Farmers and traders wishing to export various agricultural commodities would have to acquire new export licenses as the government enhances reinforcement of the Customs and Excise (Amendment) Regulations, of 2023.
A statement issued by Secretary for Trade and Industry Christina Zakeyo says that export of soya beans, maize, groundnuts, pigeon peas, sunflower, sesame seeds, beans, sorghum, millet, cow peas and rice shall only be allowed to be exported from Customs Controlled Export Warehouses.
The ministry has since revoked all existing export licences for the commodities, saying exporters are required to reapply.
In an interview, Ministry of Trade spokesperson Mayeso Msokera said the move is to facilitate orderly trade and curb illicit exports.
“We noticed that some unscrupulous traders including Malawians, foreigners, refugees and asylum seekers were engaging in undocumented trade and smuggling of agricultural produce without requisite documents such as export licenses and business registrations.
“Some have been by-passing customs and export proceeds repatriation procedures and in so doing undermining economic interests of the country,” he said.
President of the Grain Traders and Producers Association Grace Mijiga rated the move as good but doubted the government’s preparedness and effectiveness.
“For starters, a lot of exporters are not aware of the system. The other issue is that we are hoping this system will not cause unnecessary delays. But it’s a very welcome initiative,” Mijiga said.
Agriculturalist Leonard Chimwaza said the move would help in increasing government revenue, promoting downstream investments and industries.
“However, this will also enhance lowering of the domestic price of the restricted products in the short run because of the increased supply in the domestic market. In essence this will impose a net welfare loss to a domestic economy in a country imposing it,” Chimwaza said.
Recently the Reserve Bank of Malawi floated an advert in The Daily Times newspapers advising all exporters whose exports value is equivalent to or exceeds $2,000 to be declared through an Electronic CD1 form under the Export Proceeds Reconciliation Module prior to exporting.
The Malawi Revenue Authority also recently advised exporters of agricultural produce to apply for licensing in general export warehouses and private warehouses to be issued by the Commissioner General.
