Mozambique awards concession to seal alcoholic beverages and tobacco in the fight against contraband

26 December 2013

Mozambique’s Tax Authority (AT) has signed a contract with Britain’s OpSec Security Group (OSG) for concession of the tax seal system for tobacco and alcoholic beverages, in an effort to control the illegal entry of those products in the country and to fight tax evasion.

The head of the AT, Rosário Fernandes, said the contract with OSG “aims to stop the wave of illegal trade resulting from smuggling, piracy or counterfeiting” vis-à-vis the distribution of tobacco and alcoholic beverages in Mozambique.

The 15-year concession will be evaluated every five years. OSG will receive a commission on taxes collected by the AT, which has yet to be determined.

“The current level of detection of illegal products and tax recovery is low. The concessionaire’s net remuneration should reflect this situation,” Fernandes said, cited in an AT statement. He emphasised that OSG “has merit due to its technical and professional experience in other countries”.

The England-based group’s representative, Timothy Davies, said he was sure the concession would “significantly increase” the amount of taxes collected by the AT and “drastically reduce the import of illegal products”.

Under the agreement, which also extends to national products, OSG will be responsible for detecting illegal products in Mozambique’s terrestrial, air and maritime space. To that end, the company should work together with the Mozambican customs and immigration services and police authorities.

OSG was founded in 1983 and commercialises its products and services in nearly 80 countries. (macauhub)