DEPARTMENT OF REVENUE MINISTRY OF FINANCE TAX AWARENESS ROAD SHOW - PowerPoint PPT Presentation

DEPARTMENT OF REVENUE MINISTRY OF FINANCE TAX AWARENESS ROAD SHOW ATLANTA, GEORGIA JUNE 9, 2011 BUREAU OF CUSTOMS AND EXCISE PRESENTED BY: DECONTEE T. KING-SACKIE, COMMISSIONER OF CUSTOMS AND EXCISE

TABLE OF CONTENT  OVERVIEW OF CUSTOMS MODERNIZATION  SUMMARY OF QUICK WIN ACHIEVEMENTS  MODERNIZATION PROJECT & STRATEGIC PLAN  MODERNIZATION PILLARS  AUTOMATION  TRAINING, COMMUNICATION AND CHANGE MANAGEMENT  POLICY AND LEGISLATION  INFRASTRUCTURE  CUSTOMS CLEARANCE PROCESS, PROCEDURE AND DOCUMENT REQUIREMENT  IMPORTS  EXPORTS  TRANSIT/TRANSSHIPMENT  DUTYFREE

OVERVIEW OF CUSTOMS MODERNIZATION 2007  THE MINISTRY OF FINANCE BEGUN THE MODERNIZATION OF CUSTOMS WITH THE ESTABLISHMENT OF THE FOLLOWING SECTIONS WITHIN CUSTOMS ADMINISTRATIVE STRUCTURE:  MODERNIZATION COORDINATION OFFICE HEADED BY A COORDINATOR  ANTI-SMUGGLING DIVISION – TO COMBAT CUSTOMS FRAUD  POST CLEARANCE AUDIT – TO REDUCE TO FRONT END INTERVENTION BY CUSTOMS BUT STILL MAINTAINING CONTROL AND COMPLIANCE LEVEL OF TAXPAYER

MODERNIZATION OVERVIEW CONT’D 2008  THROUGH ASSISTANCE FROM THE INTERNATIONAL FINANCE CORPORATION (IFC) COMMENCED PARTICIPATION IN THE WORLD BANK ANNUAL DOING BUSINESS SURVEY THOUGH THE FORMATION OF A TRADE ACROSS BORDER WORKING GROUP INITIATIVE  LIBERIA REACTIVATED ITS MEMBERSHIP WITH THE WCO AND RESTRUCTURE ITS OUTSTANDING OBLIGATION WHILE PAYING ITS CURRENT MEMBERSHIP DUE THEREBY MAKING IT ELIGIBLE FOR TECHNICAL ASSISTANCE

MODERNIZATION OVERVIEW CONT’D 2009 WITH SUPPORT FROM THE EUROPEAN UNION, A BENCHMARK STUDY OF THE  CUSTOMS CODE WAS CONDUCTED AND THE FINDINGS OF THE REPORT RECOMMENDED THAT THE CODE NEEDED TO BE REDRAFTED TO BRING IN LINE WITH INTERNATIONAL AND REGIONAL BEST PRACTICE WCO CONDUCTED A DIAGNOSTIC MISSION OF THE BUREAU OF CUSTOMS AND SOME  SUMMARY OF ITS FINDINGS INCLUDED:  THE NEED FOR LIBERIA TO ACCEDE TO EXISTING INTERNATIONAL CONVENTIONS TO INCLUDE THE  HARMONIZE SYSTEM CONVENTION  REVISED KYOTO CONVENTION (SIMPLIFICATION AND HARMONIZATION OF CUSTOMS  SAFE FRAMEWORK OF STANDARDS  ARUSHA DECLARATION AND  JOHANNESBURG CONVENTION OF MUTUAL ADMINISTRATIVE ASSISTANCE (MAA)  THE DEVELOPMENT OF A STRATEGIC PLAN FOR CUSTOMS MODERNIZATION

MODERNIZATION OVERVIEW CONT’D 2009  BUREAU OF CUSTOMS AND EXCISE WITH ASSISTANCE FROM THE WCO DEVELOPED A THREE YEARS STRATEGIC PLAN (2010 – 2013) THIS STRATEGIC PLAN HAS ESTABLISHED THE REAL FOUNDATION FOR CUSTOMS REFORM AND MODERNIZATION EFFORTS TODAY

SUMMARY Y OF QU F QUICK K WI WIN ACHIEVEM EVEMENT ENTS ADMINISTRATIVE REFORMS  2009 (11 REFORMS) . .\..\..\Technical Assistance\IFC\TRADE ACROSS BORDERS WORKING GROUP\TRADE ACROSS THE BORDER\Reforms\Reforms 2008.doc  2010 ( 8 REFORMS) ..\..\..\Technical Assistance\IFC\TRADE ACROSS BORDERS WORKING GROUP\TRADE ACROSS THE BORDER\Reforms\Reforms2009.doc  LIBERIA WAS NAMED THE MOST REFORMING COUNTRY IN THAT YEAR’S REPORT  2011 (7 REFORMS)..\..\..\Technical Assistance\IFC\TRADE ACROSS BORDERS WORKING GROUP\TRADE ACROSS THE BORDER\Reforms\Reforms 2010.doc  TOTAL REFORMS EXCLUDING 2012 TO DATE SUMS TO (26 REFORMS)

STRATEGIC EGIC PL PLAN &M &MODERNIZA ERNIZATION TION PR PROJE OJECT CT  TO ENSURE THE IMPLEMENTATION OF THE THREE YEARS STRATEGIC PLAN DEVELOPED, WITH ASSISTANCE FROM THE IMF IN 2010, THE PLAN WAS DEVELOPED INTO A PROJECT WITH COSTING.  VISION : TO BE RECOGNIZED AS A PROFESSIONAL, EFFICIENCY, AND MODERN CUSTOMS SERVICE WHICH CONTRIBUTES TO ECONOMIC GROWTH AND THE ADVANCEMENT OF SOCIAL WELFARE OF LIBERIA  MISSION : T O ENHANCE REVENUE COLLECTIONS, FACILITATE LEGITIMATE TRADE, PROTECT THE ECONOMY AND THE ENVIRONMENT BY ADHERING TO MODERN CUSTOMS STANDARDS AND PROCEDURES AND BE A REPOSITORY OF TRADE STATISTICAL DATA .

STRATEGIC OBJECTIVES  MODERN STRATEGIC MANAGEMENT  HUMAN RESOURCE MANAGEMENT  COMPLIANT TRADE AND BORDER MANAGEMENT  TRADE SECURITY, RISK MANAGEMENT AND ENFORCEMENT  ESTABLISHMENT OF EFFECTIVE CUSTOMS TO CUSTOMS – AND CUSTOMS TO BUSINESS COMMUNICATION

MODERNIZATION PILLARS  THE STRATEGIC OBJECTIVES ARE BEING IMPLEMENTED AND ACHIEVED THROUGH FOUR THEMATIC PILLARS, NAMELY:  AUTOMATION  TRAINING, COMMUNICATION AND CHANGE MANAGEMENT  POLICY AND LEGISLATION  INFRASTRUCTURE

AUTOMATION 2009  THROUGH DIRECT BUDGET SUPPORT FROM ADB TO GOL, UNCTAD WAS CONTRACTED TO PROVIDE THE ASYCUDAWORLD SOFTWARE  FREEPORT OF MONROVIA, THE PILOT SITE WENT LIVE ON NOV . 2, 2009 JUST BARELY 4 MONTHS AFTER THE SYSTEM WAS FIRST INTRODUCED  THERE ARE NOW 2 PORTS (LPRC) OPERATING THE ASYCUDA. THE THIRD PORT – RIA – IS EXPECTED TO GO LIVE BEFORE JUNE 30, 2011  THE PLAN OF THE GOVERNMENT IS TO ROLL OUT THE SYSTEM TO THE REMAINING CUSTOMS 15 PORTS OVER THE NEXT TWO YEARS

TRAINING, CHANGE MANAGEMENT & COMMUNICATION  BUILDING THE CAPACITY OF CUSTOMS STAFF AND THE TRADING PUBLIC IS THE KEY CRITICAL TO IMPLEMENTING AND SUSTAINING THE REFORM AND MODERNIZATION PROJECT  A TRAINING STRATEGY HAS BEEN DEVELOPED  A THREE YEARS TRAINING PLAN HAS BEEN DEVELOPED  A FOUR TIER INTEGRATED TRAINING FRAMEWORK (MODULES) FOR CUSTOMS AND THE TRADE IS CURRENTLY UNDERDEVELOPMENT TO ADDRESS TRAINING AT INTRODUCTORY, MIDDLE, SPECIALIST AND SENIOR LEVELS WITHIN THE BCE Our Integrated Training Framework.docx  REGARDING COMMUNICATION – A PERIODIC STAKEHOLDER ENGAGEMENT IS CONDUCTED AND THE STRATEGY UNDERPINNING THAT WAS DEVELOPED IN CUSTOMS CONSULTATIVE COUNCIL STRATEGY  A CUSTOMS INFORMATION HANDBOOK HAS BEEN DEVELOPED AND IS TO BE POSTED ON THE MOF/REVENUE DEPARTMENT WEBSITE..\Brochures\Customs Information Brochure.docx

POLICY AND LEGISLATION  AS A RESULT OF THE BENCHMARK STUDY, DIAGNOSTIC STUDY AND STRATEGIC PLAN, THE BELOW LISTED ACTIVITIES HAVE BEEN AND ARE STILL BEING CONDUCTED  LIBERIA ACCEDED TO THE WCO HARMONIZE SYSTEM FOR THE CLASSIFICATION AND CODING OF COMMODITY (2007) VERSION  LIBERIA IS CURRENTLY TRANSITIONING ITS TARIFF TO THE WCO 2012 VERSION THAT IS EXPECTED TO GO INTO EFFECT ON JANUARY 1, 2012  THE CUSTOMS CODE IS CURRENTLY BEING REVISED WITH PLANS OF PRESENTING IT TO THE CABINET FOR APPROVAL BEFORE JUNE 20, 2011

POLICY AND LEGISLATION (CONT’D)  2010  LIBERIA ACCEDED TO THE WCO HARMONIZE SYSTEM (HS) OF CLASSIFICATION AND CODING AND BECAME ITS 138 TH MEMBER  LIBERIA COMMENCED WITH SUPPORT OF THE IFC, THE REDRAFTING OF THE CUSTOMS CODE IN LINE WITH INTERNATIONAL AND REGIONAL BEST PRACTICE USING THE WCO REVISED KYOTO CONVENTION ON THE SIMPLIFICATION AND HARMONIZATION OF CUSTOMS PROCEDURES AS THE TECHNICAL GUIDE.

POLICY & LEGISLATION CONT’D 2011  LIBERIA ACCESSION TO THE RKC BY DEPOSITING ITS INSTRUMENT OF ACCESSION SUBJECT TO RATIFICATION TO THE SECRETARY GENERAL OF THE WCO .  THE RKC ENDEAVORS TO  PROMOTE INTERNATIONAL TRADE BY ESTABLISHING A UNIVERSAL SYSTEM OF SIMPLIFIED AND HARMONIZED CUSTOMS PROCEDURES;  CREATE BETTER UNDERSTANDING OF COMPLIANCE REQUIREMENTS LEADING TO INCREASED TRANSPARENCY AND PREDICTABILITY IN CUSTOMS PROCEDURES;  IMPACT POSITIVELY IN BORDER SECURITY AS IT PROMOTES THE SECURE MOVEMENT OF LEGITIMATE TRADE ACROSS THE GLOBE;  PREVENT THE PASSING OF NATIONAL LEGISLATION CONTRARY TO THE PRINCIPLES OF THE CONVENTION;  IMPLEMENT SPECIAL PROCEDURES FOR LOW-RISK IMPORTERS; AND  REDUCE THE TIME AND COST OF CLEARING CUSTOMS IN LIB

POLICY & LEGISLATION CONT’D  2011  THE REVISED CUSTOMS CODE TO BE SUBMITTED FOR CABINET’S ENDORSEMENT AND TO BE FORWARDED TO THE LEGISLATURE FOR ENACTMENT.  SOME KEY FEATURES OF THE REVISED CODE INCLUDE  CHANGE IN CUSTOMS VALUATION SYSTEM TO THE WTO GATT  PRE BINDING RULING  PROVISION OF SIMPLE AND CLEAR INFORMATION TO TRADE  PRE ARRIVAL CLEARANCE  NEW ADMINISTRATIVE PROTEST PROCEDURE  LEGAL BASIS FOR ELECTRONIC PROCESSING AND RECORD KEEPING

INFRASTRUCTURE  A THREE YEARS INFRASTRUCTURE STRATEGY HAS BEEN DEVELOPED AND COSTED TO IMPROVE CUSTOMS OPERATIONS. IF IMPLEMENTED WILL INCLUDE THE PROVISION OF  EXAMINATION SHEDS AND WAREHOUSE  VEHICLE AND EQUIPMENT  ENHANCING EXISTING STRUCTURES IN PREPARATION FOR AUTOMATION  NON INTRUSIVE INSPECTION (NII) REGIMES  TRACKING DEVICES

CUSTOMS CLEARANCE PROCESS, PROCEDURE AND DOCUMENT REQUIREMENT IMPORTS EXPORTS TRANSIT/TRANSSHIPMENT DUTYFREE

CUSTOMS CLEARANCE PROCESS GENERAL INFORMATION  ALL SHIPMENT TO LIBERIA ABOVE US$3,500 IS SUBJECT TO PRE-SHIPMENT INSPECTION  PSI FEES IS 1.2% OF FOB OR US$190 WHICH EVER IS HIGHER  IMPORT PERMIT IS REQUIRED FOR RESTRICTED NUMBER OF ITEMS..\..\..\Ministry of Commerce\IPD Administrative Notice 2[1].pdf  BIVAC’s PROCEDURE FOR IPD FILE, NON IPD FILE AND COMPLAINTS PROCEDURES

CUSTOMS CLEARANCE PROCESS CONT’D  DOCUMENT REQUIRED..\..\Administrative Regulations\2011 Regulations\REquired Documents.pdf  IMPORT GENUINE COMMERCIAL INVOICE 1. BILL OF LADING/AIRWAY BILL 2. CUSTOMS DECLARATION (SAD) 3. INSPECTION REPORT (CRF) 4. IMPORT PERMIT (WHERE APPLICABLE) 5.  EXPORT GENUINE COMMERCIAL INVOICE 1. CARGO ACCEPTANCE 2. CUSTOMS DECLARATION 3. EXPORT PERMIT (WHERE APPLICABLE) 4.

CUSTOMS CLEARANCE PROCESS CONT’D IMPORT PROCESS FLOWCHART

CUSTOMS CLEARANCE PROCESS CONT’D EXPORT PROCESS FLOWCHART

CUSTOMS CLEARANCE PROCESS CONT’D TRANSIT PROCESS FLOWCHART

CUSTOMS CLEARANCE PROCEDURE CONT’D DUTY FREE PROCEDURE AND REQUIREMENT ..\..\Duty Free\Brochure\df final 1.pdf