Sugar
- Document symbol
- G/LIC/N/3/CAF/1
- Original language
- English
- Published on
- 16/12/2010
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
In general, the Central African Republic has abolished most of its quantitative import restrictions, except on imports of sugar, pharmaceuticals and petroleum products, which have been subject to special regulations that affect all imports of products into Central African territory since 1986. In the case of sugar, on 9 September 2003, the Government signed a protocol of agreement with SUCAF RCA, the SUCAF company under private law, on privatization of SOGESCA, a former sugar mill. A regulatory body has been set up to monitor the market in the sugar subsector. SUCAF RCA has a monopoly of 90 per cent of sugar imports, with the remaining 10 per cent being allocated to other importers which put in applications.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Imports of sugar: an import/export permit issued by the Minister responsible for trade must be obtained; an import decision duly signed by the Ministers responsible for trade and for finance must be given before the import declaration itself can be made.
Q3. The system applies to goods originating in and coming from which countries?
These different systems apply to the products mentioned above coming from all countries without exception. The customs regime applies depending on the country in question.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
In the case of sugar, the purpose of the licensing regime is to limit the volume to be imported solely in order to protect the domestic industry. Import is therefore only allowed in order to make up the shortfall in production and to meet local consumption needs, which amount to 35,000 tonnes annually.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The following are the basic texts regulating the sugar subsector in the Central African Republic:
Ordinance 83.069 of 10 November 1983 containing regulations on foodstuffs in the Central African Republic;
Ordinance 83.83 of 31 December 1983 regulating trading activities and the supply of services in the Central African Republic;
Order No. 031 of 31 March 2008 creating the regulatory body for the sugar market in the Central African Republic;
Protocol of agreement of 4 September 2008 between the Central African State and SUCAF Centrafrique on the extension of protection;
Decision No. 0027 of 20 April 2009 containing the rules of procedure for the regulatory body for the sugar market in the Central African Republic.
Staple goods - subject to approval, with prices fixed by an interministerial committee.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Information on the allocation of import quotas for sugar and formalities for filing requests for authorization can be found in the Order creating the regulatory body for the sugar market (ORMS), which has been published.
The Central African Republic has recently set up an Internet site. Work is going on to make the information available to importers. In the meantime, importers seeking information can contact the Ministry responsible for trade, which can provide them with copies of the texts.
An importer wishing to request an exception to or waiver from licensing requirements must write officially to the Ministries responsible for trade and for finance, and this is also published.
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
According to the provisions in the protocol of agreement on sugar, domestic consumption of sugar is 35,000 tonnes annually.
SUCAF only produces 11,000 tonnes, the shortfall is therefore 24,000 tonnes; applications are made by importers quarterly. After they have been received, the ORMS meets and automatically allocates 90 per cent of the shortfall to SUCAF RCA, i.e. 21,600 tonnes. The remaining 2,400 tonnes are allocated to other importers in accordance with their needs.
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
With the exception of sugar, pharmaceuticals and petroleum products, no other products are subject to licensing. Import licensing and other similar practices are applicable to both national and foreign importers provided that they comply with the authorities' regulations.
Decisions on imports granted to importers by the competent authorities take effect as of the date of their signature and are registered and transmitted as necessary.
After receiving the decision, an importer has to complete a DIC and obtain an inspection certificate from the Veritas Bureau (BIVAC) to enable the authorities to verify whether the goods have actually been imported. Each week, the ORSM, together with the services in the Ministries responsible for trade (Competition Directorate) and for finance (Customs Directorate), monitors the actual import of the volumes authorized. If an importer is unable to import the goods within the time limit, he will not be given any import quota, even if he applies for one. The decision is ad personam and non transferable and it lapses automatically four months after having been signed.
An import decision may also be extended if the importer can prove a case of force majeure within a reasonable period before expiry of the decision's validity.
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Licence applications are submitted quarterly to the ORMS, which receives the import applications sent to the Minister responsible for trade, duly annotated.
Q6.V. What are the minimum and maximum lengths of time for processing applications?
A reply to all applications to import sugar submitted in accordance with the requirements must be given within thirty (30) days of filing the application.
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Three (3) months for sugar.
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
In the case of sugar, the ORSM is composed of the trade, customs and taxation services and a representative of the importers. All these services verify that the importer has complied with their regulations before giving a technical opinion to enable the two Ministers (Trade and Finance) to sign the decision. Applications are sent directly to the Minister of Trade, chair of the ORSM.
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Importers in general (new or existing) are aware that they have to file their next application at the end of the quarter. The ORSM does not make any distinction between new and existing importers. If they all meet the requirements, the ORSM gives them all an authorization in light of the remaining volume and according to needs. The same applies to other products.
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
All traders, without exception, must complete a DIC for all import/export transactions in the Central African Republic. This is the method used by the Government to securitize customs revenue, on the one hand, and to keep trade statistics, on the other.
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
The export licensing regime was abolished in the Central African Republic in 1986. Exporters therefore only have to submit a DIC before exporting their goods. The importing country must verify the export permit from the BIVAC, authorized for this purpose. The BIVAC then issues the DIC, which is countersigned by the Ministry responsible for trade in order to allow the importer to import the goods.
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Such a provision does not yet exist in the Central African Republic.
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
Q7.b. Can a licence be granted immediately on request?
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
There is no registration system. All import transactions for such products require submission of the decisions allowing the operators to engage in such transactions.
For all applications to import sugar, the importer must meet the following requirements:
- Be in possession of ministerial approval and a trader's card;
- have the status of importer and prove annual turnover of not less than CFAF fifty (50) million, as well as proper book keeping practices;
- prove compliance with the Finance Law for the current year;
- have imported the quotas previously allocated within the time limits;
- be domiciled with a bank;
- prove payment of administrative costs.
The list of those authorized is automatically published, thereby informing other economic operators.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
There is no sample form for import applications for sugar, but the application must show the company's logo, its contact numbers (its full address), the reasons for applying for the quota and the volume requested, together with the signature and stamp of the firm's director. All the documents listed above under paragraph 9 and point (a) must also be attached to the application.
Q11. What documents are required upon actual importation?
The DIC; the pro forma invoice of the supplier and the administrative fees payable to the Veritas Bureau (BIVAC), given responsibility for this purpose by the State, together with a copy of the decision authorizing the importer to import the goods in question.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
No reply has been given.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
No reply has been given.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
No reply has been given.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
No reply has been given.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No reply has been given.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
No reply has been given.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No reply has been given.
Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?
No reply has been given.