WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/209/Add.1 
8 July 2009 
 (09-3349) 
Trade Policy Review Body 
22 and 24 April 2009 Original: English/ 
 anglais/  inglés 
 
  
TRADE POLICY REVIEW 
MOZAMBIQUE 
Record of the Meeting
 
Addendum  
Chairperson:  H.E. Mr. Istvan Major (Hungary) 
 This document contains the advance written questions, and replies provided by Mozambique.1 
__________________________________________________________________________________  Organe d'examen des politiques commerciales 22 et 24 avril 2009  
EXAMEN DES POLITIQUES COMMERCIALES 
MOZAMBIQUE 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. M. Istvan Major (Hongrie) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par le Mozambique.1 
__________________________________________________________________________________  
Órgano de Examen de las Políticas Comerciales 
22 y 24 de abril de 2009 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
MOZAMBIQUE 
Acta de la reunión
 
Addendum  
Presidente:  Excmo. Sr. Istvan Major (Hungría) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Mozambique.1 
                                                      
1 In English only./En anglais seulement./En inglés solamente.   
    WT/TPR/M/209/Add.1 
 Page 3 
 
 
 ADVANCE WRITTEN QUESTIONS BY MEMBERS AND 
REPLIES PROVIDED BY MOZAMBIQUE 
 
 
 
I.  ADVANCED QUESTIONS BY BRAZIL 
WT/TPR/G/209 
Report by Mozambique 
 Question 1 
 
1.    Economic environment and development 
1.1  Economic environment 
 
How does the Government of Mozambique evalua te the contribution of debt relief to the 
country’s growth?    
 
Debt relief has contributed positively to the econ omic growth of the country. Mozambique’s PIB 
has been growing at an average annual rate higher than 6% in the past 10 years.  
Report by Mozambique 
 
Question 2 
 
4.  Mozambique and the WTO 
4.1. Technical Assistance Needs 
 
How does Mozambique assess the impact of technical assistance received so far in terms of its contribution to the integration of the country to the world economy?   
Technical assistance received so fa r from different sources has been very important.  But we would 
like to see more technical assistance not limited  to seminars or workshops. We need to see 
programs that should have an impact and that ca n make a difference in our production capacity, 
response to the international requirements, and adjustm ent of domestic laws to be aligned with of 
the multilateral trading system.  
Has bilateral cooperation been playing a significant ro le in the area of external trade? Would it be 
possible to elaborate on this issue? 
 
Bilateral cooperation can play an additional and sign ificant role in the area of external trade. More 
important to be taken into account is the need  of national ownership of all programs which may 
result from bilateral cooperation.  
• Transference of technology and know- how to Mozambique would also play an important 
role in bilateral cooperation;   
• Assistance to promote SME; 
• Assistance aimed at creating financial conditions to promote SME.  
   WT/TPR/M/209/Add.1 
Page 4  
 
 II.  ADVANCED QUESTIONS BY CANADA 
Report by the Government (WT/TPR/G/209) 
Part 4. Mozambique and the WTO: 4.1 Technical Assistance Needs: paragraphs 60-62, page 12; 
and Secretariat Report: Part II. Trade and In vestment Regimes: Annex II.1: Trade-Related 
Technical Assistance: paragraphs 2 and 3, page 25: 
It is noted in the Government report that Mozambi que foresees substantial technical assistance needs 
to facilitate, inter alia: the compliance of Mozambi can exports with technical  regulations, including 
sanitary and phyto-sanitary requirements and the implementation and develo pment of the domestic 
legal framework.  
The Secretariat report notes that Mozambique partic ipates in the Integrated Framework (IF) and also 
identifies, in paragraph 3, areas in which Mo zambique requires trade-related assistance from the 
WTO. 
Canada notes that a revised Poverty Reduction Stra tegy Paper (called PARPA) was completed in May 
2006 and included significantly more attention to tr ade and economic growth issues than the previous 
one of 2001. It included trade issues and r ecommendations contained in the Diagnostic Trade 
Integration Study (DTIS) conducted with the IF  recommendations (regional integration, customs 
reform, transport, export development, sectoral policies). 
1. Canada would be grateful if Mozambique could indicate:  
a. Which specific domestic laws and regulations n eed to be aligned with WTO rules and that 
would require technical assistance.  
Assistance will be required to address issues like TBT, SPS, Application of Anti-dumping 
Measures, Law of Telecommunications, Laws and Re gulations in the maritime sector to comply 
with United Nations Conventions on the Law of  the See (UNCLOS); the International Maritime 
Organization Conventions (IMO);  Civil aviatio n law and regulations to be aligned with 
International Civil Aviation Organization; Trade Facilitation Legal framework such as 
Competition Law, Anti-dumping and  Safeguards measures.  
b. Has the priority assigned to trade and econom ic growth issues in the 2006 PARPA led to 
increased focus on these issues in Mozambique ’s priority setting with its key donor 
partners? 
The priority assigned to trade and economic growth  issues have led to an increased focus on these 
issues. All the issues have been discussed with  our cooperation partners with emphasis business 
environment, enterprise development, fiscal polic y, agriculture policy, human capital, growth 
strategy on rural development.  
Canada notes that, with the exception of certain aspects of the supply-side constraints, many of 
Mozambique’s aid for trade needs itemized in th e Secretariat Report can be met within existing 
mechanisms including the WTO Doha Develo pment Agenda Global Trust Fund (DDAGTF), the 
Advisory Centre on WTO Law (ACWL), the Standa rds and Trade Development Facility (STDF) and 
the Enhanced Integrated Framework (EIF).  
2. Has Mozambique approached any of these bodies or is it intending to approach them for 
assistance in the near future?  WT/TPR/M/209/Add.1 
 Page 5 
 
 
 We once approached the Advisory Centre on WTO Law (ACWL). We would like to have ACWL 
assisting Mozambique on legal issues. 
Report by the Secretariat (WT/TPR/S/209) 
Part II. Trade and Investment Regimes: (3) Trade Agreements and Arrangements; (i) WTO: 
paragraphs 15 and 16, page 15: 
The Secretariat report notes that since its firs t TPR in 2001, Mozambique has made only one 
notification to the WTO.” Paragraph 16 goes on to say  that, “Mozambique has failed to comply with 
WTO notification obligations in most areas”. 
3. What measures is Mozambique putting in place to  overcome past challenges with compliance to 
WTO TBT transparency obligations, in particular notification of draft measures in order to allow 
for comments?  
Mozambique as an LDC is facing some problem s but we are developing efforts to build the 
necessary capacity to comply with the WTO notification obligations. 
Part III. Trade Policies and Practices by Measure: (2) Measures Directly Affecting Imports; (vi) 
standardization, accreditation and certification: paragraph 40, page 39: 
The report notes that, “to date four committees have  issued 72 standards, and have an ambitious 
program for 2008”.  
4. Could Mozambique please provide more details as to the specifics of the program, and could it 
clarify if this program began in 2008, or will begin in 2009? 
By 2008 a 107 standards had been approved. We have a plan to develop and approve 70 standards 
in 2009 and 70 in 2010.   
On the other end, we are in the process of  capacity building for the certification.    
Part III. Trade Policies by Measure: (2) Meas ures Affecting Imports; (vii) Sanitary and 
Phytosanitary (SPS) measures: paragraph 43, pages 39 and 40:  
5. What measures is Mozambique putting in place to  overcome past challenges with compliance to 
WTO SPS transparency obligations, in particular notif ication of draft measures in order to allow for 
comments? 
Mozambique as an LDC is facing some problem s but we are developing efforts to build the 
necessary capacity to comply with the WTO notification obligations. 
Pursuant to SPS transparency recommendations (G/ SPS/7/Rev.3, page 2, paragraph 8), “Members are 
encouraged to notify all regulations  that are based on, conform to, or are substantially the same as an 
international standard, guideline or recommendation, if  they are expected to have a significant effect 
on trade of other Members.”  
The Secretariat report notes that, “The only SPS measures on imports are based on international 
standards drawn up by the World Organization for Animal Health (OIE), the International Plant 
Protection Convention (IPPC), and the C odex Alimentarius [Commission (CAC)].” WT/TPR/M/209/Add.1 
Page 6  
 
 6. In an effort to enhance its transparency prac tices, does Mozambique intend to notify its trade-
significant SPS measures that are compliant with international standards from OIE, IPPC, CAC? 
If so, could Mozambique elaborate? 
Yes, we are contracting party of IPPC, OIE and Codex. Mozambique has been notifying for OIE 
and Codex Alimentarius.  
Part III. Trade Policies by Measure: (2) Measures Affecting Imports; (v) Prohibitions, 
quantitative restrictions, and licences: paragraph 36, page 28; and 
Part III. Trade Policies by Measure: (2) Meas ures Affecting Imports; (vii) Sanitary and 
phytosanitary (SPS) measures: paragraph 45, page 40:  
Paragraph 36 of the Secretariat report notes that, “a regime for GMOs was adopted in 2007, which 
provides for imports and products containing GMOs to be subject to prior approval.” However, 
paragraph 45 appears to say that the import of  genetically modified seeds is prohibited. 
7. Could Mozambique clarify whether the import of any genetically modified product is prohibited? 
There is no prohibition for import of GMO’s. How ever, as a matter of procedure, prior import 
approval by the National Authority is required (decree 6/2007 of GMO’s). 
8. If yes, could Mozambique provide information on which products are prohi bited and provide the 
rationale for the prohibition?  
N/A 
9. Could Mozambique provide additional informatio n on the GMO regime that was adopted in 
2007?  For example, what Government Department  is responsible for approvals? What is the 
approval process and how long does it take for a GMO to be approved?   
National Authority is the Ministry of Science and T echnology. At technical level there is an inter-
ministerial commission with a major responsib ility of screening proposals on importation of GMO 
and recommend changes on the legislation as requested.    
10. What GMOs have been approved by Mozambi que since the regime was adopted in 2007? 
None up to date. Request has been directed to  the GMO commission. However, the government did 
not yet define type of species that are allowed to be imported neither regions in the country where it 
can be cultivated under governmental monitoring.  
Part III. Trade Policies and Practices by Measure: (4) Measures Affecting Production and Trade; (iv) 
Government Procurement: paragraph 70, page 45:  
11. Could Mozambique please provide additional inform ation as to the state of implementation of its 
Procurement Regulations adopted in 2005? 
Decree no 54/2005, of 13 December, approves the Re gulation that establishes the legal framework 
for contracting public works and the suppl y of goods and services to the government. 
 The general assessment by the end of 2008 was th at the Regulation was applied with increasing 
consistency, considering the most recent evaluations by the PEFA fo r acquisitions (indicator PI-19) 
published in 2008 which raised the co untry's classification from C to B. 
  WT/TPR/M/209/Add.1 
 Page 7 
 
 
  In 2008 the UFSA, with the support of development partners including the World Bank, the 
groundwork was put in place for the establishment of a system of monitoring and evaluation of the 
performance of public acquisitions. This exerci se began in March 2008 with the launch of the 
Evaluation Method of the OECD. 
Part III. Trade Policies and Practices by Meas ure: (4) Measures Affecting Production and 
Trade; (iv) Government Procur ement: paragraph 71, page 46: 
The Secretariat report states that "it is unclear  whether preferences are granted to nationals".  
12. Could Mozambique please clarify whether in practice national bidders are granted a preference? 
Yes, regulations establish pref erence margins for national compe titors. The following preference 
margins are applied to national competitors: 
 
10% for public works tenders 15% for goods and services tenders  Under the terms of paragraph 4 of Article 24 of th e relevant legal diploma, to benefit from these 
preferences, firms must have proof of the use of na tional factors in the production of  at least 30% 
of the goods final ex-work price.. 
Part III. Trade Policies and Practices by Meas ure: (4) Measures Affecting Production and 
Trade; (iv) Government Procur ement: paragraph 71, page 46:  
The Secretariat report states that, "the Administrativ e Tribunal is the judicial instance responsible for 
disputes on procurement." 
13. Could Mozambique please clarify the roles of the Administrative Tribunal in relation to the 
UGEA/UFSA? 
The role of the Administrative Tribunal is to deci de on the go ahead on sel ected proposal by UGEA. 
UFSA is the UGEA supervisory entity.      
14. Would a dissatisfied bidder have to contact the la tter agencies prior to submitting a complaint to 
the Administrative Tribunal? 
The applicable regulation  does provides rights to  unsatisfied bidders to inform UGEA and the 
contracting authority about its intention to impeac h  the decision taken by UGEA, or to use any 
processual guarantee.  However, for such impeachmen t to have an immediate effect it is necessary 
that unsatisfied bidders communica te to all interested parties. 
Part IV. Trade Policies and Practices by Sector: (2) Agriculture and Related Activities; (iv) 
Fisheries and aquaculture: paragraph 29, page 57: 
The Secretariat report refers to the regulatory framework for aquaculture. 
15. Would Mozambique please provide Ca nada with details with respect  to the regulatory framework 
that governs aquaculture and aquaculture activities?  
The regulatory framework that governs aquaculture is the Decree N
o 35/2001 of 13th November. 
According to this regulation, marine aquaculture ac tivities are restricted to application of extensive 
and semi-intensive systems. WT/TPR/M/209/Add.1 
Page 8  
 
 16. Could Mozambique please provide information on th e regulations that place restrictions on the 
importation of live animals to be used in aquaculture 
Restrictions on import of live animals for aquacultu re are provided for in the Article 9 of Decree N
o 
35/2001. According to this article, the import of live animals is subject to prior approval by the 
Minister of Fisheries. According to the same arti cle, the Ministry of Fisheries is to publish a 
“negative” list of species, subject to periodic review. 
Part IV. Trade Policies and Practices by Sect or: (3) Mining, Energy and Water; (i) Mining, 
petroleum and natural gas: paragraph 36, page 60: 
17. Can Mozambique advise whether other potential mini ng projects (i.e., coal) are also planned to be 
carried out under the IFZ regime? 
There are no mining projects carried out under IFZ regime. However, the Government is planning 
to create new IFZ which may cover potential mining projects. 
Part IV. Trade Policies and Practices by Sect or: (3) Mining, Energy and Water; (i) Mining, 
petroleum and natural gas; (a) Mining; paragraph 38, page 60:  
18. Is a mining company required under the Mining Code  of 2002, its regulations of 2006, or any 
other legislative or regulatory framework, to make social investment or equity sharing 
arrangements with local partners?   
The implementation of the social investments is not compulsory by law. In some cases they are 
proposed by the investor or by concessionaire as go od will to cooperate with the communities in the 
areas where they operate. In case of competitive tenders launched by the Government, the 
implementation of the social projects may be an  item subject to the evaluation of the proposals.  
Part IV. Trade Policies and Practices by Sector : (3) Mining, Energy and Water; (i) Mining, 
petroleum and natural gas; (a) Mining; paragraph 38, page 60:  
Canada understands there have been informal discu ssions in Mozambique about the possibility of the 
federal government requiring a greater than 50% equi ty position in some high value minerals projects 
(e.g., diamonds).   
19. We would appreciate if Mozambique could comment on whether it is considering such a 
requirement. 
There’s no such requirement, as it is stated. In  some cases it was agreed between the Government 
and the concessionaire a State participation in the range from 5% to 10%. 
20. If 'yes', how does Mozambique foresee such a requi rement contributing to the country's capacity 
to attract more foreign direct investment into the mining sector? 
N/A 
Canada understands that the Northern part of Mo zambique has been extensively mapped over the past 
decade.   
21. Are there strategies in place to communicate the re sults of the mapping to the international mining 
community to increase opportunities for investment?  WT/TPR/M/209/Add.1 
 Page 9 
 
 
 Information is available at the Ministry of  Mineral Resources, and can be accessed on 
www.mirem.gov.m. Additionally, ge ologic maps can be sent by carrier, subject to payment. 
22. Are there plans to map other areas of the country and,  if so, what is the timetable for this activity? 
There are currently no firm plans, but it is intended  to cover other areas with the maps at the scale 
of 1:50,000 
Part IV. Trade Policies and Practices by Sect or: (3) Mining, Energy and Water; (i) Mining, 
petroleum and natural gas; (a) Mining; paragraph 42, page 61:  
The Secretariat report notes that, “The Bank of Mozambique regulates the commercialization of 
gold”. 
23. Can Mozambique please explain what is meant by "commercialization of gold"?  
“Commercialization of gold” means trade of gold. 
24. Can a concession holder (min er) export gold production? 
The export of gold requires the approval by the Central Bank of Mozambique.  
25. Can a holder of a title /miner/producer export gold bullion in the form of doré bullion or refined 
metal? 
Except for gold as stated in answer 24,  any title/producer can export refined metal  
IV. Trade Policies and Practices by Sector: (5) S ervices; (ii) Telecommunications and postal 
services: paragraph 68, page 70:  
The Secretariat report notes that the Instituto Nacional das Comunicações de Moçambique  (INCM), 
established in 1992, is the independent regulator fo r telecoms and is under the technical responsibility 
of the Ministry of Transport and Communications (MTC). 
26. Could Mozambique provide further information on measures in place to ensure that the INCM is 
separate from, and not accountable to, any supp lier of basic telecommunications services?  
INCM was established under the Decree No. 22 of  1992 as Independent Communication Authority 
Body, so, not accountable to any supplier. 
IV. Trade Policies and Practices by Sector: (5) S ervices; (ii) Telecommunications and postal 
services: paragraph 68, page 70:  
The Secretariat report notes that a new telecommunications law was adopted in 2004. 
27. Could Mozambique provide information on wh ether the telecommunications law of 2004 
addresses the telecommunications regulatory best practices set out in the Basic Telecommunications Reference Paper? These relate to: prevention of  anti-competitive practices by major suppliers; 
interconnection with a major supplier; public av ailability and transparency of procedures for 
interconnection; recourse to an independent domest ic body for resolution of disputes with a major 
supplier; public availability of licensing criteri a; and independence of the telecommunications 
regulatory body.   WT/TPR/M/209/Add.1 
Page 10  
 
 Yes, the telecommunication law of Mozambique  is aligned with the basic telecommunication 
reference paper and respond in full to preventi on of anticompetitive practices by the major 
suppliers; interconnection with major suppliers, pub lic availability and transparency of procedures 
for interconnection; recourse to any independent body for dispute resolution; public availability 
licensing criterion and independence of telecommunication regulatory body.  
Part IV. Trade Policies and Practices by Sector: (5) Services; (iv) Tourism: paragraph 80, page 
74: 
The Secretariat report notes that barriers to tour ism development in Mozambique include expensive 
intercontinental air fare, limited internal trans port services, and other onerous visa requirement.  
28. Is Mozambique taking any steps to reduce these barriers? 
 
There are few companies operating in  this area and limited connectivity makes tariffs and services 
relatively higher compared to other parts of the wo rld. One solution for the reduction of tariffs is 
the creation of conditions for entry of more air companies in the market as well as the 
modernization of the airport infra-structure.  
 
The Government of Mozambique approved in D ecember in 2007 a set of measures aimed at 
bringing reforms to the civil aviation sector. These reforms entail, among other things, introduction of the 5
th Air Freedom in intercontinental rout es, where there are rights for the 3 th and 4th Air 
Freedom. Related to the Visa, it can be obtained by applicant at the entrance post. 
 
Part IV. Trade Policies and Practices by Sector, (5) Services; (iv) Tourism: paragraph 83, page 
76.  
The Secretariat report notes that vehicles used for the transportation of tourists in Mozambique are 
required to be in perfect condition.  
29. Could Mozambique explain how perfect condition  of vehicles is being determined? 
All vehicles used for transportation of passengers n eed to meet the provisions of the Regulation of 
Automobile Transport (RTA). Perfect conditions  respects essentially the safety concerns.   
 
III. ADVANCED QUESTIONS BY CHINA 
 
ECONOMIC ENVIRONMENT  
Question 1   
 Much of the information contained in the Secret ariat Report and the Government Report describes 
economic situation before the intern ational financial crisis spread to real economy and thus evolved 
into a global economic crisis. Where economic ou tlook for 2010 and 2011 was discussed, the crisis 
were not well factored in. In view of this,  
 
Could the Delegation of Mozambique please shed some light on whether and how its economy 
has been affected by the globa l financial and economic crisis? 
  WT/TPR/M/209/Add.1 
 Page 11 
 
 
 In general the Mozambican economy  has been affected by the gl obal economic crisis due to the 
opening level of the financial market. However, the government is thriving to control potential 
negative effects of the financial crisis.   The export companies become especially more vuln erable to the crisis due to the reduction of the 
external demand. This is particularly the case of MOZAL, the Mozambique Aluminium Smelter 
and Arcelor Mittal, the steel and metallurgic in dustry. Other industries are suffering secondary 
effects of the crisis, are those which provid e goods and services to the export companies. 
  Enterprises producing for the domest ic market have still not been a ffected by the crisis, as the 
trickledown effect is still in its first stage. 
 The Government of Mozambique set up an int er-ministerial committee to address the crisis. The 
group takes concerted actions on how to respond to the crisis and produce recommendations to the 
government. The actions to address the crisis include to look on new export markets for the affected 
enterprises and to support new projects with immediate impact on the economic growth.  
Potential acts of crisis transmission for Mozambique
 
 The crisis impact in Mozambique may result mainly  from the current economic slow down in the 
developed countries, being transmitted through: 
 
a) Reducing the foreign trade and the falling price of domestic exportation; b) Reducing the external direct investment flow  c) Reducing the external aid flow and; d) Reducing the emigrant remittance 
 
REPORT BY THE SECRETARIAT 
III. TRADE POLICIES AND PRACTICES BY MEASURE  (4)  MEASURES AFFECTING PRODUCTION AND TRADE 
 
Question 2 (Paragraph 64) 
 
“Mozambique has not made any notifications to  the WTO concerning state trading enterprises 
within the meaning of Article XVII of the GATT; th ere do not appear to be state-owned enterprises 
with exclusive trading privileges.” 
 
Could the Delegation of Mozambique please confir m whether it has any state trading enterprise 
within the meaning of Article XVII of the GATT? 
 
Mozambique does not have any State trading Ent erprises with exclusive privileges within the 
meaning of Article XVII of the GATT. Mo zambique does have pu blic enterprises. 
  
    
 
   WT/TPR/M/209/Add.1 
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 IV. ADVANCED QUESTIONS BY EUROPEAN COMMUNITIES 
 
WTO Secretariat's Report 
II. TRADE AND INVESTMENT REGIME 
(3) TRADE AGREEMENTS AND ARRANGEMENTS 
(ii) Regional trade agreements 
Page 18, paragraph 27  
Question 1 
 
Mozambique and the EC agreed an Interim Econo mic Partnership Agreement (EPA) at the end of 
2007, while negotiations towards a full EPA continue. In this context, we invite Mozambique to 
outline how it intends to implement the commit ments it has undertaken in the Interim EPA. 
Specifically, could Mozambique comment on the following points:  
a) Will the implementation of these commitments require an adaptation of SADC Trade 
Protocol? 
 
No. The implementation of these commitments will not require any adaptation of SADC Trade 
Protocol. One of the objectives of EPA is to reinforce the regional integration process.  
The SADC Trade Protocol is a le gal instrument for the elimination of tariffs and technical barriers 
to trade as well as for trade facilitation in the reg ion. This instrument anticipated the creation of a 
Free Trade Zone by 2008 and this was achieved and this Protocol was notified to the World Trade 
Organization. 
 
The process of regional integra tion foresees a deeper integration, which will culminate with a 
Monetary Union. Each integration phase would req uire a revision of some EPA provisions to be 
aligned with the system in the region, being Customs Union, Monetary Union, etc.     
b) What is Mozambique’s assessment of its admini strative capacity to implement the Interim 
EPA? 
 
For Mozambique this is a new process and it represents  a new challenge; we need to set up internal 
mechanisms to implement the interim EPA. To succeed in administrating the EPA implementation 
we need technical assistance for legal framework in all area and in particular in the area of 
services. We need capacity building for the implem entation and control of rules of origin.  
 Financial assistance to the SME’s in order to in crease productive capacity and financial assistance 
to our bureaux of standards for impl ementation of international standards. 
 
c) Does Mozambique anticipate a need  for specific transition periods? 
 
In relation to the Interim Agreement covering good s, this was signed in 2007. In its offer 
Mozambique liberalizes equipment and raw material  from the date of entry into force of the 
agreement and there is a group of products for wh ose liberalization was requ ested for a period of 
15 years to be completed. The remaining pr oducts are not covered by the Agreement. 
 
d) What type of assistance does Mozambique expect to require in this regard? 
  WT/TPR/M/209/Add.1 
 Page 13 
 
 
 Trade in goods: 
• Capacity-building of export-orientated industrial enterprises 
• Capacity-building in various areas related to industry and trade and  trade negotiations 
• Support for monitoring of the implementation of the EPA 
• Financing for the establishment of a centre for testing and packaging 
 Trade in services: 
• Capacity-building in trade negotiations 
• Sectoral studies to allow the evaluation of trade flows and Mozambique’s competitive areas 
• Support in the development of new legislation 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  MEASURES DIRECTLY AFFECTING IMPORTS (iii)  Rules of origin  Page 31, paragraph 16 
 Question 2 
In paragraph 16  Mozambique states that it does not use any national rules of origin for non-
preferential purposes. However, in paragraph  36 on page 38  (Prohibitions, quantitative restrictions, 
and licences), it is indicated that Mozambique "prohibits, inter alia,  the importation of […] goods 
bearing false indications of origin." Moreover, in paragraph  46 on page 40 ("Packaging, marking, and 
labelling") it is said that "labelling requirement s apply to imported products. For example, pre-
packaged foods must be labelled [ ...], indicating the origin," etc. 
Could Mozambique indicate how "origin" is determined in both cases? 
 
Mozambique does not use any rules of origin for non-preferential purposes - everyone is entitled to 
export goods to Mozambique under the MFN tariff, he nce there is no need to determine origin for 
customs purposes. 
For purposes of consumer protection, Mozambic an law also requires that inter alia pre-packaged 
foods display their origin. This is not origin in the customs sense (i.e. meeting a threshold of value-
added in a preference-qualifying territory) and has no bearing on the goods' tariff treatment. 
For preferential trade purposes Mo zambique follows the rules agreed with SADC and (shortly) the 
EU respectively to determine origin. It prohibits go ods bearing false indications of origin because 
this would undermine these trade agreements.  
(4)  MEASURES AFFECTING PRODUCTION AND TRADE 
(v)  Protection of intellectual property rights (IPRs) Page 46 
 
Question 3   
The Secretariat’s Report makes no mention of the issues of plant variety protection. 
 
a) Could Mozambique outline the current national provisions in this area? 
 
Mozambique has approved norms and standard fo r plant variety protection under decree 158/2006, 
with the main objectives to protect breeder rights  and stimulate research and plant breeding in the 
country. Mozambique currently is preparing th e legal and institutional framework for its WT/TPR/M/209/Add.1 
Page 14  
 
 implementation. Nonetheless, for registration of new varieties Mozambique  has been following 
International Standards under UPOV.  
b) Does Mozambique envisage joining the Intern ational Union for the Protection of New 
Varieties of Plants (UPOV)? 
 
As of now Mozambique has not taken yet any deci sion regarding to joining to the Union for the 
Protection of New Varieties of Plants (UPOV). However, at regional level, a protocol on plant variety protection has been approved and a regiona l catalogue of new plant varieties developed, 
with the aim of facilitating the movement of new vari eties of plants in the region.  Both instruments 
are based on UPOV standards.  
 IV.  TRADE POLICIES BY SECTOR 
(5)
  S ERVICES  
(iii)  Transport   
Question 4 
 Could Mozambique comment upon any existing plan s for improving and expanding its port capacity? 
 
The development of ports infrastructures follows  the development master plan developed by the 
Government, based on demand and availability of financing.  The main ports (Maputo, Beira, Nacala and Quelim ane) are under concession to the private sector. 
According to concession contracts, these ports are being expanded. The Mapu to port, for example, 
there was built a vehicle terminal. The Maputo por t is operating within the existing capacity and 
equipment. A construction of an iron and chrome te rminal is in its phase two. There was also built 
a granite terminal. A terminal of coal and ma gnitude will be built, and for this end, the 
concessionaire company is mobilizing financial resources.  
As of Beira port, the expansion is underway; the government has launched a tender for dredging 
the channel for very big vessels and acquisition of the oceanic dredge to be received in 2011. The 
proposals received of the tender will be opened on 24
th April 2009. The plan includes also the 
building of a terminal for coal, and was constructed the terminal of cereals.  
As of the Nacala Port, it is in the phase of conclusion of the terminal of cereals. 
 For the case of Quelimane port, was recently concluded its rehabilitation and dredged.  
 
V.  ADVANCED QUESTIONS BY JAPAN  
The Secretariat Report (WT/TPR/S/209) 
II.  TRADE AND INVESTMENT REGIMES 
(2)  POLICY OBJECTIVES 
 
Question 1: page 13-14, paragraph 9-12 
According to the Secretariat report, the Governme nt Five-Year Plans (PARPA II) revises the content 
of Mozambique’s Trade Policy and Strategy (TPS), adopted in April 1999.  
 Please explain more about how the Government deals with its trade policies in this Five-Year Plan. 
  WT/TPR/M/209/Add.1 
 Page 15 
 
 
 The Action Plan for the Reduction of Absolute Poverty (PARPA II) did not revise or change the 
Mozambique’s Trade Policy and Strategy (TPS), adopted in April 1999 which is still in force. 
Although PARPA emphasizes the need to promote the development of trade and market network, 
the commercial sector is reflected in PARPA as a relevant sector for growth and poverty reduction. 
Trade policy objectives set out in PARPA are focuse d on the goal to improve the condition in which 
economic activities are op erated in Mozambique.  
 
In terms of implementation, TPS has been translat ed into Sectoral Action Plans, which in turn 
have been reflected in the annual activit y plan, of each of concerned sectors. 
 
(4)  INVESTMENT REGIME 
(ii)  Institutional and legal framework 
 
Question 2: page 21-22, paragraph 40 
The Secretariat report states, ‘the new Labour Law continues to restrict the hiring of foreign staff, 
providing for maximum quotas according to the number  of employees’ and also explains, ‘hiring of 
foreign staff in excess of these quotas must be appr oved by the Ministry of Labour, and foreign staff 
may only be employed if there are no Mozambicans qualified for the job, or if there are not enough 
with the required skills’.  Please indicate specific plan to address the difficulties in obtaining work permission of foreign staff in 
Mozambique, provided that there increases concer ns about adverse impact on increasing FDI and 
inviting industries from other countries. 
 
The Government has approved a law,  which defines quota system to hire foreign staff. We are in 
process of preparation of regulations for the implementation of this law. Regarding the 
Information referred to in the Secretariat Report, we would like to point out that all projects 
approved by the Government with specific provisio ns of foreign labour, do not require any work 
authorization apart from a formal communication to  the Ministry of Labour within 15 days of 
arrival of the foreigner employee.  
(iv)  Bilateral agreements on investment promotion and protection 
Question 3: page 23, paragraph 45 
According to the Secretariat report, Mozambique has concluded 22 agreements for the reciprocal 
promotion and protection of investments, which have  been ratified by the Council of Ministers and 
are in force. 
 (1) Please provide information on b ilateral agreements on investment which have been signed but not 
been in force, or which are still under negotiations. 
  
All the 22 agreements are in force .  
 
(2) If there are bilateral agreements on investment which have been signed but not been in force,  
Please explain the reason for that. 
 
We signed one with India in February 2009, but still in process of being ratified by both sides. 
 
 
  WT/TPR/M/209/Add.1 
Page 16  
 
 IV.  TRADE POLICIES AND PRACTICES BY SECTOR 
(2)  AGRICULTURE AND RELATED ACTIVITIES (iv)  Fisheries and aquaculture  
(v)  Forestry  
 
Question 4: page 57-58, paragraph 28, 33 
Japan is of the view that licensing and surveilla nce systems are indispensa ble to the sustainable 
management of fishery and forestry resources.  
In this regard, please explain specific measure take n by the Government of Mozambique to fight 
illegal fishing and logging.  
To fight illegal fishing:
 
 Mozambique Fisheries Sect or has adopted a National Plan of Action to fight against IUU (illegal, 
unreported, unregulated) fishing activities. Un der this plan, a number of actions are under 
implementation, including:   
• Monitoring: A satellite based vessel monitoring  system (VMS) has been established and in 
operation. As we are on early stage of implemen tation of this technology, this is combined 
with the traditional system of onboard observers in  order to secure reliability of the process. 
• Control: Regulatory framework is being developed and harmonized with regional and 
international concerned legisla tion. The fisheries law, of 1990 (Lei 3/90), is under revision; 
a new Maritime Fisheries Regulatio n was approved in 2003 (Decree N
o 43/2003 of 10th de 
December); and Management Plans are being fo rmulated for the main fisheries: shrimp, 
line fishing and kapenta fisheries. The Ministry of Fisheries is also in process of formulation of fisheries MCS (Monitoring, Co ntrol and Surveillance) Policy and Strategy. 
• Surveillance: Mozambique has taken an importa nt step forward with recent acquisition of 
patrol vessels for fishing surveillance; Capacity  building of surveillance bodies deployed 
through most critical points along the coast is  also ongoing, consisting of training and 
provision of adequate equipment. 
On the other hand, there is cooperation with regional  organizations for vessel certification prior to 
licensing for fishing activities, in order to prevent IUU fishing; 
 
To fight illegal logging:
 
 A legal framework on forest harvesting patrolling is  in place and being implemented by the forest 
body. Agreement with the Ministry of Home Affai rs on these issues is one way to fight illegal 
logging. The sector responsible for forest management  is working closely with customs at the major 
border posts (ports).  
(3)  Mining, Energy and Water  
(i)  Mining, petroleum, and natural gas 
 
Question 5: page 60, paragraph 38-43 
The Secretariat report states that under Mozambi que’s mining regulations , foreign and national 
persons may apply for licences to engage in rec onnaissance, or prospection and research, and may 
obtain mining concessions.  Maximum time limits for title validity are set down in the regulations: up 
to two years, non-renewable for reconnaissance; and five years, renewable once for prospection and  WT/TPR/M/209/Add.1 
 Page 17 
 
 
 research. The time limits are set out in the mining concessions and certificates; they depend on the 
project, but are renewable.  Please explain specific legal grounds for the revocati on, and the rejection of the renewal, of the 
mining concessions and licenses to engage in prospec tion and research. In addition, Japan would like 
Mozambique to indicate its improvement in the a bove mentioned practices with which some of the 
Japanese companies in Mozambique have complaints.  
The main grounds for the revocatio n of the licenses or concessions are the no fulfillment of the 
work obligations stated on the mining title or default in the payment of taxes.  
No specific complains were indicated and that Japanese companies have, but we recommend that 
those companies with complain s should present them to the to the Mining Authorities.  
 VI. ADVANCED QUESTIONS BY KOREA 
 Question 1 : Secretariat Repor t, page 20, paragraph 33 
 
The Secretariat report states that despite the effo rts of the government of Mozambique to improve the 
investment environment, investors still face many hurdles. 
1) What is Mozambique’s view on the Secretariat’s statement?  
2) What measures are being contemplated to enhan ce the investment environment of Mozambique? 
 
It is to acknowledge that there is still room for improvements relative to business environment. That 
is why a new strategy in this context was approved in February 2008. In this line, for instance, the Government has recently abolished the minimum cap ital deposit requirement conditioning the start 
up of a business, and efforts are being done with the private stakeholder’s organizations to identify 
and remove  other barrier that can constitute an impediment for a better business environment. 
 
Question 2 : Secretariat Repor t, page 20, paragraph 34~35 
 Paragraphs 34 and 35 of the Secret ariat report details the functions  of the "Investment Promotion 
Centre (CPI)."  
1) Could Mozambique further elaborate on the investment promotion functions of CPI? 
 
Functions of the CPI: in accordance with Article  4 of the Regulation of the Investment Law (law 
no 4/93, 24 June) the CPI co-o rdinates the processes of promotio n, analysis, monitoring and 
verification of investments carried out under the provisions of that law and the respective 
Regulation.  In practice, apart from the functions referred to above, the CPI provides institutional assistance to 
investors (regardless of their nationality, that is , nationals and foreigners) in mattes related to: 
• the register of companies 
• land usage rights 
• entry visas 
• licenses and permits 
• work permits (for foreign workers) 
• residency documents (for foreigners) 
• assistance in the process of importing equipment 
• general advice to investors 
 WT/TPR/M/209/Add.1 
Page 18  
 
 Beyond this, the work of the CP I also includes the identification of opportunities for investment in 
the various sectors and equally the identificatio n of business opportunities for national SMEs 
arising from the mega-projects. 
 
Paragraph 35 states that CPI is financially autonom ous and thus charges investors for its services.  
 
2) Could Mozambique elaborate on the fees that the CPI charges to investors? Does the fee vary 
upon the size of the investment or the type of investment? What criteria are used?   
 
The CPI is authorized to charge a fee for the pr ovision of services to investors. The authorized fee 
is five per thousand (0.5%) of the value of the in vestment. However, the fee which is being applied 
is one per thousand (0.1%) and with a maximu m limit of US$ 50 000. No additional fees are 
applied in relation to any of the services listed above. 
 
3) In para 35, it states that investors “consider th e procedure too cumbersome and costly.” What is 
Mozambique’s view on this comment? What measur es, if any, are being taken to expedite the 
procedure? 
 
Although the question does not specify the type of  problems faced by the investors, it should be 
noted that concerns of this matter are being add ressed in the context of improvements on business 
environment. 
 Question 3 : Secretariat Repor t, page 21, paragraph 37 
 
1) Has the government of Mozambique been a part y to a dispute referred to ICSID, or the 
International Chamber of Commerce? 
 Article 25 of the Investment Law shows the m echanisms of the ICSID and the International 
Chamber of Commerce for the resolu tion of possible disputes. Up to now there is no record of any 
case which was taken to these bodies.  
2) If yes, could Mozambique elaborate on the case(s)? 
 
N/A 
 
Question 4 : Secrétariat Repor t, page 21, paragraph 38 
 
1) Could Mozambique explain what form of incorporation “LDA” is? 
 
“LDA” relates to the type of companies with limite d number of shareholders. In these corporations 
the social capital is divided amongst identifiable number of shareholders, differing from “SA” or 
anonymous type of corporations.    
2) How long does it normally take to incorporate a company in Mozambique? 
 
It is possible for anyone to set up a company in just one day 
 
Question 5 : Secretariat Repor t, page 64, paragraph 53 
 
Mozal’s success story is exemplary. In this context, could Mozambique further elaborate on how the Mozal project was conceived and implemented? In pa rticular, my delegation would be interested to 
know the following:   WT/TPR/M/209/Add.1 
 Page 19 
 
 
 1) How the project was first conceived. By whom? (Why aluminium? Why not any other product?) 
 
To locate the project in Mozambique, the sha reholders have looked into different alternatives and 
better opportunities in Mozambique as well in the re gion. The final decision was taken based in the 
following main factors: I) rail and port infra-stru ctures; II) availability of electrical energy from 
South Africa at a competitive low cost; III) An attractive Industrial Free Zone; IV) Mozambican 
commitment to attract this investment; and V) Pr eferential market access to the EU free of duties 
and quotas. At the time there was a huge demand of aluminium in the international market. 
 
2) How financing issues were taken cared of?    
Apart of they own resources, the shareholders used foreign financing. In the case of Mozambique, 
the State used a loam from the European Bank of Investments. 
 
3) What infrastructural issues needed atte ntion, and how were they taken cared of?  
 
At the time of approval of this project there were no  adequate infrastructures in the area where it is 
located. In this regard, it was necessary to bu ild access roads to the site; to build water infra-
structures; construction of power lines; and cons truction of a dedicated port terminal. All these 
infra-structures were developed in joint effort  between the Government and the investors. 
 4) Under what terms are the products produced by Mozal exported to the EC? That is, what kind of 
preferential treatment is provided by    the EC to Mozal and its products?  
 
All aluminum products are exported under EBAs.  
 5) What are the future plans of Mozambique for Mozal? Expansion plans?  
 
Mozal has been one of the most profitable alumin ium smelters in Africa and has therefore planned 
further expansion. However, the construction of Moza l 3 is pending on the availability of electrical 
power. It is estimated that the expansion plans ca n only be realized in 2014-2018, if and when new 
power plants are built in South Africa or Mozambique. It will also depend on the price 
improvement of aluminum in the international market. 
 
6) In light of Mozambique’s considerable mineral resources, what other projects (in the size and 
scale of Mozal) is being contemplated by Mozambique ?  
   
There are some projects of large dimension for po ssible implementation in a short term and related 
to coal exploitation and installation of thermal power stations for energy production.  Meanwhile, 
there is a considerable research on other mineral resources such as petroleum, gas, ferrous, uranium, and bauxite, among others.  
 
 
 
    
 
    WT/TPR/M/209/Add.1 
Page 20  
 
 VII. ADVANCED QUESTIONS BY UNITED STATES 
 WT/TPR/S/209  
III. Trade policies and practices by measure  
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(ii) Customs procedures, and valuation  
 
Page 30, paragraph 13: According to the Secretar iat, “Certain goods are subject to mandatory pre-
shipment inspection (PSI).1  First introduced in 1998, PSI is provided exclusively by Intertek, under a 
contract expiring in 2009.  The contract covers PSI, training, and support to seven customs offices in 
Mozambique.  Since 2003, PSI applies to a "positiv e list" of products, which the Government is 
reducing progressively.”   Does the PSI “positive list” preclude from inspection exports originating in certain countries and not 
in others?  
 
No. All goods in the positive list are subject to p re-shipment Inspections regardless their country of 
origin.  
Does Mozambique intend to renew its PSI contract with Intertek?   
One of the components of this contract is to build national capacity inside the Customs so they 
perform inspection themselves.   
 
Does the government of Mozambique have a stra tegy or end-date for phasing out pre-shipment 
inspection entirely? 
  
The Government is creating capacity and conditions  in order to have goods inspected locally  
 
The Secretariat’s report provides the link to Intertek ’s website where the PSI guidelines can be found.  
Can importers and foreign exporters find a link to the guidelin es on Mozambique Customs’ website? 
 
Yes, through the following site: 
www.at.gov.mz  
 
The Intertek website identified in the Secretariat’s report states that “[t]he customs valuation or price 
verification undertaken by Intertek seeks to determin e whether the price being charged by the Seller, 
as declared to us in the pro-forma invoice, corr esponds within reasonable limits with export prices 
generally prevailing in the country of supply.”  Please explain how this process complies with Mozambique’s obligations under the Customs Valuation Agreement. 
 
What Intertek is doing is to use the provision started in the Article 17 of the Customs Valuation 
Agreement. 
 The Secretariat’s report states that the Intert ek Pre-Advice Form (PAF) must be supplied to 
Mozambican Customs for all imports subject to inspection.  How does Customs use the PAF in 
determining which goods will be  subject to inspection?  
 The selection of goods to be inspected is not det ermined by PAF. The PAF or Pre-Advice Form is 
an internal INTERTEK form, which must be f illed in by the importer when the goods being 
imported appear in Positive List which is pu blished by Customs of Mozambique. Only goods 
appearing in this Positive List are subject to inspection.  
                                                     
 
1 Ministerial Diploma No. 19/2003 of 19 February 2003.  WT/TPR/M/209/Add.1 
 Page 21 
 
 
 Page 31, Paragraph 14:  What pe rcentage of goods imported into Mozambique does Customs inspect? 
 
The percentage of goods imported into Mozambiq ue in 2007 and inspected by the Customs was 
10.4%. 
 
(iv) Customs duties 
Page 32, paragraph 20/ Table III.1:  In the Secretariat’s report, Table III.1 indicates that “other” 
customs revenue rose from about 1% of total cu stoms revenue before 2005 to over 10% in 2006 and 
2007.  Please identify the source(s) of this “other” revenue.  The source of other revenues includ es “Consumer Taxes” and fines. 
 (v) Prohibitions, quantitative restrictions, and licences  
Page 38, paragraph 36:  It appears that Moza mbique has never submitted its import licensing 
notifications, as prescribed by the Agreement on Import Licensing Procedures.  When does 
Mozambique intend to notify its legislation and circulate responses to the Questionnaire on Import 
Licensing Procedures?  
In this particular case, in 2003 Mozambique submitted a preliminary draft which was then 
returned for further clarification and translation of  national legislation into English. But due to 
lack of internal capacity and external a ssistance, this process was not completed. 
 
Regarding the Questionnaire on Import Licensing Pr ocedures, we hope to circulate its responses 
shortly. 
 
(vii) Sanitary and Phytosa nitary (SPS) measures  
Page 40, paragraph 44:  Please indicate how Mozam bique incorporates regionalization into its SPS 
measures.  
Creating disease free areas for animals and plants, following international measures (OIE, IPPC).  
 
Page 40, paragraph 45:  Why and on what basis does the government of Mozambique prohibit imports 
of “genetically modified” seeds? We note that Mo zambique has not notified this prohibition to the 
WTO. Has the Mozambique government put into place a measure banning the importation of seeds? How does the government justify this ban in light of its WTO obligations?    
The Government of Mozambique does not prohib it or ban importation of Genetically Modified 
Seeds. 
 Under the UN Biodiversity Conven tion Mozambique has developed a bio-safety regulation decree 
6/2007, which restricts importation of GMO seed. Im portation of GMO is subject to prior approval.  
 
(3) Measures Directly Affecting Exports 
(vi)  Industrial Free Zone (IFZ) regime 
 
Page 42, paragraphs 56-59:  Is th e IFZ open to all industries and/ or sectors? Do the IFZ incentives 
differ between industries or sectors? If so, please explain.  
Is the IFZ open to all industries and/sectors?  
 
The IFZ is open for all industries, except for army industries  WT/TPR/M/209/Add.1 
Page 22  
 
  
Do the IFZ incentives differ between industries or  sectors? If so, please explain. The incentives 
for free trade zones are si milar for all industries 
 
The incentives for free trade zon es are similar for all industries 
 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(v) Protection of intellectual property rights (IPRs) 
 
Enforcement  
 
Page 48, paragraphs 79-82:  Paragraphs 79-80 of the Secretariat’s report describe the mechanism for 
handling the enforcement of industrial property ri ghts that includes counterfeit products.  Please 
clarify whether Mozambique's copyright regime c ontains a similar mechanism for handling copyright 
infringement, in particular copyright piracy. Please al so describe the relevant enforcement procedures 
and available remedies, and identify the governme nt entities responsible fo r the enforcement of 
copyrights.  
Mozambique's copyright regime contains a similar mechanism for handling copyright 
infringement.  
The enforcement of copyrights and related ri ghts are in the legislation approved by the 
Government, Law 4/2001, dated February 27. This la w defines administrative and judicial means 
and mechanisms, which can be taken in case of viol ation of copyrights and related rights. For an 
effective implementation of such means and m echanisms the Government is still has to approve 
regulations for each one of the copyright area, namely for phonograms, audiovisual, literary and 
art works, among other creative arts. 
Nevertheless, some administrative actions to fight ille gal use of copyrights and related rights   have 
been taken, in ad hoc basis, by the Customs Au thorities and by the police, which consist in 
confiscating and destruction of illegal copies. 
In Mozambique, t he administration of copyrights and relat ed rights is under  the Institute for 
Book and Records (Instituto Nacional do Livro e do Disco-INLD) and the National Institute for Cinema and Audio-Visual (Instituto Nacional do Cinema e Audiovisuais- INAC)  
Additional question 
Page 40, paragraph 44:  According to the S ecretariat, Mozambique’s authorities observe OIE 
recommendations for all diseases.  If that is valid, pl ease explain how bans on the importation of live 
animals with regard to avian influenza, newc astle’s disease, etc. comply with international 
guidelines?  
Importation of live animals is not ban by any le gal framework; the country observes all requisites 
of OIE. Mozambique requests precise information fr om the origin of flocks regarding to the free 
from compartments of avian in fluenza, Newcastle’s disease. Regarding to other diseases the 
country may request additional info rmation for disease ri sk assessment before authorization.   WT/TPR/M/209/Add.1 
 Page 23 
 
 
 REPLIES PROVIDED BY MOZAMBIQUE  
SECOND DAY OF THE MEETING 
 
I. ECONOMIC AND INSTITUTIONAL ENVIRONMENT 
 
• Macroeconomic development in view of gl obal economic crisis and Mozambique’s 
reliance on ODA 
 
Mozambique is committed to continue implem enting its macroeconomic reforms in view of 
promoting sustainable economic growth and povert y alleviation.  Notwith standing some positive 
performance achieved the country still deeply relies on ODA. In fact, more than 50% of the State 
resource package is funded through extern al resources, as donations and credits.  
 
In general, and as it was underlined earlier, the Mo zambican economy has been affected by the global 
economic crisis due to the opening le vel of the financial market. Howe ver, the government is thriving 
to control potential negative effects of the financial crisis.   The export companies become especially more vulne rable to the crisis due to the reduction of the 
external demand. This is particularly the case of  MOZAL, the Mozambique Aluminium Smelter and 
Arcelor Mittal, the steel and metallurgic industry. Other industries are suffering secondary effects of the crisis, are those which provide goods and services to the export companies.   Enterprises producing for the domestic market have  still not been affected by the crisis, as the 
trickledown effect is still in its first stage. 
 
The Government of Mozambique set up an inter- ministerial committee to address the crisis. The 
group takes concerted actions on how to respond to the crisis and produce recommendations to the 
government. The actions to address the crisis include  to look on new export markets for the affected 
enterprises and to support new projects with immediate impact on the economic growth. 
 
Potential acts of crisis transmission for Mozambique: The crisis impact in Mozambique may result ma inly from the current economic slow-down in the 
developed countries, bein g transmitted through: 
a) Reducing the foreign trade and the fa lling price of domestic exportation; 
b) Reducing the external direct investment flow;  
c) Reducing the foreign aid flow and; d) Reducing the emigrant remittances. 
 
(ii)  Growth, poverty and supply-side constraints 
 Since its first Trade Policy Review in 2001, Mo zambique has been introducing economic reforms 
resulting in an average economic growth of 8.7% during the last three years. Despite of continuous growth, Mozambique still remains poor country. The Government has adopted an Action Plan 
(PARPA) aimed at reducing the incidence of abso lute poverty from 54% of the population in 2003 to 
45% in 2009. Unlike the PARPA I, PARPA II supports the business environment to the private sector 
through the provision of public goods. External suppor t continues to be important in the fight against 
absolute poverty.  Since 2005, the Government has been allocating funds to the districts for financing production 
projects for development of rural zones, to ensu re the distribution of income in the country. 
 WT/TPR/M/209/Add.1 
Page 24  
 
 The Government will continue to make efforts to  gradually increase the financing of State Budget 
through internal sources relatively more than ex ternal ones, and guarantee the growth of formal 
sector, widening the tributary base and reducing fiscal evasion.  Another worth highlighting action in the Mozambique  governance is the adoption in 2004 of the Law 
that fights corruption, and in 2005 the Government approved the Decree 22/2005 of 22 July 
establishing additional mechanisms to combat corruption.   Despites efforts by the government to continue to reduce absolute poverty, through an overall stable 
economic growth, Mozambique continues to face suppl y-side constraints: weak infrastructure network 
(water, energy, roads, vulnerability to natural di sasters (draughts, floods and cyclones), and access to 
financing.  
(iii) Preferential trade agreements impact on development 
 
Mozambique is a member of the Southern Afri can Development Community, a regional political and 
economic cooperation organization. The SADC regi on intends to establish a Custom Union (2010), 
Common Market (2014) and Monetary Union (2018) . In multilateral processes, Mozambique belongs 
to groups such as African Group, LDC and ACP, where coordination process is ensured through 
consultations aimed at accommodating interests of the parties. 
 
(iv) Foreign investment regime (registrations and licensing requirements; investment 
incentives, investment agreements) 
 
With regard to the foreign investment the Governme nt continues its efforts in view of improving the 
sound business environment and gradual removal of institutional obstacles that hamper investment, 
and through adoption of investment incentives and fi scal benefits. The Investment Promotion Centre 
(CPI), which was established years ago, continues its  coordination functions - analysing, monitoring 
and verification of investments. The work of the CPI also includes the identification of opportunities 
for investment in the various sectors and identif ication of business opportunities for national SMEs 
arising from the mega-projects. 
 
The CPI provides assistance to investors – nationa ls and foreigners – in matters related to: 
• the registration of companies 
• land usage rights 
• entry visas 
• licenses and permits 
• work permits (for foreign workers) 
• residency documents (for foreigners) 
• assistance in the process of importing equipment 
• general advice to investors 
 
In order to motivate and create an investment secure environment, the Government has been 
negotiating bilateral agreements on the Promotion and Reciprocal Protection of Investments and 
already concluded with 22 countries that entered into force. 
 In January 2009, the Government approved a ne w Fiscal Benefits Code, which replaces the 2002 
Fiscal Benefits Code. The main objective of the new Fiscal Benefits Code is to rationalize and make 
fiscal benefits more effective. Some elements of the new Fiscal Benefits Code are the following: 
 
• Elimination of the possibilities for excep tional authorization of fiscal incentives; 
• Introduction of fiscal incentives for indust ry and trade sector of rural areas;  WT/TPR/M/209/Add.1 
 Page 25 
 
 
 • More incentives for imported goods for tourism promotion; 
• Incentives regimes for Special Economic Zones; 
• Extension of exemptions period IRPC (Corporate Income Tax) for Free Zones to 10 years.  
  
(v) Mozambique in the WTO (effect of WTO technical assistance, including its position in the 
DDA negotiations) 
 The participation of Mozambique in the internati onal economy as well as in the WTO negotiations is 
still weak, due to the limited human resources cap acity, expertise, and lack of supply capacity. 
Mozambique has identified needs on technical assistance in:  
• Design and implementation of the single window system for international trade, including 
custom management system. 
• Design and implementation of e-taxation system , including monitoring and evaluation of the 
system. 
• Implementation of the “Authorization Economic Operation Procedures” for import and 
export. 
• Individual capacity building on auditing sy stem especially for mega-projects. 
• Implementation of “International Fi nancial Reporting Standards” IFRS.  
• Funding participation of the Capital-based offi cer in the negotiations and other WTO related 
issues in Geneva as a mean of strengthening our capacity. 
• Capacity building in organizing seminars and work-shops should include the participation of 
both Capital and Geneva-based Officers. 
• Preparation and elaboratio n of regulations on TBT; 
• Elaboration of regulations on SPS; 
• Preparation of Notifications; 
• Implementation of the Integrated Framework; 
• In addressing issues like civil aviation law and re gulations to be aligne d with International 
Civil Aviation Organization;  
• Trade Facilitation Needs Assement (TFNA); 
• Legal framework such as Competition Law,  Anti-dumping and  Safeguards measures; 
• Promote SME in order to diversify exports; 
• Strengthen suply-side capacity.  
 Aid for Trade initiatives should help to reduce supply- side constraints and ensure more participation 
of the country in the international trade system. We  expect that financial resources allocated for Aid 
for Trade should be additional and not di verted from other existing commitments. 
 
Mozambique, as an LDC and continues with limit ed financial resources to contribute for the 
organization of seminars and wo rk-shops within the current progr ammes of technical assistance 
capacity building. The burden of organizing semina rs or work-shops within the country should be 
taken into account. The country,  TRADE POLICIES BY MEASURE 
 
In this section an outline replies to questions raised  by members regarding trade policies by measures, 
include the following areas: customs procedures (rules of origin and pre-shipment inspection); Tariff 
and other charges (VAT and excise taxes); import and export licensing regime; technical regulations 
and standards and SPS regime; State-trading a nd state-owned enterprises; export promotion; 
compensation regime and regulatory framework; government procurement and; IPRs regime and 
enforcement. WT/TPR/M/209/Add.1 
Page 26  
 
 (i) Customs: modernization, PSI and rules of origin 
• The Government of Mozambique is devel oping capacity aimed at performing all goods 
inspections internally. Post cl earance audit teams have been already trained and deployed. 
Capacity building to strengthen the audit teams is still required and is undergoing. In parallel, 
software on IT is in preparation to  provide data base on Custom value. 
• The Government is creating capac ity and conditions in order to have goods inspected locally. By 
now, less than 10% of total imported goods are subject to PSI regardless their country of origin. In fulfillment of the Government commitment, th e current positive list is being progressively 
reviewed and narrowed.  
• In respect to PSI “positive list”, it should be clar ified that all goods in the positive list are subject 
to pre-shipment Inspections regardless of their country of origin. 
• Relatively to PSI contract with Intertek, one of  the components of this contract is to build 
national capacity of the Customs Services so  they can perform inspection themselves.  
• The Government strategy for the future is to create capacity and conditions in order to have 
goods inspected locally. 
• Relatively to Intertek’s procedures and their co mpliance with law, it should be noted that the 
provision are started in the Article 17 of the Customs Valuation Agreement. 
• The Pre-Advice Form (PAF) is an internal Inte rtek document for their control purposes. It is 
submitted to them by the importer when the goods ar e subject to PSI as per positive list issued by 
the government. For clearance purposes Intertek i ssues to customs a certified “DU” (Documento 
Único). 
• Importers and foreign exporters can find a link to the guidelines on Mozambique Customs’ 
website through the following site: www.at.gov.mz 
• Mozambique is using Rules of Origin only for pr eferential trade purposes. Otherwise, everyone is 
entitled to export goods to Mozambique under th e MFN tariff whereby there is no need to 
determine origin for customs purposes. 
• However, for the purposes of consumer pr otection, Mozambican law requires that inter alia  pre-
packaged foods should display their origin, but this  is not the origin in the customs sense (i.e. 
meeting a threshold of value-added in a prefer ence-qualifying territory) and it has no bearing on 
the goods' tariff treatment. 
 
(ii) Tariff and other charges (VAT and excise taxes)  
• Sources of “other” revenue refer to “Specific Consumption Taxes” on locally produced alcohol 
and cigarettes; and non- fi scal revenue (penalties). 
 
(iii) Import and Export licensing regime 
• Mozambique does not prohibit import of GMO’s. Ho wever, as a matter of procedure, prior import 
approval by the National Authority is required (decree 6/2007 of GMO’s). 
•
 The GMO regime was adopted in 2007 and it is under administration of the Ministry of Science 
and Technology. At technical level there is an inter-ministerial GMO Commission which the 
major responsibility is of screening proposals on importation of GMO and of recommending changes on the legislation as required.    
• Since the adoption of GMO regime no GMO have been approved as yet, but a request has been 
directed to the GMO Commission. The government is still to define the type of species that are  to  WT/TPR/M/209/Add.1 
 Page 27 
 
 
 be allowed to be imported and the regions in the country where those can be cultivated under 
governmental monitoring.  
• Relatively to plant protection, Mozambique has approved norms and standard for plant variety 
protection under decree 158/2006, with the main objectives to protect breeder rights and stimulate 
research and plant breeding in the country. Moza mbique is currently preparing the legal and 
institutional framework for its implementation. Nonetheless, for registration of new varieties 
Mozambique has been following International Standards under UPOV. 
• On the issue of whether to join  the International Union for the Protection of New Varieties of 
Plants (UPOV), as of now Mozambique has not ta ken any decision in this regard. However, at 
regional level, a protocol on plant variety pr otection has been approved and a regional catalogue 
of new plant varieties developed, with the aim of facilitating the movement of new varieties of 
plants in the region.  Both instru ments are based on UPOV standards.  
• Relatively to import licensing notifications, as pr escribed by the Agreement on Import Licensing 
Procedures, in 2003 Mozambique submitted a pre liminary draft which was then returned for 
further clarification and translation of national legisl ation into English. But due to lack of internal 
capacity and external assistance, this process was not taken further. 
• A questionnaire on Import Licensing Procedures has been completed and the responses will be 
circulated shortly. 
 
(iv) Technical regulations and standards and SPS regime 
• There are specific domestic laws and regulations th at need to be aligned with WTO rules and that 
would require technical assistance.  In this context, assistance will be required to address issues like TBT, SPS, Application of Anti-dumping Me asures, Law of Telecommunications, Laws and 
Regulations in the fisheries and maritime sector s to comply with United Nations Conventions on 
the Law of the See (UNCLOS); the Internationa l Maritime Organization Conventions (IMO);  
Civil aviation law and regulations to be aligned with International Civil Aviation Organization; 
Trade Facilitation Legal framework such as Competition Law, Anti-dumping and  Safeguards 
measures. 
• The priority assigned to trade and economic growth  issues in PARPA II (2006) have led to an 
increased focus on these issues. All the issues have been discussed with our cooperation partners 
with emphasis on business environment, enterprise de velopment, fiscal policy, agriculture policy, 
human capital, growth strategy on rural development. 
• Considering that many of Mozambique’s aid for trade needs could be met within existing 
mechanisms including the WTO Doha Developm ent Agenda Global Trust Fund (DDAGTF), the 
Advisory Centre on WTO Law (ACWL), the Stan dards and Trade Development Facility (STDF) 
and the Enhanced Integrated Framework (EIF), Mozambique have once approached the Advisory 
Centre on WTO Law (ACWL) in attempt to have  ACWL assisting Mozambique on legal issues. 
• Mozambique as an LDC is facing some problems in putting in place measures to overcome 
challenges with compliance to WTO TBT and SPS tr ansparency obligations, but it is developing 
efforts to build up the necessary capacity to co mply with the WTO notification obligations. 
• Relatively to measures directly affecting impor ts such as standardization, accreditation and 
certification, Mozambique has adopted a program of standardization. Under this program, by 
2008 a 107 standards had been approved and the plan  is to develop and a pprove 70 standards in 
2009 and 70 in 2010.  On the other end, Mozambique  is in the process of capacity building for the 
certification.    
• In an effort to enhance its transparency pr actices and as contracting party of IPPC, OIE and 
Codex, Mozambique have been notifyi ng for OIE and Codex Alimentarius. WT/TPR/M/209/Add.1 
Page 28  
 
 • Mozambique’s authorities observe OIE recommendations for all diseases. In this regard, 
importation of live animals is not banned by  any legal framework. However, Mozambique 
requests precise information from the origin of flocks regarding the free from compartments of avian influenza, Newcastle’s disease. As rega rds to other diseases the country may request 
additional information for disease risk assessment before authorization.  
 
(v) State-trading and State-owned enterprises 
• Under this topic it should be clarified that Mozambique does not have any State trading 
Enterprises with exclusive privileg es, within the meaning of Article XVII of the GATT. However, 
Mozambique does have public enterprises. 
 
(vi) Export promotion 
• Industrial Free Zone (IFZ) regime is open for all industries, except for army industries. 
• The incentives for free trade zones are similar for all industries 
 
(vii) Competition regime and regulatory framework 
Mozambique envisages furthering improving transparen cy by developing a competition policy. In this 
regard and with donors support Mozambique has finalized and approved its  competition policy and 
drafted the law of competition. The law of comp etition has been submitted to the Parliament for 
approval. 
Based on the SADC recommendations in the context of  regional integration, all SADC member states 
are to adopt laws of consumer’s protection. In  this regard, Mozambique has also drafted its 
consumer’s protection law which is now  for approval by the Parliament. 
On the other end, for the administration of compe tition matters, there are plans to establish a National 
Authority for Competition. Assistance is required for the implementation of this plan. 
 
(viii) Government procurement 
• Mozambique adopted its Procurement Regulations  in 2005 (Decree no 54/2005, of 13 December), 
establishing the legal framework for contracting public works and the supply of goods and 
services to the government. 
• The general assessment by the end of 2008 was th at the Regulation was applied with increasing 
consistency, considering the most recent evalua tions by the PEFA for acquisitions (indicator PI-
19) published in 2008 which raised the country's classification from C to B. 
• In 2008 the UFSA, with the support of developm ent partners including the World Bank, the 
groundwork was put in place for the establishment of a system of monitoring and evaluation of 
the performance of public acquisitions. This exerci se began in March 2008 with the launch of the 
Evaluation Method of the OECD. 
• Under this Regulation it is established a pr eference margin for national competitors. The 
following preference margins are applied to national competitors: 
o 10% For public works tenders 
o 15% For goods and services tenders 
• Under the preference regime it is  established that firms must ha ve proof of the use of national 
factors in the production of at least 30%  of the goods final ex-work price. 
•
 The Administrative Tribunal plays a pre-inspection role in the government procurement which is 
to decide on the go ahead on selected proposal by UGEA.   WT/TPR/M/209/Add.1 
 Page 29 
 
 
 • In its turn, UFSA is the UGEA supervisory entity.     
• Relatively to possible complaints, the regulation pr ovides rights to unsatisfied bidders to inform 
UGEA and the contracting authority about its inte ntion to impeach the decision taken by UGEA, 
or to use any processual guarantee.    However,  for such impeachment to have an immediate 
effect it is necessary that unsatisfied bidders communicate to all interested parties. 
(ix) IPR’s regime and enforcement 
Mozambique's copyright regime contains a simila r mechanism for handling industrial property rights 
infringement. The enforcement of copyrights and rela ted rights are in the legislation approved by the 
Government, Law 4/2001, dated Februa ry 27. This law defines administrative and judicial means and 
mechanisms, which can be taken in case of violation of  copyrights and related rights. For an effective 
implementation of such means and mechanisms the Government is still to approve regulations for 
each one of the copyright area, namely for phonogr ams, audiovisual, literary  and art wo rks, among 
other creative arts. Nevertheless, some administrati ve actions to fight illegal use of copyrights and 
related rights   have been taken, in ad hoc basis,  by the Customs Authorities and by the police, which 
consist in confiscating and destruction of illegal copies.  
I. SECTORAL POLICIES 
(i) Agriculture 
 
Agriculture is major economic activity which c ontributes in 25% GDP in 2007 and employs three 
quarter labour force. So increasing productivity is one  of the key policy objectives, as this contributes 
to the poverty reduction and food security. Government policies incl ude expanding the prevision of 
extension service, agriculture inputs and credit.  
 
• Mozambique currently is exporting agriculture commodities. However, the main objective, at 
long run, is to increase   its processing capac ity, thus export processed products to preferential 
market. 
 
• Mozambique is beneficiary of several prefer ential market access, but due to supply side 
constrains do not use in full this trade advant age. Therefore, Mozambique is engaged (at the 
Regional and National level) in developing and improving infrastructure to facilitate trade and 
enhance competiveness.      
 
• The many objective of Action Plan for Food Production is to increase self-sufficiency on 
cereals (maze, wealth, and rice) by in creasing domestic production and exports.  
 
• Land acquisition requirements are regulated by legal framework adopted in 1997. The land 
leasing for investment projects are for 50 years renewable.  
        Climate change is challenge for Mozambican agri culture sector. The natural disaster such as droughts 
and flooding, periodically disrupt produc tion in certain parts of the country.  
 
• The Government of Mozambique has adopted, in  2008, the National Action Plan of climate 
change Adaptation (NAPA), with main focus on adaptation and mitigation measures, that 
include investments in research of tolerant varieties to drought (ext reme invents),  water 
storage and management.  Additional, unde r PARPA Mozambique has placed relevant 
importance to investment on irrigation and rain water harvesting for agriculture.  
 
• To implement the Clean Development Mechan ism forest projects in Sofala and Niassa 
provinces are being implemented. Many other projects on  WT/TPR/M/209/Add.1 
Page 30  
 
  
• In 2008 the His Excellence President of Moza mbique launches National Campaign to Plant 
Trees for students and decision makers. Under this program about five million of trees in 2007 and 2008. 
 
• Regional cooperation initiatives on agriculture research and water stream management, as 
Mozambique is downstream country, are importa nt for collective action on climate change 
challenges.   
 
(ii) Forest and Fisheries  
 
A legal framework on forest harvesting patrolling is  in place and being implemented by the forest 
body. Agreement with the Ministry of Home Af fairs on these issues is one way to fight illegal 
logging. The sector responsible for forest management  is working closely with customs at the major 
border posts (ports). Mozambique Fisheries Sector has adopted a Nationa l Plan of Action to fight against IUU (illegal, 
unreported, unregulated) fishing activities. U nder this plan, a number of actions are under 
implementation, including:  
 
• Monitoring:  A satellite based vessel monitoring syst em (VMS) has been established and in 
operation. As we are on early stage of implemen tation of this technology, this is combined 
with the traditional system of onboard observers  in order to secure reliability of the process. 
 
• Control:  Regulatory framework is being develo ped and harmonized with regional and 
international concerned legislation. The fisheries law, of 1990 (Lei 3/90), is under revision; a 
new Maritime Fisheries Regula tion was approved in 2003 (Decree N
o 43/2003 of 10th de 
December); and Management Plans are being form ulated for the main fisheries: shrimp, line 
fishing and kapenta fisheries. The Ministry of Fisheries is also in process of formulation of 
fisheries MCS (Monitoring, Control an d Surveillance) Policy and Strategy. 
 
• Surveillance:  Mozambique has taken an important st ep forward with recent acquisition of 
patrol vessels for fishing surveillance; Cap acity building of surveillance bodies deployed 
through most critical points along the coast is also ongoing, consisting of training and 
provision of adequate equipment. 
 On the other hand, there is cooperation with region al organizations for vessel certification prior to 
licensing for fishing activities, in order to prevent IUU fishing;  (iii) All in Fisheries Exports   
In the last five years (2004-2008) the highest expor t volume of shrimp was recorded in 2005 with a 
record of 10,431 tons, of which 9,414 from cat ching sector and 1,017 from shrimp farming.  
 
Decline trend in the subsequent years, with (-11.8%) in 2006, (-19.2%) in 2007 and (-49.9%) in 2008, 
as compared to the record of 2005.  The reasons for decline:  
• In 2006 one of the three companies involved in shrimp farming has closed down, with 
consequences in the level of shrimp produc tion (it represented over 500 ton production per 
year)  WT/TPR/M/209/Add.1 
 Page 31 
 
 
 • Price reductions due to the boom of aquaculture shrimp production from other nations 
imposed high competition to Mozambique exports to the traditional markets 
• In 2007 and 2008 fuel prices affected signi ficantly the production capacity. A number of 
boats were unable to go out fishing, with impact on production level which dropped 13% in 
2007 and 33% in 2008. 
• Financial crisis has also come to play a nega tive effect on the exports, particularly in 2008, 
with major impacts on exports from aquaculture industry which dropped 80% as compared to 
2005 level. 
 
(iv)  Manufacturing 
 
Mozambique has approved its industry policy and indus try development strategy. In this regard the 
government of Mozambique has approved the stra tegy and create the Institute to promote the 
development of SME and simplification licensing procedure.  
Additional Mozambique implemented a new code  fiscal incentives through the law 4/2009, 12 of 
January wish give incentive to rural industry and trade, processing industry exempting from payment 
from duties and VAT on the import of goods from K class and spare parts for equipments.  
 
(v) Energy and Mining 
 
The new Government Energy Strategy  and their Implementation Plan 2009 - 2013, recently approved 
and in process of gazetted,  aims to align Mozambi que with best international practices for efficient 
energy utilization, raising awareness amongst its  citizens about good environmental practices, 
diversifying the energy supply matrix, giving par ticular emphasis to new and renewable sources of 
energy and to the opportunities contained within the Clean Development Mechanisms, under the Kyoto Protocol.  The reduction of the Mozambican St ate’s energy bill, especially for imports of liquid fossil fuels, 
which in 2006 amounted to 14% of national imports, deserves special attention. 
 
The energy Strategy establishes policy guidelines a nd relevant measures for the energy sector based 
on the following principles, namely:  
• Increased sustainable access to electricity and liquid fuels; 
• Promotion of new and renewable sources of energy; 
• Promotion of sustainable bio fuels production to replace imported fuels; 
• Joint-planning and integration of energy in itiatives with development plans and programmes 
of other sectors; 
• Promotion of the concept of productive use of energy, enlarging the approach of energy 
supply to include the supply of systems and tools; 
• Efficient use of energy ; 
 
In oil sub sector and natural gas an action are u nderway to determining its  position in the national 
energy supply matrix.  In respect to the utilization natura l gas, a market study is currently  being undertaken to check areas 
with a good potential for consumption of this resource. 
 In this sector the following strategic initiatives will be taken:  
• Implementation of a programme aiming at replaci ng oil products by natural compressed gas; 
• Implementation of LPG pr oduction from natural gas; 
• Identification of new areas to expand natural gas distribution; WT/TPR/M/209/Add.1 
Page 32  
 
 • Identification of potential areas for natural gas application and study its feasibility; 
• Take necessary actions to secure the natural gas for the implementation of Power Plant, 
including the natural gas required to make fe asible the Moamba gas plant and its expansion 
plans; 
• Keep up to date regarding research works being undertaken in order to determine in a timely 
manner eventual contributions of this resource in the energy supply matrix. 
 
In Coal sub sector, the following strategic initiatives will be taken: 
 
• Proceed to use coal for power generation in th ermal stations, namely for example in Moatize 
with an installed capacity in the order of 1,500 MW; 
• Study available technologies to use for coal  power generation considering unit capacity 
groups to be installed; 
• Learn and use efficient techniques for carbon capture and storage in local industry as a 
contribution towards reducing climate change. A carbon tax shall be considered in economic 
calculations when studying thermal stations and values to be adopted shall follow the 
Intergovernmental Panel on Climatic Change (IPCC); 
• The Government will ensure the availability of , information about pr ospecting activities on 
coal resources, to find best way for this s ource to contribute in the energy supply matrix. 
 
The mining project is developed under the mining and investment legislation. No mining projects are 
carried out under IFZ. However, there is mi ning company operating under IFZ regime and the 
Government can create new IFZ when necessary which may cover potential mining projects. 
The implementation of the social investments is not compulsory by law. In some cases they are 
proposed by the investor or by concessionaire as good will to cooperate with the communities in the areas where they operate. In case of compe titive tenders launched by the Government, the 
implementation of the social projects may be an it em subject to the evaluation of the proposals. 
 
Mozambique is not requiring 50% of a position, as it is stated. In some cases it was agreed between 
the Government and the concessionaire a State participation in the range from 5% to 10%. 
 To communicate the results of the mapping to th e international mining community to increase 
opportunities for investment Information is available at the Ministry of Mineral Resources, and can be 
accessed on www.mirem.gov.m. Additionally, geologic maps can be sent by carrier, subject to payment.  Mozambique intends to cover other area s with maps at the scale of 1:50,000. 
The Bank of Mozambique regulates Commercializati on of gold, which means “trade of gold“. For 
exports of gold requires the approval by the Central Bank of Mozambique. 
Mozambique does not regulate export gold bullion in the form of doré bullion or refined metal; any 
title/producer can export refined metal.  The Secretariat report states that under Mozambi que’s mining regulations , foreign and national 
persons may apply for licences to engage in rec onnaissance, or prospection and research, and may 
obtain mining concessions. Maximum time limits for title validity are set down in the regulations: up 
to two years, non-renewable for reconnaissance; and five years, renewable once for prospection and 
research. The time limits are set out in the mining concessions and certificates; they depend on the project, but are renewable.  
Please explain specific. In addition, Japan would lik e Mozambique to indicate its improvement in the 
above mentioned practices with which some of  the Japanese companies in Mozambique have 
complaints.  WT/TPR/M/209/Add.1 
 Page 33 
 
 
  
No fulfilment of the work obligations stated on th e mining title or default in the payment of taxes are 
the legal grounds for the revocation, and the rejec tion of the renewal, of the mining concessions and 
licenses to engage in prospection and research No specific complaints were indicated and that Japanese companies have, but we recommend that those companies with complains should present 
them to the to the Mining Authorities.  
 
(vi) Services  
 
Mozambique has undergone significant and structural  reform with aim to increase an availability, 
quality and cost effective services. In this regard , Mozambique has been introducing several reforms 
in:   
(vii) Telecommunication 
 
Mozambique has approved Telecommunication Policy and Law. The Telecommunications Strategy in 
2006 opened a new era for expansion of the rural connectivity through the Universal Access  program, 
specifying Telephony and Internet services as basic communications services to be guaranteed to all 
Mozambicans.   The challenge of the GoM has been  to ensure that the developmen t of national ICT infrastructures 
would create the enabling environment for integr ated service delivery and standardization of 
technologies as well as for the accelerated prolifer ation of communication technologies and services 
in the Mozambican society (p articular the rural areas). 
 
The GoM is currently developing a number of le gal instruments with particular emphasis on the 
telecommunications Sector Reform, intellectual property rights and electronic transactions (The 
Electronic Transactions Act). 
 
(viii) Air Transport 
 
The Government of Mozambique does not interfer e in the establishment of tariffs in any sector 
whatsoever. Air transport companies fix tariffs base d on the market conditions. However, the fact that 
there are few companies operating in this area a nd limited connectivity makes tariffs and services 
relatively higher compared to other parts of the world.  A Challenge to the transport Sector is the reduction of tariffs through the creation of conditions for 
entry of more air companies in the market as well as the modernization of the airport infra-structure.  
 
INCM (Mozambican National Institute for Communica tions) was established unde r the Decree No. 22 
of 1992 as Independent Communication Authority Body, so, not accountable to any supplier. 
 The telecommunication law of Mozambique is ali gned with the basic telecommunication reference 
paper and respond in full to prevention of anticompetitive practices by the major suppliers; 
interconnection with major supplie rs, public availability and tr ansparency of procedures for 
interconnection; recourse to any independent body fo r dispute resolution; public availability licensing 
criteria and independence of telecommunication regulatory body.  
To decrease air fare the Government of Mozambique  approved in December in 2007 a set of measures 
aimed at bringing reforms to the civil aviation sector. These reforms entail, among other things, 
introduction of the 5
th Air Freedom in intercontinental rout es, where there are rights for the 3rd and 4th 
Air Freedom.  WT/TPR/M/209/Add.1 
Page 34  
 
 Related to the Visa entry Mozambique has create d facilities within all entrance posts to obtain 
essential Visa.  To improve safety and commodity and comfort (Perfect conditions) all vehicles used for 
transportation of tourist passengers need to meet the provisions of the Regulation of Automobile 
Transport prescribed in (RTA-Regulamen to de Transportes Automóveis).  
 The above points are the main measures taken by the Government of Mozambique to reduce 
constrains to the development of services sector specifically tourism.   WT/TPR/M/209/Add.1 
 Page 35 
 
 
 FOLLOW-UP QUESTIONS 
 
 
FOLLOW-UP QUESTIONS FROM THE GOVERNMENT OF CANADA 
 
Part IV. Trade Policies and Practices by Sector:  (3) Mining, Energy and Water; 
(i) Mining, petroleum and natural gas;  (a) Mining;  paragraph 42, page 61: 
 
Canada thanks Mozambique for its answer to question 23.  Canada would appreciate if Mozambique could provide recent gold production and trade data. 
 
ANSWER: 
Mozambique exported 74,64 Kg of gold in 2007 and 106 Kg in 2008. 
 
Canada also thanks Mozambique for its answer to question 24. 
 
Canada is interested to learn how a concession holder can go about obtaining the Central Bank's 
permission to export gold:  is it freely given:  are there fees and, if so, at what level(s)?  
ANSWER: 
Article 37, Section V, Notice Nr 5/GGBM/96, on  Exchange Control Regulation (Gold, Silver and 
Platinum) states:  
I. An application for the export of gold, silver and platinum and other precious metals shall, 
for the first time exportation, include a notarised  copy of the mining title or Class III trading 
licence; 
 
II. The export application shall include the deta ils of the arrangements for the sale of the 
aforesaid metals;  and   III. The Bank of Mozambique enjoys the right of  first refusal in the purchase of gold, silver 
and platinum or any other precious metal to be expor ted for sale or disposal on the precise terms of 
the proposed sale or other disposal.  
It is worth to note that there are no  fees chargeable for this application. 
 
If permission is not granted, what are the possible grounds for refusal? 
 
ANSWER: 
The only way to have an application for export for export refused is if it doesn't fulfil with the 
requirements above mentioned in the Article 37. 
 If permission is not granted, what are the possible grounds for refusal? 
 
ANSWER: 
The only way to have an application for export ref used is if it doesn't fulfil with the requirements 
above mentioned in the Article 37. WT/TPR/M/209/Add.1 
Page 36  
 
 If permission is not granted, must the gold be sold in Mozambique? 
 
ANSWER: 
Yes, if there is no permission to export , the gold must be sold in Mozambique. 
 
FOLLOW-UP QUESTIONS FROM THE EUROPEAN COMMUNITIES  Government Report (WT/TPR/G/209) 
  
Page 5, paragraph 6: “… Enterprises in most sector s can apply to establish or join an industrial free 
zone, except for natural resource projects, and fish or cashew nuts processing. The first industrial free 
zone was the Industrial Park of Beluluane, estab lished 1999. Outside the park, other investment 
projects enjoy “industrial free zone” status, and th ese include the MOZAL aluminium plant and the 
heavy sands projects in Moma-Nampula and Chibuto”. 
 
Question 1:  
Can a foreign company apply for an industrial free zone?  
ANSWER: 
In accordance with Mozambican legislation, any foreign company can apply for an industrial free 
zone.  
Page 7, paragraph 21: The Mozambican Agricu lture sector has been developing strategies and 
programs to increase production and productivity with the aim of becoming competitive in the international market and to capture internationa l trade opportunities available to Mozambique. To 
support this process the Government approved the ‘Green Revolution strategy’ in 2007. 
 
Question 2: 
 
Which strategies have been developed to in crease agriculture production and to capture 
international trade opportunities? 
 
ANSWER: 
The Government of Mozambique approved, in 2008 the green revolution strategy to improve 
agricultural production and productivity.  Lat er on, the Government approved Action Plan for 
Food Production as the main tool  to implement green revolution th rough the use of improved seed, 
mechanization, fertilizers and other new technologies.  
Mozambique created Commercial Agriculture Promotion Centre (CEPAGRI), which falls under the 
Ministry of Agriculture, with the aim to attract pr ivate agriculture investme nt and create an enabling 
environment for commercial farming. 
 
Page 10, paragraph 43:” …Trade policies are fo rmulated with a view to aiding Mozambique's 
industrialization process by creating linkages with in ternational value chains and, importantly, by 
reducing the barriers to imports of key inputs.  In pursuing its trade policy objectives c is fully engaged in multilateral, regional and bi-lateral trade negotiations”.  
 
 
  WT/TPR/M/209/Add.1 
 Page 37 
 
 
 Question 3: 
 
Which specific policies are envisaged by Mozambi que to reduce the barriers to imports of key 
inputs? Which are those key inputs?  
ANSWER: 
The new tariff book incorporates main aspects of trade policy, by reduction to zero tariffs on 
imports of the inputs, especially for those to  support the green revolution focusing to food 
production.  (Decree 39/2002, of December 26
th;  Diploma 99/2003 of August 13th which approves 
customs regulations regime for industrial transformation and Law 4/2009, of January 12th which 
approves a list of fiscal incentives) 
 UNITED STATES FOLLOW-UP QUESTIONS 
 
USG Follow-up Questions are the following: 
 
Vll. Advanced Questions by United States 
WTPR/S1209 IIl. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES DIRECTLY AFFECTING lMPORTS (ii) Customs procedures, and valuation 
 
Page 30, paragraph 13:  According to the Secret ariat, "Certain goods are subject to mandatory 
pre-shipment inspection (PSI).' First introduced in 1998, PSI is provided exclusively by Iotertek, 
under a contract expiring in 2009. The contract  covers PSI, training, and support 10 seven 
customs offices in Mozambique. Since 2003, PSI applies to a "positive list" of products, which 
the Government is reducing progressively." 
 Does the PSI "positive list" preclude from inspec tion exports originating in certain countries 
and not in others? 
 
No. All goods in the positive list are subject to pre-shipment Inspections regardless their 
country of origin. 
 
USG Follow-up Questions 
 Does preshipment inspection preven t shipment of goods from countries in which Intertek does not 
have a commercial presence? 
 
ANSWER 
No . INTERTEK has regional offices from where it does ensure inspection of goods if needed. 
 
Does Mozambique intend to renew its PSI contract with Intertek? 
 One of the components of this contract is to build national capacity inside the Customs so they 
perform inspection themselves.   
 WT/TPR/M/209/Add.1 
Page 38  
 
 USG Follow-up Questions 
 Could Mozambique please elaborate on what type of capacity building is being done?  
 
ANSWER: 
 - On job technical training of the staff deployed at Customs Clearing Terminals, by     
INTERTEK experts; 
 - Training of staff and implementation of post clearance audits;  - Training sections focusing on customs valuation matters;  - Participation with the Revenue Authority on the rehabilitation and equipment of the 
Training Institute for Customs Revenue and Public Finances. 
 
- Is Intertek the only provider of  the capacity building assistance?  
 
ANSWER: 
No, there are other several partners providing technical assistance. 
 
- What is the approximate timeline in which Mozamb ique expects to be able to have goods inspected 
locally?   
ANSWER: 
Three to four years is the reasonable time, depending on the decision to be made on the issue as 
indicated above. 
 
- Does Mozambique expect to be ready to inspect goo ds locally by the time that its contract expires 
with Intertek?  
 
ANSWER: 
Yes.  By that time 100% of goods will be inspected locally. 
 
• The lntertek website identified in the Secretaria t's report states that "[t]he customs valuation 
or price verification undertaken by Intertek  seeks to determine whether the price being 
charged by the Seller, as declared to us in the pro-forma invoice, corresponds within 
reasonable limits with, export prices generally prevailing in the country of supply." Please 
explain how this process complies with Mo zambique's obligations under the Customs 
Valuation Agreement.  
USG Follow-up Questions 
 
ANSWER: 
Mozambique follows recommendations  from Article VII of GATT.  When uncertainties arise, steps 
are taken following the provisions of the recommen dation.  Mozambique is a subscriber of Customs 
Valuation Agreement.  
 
Given the fact that Article 7 of the Valuation Agre ement prohibits the use of the price of goods on the 
domestic market of the country of exportation and the price of goods for export to a country other 
than the country of importation, we request furthe r explanation on Intertek’s use of prices in the 
“country of supply” and how the practice is consistent with the Valuation Agreement.  WT/TPR/M/209/Add.1 
 Page 39 
 
 
  
ANSWER: 
Article XVII of the GATT Valuation Code, GVC gi ves provision for the right of the Customs 
Administration to reassure itself about the truthful ness or accuracy of any statement, document or 
declaration. 
 
USG Follow-up Questions  Could Mozambique clarify what cons titutes a “consumer tax” on imports? 
 ANSWER: 
Specific Consumption Tax is a tax on imported sup erfluous and luxuries goods such as cigarettes, 
liquor, perfumes and vehicles. 
 
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