark 5,350 0.5% 4,173 0.5% 5,413 0.6% 3,555 0.3% 2,547 0.2%
Djibouti 4 0.0% - 0.0% - 0.0% 0 0.0% 0 0.0%
France 112,024 11.3% 80,153 8.8% 44,574 4.5% 76,478 6.2% 59,992 5.8%
Germany 27,684 2.8% 28,926 3.2% 21,325 2.2% 39,766 3.2% 14,174 1.4%
Hong Kong 11,333 1.1% 7,263 0.8% 9,278 0.9% 8,471 0.7% 7,490 0.7%
India 13,260 1.3% 12,596 1.4% 11,970 1.2% 25,974 2.1% 15,594 1.5%
Ireland 861 0.1% 1,282 0.1% 2,376 0.2% 5,933 0.5% 13,722 1.3%
Italy 21,421 2.2% 22,466 2.5% 34,656 3.5% 31,969 2.6% 32,765 3.1%
Japan 60,798 6.1% 47,771 5.2% 46,965 4.8% 71,258 5.8% 34,384 3.3%
Kenya 20,292 2.0% 12,435 1.4% 12,077 1.2% 17,783 1.4% 22,976 2.2%
Korea (N) 32 0.0% - 0.0% 49 0.0% 0 0.0% 98 0.0%
Korea (S) 1,683 0.2% 1,251 0.1% 4,206 0.4% 2,192 0.2% 1,564 0.2%
Kuwait 86,673 8.7% - 0.0% - 0.0% - 0.0% 0 0.0%
Malaysia 7,183 0.7% 36,624 4.0% 17,536 1.8% 15,303 1.5% 12,219 1.2%
Malta 17 0.0% 175 0.0% 22 0.0% 1 1.8% 0 0.0%
Mauritius 21,165 2.1% 16,488 1.8% 15,220 1.6% 18,227 0.3% 17,850 1.7%
Netherlands 17,691 1.8% 18,392 2.0% 23,568 2.4% 21,831 0.0% 23,671 2.3%
New Zealand 1,966 0.2% 813 0.1% 3,391 0.3% 3,726 0.5% 3,475 0.3%
Oman 0 0.0% 0 0.0% - 0.0% - 13.1% 0 0.0%
Pakistan 480 0.0% 8,112 0.9% 12,111 1.2% 6,685 12.8% 4,357 0.4%WT/ACC/SYC/3
Page52Country 1990 1991 1992 1993 1994
Singapore 101,560 10.2% 105,562 11.6% 158,936 16.2% 161,688 0.9% 152,451 14.6%
South Africa 134,284 13.5% 117,774 12.9% 141,087 14.4% 158,506 0.0% 138,181 13.3%
Spain 12,884 1.3% 17,115 1.9% 9,654 1.0% 11,565 0.9% 17,169 1.6%
Swaziland 560 0.1% 127 0.0% 29 0.0% 296 0.0% 968 0.1%
Sweden 20,152 2.0% 14,797 1.6% 4,562 0.5% 11,716 0.9% 4,630 0.4%
Switzerland 2,958 0.3% 2,185 0.2% 2,868 0.3% 5,571 0.5% 4,053 0.4%
Taiwan 4,378 0.4% 2,979 0.3% 4,308 0.4% 3,867 0.3% 3,699 o.4%
Tanzania 377 0.0% 11 0.0% 0 0.0% 0 0.0% 0 0.0%
Thailand 16,200 1.6% 19,060 2.1% 12,345 1.3% 26,358 2.1% 18,818 1.8%
UAE 1,338 0.1% 12,879 1.4% 3,017 0.3% 2,159 0.2% 4,792 0.5%
UK 143,097 14.4% 104,935 11.5% 126,751 12.9% 164,619 13.3% 183,843 17.6%
USA 18,404 1.9% 22,359 2.5% 24,673 2.5% 95,419 7.7% 39,681 3.8%
USSR 1,374 0.1% 1,266 0.1% 747 0.1% 8 0.0% 0 0.0%
Yemen (PDR) - 0.0% - 0.0% - 0.0% 161,859 13.1% 147,221 14.1%
Zimbabwe 828 0.1% 1,289 0.1% 1,648 0.2% 1,867 0.2% 64 0.0%
Others 13,247 1.3% 11,256 1.2% 16,855 1.7% 40,254 3.3% 20,609 2.0%
Source: Management Systems DivisionWT/ACC/SYC/3
Page53DOMESTIC EXPORTS BYMAIN COUNTRIES OFDESTINATION: 1990 -1994
TABLE 4
Thousand Rupees/% oftotal
Countries of
destination 1990 1991 1992 1993 1994
TOTAL
Australia
Belgium
Brazil
Canada
France
Germany
Hong Kong
India
Italy
Japan
Mauritius
Netherlands
Pakistan
Reunion
Singapore
South Africa
Switzerland
UK
USA
Other73,139
-
-
248
57
33,796
469
1,580
21
3,888
122
545
-
1,719
17,318
1,006
568
-
11,370
46
386100%
-
-
0.3%
0.1%
46.2%
0.6%
2.2%
0.0%
5.3%
0.2%
0.7%
-
2.3%
23.7%
1.4%
0.8%
-
15.5%
0.1%
0.5%87,569
193
-
12
52
19,979
1,799
1,095
-
311
-
2,133
171
944
11,906
1,448
332
-
46,178
6
1,309100%
0.2%
-
0.0%
0.1%
22.8%
2.1%
1.3%
-
0.4%
-
2.4%
0.2%
1.1%
13.6%
1.3%
0.4%
-
52.7%
0.0%
1.5%93,160
81
3,854
75
25
40,138
1,800
945
-
137
32
7,256
1,264
734
10,154
3,279
1,489
11
20,312
20
1,553100%
0.1%
4.1%
0.1%
0.0%
43.1%
1.9%
1.0%
-
0.1%
0.0%
7.8%
1.4%
0.8%
10.9%
3.5%
1.6%
0.0%
21.8%
0.0%
1.7%78,776
164
3,421
-
239
11,305
3,109
1,085
-
72
427
542
1,549
298
7,236
3,420
1,021
29
43,432
56
1,371100%
0.2%
4.3%
-
0.3%
14.4%
3.9%
1.4%
-
0.1%
0.5%
0.7%
2.0%
0.4%
9.2%
4.3%
1.3%
0.0%
55.1%
0.1%
1.7%114,293
513
2,894
-
23
5,132
16,180
469
-
11,197
878
1,702
901
-
8,927
1,606
643
75
58,029
50
5,075100%
0.4%
2.5%
-
0.0%
4.5%
14.2%
0.4%
-
9.8%
0.8%
1.5%
0.8%
-
7.8%
1.4%
0.6%
0.1%
50.8%
0.0%
4.4%
Source: Management andInformation SystemWT/ACC/SYC/3
Page54
VALUE OFRE-EXPORTS: 1989 -1994
TABLE 5
Thousand Rupees
Description 1989 1990 1991 1992 1993 1994
TOTAL
To:
Ships &aircraft (1)
Petroleum products (2)
Food, beverages, tobacco
&chemicals
Other items
Other re-export123,407
112,577
107,522
2,285
2,770
10,830228,366
150,795
148,904
1,435
456
77,571170,701
157,563
156,383
971
209
13,138152,501
144,373
141,995
1,881
497
8,129186,246
148,997
146,086
2,428
483
37,249141,382
124,206
119,871
3,227
1,107
17,176
Source: Management andInformation Systems Division
Notes: (1) These items areimported intobond andre-exported tointernational carriers
(2) Partially estimated
RE-EXPORT BYSITC SECTION: 1994
TABLE 6
Rupees
Section Description Total Ships/aircrafts Other
Total 141,382,011 124,205,958 17,176,053
0 Food andliveanimals 937,958 836,754 101,204
1 Beverages andtobacco 2,636,295 2,077,073 559,222
2 Crude materials, inedible 7,938 68 7,870
3 Mineral fuels, etc 119,871,426 119,871,426 -
4 Animal andvegetable
oilsandfats- 3,099
--
5 Chemicals 339,984 313,625 26,359
6 Manufactured goods 197,415 32,302 165,113
7 Machinery andtransport
equipment7,040,666 315,369 6,725,297
8 Miscellaneous
manufactured articles10,319,867 756,242 9,563,625
9 Commodities, n.e.s. 27,363 - 27,363
Source: Management andInformation Systems DivisionWT/ACC/SYC/3
Page55
Balance ofPayments: 1990 -1995
TABLE 7
(Rmillion)
1990 1991 1992 1993 1994 1995
CURRENT ACCOUNT -69.9 -45.0 -36.8 -199.9 -96.8 -181.1
Goods, net -582.4 -600.5 -678.6 -853.9 -688.9 -771.0
Receipts (ofwhich) 302.21 259.2 246.3 266.2 263.0 268.1
Merchandise exports (f.o.b.) 150.7 100.7 101.3 116.0 137.9 142.9
Goods procured inPorts 150.8 157.6 144.4 149.0 124.2 123.9
Payments (ofwhich) 884.6 859.7 925.0 1120.0 951.8 1039.0
Merchandise Imports (f.o.b) 844.7 773.9 833.8 1049.6 886.0 961.5
Goods procured inPorts 26.4 24.1 22.4 33.4 26.8 48.3
Services, net 485.5 526.4 600.5 623.8 607.4 626.2
Receipts (ofwhich) 914.5 884.6 992.8 1105.4 1010.1 1039.3
Transportation 213.0 297.4 317.3 345.7 334.8 353.5
Travel (ofwhich) 649.5 528.8 615.9 693.1 614.0 613.7
Tourism income through banks 645.5 525.8 599.5 607.4 510.0 466.2
Government services 52.0 58.4 59.6 66.6 61.3 69.4
Payments (ofwhich) 429.01 358.2 392.3 481.6 402.6 413.0
Transportation 159.4 149.5 163.0 198.0 161.6 183.4
Travel 181.3 125.5 144.9 179.1 133.7 114.0
Government services 9.5 10.5 12.0 12.4 13.9 15.0
Income -70.3 -57.1 -47.5 -56.2 -56.0 -76.0
Receipts 23.8 26.5 26.4 26.0 28.0 30.5
Payments 94.0 83.6 73.9 82.2 84.0 106.5
Transfers, net 97.3 86.2 88.9 86.4 40.7 39.7
Private, net -13.6 -13.0 -14.3 -29.8 -35.3 -23.7
Official, net 110.9 99.2 103.2 116.2 76.0 63.4
CAPITAL AND FINANCIAL
ACCOUNT119.4 163.4 -14.9 133.0 98.6 131.4
Direct investment 101.7 96.8 40.3 90.5 144.8 186.5
Abroad 6.0 6.0 6.0 6.0 6.5 7.0
InSeychelles (ofwhich) 107.7 102.8 46.3 96.5 151.3 193.5
Equity capital 71.4 67.8 16.3 59.0 115.8 138.7
Other investment 17.7 66.6 -55.2 42.5 -46.2 -55.1
Assets 7.5 32.9 2.1 9.6 15.9 33.7
Liabilities (ofwhich) 25.2 99.5 -53.1 -52.1 -30.3 -21.5
Official loandrawings 74.8 162.6 28.5 98.4 52.9 24.1
Official loanpayments 99.1 91.4 67.7 71.8 97.1 89.4WT/ACC/SYC/3
Page56
1990 1991 1992 1993 1994 1995
Neterrors andomissions -28.2 -109.9 -32.3 14.6 -62.5 -17.2
OVERALL BALANCE 21.3 8.5 -19.4 52.3 -60.7 -66.9
Financing ofoverall balance -21.3 8.5 19.4 52.3 60.7 66.9
Reserve assets ³ -21.3 -60.5 -28.6 -17.7 32.5 6.9
Commercial arrears 0.0 52.0 48.0 70.0 28.2 60.0
Memorandum items:
Current account (percentage ofGDP) -3.6 -2.3 -1.7 -8.3 -3.9 -7.3
Merchandise imports, c.i.f. 993.8 910.4 980.9 1234.9 1042.4 1131.2
1 Bothpresentation andseries havebeenrevised relative totheprevious report.
² Provisional
³ (-)signindicates increase inreservesWT/ACC/SYC/3
Page57
RE-EXPORTS: 1990 -1995
TABLE 8
(Rmillion)
1990 1991 1992 1993 1994 1995
Total 228.4 170.7 152.5 186.2 141.4 141.9
Toships andaircrafts
Petrol
Food and
beverages
Others
Other re-exports150.8
148.9
1.4
0.5
77.6157.6
156.4
1.0
0.2
13.1144.4
142.0
1.9
0.5
8.1149.0
146.1
2.4
0.5
37.2124.2
119.9
3.2
1.1
17.2123.9
118.6
3.7
1.6
18.0
1 Central Bank estimates
DOMESTIC EXPORTS: 1990 -1995
TABLE 9
(Rmillion)
1990 1991 1992 1993 1994 1995
Total 73.1 87.6 93.2 78.8 120.8 125.4
Copra
Cinnamon bark
Frozen andfresh fish
Canned tuna
Shark Fins(Dried)
Frozen Prawns
Other exports1.6
0.4
11.7
55.3
2.6
0.0
1.60.9
1.0
17.7
64.1
2.1
0.1
1.70.7
2.1
17.3
66.5
2.3
0.3
4.00.9
2.3
9.2
58.3
3.1
2.8
2.20.2
2.3
9.2
100.0
1.9
1.9
5.40.6
3.0
12.0
89.9
2.0
12.0
5.9
1 Central Bank estimatesWT/ACC/SYC/3
Page58
IMPORTS (c.i.f) -BYSITC1 SECTIONS: 1990 -1995
TABLE 10
(Rmillion)
SITC
SectionDescription 1990 1991 1992 1993 1994 1995
Total 993.8 910.4 980.9 1234.9 1042.4 1131.2
0 Food andliveanimals 155.7 154.2 182.0 194.1 190.7 165.9
1 Beverages &tobacco 26.2 20.0 25.0 42.8 19.3 21.8
2 Crude materials 19.3 14.2 18.6 17.0 18.2 20.0
3 Mineral fuelsetc. 191.6 199.1 168.4 175.6 162.3 167.2
4 Animal &vegetable oils 5.9 9.8 8.8 9.6 11.5 16.9
5 Chemicals 54.1 55.0 73.5 81.0 71.4 75.3
6 Manufactured goods 165.5 154.3 176.0 226.8 205.1 199.3
7 Machinery &transport
equipment262.9 210.3 203.7 309.7 241.4 321.9
8 Misc. manufactured
articles111.3 93.5 124.6 177.7 121.5 141.2
9 Other commodities 1.2 0.1 0.3 0.6 1.0 1.7
1 Standard International Trade Classification
² Ministry ofFinance &Communications estimates