Search

The MFN tariff rates applied at the border underwent significant changes since 2012, with the revisions brought to the Import Export Act. Duty is levied on less than 66% of the tariff lines. Less than 6% of the tariff lines are subject to a duty rate equal or higher than 35%. Approximately, 34% of the tariff lines are subject to a zero rate and is applied to essential goods such as food, medicine, construction goods including cement, sand and wood, fertilizers, garments, domestic electric appliances, environment friendly goods, machineries and vehicles which run on renewable energy.

The highest rate of duty currently imposed is 400%, levied on non-biodegradable plastic bags and polythene sheets as a measure to protect the fragile ecosystem and environment of the country.

Except for ambergris, no duty or taxes are levied on exports. Maldives does not impose a quota system on any general import items under its current policies. However, on environmental grounds, Maldives imposes a quota on the import of substances that deplete the ozone layers such as HCFC gas and also on export of live tropical aquarium fish. Maldives has also banned export of 20 marine products to protect the endangered fauna.

As a member country of Montreal Protocol on Substances that Deplete the Ozone Layer, Maldives has to phase-out HCFCs by 2030. The HCFC Phase-out Management Plan (HPMP) of Maldives is aimed for an accelerated phase-out of HCFC consumption by 2020. As per the HCFC phase-out target of the Maldives, the import of HCFCs has been controlled since 2011 and it can be imported to the country with prior approval from the Ministry of Environment and Energy.

The National Ozone Unit allocates national annual HCFC and HCFC blends quota for each importer based on importer's import history and other relevant considerations, following the HPMP of the Maldives and the phase-out schedule. Companies granted HCFC import quotas are selected through open bidding process annually. An internal evaluation committee is formulated within the Ministry of Environment and Energy to evaluate the bids submitted to obtain HCFC import quotas. The committee looks into various established criteria for selections and allocation of import quotas, including the past year's performance of the company on HCFC import and distribution in the country.

Following amendments to the Export Import Law during the review period, government has the discretion to exempt duty for imports, especially if goods imported are used to commence economically significant activities, for industrial purposes and development of infrastructure and tourist resorts. Duty exemptions for such purposes are afforded to high value machineries, capital goods and construction materials. Duty concessions are also granted to environmentally friendly products and to foster value addition activities in industries such as poultry farming, fisheries and agriculture.

MED (Ministry of Economic Development) may suspend or prohibit imports of a good based on public health, religious, environmental grounds, upon recommendations by the relevant ministry, department or agency.

During the review period, the Government continued to adopt economic and social policies with environment considerations as key priorities.

High tariff is charged on plastic bags and zero tariffs on biodegradable bags in order to discourage import of those plastic bags and its use, that are harmful to the environment.

The Convention on International Trade in Endangered Species (CITES) regulation. CITES implementation is carried out in collaboration with Maldives Customs Service. As the management authority of CITES implementation, Ministry of Environment and Energy issues CITES permits. CITES listed species and products are confiscated at the border by Customs if the relevant CITES permit is missing. Ministry of Environment and Energy is working on developing a draft Act on CITES to pave way for effective implementation and enforcement of CITES in Maldives. This is expected to come into force soon.