Madagascar Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in madagascar, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Trade Barriers & Import Tariffs
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Like many developing countries, Madagascar collects a significant share of government revenue through customs duties and value-added tax (VAT) on imports. Customs duties range from five to 20 percent and are modified annually when the budget is developed. The VAT on imports has held steady at 20 percent for several years. While Madagascar does not have significant formal non-tariff barriers to trade, its higher-than-average customs duties (in comparison with other developing countries) constitute an indirect tariff barrier. About 40 percent of imports are subject to a 20 percent customs duty, with beverages, fisheries, flora and fauna, and textiles being among the most protected products. During the COVID-19 pandemic, the government exempted medical equipment and accessories from import duties. Key sectors like mining and textiles receive fiscal benefits under industrial promotion schemes, including waivers on customs import duties and VAT.

Countries who partner with Madagascar in preferential trading blocs such as the Interim Economic Partnership Agreement with the European Union (APEi), Southern African Development Community (SADC), the Indian Ocean Commission (IOC), and the Common Market for Eastern and Southern Africa (COMESA) can export their goods into Madagascar without paying customs duties. U.S. firms with manufacturing presences in member countries of those groups can obtain duty-free entry to the Malagasy market under certain conditions. 

To look up duties and tariffs use, use the Customs Info Database tariff look-up tool, available on trade.gov (free registration required), to estimate duties and taxes.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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