Cross Border Trade - Malawi

Cross border trade in Malawi

Malawi has a Simplified Trade Regime (STR) Agreement with Zambia and Zimbabwe, under the auspices of COMESA. Under the STR, governments have agreed on a list of products that do not require a certificate of origin for small consignments. Thus, only goods with a value of not more than USD 1,000 are eligible under the STR. The list is displayed at the border posts and is available at the offices of the Cross Border Traders Association and Malawi Revenue Authority both at the border and in the main cities. A COMESA Simplified Declaration and Certificate of Origin can be obtained at the border post and is signed by the Customs Office.

The STR is about proving the origin for the goods in a simple way. Some goods such as agricultural products originate in one country. Other items, especially those which are manufactured, may be made up of parts from other countries outside COMESA. There are special rules that determine whether a good can be of ‘local origin’, depending on what proportion of the material is imported, or what percentage of the value added is local.

Organizations working with cross border traders

Malawi Revenue Authority

The Malawi Revenue Authority (MRA) is the government institution responsible for assessment, collection and accounting for tax revenues. Its specific functions include: administration and enforcement of tax laws; promoting voluntary tax compliance; and improving efficiency and effectiveness to maximize revenue collection.

Trade facilitation at border posts

MRA mainly supports traders through its Customs function at border posts. An exporter wishing to export goods outside Malawi must register with the Malawi Revenue Authority for a Tax Payer Identification Number (TPIN). Customs officials help traders to certify if the goods are eligible under the STR instrument. They also help in facilitate goods certification where they do not qualify for STR. MRA officials also help traders in the declaration of goods for export or import right at the border.

Cross border business opportunities

Malawi’s export opportunities to its neighbors are resource-based manufactured goods such as sugar, oil seeds, fertilizers and simply worked wood, low-technology (construction equipment) manufactured goods and agricultural crops.

Quality and standards

Before exporting goods from Malawi an exporter should ensure that the goods do not fall into the category of prohibited goods. Prohibited goods cannot be exported, transited, sold or circulated in Malawi. Among prohibited goods are narcotics, psychotropic substances and hazardous chemical substances.

One exporting or importing goods in Malawi must adhere to technical standards. Technical Standards are mandatory technical regulations that define a benchmark with which products must comply to gain access to a market while meeting the authorities and consumers' demand for safe and quality products. The Malawi Bureau of Standards (MBS) formulates national standards (Malawi Standards) in all fields of interest. The standards act as a base or guideline for measuring the quality, performance or fitness for intended use of a product or service.