Cabo Verde Import Tax

Cabo Verde (Cape Verde), an island nation located off the coast of West Africa, is a small archipelago with limited natural resources and a growing reliance on imports to meet its domestic needs. As a member of the Economic Community of West African States (ECOWAS), Cabo Verde has structured its customs tariff regime in alignment with the regional Common External Tariff (CET). Given the country’s geographic isolation and limited agricultural and industrial capacity, Cabo Verde imports a wide range of goods, including foodstuffs, industrial goods, and consumer products. The government applies a balanced customs tariff system to generate revenue while protecting emerging industries and ensuring that essential goods remain affordable for its population.

Custom Tariff Rates by Product Category in Cabo Verde

1. Agricultural Products

Agriculture plays a relatively small role in Cabo Verde’s economy due to its dry climate and limited arable land. As a result, the country relies heavily on imports to meet its food requirements. The tariff structure for agricultural products reflects the need to protect local farmers while ensuring food security through affordable imports.

1.1 Basic Agricultural Products

• Cereals and Grains: Cabo Verde imports significant quantities of rice, wheat, and maize due to insufficient domestic production. Tariffs on these essential products are generally kept low to ensure food affordability.
  • Rice: Imports are typically subject to a 5% to 10% tariff.
  • Wheat and maize: Generally taxed at 5%, with some variations depending on seasonal demand.
• Fruits and Vegetables: Given its limited agricultural output, Cabo Verde imports a wide variety of fruits and vegetables.
  • Citrus fruits (oranges, lemons): Typically taxed at 10% to 15%.
  • Leafy vegetables, tomatoes, and onions: Tariffs generally range from 10% to 20%, with reduced rates on essential items during shortages.
• Sugar and Sweeteners: Cabo Verde imports most of its sugar and sweeteners, with tariffs designed to protect local production while maintaining affordable consumer prices.
  • Refined sugar: Subject to a 15% tariff.

1.2 Livestock and Dairy Products

• Meat and Poultry: Cabo Verde imports most of its meat and poultry due to limited local production, and tariffs are designed to ensure affordability while supporting domestic livestock farming.
  • Beef and lamb: Typically taxed at 10% to 20%, depending on the source.
  • Poultry (chicken and turkey): Imports are generally taxed at 10% to 15%, with reduced tariffs for products from ECOWAS countries.
• Fish and Seafood: Fish and seafood are important sources of protein in Cabo Verde, and imports face relatively low tariffs to maintain supply.
  • Frozen fish: Typically taxed at 10%.
  • Canned seafood: Subject to a 15% tariff.
• Dairy Products: Dairy imports, including milk powder, cheese, and butter, face moderate tariffs to support local dairy farmers while ensuring essential products are available.
  • Milk powder: Generally taxed at 5%.
  • Cheese and butter: Tariffs range from 10% to 15%.

1.3 Special Import Duties

Cabo Verde benefits from duty-free or reduced tariffs on agricultural imports from ECOWAS member states due to regional trade agreements. Additionally, under the Generalized System of Preferences (GSP), Cabo Verde imports certain agricultural products from developing countries at reduced or zero tariffs.

2. Industrial Goods

Cabo Verde imports most of its industrial goods, including machinery, equipment, and construction materials, to support its infrastructure development and nascent manufacturing sector. Tariffs on these imports are structured to encourage industrial growth while ensuring access to essential equipment.

2.1 Machinery and Equipment

• Industrial Machinery: To support local industry, tariffs on imported machinery are generally kept low.
  • Construction machinery (excavators, bulldozers): Typically taxed at 0% to 5%.
  • Manufacturing equipment: Import duties range from 0% to 10%, depending on the type of equipment.
• Electrical Equipment: Electrical machinery and equipment, such as generators, transformers, and industrial electronics, are essential for Cabo Verde’s energy and infrastructure sectors. These imports generally face low tariffs to promote investment.
  • Electrical machinery: Typically taxed at 5% to 10%.

2.2 Motor Vehicles and Transportation

Cabo Verde imports a significant number of motor vehicles, both for personal and commercial use. The tariff regime on motor vehicles varies depending on the vehicle type and environmental considerations.

• Passenger Vehicles: Tariffs on passenger cars vary based on engine size and the type of vehicle.
  • Small passenger vehicles (under 1,500cc): Typically taxed at 10% to 15%.
  • Luxury cars and SUVs: Higher tariffs of 20% to 30% apply, especially for vehicles with larger engines.
• Commercial Vehicles: Trucks, buses, and other commercial vehicles are subject to 10% to 20% tariffs, depending on their size and purpose.
• Vehicle Parts and Accessories: Tariffs on vehicle parts and accessories, such as tires, batteries, and engines, generally range from 5% to 15%, with lower rates applied to parts essential for public transportation or industry.

2.3 Special Import Duties for Certain Countries

As a member of ECOWAS, Cabo Verde benefits from zero tariffs on industrial goods imported from other ECOWAS member states. Imports from non-ECOWAS countries, such as China, Japan, and the United States, face standard tariffs under Cabo Verde’s customs tariff schedule.

3. Textiles and Apparel

Cabo Verde imports a substantial amount of textiles and apparel from countries like China, Portugal, and Brazil. The tariff structure for textiles and apparel is designed to protect local garment manufacturers while ensuring affordable access to clothing.

3.1 Raw Materials

• Textile Fibers and Yarn: Cabo Verde imports raw materials such as cotton, wool, and synthetic fibers to support local textile production. These imports are generally subject to low tariffs to encourage domestic manufacturing.
  • Cotton and wool: Typically taxed at 5% to 10%.
  • Synthetic fibers: Tariffs range from 10% to 15%.

3.2 Finished Clothing and Apparel

• Clothing and Apparel: Imported garments are subject to moderate tariffs, with higher rates applied to luxury or branded items.
  • Casual wear and uniforms: Generally taxed at 10% to 15%.
  • Luxury and branded apparel: Tariffs can reach 20% to 25% for high-end clothing.
• Footwear: Imported footwear faces tariffs ranging from 10% to 20%, depending on the material and brand.

3.3 Special Import Duties

Textiles and apparel imported from ECOWAS countries benefit from zero tariffs under regional trade agreements. Imports from non-preferential trade countries face standard tariffs outlined in Cabo Verde’s customs schedule.

4. Consumer Goods

Cabo Verde imports a wide variety of consumer goods, including electronics, household items, and furniture. The tariff structure for these goods is designed to balance affordability for consumers with the protection of local businesses.

4.1 Electronics and Home Appliances

• Household Appliances: Large household appliances, such as refrigerators, washing machines, and air conditioners, are subject to moderate tariffs.
  • Refrigerators and freezers: Typically taxed at 10% to 15%.
  • Washing machines and air conditioners: Subject to tariffs of 10% to 20%.
• Consumer Electronics: Electronics, such as televisions, smartphones, and laptops, are essential imports, and tariffs are applied to regulate the market.
  • Televisions: Typically taxed at 10%.
  • Smartphones and laptops: Import duties generally range from 5% to 10%.

4.2 Furniture and Furnishings

• Furniture: Imported furniture, including home and office furnishings, is subject to tariffs ranging from 10% to 20%, depending on the material and design.
  • Wooden furniture: Typically taxed at 15%.
  • Plastic and metal furniture: Subject to 10% tariffs.
• Home Furnishings: Items such as carpets, curtains, and home décor products are generally taxed at 10% to 15%.

4.3 Special Import Duties

Consumer goods imported from ECOWAS countries benefit from duty-free access or reduced tariffs. Goods from non-preferential countries face standard tariffs based on Cabo Verde’s customs tariff schedule.

5. Energy and Petroleum Products

Cabo Verde imports most of its energy needs, particularly petroleum products, due to limited domestic energy production. Tariffs on energy imports are structured to maintain affordability while encouraging investment in renewable energy.

5.1 Petroleum Products

• Crude Oil and Gasoline: Tariffs on crude oil and gasoline are relatively low to ensure affordable fuel prices for consumers and businesses.
  • Crude oil: Typically subject to zero tariffs.
  • Gasoline and diesel: Tariffs generally range from 5% to 10%.
• Diesel and Other Refined Petroleum Products: Diesel and aviation fuel are taxed at 5% to 10%, depending on the source and use.

5.2 Renewable Energy Equipment

• Solar Panels and Wind Turbines: To promote the use of renewable energy, Cabo Verde applies zero tariffs or low tariffs on renewable energy equipment, such as solar panels and wind turbines, to encourage investment in clean energy technologies.

6. Pharmaceuticals and Medical Equipment

The government of Cabo Verde prioritizes access to affordable healthcare, and as such, tariffs on essential medicines and medical equipment are kept low or zero to ensure their affordability and availability.

6.1 Pharmaceuticals

• Medicines: Essential medicines, including life-saving drugs, are typically subject to zero tariffs to ensure affordability for the population. Non-essential pharmaceutical products may face tariffs of 5% to 10%.

6.2 Medical Devices

• Medical Equipment: Medical devices, such as diagnostic tools, surgical instruments, and hospital equipment, are generally subject to zero tariffs or low tariffs (5% to 10%), depending on the product’s necessity and the country of origin.

7. Special Import Duties and Exemptions

7.1 Special Duties for Non-ECOWAS Countries

Imports from non-ECOWAS countries, including China, the United States, and European Union countries, are subject to Cabo Verde’s standard customs tariffs. These goods may face higher tariffs compared to those imported from ECOWAS member states.

7.2 Bilateral and Multilateral Agreements

• ECOWAS: Cabo Verde benefits from duty-free or reduced tariff imports from other ECOWAS member states, promoting regional trade.
• Preferential Trade Agreements: Under preferential agreements with Portugal, Brazil, and the European Union, Cabo Verde benefits from reduced tariffs on certain imported goods, particularly industrial and consumer products.

Country Facts

• Official Name: Republic of Cabo Verde
• Capital City: Praia
• Largest Cities:
  • Praia (Capital and largest city)
  • Mindelo
  • Santa Maria
• Per Capita Income: Approx. $3,600 USD (2023 estimate)
• Population: Approx. 560,000 (2023 estimate)
• Official Language: Portuguese
• Currency: Cape Verdean Escudo (CVE)
• Location: Cabo Verde is an island country located in the Atlantic Ocean, approximately 570 kilometers off the west coast of Africa.

Geography of Cabo Verde

Cabo Verde is an archipelago consisting of 10 volcanic islands and several islets, covering an area of 4,033 square kilometers. The islands are divided into two groups: the windward islands (Barlavento) and the leeward islands (Sotavento).

• Terrain: Cabo Verde’s terrain is diverse, ranging from rugged mountains and active volcanoes to coastal plains and dry, arid landscapes.
• Climate: The country has a tropical climate, with two main seasons: a dry season (November to July) and a rainy season (August to October), though rainfall is scarce.
• Volcanoes: The most prominent geographic feature is the Pico do Fogo, an active volcano on the island of Fogo, which is the highest point in the country.

Economy of Cabo Verde

Cabo Verde’s economy is largely service-oriented, with a growing focus on tourism, remittances from the diaspora, and small-scale manufacturing. The country has limited natural resources, and imports are critical to sustaining the economy.

1. Tourism

Tourism is a key driver of Cabo Verde’s economy, contributing significantly to GDP and employment. The country’s pristine beaches, warm climate, and vibrant culture attract visitors from around the world, particularly from Europe.

2. Agriculture and Fishing

Agriculture contributes a small portion to Cabo Verde’s economy, primarily due to the country’s dry climate and lack of arable land. However, fishing remains an important economic activity, particularly for local consumption and export to European markets.

3. Remittances

Remittances from the large Cabo Verdean diaspora, particularly from Portugal and the United States, play a vital role in the country’s economy, providing much-needed foreign exchange and supporting household incomes.

4. Manufacturing and Services

Cabo Verde has a small but growing manufacturing sector, primarily focused on food processing, beverages, and light industry. The country also has a well-developed services sector, which includes banking, telecommunications, and transportation.