Global Trade Alert

On 12 May 2010, Mozambique passed in the first reading in the National Assembly a bill introducing various export taxes and export restrictions. It was also passed in a second reading nine days later.
The bill proposed a surtax of 20 percent on the FOB price on the export of logs or stakes, 15% export surtax on wood that has undergone primary processing into sawn planks or boards, 5% on wooden railway sleepers or parquet squares and 3% on wooden crosspieces.
Species of hardwoods such as ironwood, jambirre and umbila, considered as 'first class' may not be exported as logs but must at the minimum, undergo primary processing. Only fully processed wood like wooden furniture can be exported free oftax. 
The revenue received is to be used for reforestation, strengthened inspection of the use of forestry resource, control of bush fires and for the general state budget. The tax is also to ensure that value addition is encouraged and jobs created in the local industry.
In 2009, bilateral trade in the affected tariff lines did not exceed the GTA minimum threshold of USD 1 million.