The Cargo Tracking Note/Advanced Cargo Declaration (CTN/ACD) system is used by the National Port Authority (NPA) for shipments to any destination port, including transit through Liberia. This technique is also used for sophisticated freight declarations. This mechanism must be put in place. Shipments will not be loaded or discharged at this site unless a valid CTN number is provided. As a result, shippers, exporters, and forwarders in various ports of loading throughout the world must use the online platform to obtain a validated Cargo Tracking Number (CTN) and submit the requisite shipping paperwork. This is true regardless of where the loading occurs on the planet. If the CTN is not obtained, additional fines and fees may be charged following the NPA regulation. The NPA also mandates Bureau Veritas, the only pre-shipment provider, to do pre-shipment inspections. The charge for these services is 1.5 percent of the shipment’s total value. Pre-shipment checks are necessary for items costing more than USD 3,500. Importers who fail to complete the BIVAC pre-shipment inspection risk obtaining a fine ranging from 10% to 30% of the total value of the shipment. Importers must present cost information to MOCI after clearing customs to gain price approval. When pre-shipment inspections are replaced with destination inspections in July 2021, the government plans to use a new contractor called Medtech to do the inspections. Although Medtech would hire BIVAC as a subcontractor, the actual inspections would continue to be performed by BIVAC. However, due to public outrage over the rising expenses and lack of transparency, this deal was placed on hold for the time being. At the moment, the moratorium is still in effect.
The following goods are listed by BIVAC as being exempt from import (customs) duties;
- Free shipping is provided for orders that do not exceed one thousand dollars US (FOB)
- • An adequate quantity of possessions, including both personal and home items.
- Materials for United Nations agencies and diplomatic missions.
- Gold, priceless stones, and works of art.
- Weapons, ammunition, explosives, and other items used in warfare were brought into the country by the Liberian Armed Forces and other security or law enforcement agencies.
- Fresh fish caught by Liberian fishermen that live nearby.
- Items brought in by parcel post that cost no more than USD 1,000.
Import tariffs
Liberia’s Revenue Code establishes the legislative and administrative framework for customs standards and levies. The Liberia Revenue Authority (LRA), a semi-autonomous institution, administers and enforces the Revenue Code and related tax legislation. Tariff duties on imports vary by product type, category, and volume and are a major source of revenue for the government here. Import tariffs for some goods are specific (depending on volume), while others are ad valorem (based on price, insurance, and freight value). Specific requirements apply to food, beverages, petroleum products, and some rubber goods. For the cost of machinery and equipment used in the year an asset is put into service, a tax credit of up to 30% is allowed. For the building costs of a new hotel or vacation resort, a tax deduction of up to 30% of the investment cost is available. A tax deduction of up to 10% may also be claimed for the cost of buildings or equipment used to manufacture finished items containing at least 60% local raw materials. Duty-free imports cover up to 90% of the dutiable value of machinery, equipment, raw materials, semi-finished goods, and other supplies utilized in tourism construction projects. The government enforces container tracking fees to earn money without improving the importation process.
ECOWAS introduced a common external tariff (CET) system based on a VAT regime in 2010 to build a unified custom union in West Africa. Regional trade and business are facilitated. Liberia still uses a single-stage goods and services tax (GST) while the government gradually changes to VAT and harmonizes domestic and foreign taxation systems.
