WT/TPR/S/197/Rev.1 Trade Policy Review 
Page 26 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
1. Since its last trade policy review (TPR) in 2001, Madagascar has made further progress with 
the liberalization of its trade regime.  In 2005, Mada gascar eliminated other import taxes collected at 
the customs cordon.  With the exception of petr oleum products, all Malagasy tariff rates are 
ad valorem ;  in 2008, the simple average rate is 13 per cent, 3 points lower than in 2000.  Madagascar 
has bound all its agricultural lines and several no n-agricultural lines, which together account for 
29 per cent of all tariff lines.  VAT and, where appropriate, excise duties are also levied, but the 
imposition of the latter does not comply with the pr inciple of national treatment as imported alcoholic 
beverages and tobacco products are more h eavily taxed than their local substitutes. 
2. Madagascar has made progress with the simplification and computerization of its customs 
procedures.  Pre-shipment inspection ceased to be compulsory in April 2007, but use of the GasyNet 
customs data processing system is mandatory, the corresponding charges amounting to 0.5 per cent of 
the c.i.f. value of the goods.  Madagascar has moved ahead with the implementation of the 
WTO Valuation Agreement;  it is requesting technical as sistance to build capacity in this area.  Trade 
facilitation measures have been adopted.  Howe ver, many duty concessions are granted on a 
discretionary basis, which is adversely affecting cu stoms receipts and contributing to the problem of 
transparency and governance.  The exportation of ro ugh and semi-finished wood has been prohibited 
since July 2007. 
3. There has been considerable progress with standa rdization, which was just beginning in 2001.  
To satisfy the quality requirements of the interna tional markets, Madagascar  has proceeded with the 
standardization of agricultural products with a high export potential.  Madagascar is one of the countries with businesses that comply with the Eu ropean Union's sanitary standards for fishery 
product imports.  Madagascar also applies sanitary a nd phytosanitary controls at the customs cordon;  
however, the measures taken have not been notifie d to the WTO.  Madagascar has no contingency 
trade measure legislation. 
4. Competition on the Malagasy market continues to be hampered by the small number of 
suppliers and the strong State presence in the natio nal economy, with the State holding shares in 
numerous enterprises.  Since Madagascar's first TPR, the State has withdrawn from several key 
sectors (fixed telephony, cotton lint, northern rail networ k), but still has stakes in others.  One priority 
for 2007 concerns the reorganization of the histor ical operator JIRAMA, to improve the country's 
electricity supply.  The restructuring of port, airpor t and air and rail transport services in the south of 
the country is also on the agenda.  Moreover, Mada gascar has liberalized the prices of most goods and 
services, with only a few exceptions:  for example,  administrative price controls are applied to 
medicinal products, while the price of rice, the staple  food, is monitored;  petroleum product prices 
were liberalized in 2004.  The progressive impl ementation of the new government procurement 
regime is expected to lead to improvements. 
5. The Malagasy industrial and ar tistic property regime has been harmonized with certain 
provisions of the WTO's TRIPS Agreement.  Th e efforts begun since Madagascar's first TPR to 
ensure respect for intellectual prope rty rights, and in particular to combat piracy and counterfeiting, 
are continuing. Madagascar WT/TPR/S/197/Rev.1 
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(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration 
6. To be a trader in Madagascar it is necessary to enrol in the trade and companies register1, to 
obtain a tax registration number from the Tax Administration Service2, and to pay the occupational 
tax (abolished, in principle, by the 2008 Finance Law).3  These requirements are the same for natural 
and legal persons, whether of Ma lagasy or foreign nationality. 
(ii) Customs procedures4 
7. Madagascar applies its Customs Code (1960)5 as amended by successive finance laws.  In 
2007, the customs procedures in force were:  rele ase for home consumption;  exportation;  the 
economic procedures, i.e. temporary admission for inward processing or for free zone enterprises;  
national road transit with a view to release fo r home consumption;  and customs warehousing.  
According to the authorities, in 2006, about 20 per cent of import operations came under the 
temporary admission for free zone enterprises regime.  
8. The rules established by the WTO's Customs Valuation Agreement are incorporated in 
Madagascar's Customs Code (2007) but are unders tood to have been in use since 17 November 2000.6  
Madagascar requested and obtained a waiver fro m WTO Members to maintain minimum values for 
the customs valuation of used goods until 17 November 2003.7  Moreover, Madagascar maintains a 
reservation concerning the order of the methods to be used if the transaction value is rejected 
(Chapter II (3)(i)).8  However, in view of the difficulties experienced by the Customs Administration 
in effectively implementing the Agreement, Madag ascar is requesting technical assistance in order to 
build national capacity in this area (Annex II.1). 
9. In March 2007, Madagascar ceased relying on the pre-shipment inspection services provided 
since 25 February 2002 by the Société générale de surveillance  (SGS).9  On 2 April 2007, the 
government rolled out the GasyNet (modeled on the Tr adenet developed during the 1990s by the Port 
of Singapore)10, within the framework of an agreement of  4 May 2006 between the State and SGS.  
GasyNet is the exclusive provider of services for enab ling registered operators to complete all import 
                                                      
1 Laws No.  99-018 of 2 August 1999 and No. 99-025 of 19 August 1999. 
2 Title 5, Book 3 of General Tax Code (2006 edition). 
3 Title 1, Book 2 of General Tax Code (2006 edition). 
4 Madagascar is a member of the World Customs Organization (WCO) and has ratified the Revised 
Kyoto Convention (Law No. 2006-024 of 17 July 2006).  In principle, all the customs texts are available online on the web site:  http://www.mefb.gov.mg/ [26 August 2007]. 
5 Ordinance No. 60-084 of 18 August 1960. 
6 Section IV, Chapter V of the Customs Code (2007 edition). 
7 The waiver was granted by a Decision of 18 July 2001 (WTO document WT/L/408 of 26 July 2001). 
8 If the value declared by the importer is rejected, the WTO Agreement provides  for the use of one of 
the following methods:  transaction value of identical goods (Article 2);  transaction value of similar goods 
(Article 3);  deductive value (Article 5);  constructed value (Article 6);  fallback method (Article 7).  These 
valuation methods must be used in the order listed.  However, Article 4 of the Agreement states that the importer may request the order of application of Articles 5 and 6 to be reversed.  In its notification to the 
WTO (WTO document WT/Let/112 of 30 September 1996) Madagascar pointed out that it reserved the right to 
decide that the provisions of Article 4 of the Agreement should apply only when the customs authorities agreed to the importer's request to reverse the order of application of Articles 5 and 6.  Madagascar also noted that 
paragraph 2 of Article 5 of the Agreement would be applied whether or not the importer so requested. 
9 The reports issued by SGS for 2006 are being audited by independent auditors. 
10 Total investment for GasyNet is estimated at €1 5 million, with roll-out being spread over one year. WT/TPR/S/197/Rev.1 Trade Policy Review 
Page 28 
 
 
and export formalities at a single window.  To this  end, a new requirement for all cargoes being 
shipped to Madagascar is the Bordereau de suivi des cargaisons  – BSC (Cargo Tracker Note)11, 
which can be opened online12, and must be duly validated by GasyNet.  GasyNet's charges (PGN) are 
fixed by regulation at 0.5 per cent of the c.i.f. valu e of the goods imported or exported, or at flat-rate 
levels for goods with an f.o.b. value of less than the equivalent of €25,000 in MGA.13  The charges for 
GasyNet's services include a flat-rate levy in fa vour of the Customs Administration for additional 
work and capacity building, which GasyNet pays to the Treasury.  SGS holds 70 per cent of GasyNet's capital and the State 30 per cent. 
10. Madagascar classifies imports into two categories:  commercial and non-commercial.
14  The 
customs import formalities for commercial goods mu st be completed by an approved forwarding 
agent.15  A single administrative document (DAU) must be filed for each commercial transaction, in 
one of the customs offices computerized on the b asis of ASYCUDA++ (this applies to the 11 most 
important offices).  Almost the entire volume a nd value of customs import transactions is 
computerized, as is 91 per cent of the volume and 89 per cent of the value of exports.  The DAU must 
be accompanied by the usual documents: original invoice;  transport documents;  insurance;  
phytosanitary certificate for products of plant orig in;  sanitary certificate for products of animal 
origin;  certificate of origin;  and the documents in  support of any request for exemption from customs 
duties or taxes.  After registering the DAU, the Cust oms Administration will, if it thinks fit, inspect 
some or all of the goods declared. 
11. There are trade facilitation measures in place.  The green channel allo ws for the automatic 
assessment of duties and taxes following the registra tion of the DAU, and the immediate release of the 
goods after the statutory check on the payment of duties and taxes.  This channel is available to those 
importers who are deemed to be reliable, that is to  say, with no record of major infringements, and for 
goods subject to special measures.  The minimum clearance time in the offices with ASYCUDA++ 
computerization is 12 hours.  The GasyNet data en able a more thorough risk analysis to be carried 
out, with a view to identifying the channel appr opriate for the importer, which makes customs 
controls more efficient. 
12. In the course of the clearance procedure, the decisions of the Customs Administration 
concerning the tariff classification, origin and valu e of goods declared may form the subject of an 
appeal by the declarant to the Commission de conciliation et d'expertise douanière  – CCED 
(Conciliation and Customs Appraisal Commission).16  In the second instance, the declarant may 
appeal the decision of the CCED to the competent court.  
                                                      
11 Decision No. 01/MFB/SG/DGD of 23 March 2007. 
12 Consulted at:  www.bscmg.sgs.com. 
13 Order No. 8426/2007 of 4 June 2007.  The sums are:  10 euros, for an f.o.b. value of less than 
1,000 euros (i.e. at least 1 per cent);  25 euros, for an f.o.b. value of between 1,000 and 2,500 euros (exclusive);  
75 euros, for an f.o.b. value of between 2,500 and 10,000 euros (exclusive);  145 euros, for an f.o.b. value of 
between 10,000 and 25,000 euros (exclusive).  The authorities point out that exports by Industrial Free Zone (ZFI) enterprises are subject to a rate of 0.5 per cent of the value added in the ZFI and not of the customs value. 
14 Decision of Director-General of Customs No. 051 of 24 January 2003.  The importation of more than 
two vehicles (at a time) per person is treated as a commercial operation. 
15 Order No. 7298/2002 of 20 November 2002.  Approval is granted by the Ministry responsible for 
customs, in consultation with the Director-General of Customs.  A permanent bond of MGA 10 million is 
required to practise the profession. 
16 Article 111 of Customs Code (2007 edition). Madagascar WT/TPR/S/197/Rev.1 
 Page 29 
 
 
(iii) Rules of origin 
13. Madagascar does not have any national rules of origin for non-preferential purposes.  
Madagascar is a member of the COMESA (Chapter  II (3)(b)) and SADC (Chapter II (3)(c)) free trade 
areas and, in principle, uses their rules of origin  for defining products originating in the respective 
area.  COMESA and SADC have e ach developed model certificates attesting to the origin of the 
goods concerned. 
14. COMESA origin may be conferred on products sh ipped directly from one Member State to 
another if those products are:  (a) wholly obtained in the COMESA Member State17;  or (b) wholly or 
partially manufactured in the Member State from materials imported from outside the Member States, 
or of indeterminate origin, in accordance with a manufacturing process that involves a substantial 
transformation, defined as:  (i) a c.i.f. of the im ported materials not exceeding 60 per cent of the total 
cost of the materials used in the production of th e goods;  or (ii) a value added resulting from the 
production process that accounts for at least 35 pe r cent of the ex-factory cost of the goods;  or 
(iii) inclusion in a list drawn up by the COMESA Council of goods of particular importance for the 
economic development of the Member States and inco rporating at least 25 per cent of value added.18 
15. According to Annex I to the SDAC Trade Protoc ol on rules of origin, the basic requirements 
for goods to be regarded as "originating" are as fo llows:  (a) the product must have been wholly 
obtained in one of the Parties19;  or (b) the non-originating materials incorporated in the product must 
have undergone "sufficient working or processing"  in accordance with the conditions set out in 
Appendix I of Annex I;  or (c) the value of all non-originating materials must not exceed 10 per cent 
of the ex-works price of the good (tolerance rule).   There is no regime-wide rule of origin but 
Appendix I of Annex I lists the specific criteria (mostly  with respect to HS tariff headings (at various 
levels)) that non-originating materials must meet for a final good to acquire originating status.20 
(iv) Customs levies 
16. Goods imported into Madagascar are subj ect to various entry duties and taxes21, fixed 
annually by the Finance Law.  In 2005, Madagascar si mplified the structure of its duties and taxes, in 
particular by abolishing the statistical tax on impor ts (TSI) and the import tax.  Thus, apart from the 
tariff, Madagascar has not applied any other entry duti es or taxes since that date.  The taxable base for 
the tariff is the c.i.f. value.  In 2006, customs re venue collected on imports amounted to approximately 
MGA 628.9 billion (Table III.1), about twice the to tal for 2000.  In 2006, customs revenue from 
imports was mainly composed of:  tariff (22 per cent);  VAT at 18 per cent (42 per cent);  tax on 
petroleum products (36 per cent);  and excise duty (0 .5 per cent).  Numerous tariff concessions are 
granted on a discretionary basis, which explains the relatively small contribution of the tariff to total 
customs revenue in 2006. 
                                                      
17 For example, minerals extracted from the soil or  seabed and products of agriculture, fishing or 
hunting, or manufactured wholly from these products, without imported inputs. 
18 Value added is defined as the difference between the ex-factory cost of the finished product and the 
c.i.f. value of the materials imported from outside the member States which enter into its production. 
19 Article 4 specifies the type of goods that can be regarded as being wholly produced in the Member 
States.  It gives a list of the products in this category and establishes the cr iteria that a vessel must satisfy for it 
to be regarded as forming part of the territory of a Member State. 
20 For further details, see the Secretariat report in WTO document WT/REG176/4 of 12 March 2007. 
21 The entry duties and taxes in force in Madagasc ar in 2007 have not been notified to the IDB 
(WTO document G/MA/IDB/2/Rev.25 of 26 March 2007). WT/TPR/S/197/Rev.1 Trade Policy Review 
Page 30 
 
 
Table III.1 
Itemized customs revenue from imports, 2000-2006 
(in billions of MGA) 
 2000 2001 2002 2003 2004 2005 2006 
Customs tariff 25.4 23.3 16.7 26.3 29.2 112.2 138.6 
Import tax 50.1 46.3 32.0 53.1 77.5 n.a. n.a. 
VAT 140.0 144.5 91.5 156.2 186.1 213.5 262.6 
Taxes on petroleum products 79.5 54.4 51.0 73.3 136.5 154.5 223.6 
Excise duty 12.0 10.6 7.9 14.4 10.6 10.5 3.3 
Statistical tax on imports (TSI) 8.1 10.2 9.3 17.5 3.7 n.a. n.a. 
Other 2.8 1.2 0.4 1.9 1.6 0.6 0.7 
Total 317.9 290.5 208.8 342.6 445.2 491.3 628.9 
n.a. Not applicable. 
Note: Conversion of data for 2000-2004 into MGA (5 MGF=1 MGA). 
Source : Malagasy authorities. 
(a) MFN tariff applied 
17. The 2008 Malagasy tariff comprises 6,362 eight-digit lines of the 2007 version of the 
Harmonized Commodity Description and Coding System (HS).  Most of the rates are ad valorem  and 
either zero, 5 per cent, 10 per cent, or 20 per cent.22  For 2008, the simple average of all the rates 
applied is 13 per cent (Chart III.1 and Table III.2), which corresponds to an average of 14.4 per cent 
for agricultural products (WTO definition) and 12.7 per cent for non-agricultural products (excluding 
petroleum products).  If the ISIC (Rev. 2) definitio n is used, agriculture re mains the most heavily 
protected sector with an average tariff of 13.9 per cent (Table AIII.1), followed by the manufacturing 
sector (13.0 per cent) and the mining sector (7.1 per cent).  Agricultural products account for a large 
share of the expenditure of consumers, especially those on low incomes, and the heavy taxation adds 
to their cost. 
                                                      
22 On 19 lines (petroleum products) the rates are specific and the authorities have not provided an 
ad valorem  equivalent, while six lines present in the HS  2007 have no rate in the Malagasy tariff. Madagascar WT/TPR/S/197/Rev.1 
 Page 31 
 
 
0510152025Chart III.1
Applied MFN tariff rates, by HS section, 2008
Average
MFN rate
(13.0)Per cent
Source :WTO Secretariat estimates, based on data provided b y the Mala gasy authorities.Live animals & prod .
Vegetable product s
Fats and oil s
Prepared food, etc.
Mineral products
Chemicals and prod.
Plastic and rubbe r
Hides and skin s
Wood and article s
Pulp, paper, etc.
Textiles and articles
Footwear, headgea r
Articles of stone
Precious stones, etc.
Base metals and prod.
Machiner y
Precision instruments
Arms and ammunitio nTransport equipmen t
Miscellaneous manuf.
Works of art, etc.
 
 
18. The coefficient of variation of 0.5 indicates mode rate dispersion of the tariff rates, with about 
42.5 per cent of tariff lines subject to the modal rate of 20 per cent (Chart III.2).  Overall, the tariff 
shows mixed escalation, negative from raw materials with an average level of protection of 12.3 per 
cent to semi-finished products (average level of pr otection 10.3 per cent), and then positive with an 
average tariff of 14.7 per cent on finished products (Table III.3). 
Table III.2 
MFN applied tariff structure, 2007-2008 
  2007 2008 Uruguay Rounda
1 Tariff lines bound (as a percentage of all tariff lines) 29.1 29.1 .. 
2 Tariff lines eligible for duty-free en try (as a percentage of all tarif f 
lines) 1.8 2.0 0.1 
3 Duties other than ad valorem (as a percentage of all tariff lines) 0.3 0.3 0.0 
4 Tariff quotas (as a percentage of all tariff lines) 0 0 0.0 
5 Duties other than ad valorem  without any AVE (as a percentage of all 
tariff lines) 0.3 0.3 0.0 
6 Simple average rate 13.0 13.0 27.6 
  Agricultural products (WTO definition)b 14.5 14.4 30.0 
  Non-agricultural products (WTO definition)c 12.7 12.7 25.5 
  Agriculture, hunting and forestry (ISIC 1) 13.9 13.9 30.0 
  Mining and quarrying (ISIC 2) 7.1 7.1 0.0 
  Manufacturing (ISIC 3) 13.0 13.0 27.1 
Table III.2 (cont'd) WT/TPR/S/197/Rev.1 Trade Policy Review 
Page 32 
 
 
  2007 2008 Uruguay Rounda
7 National tariff peaks (as a percentage of all tariff lines)d 0.0 0.0 0.0 
8 International tariff peaks (as a percentage of all tariff lines)e 42.5 42.5 92.1 
9 Overall standard deviation of rates applied 6.4 6.4 5.6 
10 Nuisance duties (as a percentage of all tariff lines)f 0.0 0.0 0.0 
.. Not available. 
a The statistics are based on the bound lines only (1,846 tariff lines). 
b WTO Agreement on Agriculture. 
c Excluding petroleum. 
d National tariff peaks are duties that are higher than three time s the simple average of all the rates applied (indicator 6). 
e International tariff peaks are duties that exceed 15 per cent. 
f Nuisance rates are those of over 0 per cent but not exceeding 2 per cent.  
Note: Indicator 1 is based on all the tariff lines (in-quota and out-of-quota lines);  the other indicators exclude in-quota li nes.  
Indicators 6 to 10 are calculated on the basis of lines for which an ad valorem  rate could not be taken into account. 
 
Source : WTO Secretariat calculations  based on data provided by the Malagasy authorities. 
(2.0)(22.1)(33.2)(42.5)
05001,0001,5002,0002,5003,000
Duty free 5 10 200102030405060708090100
The figures within brackets correspond to the percentage of total lines.  As the duties are not all ad valorem , their 
total does not correspond to 100 per cent.
WTO Secertariat calculations based on data prpvided by the Malagasy authorities.Chart III.2
Breakdown of MFN duties applied, 2008
Number of tariff lines
Note:
Sourc e:Percentage
Number of lines
Cumulative percentage (right-hand scale)
 
19. A more detailed breakdown reveals that the overall tariff structure closely reflects that 
prevailing, in particular, in the food (including  beverages and tobacco), wood and articles of wood, 
chemical products, and non-metallic mi neral products industries (Chart III.3).  In other industries, 
including textiles and clothing, escalation is positive .  Such a tariff structure either discourages 
investment in certain (processing) industries because  the heavy taxation of imported inputs adds to 
production costs, or reduces the competitiveness of  certain products processed in Madagascar under a 
regime that provides a fairly high level of effect ive protection (Chapter IV(4)).  Thus, the tariff 
structure is not of a kind likely to encourage econo mic diversification.  It perpetuates the need for Madagascar WT/TPR/S/197/Rev.1 
 Page 33 
 
 
duty and tax concessions to investors, includi ng under the Industrial Free Zone (IFZ) regime 
(Chapter II(4)). 
0510152025Chart III.3
Escalation of MFN duties applied, 2008
Per cent
Not applicableUnprocessed
productsSemi-finishedproductsFinished products
Note:
Source: The groups of products are defined by the two-digit ISIC.
 WTO Secretariat calculations based on data provided by the Malagasy authorities.
All products
Agriculture
Mining and
quarrying
Food products,
beverages
and tobacco
Textiles an d
clothin g
Wood an d
articles of wood
Paper and articles o f
paper;  printing and
publishing
Chemicals
Non-metalli c
mineral product s
Basic meta l
industry
Articles of metal,
machinery an d
equipmen t
Other manufacturin gNot applicable
 
Table III.3 
Summary of MFN (DD) tariff, 2008  
Rate applied 2008 
Description Number of 
linesa Number of 
lines used Simple 
average duty
(per cent) Range of duty 
(per cent) Standard 
deviation 
(per cent) CV Imports 2006b
(US$ million)
Total 6,362 6,343 13.0 0-20 6.4 0.5 1,760.3 
By WTO categoryc               
Agricultural products 897 897 14.4 0-20 6.9 0.5 235.0 
Live animals and animal products 122 122 18.9 5-20 3.9 0.2 2.6 
Dairy products 30 30 17.5 5-20 5.7 0.3 8.6 
Coffee, tea, cocoa, sugar, etc. 177 177 16.3 5-20 5.5 0.3 78.2 
Cut flowers and plants 62 62 7.8 5-20 4.8 0.6 1.0 
Fruit and vegetables 181 181 19.4 0-20 2.8 0.1 3.9 
Cereals 17 17 4.7 0-10 4.5 1.0 48.1 
Oilseeds, fats and oils 94 94 8.7 0-20 5.7 0.7 49.7 
Beverages and alcohol 56 56 20.0 20-20 0.0 0.0 9.1 
Tobacco 11 11 17.3 10-20 4.7 0.3 2.2 
Other agricultural products 147 147 7.0 0-20 4.3 0.6 31.5 
Non-agricultural products (excluding 
petroleum) 5,447 5,440 12.7 0-20 6.3 0.5 1,205.4 
Table III.3 (cont'd)WT/TPR/S/197/Rev.1 Trade Policy Review 
Page 34 
 
 
Rate applied 2008 
Description Number of 
linesa Number of 
lines used Simple 
average duty
(per cent) Range of duty 
(per cent) Standard 
deviation 
(per cent) CV Imports 2006b
(US$ million)
Fish and fish products  131 131 19.1 5-20 3.4 0.2 33.2 
Minerals, precious stones and metals  383 376 13.2 0-20 7.2 0.5 70.1 
Metals 663 663 10.7 5-20 4.7 0.4 96.6 
Chemicals and photographic products 1,025 1,025 7.6 0-20 5.5 0.7 160.5 
Leather, rubber, footwear and travel 
articles 272 272 14.5 5-20 5.6 0.4 32.4 
Wood, wood pulp, paper and furniture 334 334 14.7 0-20 6.3 0.4 89.1 
Textiles and clothing 1,102 1,102 17.0 0-20 5.8 0.3 334.4 
Transport equipment 195 195 10.5 0-20 4.9 0.5 114.3 
Non-electrical machinery 544 544 10.4 10-20 2.1 0.2 128.2 
Electrical machinery 253 253 12.4 5-20 4.4 0.4 90.6 
Non-agricultural products n.e.s. 545 545 15.3 0-20 5.2 0.3 56.0 
By ISICd sector         
Agriculture, hunting, forestry and 
fishing 374 374 13.9 0-20 7.3 0.5 20.5 
Mining and quarrying 112 109 7.1 5-20 4.8 0.7 8.0 
Manufacturing 5,875 5,859 13.0 0-20 6.3 0.5 1,723.4 
By stage of processing        
Raw materials 756 749 12.3 0-20 7.4 0.6 118.9 
Semi-finished products 2,064 2,064 10.3 0-20 6.2 0.6 503.3 
Finished products 3,542 3,530 14.7 0-20 5.8 0.4 1,129.8 
a This analysis is based on a reduced frequency (number of lin es), since it leaves out the lin es for which there is no AVE.  
b Total imports exceed the sum of the s ub-lines because some products, amounting to US$8.3 million, are not classified in the 
Harmonized System.  
c There are 18 tariff lines for petroleum produc ts that have not been taken into account. 
d International Standard Industrial Classi fication of All Economic Activities (Rev.2).   Excluding electricity, gas and water (o ne 
tariff line). 
Note: CV = coefficient of variation. Source : WTO Secretariat estimates based on data provided by the Malagasy authorities;  and th e Comtrade database of the 
United Nations Statistical Division on imports in 2006. 
(b) Bindings 
20. During the Uruguay Round, Madagascar bound 29.1 pe r cent of its tariff lines in its Schedule 
of Concessions LI annexed to the GATT 1994.  These bi ndings were made at the ceiling rate of 30 per 
cent and "other duties and taxes" were bound at the ceiling rate of 250 per cent for agricultural 
products (as defined in Annex I to the WTO Agre ement on Agriculture) and for chemical products 
(HS Chapters 28 and 29).  Some applied rates ex ceed certain rates bound when Madagascar was a 
colony. 
(c) Internal taxes 
21. Madagascar applies VAT.  The standard rate was reduced from 20 per cent to 18 per cent in 
2005, then restored to 20 per cent for 2008.  VAT is levied on goods for home consumption whatever their origin.
23  The taxable base for imports is the cust oms value plus duty and other taxes, where 
applicable (apart from VAT itself), whereas that for local goods is the sale price plus other taxes, 
                                                      
23 Title 1, Part 6, General Tax Code (2006 edition). Madagascar WT/TPR/S/197/Rev.1 
 Page 35 
 
 
where applicable.24  Some staple goods, whether imported or produced locally, are in principle 
exempt from VAT.25  In principle, exports are zero-rated (section (3)(ii)), except for deliveries to 
enterprises established in free zon es, in which case the VAT is refundable within 60 days on proof of 
outright exportation from Madagascar. 
22. In 2007, Madagascar levied excise duty on alco holic beverages, perfumes and cosmetics, 
cigars, cigarettes and tobacco26;  there was also a charge on alcoholic beverages, perfumes and 
cosmetics, cigars, cigarettes and tobacco.27  A charge (but not excise duty) was levied on sugar, wheat 
and meslin flour, and chemical matches.  In seve ral cases, the rates in fo rce in 2007 differed according 
to the origin of the product (Table III.4), for the pu rpose of protecting the local industry;  changes are 
understood to have been introduced by the 2008 Finance Law.  With regard to the 80 per cent excise 
duty on cigarettes, a 50 per cent reduction is grante d if the reference price of the product does not 
exceed the threshold established by regulation, wh ile cigarettes whose Malagasy tobacco content 
equals or exceeds the minimum laid down by regu lation benefit from a fu rther reduction of 15 per 
cent.  The taxable base for locally manufactured product s is the sale price, whereas that for imports is 
the c.i.f. customs value plus duty. 
Table III.4 
Differences between excise du ties/charges applied to local and imported products, 2007  
Product Locally produced 
(percentage, unless otherwise indicated) Imported 
(percentage) 
Wheat or meslin flour MGA 13/kg. 10 
Sugar MGA 20/kg. 10 
Malt beer 53 69 
Wine: 
Champagne 
liqueur 
other  
170 
154 
40  
225 
105 
69 
Vermouth 154 205 
Brandy 170 205 
Whiskies 282 326 
Rum, gin, vodka, other 170 205 
Cigars 242 250 
Cigarettes, tobacco 135 230 
Source : Malagasy authorities. 
 
(d) Preferences 
23. In principle, Madagascar gr ants preferences to products originating in other COMESA 
member countries, on a basis of reciprocity (Chapter II(3)(b))28, and to products originating in other 
                                                      
24 Any enterprise with a turnover equal to or greater than a minimum threshold (for example, 
MGA 200 million according to the 2008 Finance Law) is subject to VAT, and those with a turnover below this 
threshold can opt for VAT or for the application of another system of taxation. 
25 The goods in question include the following:  medicinal products;  pharmaceutical articles;  
equipment for medical use;  contact lenses, spectacle le nses, and corrective lenses;  day-old chicks, seed;  
propane gas;  agricultural inputs (fertilizer, insecticid es, fungicides, herbicides);  newsprint;  newspapers, 
magazines, books, brochures and printed matter. 
26 Part 3, Title 1, General Tax Code (2006 edition). 
27 Part 4, General Tax Code (2006 edition).  Mobile phone communications and the reception of pay 
television programmes delivered locally  are also subject to a charge. 
28 The tariff reduction is 100 per cent for products originating in Burundi, Comoros, Djibouti, Egypt, 
Libya, Kenya, Malawi, Mauritius, Rwanda, Sudan, Swaz iland (up to December 2008), Zambia and Zimbabwe; WT/TPR/S/197/Rev.1 Trade Policy Review 
Page 36 
 
 
SADC member countries, in accord ance with an approved tariff reduction scheme (Chapter II(3)(c)).  
Moreover, since 1998, Madagascar has applied a dut y reduction of 100 per cent to goods originating 
in the Indian Ocean Commission (IOC) countries. 
(e) Duty and tax exemptions and concessions 
24. Madagascar admits free of customs duty and tax es goods destined for the State (for example, 
gifts intended for the Head of State), goods impor ted by diplomatic missions and international or 
charitable organizations, materials covered by UNESCO's Florence Agreement, and goods imported 
in connection with removals, small consignments, etc.   Government procurement financed by external 
funds is exempt from VAT.  Exemption from cust oms duties and taxes is also granted to goods 
imported in connection with large-scale mining inv estments (Chapter IV(3)(ii));  to enterprises 
engaged in oil prospecting and exploration activ ities (Chapter IV(3)(i));  and to the company 
QIT Madagascar Minerals (QMM)29, under its founding convention.  Special relief may also have 
been granted to enterprises within the context of pr ivatization or investment before the State stopped 
engaging in this practice in 2006.30 
25. A 35 per cent reduction in the duties and taxes applicable is granted to goods imported by 
Radio Nederland, under an agreem ent concluded with the State.  Exemptions from customs duties and 
taxes may also be granted, by decision of the G overnment Council, in exceptional circumstances, in 
the public interest and for reasons of state;  in 2006, this category, known as "category 7", gave rise to 
numerous exemptions from customs duties. 
(v) Prohibitions, quantitative restrictions and licences 
26. Madagascar maintains a regime of prohibitio ns, quantitative restrictions and licences which 
has been in place since 1992.31  Madagascar notified the WTO of this regime in 200232 and of certain 
amendments to it in 2005.33  In principle, any products may be freely imported or exported, except for 
those that are specially regulated (section (vii)).34  The importation of radioactive waste from nuclear 
power stations is prohibited.  The importation of su ch products as arms, explosives and narcotic drugs 
is subject to prior authorization.  The same applies to imports of diamonds, gemstones, gold and 
platinum jewellery, and vanillin.  Madagascar also maintains a special regime for imports of leaf 
tobacco (Chapter IV(2)(iii)).  An import licen ce is required for lubr icants.  In addition,  Madagascar 
applies prohibitions and licences under multilateral envi ronmental agreements to which it is party.35  
The importation of counterfeit bra nded products, pirated goods and goods  bearing false indications of 
origin is also prohibited (section (4)(v)).36 
                                                                                                                                                                     
80 per cent for products originating in Eritrea and Uganda;  10 per cent for products originating in Ethiopia;  and 
zero for products originating in the Democratic Republic of the Congo and Seychelles. 
29 The State holds 20 per cent of the shares and Rio Tinto 80 per cent. 
30 For example, Article 163-quater of the 2005 Finance Law provided that investments made in 
Madagascar, amounting to one million or more US dollars, should benefit from a reduction in, or indeed total 
exemption from, duties and taxes and charges as from 2005.  An investment committee was set up to study the 
dossiers submitted with a view to obtaining this benefit. 
31 Decree No. 92-424 of 3 April 1992. 
32 WTO document G/LIC/N/3/MDG/1 of 9 September 2002. 
33 WTO document G/LIC/N/3/MDG/2 of 21 June 2005. 
34 Article 28 of Customs Code (2007 edition). 
35 Environmental Treaties and Resource Indicators (ENTRI), Country profile:  Madagascar, Consulted 
at:  http://sedac.ciesin.org/entri/countryPr ofile.jsp?ISO=MDG [9 September 2007]. 
36 Articles 29 and 30 of Customs Code (2007 edition). Madagascar WT/TPR/S/197/Rev.1 
 Page 37 
 
 
27. Madagascar imports almost all the medicinal a nd health products consumed on its territory.  
Under the Public Health Code, the Agence du médicament de Madagascar  (Madagascar Medicinal 
Product Agency) established in 199837, is responsible for registering, inspecting and controlling the 
quality of medicinal products a nd for drug testing and control.38  Before they can be marketed, 
pharmaceutical products must obtain an autorisation de mise sur le marché  – AMM (marketing 
authorization) issued by the Commission nationale d'enregistrement  (National Registration 
Commission)39;  there were 2,834 products registered at the end of 2006.  The Commission 
automatically registers products that have alr eady received a marketing authorization from the 
European Agency for the Evaluation of Medici nal Products, or the health authorities of the 
United Kingdom, the United States or France40;  the procedures for products with other origins are 
more onerous.  The AMM is valid for five years re newable.  Since 2003, the Agency has had a drug 
quality control laboratory ( Laboratoire de contrôle de qualité des médicaments  – LCQM) at its 
disposal. 
28. Medicinal and health products are distributed e ither through the public health care system or 
through private pharmacies.41  The public health care system and private non-profit institutions are 
supplied with essential generic medicinal products (i n accordance with a National List of Essential 
Medicinal Products) exclusively by the central  purchasing agency SALAMA, which purchases its 
products by international competitive bidding;  an in itial exclusivity agreement with the State ended 
in 2006, and was followed by a sec ond agreement that runs until 2016.42  A markup of 35 per cent can 
be applied relative to the SALAMA purchase price (see section (4)(ii)). 
(vi) Standardization, accreditation and certification 
29. Madagascar has not made any notification to the WTO concerning its standardization regime 
or its accreditation and certification procedures.43  Introduced in 1997, this regime is administered by 
the Bureau de normes de Madagascar  – BNM (Madagascar Bureau of Standards), which was 
established in 199844 and became operational in 2002, under th e technical supervision of the Ministry 
of Industry.45  The BNM is responsible for standardization.   In accordance with the agenda established 
by its governing board, the BNM develops a prelimin ary draft standard.  It then convenes a technical 
committee composed of representatives of the sector  concerned for consultation on the chosen 
criteria.  The standards drawn up are either definitiv e or experimental (the latter are subject to public 
inquiry while the definitive standards are published in the Official Journal ).  Under the Malagasy 
regime, some standards may become mandatory after their adoption as such by the Ministry 
concerned.  The only mandatory standards that affe ct imports are those on condoms, reflector strips, 
and soaps and detergents.46  The BNM arranges for the conformity of imports with these standards to 
be established by a committee, which examines samples and carries out conformity tests with a view 
                                                      
37 Decree No. 98-086 of 27 January 1998, amended by Decree No. 2004-086 of 27 January 2004. 
38 Politique pharmaceutique à Madagascar .  Consulted at:  http://www.remed.org/bilan2002.rtf 
[26 December 2007]. 
39 The costs of these procedures are fixed by Interministerial Order No. 24364/2004 of 
10 January 2005. 
40 U.S. Pharmacopeia Drug Quality and Information (2003). 
41 Antananarivo Economic Mission (2007). 
42 Consulted at:  http://www.salama.mg. 
43 Law No. 97-024 of 14 August 1997. 
44 Decree No. 98-944 of 4 November 1998.  The Conseil national de normalisation  – CNN (National 
Standardization Council), created by Decree No. 99-024 of 20 January 1999, is no longer active. 
45  Information on the BNM is available on its web site:  http://www.interbat.mg/ acceuilbnm.htm 
[14 September 2007]. 
46 Fuels are also the subject of standards relating to their ingredients, established by the Office 
malgache des hydrocarbures  – OMH Malagasy Hydrocarbons Office). WT/TPR/S/197/Rev.1 Trade Policy Review 
Page 38 
 
 
to the authorization of importation.  In the absen ce of national capacity, only conformity tests carried 
out by a recognized outside laboratory independent of the manufacturer of the product are considered 
authentic.  Madagascar has established voluntary standa rds for construction materials, road safety and 
urban public transport. 
30. Madagascar has established mandatory standard s on the quality, packing and labelling of 
coffee47 and vanilla48 for export.  To meet the requirements of the international markets, the BNM has 
proceeded to establish voluntary standards for certa in products with a high export potential such as 
honey and litchis.  Moreover, some Malagasy economic operators have obtained third party 
certification for their litchi and French bean produ ction to satisfy the requirements of EU market 
importers. 
31. As a corresponding member of the Interna tional Organization for Standardization, 
Madagascar does not take an active part in the tec hnical and policy-making work of that organization. 
(vii) Sanitary and phytosani tary (SPS) measures 
32. Madagascar has not made any notification to the WTO concerning sanitary and phytosanitary 
measures;  according to the authorities, the only SPS measures taken with respect to imports are based 
on international standards drawn up by the Worl d Organization for Animal Health (OIE), the 
International Plant Protection Convention (IPPC) a nd the Codex Alimentarius .  Madagascar forms 
part of the Regional Programme for Plant Protection established for the countries of the Indian Ocean.
49  Moreover, fishery products for export to EU  markets are subject to specific regulations 
(section (3)(iv)). 
33. The Ministry of Agriculture, Livestock and Fisheries (MAEP) is responsible for taking 
sanitary measures relating to animals with a view to keeping Madagascar free of diseases that do not 
exist there.50  Madagascar has prohibited the importation of all live animals and meat and meat 
products from origins declared by the OIE to be sources of foot and mouth disease, in particular, South Africa from 2000
51 and some European origins since 2001, these latter measures having 
meantime been eased.52  Since 2004, Madagascar has also take n a number of measures to prevent the 
outbreak of bird flu, in view of the risk associated  with the migration of wild birds from Asia.  These 
measures concern the origins identified by the OIE.53 
34. A veterinary certificate is needed to impor t and export live animals and animal feed.54  An 
application must be made to the Animal Health a nd Phytosanitary Directorate.  At importation, the 
sanitary certificate of the country of origin is requi red for the purposes of issuing a permit.  As soon as 
the goods in question arrive, the importer must inform the Animal Quar antine Service, which 
                                                      
47 Decree No. 85-129 of 3 May 1985. 
48 Interministerial Order No. 4911/99-MCC of 12 May 1999. 
49 Consulted at:  http://www.prpv.org/. 
50 Law No. 91-008 of 25 July 1991. 
51 Order No. 11.565/00 of 20 October 2000. 
52 Interministerial Order No. 3168/2001 of 16 March 2001, amended by Interministerial Order 
No. 9459/2001 of 23 August 2001, eased by Interministerial Order No. 11780/2001 of 3 October 2001 and Interministerial Order No. 5768/2003 of 10 April 2003.  Decree No. 2004/040 of 20 January 2004 authorized 
the importation of 2,000 dairy cows from New Zealand in 2005 and 2006. 
53 Decree No. 2004-170 of 3 February 2004. 
54 Decree No. 2004-041 of 20 January 2004 establishes the regime applicable to the importation and 
exportation of animals, products and foods of animal origin, and grain, fodder and feed for animals.  The 
requirements are listed on the web site of the Ministry of Agriculture, Livestock and Fisheries 
(http://www.maep.gov.mg/fr/formulaire.php?maeplin k=form_animaux.htm) [14 September 2007]. Madagascar WT/TPR/S/197/Rev.1 
 Page 39 
 
 
proceeds to carry out sanitary controls.  These contro ls take the form of verification of the sanitary 
documents and verification or inspection of the re gulated articles.  Then, depending on the result of 
the controls, a release note for the goods may be issued .  A period of quarantine is normally required.  
The costs of the sanitary controls are borne by the Ma lagasy State, with the exception of those relating 
to detention in quarantine and sanitary monitoring at farm level. 
35. Phytosanitary measures are administer ed by the Plant Quarantine Service.55  To import live 
plants, seed and parts of live plants, as well as plan t products, soil and growing media, and packaging 
made of plant material it is first necessary to obt ain a phytosanitary permit, the application for which 
must be accompanied by the phytosanitary certificate of the country of origin of the goods.56  As soon 
as the goods in question arrive, the importer must  inform the Plant Quar antine Service, which 
proceeds to carry out phytosanitary controls.  These controls take the form of verification of the 
phytosanitary documents and verification or inspecti on of the regulated articles.  Then, depending on 
the result of the controls, a release note for the goods  may be issued.  A period of quarantine may be 
required.  The costs are borne by the Malagasy State,  with the exception of those relating to detention 
in quarantine and sanitary monitoring at farm level. 
36. Since June 2003, the authorities have identified numerous food products th at were being sold 
to consumers with false use-by dates.57  To meet these concerns, in 2003, Madagascar set up, within 
the Ministry of Health and Family Planning (MINSANPF), a Unité de contrôle de qualité des denrées 
alimentaires  – UCQDA (Food Quality Control Unit) who se responsibilities were taken over, in 2005, 
by the Agence de contrôle de la sécurité sanitai re et de la qualité d es denrées alimentaires  – 
ACSSQDA (Agency for Monitoring Food Safety and Qua lity).  The Agency's task is to ensure that 
food consumed, distributed, marketed or produced in Madagascar complies with the strictest safety 
standards.  Since 2004, certificates of fitness fo r consumption and conform ity have been issued, 
establishments have been inspected and various anal yses have been carried out;  technical services are 
provided by a network of seven food testing labor atories.  ACSSQDA is responsible for developing 
national food safety policy.  The legal framework, wh ich is currently concerned with the repression of 
fraud and export quality control58, will, in principle, be suppl emented in accordance with the 
FAO/WHO model.  The National Committee of the C odex Alimentarius has been in existence since 
April 2005. 
(viii) Rules on packaging, marking and labelling 
37. In Madagascar, rules on compulsory marking a pply to pre-packaged foods, in accordance 
with the relevant Codex standard.59  All perishable foods must bear a label, in French or English, 
indicating the origin, the sell-by or use-by date, the ingredients, the method of storage, the name of the manufacturer together with his registration num ber, where appropriate , and the intended use.
  The 
utilization of the metric system is compulsory in Madagascar. 
                                                      
55 Law No. 86-017 of 3 November 1986 ratifying Ordinance No. 86-013 of 17 September 1986, and 
Implementing Decree No. 86-310 of 23 September 1986. 
56 Order No. 4736/2002 of 7 October 2002.  The practical information on the importation of plants was 
consulted at:  http://www.prpv.org /index.php/fr/reglementation/importe r_exporter_des_vegetaux/importer_ 
exporter_a_madagascar/informations_pratiques [14 September 2007]. 
57 "Analyse de la situation des systèmes de sécurité sanitaire des aliments de la république de 
Madagascar ", FAO/WHO Regional Conference on Food  Safety for Africa, Harare, Zimbabwe, 
3-6 October 2005.  Consulted at:  ftp://ftp.fao.org/docrep/fao/meeting/009/af069f.pdf [10 September 2007]. 
58 Basic Law of 1 August 1905 and its subsequent texts relating to the repression of fraud and the 
adulteration of food and non-food products;  Law No. 88-021 of 24 November 1988 notifying Ordinance 
No. 88-015 of 1 September 1988 relating to export policy. 
59 Order No. 8671/2005 of 5 July 2005. WT/TPR/S/197/Rev.1 Trade Policy Review 
Page 40 
 
 
(ix) Contingency measures 
38. At the time of its first TPR, Madagascar did not have any contingency measure legislation 
and the situation has not changed since. 
(x) Other measures 
39. The authorities have notified the WTO of the Free Zone regime under the Agreement on 
Trade-Related Investment Measures (TRIMs) (section (3)(vi)).60  No agreement has been signed with 
foreign governments or enterprises with a view to affecting the volume or value of goods and services 
exported to Madagascar.  Likewise, the authorities are not aware of any su ch agreements between 
Malagasy and foreign companies.  Madagascar complies with the international trade sanctions 
decided by the United Nations Security Counc il and the regional bodies to which it belongs. 
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Customs procedures 
40. The registration formalities applicable to th e importation of goods for commercial purposes 
also apply to exports (section (2)(i)), and the corresponding customs procedures are the same (section (2)(ii)).  Under Madagascar's foreign exchan ge regime, the State may "require the repatriation 
of foreign assets arising out of the export of goods"
61;  this requirement is implemented through the 
domiciliation of export transactions with appr oved intermediaries (for example, banks).62  Four copies 
of the resulting document, namely, "the foreign cu rrency repatriation commitment and declaration" 
(EDRD), must be lodged with the customs servic es for certification and attached to the customs 
documents.  The currency must be repa triated within a period of 90 days. 
41. Under the Mining Code and its implementing decree63, only the approved collector is 
authorized to purchase mining products;  to trans port these products inside Madagascar it is necessary 
to have a pass, which must be attached to the cust oms export declaration.  Hallmarking is compulsory 
for jewellery exported for commercial purposes.  A si milar regime applies to gold, except that the 
approved collector must sell to the Comptoir de l'or (Gold Agency), which carries out the export 
transactions.64 
(ii) Export duties and taxes 
42. According to the authorities, Madagascar does not impose any export taxes.  However, it 
should be pointed out that some products are subject to a charge.  Given that these products are almost 
entirely exported, these charges are de facto  applicable almost exclusivel y to exports.  Thus, a charge 
is applied to fishery products (Chapter IV(2)(iv));  a charge of 1.5 per cent of the f.o.b. value is 
applied to worked wood (Chapter IV(2)(v));  and a mi ning charge of 2 per cent is applied to mining 
products (Chapter IV(3)(i)).  Furthermore, forestry  charges are levied on the exportation of specimens 
of fauna and flora:  at the rate of 4 per cent of th e f.o.b. price for live speci mens;  2 per cent of the 
                                                      
60 WTO document G/TRIMS/N/2/Rev.8 of 19 July 2001. 
61 The information on the foreign exchange regime was obtained from the web site of the Central Bank 
of Madagascar:  http://www.banque-centrale.mg/. 
62 Circular No. 005 of 30 June 1994. 
63 Law No. 99-022 of 19 August 2000 and Decree No. 2000-170 of 15 March 2000. 
64 Decree No. 95-325 of 3 May 1995. Madagascar WT/TPR/S/197/Rev.1 
 Page 41 
 
 
f.o.b. price for processed products (e.g., essential oils);  and 1 per cent of the f.o.b. price for specimens 
that have been reproduced (e .g., by horticultural centres).65 
(iii) Prohibitions, quantitative restrictio ns, controls and export licences 
43. Under the export regime notified to the WTO, numerous species of Madagascar's fauna and 
flora may not be exported, other than for scientific  exchange and/or intergovernmental purposes.  The 
authorities have noted that these measures were take n in conformity with the Washington Convention 
on International Trade in Endangered Species of Wild Fauna and Flora (CITES).  Under CITES, 
Madagascar subjects the exportation of certain species  of wild fauna and flora to prior authorization.66  
Madagascar has prohibited the exportation of any species of wood in rough or semi-finished form 
since July 200767, but authorizes exports in finished form (fo r example, works of art;  craft articles or 
parts of musical instruments made of ebony, rosewoo d or palisander).  The export of medicinal plants 
and archaeological or historical objects is prohibited.68  An exit permit is required by anyone 
exporting more than 250 grams of jewellery for non-commercial purposes.  At the same time, a tourist can export up to a kilogram of jewellery, but must declare the value and provide the mining administration with invoices and s upporting foreign exchange documents.
69 
(iv) Export subsidies, promotion and assistance 
44. Exports benefit from the zero rate VAT regime , which gives entitlement to the refund of the 
duties and taxes levied on the inputs used to produc e them.  Refunds are made, at the request of the 
economic operators concerned, w ithin a period of 30 days.  The temporary admission procedure is 
applicable to construction site plant and equipm ent, spare parts, construction materials, and 
accessories intended exclusively for re-exportation after use.  Inputs, raw materials, and semi-finished 
or finished products used in the manufacture, market preparation, treatment, packaging or 
preservation of other products inte nded for export are eligible for the industrial warehousing regime. 
(v) Industrial Free Zone 
45. Enterprises approved for the Industrial Free Zone  (ZFI) regime enjoy various tax advantages 
(Chapter II(4));  the authorities note that the regime will be amended, starting in 2008.  In principle, 
free zone enterprises must sell as much as 95 per cent of their output, in value terms, for export.  Their 
sales on the national customs territory are subject to  import duties and taxes.  Since 1999, in order to 
give the enterprises approved for this regime a furt her incentive to respect the threshold of 95 per cent 
of production for export, VAT at 20 per cent has been  applicable to inputs introduced into the ZFI.  
The inputs can remain in the ZFI for 12 months.  The VAT is refunded to the free zone enterprises 
within 60 days of their providing proof that the finished goods have been exported.  
46. The sales of free zone enterprises are monitored by  the Ministry of Finance on the basis of an 
examination of the documents submitted by the ente rprise concerned, more particularly, the "foreign 
exchange repatriation undertaking a nd declaration" (EDRD) (Chapter I(2)).  A financial penalty may 
be imposed if the domestic market sales quota is exceeded.  
                                                      
65 Order No. 6833/2001-MEF/SG/DGEF of 28 June 2001. 
66 The requirements are listed on the site of the Ministry of Agriculture, Livestock and Fisheries 
(http://www.maep.gov.mg/fr/formulaire.php?maeplin k=form_animaux.htm) [14 September 2007]. 
67 Interministerial Order No. 10885/2007 of 3 May 2007. 
68 Decree No. 92-424 of 3 April 1992. 
69 Order No. 15269/2003 of 18 September 2003. WT/TPR/S/197/Rev.1 Trade Policy Review 
Page 42 
 
 
47. Some 202 free zone enterprises were active in 2006, employing a total of nearly 
116,000 people.  Exports under this regime amounted to around 300 million special drawing rights 
(SDR) in 2006 (about 56 per cent of the total for that year), with the textiles and clothing item 
accounting for approximately 70 per cent and shrimp s and crustaceans for 15 per cent.  Europe was 
the destination for about 70 per cent of sales, followe d by the United States with 25 per cent.  Imports 
by free zone enterprises amounted to around 190 milli on SDR in 2006, which resulted in a surplus of 
about 110 million SDR.  
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
48. Madagascar's notifications to the WTO indicate th at it grants no aid or subsidy that might be 
inconsistent with its obligati ons under the Agreement on Subsidies and Countervailing Measures or 
under the GATT 1994.70  However, support measures are granted to enterprises approved under the 
Free Zone regime (Chapter II(4)), as well as to large-scale mining investments (Chapter IV(3)(i)).  Public services, such as electricity (Chapter IV(3)(iii) , water (Chapter IV(3)(iv)), air and rail transport 
(Chapter IV(5)(i)) and postal (Chapter IV(5)(iii)) services, also benefit from State aid, as does 
agriculture (Chapter IV(2)(ii)). 
(ii) Competition and price controls 
49. Madagascar adopted a new regulatory framework for competition in 2005
71, but the 
provisions concerning good practice are not yet op erational.  Because of funding difficulties, the 
budget for setting up the Conseil de la concurrence  (Competition Council), which would act as the 
administrative authority for this framework, had still not been approved at the end of 2007.72  The 
legislation establishes free enterprise and free pricing as a general principle, but, where prices are concerned, recognizes that the State, by regulation,  can impose limits on this freedom in the presence 
of a monopoly situation or continuing supply problems,  as well as at times of crisis, for a period of not 
more than six months;  these provisions are already in effect.  The framework also prohibits certain anti-competitive practices.
73  In particular, any merger (the criteria for which are to be established by 
regulation) will be subject to prior examination by the Competition Council (once established);  the 
Council could decide to forbid it or to accept it under certain conditions to be fulfilled by the parties. 
50. Madagascar's current policy is mainly aimed at  monitoring the prices  of basic necessities 
(PPN), namely, edible oils, condensed milk, baby  food, cement, flour, bread, sugar, household soap, 
school exercise books, candles, packaging products.  These are defined within the historical context of 
the price control policy followed by the authorities up to 1987 when the regime was first liberalized.  
Moreover, the Ministry of Agriculture monitors th e price of rice on Madagascar's main markets;  the 
results of the surveys conducted by the monitoring body are published weekly.74  Exceptional 
measures to exempt rice from import duties and tax es were taken in 2005 to deal with shortages 
                                                      
70 WTO documents G/SCM/N/95/MDG of 16 Ju ly 2003 and G/SCM/N/95/MDG/Suppl.1 of 
21 October 2004. 
71 Law No. 2005-020 of 17 October 2005. 
72 "Madagascar:  Création du conseil de la concurrence en 2008 ", L'Express de Madagascar , 
11 August 2007, http://www.lexpressmada.com/inde x.php?p=display&id=10205&search=concurrence. 
73 The usual collective anticompetitive practices prohibited are:  understandings aimed at or having the 
effect of preventing, restricting or appreciably distortin g the free play of competition within the domestic market 
or a substantial part thereof;  and abuses of dominant position.  Mergers are subject to prior review.  Monopolies 
are defined but not prohibited. 
74 Consulted at:  http://www.maep.gov.mg/fr/donnee.php?maeplink=donobsriz.htm. Madagascar WT/TPR/S/197/Rev.1 
 Page 43 
 
 
(section (2)(iv)(e)).75  The prices of petroleum products were liberalized in 2004, in connection with 
the opening up to competition of the activ ities of the downstream petroleum sector 
(Chapter IV(3)(ii)). 
51. According to the authorities, state-owned enterprises and those that benefit from a de jure  or 
de facto monopoly (section (iii)) are granted autonomy in determining their pricing policies. 
(iii) State trading, State-owned enterprises and privatization 
52. Madagascar has not made any notification to the WTO concerning State trading enterprises 
within the meaning of Article XVII of the GATT.  However, HASYMA holds a de jure  monopoly for 
the production of cotton lint, and KRAOMA one for the extraction and marketing of chromium.  
Moreover, the State-owned enterprise JIRAMA holds a de facto monopoly on the transport of 
electricity (Chapter III(3)(iii)) and on the production, transport and distribution of water (Chapter IV(3)(iv)).  TELMA, a private-law en terprise, holds, until June 2008, a monopoly on the 
supply of basic fixed telecommunications servi ces.  Along the South rail corridor commercial 
transport services are provided exclusively by the State-owned enterprise RNCFM (Chapter IV(5)(i)). 
53. The ambitious programme of State withdrawal from economic activity
76, begun in 1997, is 
currently entrusted to the Regulation Directorate of the Ministry of Finance and the Budget (MFB).  
Altogether, this programme involves 53 State-ow ned enterprises, across all sectors.  The State 
withdrawal mechanisms comprise sal es of shares, asset transfers, new equity issues with renunciation 
of preferential rights, liquidation and lease-manageme nt contracts, with account for the rehabilitation 
and/or environmental protection dimension.  The methods of open or selective tendering, after open 
pre-qualification, and sale by auction are generally u sed for privatization purposes.  It should be noted 
that as State land can only be acquired by nationals , long leases are offered to foreigners where the 
purchase of assets is involved.  The difficulties faced by foreigners in obtaining access to land explain 
the policy of seeking strategic partners pursu ed by the State.  Once it is set up, the Fonds de portage 
et de privatisation  – FPP (Transfer and Privatization Fund) will manage the State's minority holdings 
in privatized companies and eventually open the way for the establishment of a stock market.  In 
general, State participation in the Malagasy econom y remains substantial (Tab le III.5).  According to 
the authorities, this participation allows the State to sit on the boards of the companies concerned and 
defend its interests, particularly social. 
Table III.5 
State holdings, October 2006 
Company Activity Equity capital  
(in MGA) State share 
(percentage) Current situation 
Agriculture-fisheries-livestock  
Société agricole de l'Ankaratra 
(AGRIKA) Farming 36,000,000 100.00 Subsidiary COROI – in 
course of liquidation 
Bureau central laitier (B.C.L.) Dairy farming extension 5,878,000 74.79 In course of liquidation 
Compagnie Nosy-béenne de l'industrie agricole (C.N.I.A.) Perfumery plants 79,593,250 100.00 Subsidiary COROI – leased 
to Biolandes 
Fikambanana Fampandrosoana ny Lemak'i Betsiboka (FIFABE) Development of the 
Betsiboka plain 12,400,000 33.06 Liquidation closure pending  
Fikambanana Fampandrosoana an'i 
Toliara (FIFATO) Agricultural development of 
the Toliara region 6,000,000 75.50 In course of liquidation 
Table III.5 (cont'd)
                                                      
75 Law No. 2005-015 of 26 July 2005 exempting rice imports from customs duty.  Since 2006 the zero 
regime has applied to rice. 
76 Law No. 96-011 of 13 August 1996 established the programme and its regulatory framework;  it was 
amended by Law No. 2003-051 of 30 January 2004. WT/TPR/S/197/Rev.1 Trade Policy Review 
Page 44 
 
 
Company Activity Equity capital  
(in MGA) State share 
(percentage) Current situation 
Hasy Malagasy (HASYMA) Cotton growing 3,016,800,000 10.00  
Société langouste du Sud (LANSU) Fishing and crayfish 
gathering 10,000,000 40.00 In course of liquidation  
Malts et orges de Madagascar 
(MALTO) Barley growing 467,449,000 39.40  
Société pour le développement de 
Matitanana (MATITANANA) Agricultural extension 5,000,000 100.00 In course of liquidation 
filiale COROI 
Les pêcheries de Nossi-Be (PNB) Deep-sea fishing and fish 
farming 2,161,600,000 23.01  
Société d'aménagement et du 
développement de la plaine de bas – 
Mangoky (S AMANGOKY) Agricultural extension 59,000,000 79.00 In course of liquidation 
closure EGM pending 
Société Andapa Mamokatra (SOAMA) Agricultural extension  20,000,000 100.00 In course of liquidation 
Société pour le développement du 
moyen-ouest (SODEMO) Agricultural extension 54,000,000 96.42 In course of liquidation 
minutes of EGM pending 
Société malgache du Lac Alaotra (SOMALAC) Agricultural extension 34,200,000 85.50 In liquidation 
Société malgache de pêcherie 
(SOMAPECHE) Deep-sea fishing and fish 
farming 1,344,266,000 1.00  
Société de pêcherie de Boina 
(SOMAPEBO)  1,622,740,000  State shares transferred to 
Codal in October 2006 
Société theicole de Madagascar (SOTHEMAD) Tea plantation 87,800,000 100.00 Exploitation of plantation 
transferred to SIDEXAM, 
no longer active – asset 
management co. 
Société Lamoulie Valentin  Manakara & Farafangana 
plantation 5,000,000 100.00 Management COROI – in 
course of liquidation plantation Valentin 
abandoned 
Ronono Malagasy (ROMA) Dairy products 600,000 25.00 Closed down 
Trade, collection and distribution     
Comptoir de représentation pour 
l'océan Indien (COROI) Wholesale trade in staples – 
import/export 900,000,000 100.00 In course of liquidation 
Société anonyme Maxime Darrieux 
(S.A. M Darrieux) Office equipment and 
supplies – hardware 100,000,000 100.00 In course of liquidation 
Tranombarotra Roso Wholesale trade in staples – 
import/export 400,000,000 100.00 In course of liquidation 
Société industrielle et commerciale 
de l'Emyrne (SICE) Wholesale trade in staples – 
import/export 200,000,000 100.00 In course of liquidation 
Société d'intérêt national des 
products agricoles (SINPA) Collection and distribution 
of staples 66,000,000 100.00 In course of liquidation 
Société générale de distribution 
(SOGEDIS) Distribution of goods and 
retail trade 27,800,000 100.00 In course of liquidation 
Société malgache de collecte et de 
distribution (SOMACODIS) Import, export, supermarket 280,000,000 100.00 In course of liquidation 
Société pour l'exportation du café 
du Sud (SECA) Export of coffee, pepper, 
cloves 30,000,000 100.00 Subsidiary COROI 
In course of liquidation 
Société pour le conditionnement de l'exportation des products agricoles 
(SCEPAG) Rice 27,000,000 100.00 Subsidiary COROI 
In course of liquidation 
Société des products de Madagascar (SPM) Coffee, pepper, cloves 60,000,000 100.00 Subsidiary COROI 
In course of liquidation 
Omnium de maintenance de 
véhicules de transport (OMAVET) Spare parts for Japanese 
industrial vehicles 1,750,000,000 69.00 State holding assigned to 
CUA;  payment for the 
shares assigned by CUA 
pending 
Table III.5 (cont'd)Madagascar WT/TPR/S/197/Rev.1 
 Page 45 
 
 
Company Activity Equity capital  
(in MGA) State share 
(percentage) Current situation 
Petroleum distribution  
Total Madagasikara S.A. Petroleum distribution 14,956,152,000 20.00 Operation concluded 
SHELL Petroleum distribution  3,600,000,000 20.00 Operation concluded 
JOVENNA Petroleum distribution  7,888,760,000 10.00 Operation concluded 
GALANA DISTRIBUTION Petroleum distribution  5,103,200,000 30.00 Operation concluded 
GALANA RAFFINERIE 
TERMINAL Petroleum distribution  3,000,000,000 20.00 Operation concluded 
Logistique pétrolière Petroleum distribution  19,889,380,000 31.00 Operation concluded 
Industry  
La Laiterie de soja D'Ambatolampy 
(Unité LALASOA) Soya processing 92,400,000 100.00 In liquidation 
Famokarana Mahabibo Malagasy 
(FA.MA.MA) Cashew-nut plantation and 
processing 115,500,000 99.56 Plantation remains 
Société d'exploitation commerciale 
et industrielle de l'abattoir de 
Morondava (SECIAM) National abattoir 40,400,000 72.18 In course of liquidation 
Société d'exploitation de viandes de 
Madagascar (SEVIMA) Canning 14,400,000 100.00 In course of liquidation 
Société malgache de conserverie 
(SOMADCO)  Tomato canning 12,000,000 93.75 In course of liquidation 
Société STAR Carbonated beverages and 
health drinks 4,290,000,000 11.21  
Société des jus de fruits d'Antsirabe 
(SOJUFA) Fruit juice and mineral water 20,000,000 15.00 Serious difficulties with 
working capital 
Société industrielle de stockage et de traitement des products agricoles 
(TRAPAG) Storage and processing of 
agricultural products 40,000,000 100.00 Subsidiary COROI 
In course of liquidation 
Société Siramamy Malaigasy (SIRAMA) Sugar cane plantation and 
processing  1,874,800,000 74.40  
Société Siramamin'Analaiva 
(SIRANALA) Sugar cane plantation and 
processing  100,000,000 65.00 Operation entrusted to 
SUCOMA 
Société des palmiers à huile de Madagascar (SOMAPALM) Oil palm plantation and 
refinery 23,600,000 65.85 In course of liquidation 
Société Sambava Voanio 
(SOAVOANIO) Coconut plantation and 
processing 300,000,000 78.50  
La cotonnière d'Antsirabe 
(COTONA) Spinning and weaving 12,951,000,000 38.32  
Filature et tissage de Madagascar 
(FITIM) Jute sacks 780,200,000 37.40  
Société Sud Madagascar textile 
(SUMATEX) Spinning and weaving 280,000,000 58.33 In course of liquidation 
Société industrielle du bois (SIB) Plantation and woodworking 5,780,000,000 99.98  
Société industrielle du bois (SIB) Woodworking 17,200,000 100.00 In course of liquidation 
Société pour le développement du 
machinisme agricole (SIDEMA) Agricultural mechanization 16,000,000 73.00  
Entreprise "TOLY" Agricultural mechanization 132,000,000 100.00 In course of liquidation 
Société d'étude, de construction, de 
réparation navale (SECREN) Shipbuilding 400,000,000 37.50  
Torginol Madagascar Paint 12,000,000 100.00 In course of privatization 
Orin'Asa Fanaovana Fanafody 
(OFAFA) Pharmaceuticals 118,000,000 50.00  
Energy  
Jiro sy Rano Malagasy (JIRAMA) Production and distribution 
of electricity and water 87,665,421,521  100.00  
Solitany Malagasy (SOLIMA)  Refining and distribution of 
petroleum products 500,810,000 100.00 In course of liquidation 
Table III.5 (cont'd)WT/TPR/S/197/Rev.1 Trade Policy Review 
Page 46 
 
 
Company Activity Equity capital  
(in MGA) State share 
(percentage) Current situation 
Mines and drilling  
Kraomita Malagasy (KRAOMA) Extraction of chromium 308,000,000 100.00  
Société marbre et granit de 
Madagascar (MAGRAMA) Extraction of marble and 
granite 1,700,000,000 1.00  
Forages, essais, travaux spéciaux 
(FORESTRAS) Drilling 4,000,000 25.00 In course of liquidation 
Transport  
Société nationale des transports 
aériens "Air Madagascar" Air transport 17,685,440,000 90.59  
Réseau national des chemins de fer 
Malgache (RNCFM) Rail transport  2,000,000,000 100.00 Management of remaining 
assets 
MADARAIL Rail transport  5,000,000,000 25.00  
Filaterana Malagasy (FIMA) Passengers and freight - 
urban and national lines 80,000,000 70.92 In course of liquidation 
Société nationale de transports et de 
services "Air Route Service/ATO" 
(ARS/ATO) Road transport 110,000,000 90.90 In course of liquidation 
Société malgache de transports 
maritimes (SMTM) Long-haul maritime 
transport 1,049,750,000 75.33 In course of reorganization 
Compagnie malgache de navigation 
(CMN) Local and regional cabotage 196,000,000 97.51 In course of liquidation 
Société d'exploitation du bac 
automoteur Katsepy (SEBAK S.A) Passenger and freight 
transport Katsepy zone 250,000,000 49.00  
Port and airport services 
Aéroport de Madagascar (ADEMA) Management of 12 air 
terminals 130,000,000 68.00 In course of privatization 
Société d'exploitation du Port de 
Toamasina (SEPT) Port infrastructure 2,311,414,000 100.00  
Communications     
Société anonyme Telecom 
Malagasy (TELMA SA) Telephony 41,156,200,000 32.00  
CINEMEDIA Film distribution 120,000,000 75.00  
Tourism  
Madagascar Airtours (MAT) Travel agency 270,553,840 16.72  
Société malgache d'hôtellerie 
(SMH) Management company for 
the Madagascar Hilton hotel 679,800,000 46.57  
Société touristique et hôtelière de 
Madagascar (SOTOHOMA) Owner of Palm Beach Nosy 
Be and casinos 10,000,000 100.00 Closed down 
real estate problems (hotel 
built on others' land) 
Casino Club de Madagascar (CCM) Owner of Andilana Beach 
Nosy-Be 11,000,000 98.20 Leased to SMTH under 
management contract 
Société d'études immobilières et d'exploitation hôtelière "ZAHA 
MOTEL" (SEIXEHO-ZAHAMOTEL) Owner of ZAHA hotels 71,730,000 50.89 
Lease of ZAHA Mahajanga 
to SOFITRANS  
Building and public works 
Société d'intérêt national des travaux publics (SINTP) Public works 160,000,000 100.00 Closed down since 1992 
Société sino–malgache des travaux 
publics (SMATP) Public works  400,000,000 30.50  
Laboratoire national des travaux 
publics et des bâtiments (LNTPB) Public works  2,000,000 100.00 Unable to convert to limited 
company 
Antok'Asa Ambanivohitra (A.A.A.) Rural engineering 160,000,000 100.00 Closed down since 1993 
In course of privatization 
Société d'équipement immobilier de Madagascar (SEIMAD) Construction and 
management 271,760,000 98.00  
Table III.5 (cont'd)Madagascar WT/TPR/S/197/Rev.1 
 Page 47 
 
 
Company Activity Equity capital  
(in MGA) State share 
(percentage) Current situation 
Société "Ny Antsiva" Construction and civil 
engineering 50,000,000 30.00 In course of liquidation 
Consultancy 
Cabinet "RINDRA" Advice and assistance 10,000,000 100.00  
Société d'étude et de réalisation 
pour le développement industriel 
(SERDI) Advice and assistance 33,000,000 85.00 In course of privatization 
Financial services 
BNI – Madagascar Bank 10,800,000,000 32.58  
BFV – SG Bank 14,000,000,000 28.50  
BOA – Madagascar Bank 18,000,000,000 10.00  
Fonds de garantie malgache 
(FDGM) Bank 400,000,000 49.00  
Caisse d'épargne de Madagascar 
(CEM) Bank 5,460,000,000 100.00  
SGR Bank 1,200,136,500 100.00  
SOFIRE Bank 439,000,000 100.00  
ARO Insurance company  7,013,30 73.25  
NY HAVANA Insurance company  5,435,60 47.61  
Autres 
Société d'exploitation de loterie 
(SEL) National lottery 20,000,000 57.50 Closed down 
Société nationale de participation 
(SONAPAR) Equity participation 850,000,000 56.77  
Société mixte libyo – malgache 
"LIMA HOLDING" Equity participation   326,400,000 19.00  
Fonds de portage et de privatisation 
(FPP) Equity participation 20,000,000 100.00  
Société du port à gestion autonome 
de Toamasina (SPAT) Equity participation 20,000,000 100.00  
Société du port à gestion autonome 
de Toliary (SPATO) Equity participation 250,000,000 51.00 Being formed 
Société du port à gestion autonome 
de Manajanga (SPAM) Equity participation 300,000,000 47.00 Being formed 
Société du port à gestion autonome 
d'Antsiranana et de Nosy-Be (SPAAN) Equity participation 250,000,000 51.00 Being formed 
Source : Malagasy authorities. 
54. The first wave of privatizations, starting in 1998 , involved the banks.  It was followed by the 
liberalization of the importation, storage, processing, transport and distribution of fuels 
(Chapter IV(3)(ii)).  The change of economic stra tegy in 2002 (Chapter II(2)) revitalized the process 
of State withdrawal and liberalization.  Out of the ten major projects identified by the authorities, three were completed in 2004, with the privatization of TELMA
77, in the telecommunications sector 
(Chapter IV(5)(iii)) and HASYMA78, in the cotton sector (Chapter IV(2)(iii)), and the granting to 
Madarail of a 25-year concession to operate th e RNCFM Nord rail network (Chapter IV(5)(i)).79  
                                                      
77 Transfer by the State of 34 per cent of TELMA's shares to the Consortium Distacom for 
US$12.6 million.  Distacom also acquires France Cable Radio's 34 per cent holding.  The State retains 32 per 
cent of the shares. 
78 Transfer by the State of 52 per cent HASYMA's shares to DAGRIS for US$1.6 million.  DAGRIS 
already held 38 per cent of the shares.  The State retains 10 per cent of the shares. 
79 Madarail is the company set up to manage the concession and the State investment fund for 
renovation of the rail network.  This company is owned by Madarail Holdings (51 per cent), Manohisoa WT/TPR/S/197/Rev.1 Trade Policy Review 
Page 48 
 
 
Altogether, the revenue derived from priva tization between 2000 and 2006 amounted to 
US$69 million.  The privatization of ADEMA (airport services), Air Madagascar, SOFITRANS (tourism services), SIRAMA (sugar mills), and SBM (b anking services) has b een suspended, while 
the transfer of the remaining assets and final invo luntary liquidation of SOLIMA (former State-owned 
oil company) are in progress.  The reorganization of JIRAMA is one of the authorities' current 
priorities because of the difficulties with the supply of electrical energy.
80 
(iv) Government procurement 
55. Madagascar's government procurement regime ha s been completely revised since its first 
TPR.  The new regime adopted in 2004 was devise d with the technical a ssistance of the World 
Bank.81  It has been progressively introduced since 2005 through the adoption of the corresponding 
administrative and procedural regulations.  The Autorité de régulation des marchés publics  – ARMP 
(Government Purchasing Regulatory Authority) was set up in 200582, and has been busy promoting 
the adoption of the Code.83  The ARMP is made up of two entities, namely, the Comité de 
réglementation et des recours en matiè re d'attribution des marchés publics  – CRR (Committee for 
Regulation and Appeals concerning the Awa rd of Public Contracts) and the Commission nationale des 
marchés publics  – CNM (National Public Contracts Commission), established in 2006. 
56. The ARMP is responsible for monitoring complia nce with the provisions of the Code, applied 
within each entity covered by a Commission d'appel d'offres  – CAO (Tender Commission) chaired by 
the person responsible for government  procurement;  for example, within a ministry, that person 
would be the Minister, while at regional level the pers on responsible would be the head of that region.  
The CAO is responsible for examining bidders and assessing their bids, while the person responsible 
signs the contract.  Anyone involved in the award and execution of a public contract is subject to the code of good conduct drawn up in 2006
84 and must undertake in writing to fulfil all the ensuing 
obligations.  Madagascar is neither a member nor  an observer at the Plurilateral Agreement on 
Government Procurement concluded under the aegis of the WTO, but the authorities are interested in 
observer status. 
57. The Code is intended to "ensure that govern ment purchasing is efficient and that public 
monies are properly used".85  In principle, it applies to purchases made by State and public 
institutions, local authorities and their public instituti ons;  any public or private entity whose resources 
are derived from public funds;  and any enterprise  in which the State has a majority holding 
(Table III.5).  In practice, the Code is being pr ogressively introduced by the entities concerned.  
However, many State-owned enterprises have thei r own contract award procedures.  Contracts 
financed from external resources are also subject to th e Code, provided there is nothing to the contrary 
in the clauses of the finance agreements concerned. 
                                                                                                                                                                     
financière (12.5 per cent), First immobilière (9 per cent ), Financière Aro (2.5 per cent) and the State (25 per 
cent). 
80 IMF (2007b). 
81 Law No. 2004-009 of 26 July 2004. 
82 Decree No. 2005-215 of 3 May 2005.  Its officials were appointed in June 2006.  The information on 
the ARMP was obtained from the web site:  http://www.armp.mg/ [26 December 2007]. 
83 See, for example, the Guide de l'utilisateur .  Consulted at:  http://www.armp.mg/files/GUIDE-
UTILISATEUR-SUR-LA-PASSATION-DE- MARCHE.pdf [26 D ecember 2007]. 
84 Decree No. 2006-343 of 30 May 2006. 
85 Article 4, Law No. 2004-009 of 26 July 2004. Madagascar WT/TPR/S/197/Rev.1 
 Page 49 
 
 
58. The thresholds for the application of the C ode are defined by regulation;  certain large 
contracts may be reviewed post facto  by the administrative authority (Table III.6).86  Beyond these 
thresholds, contracts are, in principle, subject to the tender procedure;  recourse to direct negotiation 
must be justified in a report to the ARMP by the person responsible.  In principle, tender notices are 
published in advance in a specialized government jour nal and in at least one daily newspaper with a 
wide circulation.87  Tendering may be open (with or without  pre-qualification) or selective.  In 
principle, the lowest bid is accepted, but nationa l enterprises may be accorded a price advantage of 
10 per cent at most.  Selective tendering requires at least three suppliers or enterprises.  Inviting at 
least three suppliers to bid is a principle that is also applied to contracts below these thresholds, which 
are awarded by issuing a purchase order as specified in the regulations. 
59. The new regime is struggling to become established.  Thus, no contracts were put out to 
tender in 2004, only three in 2005, and seven in 2006.  According to the authorities, 22 per cent of contracts awarded in 2007 were awarded by direct  negotiation;  according to the International 
Monetary Fund (IMF)
88 recourse to tendering does not appear to  be widespread, and a survey carried 
out for the Conseil supérieur de lutte contre la corruption  – CSLCC (Anti-Corruption Council) 
showed that corruption is a phenomenon th at often affects government procurement.89 
Table III.6 
Thresholds for the award of public contracts, 1 January 2008 
(in MGA)  
Works 
Highway Contracting authority Threshold 
Construction 
rehabilitation Maintenance Other Supplies Provision of 
services/ 
intellectual 
services 
Award 1 billion 200 million 140 million 80 million 25 million State and ex-categorya 
urban communes and their 
public institutions Prior review 4 billion 750 milli on 300 million 200 million 90 million 
Award 500 million 100 million 75 million 50 million 20 million Regions, urban communes 
of categories 1 and 2a and 
their public institutions Prior review 2 billions 350 million 150 million 120 million 80 million 
Award 250 million 50 million 35 million 20 million 6 million Rural communes and their 
public institutions Prior review 1 billion 200 million 80 million 50 million 25 million 
State-owned companies 
and Industrial and 
Commercial Public 
Institutions (EPIC) Post facto  
review 1 billion 200 million 140 million 80 million 25 million 
a The urban communes of categories 1 and 2 are the six provinc ial capital urban communes and the urban communes of Antsirabe, 
Nosy-Be and Sainte Marie.  The other urban communes are ex-category. 
Source : Order No. 20 476/2007/MEFB of 20 November 2007. 
(v) Protection of intellectual property rights 
(a) Overview 
60. There has been no substantial revision of Madag ascar's intellectual property regime since its 
first TPR in 2001.  It still consists  of a regime specifically for the protection of industrial property90, 
                                                      
86 Order No. 11179/2006/MEFB of 29 June 2006, as amended. 
87 Publication online is also offered by th e ARMP at http://www.armp.mg/avis_g_n_raux. 
88 IMF (2007b). 
89 Casas & Associates (2006). 
90 Ordinance No. 89-019 of 31 July 1989 and Decree No. 92-993 of 2 December 1992. WT/TPR/S/197/Rev.1 Trade Policy Review 
Page 50 
 
 
and another regime covering copyright and related rights.91  The authorities point out that they are 
continuing their efforts, already mentioned in the first TPR, to bring the national legislation into 
conformity with the provisions of the TRIPS Ag reement, as they apply to LDCs (including 
Madagascar), and expect the provisions relating to the protection of industrial property to be revised 
in the course of 2008. 
61. Madagascar has been a member of the World Intellectual Property Organization (WIPO) 
since 22 December 1989.  In 1963, Madagascar acceded to the Paris Convention for the Protection of 
Industrial Property and in 1972 to the Stockholm Act;  in 1966 it acceded to the Brussels Act of the 
Berne Convention for the Protection of Literary and Artistic Works, and in 1978 to the Patent 
Cooperation Treaty (PCT).  Madagascar has signed th e Patent Law Treaty (2000), and in 2007 ratified 
the Protocol relating to the Madrid Arrangement fo r the International Registration of Marks.  The 
authorities would like to build national capacity in order to speed up the process of ratification of the 
treaties administered by WIPO. 
(b) Industrial property 
62. In Madagascar, industrial property is administered by the Office malgache de la propriété 
industrielle  – OMAPI (Malagasy Industrial Property Office).92  There is provision for four titles, 
namely, patents, trademark regist rations, industrial design registrati ons, and trade name registrations, 
accompanied in each case by a term of protection and sanctions in the event of infringement of the protected rights.  Software, plant or animal varieties, and essentially biological processes for the production of plants or animals, together with ph armaceutical, veterinary, cosmetic and food products, 
are excluded from patentability
93, contrary to the provisions of the TRIPS Agreement.  However, 
software is protected under the copyright regime (see  below).  Moreover, the authorities point out that 
patent applications for pharmaceutical products mainly concern the manufacturing processes, which 
are patentable, rather than the products themselves. 
63. The obtaining (or renewal) of an industrial pr operty title is based on an application made out 
on a form available from OMAPI, in acco rdance with an established scale of fees.94  After receiving 
the form, OMAPI proceeds to initiate the procedure and register and examine the application.  The 
industrial property titles issued are published in the Gazette officielle de la  propriété industrielle  – 
GOPI (Official Industrial Property Gazette).  Since 1994, OMAPI has received 502 patent applications (64 per cent from non-residents under th e PCT, and the rest from residents) and has 
issued 336 patents (Table III.6).  Patent protection is  granted for a term of 15 years;  this term of 
protection is less than the 20 years stipulated in the TRIPS Agreement, although the authorities point 
out that an "additional five-year term of protec tion may be granted on request, provided that the 
national interest so requires and local exploitation is serious and satisfactory".  Moreover, protection 
of trademarks and trade names is granted for te n years and can be renewed for further ten-year 
periods, while industrial designs are protect ed for five years, twice renewable. 
64. In the event of industrial property rights being infringed, the holder, by virtue of an order 
made by the president of the competent court,  may proceed with the designation and detailed 
description, with or without seizure, of the allege dly counterfeit objects.  The sanctions for violation 
of industrial property rights are six months to three years' imprisonment and/or a fine of 
MGA 100,000 to 2 million, plus damages.  In the ev ent of a repeat offence, the penalty is doubled. 
                                                     
 
91 Law No. 94-036 of  9 December 1994. 
92 Decree No. 92-994 of 2 December 1992.   
93 Article 8, Ordinance No. 89-019 of 31 July 1989. 
94 Information on the regime, the texts of the laws, and the procedures, forms and taxes was obtained 
from the OMAPI web site:  http://www.omapi.mg/. Madagascar WT/TPR/S/197/Rev.1 
 Page 51 
 
 
65. OMAPI also undertakes missions to raise the awar eness of economic operators and keep them 
informed.  In Madagascar, the products most lik ely to be counterfeited are clothing, perfumery 
articles, and film and music CDs and DVDs.  Article 29 of the Customs Code (2007) describes products bearing a trademark identical to that regi stered as being those prohibited, and this provides 
the authorization for seizures at th e customs cordon.  So far, howev er, OMAPI has not intervened in 
the local market to seize counterfeit artic les that have passed through customs. 
Table III.7 
Industrial property applications and titles issued, 1994-2006 
Number of applications filed Number of titles issued  
Residents Non-residents Residents Non-residents 
Patents 133 369 72 264 
Trademarks for products and 
services 3,173 5,510 2,605 4,980 
Industrial designs 2,363 112 1,851 91 
Trade names  684 14 618 4 
Source : Malagasy Industrial Pr operty Office (OMAPI). 
(c) Copyright and related rights 
66. In Madagascar literary and artistic property is administered by the Office malagasy du droit 
d'auteur  – OMDA (Malagasy Copyright Office)95, whose tasks include the protection, defence and 
management of copyright and related rights.  Th e regulatory framework for copyright is harmonized 
with certain relevant provisions of the WTO's TRIPS Agreement.  This applies, in particular, to the 
term of copyright protection which, under the Mala gasy regime, covers the life of the author and 
70 years after his death.  Software is protected for 25 years after its creation (contrary to the provisions of the TRIPS Agreement which ca ll for a 50-year term of protection), the droit de suite  
(resale royalties) lasts 70 years, the rights of performers are protected for 50 years after fixation, and 
the rights of radio and television broa dcasting organizations for 20 years. 
67. The OMDA collects royalties for the use or exploitation of literary and artistic works and, 
after deducting management costs, distributes them to those entitled (including foreigners).  For radio 
stations, restaurants and hotels, the OMDA proposes lu mp-sum payments in the absence of systematic 
monitoring of the works broadcast.  The OMDA has 4,877 members and by mid-2007 had registered 
89,517 works. 
68. The OMDA participates in the seizure of co unterfeit products (25,000 CDs, VCDs, and 
DVDs between 2004 and 2006).  Since 2006, it has been possible to carry out seizures without a prior complaint from the authors or their beneficiaries.
96 
                                                      
95 Decree No. 98-434 of 16 June 1998. 
96 Interministerial Order 12226/2006 of 17 July 2006.