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".

An importer lodges his/her application with the Department of Marketing at the Ministry of Trade and Industry, Cooperatives and Marketing. Applications are considered on the spot and import permits are issued automatically for all approved applications.

Permits are required for:
-Sugar;
-Bread;
-Fresh fruits and fresh vegetables;
-Pulses;
-Red meat;
-Poultry;
-Eggs;
-Wool and mohair.

The system applies to goods originating in and coming from all countries with no exception.

The system is intended to regulate the quantity of imports of some agricultural products to encourage domestic production of agricultural products depending on the availability of local produce. Furthermore, the permits are issued to sugar packers to allow them to import raw sugar. In the case of red meat, the system is in place to ensure imports are sourced from reliable and hygienically approved suppliers.

The import permit system complements existing training programs aimed at assisting farmers acquire the capacity to operate competitively.

Is the licensing statutorily required?

The licensing is statutorily required. Law, regulation and/or administrative order under which the import permit is maintained: import restrictions (Amendment) Regulation, 2009, Agricultural Marketing Act, 1967, Marketing Import Control Regulations Legal notices: 176/1989 for sugar, 15/1969 for poultry and eggs, S/2005 for bread, 141/1992 for meat, 28.1992 for pulses, 178.1986 for pulses.

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 Department of Marketing to abolish the system without legislative approval but improvements of the system are possible.

See replies 6.1-6.11

Information relating to the allocation of quotas (including amounts) and formalities of filing applications for import permits is not formally published but is made available to all individuals through "District Marketing Officers" who report to the Department of Marketing.

Use of the quota is allocated to all entities deemed by administrative directive as qualified importers of the listed agricultural products.

Quotas are determined on a monthly basis. There are no cases where the size of quota is determined on a yearly basis but import permites are issued on a six-monthly or quarterly basis.

Import permits are not allotted for certain goods partly or only to domestic producers of like goods. Regular inspections at port of entry and trader's premises are mechanisms used to ensure allocated permits are actually used for imports. Unused allocations cannot be added to quotas for a succeeding period. The names of importers to whom import permits have been allocated can be made known to governments and export promotion bodies of exporting countries upon request.

Applications for import permits can be submitted immediately after the monthly quota is determined.

Applications are processed immediately upon submission by applicants.

Importation can occur immediately after import permit is issued.

The Department of Marketing is the single administrative organ designated to consider applications for import permits. The importers do not have to approach more than one administrative organ.

Where demand for import permits cannot be fully satisfied, allocation to applicants is made on a first come, first served basis. No maximum allocation amount is set per applicant. New importers are only required to meet ordinary criteria and their applications are examined on receipt.

Import permit are required in the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries. Import permits are also issued automatically in such cases.

There are currently no cases where imports are allowed on the basis of export permits only.

There are no products for which import permits are issued on condition that goods should be exported and not sold in the domestic market.

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 ordinary criteria including when there is abundant supply of the products in request locally.

Are the reasons for any refusal given to applicants?

The reason for refusal can be given to the applicant in person, by telephone or 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 Permanent Secretary of the Ministry of Trade and Industry, Cooperatives and Marketing.

If so, to what bodies and under what procedures?

There is no appeal procedure specified in the legislation.

Is there a system of registration of persons or firms permitted to engage in importation?

For certain products where a quota applies, only approved importers of the said product can apply for an import permit.

What persons or firms are eligible to apply for a licence?

Qualified importers for each product are listed as follows:
- Sugar: packers only;
- Poultry and eggs: licensed butchery, diary shop, traders licence holders of all levels, hotels, restaurants and food caterers;
- Bread: all traders licence holders with exception of butchery and dairy shop, hotels restaurants and food caters;
- Meat: butchery and other traders licence holders, hotels, restaurants and food caters;
- Fruits and vegetables: butchery and other traders licences holders, hotels, restaurants and food caters;
- Pulses: all traders licence holders, hotels, and restaurants.

As indicated above, import permits are not required for all other products.

What information is required in applications?

A sample import application form for sugar import is required, (required information is largely the same for all other products where an import permit is required).

What documents is the importer required to supply with the application?

Documents the importer is required to supply with the application are: traders or manufacturers licence.

Documents required upon actual importation include: Import permit and declaration of invoices.

There are no fees or administrative charges attached to the granting of an import permit.

There is no deposit or advance payment requirement.

There is no specified validity period for permit, but validity cannot go beyond one calendar month. The validity of an import permit cannot be extended.

There is no penalty for the non-utilisation of a licence or a portion of a licence. However importers are required to notify the Department of Marketing in case of non-utilisation for statistical purposes.

Licences cannot be transferred between importers.

There are no other conditions attached to the issuance of an import permit.

There are no other administrative procedures.

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.