When there is a shortage of fruits, vegetables, eggs, or meat, the Department of Marketing, which is part of the Ministry of Trade and Industry, issues import permits. Local demand has never been matched by national output. Used clothing and automobile imports are subject to non-automatic licenses.
Protective tariffs, South African port congestion, customs valuation over invoice prices, import permissions, and ineffective administration are some of the commercial hurdles mentioned by foreign businesses in Lesotho. Due to its lack of direct access to the sea and tiny international airport, Lesotho offers a problem for traders when it comes to shipping products to and from the country. However, Durban, South Africa, has high-quality facilities that are reachable via road and rail networks here.
It is advised that American companies interested in exporting to Lesotho use a reliable freight forwarding/customs clearing agent who is knowledgeable about Lesotho law. Because the country depends on South African ports (mostly Durban) for imports, businesses will also need to hire freight forwarding/customs clearing agencies in that country.
Requirement for shipments to Lesotho
Shipments to Lesotho must include the following:
- Commercial Invoice
- Parking List
- Bill of Lading.
- Bill of Entry (SAD Form).
- Certificate of Origin.
Import tariffs
As a member of SACU, Lesotho is required to apply the organization’s common external tariff in all of its trade dealings. Although SACU has been striving to create a tariff board, South Africa is the one that normally determines the tariff schedule for SACU after consulting with SACU members. Tariff rates normally fall within eight categories ranging from 0% to 30%, but some are higher, such as for the bulk of items that are classified as clothing. Additional expenditures of $119 to $180 are incurred for each shipment due to the clearing fees. The country makes use of a permit system for certain imports coming from countries that are not members of SACU. The method applies to all shipments that are imported by retail consumers as well as investors. During twelve months, manufacturers are granted blanket import privileges as well as preferential treatment, with an additional period of grace time of three months.
Trade barriers
Under the category “Trading Across Borders,” the World Bank’s 2020 Doing Business Report ranks Lesotho as the 40th best country out of 190 in the world to do business in. According to the findings of the research, a total of four different documents are required to bring items into or out of Lesotho. The process of importing products into Lesotho takes an average of 14 hours, while the process of exporting goods from Lesotho takes an average of 12 hours. Imports are either prohibited entirely or subject to severe restrictions in Lesotho because of the negative impact they have on the nation’s safety, health, economy, and morality. Import limits are governed by several different pieces of legislation, including the customs and excise Act of 1982, the import and export control act of 1984, the import restrictions of 1988 regulations, as well as the 1967 agricultural marketing regulations. Illegal imports include things like firearms, illicit drugs, pre-owned apparel, and footwear. Bread, legumes, sugar, eggs, meat, dairy products, fruits, and vegetables are all subject to quantity control regulations imposed by the Agricultural Marketing Act (commonly known as AMAP). Import restrictions, except for those placed on eggs, sugar, and legumes, typically include terms that authorize limited consumer purchases from outside the country.
Lesotho customs regulations
Customs and Excise Amendment Order 2 and Order 25 1986, Customs and Exercise Amendment Act 3 1984, and Customs and Excise Act No. 10 1982 are all laws that are enforced by the Lesotho Revenue Authority (LRA), an agency of the Ministry of Finance, to control and facilitate international trade. The Lesotho Customs Bill 2018, Customs and Excise Amendment Order 2, and Order 25 1986 are all laws that were enacted to control and facilitate international trade.
