Kingdom ofMorocco WT/TPR/S/8
Page 25
IV. TRADE POLICIES AND PRACTICES BYMEASURE
(1) Overview
1. TheKingdom ofMorocco iscontinuing topursue theoutward-oriented tradepolicy undertaken
since 1983. Theprivatization reforms inprogress andthedraftlawoncompetition currently being
prepared areintended toconsolidate theliberalization process. Except foralimited number ofbranches
regarded as"sensitive" or"strategic" (forexample, phosphates, international roadtransport andbasic
telecommunications services), thevarious economic activities areopentobothnationals andforeigners.
2. Most quantitative restrictions ontrade havebeenlifted. Those stillinforce relate tobasic
agricultural products: oils, sugar, cereals andtheir derivatives. Morocco iswaiting until the
accompanying measures areinplace before replacing these restrictions withtheirtariff equivalents.
Theauthorities haveconfirmed thatallbasic agricultural products willbesubject totariff equivalents
inaccordance withMorocco 'scommitments under theWTO Agreement onAgriculture.
3. Import procedures andthetariffstructure havebeensimplified. Customs dutyrateshavebeen
significantly reduced across theboard. Because ofthevarious tariff exemptions andreductions, the
nominal ratesdonottrulyreflect thelevelofeffective protection. Theapplication oftariffequivalents
should leadtorelatively highratesontheagricultural products inquestion.
4. Morocco 'strade policy strongly emphasizes export promotion. Thus, mosttaxes onexports
havealready beenabolished. Exporters areoffered tariff andtaxincentives.
(2) Measures directly affecting imports
5. InMorocco, theprincipal trade policy instruments applied toimports areimport duties, the
fiscal import levy(PFI), andreference prices foralimited listofproducts. However, import licences
arerequired forreasons ofsecurity andlawandorder, morality orpublic health ortoprotect thefauna
andfloraorthenational historical, archaeological andartistic heritage. Similarly, according tothe
authorities, quantitative restrictions (more especially licences) arebeing provisionally applied tobasic
agricultural products (oils, sugar, cereals andtheirderivatives). Table IV.1shows theaverage levels
oftrade protection overtheperiod 1985-94.
Table IV.1
Average level oftrade protection, 1988-94
(Percent)
Year Simple average tariff Fiscal import levy(PFI)aRestricted importsb,c
1988 23.8 12.5 12.65
1989 24.4 12.5 10.9
1990 24.8 12.5 11.45
1991 25.1 12.5 12.6
1992 24.5 12.5 9.48
1993 21.5c15 8.4
1994 20.2c/23.5d15 10.2
a In1994, thePFIonpharmaceuticals wasreduced to12.5percent.
b Share ofmerchandise imports subject toquantitative restrictions (mainly licensing).
c Moroccan Government estimates. Thetariffequivalents applied tobasicagricultural products under theWTO Agreement onAgriculture
were notincluded intheaverage tariff calculations.
d WTO Secretariat estimate based onthecustoms tariff inforce inthefirsthalfof1995.
Source: World Bank (1994a) (simple average tariff andPFI,1988-92); WTO Secretariat andMoroccan Government estimates.WT/TPR/S/8 Trade Policy Review
Page 26
(i) Registration anddocuments
6. Inorder tocarry oninternational trade activities inMorocco itisfirstnecessary toregister
withthecommercial registry andthelicensing office andtobeincluded inthelistofforeign trade
operators. Oncetheseformalities havebeencompleted, anynatural orlegalperson mayobtain aforeign
tradeoperator 'scardenabling himtoconduct anykindofimport andexport business. Cards areissued
within 48hours andfreeofcharge.
7. Upto1986, goods wereclassified asfollows intheGeneral Import Programme (PGI): freely
importable goods, goods subject tolicensing, andprohibited imports. Forgoods subject tolicensing,
animport certificate issued bytheDepartment ofForeign Trade andendorsed bytheExchange Office
wasrequired. Sometimes various technical departments hadalsotobeconsulted.
8. Itisalways necessary tosignanimport indenture ("engagement d'importation"). However,
thisiswaived inthecaseofgoods imported under special procedures (Chapter 1ofTitleVIofthe
Customs andExcise Code) andgoods imported occasionally whose value doesnotexceed anamount
fixedbytheadministration. Theimport indenture ismade outinfivecopies andisvalidforsixmonths
from thedateofsignature. Since September 1993, theimporter hasbeenallowed afreechoice of
theauthorized intermediary bankresponsible fortheindenture.
9. Thecompleted import licence mustbeaccompanied byapro-forma invoice. Thelicences are
lodged withtheMinistry ofForeign Trade forendorsement.1Theimport titleenables theauthorized
banktomake payments forthegoods andrelated costs. Once inpossession ofthesevarious documents
andthebilloflading, theimporter canproceed tohavehisgoods cleared through customs. Theservices
offered bytheadministration inconnection withthecustoms formalities arefreeofcharge.
10. Between 1990and1995, theNational Commission forthesimplification ofinternational trade
procedures aligned tradedocuments ontheUnited Nations layout keyandcomputerized theirhandling.
Thus,since1January1992,thenumerouspreviousimportandexportdeclarationshaveallbeenreplaced
bytheSingle Goods Declaration (DUM), astandardized ISOA4format document designed forflexible
handling (manual, mechanical orcomputerized). Moreover, theabolition ofpreliminary Exchange
Office certification hashelped tosimplify theprior control ofinternational transactions.
11. New steps havebeentaken toeaseadministrative formalities. Firstly, inApril 1992, the
procedure forclearance onimporters 'premises wasdecentralized, generalized andmade available to
alarger number ofoperators.2Secondly, control andsupervision measures havebeentaken toprevent
abuse inconnection withclearance onimporters 'premises andtosafeguard revenue. These include
escorting orsealing thecontainers transporting thegoods tothefactory fromtheoffice ofimportation
(atthepoint ofentry toMoroccan territory), opening customs offices intheindustrial zones and
organizingaspecialcustomsdepartmentforclearinggoodsonimporters'premises.Thirdly,perishables
canbereleased directly totheimporter before theclearance formalities havebeencompleted. The
1With these licences itispermissible: (i)toexceed theinitial totalamount by10percentprovided thatthis
istheresult ofanincrease intheunitprice notexceeding 10percent; (ii)toexceed theinitial totalweight by
10percentprovided thatthisisnottheresult ofanincrease intheinitial totalamount orthenumber ofunits
orofadecrease intheunitprice.
2Confined exclusively toexport operations when firstintroduced in1992, in1984 theprocedure forclearance
onimporters 'premises wasextended toimport operations clearly entitled toprivileged treatment (imports under
special procedures orentitled toconcessions under theinvestment codes, imports ofvitalimportance forthe
operation oftheenterprise, andstable recurring imports).Kingdom ofMorocco WT/TPR/S/8
Page 27
same principle isrecognized inthecaseofdisputes. Where necessary, thegoods concerned canbe
removed before thedispute hasbeensettled andtherelated customs formalities postponed.
12. Theprocess ofsimplifying customs procedures wascarried further asaresult ofthe
implementation, fromJuly1992, oftheCustoms Convention ontheInternational Transport ofGoods
under Cover oftheTIRCarnet.3
13. InApril1992,thepracticeofsystematicallyandcomprehensivelyexaminingimportswasreplaced
byaselective examination procedure. According tocustoms officials, thisprocedure exempts 90per
centofimports fromsystematic examination. Altogether, these various reforms havemade itpossible
toreduce theaverage length ofcustoms formalities, asreckoned from thedateoflodgement ofthe
import declaration, from sixworking daysattheendoftheeighties toabout fourworking daysat
present. Furthermore, alogistical andefficiency study ofinternational tradehasbeeninitiated aspart
ofthesecond phase oftheStructural Adjustment Programme (Section I.2(i)). Thisstudy, which is
aimed atachieving greater transparency andreducing thestayofthegoods andthecosts relating to
thevarious formalities andcertain services, appears tobenearly complete. Theresults weresupposed
tobeexamined inSeptember 1995bytheNational Commission forthesimplification ofinternational
trade procedures.
(ii) Customs duties
(a) Nature andevolution ofcustoms duties
14. Theevolution ofthelevelofcustoms duties inMorocco reflects theliberalization efforts made
bytheauthorities since thefirsthalfoftheeighties. Thus, duties were gradually reduced from a
maximum of400percentin1982to45percentin1986andthento35percentin1993.4However,
ratesof40and45percentwereapplied tosome products. Revenue fromcustoms duties represented
5.5percentofimports (c.i.f.) in1984, 9percentin1988, and8.1percentin1994.
15. InJune1993, Morocco established tariff equivalents forliveanimals, meat, dairy products
andsomeoftheirderivatives.Thesetariffequivalents,whichextendfrom100percentondairyproducts
to365percentonsome categories ofmeat, have been incorporated inthecustoms tariff. The
tariffication ofthequantitative measures towhich other agricultural products aresubject followed the
WTO Agreements. According totheauthorities, thenewrateswillbeapplied between January and
June1996.
16. Customs duties areassessed onthec.i.f. value ofthegoods atentry plusunloading costs.
TheMoroccan tariff system doesnotinclude anyspecific duties; those previously levied ontobacco
imports were abolished inJanuary 1987. Morocco doesnotapply seasonal tariffs toimports.
17. Since 1July1992, Morocco 'stariff nomenclature hasbeen aligned ontheHarmonized
Commodity Description andCoding System (HS). The1995tariffhasabout 8,700 linesatthe8-digit
level oftheHS. Each lineindicates tworates: theadvalorem tariff tobeassessed atimportation
(column G)andthetariffprovisionally applied (column U).Ofcourse, theratesincolumn Garehigher
thanthose incolumn Uandsometimes evenhigher thanthetariff bindings offered byMorocco inthe
3TheTIRConvention enables goods tobetransported internationally without itbeing necessary tobreak
bulkorlodge newdeclarations oncrossing frontiers.
4SeeGATT (1989) forfurther details concerning theinitial tariff reforms inMorocco atthebeginning of
theeighties.WT/TPR/S/8 Trade Policy Review
Page 28
context oftheWTO Agreements. Thehighest rateincolumn Gis540percentandcould beapplied
tocertain categories ofmeatorliveanimals; thecolumn Uratecorresponding tothismaximum is
365percent. However, forthepurposes ofthisreport thevarious calculations anddescriptions have
beenbased ontheratesincolumn Uwhich arethose currently inforce.5
(b) Tariff structure
18. Thereforms carried outsince 1983 havehelped toreduce thenumber ofdutyratesfrom 26
to15in1991 and11inMay1993.6These reforms were consolidated bythetaxrationalization
programme initiated inJune1993. However, thetariff equivalents introduced inJune1993 raised
thenumber ofratesto19.Almost 40percentofthetarifflinescorrespond toratesofmore than30per
cent(Chart IV.1).
5Under Article 1oftheDahir establishing theimport tariff, theadvalorem ratetobeapplied isdetermined
from thedataincolumn G;however, provisionally anduntil further notice, therates incolumn Uaretobe
applied. Inconnection withthisreport, theauthorities havestated thatMorocco doesnotplantoapply therates
inColumn Gandthatcurrent policy isaimed atlowering import dutyrates.
6The1995 Finance Actalsoauthorized simplifications involving thegrouping, inoneormore tariff headings
orsubheadings, ofgoods imported freeofduties andtaxes which should otherwise berecorded elsewhere.Kingdom ofMorocco WT/TPR/S/8
Page 29
19. When thetariff equivalents already introduced forcertain agricultural products aretaken into
account, theaverage dutyrate(simple average) iscurrently 23.5percent(Table IV.1). Thisrateis
higher thantheratioofcustoms revenue tototalimport value (c.i.f.) for1994. Thiscould bepartly
theresult ofthevarious concessions andexemptions (seeSection (iv)below). Thedispersion oftariff
ratesasmeasured bythestandard deviation isverypronounced, inparticular forpharmaceuticals and
medicaments, fertilizers andpesticides, crude oilandnatural gas,andagricultural andanimal husbandry
products.7
(c) Progressivity ofcustoms duties
20. Despitethevarioustariffreductionssince1986,thecustomsdutyratesappliedtoimportsremain
progressive: thehighest ratesarethose applied tofinished products. Whereas thedispersion ofthe
duties onagricultural products isstrongly influenced bythehighlevels oftariff equivalents already
introduced foranimal products, forother products thedispersion reflects thelowdutyratesapplied
toimports ofinputs. Atpresent, progressivity ismostpronounced inthesectors inwhich Morocco
hasnational enterprises producing finished goods (Chart IV.2).
7These comments follow from thelevels ofthecoefficient ofvariation, theratio ofthestandard deviation
tothemean (Table AV.1).WT/TPR/S/8 Trade Policy Review
Page 30
(d) Tariff bindings
21. UponaccedingtotheGATTin1987,Moroccobound156tariffheadingsrepresenting30percent
oftotalimports atthattime.8AttheendoftheUruguay Round negotiations, inApril 1994, Morocco
bound therestofitstariff lines. Ingeneral, theduties onagricultural products (ormore precisely
foodstuffs) were bound atthehighest rates. Thus, outofthe1,484 tariff linesinthissector bound
in1994, 365(i.e.more than24percent) were bound atceiling rates higher thanorequal to
100percent. Thehighest ceiling bindings are380percentandapply toimports ofliveanimals and
meat. Furthermore, inaccordance withArticle 5oftheWTO Agreement onAgriculture, Morocco
hasreserved therighttoinvoke thespecial safeguard clause for374linesintheagricultural sector.
Theduties onindustrial products which were notbound when Morocco acceded totheGATT were
bound ataceiling levelof40percentinApril 1994inthecontext ofthecommitments made byMorocco
attheendoftheUruguay Round.
(e) Tariff quotas
22. Inrecent years Morocco hasoccasionally applied tariff quotas, especially during theperiod
ofRamadan. Thus, from 15January to28February 1993 chick-peas, lentils andbroad beans were
granted relief fromimport duties andtaxesonquotas of5,000 tonnes, 2,500 tonnes and10,000 tonnes
respectively.
23. Theoffers made byMorocco within thecontext oftheWTO Agreements include tariff quotas
oncertain agricultural products, more particularly foodstuffs (some categories ofmeat, milk, cereals,
oilseeds, oils,animal andvegetable fats,sugar, andrape, cotton andsunflower seedcake).9The1995
tariff quotas formeat andmilkwillberaised byabout 6.5percentayearoverthe10-year period
ending in2004, i.e.atotalincrease of65percent. Thetariffquotas fortheother products willremain
more orlessunchanged.
(f) Tariff preferences
24. Morocco grants tariffpreferences within thecontext ofcertain bilateral agreements concluded
withvarious Arab andAfrican countries (Jordan, Iraq, Libya, Tunisia, Algeria, Mauritania, Saudi
Arabia, Sudan, Egypt, Kuwait, Syria, Senegal andGuinea). These agreements provide forexemption
fromcustoms duties either forallcommodities orforlistsofcommodities. Thisexemption mayextend
totaxeswithanequivalenteffect(PFI),asinthecaseoftheconventionsconcludedwithTunisia,Algeria,
Libya andEgypt. Agricultural imports fromthecountries oftheArabMaghreb Union (AMU) receive
thesametreatment. Thecommodities covered bytheseagreements range fromrawmaterials tofinished
products andaresetoutinlistsspecific tothetreaties towhich theyareappended.
25. Some preferential agreements andconventions signed byMorocco arenotyetbeing applied
(seeSection II.5).
8This figure relates totariff headings codified inaccordance with theCustoms Cooperation Council
Nomenclature. Thedraft transposition ofthese bound tariff headings interms oftheHSwasdeposited with
theWTO inMay 1995.
9Following thedecline intheproduction ofvirgin olive oilbyMorocco since 1993, theimportation ofthis
product bytheRoyal Armed Forces orontheir account issubject toatariff quota intheform ofrelief from
duties andtaxes inrespect ofanamount fixed at1.3million litres for1995. Thismeasure came intoforce on
1January 1995.Kingdom ofMorocco WT/TPR/S/8
Page 31
(iii) Other levies andtaxes
(a) Border taxes
26. Inaddition toimport duties, afiscal levyonimports (PFI) iscollected. ThePFIisapplied
atrateshigher thanthesumofthose forthespecial import tax(TSI) andthecustoms stamp dutywhich
itreplaced inJanuary 1988. Thisisbecause oftheroleofthePFIwhich, according totheauthorities,
istoimproveStaterevenues.Thus,evenwhenexemptedfromcustomsduties,someimportsnevertheless
remain subject toPFI. When introduced, thePFIamounted to12.5percent; itwasraised to15per
centin1994.
27. ThePFIhasbeenbound ataceiling rateof15percentforallimports, except forcertain
agricultural products specified inMorocco 'slistofcommitments attheendoftheUruguay Round
forwhich thelevelis7.5percent. However, since January 1995, capital goods imported under an
approved investment programme havebeenexempt fromPFI. Pharmaceuticals, including theirraw
materials andpackaging, aresubject toPFIat12.5percent. According totheauthorities, thePFI
willbereduced when government finances sopermit inthecontext ofageneral reform.
28. Imports ofcertain agricultural products andtheirderivatives maybesubject toanother levy
introduced byLawNo.13-89 which entered intoforce in1993. Thislevyisapplied when other
measureswouldbeinsufficienttoprovide"reasonable"protectionforfoodstuffssuchascereals,oilseeds,
sugar beetandcane, milk, meat, andtheirderivatives. Itisequal tothedifference between areference
priceandthepriceoftheimport (duties andtaxesincluded). Thereference priceisdetermined annually
onthebasis oftheworld market prices considered tobethemostsignificant or,failing that,onthe
basis ofthemost representative domestic production costs.10Itslevel isdecided afterconsultation
withtheinterested parties. According totheMoroccan authorities, thislevyhasnever beenapplied
andwillnotbeinthefuture, subject totheintroduction oftariff equivalents.
29. The1995Finance Actalsoimposed aparafiscal taxof0.25percentonimports.11Therevenue
from thistaxserves tofinance thetechnical inspection ofgoods intended forexport, theactivities of
the"Maison del'artisan", theMoroccan Centre forExport Promotion (CMPE) andtheBoard for
IndustrialDevelopment(ODI),andtheeconomicpromotionactivitiesofthetradeassociations.Similarly,
anadvalorem taxof6percentisimposed onimported wood (excluding articles ofwood); therevenue
collected helps tofinance theNational Forestry Fund.
(b) Indirect internal taxes
30. Since being introduced inApril 1986, atfiveratesranging from 7to30percent, thevalue-
added tax(VAT) hasundergone anumber ofchanges. In1993, thenumber ofrateswasreduced to
three, namely: 7percentonwater, electricity, medicaments, petroleum products, interest andfinancial
andbanking services, edible oils,andtheservices oflawyers anddoctors; 14percentonbuildings
10Thereference price represents themoving average (plus freight) over21years forthemarket price chosen
asthereference forsugar, over10years foroilsandmilk, andoverfiveyears forcereals. According tothe
authorities these periodicities correspond totheprice fluctuation cycles forthecommodities inquestion.
11Thefollowing areexempt from theparafiscal tax:merchandise imports qualifying for(i)special customs
procedures orconcessions granted inthecontext ofofficially approved investment programmes; (ii)exemption
ortotal relief from import duties andtaxes byvirtue oflegislative provisions orspecial regulations; and
(iii)reducedimportdutiesandtaxeswithequivalenteffectinthecontextofagreemen tsandconventionsconcluded
between Morocco andother countries.WT/TPR/S/8 Trade Policy Review
Page 32
andpublic works, transport, andtourism; and19percent, which remains thestandard rate. The
ratedescends to7percentforthe"economy" car(Sections 2(xi)andV.4(ii)). Subject toexemptions,
VAT isimposed onsalesofallgoods andservices, whether imported orlocal. Itiscalculated onthe
customs value ofthemerchandise plusanyduties andtaxes (import duties, PFI,andinternal taxes
inthecaseofimports); itisspecific fornon-sparkling wine(15dirhams perhectolitre). Staple food
(agricultural products suchasflour, milkandsugar) andactivities thatgenerate limited income (turnover
lessthan180,000 dirhams) areexempt from VAT.
31. Aparafiscal taxof5dirhams iscollected onevery hectolitre ofwineandbeerwhether imported
orproducedlocallyandtakenintohomeuse.Internalconsumptiontaxes(generallyspecific)areimposed
on,among other things, petroleum products, tobacco, mineral waters, alcoholic beverages, sugar and
spectacles (seeTable AIV.1 fordetails oftheinternal consumption taxesonbeverages). Thetaxlevied
onfruitjuices wasabolished bythe1995 Finance Act.
(iv) Customs valuation
(a) Procedures
32. Inaccordance withArticle 20ofMorocco 'sCustoms andExcise Code, thevalue forcustoms
purposes isthewholesale cashvalue ofthemerchandise delivered tothecustoms office freeofcustoms
duties andtaxes withequivalent effect. Thevaluation takes intoaccount depreciation andlosses and
anyother relevant incident which canbeshown bytheimporter topredate thearrival ofthegoods
onMoroccan territory.
33. Indetermining value, theCustoms Administration maytakeintoconsideration thecontents
ofthedeclaration made bytheimporter, thewholesale cashvalue ofthegoods onthelocalmarket
(lessimport duties andtaxes withequivalent effect, clearance costs andtheimporter 'susual margin)
orthecostinthecountry oforigin plusloading, insurance andfreight charges andother expenses
incurred before theimported goods arepresented tocustoms. Furthermore, theCustoms Administration
mayrequire theproduction ofinvoices, contracts andcorrespondence (among other things) relating
totheimports inquestion. Amounts inforeign currencies usedindetermining thevalue areconverted
intodirhams attheexchange rateineffect onthedateofthedeclaration made toCustoms.
34. AConsultative Committee onValuation forCustoms Purposes setupbytheFinance Minister
gives theMinistry itsopinion onvaluation disputes. TheCommittee consists ofrepresentatives of
theadministrations concerned andinterested tradeassociations andoftheimporter orhisrepresentative.
TheCustomsAdministrationprovidestheCommittee'ssecretariat.Thetradeassociationrepresentatives
arenominated bythegovernment authority responsible forthegoods which form thesubject ofthe
dispute.
35. InJune1993, Morocco accepted theAgreement onImplementation ofArticle VIIofthe
GATT 1947. However, itmade itsacceptance subject toanumber ofreservations, inparticular the
delayed application ofalltheprovisions oftheAgreement foraperiod offiveyears inaccordance
withArticle 21oftheAgreement which provides forspecial anddifferential treatment fordeveloping
countries. Morocco isnowengaged inadapting therelevant legislation totheprovisions ofthe
above-mentioned Agreement assupplemented bytheMarrakesh Agreements.
(b) Reference prices
36. Certain non-agricultural products havereference prices forcalculating thecustoms duties.
According totheauthorities, these prices areusedonlytovalue imports forcustoms purposes and
nottoinfluence retail orwholesale prices. Thelatest listofthese goods waspublished inKingdom ofMorocco WT/TPR/S/8
Page 33
Circular No.4271/322 of2July1993. Theproducts concerned aretyres, inner tubes, textiles and
clothing (including travel goods andfootwear), capital equipment, spare partsformotor vehicles and
forcycles whether ornotfitted withamotor, building materials andtools. Altogether, 5128-digit
headings oftheHSNomenclature areaffected, orabout 5.8percentoftariff lines.
37. Reports inthelocal press indicate thatthismeasure hasrecently alsobeenapplied toother
goods suchasusedcars.12According totheauthorities, these minimum prices willbeabolished in
1988assoonasMorocco begins toapply theAgreement onImplementation ofArticle VIIoftheGATT
oncustoms valuation.
(v) Duty andtaxexemptions andrefunds
38. Thetariffconcessions andexemptions granted toimports canbedivided intothreelargegroups.
Thefirstgroup comprises thebenefits available under theinvestment codes which consist inthe
exemption fromimport duties andtaxesofmaterials (including rawmaterials), toolsandcapital goods
provided thatthelatter arenotorcannot beproduced inMorocco andareintended forenterprises
established outside theCasablanca-Anfa zone. Thesecond group comprises special customs procedures
which provide fortheimportation withrelief fromduty, under certain conditions, ofgoods intended
forexport withorwithout further processing (Section 3(vii)).13Thethird group consists oftariff
concessions granted under aconvention andthedutyexemptions andrelief provided forbytheFinance
Actorbyspecial legislation.
39. The1995 Finance Actexempted from import dutyandPFIimports ofso-called "economy
cars"(HSheading 8703).14Theconditions onwhich theseexemptions aregranted andthecharacteristics
andspecifications oftheeconomy carwereestablished byagreement between theMoroccan Stateand
themanufacturer.ThisActexemptsfromPFIimportsofinputs,toolsandcapitalgoodsunderinvestment
programmes which havereceived acertificate ofconformity orform thesubject ofanagreement.
Certain pharmaceuticals andsome types ofmedical equipment havebeengranted similar exemptions.15
40. The1995 Finance Actalsosuspended thecollection ofimport duty, PFIandInternal
Consumption Taxes (TIC) oncrude petroleum oilsandoilsobtained frombituminous minerals intended
forrefining. Italsosuspended upto31December 1995 theduties andtaxes applicable toimports
ofelectric generating setsandrotary convertors (HSheading 8502), beesusedinhot-houses for
pollination purposes (HSheading 01060091),andlivepure-bred breeding animals oftheCamelidae
species (HSheading 0106009200).Inthecaseofthislatter import category thesuspension isan
extension ofthatalready inforceforlivepure-bred bovine, ovine, caprine andequine breeding animals.
12Moroccan periodical "L'Economiste", 15June 1995.
13Aspecial casewithin thisregime isthatofgoods intransit which alsobenefit from relief from theduties
andtaxes inforce.
14SeeSection (ii)below.
15Imports ofinvalid carriages (HSheadings 871310and871390)andartificial joints andother orthopaedic
appliances (HSheadings 902111and902119)areexempt from PFI. Some pharmaceutical imports, more
particularly antimitotic medicaments ofHSheadings 30041020,30042020,30043220,30043920,
30044020,and30049020,areexempt from PFIandVAT.WT/TPR/S/8 Trade Policy Review
Page 34
(vi) Import controls andprohibitions
41. According totheMoroccan authorities, theimport prohibitions inforce areintended toprotect
thenational fauna andflorafromcertain diseases anddangerous pests. Thus, plants orpartsofplants
oftheAurantioideae sub-family (bitter oranges, citrus fruitoftheRutaceae family), maize andsorghum
plants, eucalyptus plants, andfruiting andornamental species oftheRosaceae family maynotbe
imported. Thismeasure alsoapplies totheimportation ofcryptograms (fungi, viruses, viroids,
mycoplasm andbacteria) andinsects ofnoeconomic ormedical importance. Some oftheseprohibitions
canbewaived.
42. Import controls andprohibitions arealsoineffect inaccordance withprovisions ofthe
international environmental agreements which Morocco hassigned. These aretheConvention on
International Trade inEndangered Species ofWild Fauna andFlora, theVienna Convention forthe
Protection oftheOzone Layer (including theMontreal Protocol andthevarious amendments thereto),
theBasle Convention onHazardous Wastes andtheLondon Guidelines onChemicals inInternational
Trade.
(vii) Import licences andquantitative restrictions
43. Atthebeginning oftheeighties, under theGeneral Import Programme (PGI) theproducts that
could beimported intoMorocco wereallocated every yeartoListAforproducts thatcould befreely
imported, ListBforthose subject toquantitative restrictions (more particularly licensing) orListC
forthose whose importation wasprohibited. Thetransfer ofproducts from Lists BandCtoListA
since 1983 andtheabolition ofListCin1986 helped tonarrow therange ofquantitative import
restrictions. InSeptember 1990, 436products weretransferred from ListBtoListAand,in1992,
thePGIcomprising ListsAandBwasabolished. TheNotice toImporters 01/92 of13February 1992
notified theliberalization of456products. Table IV.2shows theevolution oftheimport regime in
relation tothevarious categories ofgoods.
44. Because ofthedroughts in1992 and1993, there hasbeen anincreased requirement for
staple-food imports (cereals, oilseeds, sugar andtheirderivatives). According totheauthorities, the
liberalization ofimports ofthese products hasbeen postponed pending theimplementation of
accompanying measures inorder toavoid possible long-term adverse effects ondomestic production.Kingdom ofMorocco WT/TPR/S/8
Page 35
Table IV.2
Import regime bycategory, 1989-94
(Million dirhams)
1989 1990 1991 1992 1993 1994
Food, beverages andtobacco
Freely importable
Subject tolicensing4,992
4,593
3994,801
4,249
5525,145
4,607
5397,619
7,010
6099,036
8,463
5737,348
4,174
3,174
Fuelandlubricants
Freely importable
Subject tolicensing7,157
6,205
9529,652
8,050
1,6028,631
6,723
1,9089,598
8,485
1,1138,895
7,246
1,64910,239
8,500
1,739
Agricultural rawmaterials
Freely importable
Subject tolicensing3,462
3,394
683,585
3,513
723,886
3,812
754,192
4,162
304,162
4,105
575,406
3,656
1,750
Rawminerals
Freely importable
Subject tolicensing1,870
1,870
03,301
3,301
03,137
3,137
02,747
2,747
01,944
1,944
02,091
2,091
0
Semi-finished products
Freely importable
Subject tolicensing12,131
11,933
19813,753
13,505
24815,219
15,077
14314,777
14,725
5214,081
13,956
12516,660
16,647
13
Agricultural equipment
Freely importable
Subject tolicensing462
458
4554
541
13752
743
9415
414
1365
364
1832
832
0
Industrial equipment
Freely importable
Subject tolicensing11,498
10,320
1,17814,747
13,302
1,44515,484
14,161
1,32316,365
15,192
1,17316,682
16,378
30416,147
16,055
92
Consumer goods
Freely importable
Subject tolicensing5,019
2,734
2,2856,630
3,381
3,2497,446
3,903
3,5437,092
4,112
2,9806,743
4,236
2,5077,238
7,233
5
Total imports, c.i.f.
Freely importable
Subject tolicensing46,595
41,511
5,08457,023
49,843
7,18059,720
52,181
7,53962,805
56,847
5,95861,907
56,692
5,21665,962
59,189
6,772
0 Thecorresponding figure iszeroafterrounding-off ornegligible.
Source: IMF(1995b); Government ofMorocco.WT/TPR/S/8 Trade Policy Review
Page 36
45. Table AIV.2 gives alistofthegoods subject toquantitative restrictions asfrom1994.16The
goods inGroup Barethose forwhich import licences arerequired onlyforalimited period: upto
1January1995forpetroleumproductsandrawsugar,1February1995forrefinedsugarandderivatives,
1March 1995 foroilseeds, 1April 1995 forcereals andderivatives, 1May1995 forcrude oilsand
cake, and1June1995forrefined oilsandderivatives. However, except inthecaseofenergy products,
liberalization hasbeenpostponed for1year; theMoroccan authorities arewaiting foraccompanying
measures tobeintroduced before proceeding toliberalize theproducts inquestion. Aninterministerial
committee issaidtobepreparing thesemeasures incollaboration withthetradeassociations concerned.17
46. Theimport licence ismade outinsixcopies andisvalid foramaximum ofsixmonths from
thedateofissue uptoclearance ofthegoods through customs. Thesame procedures apply toall
importers andtoallproducts covered byimport licences.
(viii) Trade sanctions
47. When itaccepted theWTO Agreements, Morocco didnotenter anyreservation concerning
non-application under Article XIVoftheGATT withrespect toanycountry.18Morocco participates
intheinternational trade sanctions decided upon bytheUnited Nations Security Council.
(ix) Emergency action
(a) Safeguard measures
48. Morocco doesnotcurrently haveanylegal instrument thatincorporates theprovisions of
Article XIXoftheGeneral Agreement onTariffs andTrade initslegislation, butthese provisions are
included inthedraftamendment totheForeign Trade Actinprocess ofadoption. In1994, Morocco
resorted tolicences torestrain theriseinthevolume ofimports duetodrought (seeSection (vii)).
(b) Anti-dumping andcountervailing measures
49. Article XVofLawNo.13-89 provides forthecollection ofcountervailing oranti-dumping
duties. Asaprecaution, pending theimplementation ofthese measures, which, according tothe
authorities, havestilltobeapplied, priorimport declarations (DPI) mayberequired forimports which
arecausing orthreatening tocause injury toaMoroccan industry. Inaccordance withtheprovisions
ofthesame Article, these declarations maynotberequired foraperiod ofmore thanthree months,
renewable onceonly.
50. Thedecision torequire prior import declarations istaken jointly bytheMinister responsible
forforeign tradeandtheother interested Ministers. DPImaybeexamined bytheMinister responsible
forforeign trade foramaximum of10days. They mayalsobesubmitted tointerested Ministers for
apreliminary opinion. Inthiscase,theexamination period maybeextended toamaximum of20days.
16SeeAnnex IofOrder No.1308-94, dated 28April 1994, oftheMinister ofForeign Trade, External
Investment andHandicrafts.
17According totheauthorities, these measures include theregulation ofcustoms levies soasnottocreate
liquidityproblemsfortheoperators,priceliberalization,arrangementsforlump-sumcompensationandcompulsory
emergency reserves ofcereals, oilsandsugar.
18Article XIVoftheGATT 1994 specifies theconditions onwhich exceptions tothenon-discrimination rule
maybeauthorized.Kingdom ofMorocco WT/TPR/S/8
Page 37
Sincethesearrangementswereintroduced,bananasaretheonlyimportforwhichaPIDhasbeenrequired
(inJune1995). According totheauthorities, thismeasure isusedtomonitor banana imports which
arethreatening tocause injury tothedomestic industry.
51. AnewdraftlawintendedtoadaptMoroccanlegislationtotheprovisionsoftheWTOAgreements
isinprocess ofadoption.
(x) Rules oforigin
52. Twotypes ofdefinition oftheorigin ofgoods arelegally recognized inMorocco. These are
thenational definition contained intheCustoms andExcise Code andthedefinitions contained inthe
agreements which Morocco hassigned withother States orgroups ofStates.
53. Thenational definition oftheorigin ofgoods isbased ontheintegral origin criterion (when
thegoods arewholly obtained inonecountry) andthecomplete transformation criterion (when the
goods areobtained inonecountry using products coming fromanother). Forimports covered bythis
definition, justification oftheorigin oftheimports isnotsystematically required.
54. Imports benefiting frompreferential treatment granted inthecontext ofbilateral ormultilateral
agreements andhence covered bytreaty definitions aresubject totheproduction ofacertificate of
origin onstandard forms agreed inadvance between thecontracting parties. Within theframework
oftheagreementsconcludedwithArabandAfricancountries,transformationorprocessingcorresponding
tovalue added equal toatleast40percentofthecostprice ex-factory intheexporting country is
generally sufficient fortheorigin oftheproduct tobeattributed tothatcountry. Thepossibility of
Maghreb regional cumulation isprovided forunder the1976 Morocco-EC Cooperation Agreement.
55. Inaccordance withArticle 17-2ofMorocco 'sCustoms andExcise Code, theproduction of
acertificate oforigin doesnotnecessarily bindthecustoms administration which remains atliberty
tochallenge itsauthenticity orcorrectness.
(xi) Domestic content
56. Adomestic content of60to70percent,including exports oflocally manufactured components,
isgenerally required ofmotor vehicle assembly firms.19Inthisconnection, onthebasisofanagreement
concluded between theMoroccan Government andthemixed company SOMACA (Societé Marocaine
deConstruction Automobile), CKD imports oftheso-called economy carareexempt fromtheduties
andtaxes inforce (customs duties, PFI,parafiscal tax,etc.).20Inreturn, SOMACA mustincorporate
19Decree No.2.81.489, dated 27May 1982, implementing LawNo.10.18 regulating themotor vehicle
assembly sector.
20CKD means "completely knocked down" andrefers totheimportation ofcarsinkitform forassembly
inthecountry ofdestination.WT/TPR/S/8 Trade Policy Review
Page 38
inthese cars15percentofcomponents ofMoroccan origin during thefirst18months following the
entryintoforceofthecontract, 25percentbetween the18thand36thmonths, and50percentthereafter.
There isalsoanoff-setting mechanism based onexports ofcomponents (Section V.4(II)).21
(xii) State trading
57. Inrecent years, branches ofactivity overwhich certain Stateagencies andenterprises exercised
amonopoly havebeenliberalized. Thisapplies, inparticular, tothemarketing ofteawhich was
liberalized attheendof1994. According totheauthorities, theexisting sugar monopoly exercised
bytheONTS (National TeaandSugar Board) willdisappear assoonasthemeasures intended to
accompany thisreform, nowbeing prepared, areintroduced. Moreover, therestructuring oftheONICL
(National Interprofessional Board forCereals andPulses) willmake itpossible toderegulate cereal
marketing. Certain activities oftheONPT (National PostandTelecommunications Office) havealso
beenliberalized, inparticular express mailandtelecommunication services other thanbasictelephony.
Thebankingsectorisopentointernationalinvestors.FourforeigncompanieshaveholdingsinMoroccan
insurance companies (Section V.5(v)).
58. Nevertheless, some activities remain State monopolies. Thus, theTobacco Board (RT) has
amonopoly onthemarketing oftobacco (packaging andsales) andtheNational PortAuthority (ODEP)
hasamonopoly onthemanagement andoperation ofcertain portservices. BURAPRO imports oilseeds
andcrude oil.TheNational Transport Company (ONT), theNational Railway Board (ONCF) and
theNational Airport Authority (ONDA) holdmonopolies orexercise exclusive rights intheirrespective
fields ofactivity. According totheauthorities, astarthasbeenmade onliberalizing these branches
(Section V.5(iv)).
(xiii) Standards andtechnical specifications
59. Thestandards currently inforce inMorocco arebased onthose oftheISOofwhich Morocco
isamember, theFrench Standardization Association (AFNOR) andtheCodex Alimentarius ofthe
WHO andFAOforfoodstuffs.22Thetechnical standards relating toanimals arebased ontheprovisions
ofthezoosanitary codeoftheInternational Office ofEpizootics. According totheauthorities, no
distinction ismade between imports andlocal products. Theapplication ofMoroccan standards is
mandatory intheclauses andspecifications ofGovernment contracts andcontracts ofanequivalent
nature.Standardswhichconcernconsumerhealthandsafetymaybemademandatorybyissuingapproval
orders ("arrêté d'homologation"); sofar,about 850standards havebeenapproved.
(a) Standardization, testing andcertification
60. TheHigherInterministerialQualityandProductivityCouncillaysdownstandardizationguidelines
andgives itsopinion onMoroccan draftstandards withaviewtotheirapproval. Moroccan standards
aregenerally drawn upbytechnical committees (there arecurrently about 50)setupbytheministers
21Thearrangementsrelatingtotheexemptionsgrantedtothe"economy"cararelaiddowninthe1995Finance
Act. Details oftheagreement concluded between SOMACA andtheMoroccan Government canbefound in
MarchésTropicaux,5May1995(interviewwithMr.DrissJETTOU,MinisterofTrade,IndustryandHandicrafts)
and12May 1995; inLeMatin duSahara etduMaghreb, 24June 1995, andinJeune Afrique Economie,
17April 1995.
22Forexample, eight draft standards based ontheCodex Alimentarius have been prepared bytheMinistry
ofFisheries andMerchant Shipping andareintended toregulate bothimports andexports ofseafood products.Kingdom ofMorocco WT/TPR/S/8
Page 39
responsible fortheproducts concerned. These committees include representatives ofGovernment
agencies andinterested private bodies.
61. Theadaptation ofthese standards toMoroccan conditions istheresponsibility ofthe
StandardizationandQualityPromotionDirectorateoftheMinistryofTradeandIndustry.TheMoroccan
IndustrialStandardizationService(SNIMA)ofthisMinistryisinchargeofcoordinationandtheprinting,
circulation andsaleoftheMoroccan standards catalogue.
62. Morocco began accreditation operations intheareaoftesting andcertification in1990. The
Ministry ofTrade andIndustry intends toestablish anational laboratory accreditation system based
onISOguidelines which would make itpossible toconclude agreements concerning themutual
recognition oftestscarried outbysimilar bodies inthecountries exporting toMorocco. Furthermore,
theNational Environment Council hasinstructed acommittee todetermine themethodology for
establishing permissible discharge limits.
63. Alawdated October 1985 establishes theprinciple ofmandatory wording andmarkings on
invoices, commercial documents andgoods toensure fairtrading andprevent anymisunderstanding
onthepartofthepurchaser. Thesame lawassigns customs officers thetaskofinvestigating and
establishing relevant offences andempowers them, where necessary, tomake seizures.
(b) Health andsanitary regulations
64. Thesanitary andqualitative inspection ofliveanimals, meat, andanimal products intended
forhuman oranimal consumption iscompulsory and,where imports andexports areconcerned, is
carried outbytheborder veterinary services. IntheMinistry ofAgriculture andAgricultural
Development, thePlant Protection, Technical Inspection andAnti-Fraud Directorate isresponsible
forcheckingthequalityofseedsandseedlings,whiletheLivestockDirectoratesupervisestheapplication
ofthetechnical standards relating toanimals andanimal products.
65. In1989,MoroccojoinedtheOECDsystemforthecertificationofcertainplantvarietiesintended
forinternational tradeandsince1992hasbenefitted fromtheEECequivalent asregards thecertification
ofcertain plant species.
(xiv) Government procurement
66. InMorocco, most purchases andcivilworks arearranged bytheMinistry ofPublic Works
which manages about 2billion durhams worth ofGovernment procurement contracts relating principally
toroads andhydraulic engineering works.23
67. Interms ofparticipation, adistinction ismade between invitations foropenandselective (four
orfivebidssatisfying thetechnical standards areconsidered) competitive bidding andsingle tendering
which, according totheauthorities, isbecoming increasingly rare. Thecontracts relating to
90-95 percentoftheprojects managed bytheMinistry ofPublic Works wereawarded onthebasis
ofcompetitive bidding. Whether ornotthebidsareopened inpublic depends onthenature ofthe
contract. Thecommittee responsible forassessing thebidsmeets inclosed session anddecides on
thebasis ofvalue, quality andreferences. Thebidsmaybeopened publicly iftheadministration
23ThecontractssignedbyAutoroutesdeMaroc(ADM)andtheautonomouspublicenterprisesarenotincluded
inthisamount.WT/TPR/S/8 Trade Policy Review
Page 40
considers itnecessary, andthiswillthenbementioned inthenotice ofinvitation totender.24Thepublic
session isatwo-phase process: first, alistofbidsreceived, orsubmitted during theproceedings is
drawn up;thenthelistofapproved bidders andthecontent oftheir bidsarereadoutandthe
unsuccessful bidsarereturned.
68. Astudy recently made bytheMoroccan authorities inthebuilding andpublic works sector
isunderstood tohaverevealed foreign penetration ofabout 6percent, heavily concentrated inbig
projects financed from external resources. Foreign participation inengineering activities appears to
beintheneighbourhood of50percentofthecorresponding total. However, whatever theorigin of
thefinancing, thevarious formalities andtheadministration oftheinvitations totender arethe
responsibilityoftheMoroccanGovernment.Theregionalauthoritiesareadvisedtoassociatethemselves
withthemanagement oftheprojects andtheuseofworkers from theregion inwhich theproject is
located isencouraged. Atthesametime, thereisnoexplicit preference given topurchases inthepoorer
regions.
69. Morocco hasnotsigned theTokyo Round Agreement onGovernment Procurement andhas
notyetindicated anyintention ofacceding totheplurilateral agreement thatemerged from the
Uruguay Round. Theauthorities donotconsider thattheyshould accede inpresent circumstances;
theywillnotbeabletodecide thisquestion untilthedraftamendments totherelevant textshavebeen
promulgated.25A1959 circular giving localsuppliers a10percentprice preference wasimplicitly
rescinded bytheregulations which havebeeninforce since1976. However, inthecontext ofprojects
financed bytheWorld Bank, a15percentpreference isgranted todomestic suppliers.
70. TheMoroccan legislation currently inforce doesnotprovide forsanctions against concerted
bidding toforce upprices. According totheauthorities, inthepastthere havebeenveryfewcases
ofconcerted bidding; ifnecessary, thetendering procedure could besuspended orcancelled. Penalties
forconcerted bidding andbidrigging areprovided forinthepreliminary draft Competition Act
(Section 4(iii)(a)).
(xv) Measures applied intheexporting countries
Accordingtotheauthorities,therehasbeennoagreementwithforeigngovernmentsorenterprises
designed toinfluence thequantity orvalue ofthegoods andservices exported toMorocco. Furthermore,
theauthorities arenotaware ofanysuchagreements between Moroccan andforeign enterprises.
(xvi) Other measures
72. Uptotheendofthe1980s, official countertrade arrangements involving thesupply ofMoroccan
goods inreturn forconstruction services were being concluded withEastern European countries.
According totheauthorities, sucharrangements arenolonger being made.
24There isanobligation toopen thebidsinpublic where contracts initiated bytheMinistry ofPublic Works
areconcerned.
25TheMoroccanauthoritieshavestatedthatthereforminprocessisaimed,inparticular,at:thesimplification,
standardization andimprovement ofprocedures; greater transparency intheawarding ofcontracts; strengthening
theparticipation ofnational enterprises toenable them tomeet ever-increasing international competition on
favourable terms; andensuring abetter balance between thecontracting parties.Kingdom ofMorocco WT/TPR/S/8
Page 41
(3) Measures directly affecting exports
(i) Registration anddocuments
73. Goods canbeexported fromMorocco onlyunder thecover ofaforeign exchange repatriation
document ("engagement dechange").26Thisdocument isnotrequired forexports under special customs
procedures (temporary exportation, outward processing andexportation ofsamples) andexports whose
value doesnotexceed 30,000 dirhams.
74. Liketheadministrative andcustoms procedures forimports (Section 2(i)), export procedures
havealsobeensimplified. Thus, since April 1994, thelicences required toexport products subject
torestrictions (Section (iii))arenolonger subject toendorsement bytheExchange Office andareissued
astheyarerequested. According totheauthorities, these licences aregranted uniformly andwithout
discrimination, whatever theproduct andtheprocedure forwhich theyareintended.
(ii) Export taxes, charges andlevies
75. Atpresent, hydrocarbons aresubject to5percentexport dutyandcrude phosphate issubject
toaspecific prospecting taxof34dirhams pertonne exported. A1percentadvalorem taxusedto
belevied onexports ofagricultural products andtheirderivatives; therevenue fromthistaxfinanced
quality control activities andtheexport promotion agencies. Withtheexception ofphosphate, mineral
products were subject toa5percentadvalorem export tax. Both taxes were abolished bythe
1995 Finance Act.
76. Goods intended forexport areexempt from VAT andgenerally enjoy relief from duties and
taxes ontheinputs usedintheirproduction. Services rendered inMorocco butexploited andused
abroad areexempt from VAT. Services relating togoods intended forexport rendered onbehalf of
customers established abroad arealsoexempt from VAT. Ontheother hand, although hotels and
restaurants receive similar concessions withrespect totheirinputs, theirservices aresubject toVAT
atarateof14percentwherever theconsumer mayhavehisresidence.
(iii) Export prohibitions, controls andlicences
77. Theinformation available totheSecretariat gives noindication ofproducts ofMoroccan origin
whose exportation isprohibited oneconomic grounds. Theauthorities haveconfirmed thatexports,
likeimports, arefree,subject tothelimits laiddown intheforeign trade legislation (Section 2).
78. Thelistofproducts forwhich anexport licence isrequired includes cereal flours, except for
riceflour; charcoal (including shellandnutcharcoal), whether ornotagglomerated; collections and
collectors 'pieces ofzoological, botanical, mineralogical oranatomical interest; collectors 'pieces of
historical, archaeological, palaeontological, ethnographic ornumismatic interest; andantiques ofan
ageexceeding 100years.27Most oftheseproducts aresubject tolicensing inorder toprotect thefauna
andfloraornational heritage (artistic, archaeological, etc.).
79. Fishandagricultural products (including animals) aresubject tosanitary andquality controls
before export. Thus, catches offishareinspected when landed andalsoonthepremises oftheprocessors
26SeeArticle 18ofLawNo.13-89.
27SeeOrder No.1308-94, dated 19April 1994, oftheMinister ofForeign Trade, External Investment and
Handicrafts.WT/TPR/S/8 Trade Policy Review
Page 42
andexporters. When thefishislanded, itscommercial sizeischecked anditsintended useis
determined -canning orby-product factories forindustrial fish-taking quality intoaccount. Inspections
arealsocarried outbothinthefactories andonfishintended forexport. Thus, anexport inspection
certificate isissued bytheofficials oftheindependent export control andcoordination agency (EACCE)
onlyupon theproduction ofaveterinary sanitary certificate.
80. Thecontrols towhich agricultural exports aresubjected depend onthetypeofproduct. In
thecaseofanimal foodstuffs andtheirderivatives, thecontrols include verifying, bymeans ofanalyses
performed innational laboratories, thattheycomply withthequality andsanitary requirements ofthe
countries ofdestination. Asregards horticultural products, theEACCE makes surethattheycome
fromapprovedsources,checksthesanitaryandphytosanitarycertificatesandtakessamples.Thecontrols
carried outonseedexports arebased ontherelevant OECD andEEC standards.
(iv) Export quotas andrestraint arrangements
81. Morocco hasagreed withtheEuropean Union toexercise voluntary restraint withrespect to
exports oftrousers totheEU.For1995, thelevelofvoluntary restraint is28.3million unitsforoutward
processing traffic and15.5million units forordinary exports (Chapter V.4(i)).
(v) State trading andexport cartels
82. Stateparticipation inexport activities through public agencies andenterprises hasdeclined since
theimplementation oftherestructuring andprivatization reforms. Thus, theMarketing andExport
Agency (OCE) lostitsmonopoly in1985; theOCE nowparticipates inthemarketing offruits and
vegetables onthesameterms asprivate companies. According totheMoroccan authorities, theOffice
chérifien desphosphates (OCP) istheonlyStateinstitution thatstillexercises amonopoly intheexport
sector. TheOCPhastheexclusive righttomine, process andmarket phosphates. However, according
totheMinistry ofPrivatization thereisapossibility thatthisbranch willbepartly opened uptoprivate
enterprise.
83. Theauthorities arenotaware ofanyexport cartels operating from Morocco.
(vi) Export subsidies
84. According totheauthorities, Morocco doesnotsubsidize anyexports ofgoods orservices.
However, LawNo.13-89 provides forarefund inconnection withtheexportation ofcertain agricultural
products (Section 4(i)).
(vii) Duty andtaxconcessions
85. Morocco currently hasseven relief procedures thatenable goods tobestored, processed, used
ortransported withrelief fromcustoms duties, internal consumption taxes andother duties andtaxes
payable. These procedures comprise:
(i) Thecustoms warehousing procedure which enables exporters toplacegoods inpremises
under customs control withrelief fromcustoms duties andother taxes payable. The
maximumstayistwoyearsforprivatewarehousesandthreeyearsforpublicwarehouses
(granted forgeneral purposes);
(ii) thetemporaryadmissionprocedurewhichallowstheimportation,withrelieffromduties
andtaxes, ofgoods which aretoundergo processing, manufacturing orfurther workingKingdom ofMorocco WT/TPR/S/8
Page 43
withaviewtobeing exported.28Thegoods maystayunder thisprocedure fortwoyears
from thedateofregistration ofthecorresponding declaration. Goods which require
animport licence canbenefit fromthisprocedure onlyifauthorization hasbeengiven;
(iii) thefreeindustrialwarehousingprocedureunderwhichenterprisesproducingexclusively
forexport areauthorized toimport, withrelief from duties andtaxes, bothplant,
equipment andspare parts andgoods intended forprocessing using thisplant and
equipment29;
(iv) thetemporary importation procedure which provides forrelief fromduties andtaxes
onimports intended forre-exportation without further processing afteruse;
(v) theoutward processing system which makes itpossible toobtain relief from export
duties andtaxesonproducts ofMoroccan origin, orimported against payment ofduties
andtaxes orunder thetemporary admission procedure, sentabroad forprocessing or
manufacturing. Theforeign value added issubject toimport duties andtaxes, whereas
theMoroccan component oftheproduct isexempt;
(vi) thetemporary exportation procedure which enables certain Moroccan equipment,
products andanimals tobesentfortemporary useabroad withrelief fromexport duties
andtaxes. Thegoods imported intoMorocco mustbeidentical tothose exported and
mustbeentered within thetime-limits established bydecree andsubject totheapproval
oftheinterested ministers;
(vii) thetransit procedure which enables goods tobetransported under customs control from
onecustoms office orwarehouse toanother onMoroccan territory withrelief from
theduties andtaxes applicable.
86. Thedrawback procedure provides fortherefund, onthebasisofanaverage rate,oftheimport
duties, fiscal import levies and,where appropriate, internal consumption taxes imposed ontheinputs
orgoods consumed inmanufacturing exports.
87. Inadditiontotheadvantagesmentionedabove,industrial,agriculturalandcraftexportersbenefit
fromdirect taxconcessions provided forbytheExport Code. These concessions involve exemption
fromcorporation taxandgeneral income tax.Theexemption is100percentforthefirstfiveyears,
reckoning fromtheyearinwhich thefirstexports wereshipped, and50percentthereafter. Trading
companies mayalsobenefit iftheirturnover isgreater than2million dirhams.
88. Other export concessions mayalsobecontained inthevarious investment codes.30
28Theconditions oftemporary admission aredetermined byaDecree oftheMinister ofFinance after
consultation withtheministries concerned.
29Thefreeindustrial warehouse isanestablishment under thecontrol ofthecustoms administration. The
conditions ofthisprocedure aresimilar tothose fortemporary admission except thatfreeindustrial warehousing
offers, inaddition tothebenefits oftemporary admission (processing ofgoods under customs control), thebenefits
oftemporary importation (fortheequipment andspare parts) andofprivate warehousing (storage ofthegoods).
30TheWTO Secretariat hasnotbeen abletoobtain copies ofthevarious codes orlegislative texts relating
tothese concessions.WT/TPR/S/8 Trade Policy Review
Page 44
(viii) Export financing
89. InApril 1995, within thecontext ofthepolicy ofinterest rateliberalization, Bank Al-Maghrib
abolished thefinancing ofexport activities atpreferential rates. Thiswasoffset bytheobligation placed
uponthebanks toprovide assecurity, foramaximum of50percentoftheadvances granted tothem,
paper representing export credits (pre-financing andforeign assets) and/or rediscountable medium-term
credit accorded tosmall- andmedium-sized enterprises andtoyoung promoters andentrepreneurs.
These advances come fromseven-day invitations totender andfive-day repurchase agreements. The
provision follows from Bank Al-Maghrib 'snewmoney-market intervention mechanisms.
90. The1995Finance Actalsoprovides forthetechnical inspection ofproducts intended forexport
tobefinanced by40percentoftherevenue from theparafiscal import tax(Section 2(iii)(a)). The
products affected bythisprovision are,inparticular, agricultural andagro-industrial exports.
(ix) Export credit guarantees andinsurance
91. TheMoroccan Export Insurance Company (SMAEX), asemi-private agency, manages trade
fairandmarket survey insurance onbehalf oftheState andcredit insurance.31Guarantees for
extraordinarycommercialrisksandpolitical,monetaryanddisasterrisks(risksalsomanagedbySMAEX
onbehalf oftheState) require theadvisory opinion oftheExport Insurance Commission.32Tomeet
claims arising outoftransactions managed onbehalf oftheState, SMAEX hasatitsdisposal apublic
reserve fundof163.7 million dirhams.
92. Inthecontext oftheiractivities, exporters arenowauthorized tosignfactoring andexport
insurance contracts withforeign agencies.
(x) Export promotion andmarketing assistance
93. TheMoroccan Export Promotion Centre (CMPE) implements export promotion measures
prepared bytheMinistry ofForeign Trade. Itsactivities relate toindustrial, agricultural, agro-industrial
andcraftproducts andanyother exports thatdonotfallwithin thesphere ofcompetence ofother public
institutions. TheCentre isfinanced byasubsidy equivalent to25percentoftherevenue from the
parafiscal import tax(Section 2(iii)(a)). Afurther 10percentofthesame revenue goestofinance
thepromotional activities ofthetrade associations, 10percentisusedtopromote craftproducts, and
15percentisreserved fortheBoard forIndustrial Development (ODI) responsible forpromoting
investment opportunities inMorocco.
94. Every year, inaccordance withtheprogramme drawn upbytheInter-Ministerial Fairs and
Exhibitions Committee, which brings together theministries concerned andthegeneral andsectoral
tradeassociations,theCMPEorganizesMorocco'sparticipationintradeeventsheldabroadoronnational
territory.
31Themaximum amount guaranteed is50percentofthetrade fairormarket survey costs and90percent
oftheexport credit.
32TheCommission gives itsopinion bothontheunderwriting andtheterms oftheinsurance policies proposed
andonthegranting ofguarantees tocover therisksmanaged bySMAEX onbehalf oftheState. Presided over
bytheMinistry ofFinance andForeign Investment, theCommission includes permanent members representing
theMinistry ofForeign Trade, theMinistry ofForeign Affairs andCooperation, theMinistry forPromotion
oftheEconomy, Bank Al-Maghrib, theExchange Office andSMAEX.Kingdom ofMorocco WT/TPR/S/8
Page 45
(xi) Freezones andindustrial zones
95. Atpresent, there isafreezoneintheportofTangier. ADahir issued in1995 provides for
theestablishment ofother freezones within which exporters willbegranted exemption fromimport
duties andtaxes andareduction indirect taxes. Furthermore, under aDahir dating from 1992, an
offshore financial zone, inwhich three banks arenowestablished, namely theBanque nationale de
Paris (BNP), theInternational Bank ofTangier andAttijari International Bank, hasbeensetupin
Tangier. Although transactions involving residents remain governed bytheexchange control regulations
inforce, those involving non-residents arenotsubject tothese regulations (Annex I.1).
96. Within theframework ofanational programme, 24industrial zones havebeenestablished and
20others arecurrently being setup.Within these zones, landprices havebeenkeptrelatively low
bytheStatewhich assumes 25to50percentofthepurchase cost. Eventually, itisplanned toestablish
56industrial zones and1,028 commercial andtourism zones.33Furthermore, concessions provided
forbythecodes would begranted toinvestments according totheregion inwhich theyweremade.
(xii) Other provisions
97. Exporters ofgoods andservices areauthorized toopenaccounts inconvertible dirhams called
"convertibleexportpromotionaccounts"andaccountsinforeigncurrencieswithMoroccanbankshaving
thestatus ofapproved intermediaries.34These accounts maybecredited withatotalof20percent
oftheproceeds ofexporting goods andservices (tourism, transport, engineering, building andpublic
works and,generally speaking, anyservice activity generating foreign exchange earnings). Thebalances
inthese accounts maybeusedfreely bytheaccount holders tofinance foreign expenditure connected
withtheirtrading activities.
98. According totheauthorities, noimporting country hastaken anti-dumping orcountervailing
measures against Moroccan exports.
(4) Measures affecting production andtrade
(i) Subsidies andother concessions
99. When supply exceeds demand onthedomestic market, arefund maybegranted onexports
ofcereals, meat, milk andtheir derivatives. Therefund isequal tothedifference between the
intervention price andtheworld price onthemost significant reference market ineffect onthedate
ofexportation. Theintervention price ishigher thantheinternational price, butrefunds arelimited
bytheresources available intheAgricultural Development Fund (FDA). Operations ofthiskindwere
recorded foroliveoilandbarley in1988and1989, thatisbefore thecorresponding lawwasenacted.
According totheauthorities, therefund procedure hasnever beenapplied since.
100. Theinformation provided bytheMoroccan authorities mentions consumer subsidies forsugar,
edible oilsanddomestic flour (Table IV.3). TheCompensation Fund administers thesugar andoil
subsidies, while theONICL isresponsible forthefloursubsidy. Furthermore, asubsidy of40dirhams
isallocated toevery tonofcereals keptinstock foronemonth. Themeasure isintended toencourage
theformation ofreserve stocks andhence thecollection ofcereals intheproduction areas.
33World Bank (1994a).
34Exporters must repatriate their export earnings within 150days (Annex I.1).WT/TPR/S/8 Trade Policy Review
Page 46
101. Farmers areexempt fromalltaxation uptotheyear2000; fertilizer canbeimported freeof
duties andtaxes.
102. AsfarastheWTO Secretariat isaware, thenon-agricultural industries donotreceive anydirect
subsidies.
Table IV.3
Consumer subsidies, 1989-95
Commodity Unit 1989 1990 1991 1992 1993 1994 1995
Sugar
Quantities subsidized Thousand tonnes 725 773 786 796 820 ... ...
Cubes 469 466 490 506 520 ... ...
Granulated 256 307 296 290 300 ... ...
UnitcostaDirhams/kg.
Cubes 4.78 5.53 5.51 5.70 5.89 ... ...
Granulated 5.49 5.11 5.69 5.37 5.71 ... ...
Retail price Dirhams/kg.
Cubes 4.50 4.95 4.95 4.95 4.95 ... ...
Granulated 3.35 4.00 4.00 4.00 4.00 ... ...
Subsidy perunit Dirhams/kg.
Cubes 0.28 0.58 0.56 0.75 0.94 ... ...
Granulated 2.14 1.11 1.69 1.37 1.71 ... ...
Subsidy/unit cost Percent
Cubes 5.86 10.50 10.16 13.16 15.96 ... ...
Granulated 38.98 21.70 29.70 25.51 29.95 ... ...
Amount ofsubsidy Million dirhams 678 612 773 777 1,002 1,500 1,900b
Edible oils
Quantities subsidized Thousand litres 240.00 257.00 251.55 294.00 297.00 ... ...
UnitcostaDirhams/litre 8.79 9.10 10.03 10.65 10.91 ... ...
Average selling price Dirhams/litre 7.00 7.85 8.40 8.30 8.40 ... ...
Subsidy perunit Dirhams/litre 1.79 1.25 1.63 2.25 2.51 ... ...
Subsidy/unit cost Percent 20.36 13.70 16.25 21.13 23.01 ... ...
Amount ofsubsidy Million dirhams 430 320 409 662 745 1,200 1,500b
Domestic flour
Quantities subsidized Thousand tonnes 1,000 1,000 1,000 1,000 1,000 ... ...
UnitcostaDirhams/tonne 3,460 3,233 3,476 3,666 3,662 ... ...
Retail price (softwheat) Dirhams/tonne 2,000 2,000 2,000 2,000 2,000 ... ...
Subsidy perunit Dirhams/tonne 1,460 1,233 1,476 1,666 1,662 ... ...
Subsidy/unit cost Percent 42.21 38.14 42.47 45.44 45.38 ... ...
Amount ofsubsidy Million dirhams 1,460 1,233 1,476 1,666 1,662 910 275b
Total subsidies Millions dirhams 2,568 2,165 2,658 3,105 3,409 3,610 3,675b
... Notavailable.
a Sumofretail price andsubsidy perunit,including storage andtransport costs.
b Estimated.
Source: IMF(1995b); Government ofMorocco.Kingdom ofMorocco WT/TPR/S/8
Page 47
(ii) Assistance foradjustment, theregions andresearch anddevelopment
103. Theinformation available totheSecretariat doesnotmention anyassistance foradjustment
ortheregions. According tothepublished sources, theless-developed regions receive concessions
under theinvestment codes.
104. TheNational Institute ofAgronomic Research oftheMinistry ofAgriculture andAgricultural
Development isresponsible forcarrying outexperiments andstudies aimed atimproving anddeveloping
farming inMorocco.
(iii) Competition policy
(a) Competition legislation
105. Atpresent, Morocco doesnothaveanylegislation regulating competition. Adraftlawintended
toconsolidate theresults ofthecurrent liberalization process andprotect consumers isbeing prepared.
Thepreliminary draftseeks toestablish thearrangements governing freepricing andfreecompetition.
According totheauthorities, thisdraftstipulates theobligations ofproducers, competitors, providers
ofservices andother intermediaries. Itisintended toprevent anyanti-competitive practice, toensure
thateconomic relations remain transparent andtoputastoptorestrictive business practices. The
preliminary draftprovides forexceptions incrisis ordisorderly market situations andfortheprices
thatwillremain regulated.
106. Thepreliminary draftlawdeals withanti-competitive practices suchasprice fixing andabuse
ofmarket power. These practices areregulated andsanctioned, iftheyinterfere withtheproper
functioningofthemarket,byanindependentcommission(CompetitionCommission).Thedraftrequires
transparency andprohibits unfair orrestrictive practices suchascommercial boycotts andbidrigging
which willbesanctioned under theordinary law. Merger activity willalsobemonitored. Above a
certain threshold, notification ismandatory toobtain approval.
(b) Price regulation andcontrol
107. Atpresent, about 24to25percentofthegoods taken intoconsideration forthepurpose of
determining theconsumer price index aresubject toprice regulation.35TheStateregulates theprices
ofgoods whose consumption issubsidized, monopoly goods andservices, basic services (water,
electricity, compulsory motor vehicle insurance, transport, school books) andsocial goods andservices
(pharmaceuticals). Maximum profit margins arealsoestablished forcertain goods (foodstuffs and
pharmaceuticals). Likethose ofpetroleum products, theprices ofstaple agricultural products will
beliberalized in1996 withtheentry intoforce oftariff equivalents. TheInter-Ministerial Price
Commission, which consists ofrepresentatives oftheadministrations concerned, makes proposals
concerning price regulation; thedecisions aretaken bytheMinistry forPromotion oftheEconomy.
Certain margins andtariffs forregional services aredetermined bythelocalauthorities (governors)
following consultation ofaprovincial commission.
108. Theprice regulation policy isrouted bothinwages policy andinenergy andtransport costs.
Thus, minimum wages havebeenestablished forindustry (SMIG) andforagriculture (SMAG).
35World Bank (1994a) andIMF(1995b). Asindicated bytheauthorities, these figures could bemisleading
given thestructure oftheconsumer price index inwhich foodstuffs account for45percent.WT/TPR/S/8 Trade Policy Review
Page 48
109. Energy andtransport costs aretwofactors which, according toseveral sources, arepushing
upproduction costsinMorocco. Although based oninternational prices, because ofthevarious levies
towhich theyaresubjected, theconsumer prices forpetroleum products could notbeanyhigher.
Thedifference isattributable tothefactthatDomestic Consumption Tax(TIC) andVATmustbeadded
totheprice indexed onworld market prices togivethebuy-back price ("delivered torefinery price"
i.e.pricebefore refining).36Moreover, theconsumer priceisobtained onlyafterthevarious distribution
costs andmargins, thespecial margin forfinancing emergency stocks, theequalization taxes for
supporting butane prices andtheconsequences ofdelayed consumer price adjustments have been
incorporated intothebuy-back price.
110. Atpresent, theprices ofcertain staples, mainly foodstuffs, areState-controlled. Ingeneral,
thecontrols areapplied atlocal level bythemunicipalities andaffect retail selling prices. Atthe
provincial level, thewholesale prices offresh foodandvegetables andmeat aregenerally fixed by
theregional authorities.
(c) Privatization
111. Accordingtotheavailablestatistics,theportfolioofStateholdingsincludesalmost700enterprises
andindirect holdings, i.e.heldbypublic enterprise intheform ofsubsidiaries orsub-subsidiaries.
TheMoroccan legislation doesnotdefine apublic enterprise, butitrequires companies inwhich the
Statehasamore thanone-third interest tobeaudited bytheAudit Office. Thisportfolio contributes
20percenttoGDP formation and27percenttowages andother payroll costsandrepresents 17per
centofgross fixed capital formation. Theenterprises concerned areinvolved mainly inproducing
anddistributing water andelectricity, intelecommunications andinmining andcontribute 25percent
tomanufacturing output. There areabout 350companies inwhich theStateholds atleast34percent
oftheequity.
112. Therateofformation ofpublic enterprises (PE) hasslowed down since 1978. ALaw
promulgated in1990 created theconditions foraccelerated privatization ofPE. Atpresent,
113enterprises andhotels aretargeted forprivatization before 31December 1998(Tables AIV.3 and
AIV.4). Between February 1993, when privatization began, andJune1995, 16companies and16
hotels were privatized. Ofthese eight companies andfourhotels were bought wholly orpartly by
foreigners. These transfers ofPEtotheprivate sector generated atotalof7.3billion dirhams.
Chart IV.3gives abreakdown bycountry oftheresources generated byprivatization.
36In1994, TIConpetroleum products brought in5,082 million dirhams andVAT 1,249 million dirhams.Kingdom ofMorocco WT/TPR/S/8
Page 49
113. Law39-89 allows amaximum of10percentoftheequity inthecompanies andhotels scheduled
forprivatization tobereserved fortheemployees. Inthecaseofcertain agricultural companies, it
alsogives priority totheinhabitants oforthose withinterests intheregions inwhich those companies
areestablished, andtoMoroccan nationals living abroad. theMinistry ofPrivatization, afive-member
inter-ministerial commission andavaluation body areresponsible forprivatization operations once
Parliament hasadopted thelistofenterprises tobeprivatized. Theprivatization procedures begin with
anauditoftheenterprise inquestion byanindependent agency. According totheauthorities, thetransfer
procedure most frequently employed hasbeen invitation totender. Public enterprises have been
transferred directly when theformer approach proved unsuccessful ortotakeintoaccount theparticular
characteristics ofthecompany tobeprivatized. Thethirdmethod employed istowork through the
financial markets, more particularly thecasablanca stock market.
114. According totheauthorities, inthefuture, theroleoftheState willbelimited toregulation
andpromotion activities andthecreation oftheinfrastructure necessary toMorocco 'ssocial andcultural
well-being.
(iv) Protection ofintellectual property rights
115. Industrial property rights aregoverned bytheDahir of23June1916. Thislawgrants and
exclusive righttousepatents andtrademarks foraperiod of20years, or25years inthecaseofindustrialWT/TPR/S/8 Trade Policy Review
Page 50
designs37Itprovides, among other things, fornational treatment forforeigners andcivilandcriminal
penalties fortheinfringement ofholders 'rights. TheDahir permits anyinjured partytohaveinfringing
objects seized.38ByJune 1995, 23,860 patent applications, 56,530 trademark applications and
7,041 applications forindustrial designs hadbeenfiled.
116. According totheauthorities, thedraft lawcurrently being finalized isconsistent withthe
provisions oftheWTO Agreement onIntellectual Property Rights. Contrary totheDahir nowinforce,
thedraftlawwould include adefinition ofindustrial property rights, conditions ofpatentability and
aperiod offiveyears foratrademark tolapse through lackofuse. Thedraftwillstrengthen the
criminal penalties fortheinfringement ofindustrial property rights andwillprovide protection innew
areas suchasservice trademarks, geographical indications, designations oforigin, integrated circuits
andpharmaceuticals.AnotherinnovationofthedraftlawbasedontheprovisionsoftheWTOAgreement
iscompulsory licensing toenable theStateorathirdparty authorized bythecourt toobtain alicence
touseapatented invention.
117. Morocco isamember oftheBerne Convention, theUniversal Copyright Convention andthe
International Union fortheProtection ofPlant Varieties. TheMoroccan Copyright Bureau, formed
inMarch 1965 fromthemerger oftheAfrican Copyright Bureau andtheAfrican Bureau ofWriters
andLecturers, isthebody responsible foradministering copyright andcomes under theauthority of
theminister incharge ofinformation.
37ThisSection isbased oninformation supplied bytheMoroccan authorities. TheSecretariat hasnotseen
either theDahirs orthedraft lawonintellectual property rights.
38500,000piratedvideocassetteswererecentlyseizedbytheMoroccanCinematographicCentrewhichordered
their destruction (Africa Economic Digest, 14August 1995).