Customs Authorities Incentivize Legal Trade in Fnideq Economic Zone

Since the closure of the border crossings at Bab Sebta and Bab Mellilia in 2019, Morocco’s Administration of Customs and Indirect Taxes (ADII) has played a key role in helping formerly illegal traders become legal operators through establishment of the Fnideq Economic Activity Zone (ZAEF).
Dedicated to the import, storage, and sale of goods, this commercial zone in the north of Morocco has been offering traders various customs benefits, including deferred payments and personalized support, to ease their shift to trading in the formal economy.
According to the ADII’s 2024-2028 Strategic Plan, the ZAEF initiative has proven successful. Duties and taxes collected from imported goods have reached 212 million dirhams, surpassing the 200-million-dirham budget already invested in the zone’s development.
“As of the end of December 2023, no fewer than 55 companies had established operations here and conducted over 1,000 import transactions since the zone’s launch in April 2022,” the ADII reported.
Prior to 2019, so-called “subsistence” smuggling was rampant between Morocco and the Spanish enclaves of Sebta and Melilla. Moroccan citizens living near these cities frequently crossed the borders to earn a living by smuggling various commodities such as food, clothing, tobacco products, and alcohol. These untaxed goods were often sold at much lower prices in Morocco due to the absence of customs duties.
The Covid-19 pandemic, along with enhanced customs controls and stricter sanctions against smugglers, effectively curbed contraband activities in the region. The closure of these borders also significantly impacted residents of the nearby Moroccan cities.
In Nador, which borders Melilla, many families were separated due to the sudden border closures. Before 2019, Moroccans born in Nador could access Melilla for many years without a Schengen visa, making the Spanish enclave a frequent destination, sometimes leading to permanent stays.
There have been numerous mass migration attempts between two cities, most recently when hundreds of migrants tried to swim to Sebta.
In response to these attempts, Moroccan border patrols have intensified efforts to control the flow of people trying to cross into these enclaves.