Zero customs duty on imports of raw materials and equipment used in production

The Ministry of Economic Development and Digitalization (MDED) is set to introduce a zero customs duty on imports of raw materials and equipment used in the production process. Deputy Prime Minister, Minister of Economic Development and Digitalization Eugeniu Osmochescu made the statement today at a TV show.

According to the official, these actions are part of a set of bold reforms that will be implemented quickly and efficiently. The measure will apply to all sectors of the economy, without exception.

“We have initiated, within the ministry, legislative amendments to establish a zero customs duty on the import of raw materials and equipment intended for the production process. Thus, the zero rate on customs duties will be applied to any product and in any field or industry. I can give you an example: if imported butter is used for the production of ice cream, then it will have a zero customs duty. Another example from industry: if a nut is used to produce a piece of equipment and its final destination is the production of that equipment, then a zero customs duty will be applied. The provision also refers to imported equipment, as these represent investments by our entrepreneurs. This amendment is a very bold first step to support the private sector in the Republic of Moldova,” said Osmochescu.

The minister emphasized that the immediate effect of this decision will be the elimination of intermediaries from the supply chain, from import to the final producer.

“We know the situation very well. It is not normal when there are two or three intermediaries from the moment of import until the material reaches the producer, a situation that leads to an increase in the price,” noted Osmochescu.

Through this reform, the MDED aims to support producers in all sectors – agricultural, industrial, and processing. Thus, according to the authorities, the new amendment will provide them with cheaper access to the materials needed in the production process.