It is an open secret today that climate change, the global tragedy related to the spread of Covid-19, and
the war in Ukraine have had unprecedented socio-economic consequences on almost all states in the
world. Cameroon has not been spared from the unfortunate repercussions of these threats and has
experienced a significant slowdown in its economy. In response to the adverse effects of these
cataclysms, the Cameroonian authorities have adopted a policy to revitalize the economy, focusing on
the promotion of certain priority sectors. These sectors are characterized by their strategic importance
and their ability to accelerate growth or generate significant employment, as they enjoy priority status
in accordance with the development plan. In order to promote the expansion of these sectors, the
Cameroonian tax legislature grants them a set of import-related privileges. To this end, the Law No.
2023/019 of December 19, 2023, known as the Finance Act of the Republic of Cameroon for the year
2024, introduced a range of customs incentives for priority sectors such as drinking water, renewable
energy, healthcare, livestock, and fisheries. These incentives, which include exemptions from customs
duties and taxes on the importation of certain materials and equipment, undoubtedly aim to create a
favourable framework for investment in these areas and ensure the competitiveness of local industries.
It is therefore appropriate to examine the substance of these incentive measures. For a better
understanding, we will determine the content (I) and the restrictions on the benefits of these customs
incentives (II).
I. The content of customs incentives
In order to support the specifically enumerated priority sectors, the Cameroonian tax legislature has
established customs incentives for actors operating in these fields, aimed at alleviating the constraints
related to the importation of goods necessary for their activities. It is important to separately identify
the goods covered by these benefits, the nature of the incentives, and their extent. Regarding the
goods, as stated in paragraphs 1 to 4 of the fifth article of the 2024 Finance Act, the incentives consist
of exemptions from import duties and taxes. As for the nature of the goods, the same provisions state
that the exemptions apply to equipment and materials intended for the production of drinking water,
biomass, solar and wind energy, as well as those intended for livestock, fishing, and fish farming
development. Furthermore, the exemptions apply to medical equipment and devices, including their
accessories, in the healthcare sector. As for the extent, it should be noted that the granted exemptions
are limited in time and benefit operators for twenty-four (24) months starting from January 1 st 2024.
However, it is worth mentioning that the content of these incentives will be supplemented by an act of
the competent administrative authority. This is because the law specifies that the lists of goods covered
by these exemptions will be determined by a decision of the Minister of Finance after consulting the
relevant ministers and stakeholders in the various sectors. Given these developments, it can be
reasonably assumed that the effectiveness of such measures, albeit temporary, could effectively
promote the expansion of these priority sectors. However, it remains that the benefits of these customs
exemptions are subject to certain restrictions.
II. Restrictions on the benefits of customs incentives
The customs exemptions granted by the law are nevertheless subject to two main restrictions. The
first restriction concerns the signing of a convention with the Customs Administration, and the second
entails the retroactive loss of exemptions. Regarding the first restriction, paragraph 5 of the
aforementioned fifth article reveals that in order to benefit from the exemption, the importer is
required, in accordance with the provisions of Article 333 of the CEMAC Customs Code, to sign a
convention with the Customs Administration. As per this agreement, the importer must undertake to
reflect such exemption in the final selling price of energy or such goods to the consumer. However, it
should be noted that this restriction applies exclusively to commercial resale, equipment and devices
used for the production of drinking water, biomass, solar, and wind energy. As for the second
restriction, it involves a potential retroactive loss of the benefits of exemptions by the importer. This
restriction applies to the re-export of goods benefiting from the exemption and implies that such
exportation is conditioned by the prior payment of customs duties and taxes not settled upon entry of
the goods into the national territory. This appears to be the case based on the reading of paragraph 6 of
the aforementioned article. This restriction applies not only to equipment and devices subject to the
first restriction, but also to medical equipment and devices, as well as their accessories. This could
logically be justified by the fact that these goods are no longer intended for the use for which they
have benefited from the exemption.
In conclusion, the 2024 Finance Act has established customs incentive measures in priority sectors
such as healthcare, renewable energy, and livestock. They consist of exemptions from customs duties
and taxes on importation and apply to certain devices, materials, and equipment intended for use in
these fields. However, the benefits of these incentives are subject to certain restrictions. Although
limited in time, this incentive customs regime presents a real socio-economic challenge that may
guarantee the improvement of living conditions for the population and the development of the local
economy.