SOUTHERN AFRICA: ILLICIT FUEL TRADE ON THE RISE

In its 18th June edition, ENACT Africa reported that the Maputo Corridor (South Africa, Swaziland, Mozambique) is becoming a regional hotspot in the illicit fuel trade driven by organised criminal networks.  It reports that the Maputo Corridor Logistics Initiative (MCLI), established in 2004 to engage with the revenue authorities of South Africa, Mozambique and Swaziland, as well as the South African Department of Trade and Industry, on illicit trade and specifically on fuel smuggling, is to close down (due to lack of funding).   The article cites the example of fuel smuggled from Mozambique into Swaziland, where the price of fuel is more expensive.  Another type of fuel fraud is adulteration, it says, when other cheaper hydrocarbons such as kerosene or waste oils are introduced into the fuel.  However, it says that the most common form of fuel fraud is tax evasion, which often occurs through the forgery of customs declarations, and trade misinvoicing to avoid paying excise duties.  It describes the illicit trade in fuel is a rising threat in Southern Africa.

https://enactafrica.org/research/trend-reports/illicit-fuel-trade-on-the-rise

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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