A duty is a type of tax imposed by the government on the importer of a foreign good or service. Duties are collected by customs to protect local industries. The amount of duty to be paid varies according to the product and the country of origin, and is based on the characteristics of the imported good, such as value, HS code, weight, etc. It is also based on trade agreements. It also depends on trade agreements.
In general, taxes are a source of revenue for the government that are imposed on goods. Specifically, import and export taxes are levied on goods purchased, imported or exported from a country when goods enter or leave the country. Import taxes are paid by the importer. Common taxes include sales tax, value added tax (VAT) and goods and services tax.
Customs duty (CD): varies according to the nature of the goods imported (see East African Community Customs Management Act, 2004)
Administrative fee: 0.5% on imported goods (see Budget Act)
Vehicle Consumption Tax (VCT): varies according to the type of vehicle, (see Budget Act, Article 62 point 4)
Computer fee (RI): BIF 10,000 fixed amount per declaration. (consult the Budget Law)
Shirt Folder: 5 USD fixed amount per declaration (consult the East African Community Customs Management Act, 2004)
Road Security Tax (TSR): The basis of calculation is the CIF value (Cost, Insurance, Foreign Freight) plus the Domestic Freight; i.e. (CIF+Domestic Freight)* 1.15 %. (consult the Budgetary Law)
Flat-rate levy: 3% of the CIF value of the goods (consult the Budgetary Law)
Value Added Tax (VAT):
Value Added Tax (VAT), introduced in 2009 in Burundi, is applied at the standard rate of 18% to most goods and services, including those imported. Article 19 of the VAT law of 16 November 2020 introduced a reduced rate of 10% on foodstuffs, agricultural products and inputs. Exports are also subject to the zero-rating regime. The Law provides a list of exempted goods (imported or locally produced); they are relatively limited. They include: financial transactions; certain real estate transactions; imports and deliveries of medicines, pharmaceutical products, equipment and specialised products for medical activities; deliveries of agricultural products not processed by their producers; deliveries of postage stamps, revenue stamps and other similar valuables; imports of goods benefiting from a customs exemption; and travel prices resulting from international tariffs.
Exemption
An exemption is a waiver of the payment of a tax or duty under certain conditions defined by law. The Act provides a list of exempted imported or locally produced goods, which are relatively limited and include: financial transactions, certain real estate transactions, imports and deliveries of medicines, pharmaceuticals, equipment and specialized products for medical activities, deliveries of agricultural products not processed by their producers, deliveries of postage stamps, revenue stamps and other similar valuables, imports of goods benefiting from a duty-free allowance, and prices of travel resulting from international tariffs.
The request is addressed to the Commissioner General of the Office Burundais des Recettes (OBR) when the goods have arrived on Burundian territory or even before they have arrived in order to facilitate the speedy conduct of business.
The beneficiaries of the exemptions are:
- Investors
- Construction companies with external financing
- Donations made to the State
- Non-profit associations
- Zero charge for executives and senior managers
- Parliamentarians and members of the government
- Presidency, Army and Police
Categories of products and entities that benefit from the exemptions:
1. Personal effects :
- East African Community Customs Management Act, 2004: (see https://info.commerce.bi/media/LOI%20SUR%20LA%20GESTION%20DES%20DOUANES%20DE%20LA%20CAUMMUNAUTE%20EST%20AFRICAINE.pdf)
- Law NO 1/12 of 29/07/2013 revising law NO 1/02 of 17/02/2009 on VAT institutions, Art 7.j
(consult: https://obr.bi/images/PDF/LOI_TVA_du_16_novembre_2020_red.pdf)
- Budgetary law for the year 2015 for vehicles older than one year (consult: http://www.droit-afrique.com/upload/doc/burundi/Burundi-LF-2015.pdf)
2. Foreign non-governmental organisations :
- East African Community Customs Management Act: (consult: https://info.commerce.bi/media/LOI%20SUR%20LA%20GESTION%20DES%20DOUANES%20DE%20LA%20CAUMMUNAUTE%20EST%20AFRICAINE.pdf)
- Law NO 1/12 of 29.07/2013 revising law NO 1/02 of 17/02/2009 on VAT institutions, Art 7.j (consult: https://obr.bi/images/PDF/LOI_TVA_du_16_novembre_2020_red.pdf)
3. Medicines, pharmaceutical products, medical materials and equipment, vaccines, raw materials for the manufacture of medicines:
- East African Community Customs Management Act: (consult https://info.commerce.bi/media/LOI%20SUR%20LA%20GESTION%20DES%20DOUANES%20DE%20LA%20CAUMMUNAUTE%20EST%20AFRICAINE.pdf)
- Common External Tariff (see https://obr.bi/images/PDF/TEC_EAC_TEC_2017_VERSION.pdf)
- Law NO 1/12 of 29.07/2013 revising law NO 1/02 of 17/02/2009 on VAT institutions, Art 7.j (consult: https://www.obr.bi/images/PDF/LOI_TVA_du_16_novembre_2020_red.pdf)
4. Veterinary medicines:
- East African Community Customs Management Act; (consult: https://info.commerce.bi/media/LOI%20SUR%20LA%20GESTION%20DES%20DOUANES%20DE%20LA%20CAUMMUNAUTE%20EST%20AFRICAINE.pdf)
- Common External Tariff; (consult: https://obr.bi/images/PDF/TEC_EAC_TEC_2017_VERSION.pdf)
- Law NO 1/12 of 29.07/2013 revising law NO 1/02 of 17/02/2009 establishing VAT, Art 7.j: (consult: https://obr.bi/images/PDF/LOI_TVA_du_16_novembre_2020_red.pdf)
5. Agricultural inputs :
- Common external tariff: (consult: https://obr.bi/images/PDF/TEC_EAC_TEC_2017_VERSION.pdf);
- Law NO 1/12 of 29/07/2013 revising law NO 1/02 of 17/02/2009 on the institution of VAT, Art 7, j
(see: https://obr.bi/images/PDF/LOI_TVA_du_16_novembre_2020_red.pdf)
- Ministerial Order n°540/1351/2013 of 23 September 2013 on the implementation of Law n°1/12 of 29 July 2013 revising Law n°1/02 of 17 February 2009 on the institution of value added tax " VAT
- (see: https://www.obr.bi/images/stories/download/Publications/Mesures_application_TVA.pdf)
