Angola's Imports: Trade Partners And Key Goods

Angola's import procedures are notoriously time-consuming and bureaucratic, with high associated costs. The country's imports are dominated by refined petroleum, wheat, cars, poultry meat, and palm oil, with China, Portugal, the Netherlands, the United Arab Emirates, and India being the top import partners. The US also has significant trade relations with Angola, with a trade deficit of $575 million in 2023. Angola's import duties vary from 2% to 50%, with an average of 10.9%.

Angola's top imports: refined petroleum, wheat, cars, poultry meat, and palm oil

Angola's top imports are refined petroleum, wheat, cars, poultry meat, and palm oil. In 2022, Angola imported $16.5 billion worth of goods, making it the 92nd largest importer in the world. The import process in Angola is time-consuming and bureaucratic, with high costs and lengthy compliance procedures.

Angola's refined petroleum imports totalled $2.16 billion in 2022, making it the country's largest import by value. Refined petroleum is a critical product for Angola, as it is used across various sectors, including transportation, industry, and power generation.

Wheat is Angola's second-largest import, with a value of $545 million in 2022. Angola relies heavily on wheat imports to meet its domestic food demand, as local production does not meet the country's needs.

Cars are also a significant import for Angola, with a total import value of $468 million in 2022. The country's growing economy and increasing consumer purchasing power have driven the demand for vehicles.

Poultry meat is another important import for Angola, valued at $436 million in 2022. Angola's poultry industry is still developing, and the country relies on imports to meet the growing demand for poultry products.

Palm oil is Angola's fifth-largest import, with a value of $355 million in 2022. Palm oil is used extensively in the food industry as a cooking oil and ingredient, as well as in the production of soaps, cosmetics, and biofuels.

Import taxes and fees: import duty, general customs fee, brokerage fee, port fees, and terminal handling port fees

Importing goods into Angola is a time-consuming and bureaucratic process. Importers must be registered with the Ministry of Industry and Trade and only registered companies can apply for an import license, which is required for imports of food, medical devices, pharmaceuticals, and agricultural inputs.

The import process in Angola requires an estimated US$460 and 96 hours for import document compliance. Documentation required for importation includes a customs import declaration, a declaration of customs value, a loading certificate, a Ministry of Industry and Trade import license, and terminal handling receipts.

Now, let's break down the import taxes and fees:

Import Duty

Import duty, also known as a tariff, is a tax levied by governments on the value of imported products, including freight and insurance. The duty rate varies depending on the product and the country. In Angola, import procedures require significant documentation and compliance with regulations, which can result in delays if not properly managed.

General Customs Fee

Customs fees are often charged in addition to import duties. These fees are assessed by customs officials based on information provided on shipping labels, commercial invoices, and other relevant documents. Customs fees are an essential component of the total landed cost of international shipments.

Brokerage Fee

A brokerage fee, also known as a customs broker fee, is charged by a licensed customs broker who assists in the import process. Customs brokers help with documentation, compliance, and facilitating the clearance of goods through customs. In Angola, only customs brokers approved by the government can process customs documentation for imports, and their rates are regulated at no more than 2% of the product's CIF value.

Port Fees

Port fees, also known as terminal handling charges (THC), are incurred when goods are imported through a port. These fees are typically charged by the port authority or terminal operator for the use of their facilities and services. Port fees are common when importing goods via ocean freight.

Terminal Handling Port Fees

Terminal handling port fees are charges for the handling and storage of cargo within the port or terminal. These fees cover the cost of moving cargo from the ship to the terminal and preparing it for pickup by the importer or their representative.

Import duty exemptions: raw materials used in industrial production and sales to the Angolan government

Angola's import procedures are time-consuming and bureaucratic. Importers must be registered with the Ministry of Industry and Trade and only registered companies can apply for an import license, which is required for imports of food, medical devices, pharmaceuticals, and agricultural inputs.

The Angolan government has put in place some import duty exemptions and reductions. These include exemptions for sales to the Angolan government, as many operations in the oil and gas industry are owned in part by the government oil company Sonangol.

Import duty exemptions or reductions are also available for raw materials used in industrial production. This is in line with Angola's economic history, which has been dominated by the production of raw materials and the use of cheap labour since the 16th century when Portuguese rule began. Angola's economy has been heavily influenced by the effects of four decades of conflict in the last part of the 20th century, including the war for independence from Portugal and the subsequent civil war.

Since the end of the civil war in 2002, government policy has prioritised the repair and improvement of infrastructure and the strengthening of political and social institutions. Angola's economy was one of the fastest-growing in the world during the first decade of the 21st century, with high international oil prices and rising oil production contributing to strong economic growth. However, the country remains heavily dependent on the oil sector, which accounted for over 90% of exports by value and 64% of government revenue in 2017.

The process of importing goods into Angola can be challenging, with high costs and time requirements for import document compliance. U.S. exporters should work closely with experienced distributors and customs brokers approved by the Angolan government to minimise customs problems and delays.

Value Added Tax (VAT): implemented in October 2019 with a tax rate of 14% for large taxpayers

Angola's economy has been heavely influenced by the effects of four decades of conflict in the latter part of the 20th century, namely the war for independence from Portugal and the subsequent civil war. The country remains heavily dependent on the oil sector, which accounted for over 90% of exports by value and 64% of government revenue in 2017.

In October 2019, Angola implemented a Value-Added Tax (VAT) of 14% for large taxpayers (companies). This replaced the previous Consumption Tax and was expected to result in lower prices for consumers. The VAT has a broad tax base and is applied during the first 18 months to large companies, although smaller companies may opt for immediate application of the VAT upon request.

The implementation of the VAT was part of an effort to modernise Angola's tax system and improve the business environment. It is worth noting that the process of importing goods into Angola is time-consuming and highly bureaucratic, with the country being ranked among those with the most time-consuming import procedures worldwide. Importers must navigate complex regulations and ensure compliance with various documentation requirements.

In addition to the VAT, there are other taxes and fees applicable to imports in Angola, including import duties, customs fees, brokerage fees, port fees, and terminal handling charges. These charges can vary depending on the type of goods and their value, with some products subject to higher duties and taxes than others.

Angola's Customs Tariff Regime: updated in August 2018 to eliminate the 5% export tax on crude ores

Angola's economy has been historically influenced by the slave trade, the war for independence from Portugal, and the subsequent civil war. The country's economy is heavily dependent on the oil sector, which accounted for over 90% of exports by value and 64% of government revenue in 2017.

The process of importing goods into Angola is time-consuming and bureaucratic. Importers must be registered with the Ministry of Industry and Trade, and only registered companies can apply for an import license, which is required for imports of food, medical devices, pharmaceuticals, and agricultural inputs. Documentation required for importation includes a customs import declaration, a declaration of customs value, a loading certificate, and a Ministry of Industry and Trade import license.

In August 2018, Angola updated its Customs Tariff Regime, which was further modified in December 2019. This update eliminated the 5% export tax on crude ores and aimed to provide the country with a modern customs system capable of meeting the challenges of national development, attracting investment, and promoting employment. The import duty rates were adjusted through Presidential Decree Nº 03/18 of May 2018 and updated by Presidential Legislative Decree Nº 10/19 in November 2019, which approved the Customs Tariff on Import and Export Rights.

The updated regime sets import duties at an average of 10.9%, ranging from 2% to 50%. A World Trade Organization (WTO) analysis of Angola's custom tariffs shows that import duties on agricultural products doubled on average to 23.3%, while duties for non-agricultural products increased by 2% to 9.1%. Import duties on manufactured goods average 9.4%, and mining products average 11.6%. The highest sectoral import duties are in areas where Angola is focusing on domestic production development, including coffee (23.3%), beverages (52.9%), fruits and vegetables (35.5%), fish and fish products (25%), sugar (10.2%), cereals (11.7%), and wood (18.7%).

Import duty exemptions or reductions may be available for raw materials used in industrial production, and investors may benefit from import duty and tax deductions as part of their investment contracts with the Angolan Government. Sales to the Angolan government, including most sales in the oil and gas industry, are exempted from import duties as they are partially owned by the government oil company Sonangol.

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