History

Customs Procedures

Businesses face many problems with the temporary admission system, including:

  • The procedures for releasing the letters of guarantee are lengthy and complex.
  • Customs duties are imposed on imported factors of production, especially equipment and machinery, that are used in the manufacturing of export products. 
  • Exporting is complex and time consuming.  It usually takes a year to conclude an export operation—from the time the bank guarantee is issued to the release of the shipment for exporting; this issue is compounded by the fact that these procedures are lengthy, and usually go beyond the grace period granted to investors (the period of time immediately after the arrival of the imported raw materials, during which investors should export their products).

Responsible Entities

Date 3/21/2019

Customs Procedures

  • Adopt the system of risk management for customs control. Under this system, businesses with an established solid reputation as importers, as well as reputable suppliers and customs brokers would be cleared through the green clearance track (no inspection). At the same time, take necessary and adequate protective measures, and in the case of offences, impose punitive measures, including having offenders go through the red clearance track (inspection).  
  • The Customs Authority should consider entering into arrangements with companies that have solid track records of fulfilling the customs requirements on time—whitelisted companies; the arrangements should contain stringent penalty clauses that are to be applied in case the company fails to abide with the rules and regulations.
  • Amend Article 98 of the Customs Law No. 66 of 1963, as amended by Law No. 172 of 2018, concerning the temporary admission system. The amendment should include the following:
  1. Extend the life of the temporary admission permit to four years.
  2. Eliminate the requirement that importers submit a letter of guarantee, submitting an insurance policy should suffice. 
  3. Eliminate the penalties imposed on surplus raw materials that were not used in production, paying customs duties on the surplus should suffice.
  4. In collaboration with the Industrial Control Authority, simplify and facilitate the setting of input and output coefficients the waste percentages, and fix the rates to ensure fair treatment among exporters.

Responsible Entities

Date 3/21/2019

Customs Procedures

Responsible Entities

Date 3/21/2019