Country

Restrictions

Remarks

WTO Membership

MAT Cross-border and Consumption commitments under GATS

Domestic Insurance Law

Algeria

2, 4, 6

"Any importer who wants to insure the goods or the capital goods transported by sea should sign an assurance with an insurance company approved in Algeria. However, the goods or the imported capital goods that benefit from a specific financing are not subjected to this obligation of assurance. The conditions and the modalities of application of the present article are clarified by statutory way."

Art. 194 of the Code of Insurance

Observer

–

• Ordinance N° 95-07 of January 25, 1995.
   

• Executive decree 95-412 of 9 December 1995 specifies exceptions from the prohibition on non-marine insurance of goods imported by sea and air.

Angola

2, 4

Under Decree n° 172/79 dated August 1979 the local insurance of marine cargo imports is compulsory. However this law has apparently not been applied to all imports and many imported goods have been insured abroad. Currently, there is lobbying from the insurance industry for a new law to clarify the situation. This law seems to have been drafted and is awaiting enactment.

Member

No schedule of specific commitments.

• Decree 172/79 of August 1979.
   

• Insurance law 1/100 of February 2000.

Bangladesh

2, 4

Local insurance is required for all imports.

Member

No schedule of specific commitments.

• Insurance Corporation Act of June 23, 1973.
   

• Substitution of Section 23, Act VII of 1973, in Ordinance n° LI, 11.08.1984.
   

• Import Policy Order 2003-2006.

Barbados

-

Goods imported into or exported from Barbados must be insured with an insurer registered under the Insurance Act 1996, whether established inside or outside Barbados. In practice CIF imports are common and most exports are sold on a C&F basis. Overseas insurers must register with the Supervisor of insurance.

Member

No schedule of specific commitments.

• Insurance Act 1996.

Benin

2, 4

Cargo imports must be insured under Beninese legislation except in the case of major risks that are beyond the capacity of the local market. However, cheating is going on, as importers are only required by Beninese customs to produce a certificate of insurance once the goods have landed.

Fines of 50% of the premiums illegally paid can rise to 100% in the case of repetition. Cover of imports is compulsory.

Member

No schedule of specific commitments.

• Order 72-2 of 8 January 1972.
   

• Decree N° 83406 of 16 November 1983.
   

• Code CIMA, Art.278 (1995).

Bolivia

1, 2, 3, 4

Despite the law which requires that both exports from and imports into Bolivia must be insured locally, the regulations are not enforced and there is still freedom to import and export goods on any Incoterms ‘basis including CIF on any currency. Goods are frequently purchased in bond in Chile and smuggled into Bolivia.

Member

No schedule of specific commitments.

• Article 3 of N° 1998 insurance law of June 25, 1998.

Burkina Faso

2, 4

Imported goods exceeding 500 000 F CFA  in value must be insured with insurers authorised to operate in Burkina Faso. Several organisations such as governmental and international organisations, oil companies, are released from this obligation. An insurance certificate is required by Customs to clear the goods. The minimum insurance taken out locally must be “FPA” unless. The insurance certificate is systematically required just as to clear through customs. Cover of imports into the country is compulsory.

Member

No schedule of specific commitments.

• Order n° 85-088/CNR:PRE/MF of 30 December 1983.
   

• Decree n° 83-329/CNR/PRES/MF of 30 December 1983.
   

• Order n° 85-088/CNR/PRE/MF of December 1983.
   

• Code CIMA, Art.278 entered into force in February 1995

Burundi

1, 2, 3, 4

Member

No schedule of specific commitments.

• Ordinance N° 540.141 of June 9, 1983.

Cambodia

5

Despite a regulation introduced in February 2001 that encourages clients and insurance agents to place their business in Cambodia, most export trade is conducted on a FOB basis and imports are purchased CIF. However, premiums paid for insurance arranged outside Cambodia are not tax deductible expenses.

Member

-

• Section 1 General Regulation of the Ministry of Finance
   

• Circular N° 2 of April 6, 1993.
   

• Insurance Law n° NS/RKM/0700/02 enacted on 25 July 2000. Regulations 2001.

Cameroon

2, 4

It is forbidden to insure imported goods abroad when their value exceed 500 000 F CFA. Exemptions are possible subject to previous agreement with the Ministry of Finance. Insurance of imported cargo is compulsory.

Member

No schedule of specific commitments.

• Law N° 7514 of December 8, 1975.
   

• Decree N° 76/334 of August 6, 1976.
   

• Decree N° 30-78 of April 22, 1978.
   

• Code CIMA, Art.278 entered into force in February 1995. 

Cape Verde

1, 2, 3, 4

Exemptions are possible subject to previous agreement by the Ministry of Finance.

Observer

-

• Decree 30/78 of 22 April 1978.

Central African Republic

2, 4

The insurance of imported goods with a value equal or exceeding 500 000 F CFA is compulsory. Goods are cleared only after production of the certificate of insurance

Member

No schedule of specific commitments

• Ordinance N° 83.052 of August 2, 1983.
   

• Decree N° 84.128 of April 27, 1984.
   

• Code CIMA, Art. 278 entered into force in February 1995. 

Chad

2, 4

Imported goods with a FOB value equal or exceeding F CFA 500 000 must be insured locally, except for risks beyond the capacity of the domestic market.

Member

No schedule of specific commitments.

• Decree N° 736 of November 19, 1985.
   

• Decree N° 0019 of April 2, 1986.
   

• Code CIMA, Art. 278, effective 1995.

Congo (Brazzaville)

2, 4

All properties and goods imported into Congo must be insured with two insurance companies (ARC-Société d’assurances et de réassurances du Congo and AGC) or with insurance brokers or agents. Despite this law, importers continue to buy goods on a CIF basis. Cargo insurance is compulsory.

Member

No schedule of specific commitments.

• Order N° 8562 of 26 March 1983.
   

• Code CIMA, Art. 278, effective 1995.

Congo Democratic Republic (Kinshasa)

 2, 4

Transport insurance is compulsory. The state company Sonas has a monopoly of non-life insurance. However, given the upheavals that the country has undergone in recent years, it has been relatively easy to ignore the provisions of insurance legislation.

Member

No schedule of specific commitments.

• Law N° 73-009 of January 5, 1973.
   

• Law of November 1973.
   

• Law 74-014 of July 10, 1974.
   

• Law 78/009 of March, 1978.

Cuba

-

Local insurance of imports and exports is encouraged. In practice, the insurance of imports and exports depends upon the terms of trade but Cuban insurers are entitled to the first option for the insurance of exports.

Member

Unbound.

• Decree-Law N° 177 effective in September 1997.

Djibouti

2, 4

Under the insurance law of 2000, the local insurance of imports is required. This insurance must be taken out either with Djibouti-based insurance companies or with natural person or legal entities authorised to operate in the country.

Member

No schedule of specific commitments.

• Article 193 of the insurance law 2000.

Dominican Republic 

2, 4, 5

Imports must be insured in the local market, but exports may be insured overseas. However the law defines that any insurance which cannot be obtained in the Dominican Republic may be placed overseas subject to prior agreement.

Customs duties are based of the CIF value of goods and if the buyer insures imports abroad or does not insure imports, local Customs authorities consider the insurance cost equivalent to 2% of the invoiced value of the goods which increases customs duties.

Member

Unbound.

• Law 26 of May 10, 1971 as amended by Law 28 of December 23, 1975.
   

• Insurance Law 146-02 of September 2002.

Ecuador

2, 4

Authorisation of the Surperintendency may be granted when insurance is not available locally. Insurance is compulsory for imports

Member

Unbound.

• Decree N° 02-70 of February 25, 1970.
   

• Law on Insurance (Official Register n° 290 of 03.04.98) Art. 33 &66 c) and d). 

Ethiopia

2, 4

Local insurance of imports is compulsory. Exemption may be given by the National Bank where the capacity or the particular insurance cover required is not available locally.

Observer

-

• Notice N° 1/1977 of January 5, 1977.
   

• Chapter 2, Article 8 of Proclamation 86/1994.
   

• Directive N° SIB/27/2004, effective March 1, 2004

Gabon

2, 4

Imported goods of a FOB value exceeding 300 000 F CFA must be insured locally. Exemption is granted when cover is not available locally.

Member

No schedule of specific commitments.

• Ordinance N° 6/79 of February 22, 1979.
   

• Decree N° 0215/PR/MINECOFIN of February 22, 1979.
   

• Code CIMA, Art. 278, effective February 1995. 

Georgia

1, 3

Exports are increasingly insured in Georgia through one of the local insurers and reinsured into the international market. Non-ferrous metals and ores, oil and agricultural products must be insured with a local insurer and cannot be placed outside Georgia. Most imports can be insured on a CIF basis.

Member

Cross-border supply allowed for supplier who have established a commercial presence in Georgia and who are permitted to supply direct insurance for residents of Georgia.

• Article 7of the Law on Insurance 1998.

Ghana

2, 4, 6

Imports into Ghana must be covered by a local insurer. Customs add 1% on the assumption that insurance has been arranged offshore unless a valid local certificate is produced. Exports can be insured out of Ghana.

Member

Except in case of personal effects every insurance effected in respect of any goods imported into Ghana shall be placed with an insurer registered in Ghana.

• Decree of  1 January 1973.
   

• Ghana Shippers’ Council (Cargo Sharing). Regulations, 1987 (legislative instrument N0 1347).
   

• Insurance Law of 1989.

India

-

Marine cargo can be insured abroad depending on the terms of the sale contracts. In case of FOB contracts, the overseas exporter is permitted to take out insurance from other than Indian companies but only up to the time the goods are loaded onto the vessel.

Member

Unbound except in the case of insurance of freight where there is no requirement that goods in transit to and from India should be insured with Indian insurance company only. This position will be maintained.  Once under a contract the Indian  importer or exporter agrees to assume the responsibility for insurance such as in the case of FOB contracts for imports into India or CIF contracts for exports from India, insurance has be taken only with an Indian insurance company.

Indonesia

2, 4

All imports must be insured in the country with an Indonesian registered Company.  This regulation has been ignored for many years. Importers often purchase goods CIF and then arrange for local insurance company to issue a policy for customs declarations purpose only. Restriction will not be eliminated before 2020.

Member

Unbound except if :

a) there is no company in Indonesia, either individually or group, which could handle the insurance risks of the object in question .

b) There is no insurance company in Indonesia which wants to carry out insurance coverage of the object in question.

c) The owners of insurance objects in question are not Indonesian citizens or Indonesian legal entities.

• Indonesian Shipping Act N° 2 of 1992.
   

• Code of Commerce Part IX and X.

Iran

2, 4

State-owned Iranian banks do not accept to open letters of credit without production of a local cargo policy issued by an Iranian insurance company and providing a minimum of Clause C cover.

Observer

-

• Bimeh Markazi Establishment Act of June 1971.

Iraq

-

Given the situation in Iraq, the regulation in force is not workable. Accordingly, all shipments are insured abroad on a CIF basis.

Observer

-

• Central Bank Regulations of Iraq.

Jordan

5

Goods can be insured abroad subject to a 1% extra tax payable by the insurer during the clearing of the goods at customs formalities.

Member

Unbound.

• Insurance Regulation Act N° 33, 1999.
   

• Jordan Martime Commerce Act n° 12,1966.

Kazakhstan

5

Customs duties are charged on the CIF price, so it is in the importers’ interest to insure their cargo locally.

Observer

-

• Law n° 126-II on Insurance Activity of 2000, in force in 2001.

Kenya

2, 4

Although local insurance is compulsory for imports, a large volume of imported cargo enters Kenya on a CIF basis. The insurance of exports is at the discretion of the overseas buyer. Insurance of cargo imports compulsory.

Member

Unbound except for aviation, marine and engineering.

• Decree of 1st July 1978.
   

• Marine Insurance Act (Chapter 390) of 22/11/1968, revised in 1970.
   

• Insurance Act of 1984 and Insurance Regulations of 1986.

Liberia

1, 3

Rumours circulate that local exports insurance is now compulsory. Confirmation has never been received.

Intention of application

-

• Insurance Act of 1973.

Libya

2

The insurance of marine cargo imports is compulsory. In specific cases (namely in case of cash against documents) authorization may be granted to importers to place their covers through non-admitted insurers. Penalties may be applied for non-compliance.

Observer, but application for membership accepted

-

• Ordinance N° 75-002 of June 16, 1975.

Malaysia

5

There is no restriction to insurance of marine cargo abroad. However the Malaysian Government provides tax incentive on premium incurred for both imported and exported cargo insured with insurers licensed in Malaysia. Despite this double-tax deduction, many imports are purchased CIF.

Member

Unbound.

• Recommendation of the National economic recovery plan.
   

• Insurance Act  and Insurance Regulations of 1996.

Mali

2, 4

Dispensations are possible for food aid and equipment intended to develop domestic industry and economy.

Member

No schedule of specific commitments.

• Law n° 81-78/AN.RM of 15 August 1981.
   

• Law n° 85-37/AN.RM of 14 May 1985.
   

• Decree n° 314/PG.RM of 5 December 1983.
   

• Order n° 3364/MF.DNTCP of 14 July 1984.
   

• Code CIMA, Art. 278, effective 1995.

Madagascar

5

Special taxes are applied when goods are insured abroad.

Member

-

• Insurance Code.
   

• Law n° 99-013.

Mauritania

1, 2, 3, 4