Togo, a small yet strategically located country in West Africa, plays an important role in the regional economy due to its access to the Gulf of Guinea. As a member of the West African Economic and Monetary Union (WAEMU), Togo’s trade policies, including its customs tariffs, are significantly influenced by the economic integration within the union. WAEMU establishes a common external tariff (CET) that governs the import duties on goods entering Togo from outside the union, aiming to promote intra-regional trade and encourage industrial development.
Togo’s customs tariff rates vary across different categories of goods and are structured to protect local industries while maintaining a competitive trade environment. The country also offers some preferential treatment for imports from other WAEMU member states, which include Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and others.
Introduction to Togo’s Tariff System
Togo’s tariff system is regulated by the Togo Revenue Authority (Office Togolais des Recettes or OTR), which is responsible for administering customs duties, VAT, excise taxes, and other import-related charges. The country’s tariff system is harmonized with the West African Economic and Monetary Union (WAEMU) and the Economic Community of West African States (ECOWAS), which aim to create a unified market within West Africa and standardize tariffs for member states.
The Common External Tariff (CET), adopted by WAEMU member states, sets the framework for duties on goods imported into Togo from non-WAEMU countries. The CET is divided into five categories:
- Raw materials and capital goods
- Intermediate goods
- Consumer goods
- Luxury goods
- Exempt goods
Goods imported from other WAEMU member states generally enjoy preferential treatment, with no customs duties or reduced rates, as part of the economic integration within the region. The tariff system aims to protect Togo’s nascent industries while encouraging regional cooperation and trade liberalization.
Togo’s import duties include not only tariffs on goods but also Value Added Tax (VAT), Excise Duties, and Environmental Taxes, which may be applicable to certain types of goods, particularly luxury items, alcohol, and tobacco.
Main Features of Togo’s Customs Tariff System
- Customs Duties: These are applied according to the Harmonized System (HS) classification. Rates vary depending on the type of product and its classification under the WAEMU CET.
- VAT: VAT in Togo is typically set at 18% on most imported goods, with exemptions or reduced rates for certain goods such as medicines, agricultural products, and essential items.
- Excise Duties: Excise taxes are levied on specific goods such as alcohol, tobacco, and luxury items like perfumes, jewelry, and high-end automobiles.
- Import Licenses: Some goods may require an import license, especially those that fall under regulated sectors, including chemicals, pharmaceuticals, and agricultural products.
- Special Tariff Exemptions: Togo has tariff exemptions or reductions for certain essential goods, particularly those needed for humanitarian aid or strategic national projects.
Tariff Rates by Product Category
1. Agricultural Products
Agriculture is a key sector in Togo’s economy, and the government has a vested interest in protecting local farmers and food producers. Tariffs on agricultural imports help shield domestic production while allowing for food security.
Tariffs on Agricultural Products:
- Rice: As one of the staple foods in Togo, rice is imported in large quantities. The tariff on rice is 10%, which aligns with the CET rate for agricultural products.
- Wheat and Flour: Wheat, mainly used for flour production, is subject to a 10% import duty. The tariff on wheat flour is slightly higher, at 15%, due to its final product status.
- Maize: Maize is another staple in Togo, but because of local production, the tariff on maize is relatively low at 5%.
- Vegetables and Fruits: Import duties on fruits and vegetables vary. Common imports such as bananas, tomatoes, and citrus are taxed at rates between 10% and 25%, depending on the nature and classification of the product.
- Tomatoes: Typically taxed at 15%.
- Fruits: Imported fruits such as apples, pineapples, and oranges face a 20% tariff.
- Livestock and Animal Products: Togo imports some animal products to complement domestic production.
- Meat (beef, pork, poultry): Meat imports are taxed at 10% to 15%, with poultry imports subject to slightly higher tariffs.
- Milk and Dairy Products: Dairy products face a 10% import duty.
Special Tariffs for Agricultural Imports:
- Imports from WAEMU Member States: Agricultural products imported from WAEMU countries enjoy reduced or zero tariffs as part of regional integration efforts.
2. Industrial Machinery and Equipment
Togo’s industrial base is still developing, and the country imports a wide range of machinery for sectors like construction, manufacturing, and mining. Tariffs on industrial machinery tend to be lower to encourage industrial development.
Tariffs on Industrial Machinery:
- Construction Machinery: Equipment such as bulldozers, excavators, and cranes are taxed at 5%. This rate encourages investments in infrastructure development.
- Manufacturing Machinery: Machinery for manufacturing, including textile equipment and factory production lines, is also subject to 5% import duties.
- Electrical Equipment and Electronics: Electrical machines and equipment, such as generators, motors, and transformers, are taxed at 5% to 10%, depending on the type.
Special Tariffs for Industrial Imports:
- Imports from China: China is a major source of industrial equipment for Togo. Some industrial goods imported from China may be subject to higher tariffs if they are classified as low-quality or surplus goods. However, there are exemptions or reductions for machinery that supports strategic sectors like infrastructure and energy.
3. Consumer Goods
Togo imports a variety of consumer goods ranging from electronics to clothing. These goods are generally subject to higher tariffs to protect the local manufacturing sector and encourage consumption of locally produced goods.
Tariffs on Consumer Goods:
- Electronics: Imported electronics such as televisions, smartphones, and computers are subject to a 10% to 20% tariff, depending on the product.
- Smartphones: Typically taxed at 15%.
- Laptops: Laptops and tablets face tariffs of 10%.
- Clothing: Imported clothing and textiles face a 20% tariff. The rate can go as high as 25% for high-end or designer items.
- Footwear: Shoes, both casual and formal, typically face a 20% import duty.
- Furniture: Furniture items imported for household use are subject to 15% to 25% tariffs, depending on the material and complexity of the product.
Special Tariffs for Consumer Goods:
- Luxury Goods: Imported luxury goods such as high-end automobiles, jewelry, and perfumes are heavily taxed, with tariffs ranging from 30% to 40%.
4. Chemicals and Pharmaceuticals
Togo’s pharmaceutical and chemical industries are vital for both public health and industrial growth. Tariffs on these goods are structured to ensure that essential supplies are accessible while protecting domestic production.
Tariffs on Chemicals and Pharmaceuticals:
- Pharmaceuticals: Imported medicines and medical supplies are subject to a 10% tariff. Certain life-saving drugs may be exempt or taxed at a reduced rate.
- Agricultural Chemicals: Fertilizers, pesticides, and herbicides are taxed at 5% to 10%, reflecting their importance in local agricultural practices.
- Cosmetics: Imported cosmetics and personal care products face a 20% tariff.
Special Tariffs for Chemicals:
- Medicines from India: As a major source of generic medicines, imports from India may benefit from reduced tariffs or exemptions under special trade provisions aimed at improving public health access.
5. Automotive Products
Automobile imports in Togo are subject to varying rates of taxation depending on the type of vehicle and its use. The automotive sector is critical to the country’s transportation infrastructure, and imported vehicles represent a significant share of the market.
Tariffs on Automotive Products:
- Passenger Cars: Cars, especially luxury or high-end models, face 30% to 40% import duties. Regular passenger cars typically face 25% tariffs.
- Motorcycles: Motorcycles are taxed at 10% to 20%.
- Commercial Vehicles: Trucks, buses, and other commercial vehicles generally have import duties of 15%.
Special Tariffs for Automotive Imports:
- Used Vehicles: Imports of used vehicles, especially from Europe or Japan, may be subject to stricter regulations and higher tariffs if they do not meet local environmental standards.
6. Other Products
Togo imports various other products, including building materials, processed food, and textiles. These items are subject to tariffs according to the guidelines outlined by the WAEMU CET.
- Building Materials: Cement, steel, and other construction materials are generally taxed at 5% to 10%.
- Processed Foods: Processed foods such as canned goods, confectionery, and beverages face 10% to 20% tariffs.
Country Facts
- Formal Name: Togolese Republic
- Capital City: Lomé
- Largest Cities: Lomé, Sokodé, Kpalimé
- Population: Approximately 8.7 million (2023 estimate)
- Official Language: French
- Currency: West African CFA franc (XOF)
- Location: Located in West Africa, bordered by Burkina Faso to the north, Ghana to the west, Benin to the east, and the Gulf of Guinea to the south.
Geography, Economy, and Major Industries
- Geography: Togo is a narrow country that stretches from the Gulf of Guinea to the savannas in the north. It features a coastal region with tropical climates, fertile soil, and a variety of ecosystems that support agriculture.
- Economy: The economy of Togo is primarily agrarian, with agriculture contributing significantly to both domestic employment and exports. Togo’s port, the Port of Lomé, serves as a key trade gateway for landlocked countries in the region. The economy is also supported by services, mining, and manufacturing.
- Major Industries:
- Agriculture: Togo is a leading producer of agricultural products such as cotton, cocoa, coffee, and cassava.
- Mining: Togo has rich deposits of phosphate, which is a major export.
- Services: The service sector, including transport, telecommunications, and retail, is growing rapidly.
