Major Investments

In recent years, Madagascar has attracted major investments related to the exploration and exploitation of mineral resources. Customs, applying customs procedures under the legislation, is working closely with those investors.

Qit Minerals Madagascar

With a rate of nearly 60% of titanium dioxyde, the deposit of Tolagnaro is the biggest ilmenite is the largest ilmenite deposit known. This deposit is exploited by QIT Madagascar Minerals (QMM), the huge Canadian company Rio Tinto.

Legal basis for customs regimes : Law No. 98-002 of 19 February 1998 authorized the ratification of the agreement between the Malagasy State, represented by OMNIS and QIT -FER ET TITANE INC.

QMM : « The starting date of the operating period is scheduled to be January 1, 2012 except if, before that date, the monthly production of minerals had reached 65% of the capacity of the processing unit, based on the annual production of 750,000 tons, according to the final feasibility report of the project », stated in accounting and tax Annex.

Finally, the operational phase started on July 2011.

Permanently imported goods related to the project are subject to payment of duties and taxes under the table in Annex C of the Establishment contract, except the goods and supplies to be used for public infrastructure.

Operating vehicles and transport vehicles are eligible for a temporary admission when they are intended for re-export. This is also the case of materials, equipment and tools temporarily imported by the Project.

Clearance procedures applicable are those established by the Memorandum of Agreement signed July 13, 2011 by the Customs and QMM SA.

Ambatovy project

It is the development of a nickel mine open-pit in Moramanga and a hydrometallurgical processing unit in Toamasina. This project is so far the largest investment project in the country's history.

Legal basis for customs regimes : Major mining investments acts.

Effective operation of Ambatovy by AMSA and DMSA began on November 8, 2012 according to Decree 3041/2013 of 15/02/2013. That date is the date of loading of the first commercial shipment of the main mining products including nickel, cobalt, copper sulfide and zinc sulfide.

Therefore, the regime applied by the the project can be summarized in the table below. It should be noted that most of the goods intended on behalf for the DMSA remain free of Duties and Tax of Importation, while those imported on behalf for the AMSA account are subject to the rate of 5 %. Finally, the removal of goods in this project involves taxation.

Goods

Taxation

Regimes

Materials and Equipments leased by the Contractor

Temporary Admission

Duties and taxes paid annually on the rental value for the year of hire equipment considered

All goods imported by the holder as shown on the approved list

Release for consumption

Duties and Taxe of Importation =5 %, payment before removal of goods

All goods imported on behalf of the Entity transformation listed on the approved list

Release for consumption

Duties and Taxe of Importation = Free

Oil exploration companies

The west coast of Madagascar is divided into thirty blocks,  most of which is currently operated by companies under the terms of oil exploration contracts signed with the Malagasy Office of Mines and Strategic Industries (OMNIS). In March 2008, the Company Madagascar Oil announced the first oil production from the steam injection for heavy oil field in Tsimiroro pilot.

Legal basis for customs regimes : Law No. 96-018 of 4 September 1998 Petroleum code.

Customs regime

Project phase

Goods concerned

Temporary Admission

Prospecting, research and exploration

Materials, equipment and special products

Duties and Taxe of Importation = Free

Initial installation of the operating units, processing and transportation of oil

Materials and equipment

Douanes Malagasy 2017
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