Exporting to Morocco

Morocco, a country rich in culture and history, is an Arab nation located in North Africa with a population of 37 million. Due to its history as a former colony, it is also proficient in the languages of northern countries like Spain and France. In this context, we can say that many citizens in the country speak multiple languages and are blended with various cultures. This situation changes the product selection behavior of the target audience in commercial relations and guides sellers to create the right projects.

In the last five years, Morocco, which has gained significant momentum in its commercial relations with Turkey, has made a considerable contribution to our economy. While it is our 28th largest trading partner, it also provides access to many products from Turkey. Let’s closely examine how effective exports can be made from Turkey to Morocco.

How to Export to Morocco?

Morocco has been a commercially stable country that has regularly grown economically for years. The country, which has compatible job opportunities and intense commercial activities due to its long coastline, has busy ports. The maritime border with Spain has strengthened the import-export relations with Europe. Having been a French colony for many years, the business language of the country is therefore French. According to the e-commerce usage index, it ranks 95th among 152 countries. 15% of the population uses online shopping sites, indicating a significant user base at the African level.

There are several e-commerce sites that are most commonly used throughout Morocco. Familiarizing oneself with these sites and adapting to their algorithms is a priority for companies considering exporting to Morocco. These sites, in order of usage rates, are Amazon, Avito, Aliexpress, MarocAnnonces, and Amazon France. With over 5 million e-commerce users, it is essential to understand Morocco, the target of exporting companies, and to know the procedures well. You should produce the right projects and highlight your company with detailed analyses.

As ODS Consultancy Group, we provide you with strategic support with our knowledge and experience in the field of export, sharing in your success.

What Companies Export to Morocco?

In response to its accelerating economy in recent years, many European companies have begun to invest in Morocco. The country has numerous trade partners that accept products from various sectors. Turkey plays an important role in Morocco's economy, constituting about 4% of its commercial activities.

Products such as white goods and jewelry, especially in the automotive sector, rank at the top of the most frequently exported items. Since 2006, many Turkish companies have engaged in joint trade activities with Morocco, establishing a significant investment balance between the two countries. TÜFİAD (Turkey-Morocco Businessmen Association) has strengthened the commercial bridge between Morocco and Turkey, solidifying the economy in terms of import and export.

What Documents Are Required for Exporting to Morocco?

● You must open an e-commerce and e-export site. Having a place to promote and display your product is one of the most important aspects of exporting. These sites may be independent or affiliated with a specific organization and can be registered to your company.
● You need to prove your company to the authorities with documents. You cannot export without a company connection.
● Some documents are required for customs and delivery processes. A customs document named ETGB (Electronic Commerce Customs Declaration) must be prepared. This document ensures that customs transactions are conducted according to specific rules and speeds up the process. The ETGB is prepared electronically and does not require a paper copy.
● You must prepare the circulation document required to regulate the movement of goods during shipping. You must obtain the EUR-MED circulation document that Morocco requires for exported products among the circulation documents specific to their countries. EUR-MED serves as proof of origin for the Pan European Mediterranean cumulatively.
● You need to prepare the international cargo delivery documents.
● You must prepare commercial invoices.
● Morocco requires several documents from companies while checking compliance with quality standards for exported products. You should possess these quality documents and necessary certifications. Quality control is applied for chemical products, cosmetics, toys, and textiles, especially for food and agricultural products.
● If you are exporting food to Morocco, you must ensure that your products have halal certification and do not contain any pork products.
● You must obtain a bill of lading. This document is issued in cases where the goods are transported using multiple modes of transportation. The bill of lading is arranged by the shipping company.
● You must obtain a loading (Cargo) document.

What Are the Export Taxes to Morocco?

Customs and delivery processes have been significantly facilitated for companies thanks to the agreements between the two countries. Under the Free Trade Agreement (FTA) implemented in 2006 between Morocco and Turkey, Morocco has eliminated customs duties on industrial goods accepted from Turkey. Additionally, it has started to apply discounts on customs duties for agricultural products ranging from 10% to 50%.

If you want to establish a company in Morocco, you should be aware of some changing tax rates. A corporate tax is applied to companies established in Morocco, and the amount of this tax varies based on the company's profit: 10% for profits of 300,000 dirhams or less, 17.5% for profits between 300,000 and 1 million dirhams, and 31% for profits exceeding 1 million dirhams. Banks, insurance companies, and credit institutions are subject to a fixed corporate tax rate of 37%.

The standard VAT rate is 20%. There are discounts for certain products. For specific food products, beverages, and hospitality services, this rate can drop to 10%, and a 7% VAT reduction is applied for some consumer products.

What Products Are Exported to Morocco?

Although it is not the largest exporter, Turkey sends products from many sectors to Morocco. While these products have increasingly come from machinery parts and the automotive sector with technological advancements, we can mention various other sectors as well. In 2021, the products exported by Turkey to Morocco and the related figures are as follows:
● Semi-finished products made from iron or non-alloy steel = 211,911 (Change rate compared to the previous year +65.7%)
● Automobiles = 166,314 (+26.3%)
● Helicopters, airplanes, etc.; space vehicles (including satellites), launch vehicles, and suborbital vehicles = 155,626
● Profiles made from iron or non-alloy steel = 117,278 (+71.6%)
● Motor vehicles for carrying goods = 88,178 (+120.8%)
● Parts and accessories for road vehicles = 77,280 (+64%)
● New tires made of rubber = 67,997 (+45.7%)
● Spark-ignition internal combustion linear or rotary piston engines (explosion engines) = 64,051 (-19.1%)
● Jewelry and its components (made from precious metals or plated metals) = 60,271 (+133.1%)
● Refrigerators, freezers, and other refrigerating and freezing devices and heat pumps = 59,156 (+38.7%)
● Fiberboards made from wood or other woody materials = 47,537 (+160.4%)
● Other knitted fabrics = 45,140 (+212.1%)
● Cotton fabrics (containing 85% or more cotton by weight and exceeding 200 grams per m2) = 42,887 (+54.4%)
● Other furniture and their parts and accessories = 38,027 (+45.2%)
● Construction iron = 35,966 (+110.8%)

(Source: 2021 Trademap TR data, values are based on x1000USD.)

How Is the Trade Volume Between Turkey and Morocco?

The commercial relations between the two countries have greatly increased after the 2018 visit to Morocco. Strengthened by the Free Trade Agreement (FTA), Turkey and Morocco have become significant partners. Our ministry has announced that Morocco is among the 23 priority countries in the commercial relations for the 2022-2023 period. The investments of Turkish companies in Morocco are increasing day by day, and the trade volume is growing rapidly. The trade volume between Turkey and Morocco, which exceeded 2.7 billion dollars in 2018, has approached 2.9 billion dollars today, nearing the 3 billion threshold.