(Last updated: 1 Sep 2011)

Business etiquette

Business tips

Mauritians are more formal than Australians, especially in the public sector. First names should be avoided on first contact (unless you have corresponded in the past). Handshakes are freely used and are the standard form of greeting, although in certain orthodox circles this may not be practised with women.

Titles can be generally disregarded without offence, but it is preferable to use them (in abbreviated form) in correspondence. Where someone has more than one name (eg. Peter Chan Sui Ko), he is usually addressed as Mr Chan Sui Ko or Mr Chan.

Exchanging business cards is common practice, therefore have plenty with you.

Exchanging gifts is not normally practised in business; however, corporate gifts may be exchanged at Christmas time.

Mauritians prefer to be provided with brochures and CIF price lists.

Be punctual for a meeting although it may happen that your client/contact is some minutes late. If you are running late, however, do phone and advise that you will be late for your meeting.

Dinners and lunches with local representatives and customers help develop networks.

Business suits are generally recommended for business meetings but long sleeve shirt and tie are acceptable within many private companies.

Government purchases over a set threshold value are effected through the Central Procurement Unit and this process can be lengthy at times. In the case of the business community (private/corporate) this is not the case as they are free to shop around for the best deal.

Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and non-tariff barriers

Tariff

Mauritius has a three-column tariff based on the Harmonised System. Most duties are ad valorem, assessed on the CIF value and specific rates are assessed according to the specified unit of measure.

Customs duty is applicable on imported goods and the rates vary from zero to 65 per cent on the CIF value.  Under the Customs Tariff Act, the Customs Department administers numerous schemes of exemption and concession of duty to various sectors of agriculture, industry and travellers.

Drawback is allowed on goods that have been imported for the purpose of undergoing processing, and thereafter exported. Provisions are also made for the temporary admission of goods.

An excise duty is applicable on selected items (alcoholic beverages, motor vehicles, petroleum products, tobacco products) both at importation and on local manufacture (exports are exempt).

Preferential rates apply to imports from certain countries, eg. COMESA and SADC member states. To be eligible for the preference rate, goods must be accompanied by a certificate of origin.

Customs authority contact details:

Comptroller of Customs and Excise
Customs and Excise Department
IKS Building
Port Louis
Tel: +230 800 9200
Fax: +230 800 9400
Web: www.mra.gov.mu

Non-tariff barriers

Import restrictions

A few products are subject to import permits (Annex 3), mainly for health, security, environmental purposes and national interest. The Ministry of Commerce is responsible for the control of importation of these items in collaboration with other controlling agencies. Import permits normally require clearance from the relevant authorities, eg:

• Ministry of Agriculture for agricultural goods (the Plant Quarantine Service) and for animal products (the Veterinary Division)
• Ministry of Health for prepared foods, drugs, and chemicals with potential adverse effects on health
• Police for arms and ammunitions
• Ministry of Information for cinema films
• Mauritius Telecom for telecommunications equipment
• Ministry of Fisheries for fish and fish products

For certain strategic reasons, trade in some products is carried out by para-statal organisations. The State Trading Corporation (STC), the Agricultural Marketing Board (AMB), and the Mauritius Meat Authority (MMA) are the main para-statal organisations involved in the procurement and storage of certain products. The retailing is left to the private sector.

The STC is the only authorised importer of ration rice, wheat flour in bulk and petroleum products. The importation of luxury rice is entrusted to the private sector, and the importation of cement is shared between the STC and the privately owned Mauritius Portland Cement Company Ltd. Local oil companies distribute petroleum products.

The AMB holds monopoly and, in certain cases, monitors importation of agricultural products which compete with domestically produced goods for which there are marketing schemes and guaranteed prices, such as potatoes, onions, garlic, maize, turmeric, and cardamom.

Product certification, labelling and packaging

Product certification

The following import documents are required by customs:

• Invoice, showing the FOB and CIF value of goods
• Packing list
• Bill of lading / Airway bill
• Bill of entry
• Insurance certificate (if applicable)
• Certificate of inspection (if applicable)
• Certificate of origin (if applicable)
• Import permits (if applicable)

Labelling

General information:

• Gross and net weights should be shown in kilograms
• Origin of the goods must be shown on labels or on the goods themselves
• In January 2000, the Food Act was introduced, which lists requirements to be met by all players in the food industry

Packaging

Use of straw (excluding artificial straw) is prohibited.

Special certificates

As listed in the Food Act 2000.

Seeds, plants, fruit and vegetables require phytosanitary certificates issued by the approved authority in the country of origin. They also require a permit from the Ministry of Agriculture which lists the certificates to be produced and the conditions to be filled.

Quick-frozen fruit and vegetables require additional certification stating: 'The fruits or vegetables were blanched at 90-95°C prior to being deep-frozen.'

Livestock, meat and offal require a signed health certificate issued by a veterinary officer of the approved authority in the country of origin. In Australia this is usually the Australian Quarantine and Inspection Service, Commonwealth Department of Agriculture, Fisheries and Forestry-Australia.

The certificate accompanying meat, meat products and offal must carry an endorsement stating that: 'The meat was derived from animals, which originated in an area which after due enquiry and to the best of knowledge and belief of the government of Australia was found free for the past six months from major contagious/infectious diseases particularly anthrax, blackleg, bluetongue, swine fever and swine erysipelas.'

Methods of quoting and payment

Quotations should be CIF in Australian or American dollars. Payment is usually by irrevocable letter of credit with an internationally reputable bank.

Documentary requirements

Note: It is important that shipping documents should arrive before the goods. All merchandise must be fully entered within three days of its arrival.

Commercial invoice

No prescribed form.

Customs require two copies and the invoice must indicate the usual full details, including the HS number of the goods. The FOB and CIF values (Incoterms 2000) must be shown separately.

Fax signatures, other than those of rubber stamps, are acceptable.

For cotton piece goods, show volume in square metres.

Certificate of origin

All goods should be accompanied by an appropriate certificate of origin issued by the competent authority in the country of export. The statement need not be in French but can be in English, which is the official language.

Translation of French statement: 'It is hereby certified that the above-mentioned goods have been manufactured in .............. where their final process of manufacture has taken place and that no less than 50 per cent of their value, under the form of labour, materials and other manufacturing costs, originates in that same country. Signature of exporter.'

Bill of lading

A copy of the bill of lading covering the goods mentioned in the import entry document must be attached to the entry. This copy will be retained by the Comptroller of Customs, so shippers must ensure that they forward copies to their importer.

If a copy of the bill of lading is not available, or is incomplete, a certificate from the agent of the importing vessel giving the required data is to be reproduced and submitted instead.

It must show the tonnage of the goods, or their weight and measurements, and also the freight paid or payable on such goods.

Insurance

Normal commercial practice.

Public health requirements

An import permit is essential for livestock, plants, vegetables, fruit and parts thereof (except dried beans and similar items).

Plants are subject to special instructions.

Livestock is quarantined for up to three weeks.

The Mauritian Ministry of Health is responsible for the import of pharmaceutical products.

Recommendations set out in the Food Act 2000 need to be followed.

Strict regulations govern the import and sale of pesticides.

Weights and measures

The metric system.

Taxation

Goods and services imported and supplied in Mauritius are charged with a Value Added Tax of 15 per cent, which is refundable when the product is exported. Exemptions include basic foodstuffs; animal feeding stuffs (other than prepared pet food); printed books, brochures, leaflets and periodicals; water and ice, not treated or mixed with any other goods; medicines, fuels and fertilisers.

Income tax

Mauritius runs a self-assessment system based on the residence concept. A person resident in Mauritius is liable to tax on the worldwide income derived by that person. A non-resident is taxed on income derived from sources in Mauritius. However, earned income derived from overseas by an individual resident in Mauritius is taxable to the extent it is remitted to Mauritius.

Income tax is payable on income derived in the preceding year. The fiscal year runs from 1 January to 31 December.

Corporate tax

Bodies of persons subject to corporate tax are companies, trusts, trustees of unit trust schemes and non-resident sociétés (partnerships).

Tax rates on chargeable income of companies for year of assessment commencing on 1 Jan 2011 – 15 per cent.

Although many financial centres have flourished without any tax treaties, Mauritius being a tax-planning jurisdiction has focused the development of its offshore centre on the use of its growing network of Double Taxation Agreements. The expanding network of Double Taxation Treaties reinforces the seriousness of Mauritius as a tax efficient offshore jurisdiction for structuring investment abroad. No agreements exist with Australia, other than the Tax Information Exchange Agreement (TIEA) signed in December 2010.

Many multinational corporations use Mauritius to route their investments into emerging regions such as India, China and Pakistan. The various tax treaty benefits are aimed to attract investors wishing to minimise their costs when repatriating income from their investment in the treaty country where they have invested. Mauritius has been, for a number of years now, ranked as the top investor in India.

Banking and finance

The Mauritian financial system comprises an array of institutions including well-established commercial banks, insurance companies and a number of non-bank financial intermediaries.

The Mauritian banking sector comprises 20 banks – eight local banks, seven locally incorporated subsidiaries of foreign banks and five foreign bank branches – licensed by the Bank of Mauritius to carry out banking business in Mauritius. Internationally active banks from some of the world’s biggest international and most reputable banking groups are present in Mauritius.

The latest development was in March 2011, when the Bank of Mauritius issued the first licence to a new entrant on the banking scene, for conducting Islamic banking business in the island.

Besides traditional banking facilities, banks also offer card-based payment services such as credit and debit cards, provide Internet banking and phone-banking facilities. Specialised services such as fund administration, custodial services, trusteeship, international portfolio management, investment banking, private client activities, treasury and specialised finance are also offered by banks.

Some of the banks specialise in corporate and investment banking and are mainly engaged in global business and financial activities. Prior to December 2004, such banks were required to obtain a separate license and there were restrictions on using the domestic currency and operating in the domestic banking environment. The separate licensing requirements for banks engaged in ‘domestic’ and ‘offshore’ banking activities were removed by the Banking Act, which came into effect in November 2004.

The non-bank financial sector includes institutions involved in insurance and pensions, capital market operations, Leasing and credit finance as well as global business activities.