Customs Taxation Course for Tax Inspectors

NATIONAL SCHOOL OF ADMINISTRATION

(ENA)

Customs Taxation Course

(to the attention of the Tax Inspectors)

Prepared and presented:

Sékou Célestin MAIGA
Customs Inspectors

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 Customs Taxation Course for Tax Inspectors

SUMMARY
I. PRESENTATION OF THE TAX ADMINISTRATION 3
1.1. Missions of the Customs Administration.............................. 3
1.2. Activities of the Customs Administration 4
1.3. Organization Chart of the General Directorate of Customs 4
[Link] the central level 4
[Link] the regional level 5
[Link] the local level 6
1.3.4. At the Outside Level 6
1.3.5. The Legal and Regulatory Framework Relating to Procedures
Customs officers: ...................................................................................
II. CUSTOMS TAXATION PROPER... 8
2.1. Generalities 8
[Link] of Application of Customs Law.. 8
[Link] Rights and Taxes 8
2.1.3. Definition and Functions of Customs Law 9
2.1.4. Form of Customs Law 9
2.2. The Customs Tariff 10
[Link] 10
[Link] Presentation 10
2.2.3. Conditions for applying the tariff law......... 10
2.2.4. The tariff regimes............................. 11
a. Preferential tariff regimes 11
b. Common law tariff regime (TEC)................. 12
[Link] 12
III- THE ELEMENTS SERVING AS A BASE FOR THE TAXES
CUSTOMS
3.1. The Tariff Species of Goods... 14
3.2. The Value of Goods 15
3.3. The origin 17
IV. THE VALUE ADDED TAX ON IMPORTATION (VAT).... 17
A. Generalities:............................................................................................................. 17
[Link] IES 19
5.1. Generalities 19
5.2. Application modalities 20
[Link]
yao
rF
an
esrchi 20
B. The definitive franchises 20
VI. CONTROVERSIAL PROVISIONS 21

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 Customs Taxation Course for Tax Inspectors

I. PRESENTATION OF THE TAX ADMINISTRATION

1.4. Missions of the Customs Administration

The General Directorate of Customs (DGD) is responsible for implementing and enforcing
the legislative and regulatory provisions applicable to the movement of persons,
merchandise, means of transport, and capital at the entry and exit of the territory.

This action is carried out in vast and varied areas that revolve around 3 missions.
main:

Tax mission,
Economic mission,
Protection mission.

Tax mission

This mission translates to:

the mobilization in favor of the Treasury (State) of financial resources received from the
international commerce
the diversity of rights and taxes (PC and PCS) UEMOA, ECOWAS.

Economic mission

Translating by:
the establishment of a conducive environment for economic activity through the implementation of
appropriate procedures for support and environmental sanitation of
the company through the protection of the economic space,
the development of Foreign Trade statistics,
the promotion of investment through the granting of economic regimes in suspension of
rights and taxes.

Protection mission

The intervention capacity of the Customs Administration throughout the territory,

the extent of its investigative powers and means has encouraged public authorities to
entrust this Administration with a very broad protective role sometimes in collaboration or
on behalf of other administrations.

Public health protection:

notably the search and repression ofdrug trafficking
the control of pharmaceutical products (human medicine and
veterinarian)
the sanitary and phytosanitary control of animals and plants
imported.

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 Customs Taxation Course for Tax Inspectors

The protection of public safety:

Security control at airports,
Repression of weapons and explosives in the context of the fight against terrorism
Consumer protection:
Control of compliance with technical safety standards on devices,
machines, tomatoes, and food products.
Environmental protection:
Control of the application of the Washington Convention on Trade
International Convention on the Conservation of Endangered Species of Wild Fauna and Flora
(CITES).
The protection of cultural heritage:
Surveillance of the export of works of art and artistic goods.

1.5. Activities of the Customs Administration

The main activities carried out by the Customs Administration can be summarized as follows:
the development of legislation and regulation in the field of customs;
the customs clearance of goods;
the fight against fraud and the surveillance of the territory;
the production of customs statistics for the development of statistics
foreign trade
support to other administrations for the implementation of specific regulations:
- and all activities carried out in support of those mentioned above: the management of
resources, communication, execution control of the service, etc.
The 'clients' of these activities are mainly the economic operators and those who
import or export goods and services on other occasions.

1.6. Organizational chart of the General Directorate of Customs:

The organizational chart of the General Directorate of Customs, presented below includes:

1.6.1. At the central level THE GENERAL MANAGEMENT: the

General Director and his Deputy:

She is responsible for designing and developing the activity program and the action plan of
the entire service, to coordinate and control the activities entrusted to the different
structures techniques.

The coordination and control activity of the General Management is carried out through:
a prior instruction power concerning the content of the decisions to be made and
activities to be carried out;
a right of post hoc instruction on decisions through the exercise of power
of approval, reformulation, and evaluation;

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three structures (3) placed Staff: in the areas entrusted to them:

oThe Internal Control Office: responsible for monitoring the functioning of structures
service of prospective studies aimed at improving organization and performance
of service and monitoring evaluation of the reforms implemented.
oThe Studies, Support, and Communication Office: Responsible for assisting the General Director
Customs in terms of study and design, to develop and implement
the communication and public relations program and ensuring the welcome
the orientation of the service usage.
otheTraining and Improvement Center: responsible for identifying needs in
training and improvement of agents.

Seven (7) online directions are:

The Information and Statistics Department in charge of the development and implementation of
the policy on service and programs regarding computerization, to ensure the
transposition of regulations and customs procedures to the IT level
and the processing of statistical data.
oh Direction Administration of Human Resources, Finance, and Equipment: In charge of the
management of personnel and equipment, the preparation of the operating budget, of
mail and the supply of the service in equipment and supplies.
oha Directorate of Regulatory Affairs, Litigation, and International Relations; responsible for
the development of customs regulations and the management of relations
International.
Direction Recipes Planning and Verification Program responsible for the development of the
Revenue forecasts from the implementation of action programs in the area of
liquidation of the collection of rights and taxes as well as programs of
verification and finally the maintenance of the accounting of customs revenues.
oha Control Direction after customs clearance, responsible for controlling the payable operations,
of the control of commercial operations to investigate, establish, and pursue the
infractions related to exemptions, to the regulations of the agents and to
money laundering.
Direction Facilitation and Partnership with Companies, responsible for the development and
implementation of the Customs Directorate's program regarding facilitation
and assistance to businesses, to apply the investment code and
specific conventions and to proceed with the implementation of procedures
personalized.
OHAS Directorate of Intelligence and Customs Investigations, responsible for the development and implementation
in the implementation of the master plan to combat fraud and other illicit trafficking,
Fight against narcotics and acts of terrorism.

1.6.2. At the regional level THE DIRECTION

REGIONAL CUSTOMS

The Regional Directorate is a decentralized subdivision of the General Directorate of

Customs with territorial jurisdiction. It is under the authority of a Director.
regional in charge of:

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to transmit the instructions and directives from the General Director to everyone
customs structures established in the region and on which he exerts a
hierarchical and disciplinary power;
to control their application;
to coordinate and control the activities of all customs structures
located in the administrative region;
to represent the General Management at the regional levels.

The customs territory is currently divided into nine Regional Directorates. These are the
Regional Directions of Kayes, Koulikoro - District of Bamako, Sikasso, Ségou, Mopti, Gao
Tombouctou - Kidal.

1.6.3. At the local level

THE OFFICES, BRIGADES AND POSTS OF CUSTOMS.

The customs offices are functional units corresponding to open spaces for
economic operators wishing to carry out customs clearance operations for goods
imported or to be exported.

They are divided into four (4) categories:

or full-service offices or main office;

or specialized offices;
or secondary offices;
the posts manage a recipe.

The system established to ensure the customs clearance of goods consists of a

set of fifty-four (54) customs offices, distributed across the entire territory
national (i.e. 16 main offices, 6 specialized offices, 15 secondary offices and 17 posts
managing a recipe.

The brigades and watch posts are responsible for monitoring the territory (in order to
ensure the regularity of the situation of people and goods in relation to the
customs regulations) and the investigation of fraud.

The mechanism responsible for this activity includes a set of eighteen (18) fighting structures.
against fraud (20 Mobile Intervention Brigades and 24 surveillance posts).

1.6.4. At the Outdoor Level

The geographical position of Mali (a landlocked country) has led the authorities to seek to
develop customs cooperation by creating external services made up of
Representations of the Mali Customs in the service ports of Mali.

The representations of the General Directorate of Customs in the ports are responsible for,
relationship with the customs administrations of the host countries to ensure compliance of
transport operations of goods shipped to Mali as well as those of
export products transiting through these ports.

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These External Services are:

Representation of the Mali Customs at the Port of Abidjan;

Representation of the Customs of Mali at the Port of Dakar;
Representation of the Customs of Mali at the Port of Conakry;
Representation of the Customs of Mali at the Port of Nouakchott;
Representation of the Customs of Mali at the Port of TEMA;
Representation of the Customs of Mali at the Port of Lomé;
Représentation des Douanes du Mali au Port de Cotonou.

1.6.5. The Legal and Regulatory Framework Related to Customs Procedures:

For several years, the Customs Administration of Mali has been operating in a context
characterized by the coexistence of several legislative texts.

Regulation No. 9/CM/UEMOA of November 26, 2001 adopting the code

of the Customs of the West African Economic and Monetary Union
(UEMOA) ;
The 1975 Treaty Establishing the Economic Community of the States
from West Africa (ECOWAS);
Law No. 01-75 of July 18, 2001, concerning the Customs Code of the Republic of
Mali
The World Trade Organization Agreement on Customs Evaluation
which establishes transaction value as the basis for customs valuation;
The Agreement of the World Customs Organization (WCO);
The Bali Agreement on Trade Facilitation (TFA) reached in December 2013 during
from 9eMinisterial Conference of the WTO.

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 Customs Taxation Course for Tax Inspectors

II. CUSTOMS TAXATION PROPERLY SAID

2.3. Generalities
2.3.1. Scope of Application of Customs Law
The vocation of customs law has curiously evolved very little since its origins. Of the activity
economic in general, it only retains that which concerns goods. Operations
they are subject to it requires that they present the characteristics of an international exchange.

Operations on goods
The leraThecharacteristic of customs law is to regulate the movement of goods and
exclusively goods.

On the other hand, customs law shows a total indifference towards services (bank,
transport, insurance, technology transfers) that remained invisible, therefore unable to
to be seized by Customs while crossing a border.

If he rejects the idea of taxing these services, he is not always indifferent to their existence.
Thus, for example, the cost of transportation will be added to the purchase price until it enters the
customs territory.

Example:
The royalties owed by the importer to their supplier for the use of the trademark or
The fees must be included in the customs value insofar as the service constitutes
the accessory of an operation concerning goods.

International exchange
The primary justification for the intervention of customs officers lies in the pressing necessity of
control the goods that cross the territory upon their entry or exit.

Regardless of whether this movement leads to the perception of rights or not: even benefiting
of a customs franchise, a suspension of duties or a zero rate, the goods must
respect the customs regulations.

From this approach, we first notice:

That customs law is, in principle, unconcerned with the legal support of the operation.
which gives rise to the transfer of the goods, whether it is a sale, a loan or
of a gratuitous act. Only the physical transfer of the goods matters:
That the notion of customs territory is essential since it is of clearance.
from the border depends the application of customs rules.

2.3.2. Applicable Rights and Taxes:

Under the terms of Article 4 of the Customs Code, the "goods that enter the territory
Customs officers or those who exit are subject to import duties and tariffs as applicable.
exportation registered at the Customs tariff. Distinctions are made:
Import duties
Upon importation, import duties include:

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protective rights that strike, depending on the origin, the goods placed on the
consumption either as a result of direct importation or as a result of regimes
economic;
the tax rights that apply to all goods regardless of
their origin or their provenance placed on the market in the customs territory
either as a result of direct importation, or as a consequence of any economic system;

Various levies applicable to goods in the...

conditions set by the texts that establish them.

Export rights
Upon export, goods are subject to the payment of applicable duties and taxes.

Note: Since November 1990 (Decree No. 90457/P-KM of November 8, 1990) the rights and taxes on
Theexportshavebeensuspended.

• Various Rights and Taxes collected by the Customs Administration:

Imported or exported goods may be subject to other taxes, duties and
contributions for which the Customs administration may be responsible for collection. Except
contrary provisions of the text establishing them, these taxes, duties, and contributions are
liquids and recovered and the offenses observed, prosecuted, and punished as in
customs matter.

2.3.3. Definition and Functions of Customs Law

Definition
Customs duty is a tax imposed on goods imported (or exported).
in accordance with the tariff law and under the conditions provided by customs legislation.

Functions
At importation, the customs duty is intended to protect national production by aligning the
price of products coming from abroad on the domestic market rates.

When exporting, customs duty ensures the protection of the national consumer by slowing down
the export of products that are in high demand on foreign markets. It thus prevents
that a situation of shortage generating a rise in prices does not arise in the internal market.

2.3.4. Form of Customs Law

Most customs duties are ad valorem. It is a more or less high percentage of the
value of goods that is withheld under customs duty.

It is worth noting, however, that certain goods are taxed by the liter, by weight (kg/net), that is to say at
specific elements. This is the case for petroleum products that pay taxes
following:
,

•TITP: Internal Tax on Petroleum Products, its rate is indexed on kg/net. Its
The rate is set by a decree from the Minister of Economy and Finance each month.
(price structure).

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 Customs Taxation Course for Tax Inspectors

RER: Road Maintenance Fee that applies to all fuels used on the road
Essence Gaz Oil. Its rate is 25F per liter. It is a pre-fix tax.

2.4. The Customs Tariff

2.4.1. Definition

The Customs Tariff is the document in which the duties and taxes to be collected are indicated.
The legal basis of the tariff is constituted by a law adopting the Common External Tariff.
(TEC) or by Decision A/DEC. 17/01/06 of the conference of Heads of State and
ECOWAS Government adopting the Common External Tariff of ECOWAS.
But this work does not simply reproduce the tariff law; it is also a usage tariff designed by
the Administration with a view to practical use including, in addition to the table of rights, the
elements of the Statistical Nomenclature and the different taxes and references to
specific regulations for certain products.

2.4.2. Material Presentation

The rate includes:

the general, special and various rules necessary for the interpretation of the tariff;
the section notes;
the chapter notes.

It should be noted that the classification according to the tariff category is legally determined based on the
terms of positions and section or chapter notes.

For any information regarding the sale of the price list, please contact the Management.
Customs General.

2.4.3. Conditions for the application of the tariff law

According to the condition of the goods: (art 23 Customs Code)

According to Article 23 of the Customs Code (CD), imported or exported products are
subject to the tariff law in the state where they are located at the time it becomes applicable to them.

Specific rights are collected without regard to the relative value or degree of preservation of
marchandises.

The tariff category to declare is therefore the one that corresponds to the characteristics that the
Goods present at the time of filing the declaration detailing them.

When in the same shipment, goods have been damaged as a result of events
occurred before the detailed declaration was registered, the Customs service can in
authorize the separation.

Damaged or deteriorated goods must then be:

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• be destroyed immediately;
or re-exported;
• or be redirected within as applicable;
they should be taxed according to their new status.

The tariff category to declare is therefore, also in this case, the one that corresponds to the state.
effective goods at the time of filing the detailed declaration.
By way of exception to the principle defined in Article 23 of the Customs Code, the packages containing
goods are classified with the latter when they are of the type normally used
for this type of goods.

However, this provision is not mandatory when the packaging is likely to be

used validly in a repeated manner.

•According to the fixed taxation (Art 9 Customs Code)

The Customs Administration may collect a flat fee covering all duties and taxes.
Goods lacking any commercial character are not permitted.
small shipments addressed to individuals or contained in the luggage of travelers.

The flat tax referred to above (Art 9) is collected at the rate set by law as in
customs matter and according to the conditions set by the Order of the Minister in charge of Customs.

2.4.4. Tariff regimes

Tariff preferences are linked to the origin of the goods, which according to Article 29 of the Code.
Customs is a taxation element.

Indeed, Article 24 of the Customs Code stipulates that the basis for duties and taxes as well as the
The applicable rates are determined among other factors by the origin.

Similarly, Article 29 of the Customs Code states "upon importation, duties and taxes are
"perceived according to the origin of the goods." Thus, we distinguish:

a. Preferential tariff regimes

As part of the establishment of the common market of UEMOA and ECOWAS, it has been
established two preferential regimes.

The Community Preferential Tax (TPC)

Applicable in trade exchanges between the member States of the UEMOA to products
following origins:
Products fully obtained;
Products that have undergone sufficient processing or transformation
Industrial products.

The ECOWAS Trade Liberalization Scheme (TLS)

ECOWAS has taken strong inspiration from the rules of origin adopted by UEMOA to define the
origin criteria applicable to products exchanged between Member States. This is how are
considered as originating from ECOWAS:

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locally produced goods and traditional crafts from the States

members of the community ;
industrial products obtained entirely from materials
originating from ECOWAS, or failing that, whose subjects
Community primaries represent at least 60% of the total
raw materials used in manufacturing, or finally whose value
added is at least equal to 35% of the ex-works price excluding taxes

b. Common law tariff regime (TEC)

The Common External Tariff (CET) is a uniform Customs Tariff of member States.
of UEMOA and ECOWAS apply to imports from third countries. It is
composed of: (i) a tariff and statistical nomenclature (TSN), (ii) a table of rights and
taxes.

Tariff and Statistical Nomenclature (NTS)

It is a common customs nomenclature based on the Harmonized System of designation and
on the codification of goods (HS) of the World Customs Organization (WCO) adopted
by ECOWAS and UEMOA.

It consists of two (2) distinct elements:

First of all, it includes a list of products classified by order of specialization.
accrue in sections, chapters, positions, and sub-positions;
Then a set of general rules designed to facilitate the interpretation of the list.
of products subject to the nomenclature, as well as section notes or
chapters.

The products listed in the tariff and statistical nomenclature are divided into five (5) categories.
categories designated as follows:
Zero rate categories (0): Essential social goods falling under a limited list;
Category 1: Basic necessities, equipment goods, raw materials
bases, the specific inputs;
Category 2: Inputs and intermediate products;
Category 3: Final consumer goods and other products not covered elsewhere;
Category 4: Specific assets for economic development.

The list of goods making up each category is established by means of regulation by the
ECOWAS.

The tax base for the application of the Common External Tariff (CET) is AD VALOREM

Table of Rights and Taxes Applicable to Imported Products from Third Countries
in the Community
The table of rights and taxes includes:
a. the Entrance or Door Fees constituted:
The Customs Duty (CD) at rates of 0%, 5%, 10%, 20%, and 35% corresponding
respectively to categories 0, 1, 2, 3, and 4;
The Statistical Fee: (SF) at a rate of 1% applicable to all the
exempt or non-exempt goods;

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the Community Levy (CL) at a rate of 0.5% benefiting ECOWAS, applicable

to products originating from third countries;
the Community Solidarity Levy (PCS at a rate of 0.8% for the benefit of UEMOA
applicable to products originating from third countries. '

Note: In the future, the PC and the PCS will be replaced by the community integration levy (PCI).
waiting for the conference of Heads of State and Government of ECOWAS decided to maintain the status quo
for a period of five (5) years during which the convergence towards a single rate will be organized.

Indeed, during this transitional period, the member countries of UEMOA will continue to apply,
on behalf of ECOWAS, the Community Levy (CL) at the rate of 0.5% and on behalf
from UEMOA, the Community Solidarity Contribution (CSC) at a rate of 0.8%.

Eventually other entrance rights to know:

The import adjustment tax (TAI) is a temporary levy with a rate
variables ;
The applicable rate is the difference between the customs duty specified in the ECOWAS CET and
the customs duty set in the national tariff, when the customs duty recorded in the TEC
ECOWAS is lower than that recorded in the national tariff.

The supplementary Protection tax (TCP) is a temporary levy and is

variablerates.
It is an additional tax that a State can collect in one of two (2) scenarios.
following:
when the increase in the volume of imports of a product on the customs territory of the State
during one year is greater than or equal to 25% of the average of the imports of the said
products over the last three (3) years for which data is available.
when the average price CIF of importation of a product in the customs territory of the State,
the exchange rate for a given month, expressed in national currency, falls below 80% of the average of the
CAF price for importation over the last three (3) years for which data is available.

NB: States are free, for the application of the TCP, to set the rate level in accordance with
their commitments to the WTO.
Thus, when the TCP is established, its duration of application cannot exceed two (2) years.

[Link]érieures

They are made up of:

Value Added Tax (VAT)

Tax collected under domestic regime for the benefit of the Tax Authority in order to restore price parity
between imported foreign products and domestic products.
Its perception is ensured by Customs not only by the support it provides to others.
administrations on the occasion of foreign trade operations that it is called to control but also
and especially for reasons of convenience and logic based on the desire to understand in one act
unique and at the lowest cost the generating event of customs duties and tax fees.

Special Tax on Certain Products (ISCP)

As part of the harmonization of tax legislation aimed at achieving coherence of

internal taxation systems, and to ensure equal treatment of economic operators
within the WAEMU, excise duties (or specific taxes) have been instituted applied to
certain products including:
Alcoholic or non-alcoholic beverages;

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The tobaccos;
Café
Cola
Wheat flour;
oils;
Tea;
Weapons and ammunition;
Perfumes and cosmetics;
Plastic mat sachets;
Marbles;
Gold ingots;
Precious Stones;
Tourist vehicles of 13 horsepower.
Generating event
The generating event of the ISCP is constituted
for imported products, by making them available for consumption in Mali in the sense of the
customs regulation;
for national products through the delivery of goods.
The withdrawals made by manufacturers for their own needs.

Base taxable
The taxable base of the ISC¨P consists of:
The customs value for imported products.
The turnover excluding taxes for domestic products.

Litigation
The ISC on imported products is declared and collected under the same conditions as the
customs duties.
The offenses concerning them are also identified, prosecuted, and punished as in
customs duties matter.

c. Specific Regimes

These are exceptional regimes to the common law regimes. These are regimes intended for
special operations or privileged operations. They take into account quality
uses (States, Diplomats, Investors, etc.) or the nature of the goods (donations)
movements etc..)
The goods, products, or materials that benefit from this are subject to a privileged taxation.
a derogatory rate, meaning a reduced tax or exemption (partial or total) from duties
and taxes normally due.
Example: diplomatic privileges, exceptional privileges, etc....

III. THE ELEMENTS SERVING AS A BASE FOR CUSTOMS DUTIES

3.4. The Tariff Species of Goods
Definition
The tariff classification of a good is the designation assigned to it by the tariff of
customs (article 25 Customs Code).
Interest of the species
The tariff classification is an essential element for the application of duties and taxes. It conditions:

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the applicable customs duty rate;

the application of other taxes and customs measures for a specific good
production of a certificate, necessity of a health visit, requirement of a document
determined foreign trade control etc.). Indeed, the lists of products for
which a document is required or whose customs clearance is subject to a formality
any are established in tariff terms (tariff number and literal designation of
merchandise);

the preparation of Foreign Trade statistics,

Determination of the tariff species
The tariff classification of a commodity is facilitated by the presentation of the tariff itself where the
merchandise is categorized not in alphabetical order but in a way
methodical.

Indeed, the customs tariff includes general rules for the interpretation of the
tariff nomenclature, which notably sets the classification conditions of the items
composites.

Finally, each chapter of the tariff includes preliminary notes that guide the user on
the exact content of the chapter considers.

Despite these indications in the tariff, the tariff classification of a good can sometimes
present some difficulties. To help importers or exporters of Notes
explanatory notes on the nomenclature of the Harmonized System (HS) have been issued by the WCO. This is
of a comment often very detailed fixing the exact content of each main position of the
nomenclature of the SH. However, it may be that despite consulting these notes, an importer
may not be able to classify its goods in the Customs tariff, the Administration has provided
a procedure for the importer (customs broker) to declare knowledge
The applicable tariff item for a good must submit a request before importation.
classification opinion from the General Directorate. This request is accompanied either by a
sample, such as a brochure, a photo, etc.. Providing all the useful information about the
composition of the product, its mode of presentation.

The person concerned may or may not follow the advice given by the administration on this matter.

3.5. The Value of Goods

Interest of Value

The rights set out in the Customs tariff (Import and Export) are ad valorem rights,
The customs value of goods forms the basis for these duties and many other taxes of which
The Customs service ensures the clearance.

In addition to taxation, the accurate declaration of the value of goods is important.

for the implementation of various measures such as foreign trade and exchange as well as the
keeping reliable statistics of foreign trade.

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The declaration of value is mandatory even when the goods are not permissible.
of ad valorem duties.

• Determination of the value of imported goods

Legal basis
The customs value of imported goods is determined by Regulation No. 05/99/CM-
UEMOA du 06 août 199 qui a repris le code de mise en œuvre de l'article VII de l'Accord
General Agreement on Tariffs and Trade (GATT) or Code of the World Organization
World Trade Organization (WTO) of 1995.

The implementation modalities were set by decree n°02-2589/MEF-SG of December 31.

2002.

• Customs valuation rules

has transactional value

The elements taken into account for determining the declared value for assessment
of rights is the transactional value that is to say the price actually paid or to be paid after
adjustments of a number of elements that can: (i) either be added; (ii) or be
deduced; (iii) either to be indifferent.

This value applies today only to imported and declared goods.

directly and in detail for consumption.

Other methods to use for determining value

Substitution methods can only be used in one of the following two cases: (i) in
absence of transactional value; (ii) in the event of rejection of the transactional value.
In any case, assistance to the methods of substitutions is carried out in the prescribed order.

Substitution methods include:

■ Comparative methods: Consist of 2 sub-methods: Transactional value
identical goods; Transaction value of similar goods.

• The Deductive Method: Taking as a calculation basis the corresponding unit price
to
selling price.

• the Calculated Method: Based on the components of the price, namely the costs of
producers communicate by the producer of the considered merchandise (provided that
that the producer is willing to provide the data.

• The so-called last resort method: (Used vehicle argus)

Declaration and justification of the declared value

Any declaration of value must be supported by an invoice. In addition to the invoice, Customs may
demand the production: of market contracts; the detailed notes of the value and the declaration of
elements related to value (DEV).

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3.6. The origin

Definition
The country of origin of a product is where that product was harvested, extracted from the soil, or manufactured.
29-1 of the Customs Code.
The term rules of origin refers to the conditions under which the origin of products is determined.
determined.
We distinguish:
ECOWAS rules of origin;
the UEMOA rules of origin;
Products fully obtained;
Products that have undergone sufficient processing or transformation;
Industrial products of origin;
The rules of origin in CEE/ACP relations;
the origin with the Third Countries (TEC);
the interest of the notion of origin;
■ the origin is a tax element (Art 29 CD);
The origin is an element for the application of external trade measures and charges;
The origin plays an important role in the development of customs statistics.
The justification of origin is materialized by the production of a Certificate of Origin.

IV. THE VALUE ADDED TAX ON IMPORTATION (VAT)

B. Generalities:
In order to ensure equality of the tax burden between imported products and those that
are manufactured in Mali, goods coming from abroad are subject to
payment of VAT on imports.
C. Terms of collection of VAT on Imports:
(i) Generating Event: The generating event is defined as the event that gives
birth of the State's claim. The taxable event for VAT is constituted for the
imports by crossing the customs barrier, regarding goods
placed under one of the suspensive regimes of rights as well as under the deposit regime of
customs, the triggering event occurs at the time of the release for consumption of these
merchandise.
(ii) Enforceability: enforceability is the quality acquired at a given moment by this same
claim can be recovered without delay through all legal means.

(iii) Base aim position: the definition of the value used as the basis for VAT and
certain fiscal and parafiscal taxes are based on the assessment rules set out in
Article 31 of the Customs Code and the decree No. 02-2589/MEF-SG of December 31, 2002
with very sensitive particularities that are of several kinds:

a) taxes, dues, levies, and other taxes: Due to

of the import (with the exception of the VAT itself are to
understand in the tax base (DD+RS) expired.
In other words, VAT is calculated on importation based on the increased value.
customs duties and customs stamp tax (RS) sometimes other taxes.
Example: Goods imported from France: sold CAF (value 50316 FCFA; DD=20%
TVA=18%RS=1%
DD = 50316 FX 20% = 10.063 F
RS = 50316Fxl% = 503.15F
VAT = (50316 + 10.063 + 503.16) x 18% = 60469F
100
b) Regarding the location of the assessment for the calculation of VAT, the price at
declared is the price charged plus freight and insurance up to the destination
introduction on the customs territory;

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c) Purchase commissions are to be included as incidental costs in

the taxable base for import VAT.

VAT Rate:
the rates are as follows:
Zero rate = 0
Reduced rate = 5%
Normal rate 18%

The rate in effect is the one in effect on the date of registration of the declaration of putting into service.
consumption.

Suspension of VAT through the Use of a Suspensive Customs Regime:

(Transit Warehouses, Temporary Admission, industrial warehouses, etc..)
Indeed, when importing a product, it is possible to assign it a customs regime.
suspend its application, the collection of rights and taxes.

Justification of the VAT Payment:

Every importer must keep in their accounting, as proof of VAT payment,
the 'importer' copy of the declaration of release for consumption that was given to him at the end
customs clearance operation and on which the VAT settled by the Customs service appears.

VAT Deduction:
The importer, if liable for VAT, benefits from the right to deduction in the same way and
under the same conditions as if he had made his purchases on the domestic market.
The VAT that has been applied to the elements of the price of a taxable operation is deductible from the VAT.
applicable to this operation.
To this effect, the taxable persons are allowed to deduct from the amount of tax due on the transactions,
the VAT charged at the time of purchase or import.

At importation, payments related to VAT constitute in a way an advance that

The concerned party makes a payment to the treasury, with the possibility subsequently given to him to 'recover' the said tax.

Another particularity of VAT results from the fact that VAT on petroleum products is, in principle,
not deductible by the end user.

V. CUSTOMS FRANCHISES

5.3. Generalities

Definition
There is a tax exemption whenever taxes, duties and charges due on an asset,
an activity or a service is not perceived, in part or in whole, under a
express disposition

On the customs front, the duty exemption regime allows for the importation of goods into the territory.
national customs officer without having to pay the duties and taxes required due to importation

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 Customs Taxation Course for Tax Inspectors

Legal Foundation
This regime results from the provisions: Law: 2017/022 of June 12, 2017
of the Customs Code (Article 4,3 and 234 CD);
from the Order No. 08-3043/MF-SG of October 29, 2008;
international agreements;
of the Investment Code;
of the General Tax Code:
the Mining Code;
It is for occasional imports to which facilities are granted as a matter of course.
exceptional;

Scope of the Franchise

In general, and unless otherwise stated, the franchise covers:
Customs Duty (CD);
thePC;
thePCS;
the VAT.

Objectives
Tax exemptions appear as indirect subsidies corresponding to
the participation of the State to finance economic and social development activities
cultural.

In one word, the main objective of customs exemptions is to encourage realization.

actions in accordance with the national interest.

It is important to note that if the franchise is linked to a well-defined usage, it is prohibited, unless
special authorization from the Administration to use duty-free items for other purposes
that for which the franchise was granted.

Indeed, the objects admitted for exemption cannot in principle be sold or [Link] a title
free or charged without having paid the applicable rights and taxes at the time
from the sale to the loan.

Typologyoffranchises
We distinguish:

Type of exemption Content

1. 1. Diplomatic privileges and ■ Diplomatic privileges;
assimilated ■ Assistance techniques ;
■ Institutes and Schools (Florence Convention)
■ International and Regional Organizations
2. 2. Moves and effects ■ Move ■
personal belongings
3.3. Citations on the investment ■ Investment Code ■
ent Mining code
■ Contracted companies

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 Customs Taxation Course for Tax Inspectors

4. External financing Public procurement

Agreements and Projects
5. Donations and aids Donations to social works and development associations
Donations intended for the Red Cross
Social and cultural donations
Donations and aid to the State and its subdivisions
6. NGO
7. Exemptions
Exceptional.

5.4. Application procedures

Franchises can be temporary or permanent.

C. Temporary Franchises:

The temporary importation regime offers individuals who have their residence
normal outside the customs territory and who come to stay temporarily in this territory
customs officer and who come to stay temporarily in this territory, the possibility of importing into
franchise of all rights and taxes, their effects, personal belongings and non-utilitarian vehicles under
reserves, in particular, that they re-export these objects within a renewable period of 6 months
only time (article 211 of the D code):

6 months for tourists;

12 months for people in internship;
And at the end of their studies for the students.

For the application of this regime, the following is understood:

Normal residence, the place where a person usually resides, that is to say during
at least 6 months per calendar year due to personal ties and
professional.

D. The final franchises:

1. Diplomatic and consular immunities (art 234-1 CD):

By diplomatic and consular franchises, one must understand the privilege recognized to the missions.
diplomatic, to consular posts and accredited international organizations or having their
the headquarters in Mali as well as their staff enjoyed diplomatic privileges, for
their exclusive use of the exemption from duties and taxes on imported products.

The franchise generally covers household supplies and fuel.

Decree/2018.0595/[Link] of July 24, 2018): identifiable consumer goods
durable like refrigerators, stoves, air conditioners, furniture, etc.

Requests in franchise are made in the form of a verbal note endorsed by the head of the post and
addressed to the Protocol of the Republic.
2. Shipments intended for national or international solidarity works:
3. Effects and movable objects imported on the occasion of a change of residence:

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 Customs Taxation Course for Tax Inspectors

4. Effects and objects in use of Rousseau's legacy of pupils and students:

5. Objets offerts à titre de dons par les Gouvernements étranges aux Administrations
Publics:
6. Objects intended for public museums and libraries
7. Tools, instruments, and equipment from installations or industrial enterprises
agricultural or commercial
8. Military materials and equipment belonging to the State
9. Technical equipment for air safety
10. Medicines intended for the fight against endemic diseases
11. Medications for the modern veterinarian
Technical materials for atomic research
Scientific instruments intended for topographic service
14. Objects intended for the exercise of worship
15. Imported objects by travelers
16. Uniform clothing and equipment items intended for officials, magistrates
and military
17. Miscellaneous Objects
I

VI. CONTENTIOUS PROVISIONS:

Customs litigation is special in that it deviates from the ordinary rules of criminal law.
both with regard to the qualification of offenses and the determination of the penalties associated with them
attached, the competence, the procedure.

A customs offense is understood as any positive or negative act that violates laws and regulations.
who is subject to a penalty under the Customs Code.

There are only two (2) categories of offenses: crimes and contraventions, which are further subdivided.
same in classes.

Customs offenses
They relate to acts of smuggling, importation, or exportation without
declaration concerning prohibited or heavily taxed goods.

Are treated as prohibited imports, or as offenses:

(i) the false declaration of origin or provenance;

(ii) the false declaration in quality, species or value made with the help of
the production of false, inaccurate or incomplete documents;
(iii) the importation without declaration, by offices, of prohibited goods.

Customs violations
These are all the other offenses, including:
(i) the facts of smuggling of import or export without declaration concerning
merchandise that is neither prohibited nor heavily taxed upon entry;
(ii) false declarations regarding the value or origin of the imported goods or
exported or placed under a suspensive regime when a customs duty or tax
anyone is evaded or compromised;

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 Customs Taxation Course for Tax Inspectors

(iii) offenses related to the control before shipment of the quantity, quality, price and
of the tariff classification of goods.

The penalties
They consist of monetary penalties, imprisonment penalties, and additional penalties.
We distinguish:
the confiscation;
the fine;
-imprisonment, etc.;
the administrative sanctions taken by the Director General of Customs to deprive
Some beneficiaries of recognized schemes have been found to have abused these favors.

The transactions
The severity of the enforcement of customs regulations is tempered by the
possibility of transactions on convictions of special regimes, recognized to have
abused of these favors.
The transaction finds its justification in the impossibility of defining all cases of
contraventions quite precisely, on the way to applying to each penalty in exact relation
with their degree of severity, the Judges cannot either mitigate the penalties incurred,
do not excuse offenders based on intent.

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