Discusses the most common methods of payment, such as open account, letter of credit, cash in advance, documentary collections, factoring, etc. Includes credit-rating and collection agencies in this country. Includes primary credit or charge cards used in this country.
Last Published: 7/15/2019

Foreign Exchange

In accordance with Article VIII of the International Monetary Fund statute dealing with convertibility for current transactions, and in line with the Moroccan liberalization measures initiated in 1993, the Foreign Exchange Office delegated to authorized Moroccans banks the power to “freely carry out settlements relating to imports, exports, international transport, insurance and reinsurance, foreign technical assistance, travel, schooling, medical care, savings on income, as well as all other operations considered as current.”

According to regulations governing foreign exchange, payment of goods imported into Morocco is processed only after the actual entrance of the goods into the country. Buyers are allowed to prepay up to 30 percent of the invoice amount for all goods.  Although the Foreign Exchange Office website mentions 40 percent, the latest General Instructions for Foreign Exchange Operations issued in December 2013, revised the new limit to 30 percent, with a limit of 50 percent for companies in specific sectors (aeronautic and space).  Banks are authorized to open letters of credit and/or to accept bills of exchange.  The letters of credit must include a special clause that stipulates that the “payment is subject to justification of direct and exclusive shipment of goods to Morocco exceeding an import value of MAD 200,000 ($21,000).”  The transport documents justifying the shipment are:  the freight bill, airway bill, bill of lading, document of combined means of transportation, or receipt from Post office for mail parcels.  

Prepayment is permitted for the import of goods shipped Free on Board (FOB) valued up to MAD 100,000 ($10,500).  With respect to capital equipment, and goods temporarily admitted for active refinement (admission temporaire pour perfectionnement actif, ATPA), complete prepayment is permitted for import of goods shipped Free on Board (FOB) valued up to MAD 200,000 ($21,000).  It is also possible for the Moroccan bank to ensure full prepayment upon receipt of a document showing that the merchandise is in transit.Bank guarantees to secure payments to foreign suppliers.  Importers normally give local buyers up to 90 days’ credit. The regulatory authority with oversight over foreign exchange transactions is the Foreign Exchange Office. Guides to Moroccan foreign exchange regulations can be viewed at its website at http://www.oc.gov.ma/portal/fr/content/reglementation-changes/guides.

Tax Issue for foreign billing

Bills for professional services rendered outside of Morocco incur a 10 percent withholding tax.  It is important to clarify with the Moroccan business partner if the bill does or does not include the 10 percent tax.

Alternate Payment Forms

For smaller payments to U.S. suppliers, many Moroccan businesses now use credit cards, but there are limits on how much money can be spent abroad in one year.  If one is doing business regularly in Morocco, it may make sense to open a bank account so that the counterparty can make direct deposits.

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