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REPUBLIC OF LIBERIA
Friday, April 21, 2023 1
REFORMING TRADE LOGISTICS IN LIBERIA
ELFRIEDA STEWART TAMBADEPUTY MINISTER FOR REVENUE
MINISTRY OF FINANCEREPUBLIC OF LIBERIA
Friday, April 21, 20232
REFORM TRIGGERS
Vision to Modernize
Vision to be WCO compliant and meet legitimate trade facilitation standards
Vision to attract direct foreign investment
Doing Business Trading across borders indicator
Regional and continental reform accomplishments
REPUBLIC OF LIBERIA
Friday, April 21, 2023 3
Modernization Strategy
AIM---Comprehensive overhaul of the way business was done. ADMINISTRATIVE
Staffing, training and remuneration improvement Professional delivery of service and work environment Reduce administrative cost of import/export by streamlining processes Consistent and transparent application of the law Several front interventions transfer to back and strengthening back offices Code of conduct -Zero tolerance for corruption
SYSTEMIC Infrastructure improvement Automation Single Window Customs Law modernization CET Migration WCO Compliant
REPUBLIC OF LIBERIA
Friday, April 21, 2023 4
Challenges At Ports Lack of scanners Lack of Warehousing Manual processes except Freeport Lack of weigh bridges Inadequate customs physical examination facility. The current facility has a space for the examination of only three containers simultaneously. See pictorial below.
Lack of warehousing facility to store seized goods and equipment to facilitate examination
REPUBLIC OF LIBERIA
Friday, April 21, 2023 5
Land Borders
Bad roads
Lack of warehousing
Poor office infrastructure at about 70% most border ports and lack of electricity
Lack of computers, border examination equipment, facilities and necessary logistics to conduct examination thereby subjecting traders to Inspection in city and customs escort.
Lack of adequate communication other than GSM phones
Lack of tracking technology to monitor and track transshipments
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Friday, April 21, 2023 6
22 Reforms To DateKey Highlights
1. Introduction of three shifts for Wharf Section thereby automatically eliminating overtime payment cost for shipping companies.
2. Elimination of customs tally at containers discharge .
3. Work hours for Freeport collectorate extended from 4pm to 5pm
4. The establishment of risk management unit to implement risk based inspection regime for clearing goods to encourage compliance
5. Elimination of export tax clearance except for risk exports
6. Elimination of PSI for bulk imports such as gasoil ,cement and rice
7. Faster clearance for traders who conduct PSI using risk profiling
8. Removal of about 5 different security agencies from the Freeport
Quick Impact Administrative Reforms
REPUBLIC OF LIBERIA
Friday, April 21, 2023 7
SYSTEMIC REFORMS
Key Highlights
1. A centralized facility at the Freeport (One Stop Shop)
2. Infrastrutcure improvements at four rural ports
3. Implementation of ASYCUDA World at key ports with 80% of volume
REPUBLIC OF LIBERIA
Friday, April 21, 2023 8
IFC/ICF INTERVENTIONSTwo Phased Approach
As part of the larger IFC Investment Climate Program in Liberia, the Trade Logistics Advisory Team launched a program of assistance to improve the trade logistics environment reducing the time and costs of import and export transactions.
Phase 1 : Streamlining import and export processes Mapping import & export processes
Finding and validating quick wins reforms
Introduction of Risk Management for border inspections
Phase 2 : Systemic reform Enhance current risk management policies including the
introduction of a risk based inspections
Drafting of a new Customs Code
Process mapping & continuation of reduction in procedures and documents
Supporting roll out of Customs Automation
REPUBLIC OF LIBERIA
Friday, April 21, 2023 9
What is working well
What is working well: Political support and commitment Modernization Implementors vision and commitment to change Private sector involvement Reform momentum Communication strategy
Challenges Inter-agency coordination Full buy-in from critical ministres on turf issues
REPUBLIC OF LIBERIA
Friday, April 21, 2023 10
The IFC/ICF provided computer training for 90 customs officers, 60 computers and Risk management software and training
ADB funded acquisition of ASYCUDA World Software and some computers for HQ
EU is providing long and short term modernization technical assistance
UNCTAD facilitated procurement of the ASYCUDA World software by agreeing to make software available on a 3 years installment plan.
USAID provided connectivity between Freeport and MoF and computers for the One Stop Shop and has constructed four new customs border posts office buildings.
See pictorial below.
The Key Reform Facilitators
Partial view of one the four customs border offices constructed by USAID
REPUBLIC OF LIBERIA
Friday, April 21, 2023 11
Institutional framework to lead modernization vision
Technical Steering Committee chaired by the Deputy Minister of Finance
Core Members: Ministry of Commerce, National Port Authority, Bureau of Customs, Chamber of Commerce;
Able to implement reforms quickly and effectively and with authority
REPUBLIC OF LIBERIA
Friday, April 21, 2023 12
REPUBLIC OF LIBERIA
Friday, April 21, 2023New Tax Policy Initiatives 13
Gradually achieving higher ranking
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Friday, April 21, 2023 14
Automation roll out to oil terminal and Roberts International Airport by end 2010 and to three key border posts on stand alone basis.
Provision of computer, other necessary equipment and logistics at other collectorates on a revenue impact basis
Consummation of BOT arrangement for National Port Authority
Elimination of import declaration approval for 100% of imports and introduction of risk in the IPD requirement process
Adoption of HS2007
Migration to GATT from Brussels definition
Enhancement of regional information sharing
Next Steps to Improving Trade Facilitation
REPUBLIC OF LIBERIA
Friday, April 21, 2023 15
Key Next Steps
Drafting and implementation of a new Customs Code
Implementing reforms to facilitate accession to the WTO and improvingWCO compliance ratio
Supporting further trade faciliation at aports through provision of necessary equipment and more infrastruture improvements
Supporting the transition to DI and enhancement of DI execution through the provision of necessary equipment
Elimination of PSI requirement for Airfreight on 100% and introduction of risk profiling
Electronic upload of supporting customs documents
Introduction of Customs Website
REPUBLIC OF LIBERIA
Friday, April 21, 2023 16
On behalf of the Government of Liberia, I extend profound thanks to all of our international partners for their assistance in helping to improve trading environment in Liberia and most especially to the IFC/ICF.
May I further extend our request to you and friendly Governments to continue your assistance in helping us actualize our vision of a modern customs administration WCO compliant.
THANK YOU