Tobacco and smoking devices cannot be bonded in Maldives

Maldives has amended its regulations for Customs, preventing tobacco products and smoking devices from being bonded.

As per the existing Customs regulations, a bonded warehouse can be registered for any product allowed to be imported or exported out of the country. This allowed businesses importing tobacco and smoking products to pay duties based on how much product they release from the bonded warehouse.

However, this clause has now been amended, meaning cigarettes, hand-rolled cigarettes, e-cigarettes, vape and tobacco sticks will be excluded from being bonded. Because of this, duties would need to be paid as a lump sum in one go when goods are cleared within the set timeframe.

In addition, Customs also amended the provision that allowed alcohol, pork, and products containing pork as well as tobacco products to be issued as ship stores.

Prior to this, these items were issues as ship stores by a registered bonded warehouse to the extent permitted by Customs. However, the section has now been omitted to prohibit the issuance of such goods as ship stores.

Additionally, Customs also amended the clause on establishing bonded warehouses.

As such, in addition to the areas under Customs' control as bonded warehouses, bonded warehouses can be established in areas where Customs offices are located.

The new amendment also changes the penalties imposed by Customs for fraudulent imports. This means if goods are smuggled or attempted to be smuggled into the country without inward and outward cargo manifests, a fine of MVR 200,000 would be imposed each time.

These regulations also impose a fine of MVR 100,000 if the vessel carrying goods travels or docks contrary to the documents submitted to Customs as the place of port, route or area used to enter Maldives.

The new regulations also calls for a fine of MVR 200,000 if the automatic identification system installed on vessels arriving in Maldives is turned off.

These amendments to the Customs regulations come as duties on vaping and tobacco products have been increased from yesterday until the ban, which takes effect between 15th November and 15th December.

According to the amendment on Maldives Import and Export laws, duties on cigarettes and self rolled cigarettes are now up by 50 percent with an additional MVR 8 charged on cigarettes. Duties on flavours and sticks included among smoking products which operate on heat without being lit are also up by 50 percent, with vape sticks having an additional charge of MVR 8 as well.

Additionally, duties charged on electronic cigarettes, vaping devices and tobacco heating products has also been increased by 200 percent, until its import ban on 15th November, and subsequent use and sale ban on 15th December.