With the intention to increase its electricity production from eco-friendly energy to 25% and to reduce
its greenhouse gas emissions by 32% by 2035, Cameroon has focused its environmental protection
policy on the promotion of renewable energies. It is in this context that the tax legislature has granted
an exemption from customs duties and taxes on the importation of a set of materials and equipment in
the so-called priority sectors, notably that of renewable energies, given their purpose and their capacity
to increase the pace of growth. This exemption was introduced through paragraph 1 of Section five of
the 2024 Finance Act. It is about a 24-month exemption period. As indicated in our article published
in February, the law sets only two conditions to benefit from it. On the one hand, the goods concerned
should appear on the list set by the Minister in charge of finance; and on the other hand, the importers
shall undertake to pass on the said exemption to the final consumer. It is therefore presumably a full-
right exemption, deemed to be granted from the publication of the list by the Minister of Finance.
Unfortunately, it appears in practice that in order to benefit from the said exemption, Customs
Administration requires a prior submission of a request to the Director General of Customs (DGC),
threatening to withhold the benefit of the exemption whenever the application is not submitted. The
administration thus creates a condition not provided for by law. Such an approach is based on spurious
legal grounds.
Indeed, the demand for a benefit of exemption required by the customs administration is illegal in
several respects. First of all, since the legislator left no room for taking such measure, one is entitled to
wonder on what basis the customs administration requires the said prior request. Given the possibility
for an application to be accepted or rejected, should we assume that the Director General of Customs
(DGD) can refuse to grant the exemption enshrined in the law? If so, it would be a real incongruity,
especially because even the Circular on the application of the customs provisions of the 2024 Finance
Act signed by the Director General himself makes no mention of any request to benefit from the
exemption. Secondly, it should be noted that this administrative practice is in discordance with the law
and is openly in infringement of fundamental legal principles. The first is the principle of legality, an
administrative law principle which requires that administrative authorities exercise their powers in
accordance with the legal rules. According to this principle there shall be conformity and compatibility
between the action of the customs administration and the current regulation, in this case the Finance
Act. The second is the general principle of law according to which it is forbidden to distinguish where
the law does not distinguish. This principle, in turn, prohibits the person interpreting or applying the
law from introducing exceptions or conditions not provided for by the legislator. As the Finance Act
did not make the benefit of the exemption conditional on any request, it is not up to the customs
administration to require one. Such a practice constitutes a real bottleneck to the guarantee of a State
governed by the rule of law. Finally, it should be noted that as tax is a matter of law and the DGC has
acted outside the Finance Act, this is an administrative practice lacks legal grounds. It may be
challenged and give rise to an action for annulment for excess of power.
In short, the application required by the customs administration in order to benefit from the exemption
from customs duties and taxes on the import of solar energy production equipment and materials is
illegal. It is therefore imperative for the customs administration to refrain from this practice, which is
detrimental to operators in the solar energy field. This will ensure that the favorable tax measure
granted by law truly contributes to the promotion of renewable energies.
Author: Jean Didier Ozoto, Tax & Legal Consultant; Supervisor: Albert Désiré Zang, Managing
Partner