'Unacceptable' Mozambique scanning charges draw screams of protest

ALAN PEAT THERE ARE international screams of protest at Mozambique’s universal imposition of a fee for electronic cargo-scanning – charged whether cargo is scanned or not. According to Brenda Horne, CEO of the Maputo Corridor Logistics Initiative (MCLI) – which is leading the local opposition – both the IMF and World Bank have expressed concern to the government of Mozambique that this scanning policy is not following international standards and that charges being imposed on all cargo are “unprecedented and unacceptable”. “Also,” she told FTW, “the European donor countries representing private business investments in the Port of Maputo have informed the government of their concerns that future private investments in Mozambique by European companies could be jeopardised when it is known that charges such as these can be allowed to be imposed on their investments in Mozambique.” It is believed that the US has also expressed concern that its security initiatives following 911 are being used as an excuse to scan cargo, when there is no requirement to do so in either its International Ship and Port Facilities Security Code or the recent Safe Ports initiative. The MCLI protest is based on the fact that the scanning fee will impose what Horne said “can only be described as a tax” in excess of US$6-million (R43.5-m) a year on businesses using the Maputo Corridor at current port throughput levels. "Already SA and Swazi customers are reacting by transferring their business back to Durban and Richards Bay where there are no charges for scanning imposed.” Future investments in Maputo port by SA and Mozambican industry are also under threat. “Non-intrusive cargo scanners are used worldwide in ports by customs authorities to detect goods on which customs duty would otherwise not have been paid,” said Horne, “and, therefore, they are welcome in Mozambique. “Their principal objective is detection of contraband cargo – and the duty recovered pays for the scanner and its operation. “In only a very small percentage of ports are charges imposed on customers – and then only for containers which have been actually scanned.” The normal interpretation amongst international port operators is to scan only a random selection of containers, generally on pre-advice from police or customs authorities. For example, in the Port of Durban – which is a direct competitor of Maputo – a scanner is used in the container terminal to scan 10–15% of the container throughput. And this service is provided free of charge to customers by the SA Revenue Service (Sars). In Richards Bay – the nearest competing port to Maputo – no scanners are used because the port only handles bulk cargo. This does not require scanning as it is in-transit, and not dutiable, and is not considered to be a security risk. “What is happening in Maputo,” said Horne, “is that Kudumba – with official approval of the Mozambique government – is imposing what is referred to as “a service charge” on all cargo passing through the Port of Maputo. This whether it is scanned or not, and whether the customer wants his cargo to be scanned or not.” Effectively, all containers are levied with a scanning charge of US$100/TEU for imports; US$70 for exports; US$40 for transit; and US$20 for empties. It also hits all other cargo, including bagged and bulk cargo such as coal, ferrochrome, citrus fruit, sugar and granite.