Lesotho - Trade BarriersLesotho - Trade Barriers
According to the World Bank’s 2014 Doing Business Report, Lesotho ranked 147 out of 189 countries in the category “Trading Across Borders.” The report notes that it requires seven documents to export a product from Lesotho or to import a product into the country. On average, it takes 33 days to import goods into Lesotho, while it takes 31 days to exports goods out of Lesotho.
Foreign companies in Lesotho have cited protective tariffs, port congestion in South Africa, customs valuation above invoice prices, import permits, and inefficient bureaucracy as barriers to trade. Transporting goods to and from Lesotho represents a challenge for traders since Lesotho has no direct sea access and has a very small international airport. However, quality facilities are available in Durban, South Africa, and can be accessed by road and rail networks.
Regulatory barriers also exist; for instance, the Agricultural Marketing Act controls the importation of bread, legumes, sugar, eggs, meat, dairy products, fruits, and vegetables. With the exception of eggs, sugar, and legumes, import restrictions include provisions allowing for small consumer purchases made outside the country. The Department of Marketing, under the Ministry of Trade and Industry, monitors the level of production of these commodities and issues import licenses in the event of short supply. National production has never met local demand.
Non-automatic licenses apply to imports of used clothing and vehicles.
Foreign companies in Lesotho have cited protective tariffs, port congestion in South Africa, customs valuation above invoice prices, import permits, and inefficient bureaucracy as barriers to trade. Transporting goods to and from Lesotho represents a challenge for traders since Lesotho has no direct sea access and has a very small international airport. However, quality facilities are available in Durban, South Africa, and can be accessed by road and rail networks.
Regulatory barriers also exist; for instance, the Agricultural Marketing Act controls the importation of bread, legumes, sugar, eggs, meat, dairy products, fruits, and vegetables. With the exception of eggs, sugar, and legumes, import restrictions include provisions allowing for small consumer purchases made outside the country. The Department of Marketing, under the Ministry of Trade and Industry, monitors the level of production of these commodities and issues import licenses in the event of short supply. National production has never met local demand.
Non-automatic licenses apply to imports of used clothing and vehicles.
Import Requirements and Documentation
Importers are required to obtain licenses and import permits for restricted goods from the Ministry of Trade and Industry and Ministry of Agriculture. The Lesotho Revenue Authority’s Customs and Excise Department also requires that importers register with its office and obtain an importer’s code. Customs uses a Single Administrative Document (SAD) to facilitate the customs clearance of goods for importers, and cross-border traders. The SAD is a multi-purpose goods declaration form covering imports, cross border and transit movements. The following are required for shipments to Lesotho:- Bill of Lading.
- Bill of Entry (SAD Form).
- Certificate of Origin.
- A preferential certificate of origin is required when a foreign importer wishes to claim preferential rates of duty under a certain trade arrangement. The certificate must be in the format prescribed in the relevant trade arrangement.
- Four copies and one original commercial invoice. The invoices must have all data necessary for the importer to make a valid entry and for customs to determine value for duty purposes. Invoices from suppliers will not be accepted as satisfying the requirements of the customs regulations unless they state, in addition to any proprietary or trade name of the goods, a full description of their nature and characteristics together with such particulars as are required to assess the import duty and to compile statistics.
- Three copies of the packing list.
- Import licenses are required for restricted items. Importers must possess an import permit prior to the date of shipment. Failure to produce a required permit could result in the imposition of penalties. The permit is only valid in respect of the goods of the class and country specified. It is non-transferable and may only be used by the person to whom it was issued. Import permits are valid only for the calendar year in which they are issued. Import permits required for specific categories of restricted goods are obtainable from the OBFC.