WORLD TRADE
ORGANIZATIONG/STR/N/8/MUS
2 August 2002
(02-4286)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
Updating Notification Pursuant to Article XVII:4(a) of the GATT 1994
and Paragraph 1 of the Understanding on
the Interpretation of Article XVII
MAURITIUS
The following communication, dated 12 June 2002, has been received from the Permanent
Mission of Mauritius.
_______________
The notification of Mauritius in respect of State Trading Enterprises is herewith submitted
pursuant to Article XVII:4(a) of GATT 1994 and Paragraph 1 of the Understanding on the
Interpretation of Article XVII.  You may wish to note that the notification covers the Agricultural
Marketing Board, the State Trading Corporation:  the Mauritius Meat Authority and the Tobacco
Board of Mauritius.G/STR/N/8/MUS
Page 2
AGRICULTURAL MARKETING BOARD (AMB)
Question 1. Enumeration of State Trading Enterprise
Answer A. Agricultural Marketing Board
 B. Description of controlled products (including tariff item number)
(i) 03.05 Salted Fish
(ii) 04.01 Milk (Fresh/Liquid)
(iii) 07.01 Potatoes (in all forms) including Seed
(iv) 07.03.10 Onions and Shallots
(v) 07.03.20 Garlic(vi) 0708.20 Beans
(vii) 0708.90 Other Broad Beans
(viii) 0802 Groundnut
(ix) 0805.10 Oranges
(x) 0805.20 Tangerines, Mandarines(xi) 0805.30 Lemons and Limes
(xii) 0805.40 Grapefruit
(xiii) 0904-0910 Spices
(xiv) 0910101 Ginger
(xv) 10.05    )
1103.13) Maize in all forms
1102.20)
Question II. Reason and Purpose
Answer A. The objectives of AMB may be summarized as follows:
(i) to encourage local production of as much of the country's food requirements as is
economically feasible;
(ii) to ensure that marketing costs are at a minimum consistent with satisfying consumer
demand;
(iii) to limit price fluctuations in line with consumer preference;(iv) to operate its installations and other resources with maximum efficiency for the
benefit of producers and consumers;
(v) to regulate standards and quality of products falling under its control.
Question B. Summary of legal basis
Answer (i) Mauritius Agricultural Marketing Act 1963
(ii) The AMB was set up to:
(a) provide or ensure the provision of efficient marketing facilities;
(b) maintain the register of all producers, buying agents, millers and dealers;
(c) acquire and disseminate market intelligence;G/STR/N/8/MUS
Page 3
(d) operate or provide for the operation of storage, handling, transport and
processing facilities for controlled products;
(e) buy, sell, import, export or otherwise deal in controlled products;
(f) take measure as it considers necessary to stabilize, augment or reduce the
production or prices of controlled products;
(g) regulate the standards and quality of controlled products.
Question III. Description of the Functioning of the State Trading Enterprise
Answer A AMB generally sets out to achieve its objectives by:
(a) inducing primary producers to invest for optimal yields through fixed floor
prices reckoning a fair return above inputs recommended by research;
(b) eliminating market losses and providing modern storage and marketing
facilities not requiring the intervention of middlemen;
(c) implementing a pricing policy based on cross-subsidization of local and
imported produce to the best advantage of both producers and consumers.
B. (a) By virtue of its controlled products, AMB has the sole right to import and
market onions, garlic, maize, seed potatoes, turmeric, cardamoms.
(b) The right to surrender any of the controlled products should the Board deem fit
– Section 17 of its Act.  It can also authorize sales in such quantity area, or
during such period and conditions as may be specified by regulations made by
the Minister on the advice of the Board.
C. Any company, partnership or trader may import such commodities which though
controlled by AMB, as permitted from time to time by AMB e.g. table potatoes, dry
beans, chillies, ground nuts, spices, citrus fruits, onion seeds, ginger and maizederivatives (sweet corn).  The import permits need to be endorsed by the ABM.
D. Import/export are supplement to local production whenever estimated yearly
production forecasts are below/above consumption levels.
E. Export prices are selling prices of local products, plus 10 per cent.
F. As AMB is run on sound commercial principle, imports are resold at cost c.i.f.
Port Louis plus a percentage of expenses calculated to cover administrative, financial
and storage costs.
(a) Long term contracts are negotiated yearly with foreign companies for maize,
potatoes and onions for part of the imports.  AMB usually implements
contractual agreements for potato seed programmes with subsidy
implementation for Government.
G. Controlled goods are usually bought by AMB through a guaranteed producer price
based on cost of production plus a margin of profit.  The goods are stored and sold to
dealers at a margin for resale at retail level at prices fixed or recommended by AMBG/STR/N/8/MUS
Page 4
or Government.  Growers are encouraged to sell their own produce directly to the
market.  Imports are made by AMB except where permits have been issued to private
importers.  The prices are not controlled.
Table 1
STATE TRADING.  AGRICULTURAL MARKETING BOARD
STATISTICAL INFORMATION, IMPORT 1995
Description of products
(including HS No. 5)Total
quantity
importedQuantity
imported
by STEAverage
Import
priceAverage
representative
domestic sales
priceMark
upNominal
production
12 3 4 5 6 7
Tons Tons Rs/Ton Rs/Ton % Tons
070190 Ware potatoes* 8,040 8,040 5,883 6,100 3.7 15,718
070110 Seed potatoes* 1,383 1,383 9,350 6,500 (30) 1,509
070320 Garlic 430 430 18,240 40,000 119 212
0100590 Maize 60,241 60,241 2,898 3,700 28 289
0910301 Turmeric fingers 86 86 10,819 31,000 196 N/A
0910309 Turmeric powders 36 36 12,728 34,000 175 N/A
070310 Onions 4,947 4,947 6,210 8,900 43 5,970
0908301 Cardamoms 7.5 7.5 188,000 350,000 60 N/A
0701331 Bean Seeds 5,750 5,750 62,330 80,000 28 N/A
0120991 Onion Seeds - - - - - -
* Prices subsidized by Government.
Table 1
STATE TRADING.  AGRICULTURAL MARKETING BOARD
STATISTICAL INFORMATION, IMPORT 1996
Description of products
(including HS No. 5)Total
quantity
importedQuantity
imported
by STEAverage
Import
priceAverage
representative
domestic sales
priceMark
upNominal
production
12 3 4 5 6 7
Tons Tons Rs/Ton Rs/Ton % Tons
070190 Ware potatoes* 10,505 10,505 7,814 6,100 (21.93) 13,000
070110 Seed potatoes* 979 979 11,159 9,150 (18.00) 1,331
070320 Garlic 906 906 22,699 50,000 120.27 235
0100590 Maize 53,746 53,746 4,336 4,386 1.15 278
0910301 Turmeric fingers 175 175 15,594 40,000 156.51 N/A
0910309 Turmeric powders 100 100 23,355 45,000 92.66 N/A
070310 Onions 5,487 5,487 6,732 8,900 32.20 6,067
0908301 Cardamoms 4.50 4 237,582 450,000 89.41 N/A
0701331 Bean Seeds 28.86 9.26 57,682 80,000 38.69 N/A
0120991 Onion Seeds 0.78 0.74 967,687 2,400,000 148.01 N/A
* Prices subsidized by Government.G/STR/N/8/MUS
Page 5
Table 1
STATE TRADING.  AGRICULTURAL MARKETING BOARD
STATISTICAL INFORMATION, IMPORT 1997
Description of products
(including HS No. 5)Total
quantity
importedQuantity
imported
by STEAverage
Import
priceAverage
representativ
e domestic
sales priceMark
upNominal
production
12 3 4 5 6 7
Tons Tons Rs/Ton Rs/Ton % Tons
070190 Ware potatoes* 10,185 10,185 7,908 10,000 26.45 16,000
070110 Seed potatoes* 1,352 1,352 12,346 10,500 (14.95) 1,194
070320 Garlic 1,001 1,001 20,155 50,000 148.08 N/A
0100590 Maize 48,071 48,071 3,593 3,628 0.97 50.2
0910301 Turmeric fingers 134 134 19,228 40,000 108.30 N/A
0910309 Turmeric powders 83 83 25,886 45,000 73.84 N/A
070310 Onions 6,202 6,202 6,655 9,900 48.76 5,525
0908301 Cardamoms 7.04 5.5 302,209 450,000 48.90 N/A
0701331 Bean Seeds 20.125 12 58,895 80,000 35.83 N/A
0120991 Onion Seeds 1.211 1.055 1,908,171 2,400,000 25.77 N/A
* Prices subsidized by Government.
Table III
STATE TRADING:  AGRICULTURAL MARKETING BOARD
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 1995
Description of products
(including HS No. 3)Domestic
purchasesNational
productionDomestic
salesNational
consumption
12 3 4 5
M/Tons M/Tons M/Tons M/Tons
070190 Ware potatoes 3,253 15,718 2,023 20,600
070110 Seed potatoes 1,507 1,510 1,009 2,222
070320 Garlic - 212 - 642
0100590 Maize 9.2 N/A 9 N/A
0910301 Turmeric fingers - N/A - N/A
0910309 Turmeric powders 4 N/A 3 N/A
070310 Onions 4,347 5,974 3,112 10,600
0908301 Cardamoms NIL N/A NIL N/A
0701331 Bean seds 4 N/A 2 N/A
01209.91 Onion seeds 0.7 N/A 0.6 N/AG/STR/N/8/MUS
Page 6
Table III
STATE TRADING:  AGRICULTURAL MARKETING BOARD
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 1996
Description of products
(including HS No. 3)Domestic
purchasesNational
productionDomestic
salesNational
consumption
12 3 4 5
M/Tons M/Tons M/Tons M/Tons
070190 Ware potatoes 2,225 13,000 2,726 22,200
070110 Seed potatoes 1,131 1,331 1,370 2,278
070320 Garlic 52 235 22.8 750
0100590 Maize 282 N/A 273 54,000
0910301 Turmeric fingers NIL N/A NIL 164
0910309 Turmeric powders 1.7 N/A 5.8 88
070310 Onions 2,871 6,067 2,463 10,6000
0908301 Cardamoms NIL N/A NIL 4.00
0701331 Bean seeds NIL N/A 2.4 29.00
0120991 Onion seeds 0.6 N/A 0.4 1.00
Table III
STATE TRADING:  AGRICULTURAL MARKETING BOARD
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 1997
Description of products
(including HS No. 3)Domestic
purchasesNational
productionDomestic
salesNational
consumption
12 3 4 5
M/Tons M/Tons M/Tons M/Tons
070190 Ware potatoes 2,128.8 16,000.0 1,829.0 21,000
070110 Seed potatoes 1,194.0 1,194.0 1,262 2,616
070320 Garlic 34.5 N/A 40.3 900
0100590 Maize 50.2 N/A 54.0 48,000
0910301 Turmeric fingers NIL N/A NIL 122
0910309 Turmeric powders NIL N/A NIL 111
070310 Onions 1,906.0 5,525.0 2,226.0 11,000
0908301 Cardamoms NIL N/A NIL 7
0701331 Bean seeds NIL N/A NIL 20
0120991 Onion seeds NIL N/A NIL 1G/STR/N/8/MUS
Page 7
MAURITIUS MEAT AUTHORITY
Question I Enumeration of State Trading EnterprisesAnswer A. Mauritius Meat Authority
 B. Description of products
Slaughter of Cattle and Goats
Tariff item number
Cattle:  01.02
Goats:  0104.20
Question II Reason and Purposes
 A. The Mauritius Meat Authority was created in 1974 under the Meat Act with the
following objective and power:
(i) to establish and manage abattoirs;
(ii) purchase and import livestock for slaughter;
(iii) market meat, meat products and by-products of the slaughter process;(iv) construct, maintain and rent places for the sale of meat, meat products or by-
products of the slaughtering process;
(v) control and regulate the sale of meat and meat products;
(vi) licence persons and premises in connection with the slaughter of animals for
meat, and the preparation, processing, packing and marketing of meat;  and
(vii) with the approval of the Minister of Commerce, fix the price of meat and
meat products.
Question B. Summary of Legal BasisAnswer (i) Meat Act 1974;
(ii) The Meat Authority ensured that livestock are slaughtered in no other place other than
its abattoir;
(iii) Meat and carcasses are delivered to the various sales points;
(iv) Meatshops are duly licensed to operate as such;  and
(v) Animals are not slaughtered illegally.
Question III Description of the Functioning of the Meat Authority
Answer A. The Meat Authority has the power to import livestock for slaughter.
B. Animals are not imported by the Authority since the importation of same has been
liberalized in 1996.
All local and imported animals meant for meat are slaughtered at the abattoir of the
Authority.  Slaughter effected at any other place is illegal under the Meat Act.
After inspection by the Veterinary Officers, the carcasses are transported in the
Authority's meat vans to the various sales points around the island.  A slaughter and
transport fee is charged for such activities.G/STR/N/8/MUS
Page 8
C. Anybody can import slaughter stock after obtaining an import permit from the D.V.S.
of the Ministry.
D. This is done in consultation with the Meat Authority and the local breeders.
E. Not applicable.
F. Market forces.G. (i) Animals are imported through tenders and short term contracts not exceeding
our market requirements for 6 months signed in terms of shipment to avoid
shortage of meat in the market.
(ii) No.
The Meat Authority and Livestock Importers import livestock for slaughter.  A part
of the livestock is ensured by local breeder.
Meat is transported to markets and other meatshops where butchers or other licensed
traders sell the meat to consumers.
Question IV Statistics
Answer No animal has been imported by the Meat Authority since 1997/98.
Question V. Additional InformationAnswer The Authority has not been importing since 1996.
STATE TRADING CORPORATION
Question I Enumeration of State Trading EnterprisesAnswer A. State Trading Corporation
B. Description of Products
Products H.S. Code Nature of exclusivity,
Special rights, or privileges
(i) Rice
(25-35% broken)10063000 Sole importer
(ii) Wheat Flour 11010000 Sole importer
(iii) Petroleum products
Motor gasoline
Gas oil
Dual purpose
Kerosene
Fuel oil27100019
27100060
27100049
27100070 (180 CST)Sole importer
"
"
"G/STR/N/8/MUS
Page 9
Question II Reason and Purpose
Answer A. The State Trading Corporation was created in 1982 with the following objective:
(a) to negotiate the purchase of goods
(b) to engage in the manufacture or processing of goods and to ensure their
marketing
(c) to import goods with a view to their marketing
(d) to export goods, and
(e) to engage in such other activities as may be authorized by the Minister.
Items (b) and (d) have not, to date, been dealt with by STC.
The State Trading Corporation was created to regulate and rationalize trade,
particularly in relation to essential commodities.
A. The State Trading Corporation was created by an Act of Parliament on
8 October 1992.  It took over the activitie s of the Department of Supplies of the
government, which was responsible for the importation and distribution of rice and
wheat flour.
The Corporation status was envisaged to give greater flexibility than a Government
Department, especially in the staffing, management and day-to-day business of the
organization.  In laying down the rules governing the functioning of the State Trading
Corporation, the Government of Mauritius was guided by the willingness to give
flexibility, maximum efficiency and reasonable autonomy to the Corporation while
ensuring that it remains accountable to the Government and the Parliament ofMauritius.
As per the Act that created the STC the main guiding principle of the Corporation is
that it "shall in carrying out its objectives operate on sound commercial principles".
The Board of Directors comprising representatives both from the public sector and
experienced businessmen from the private sector, with extensive powers to administer
the Corporation is to confer a high degree of autonomy so vital to a commercialconcern.
Question III. Description of the functioning of the State Trading CorporationAnswer A. Summary statement on the operations of the State Trading Corporation
Petroleum Products
The State Trading Corporation imports 100 per cent of the country's demand for
petroleum products (HS code as per Par I b) in bulk c.i.f. and sells them to the fourprivately owned local oil companies, from the vessel's flange.  The local oil
companies own storage tanks and ensure distribution.
Rice
The State Trading Corporation imports 100 per cent of the country's demand for
ration rice (25-35 per cent broken) on an f.o.b. basis;  freights its own vessels, receive
the cargo into its sheds, and from there sell to wholesalers.G/STR/N/8/MUS
Page 10
Flour
The State Trading Corporation annually launches the tender of 50 per cent of the
country's demand for flour.  The Government has guaranteed the local milling
company since it came into operation in 1989, the supply of the other 50 per cent toSTC, at the best bid price obtained during the annual tender exercise.  Flour is sold
from STC stores to wholesalers and bakers.
Cement
The State Trading Corporation imports 50 per cent of the country's demand for
cement in bulk in c.i.f. and sells to the local private cement company at c.i.f. plus
margin.
The other 50 per cent is imported by the local cement company, which in turn
distributes the total of the country's requirements.
B. Specification of exclusive or special rights or privileges enjoyed by the STE
The exclusive or special or privileges enjoyed by the State Trading Corporation are
only in respect of being sole importer of petroleum products, rice (25 per cent broken)
and flour.  The Corporation pays all the necessary dues that are payable to the Port
Authority, Custom Department/and other authorities at the prescribed rates applicable
to all traders.  STC does not enjoy any concessionary rates in the discharge of its
activities.
C. Refer to A.D. Imports/exports are a supplement to local production whenever estimated yearly
production forecasts are below/above consumption levels.
E. Not applicable.F. Resale prices are determined by the Ministry of Industry and Commerce for all inland
sales to wholesalers, distributors and bakers.
G. Long Term Contracts
Rice
Formerly purchases were on Asian spot markets but now open international tenders
are invited annually, and contracts are made with the successful bidders.
Flour
Bids are invited from international millers and the local milling company, through
annual tenders for 50 per cent of the country's annual requirements.  The government
has guaranteed the local milling company, since it came into operation in 1989, the
supply of 50 per cent of the country's requirements to STC.  In case the best bidder isa foreign miller/exporter, the local milling company is required to match the lowest
bid made by the foreign miller/exporter for the supply of its guaranteed 50 per cent of
the country's requirement.  In case the best bid is from the local milling company, theG/STR/N/8/MUS
Page 11
latter supplies to the Corporation 100 per cent of the country's requirements at its bid
price.
Cement
Bids are invited from potential suppliers of cement, through annual open international
tenders, for 50 per cent of the country's annual requirements.  The best bidder is
awarded the contract for the tendered quantity.
Petroleum Products
The STC, in consultation with distributors, calls for international tenders for the
estimated annual requirements for petroleum products as defined at I (b).  Tenders are
allocated to the two lowest bidders.
H. Market Structure
ProductsRice (broken 25-35 per cent)Basmati OligopolyPetroleum products 100%(a)  White products
(b)  Fuel oil – 180 CST
Cement 50%Flour 100%G/STR/N/8/MUS
Page 12
STATE TRADING:  STATE TRADING CORPORATION (STC)
STATISTICAL INFORMATION, IMPORTS (1995/96)
Description of product(s)
(including HS number(s))
1Total quantity
imported
metric tons
2Quantity
imported by
STC metric tons
3Average import
price (c.i.f.)
4STC sales price
to wholesalers/
distributors
5
Rice (broken
25-35%)10063000 57,039 57,039 Rs/mt
5,607Rs/mt
4,420
Basmati n.a. 11,970 9,197 13,200
Wheat flour 11010000 5,586 5,586 6,679 4,100
PetroleumproductsRs/litre Rs/litre
Mogas 27100019 87,165 87,165 2.72 8.30
*9.1677 + 8% ST
Gas oil 27100060 234,782 234,782 2.81 4.52
*4.52 + 8% ST
D.P.K. 27100049 184,162 184,162 3.08 2.87
*3.42
Fuel oil 27100070 132,230 132,230 1.99 2.97
*2.97 + 8% ST
Rs/mt Rs/mt
Cement 25232900 n.a. 193,069 1,128 1,313.42 + S.T.
*w.e.f. 8 June 1996.
STATE TRADING:  STATE TRADING CORPORATION (STC)
STATISTICAL INFORMATION, IMPORTS (1996/97)
Description of product(s)
(including HS number(s))
1Total quantity
imported
metric tons
2Quantity
imported by
STC metric tons
3Average import
price (c.i.f.)
4STC sales price
to wholesalers/
distributors
5
Rice (broken
25-35%)10063000 50,150 50,150 Rs/mt
6,723Rs/mt
4,420
Basmati n.a. 20,000 9,623 (1) 13,200
(2) 12,200 w.e.f.
19.05.97
Wheat flour 11010000 12,080 12,080 6,542 4,100
Petroleum
productsRs/litre Rs/litre
Mogas 27100019 88,899 88,899 3.36 9.1677 + 8%
*11.8066 + 8%
Gas oil 27100060 242,041 242,041 3.57 4.5201 + 8%
*5.9553 + 8%
D.P.K. 27100049 207,089 207,089 3,75 3.42
*4.57
Fuel oil 27100070 155,857 155,857 2.29 2.97 + 8%
*3.7037 + 8%
Rs/mt Rs/mt
Cement 25232900 161,021 1,266.23 1,313.42 + S.T.
*w.e.f. 21 December 1996G/STR/N/8/MUS
Page 13
STATE TRADING:  STATE TRADING CORPORATION (STC)
STATISTICAL INFORMATION, IMPORTS (1997/98)
Description of product(s)
(including HS number(s))
1Total quantity
imported
metric tons
2Quantity
imported by
STC metric tons
3Average import
price (c.i.f.)
4STC sales price
to wholesalers/
distributors
5
Rice (broken
25-35%)10063000 45,521 45,521 Rs/mt
6,689Rs/mt
4,420
Basmati n.a. 13,500 10,447 10,800
Wheat flour 11010000 14,105 14,105 6,016 4,100
Petroleum
productsRs/litre Rs/litre
Mogas 27100019 87,024 87,024 3.28 11.8066* + 8%
Gas oil 27100060 268,154 268,154 3.03 5.9553** + 8%
D.P.K. 27100049 195,735 195,735 3.04 4.5700
Fuel oil 27100070 n.a. 148,725 2.21 3.7037*** + 8%
Rs/mt Rs/mt
Cement 25232900 n.a. 322,650 1,434 1,313.42 + S.T.
* includes 220% import duty + excise duty
** includes 75% import duty
*** includes 75% import dutyG/STR/N/8/MUS
Page 14
Table I
STATISTICAL INFORMATION, IMPORTS
Description of
product(s)
(including HS
number(s))Total
quantity
imported
KilosQuantity
imported by
state trading
enterpriseAverage
import price
Rs/kgAverage
representative
domestic sales
priceMark-up National
production
Kilos
1234567
Tea - 1995 11,365 Nil 90.70 3,785,044
(09-02) 1996 4,350 Nil 84.00 2,495,923
1997 8,500 Nil 107.00 1,787,415
Table II
STATISTICAL INFORMATION, EXPORTS
Description of
product(s)
(including HS
number(s))Total
quantity
exported
KilosQuantity
exported by
state trading
enterpriseAverage
procurement
priceAverage
representative
domestic sales
price
Rs/extendingAverage
export priceNational
production
Kilos
1234567
Tea - 1995 2,894,366 Nil 80.90 Rs 17.58/kilo 3,785,049
(09-02) 1996 1,381,489 Nil 84.93 Rs 20.34/kilo 2,495,923
1997 436,234 Nil 89.98 Rs 28.74/kilo 1,787,415
Table III
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Description of
product(s) (including
HS number(s))Domestic purchases
by state trading
enterprisesNational production Domestic sales by
state trading
enterpriseNational production
Kilos
Tea – 1995 Nil 3,785,044 Nil 1,137,904
(09-02) 1996 Nil 2,495,923 Nil 1,205,627
1997 Nil 1,787,415 Nil 1,299,166G/STR/N/8/MUS
Page 15
TOBACCO BOARD
Question I. Enumeration of State Trading Enterprise
Answer  A. TOBACCO BOARD
 B. Description of product
Description HS CodeLeaf tobacco, flue-cured, not stemmed 240 1101
Leaf tobacco, air-cured, not stemmed 240 1102
Question II. Reason and purpose
Answer A. Reason or purpose
The tobacco Board was set up in 1932 to control and regulate the production of leaf tobacco
in Mauritius.  Tobacco being a controlled product, the centralization of purchase and sale allows a
thorough control for excise purposes.  Additionally, the Board guarantees to the manufacturer a stable
source of leaf tobacco and to the growers a ready market at steady prices.
The Board keeps a register of growers and provides support to them through its
Extension/Advisory Service and its Mechanization and Inputs Fund.
B. Legal authorityThe Tobacco Board operates under the legal framework of the Tobacco Production and
Marketing Act (1943) as subsequently amended, and Regulations made under the Act by the Minister
of Agriculture.
Question III. Description of the functioning
Answer A. Overview of operations
The Board grants to registered tobacco growers annual poundage quotas for production.  The
allocation of quotas is itself based on the demand from the only local cigarette manufacturer as
conveyed before the start of the crop.  Both the price paid to growers and the price paid by themanufacturer are fixed by the Board at the start of the crop after discussion with them.
The Board purchases all leaf tobacco produced by growers including any over-quota
production, classifies, bulks, re-dries and bales the leaf.  Thereafter the baled leaf is inspected and
tested for moisture content by the manufacturer who then purchases it in the presence of aGovernment Excise Officer.  Over-quota production is usually sold with the ensuing crop and this
amount deducted from the overall quota allocated for that crop.  This system does not penalize
growers with good performances.
The Board runs and maintains bonded stores on behalf of the manufacturer against payment
of the appropriate charges.  It also provides, free of charge, an Extension/Advisory service to growers
and has set up and successfully implemented a number of schemes with a view to reducing production
costs and thereby enhancing growers' revenues.G/STR/N/8/MUS
Page 16
Following an amendment to the Tobacco Production and Marketing Act enacted in
December 1997, the Board has been invested with additional powers and has to concur with the prices
of cigarettes as fixed by the manufacturer.  Previously under the responsibility of the Ministry of
Finance, this exercise particularly aims at ensuring that the duties payable have been correctly
calculated in the price structure.
B. Rights and responsibilitiesThe Tobacco Board holds the right to purchase and sell all leaf tobacco produced in
Mauritius.  These purchases, however, do not influence the level of imports.
The Board is also responsible for the issue of import licences for both manufactured
(cigarettes, etc.) and un-manufactured (leaf) tobacco.
The Board does not have preferential access to foreign exchange nor is it recipient of tax
advantages or subsidies.  In fact, the Tobacco Boar d is self-financing deriving most of its revenues
from a mark-up on the purchase price of leaf tobacco.  Its profits ar subject to income tax at thenormal company rate applicable to companies not listed on the stock exchange.
C. Import of leaf tobaccoThe Tobacco Board does not import tobacco but the manufacturer does so for blending
purposes.  The licence to import leaf tobacco is issued on application and is presently free of charge.
D. Import/export levelThere is no quantitative restriction on imports, but for cigarettes, each and every packet needs
to bear an appropriate "Health Warning Sign".  The control to tobacco is justified under Article XXb
of the GATT Agreement.
E. There is presently no export of leaf tobacco from Mauritius.F. Resale prices
Resale prices of imported products are determined by the importers themselves and market
forces.
G. Long-term contracts
No long-term contracts have been negotiated up to now since the practice is to do so on a
yearly basis.
H. Market structure
The domestic market structure is comparable to a production contract between the only
cigarette manufacturer and the tobacco growers with the Board acting as a regulatory body and
facilitator.  Growers sell all leaf tobacco produced  by them to the Tobacco Board's Warehouse and the
Board, after processing it, sells the tobacco to the manufacturer.
Question IV. Statistical information
Answer This is provided in Tables I to III, which are annexed.G/STR/N/8/MUS
Page 17
Question V. Reason why no foreign trade has taken place
Answer The Tobacco Board is authorized to export leaf tobacco from Mauritius.  However,
no export has ever been effected mainly because of the low volume available for that purpose, trade
barriers and un-competitive world market prices.G/STR/N/8/MUS
Page 18
Table I
STATE TRADING:  TOBACCO BOARD
STATISTICAL INFORMATION, IMPORTS (1995)
Description
of product(s)HS code Total
quantity
imported
(kg)Quantity
imported
by Tobacco
BoardAverage
import
price (Rs)Average
representative
domestic sales
price (Rs)Mark-
upNational
production
1 234 56 7
Leaf tobacco,
stemmed
Flue-curedAir-cured240-1101 62,600 Nil 120 81.81 - -
STATE TRADING:  TOBACCO BOARD
STATISTICAL INFORMATION, IMPORTS (1996)
Description
of product(s)HS code Total
quantity
imported
(kg)Quantity
imported
by Tobacco
BoardAverage
import
price (Rs)Average
representative
domestic sales
price (Rs)Mark-
upNational
production
1 234 56 7
Leaf tobacco,stemmedFlue-curedAir-cured240-1101 62,800 Nil 131 85.74 - -
STATE TRADING:  TOBACCO BOARD
STATISTICAL INFORMATION, IMPORTS (1997)
Description
of product(s)HS code Total
quantity
imported
(kg)Quantity
imported
by Tobacco
BoardAverage
import
price (Rs)Average
representative
domestic sales
price (Rs)Mark-
upNational
production
1 234 56 7
Leaf tobacco,
stemmedFlue-cured
Air-cured240-1101 62,152 Nil 138 - - -
Table II
STATE TRADING:  TOBACCO BOARD
STATISTICAL INFORMATION, EXPORTS
A Nil report is submitted.G/STR/N/8/MUS
Page 19
Table III
STATE TRADING:  TOBACCO BOARD
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES (1994-95)
H.S. code Domestic
purchases by
Tobacco Board
(kg)National
production
(kg)Domestic sales
by Tobacco
Board (kg)National
consumption
(kg)Description of
product(s)
12345
Flue-cured 240-1101 907,744 907,744 894,415 848,920
Air-cured 240-1102 85,324 85,324 84,828 99,481
STATE TRADING:  TOBACCO BOARD
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES (1995-96)
H.S. code Domestic
purchases by
Tobacco Board
(kg)National
production
(kg)Domestic sales
by Tobacco
Board (kg)National
consumption
(kg)Description of
product(s)
12345
Flue-cured 240-1101 941,410 941,410 930,984 897,217
Air-cured 240-1102 104,963 104,963 101,605 117,574
STATE TRADING:  TOBACCO BOARD
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES (1996-97 F.Y.)
H.S. code Domestic
purchases by
Tobacco Board
(kg)National
production
(kg)Domestic sales
by Tobacco
Board (kg)National
consumption
(kg)Description of
product(s)
12345
Flue-cured 240-1101 650,581 650,581 684,267
Air-cured 240-1102 85,600 85,600 89,477 969,120
__________