Customs to Enforce Duty on Misused Duty-Exempt Vehicles

The Maldives Customs Service (MCS) has announced that it will begin imposing duties on vehicles imported duty-free for specific projects but subsequently used in violation of import conditions.
In a press release, Customs revealed instances where such vehicles, intended for temporary project use, have not been re-exported upon project completion and are instead being operated within the country without payment of applicable duties.
Vehicles found breaching duty exemption conditions will be subject to search and custody, with investigations launched and appropriate measures enforced. Duty collection on these vehicles commences effective today.
The enforcement action follows concerns voiced by the business community during President Dr Mohamed Muizzu's meeting with small and medium enterprises (SMEs) on 17 December 2025. Representatives highlighted cases where duty-exempt project vehicles were neither re-exported nor cleared through proper channels, and were instead rented out to third parties.
President Muizzu assured attendees that the government would address the issues within the legal framework, reaffirming the administration's commitment to supporting businesses across all levels.
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