CIF value and customs value: the basis for import duties

Customs value, the basis for every duty

Customs value is, in principle, the transaction value: the price actually paid or payable for the goods, adjusted under precise rules (article 20 of the Moroccan Customs Code). Since 1998 Morocco has applied the WTO Customs Valuation Agreement, whose rules the Code reproduces.

The Agreement lets each country decide whether to include freight and insurance up to its territory. Morocco includes them, so customs value is a CIF (cost, insurance, freight) value, set at the point where the goods enter Moroccan territory.

What to add to the invoice price

When borne by the buyer and not already in the price, these items are added to the value (article 20 ter):

• freight, loading, unloading and handling up to the goods’ entry into Morocco;
• insurance up to entry into Morocco;
• commissions and brokerage, except buying commissions paid to your own agent;
• containers and packing costs (labour and materials);
• goods and services supplied free to the seller: materials, tools, moulds, engineering and plans made outside Morocco;
• royalties and licence fees you must pay as a condition of the sale.

Nothing else may be added, and every addition must rest on objective, quantifiable data.

What is not part of the value

Provided they are shown separately from the price on the invoice or in the documents, these costs are excluded (article 20):

• freight and insurance after entry into Morocco;
• assembly, installation, maintenance or technical assistance after import;
• customs duties and taxes paid in Morocco.

Depending on the Incoterm of your purchase

The Incoterm on the invoice tells you what the price already covers. In practice, this is what to add to reach the customs value (Incoterms® 2020 rules):

Conversion into dirhams

Foreign-currency amounts are converted at the rate published by Bank Al-Maghrib on the last business day before the declaration is registered (article 20 decies). It is a daily rate, so the filing date matters.

The duty rates applied are those in force on the date the declaration is registered, while the elements of assessment (value, type, origin) are those of the goods when they entered Morocco.

From customs value to the duties you pay

1. 01

   Import duty (DI)

   The rate of the tariff line applies to the customs value (or a specific amount for some products). It can be reduced with proof of origin when an agreement applies.

2. 02

   Parafiscal import tax (TPI)

   0.25% of the customs value, with exceptions (suspensive regimes, some agreements, industrial acceleration zones…).

3. 03

   Import VAT

   Calculated on the customs value plus import duty, TPI and other entry duties and taxes (such as excise). The standard rate is 20%.

Other charges may apply: the MAD 150 IT fee per declaration, storage tax if goods stay under customs control for more than three days, and the customs broker’s fees.

If customs disputes your value

Customs can ask for further evidence (invoice, proof of payment, contract, freight costs). Without a convincing answer within the deadline, it sets aside the declared value and applies the fallback methods in order: identical goods, then similar goods, then the deductive method, computed value and finally “reasonable means”.

The law forbids minimum, arbitrary or fictitious values. Some products considered sensitive (food, electronics, clothing, footwear) are nevertheless subject to in-depth value checks.

In case of disagreement, the dispute can go to the local consultation commission, then to the national conciliation and appeal commission. A false declaration of value carries a fine of one and a half times the duties put at risk.

Frequently asked questions