Under the U.S.-Morocco FTA, tariffs on more than 95% of qualifying consumer and industrial goods were immediately eliminated. Remaining tariffs for most qualifying goods will be eliminated over a nine-year period that began on January 1, 2006. For a limited number of products, tariffs will be eliminated over a period of up to 15 years.
The agreement also offers new access to services, intellectual property protection, a predictable legal framework for U.S. investors, open and fair government procurement, and strong protections for labor and environment.
If the import is an unfinished product requiring further processing or assembly in Morocco, duties may be reduced further. Import duties vary from 2.5 to 35% for many raw materials and equipment. Imports are also subject to a Value Added Tax (VAT), varying from 0 to 20%. VAT is not always paid on locally produced goods (e.g., corn) or on some vehicles used for international transportation (e.g., moving vans).
In addition to the 1995 Finance Act, a para-fiscal tax (taxe parafiscale) of 0.25% on imports was introduced to finance activities such as technical inspections for export goods, economic and export promotion, industrial development, and small-scale production. The following are exempt from the "taxe parafiscale": All merchandise imports qualifying for:
1
. Special customs procedures or concessions granted in the context of officially approved investment programs,
2
. Exemption or total relief from import duties and taxes by virtue of legislative provisions or special regulations, and
3
. Preferential trading agreements between Morocco and other countries.