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

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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

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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

REPUBLIC OF LIBERIA

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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

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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

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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

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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

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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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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

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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

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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