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REFORMING TRADE LOGISTICS IN LIBERIA ELFRIEDA STEWART TAMBA DEPUTY MINISTER FOR REVENUE

REFORMING TRADE LOGISTICS IN LIBERIA ELFRIEDA STEWART TAMBA DEPUTY MINISTER FOR REVENUE MINISTRY OF FINANCE REPUBLIC OF LIBERIA. REFORM TRIGGERS. Vision to Modernize Vision to be WCO compliant and meet legitimate trade facilitation standards

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REFORMING TRADE LOGISTICS IN LIBERIA ELFRIEDA STEWART TAMBA DEPUTY MINISTER FOR REVENUE

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  1. REFORMING TRADE LOGISTICS IN LIBERIA ELFRIEDA STEWART TAMBA DEPUTY MINISTER FOR REVENUE MINISTRY OF FINANCE REPUBLIC OF LIBERIA

  2. REFORM TRIGGERS • Vision to Modernize • Vision to be WCO compliant and meet legitimate trade facilitation standards • Vision to attract direct foreign investment • Doing Business Trading across borders indicator • Regional and continental reform accomplishments

  3. ModernizationStrategy • AIM---Comprehensive overhaul of the way business was done. • ADMINISTRATIVE • Staffing, training and remuneration improvement • Professional delivery of service and work environment • Reduce administrative cost of import/export by streamlining processes • Consistent and transparent application of the law • Several front interventions transfer to back and strengthening back offices • Code of conduct -Zero tolerance for corruption • SYSTEMIC • Infrastructure improvement • Automation • Single Window • Customs Law modernization • CET Migration • WCO Compliant

  4. Challenges At Ports • Lack of scanners • Lack of Warehousing • Manual processes except Freeport • Lack of weigh bridges • Inadequate customs physical examination facility. The current facility has a space for the examination of only three containers simultaneously. See pictorial below. • Lack of warehousing facility to store seized goods and equipment to facilitate examination

  5. Land Borders • Bad roads • Lack of warehousing • Poor office infrastructure at about 70% most border ports and lack of electricity • Lack of computers, border examination equipment, facilities and necessary logistics to conduct examination thereby subjecting traders to Inspection in city and customs escort. • Lack of adequate communication other than GSM phones • Lack of tracking technology to monitor and track transshipments

  6. Quick Impact Administrative Reforms 22 Reforms To Date Key Highlights Introduction of three shifts for Wharf Section thereby automatically eliminating overtime payment cost for shipping companies. Elimination of customs tally at containers discharge . Work hours for Freeport collectorate extended from 4pm to 5pm The establishment of risk management unit to implement risk based inspection regime for clearing goods to encourage compliance Elimination of export tax clearance except for risk exports Elimination of PSI for bulk imports such as gasoil ,cement and rice Faster clearance for traders who conduct PSI using risk profiling Removal of about 5 different security agencies from the Freeport

  7. SYSTEMIC REFORMS • Key Highlights • A centralized facility at the Freeport (One Stop Shop) • Infrastrutcure improvements at four rural ports • 3. Implementation of ASYCUDA World at key ports with 80% of volume

  8. IFC/ICF INTERVENTIONS Two Phased Approach • As part of the larger IFC Investment Climate Program in Liberia, the Trade Logistics Advisory Team launched a program of assistance to improve the trade logistics environment reducing the time and costs of import and export transactions. • Phase 1 : Streamlining import and export processes • Mapping import & export processes • Finding and validating quick winsreforms • Introduction of Risk Management for border inspections • Phase 2 : Systemicreform • Enhance current risk management policies including the introduction of a risk based inspections • Drafting of a new Customs Code • Process mapping & continuation of reduction in procedures and documents • Supporting roll out of Customs Automation

  9. Whatisworkingwell • What is working well: • Political support and commitment • Modernization Implementors vision and commitment to change • Private sector involvement • Reform momentum • Communication strategy • Challenges • Inter-agency coordination • Full buy-in from critical ministres on turf issues

  10. The Key Reform Facilitators • The IFC/ICF provided computer training for 90 customs officers, 60 computers and Risk management software and training • ADB funded acquisition of ASYCUDA World Software and some computers for HQ • EU is providing long and short term modernization technical assistance • UNCTAD facilitated procurement of the ASYCUDA World software by agreeing to make software available on a 3 years installment plan. • USAID provided connectivity between Freeport and MoF and computers for the One Stop Shop and has constructed four new customs border posts office buildings. • See pictorial below. Partial view of one the four customs border offices constructed by USAID

  11. Institutionalframework to lead • modernization vision • TechnicalSteeringCommitteechaired by the DeputyMinister of Finance • CoreMembers: Ministry of Commerce, National Port Authority, Bureau of Customs, Chamber of Commerce; • Able to implementreformsquickly and effectively and withauthority

  12. Gradually achieving higher ranking New Tax Policy Initiatives

  13. Next Steps to Improving Trade Facilitation • Automation roll out to oil terminal and Roberts International Airport by end 2010 and to three key border posts on stand alone basis. • Provision of computer, other necessary equipment and logistics at other collectorates on a revenue impact basis • Consummation of BOT arrangement for National Port Authority • Elimination of import declaration approval for 100% of imports and introduction of risk in the IPD requirement process • Adoption of HS2007 • Migration to GATT from Brussels definition • Enhancement of regional information sharing

  14. Key NextSteps • Drafting and implementation of a new Customs Code • Implementing reforms to facilitate accession to the WTO and improvingWCO compliance ratio • Supporting further trade faciliation at aports through provision of necessary equipment and more infrastruture improvements • Supporting the transition to DI and enhancement of DI execution through the provision of necessary equipment • Elimination of PSI requirement for Airfreight on 100% and introduction of risk profiling • Electronic upload of supporting customs documents • Introduction of Customs Website

  15. On behalf of the Government of Liberia, I extend profound thanks to all of our international partners for their assistance in helping to improve trading environment in Liberia and most especially to the IFC/ICF. May I further extend our request to you and friendly Governments to continue your assistance in helping us actualize our vision of a modern customs administration WCO compliant. THANK YOU

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