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MRA foils sugar smuggling in Mwanza

Public tax collector Malawi Revenue Authority (MRA) on Monday seized 487 bales of smuggled sugar concealed in five truckloads of salt that were being imported through Mwanza Border. 

Concealed sugar seized from trucks in Mwanza

In a statement made available to Business News on Wednesday, the MRA observed that besides depriving government of revenue for public expenditure, smuggling distorts market prices, thereby exposing traders to unfair competition which might lead to the collapse of local industries.

MRA head of corporate affairs Steven Kapoloma said in the statement that smuggling is a serious offence under the Customs and Excise Act, and goods imported without licence are liable to forfeiture.

“The smuggled sugar and the conveyances have been seized and the smugglers and the owners of the conveyances will be dealt with in accordance with the Customs and Excise law.

“MRA continues to step up its law enforcement efforts by actively detecting contraband and combating smuggling,” he said.

In Malawi, importation of sugar requires an import licence issued by the Ministry of Industry, Trade and Tourism.

Local sugar manufacturers have been complaining about the influx of imported sugar on the market, a development they say was a threat to consumers and their profitability.

Minister of Industry, Trade and Tourism Francis Kasaila earlier said government will engage the private sector on how best to deal with illegal sugar imports, which affected local sugar producers and potential to kill jobs.

“Bringing in more imports means we are reducing the chances of fellow Malawians to be employed. We need to protect our industries by giving them a better business environment. The moment we are prioritising imports, we are killing our own economy,” he said.

Sugar is one of the country’s foreign exchange earners and Illovo Sugar (Malawi) Limited, which has a 97 percent market share, employs about 9 500 people and about 2 300 smallholder farmers supply the commodity to the company.

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