Clothing, tyres, vehicles, raw materials for footwear and textiles
- Document symbol
- G/LIC/N/3/LSO/2
- Original language
- English
- Published on
- 23/11/2010
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.
The list of products covered under Lesotho's Import Licensing/Import Permit system has been specified in the "Import Restrictions (Amendment) Regulations, 2009". This regulation also stipulates the relevant authorities responsible for managing the licensing process of each product. The import licensing system generally requires an importer to first approach the relevant issuing authority to be guided on the specific application material required for importation of the specified product. Once the necessary documentation has been procured, the importer presents these along with a completed application form to the issuing authority for consideration. The documentation is then reviewed against the administrative requirements and within the timeline specified by the issuing authority for import of the specified product. An import permit is issued once the approval process is complete. Applied terminology varies by institution with some issuing "import permits" while other issue "import licences".
Import Permit
The importer lodges an application through the provided system in Ministry of Trade and Industry Cooperatives and Marketing (MTICM) – OBFC; the system they apply already has an application whereby the importer fills in the required information. After the completion of the form, the importer clicks the save button, and automatically the application reflects in imports & exports officers desk through the system. After receiving the application, the officer searches the send job, checks it against the required standards, if the information is authentic, the officer approves the application and print the permit licence.
Rebate Permit
In order for the importer to obtain the rebate permit, she/he has to be the holder of the manufacturing licence obtained from MTICM. With the manufacturing licence, the importer registers with LRA with the aim of informing the LRA that the products to be manufactured will be exported so that the importer will be exempted from certain duties.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Permits are required for:
Import permit:
- Clothing including used clothing;
- Tires including used tires;
- Vehicles including used vehicles.
Rebate Permit:
- Raw material for footwear & textiles.
Q3. The system applies to goods originating in and coming from which countries?
The permit system applies to goods originating in and coming from all countries with exception of the South African Customs Union region.
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?
The permit system is not intended to restrict the quantity or value of imports of goods listed but rather to monitor the inflow (collect statistics).
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?
Is the licensing statutorily required?
The licensing is statutorily required. Laws, regulation and/or administrative order under which the licensing is maintained: import licensing procedures in Lesotho are governed by the Export and Import Control Act of 1984 (Amended 1996) and the Import Restrictions (Amendment) Regulation, 2009.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
The legislation does not leave designation of products subject to licensing to administrative discretion.
Is it possible for the government to abolish the system without legislative approval?
It is not possible for the Ministry of Trade to abolish the system without legislative approval but improvements of the system are possible.
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?
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?
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.)
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?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
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?
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?
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?
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?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
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)?
How far in advance of importation must application for a licence be made?
Import and rebate permits applications are processed in the minimum time of two hours, and maximum time of a day, but licence application have to be made prior to scheduled importation.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Licences may not be obtained within a shorter time-limit as the system automatically detects first applications. However, in circumstances where goods arrive at the port without a permit, such permit maybe issued upon the discretion of the OBFC Director but still have to follow the procedure.
Q7.b. Can a licence be granted immediately on request?
Permits may be granted immediately on request provided all relevant documentation is available and the goods are not yet within the country.
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.
There are no limitations as to the period of the year during which application for licence and/or importation may be made.
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?
Which administrative body is responsible for approving application of licences?
Consideration of import and rebate permits applications is effected by a single administrative organ
Must the applications be passed on to other organs for visa, note or approval?
however, any relevant documentation required from other administrative organs (such as the police or revenue authorities) has to be procured prior to submission of application to OBFC.
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?
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
Permits are not granted on the basis that the applicant did not meet requirements or presented falsified information.
Are the reasons for any refusal given to applicants?
Reasons for refusal are given to the applicant in writing.
Have applicants a right of appeal in the event of refusal to issue a licence?
The applicant can appeal the decision to the Minister of Trade.
If so, to what bodies and under what procedures?
There is no appeal procedure specified in the legislation.
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?
All persons firms and institutions in good legal standing are eligible to apply. Both nationals and foreigners with valid residence permits are equally eligible to apply for permits.
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?
What information is required in applications?
A sample import application form is required.
What documents is the importer required to supply with the application?
Documents that the importer is required to supply with the application are: certified copies of passport, traders/manufacturers licence, pro-forma invoice, affidavit forms, clearing instructions, bill of landing or airway bill.
Q11. What documents are required upon actual importation?
Documents required upon actual importation include: import permit, bill of lading or airway bill.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
There are no import licensing fees or administrative charges.
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.
There no deposit or advance payment requirement.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
Import and rebate permits are granted per consignment; the validity of a licence may not be extended but a new licence can be granted.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilisation of a licence or a portion of a licence.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licences cannot be transferable between importers.
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 other conditions are attached to the issue of an import permit or rebate.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no other administrative procedures.
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?
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Foreign exchange is automatically provided by the banking authorities for goods to be imported if other administrative procedures required are fulfilled.
Is a licence required as a condition to obtaining foreign exchange?
Licences are not required as a condition to obtaining foreign exchange.
What formalities must be fulfilled for obtaining the foreign exchange?
Formalities to be fulfilled to obtain the foreign exchange include the presentation of identification document, proof of sufficient funds in bank account, and a Pro-Forma Invoice.