Exporting to Morocco

Question posted by HARIS HAFEEZ, on behalf of MCD Trading in KT6

Hi,

I am new to trading business but I have built a network of friends and (their friends) in Morocco which I believe I can tap into for exporting.

I am looking to start with exporting TV units(initially) to Morocco. Can someone please tell me if I (or my Moroccan partners) need a special license from the Moroccan government?

Is there any other advice or 'insider' knowledge about exporting specifically to Morocco?

Many thanks in advance.
Harris.

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Mike Josypenko, on behalf of The Institute of Export in PE2.

Hi Haris.

If you are new to international trading, there are two main areas which you and your contacts need to be aware of:
1) Export regulations governing you exporting products from the UK, and
2) Import regulations which govern your clients importing products into Morocco.

In your case, you will need to register with HM Revenue & Customs, and obtain an Economic Operator Registration & Identification number (EORI) to start exporting. see http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_PROD1_028517&propertyType=document

When you start exporting, You will need to check that any products you export are not subject to export licencing controls or restrictions. In the case of TV sets, this should not be a problem, but you can find this out by checking the customs commodity code for your product - to find your commodity code and check whether there are any export licence issues, go to https://www.gov.uk/trade-tariff/sections .
All goods exported from the UK must undergo export customs clearance; this can usually be done for you by a freight company or customs agent.

With regard to importing into Morocco, I believe that any importers need to have a engagement d'importation (from a bank) and possibly a licence d'importation (import licence) from the MInistry of Foreign Trade.
I am not aware of any restrictions on importation of TV sets into Morocco, but your clients / contacts should check locally.
Normally import customs duties are charged when goods are imported into a country. There is a trade agreement .between Morocco and the EU, which allows goods of EU origin to be imported into Morocco without duty, if accompanied by either a certificate, called an EUR1 form, or a declaration on a sales invoice. Check with the documentation department of your local Chamber of commerce about whether your good qualify for this.

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Hello Harris
I would just add that most electrical products do have to meet standards set by the importing country. This is not just the obvious electrical safety and voltage compatibility but also things such as electrical interference with other products.

If your televisions incorporate 'smart' features such as set top boxes, digital receivers, decoders, ability to interface with the internet etc. this will also have to meet the required standards.

It is often the case that labels will need to be affixed to evidence that these standards have been met.

Regards,
Susan

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HARIS HAFEEZ, on behalf of MCD Trading in KT6.

Thank you Mike and Susan. Those replies help!

I have come to understand that although there aren't any restrictions on importing TVs into Morocco, I will need a local party there to 'receive' the goods. There are currently two options: a) have a retailer/wholesaler import the lot, b) I register a company there through my contacts and have it import the goods.

Can either of you (or anyone else) help me find out what is the best way to register a company in Morocco? Can I use a 'shell' company to import the goods?

Lastly, will it be simpler to create a 'branch' of my trading company here in the UK to facilitate the export/import process?

Many thanks for helping a rookie exporter :)

Harris

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HMRC Advisor, on behalf of HM Revenue & Customs in G67.

Information on the Customs requirements for exporting is given in HMRC Public Notice 275. All notices can be found on our website www.hmrc.gov.uk under Quick Links > Library > Official Statistics – Publications – Notices, Info Sheets & Other Reference Materials > Import, Export & International Trade. The Public Notices are in numerical order.

Further detailed information regarding exporting goods outside the EU can be found on our website by using the following link http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&propertyType=document&resetCT=true&id=HMCE_PROD1_032667

You may find the Export Best Practice Guide particularly helpful

HM Revenue & Customs
Customs International Trade & Excise
www.hmrc.gov.uk/contactus

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Badia Mrani, on behalf of UK Trade & Investment Morocco in Morocco.

Hi Haris

1/ Standards:

In the case of TV units, before exporting it is advisable to check with the Moroccan Standards Institute (see below) with regards the existence of specific norms.
Moroccan Standards are regulated by the Moroccan Standards Institute (Institut marocain de normalisation – IMANOR –) which is part of the Ministry of Trade and Industry and New Technologies (Ministere du l‟Industrie, du Commerce et des Nouvelles Technologies) (www.mcinet.gov.ma ). Generally, in the absence of separate Moroccan standards, goods that are freely available within the EU are considered to meet safety requirements.

2/ Import licence and customs duties:

Most products can be imported into Morocco without an import licence. The customs web site (www.douane.gov.ma/adil ) does not mention any import licence requirement for TV units.

Customs tariffs for industrial products entering Morocco from the EU were dismantled by 1st March 2012.For further information on the EU agreement and customs duties and tariffs, consult Morocco's customs website (see above) under ADIL. TV units fall under chapter 8528.

3/ Local representation:

In most cases local representation, in the form of an agent or distributor, is necessary in order to do business in Morocco (this is a matter of practicality, rather than a legal requirement). UK exporters can approach the Moroccan market in several ways:

• Export direct
• Set up a local company/branch
• Appoint a distributor/agent
• Form a joint venture with a Moroccan company

However, as already noted, even when exporting direct it is advisable to appoint a local representative.
If you decide to set up a local branch, most common types of are the limited liability company (SA) and the private limited company (SARL). You will need to contact a local chartered accountant company to help register your company.

Regards.
Badia Mrani
UKTI Casablanca - Morocco

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Bryony Porcas, on behalf of Flo-FX in E1.

Hi Haris,

We are able to beat corporate bank rates on foreign currency exchange. Due to the fact we are a trading name of Ebury Partners (whose turnover last year was in the region of £1bn), we have virtually no overheads and so can substantially undercut banks and competitors. We carry out all the necessary KYC checks in line with FCA regulations and maintain a fervent desire to ensure all our clients receive the fastest, most efficient service possible.

Please send me an email on b.porcas@flo-fx.com or visit our website at www.flo-fx.com for more information.

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