1 Trade agreements
1.1 Which bilateral, regional and multilateral trade agreements have effect in your jurisdiction?
Mauritius is a member of a range of multilateral, regional and bilateral agreements. At the multilateral level, Mauritius is an original member of the World Trade Organization, having joined upon the establishment of the institution in 1995. Prior to this, Mauritius became a contracting party to the General Agreement on Tariffs and Trade in September 1970.
At the regional and bilateral level, Mauritius is a signatory to a series of trade agreements, as follows.
| Bilateral trade agreements |
Regional Trade Agreements |
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Furthermore, due to its categorisation as a developing country, Mauritius benefits from a number of unilateral trade preferences granted by developed countries through the Generalised System of Preferences (GSP) scheme. GSP-granting jurisdictions include Australia, Belarus, the European Union, Japan, Kazakhstan, New Zealand, Russia, Norway, Switzerland, Turkey and the United States. Mauritius also benefits from the United States’ African Growth and Opportunity Act, an African-specific set of unilateral trade preferences.
Finally, Mauritius is also engaged in several forums destined to improve bilateral and regional trading environment, including:
- the Trade and Investment Framework Agreement between Mauritius and the United States;
- the Indian Ocean Commission; and
- the Indian Ocean Rim Association.
However, these forums do not grant tariff preferences to member countries.
1.2 Which authorities are responsible for the negotiation of trade agreements? What does this process typically involve and how long does it take?
The Ministry of Foreign Affairs, Regional Integration and International Trade (MoFARIT) is the main institution responsible for negotiating trade agreements in Mauritius. The International Trade Division (ITD), under the aegis of MoFARIT, is responsible for overseeing all matters relating to the facilitation of bilateral, regional and multilateral trade agreements in Mauritius. The ITD also coordinates trade policies in conjunction with relevant ministries and the private sector in Mauritius to determine the negotiating positions of the country with regard to different aspects of trade.
Negotiations with the Mauritian government on trade agreements normally take several years, although this is still considered fast in comparison to international practices. Negotiations on the China-Mauritius FTA, for instance, began in December 2017 and concluded in October 2019. The process involved four rounds of negotiations. Likewise, for the CECPA between Mauritius and India, negotiations began in 2017 and were conducted through seven rounds of negotiations and 13 digital video conferences. The CECPA was signed in February 2021.
1.3 Do interim provisions apply while new trade agreements are under negotiation?
negotiation?
In some cases, yes. The Mauritian government has an iEPA with the European Union which was signed in August 2009. The iEPA has been provisionally applied since May 2012. The signatory states to the iEPA include Comoros, Madagascar, Seychelles and Zimbabwe, which all derive benefits from the agreement in the interim, such as duty-free market access to the European Union. The iEPA also includes a rendezvous clause, which foresees the expansion of the iEPA’s coverage towards other trade-related issues, such as trade in services, investment, sustainable development and competition. Negotiations to expand the scope of coverage of the iEPA began in October 2019 and are currently underway.
2 Customs and imports
2.1 What laws and regulations govern customs in your jurisdiction?
The laws and regulations that govern customs in Mauritius are as follows.
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Legislation |
Regulation |
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Customs Act of 1988 |
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Consumer Protection Act |
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Customs Tariffs Act of 1970 |
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Furthermore, imports are also subject to excise tax and value added tax (VAT) under relevant laws and regulations.
2.2 Which authority is responsible for enforcing the customs regulations? What powers does it have?
MRA Customs, a unit under the Mauritius Revenue Authority (MRA), is the primary institution responsible for enforcing customs regulations in the country. The MRA operates under the aegis of the Ministry of Finance and Economic Development. MRA Customs operates through several interconnected sections, as follows:
- Air Cargo Operations;
- Trade Facilitation and Customs Cooperation;
- Seaport Operations;
- Customs Management System/Information Technology Assessment;
- Excise;
- Surveillance and Enforcement;
- Deferral Regimes;
- Risk Management;
- Air Passenger Terminal; and
- Customs Anti-Narcotics.
MRA Customs has three main duties:
- First, MRA Customs has a fiscal role, whereby it is responsible for the collection and protection of government revenue in the form of customs duty, excise duty, VAT and all other taxes as prescribed under the customs laws and regulations in force in the country.
- Second, MRA Customs performs an economic role involving trade facilitation to increase the volume of imports, exports and investments.
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The third core function of MRA Customs is linked to protection and security, which includes: -
- enforcing the country’s customs laws;
- preventing and prohibiting the entry of dangerous goods into the country;
- monitoring trade in controlled goods; and
- combating fraud and money laundering.
MRA Customs is also empowered to ensure wildlife protection under the Convention of International Trade in Endangered Species.
2.3 What is the authority’s general approach to enforcing the customs regulations? How vigorously are the rules enforced?
As stated in Article 125 of the Customs Act of 1988, the director general of MRA Customs has exclusive power within the customs area, port premises and airport and freeport zones to enforce customs laws and any other enactments insofar as the import or export of goods is concerned, including the power to:
- perform security checks;
- question, detain and search persons; and
- search their luggage and goods.
Additionally, anyone who does the following, among other things, will have committed an offence:
- evades or attempts to evade payment of any duty, excise duty or taxes which are payable;
- declares a customs value which he or she knows to be false or below the true value of the goods; or
- smuggles out of Mauritius any goods or exports any prohibited or restricted goods.
The list of offences is set out in Article 158 of the Customs Act of 1988.
2.4 What customs import tariffs and duties apply in your jurisdiction? How are they levied?
Mauritius applies low import tariffs, with a simple average tariff equivalent to 1.25% – one of the lowest rates in Africa. The country has a total of 6,523 tariff lines, of which 6,099 (93.5%) are rated as duty free. With respect to the 424 tariff lines to which customs duties apply, Mauritius uses a mix of ad valorem and specific duties. With regard to the ad valorem duties, the rates follow a five-band structure, ranging between 0% and 30%.
Customs duties are levied on the cost, insurance and freight value of the imported goods; while excise duties are imposed on certain products such as cigarettes, alcoholic drinks, petroleum products and automotive products.
As of October 2021, some 557 tariff lines are subject to excise duties, due to concerns over the environment or health. Excise duties are also applicable to locally manufactured products.
VAT is imposed on certain products at a fixed rate of 15%; while other products are either zero rated or VAT exempt. In 2021, the number of exempted lines stood at 312, and zero-rated goods at 1,227 lines. Similar to excise duties, VAT is also applicable to items produced domestically.
2.5 What types of preferential tariffs are available in your jurisdiction? What are the criteria for eligibility?
Mauritius applies a zero-rate tariff to 93.5% of all its tariff lines on a ‘most-favoured nation’ basis, meaning that all imports originating from World Trade Organization member states under those tariff lines benefit from duty-free market access.
Additionally, Mauritius applies several preferential tariffs linked to the trade agreements to which the country is a party. See question 1.1 for an overview of the countries with which Mauritius has a trade agreement. In trade with those countries, rules of origin apply, which are specific on a line-by-line basis.
Furthermore, some ad hoc exemptions or concessions may be granted by the MRA in connection with Part II of the First Schedule of the Customs Tariff Act. There are 54 categories to which unclassified tariff exemptions may apply; and a reduced tariff rate may be applied to imports of 11 groups of products, which include:
- certain pharmaceutical products;
- parts and accessories for the processing and assembly of machinery;
- components for building, construction and renovation;
- certain equipment and gear required in horticulture and livestock breeding;
- car gas kits;
- riding boots; and
- training equipment.
2.6 Are tariffs applied to safeguard national security?
Mauritius does not currently have legislation on safeguards. However, a consolidated trade remedies law – including safeguards, anti-dumping and countervailing measures – is expected to be introduced in 2022.
2.7 What import controls and restrictions apply in your jurisdiction? What exemptions are available?
Most of the import controls and restrictions are in the form of quantitative restrictions, except for a few select products for which importers must meet certain specific requirements. Restricted and controlled goods can be found in the Fourth Schedule of the Consumer Protection (Price And Supplies Control) Act of 2017. For restricted goods and controlled goods, an import permit is required, which can take between two and three working days to be approved.
The Second Schedule of the Consumer Protection (Price and Supplies Control) Act of 2017 sets out a list of goods which cannot be imported.
2.8 How are customs and import decisions challenged in your jurisdiction? What does this process typically involve and how long does it take?
Rulings relating to the Harmonized System classification, valuation or the origin of goods may be challenged by application to the office of the director general of the MRA. The application must be submitted in writing and should include a full description of:
- the goods;
- the production process;
- the composition of the goods;
- a certificate of costing; and
- information on the country in which the goods were imported and manufactured.
Any other documents relevant to the goods in question must also be submitted. Moreover, details and a statement pertaining to the opinion of the applicant regarding the classification of the goods must also be provided. In certain instances, a fee may be required for the assessment.
In connection with an application regarding the classification of goods, the director general of the MRA must issue a ruling within 45 days of receipt of the application. With regard to an application concerning the origin of goods, a ruling must be issued within 150 days of receipt of the application.
According to Section 161 of the Customs Act, an interested party can challenge decisions before a magistrate. Magistrates have jurisdiction to try all offences under the Customs Act, other than those of criminal origin.
2.9 What penalties are imposed for breach of the customs rules?
The penalties for breach of the customs rules in Mauritius are set out in the Customs Act of 1988. Unpaid duty, excise duty and taxes are subject to an overdue payment penalty and interest for the period during which the unpaid duty, excise duty and taxes remain unpaid. The penalty is valued at 5% of the unpaid duties and taxes; while interest is charged at a rate of 0.5% for each month these remain unpaid.
In the case of offences such as smuggling and other prohibited activities (eg, the import of prohibited or restricted goods; the possession of goods for which excise duty and taxes have not been paid), a fine three times the amount of outstanding duty, excise duty and taxes on the goods or MUR 20,000 (whichever is the higher) must be paid for goods with a value exceeding MUR 1,500. A term of imprisonment for up to eight years may also be imposed. The goods in question may also be liable to forfeiture.
3 Exports
3.1 What export controls and restrictions apply in your jurisdiction? What exemptions are available?
Mauritius applies a series of export controls and restrictions, although the list of products that are controlled or restricted has been shortened. As per the Consumer Protection (Export Control) Regulations 2000, exporters must obtain an export authorisation from the relevant authority for the goods to be allowed to leave the country. Pending such authorisation, the goods either can be detained at customs or can be referred to the relevant authority for approval. Products that are controlled or restricted are those:
- deemed ‘strategic’ or ‘sensitive’ to the country; or
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that may be eligible for preferential treatment in importing countries, such as: -
- live animals and meat;
- cereals;
- sugar;
- sand;
- limestone;
- textiles and textile articles; and
- rough diamonds.
For example, the export of live animals, bovine meat or preserved meat requires authorisation from the Ministry of Agro-Industry and Food Security; while the export of sugar and sand requires authorisation from the Mauritius Sugar Syndicate and the Ministry of Environment and Sustainable Development, respectively. A comprehensive list is available on the website of the Mauritius Revenue Authority (MRA).
3.2 Which authority is responsible for enforcing the export controls? What powers does it have?
MRA Customs is responsible for enforcing export controls in Mauritius. Exports are subject to the control of MRA Customs from the moment that they are brought into an approved place of loading for export up to the time of exportation. With regard to matters pertaining to customs, the director general of the MRA has the power to enforce custom laws and regulations, including the power to:
- conduct security checks; and
- question, detain and search persons and their goods.
The police may also provide assistance to the director general in the enforcement of his duties. The director general may also detain goods, requiring goods proof or production documents from the exporter. Customs officers are also empowered to enforce the provisions of the Customs Act of 1988 and the Customs Tariff Act; for example, it has the power to examine all goods including accessing computers and electronic devices.
3.3 What is the authority’s general approach to enforcing the export controls? How vigorously are the rules enforced?
Mauritius has a robust framework to deal with export control offences. As stated in Article 125 of the Customs Act of 1988, the director general of MRA Customs has exclusive power within the customs area, port premises and airport and freeport zones to enforce customs laws and any other enactments insofar as the import or export of goods is concerned, including the power to:
- perform security checks;
- question, detain and search persons; and
- search their luggage and goods.
Additionally, anyone who does the following, among other things, commits an offence:
- evades or attempts to evade payment of any duty, excise duty or taxes which are payable;
- declares a customs value which he or she knows to be false or below the true value of the goods; or
- smuggles out of Mauritius any goods or exports any prohibited or restricted goods.
The list of offences is set out in Article 158 of the Customs Act of 1988.
3.4 How are export decisions challenged in your jurisdiction? What does this process typically involve and how long does it take?
According to the Consumer Protection (Price and Supplies Control) Act (12/1998), and as amended by Act 14/2005, a division of the Supreme Court known as the Profiteering Court has the authority to resolve disputes regarding export decisions. All proceedings before the Profiteering Court are conducted in the same manner as proceedings for an offence before a judge without a jury.
The duration of this process varies according to the workload of the court and the complexity of the case.
3.5 What penalties are imposed for breach of export controls?
According to Section 156 (smuggling and other prohibited activities) of the Customs Act 1988, anyone who does the following will be considered to have committed an offence:
- smuggles any goods into Mauritius;
- imports any prohibited or restricted goods; or
- unlawfully conveys or has in his or her possession infringing goods according to Section 156.
On conviction, the offender may be liable to a fine of:
- up to MUR 4,000, where the value of the goods does not exceed MUR 1,500; or
- three times the amount of the outstanding duty, excise duty and taxes on the goods or MUR 20,000 (whichever is the higher), for goods with a value exceeding MUR 1,500.
A term of imprisonment for up to eight years may also be imposed. The goods in question may also be liable to forfeiture.
4 Trade remedies
4.1 What laws and regulations govern trade remedies in your jurisdiction?
The Trade (Anti-dumping and Countervailing Measures) Act 2010 governs trade remedies in Mauritius. It aims to protect domestic industry against the impact of dumping and subsidised imports, and provides the legal framework for the imposition of anti-dumping and countervailing duties.
4.2 Which authority is responsible for enforcing the trade remedy regulations? What powers does it have?
The Investigating Authority (IA), which falls under the aegis of the International Trade Division of the Ministry of Foreign Affairs, Regional Integration and International Trade, is responsible for investigating incidences or suspicions related to dumping and subsidised imports into Mauritius. The IA receives its powers under Section 73 of the Trade (Anti-dumping and Countervailing Measures) Act of 2010. These include the power to investigate any allegation or suspicion of dumping or subsidised imports. This can be carried out either on its own initiative or after receiving a complaint in this regard. The IA is also empowered to take any necessary measures, in accordance with the Trade (Anti-dumping and Countervailing Measures) Act, to prevent dumping or subsidised imports, and can thus issue directives or make proposals on this matter.
4.3 What is the authority’s general approach to enforcing the trade remedy regulations? How vigorously are the rules enforced?
The Trade (Anti-dumping and Countervailing Measures) Act is not frequently enforced, either by the authorities or by the private sector. As at the end of March 2022, no formal applications from local industry under the Trade Act 2010 for a trade remedy investigation had been made.
4.4 How is a trade remedy action initiated in your jurisdiction and on what grounds? Can the authority initiate an action ex officio?
The IA, which falls under the aegis of the International Trade Division of the Ministry of Foreign Affairs, Regional Integration and International Trade, is responsible for investigating incidences or suspicions related to dumping and subsidised imports into Mauritius. The IA receives its powers under Section 73 of the Trade (Anti-dumping and Countervailing Measures) Act 2010. The IA can initiate an investigation on its own initiative or after receiving a complaint in this regard.
4.5 What does the action typically involve and how long does it take?
Applicants for the commencement of an investigation must submit evidence of:
- the dumping or subsidy applied;
- the injury caused;
- the causal links;
- all relevant information pertaining to the volume and value of price of like products in the domestic market; and
- a complete description, including technical characteristics, of the alleged dumped or subsidised product.
The IA will not initiate an investigation where:
- the information is insufficient;
- the volume of alleged dumping is negligible; or
- the dumping margin or rate of subsidisation is de minimis.
The IA must conclude an anti-dumping investigation or subsidy investigation within a year and in no case later than 18 months after the date of initiation of investigation. The investigation procedure consists of a series of stages, beginning with gathering of information by the IA to issue a preliminary determination, followed by hearings and the production of a final determination.
4.6 How can interested parties defend against a trade remedy action in your jurisdiction?
The Trade (Anti-Dumping and Countervailing Measures) Act (1/2010) includes a hearing mechanism through which interested parties can put forward their arguments in the context of a specific trade remedy case. Upon request by an interested party within 30 days of publication of the preliminary determination, the IA will fix a hearing at which all interested parties may submit information and arguments. A hearing will be held no later than 60 days prior to the date proposed for the final determination.
Furthermore, if no hearing is requested, any interested party may submit, no later than 45 days before the date proposed for the final determination, written arguments concerning any matter it considers relevant to the investigation. If a hearing is held, any interested party may submit written arguments concerning any matter it considers relevant to the investigation no later than 10 days before the scheduled date of the hearing.
4.7 How are trade remedy decisions challenged in your jurisdiction? What does this process typically involve and how long does it take?
Section 74 of the Trade (Anti-Dumping and Countervailing Measures) Act 2010 highlights that an aggrieved party may appeal a final decision of the IA to the Supreme Court by way of judicial review.
As no case has ever been challenged through this process, the practicalities and duration of the cases are still unknown.
4.8 What strategies should be considered to ensure compliance with a trade remedy decision? What penalties are imposed for non-compliance?
Once a trade remedy decision is issued, the interested parties should comply with its provisions. Interested parties can appeal the decision through the domestic courts; and decisions can also be reviewed through the sunset review or through a change in circumstances (see Part XI of the Trade (Anti-Dumping and Countervailing Measures) Act 2010).
Evasion of trade remedies – that is, actions aimed at evading some or all obligations to enforce an existing trade remedy imposed on products subject to these measures when being imported to Mauritius – should be avoided. Anyone that commits an offence, including the evasion of trade remedies, will, on conviction, be liable to a fine not exceeding MUR 100,000 and to imprisonment for a term not exceeding two years, as highlighted in Section 75 of the Trade (Anti-Dumping and Countervailing Measures) Act 2010.
5 Trade barriers
5.1 What laws and regulations govern trade barriers in your jurisdiction?
Mauritius has no general law covering trade barriers within its jurisdiction. Tariff barriers are regulated through the Customs Tariffs Act, as indicated in question 1.
For non-tariff barriers, such as specific product requirements, Mauritius applies a range of laws, depending on the approach to such barriers. For example, the Consumer Protection Act and the regulations thereunder include certain safety requirements that must be met to import toys and plastics. Furthermore, the Legal Metrology Act of 1985 and its regulations specify the labelling requirements applicable to all pre-packed commodities imported to Mauritius. Other import and export control measures are discussed in questions 2 and 3.
5.2 Which authority is responsible for enforcing the trade barrier regulations? What powers does it have?
Specific trade barriers are enforced by specific authorities. MRA Customs, a unit under the Mauritius Revenue Authority (MRA), is the primary institution responsible for enforcing trade barrier regulations that are related to customs regulations. The MRA operates under the aegis of the Ministry of Finance and Economic Development. MRA Customs has three main duties:
- First, MRA Customs has a fiscal role, whereby it is responsible for the collection and protection of government revenue in the form of customs duty, excise duty, VAT and all other taxes as prescribed under the Customs Laws and regulations in force in the country.
- Second, MRA Customs performs an economic role involving trade facilitation to increase the volume of imports, exports and investments.
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The third core function of MRA Customs is linked to protection and security, which includes: -
- enforcing the country’s customs laws;
- preventing and prohibiting the entry of dangerous goods into the country;
- monitoring trade in controlled goods; and
- combating fraud and money laundering.
MRA Customs is also empowered to ensure wildlife protection under the Convention of International Trade in Endangered Species.
The Mauritius Standards Bureau, which operates under the aegis of the Ministry of Industrial Development, SMEs and Cooperatives, is mandated to develop national standards and provide conformity assessment services. It operates a sub-office within the premises of the Customs House in Mauritius for the verification of certificates of conformity of scheduled controlled goods, to expedite the release of consignments of goods from Customs.
Furthermore, for sanitary and phytosanitary matters, the National Plant Protection Office regulates the trade of plants/plant products; while the Livestock and Veterinary Division regulates the trade of animals/animal products.
Finally, the Consumer Affairs Unit oversees the enforcement of the Consumer Protection Act of 1991 and the related regulations.
5.3 What is the authority’s general approach to enforcing the trade barrier regulations? How vigorously are the rules enforced?
Mauritius takes a robust approach to the enforcement of trade barrier regulations. As stated in Article 125 of the Customs Act of 1988, the director general of MRA Customs has, within the customs area, port premises, airport and freeport zones, the exclusive power to enforce customs laws and any other enactment insofar as the import or export of goods is concerned, including the power:
- to perform security checks;
- to question, detain and search persons; and
- to search their luggage and goods.
Violations of the regulations are subject to either administrative or criminal penalties.
Furthermore, specific trade barriers are enforced by specific authorities. For example, the Consumer Protection Act of 1991, which is enforced through the Consumer Affairs Unit, establishes that any person that contravenes the act or any regulations commits an offence.
5.4 How is a trade barrier action initiated in your jurisdiction and on what grounds?
The government of Mauritius, with the support of the International Trade Centre, has set up an online tool to facilitate the identification and elimination of barriers facing businesses. The Trade and Obstacles Mechanism Platform acts as a formal mechanism for monitoring and resolving trade obstacles. Obstacles that can be reported can relate to:
- regulatory procedures;
- procedural obstacles;
- administrative burdens;
- lack of information or transparency;
- discriminatory behaviour of officials;
- time constraints or delays;
- limited facilities;
- lack of international recognition; and
- unusually high fees.
Furthermore, domestic trade barriers can be challenged before a magistrate. The timeline will largely depend on the complexity and urgency of the matter.
5.5 What does the action typically involve and how long does it take?
As the trade barrier legislation is scattered throughout multiple laws and regulations, the actions against each specific trade barrier must be studied on a case-by-case basis.
The duration of cases relating to trade barrier provisions will depend on the workload of the court and the complexity of the case.
5.6 What measures can the authority take against a foreign trade barrier?
Mauritius has no specific laws on foreign trade barriers. However, Mauritius can make use of the World Trade Organization consultation and dispute settlement mechanisms for illegitimate foreign trade barriers. Additionally, most of trade agreements to which Mauritius is a signatory provide for the establishment of a monitoring committee to oversee the implementation of the relevant agreement. These committees can be used to lift trade barriers that might be applied by the other party.
Furthermore, the government of Mauritius, together with private sector associations such as the Mauritius Chamber of Commerce and Industry and the Mauritius Export Association, use soft diplomacy tools such as the Trade and Investment Framework Agreement between the United States of America and Mauritius to solve trade barriers that might be hampering the ability of Mauritian traders to access foreign markets.
5.7 What non-tariff trade barriers are imposed in your jurisdiction?
Certain goods may be subject to import controls and restrictions in the form of quantitative restrictions and other product-specific requirements. Restricted and controlled goods can be found in the Fourth Schedule of the Consumer Protection (Price And Supplies Control) Act of 2017. Moreover, with regard to certain essential products such as basic rice, wheat flour and petroleum, the only authorised importer is the State Trading Corporation. A comprehensive guide on all permits required for imports into Mauritius is issued by the Mauritius Chamber of Commerce and Industry.
Mauritius applies a series of export controls and restrictions although the list of products that are controlled or restricted when it comes to exports has been shortened. As per the Consumer Protection (Export Control) Regulations 2000, exporters require an export authorisation from the relevant authority before the goods will be allowed into the country. Pending such authorisation, the goods can either be detained at Customs or be referred to the concerned authority for approval. The products that are either controlled or restricted largely concern those that are deemed ‘strategic’ or ‘sensitive’ to the country, or that may be eligible for preferential treatment in importing countries.
There are also barriers regarding:
6 Sanctions
6.1 What laws and regulations govern sanctions in your jurisdiction?
The United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019 is the main law regulating sanctions in Mauritius. The act establishes the legal framework for the government of Mauritius to implement targeted sanctions and other measures imposed by the United Nations Security Council. The act also provides for the implementation of domestic sanctions, adopted independently from the UN Security Council. Other related laws include:
6.2 Which authority is responsible for enforcing the sanctions regulations? What powers does it have?
The National Sanctions Committee and the National Sanctions Secretariat are the two main authorities responsible for enforcing the regulations pertaining to sanctions in Mauritius. These were established under Sections 4 and 7 of the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019, respectively. They operate under the umbrella of the Prime Minister’s Office.
The National Sanctions Committee is vested with the power to identify any party that meets the criteria for designation as a listed party on a United Nations sanctions list, and can make proposals for the listing of a party to the United Nations Sanctions Committee. It can also direct the secretary for home affairs to declare a party as a designated party based on United Nations Security Council Resolution 1373. The National Sanctions Secretariat coordinates the development of, reviews and implements national policies and activities relating to sanctions; and makes recommendations to the minister for legislative, regulatory and policy reforms for the purposes of the United Nations Sanctions Act.
6.3 What is the authority’s general approach to enforcing the sanctions regulations? How vigorously are the rules enforced?
Mauritius adopts a robust approach to enforcement of the sanctions regulations. The National Sanctions Committee and the National Sanctions Secretariat are responsible for enforcing sanctions in Mauritius. The United Nations Sanctions Act provides that anyone that contravenes the act commits an offence and will, on conviction, be liable, where no specific penalty is provided, to a fine not exceeding MUR 12 million and to imprisonment for a term not exceeding 10 years.
6.4 What countries are currently subject to sanctions in your jurisdiction?
According to the performance report of the National Sanctions Committee for the period 1 July 2020 to 30 June 2021, the following countries feature on the list of notices disseminated over the same period:
- Central African Republic;
- Democratic Republic of Congo;
- Iraq;
- Somalia;
- Yemen;
- Sudan; and
- Libya.
6.5 Are individuals or companies subject to sanctions in your jurisdiction?
The United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019 applies to any designated party who is a citizen or resident of Mauritius, or which is registered or incorporated in Mauritius. Listed parties also include those identified by the United Nations Security Council through the United Nations Security Council Consolidated List.
6.6 How are sanction decisions challenged in your jurisdiction? What does this process typically involve and how long does it take?
A listed party who is a citizen or resident of Mauritius, or which is incorporated or registered in Mauritius, can submit a request to the National Sanctions Secretariat to take such measures as per the relevant United Nations Security Council resolution for removal as a listed party from the relevant United Nations sanctions list.
If the National Sanctions Secretariat is of the view that a listed party does not meet the criteria for designation as a listed party, it will submit a request for delisting to the relevant United Nations sanctions committee. However, the National Sanctions Secretariat may also consult other relevant states or United Nations entities before issuing its decision. Alternatively, a listed party may submit a petition for delisting directly to the Office of the Ombudsperson or to the UN Focal Point for De-Listing created in 2006 by the secretary general at the request of the UN Security Council (see Security Council Resolution 1730 (2006)), as the case may be. In this case, the Office of the Ombudsperson will refer the case to the office created by United Nations Security Council Resolution 1904 (2009) to review requests from listed parties seeking to be removed from the ISIL (Da’esh) and Al-Qaida Sanctions Lists.
6.7 What strategies should be considered to ensure compliance with a sanction decision? What penalties are imposed for non-compliance?
The United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019 allows the Mauritian government to apply targeted sanctions such as arms embargoes, travel bans and financial sanctions, as well as other measures imposed by the United Nations Security Council under Chapter VII of the United Nations Charter. The act targets threats related to:
- terrorism;
- the proliferation of weapons;
- money laundering; and
- international peace and security.
Individuals and entities that become listed parties can be subject to travel bans and the freezing of assets and financial and economic resources that are owned or controlled either directly or indirectly by the individuals or entities.
Anyone that contravenes the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019, where no specific penalty is provided, may be subject to a fine not exceeding MUR 1 million and to imprisonment for a term up to 10 years.
7 Trends and predictions
7.1 How would you describe the current legal landscape and prevailing trends affecting international trade in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms or the negotiation of new trade agreements?
The government of Mauritius has undertaken numerous reforms to simplify the framework for trading, investing and doing business in the country. The country’s legal and regulatory framework is favourable to international trade and Mauritius has consecutively ranked first in Africa for ease of doing business for over a decade.
The Business Facilitation (Miscellaneous Provisions) Act 2017 and the Business Facilitation (Miscellaneous Provisions) Act 2019 were amended to further improve the business landscape in Mauritius. The trade infrastructure is also undergoing revisions, including:
- the introduction of electronic systems for the processing of import and export permits; and
- the establishment of a coordinated border management mechanism.
It is expected that a consolidated trade remedies law covering anti-dumping, countervailing measures and safeguards will be introduced in the National Assembly once the draft legislation has been finalised.
With regard to trade agreements, Mauritius began negotiations on a preferential trade agreement with Indonesia in 2019, making it the first trade agreement between Mauritius and a member of the Association of Southeast Asian Nations.
The government has also signed double tax agreements with 46 countries. Five of these agreements are awaiting signature and another 20 are in the process of being negotiated. Mauritius has also signed investment promotion and protection agreements with 45 countries, 30 of which are currently in force.
8 Tips and traps
8.1 What are your top tips for ensuring compliance with the regulatory framework for international trade and what potential sticking points would you highlight?
Although the legal landscape governing foreign trade continues to evolve, traders can consult the country’s trade information portal, Mauritius Trade Easy, for details of how to export to or import from the country. The portal serves as a one-stop shop for information on import and export procedures, trade agreements and so on.
Mauritius has a robust regime governing its international trade relations with foreign countries. Businesses considering doing business in Mauritius should analyse the specific trade barriers and requirements applied by Mauritius to their specific sector. For example, exporting fruits and vegetables to Mauritius is an arduous process, as the authorities apply stringent health checks and controls. Before exporting, businesses should regularly check the relevant trade information sources for up-to-date details on the relevant issues and seek advice from qualified professionals when dealing with specific situations.
The content of this article is intended to provide a general
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