Lesotho Customs Import and Export Taxes

Summary:

The article outlines Lesotho's customs regulations as a member of the Southern African Customs Union (SACU), detailing preferential tariffs between member states, the ad valorem basis for customs duties, valuation methods, import tax policies, anti-dumping and countervailing duties, customs drawback procedures, and regulations for bonded warehouses.

Customs Administration Regulations

As a member of the Southern African Customs Union (SACU), Lesotho's customs supervision work is coordinated with South African Customs. The two parties have signed a joint cooperation agreement and cooperate with South African Customs to implement customs supervision systems. When goods are transshipped from South African Customs to Lesotho, the relevant customs regulations of the two parties on customs duties, anti-dumping regulations, and non-tariff barriers are consistent.

Lesotho's customs tariff system implements the provisions of the

Southern African Customs Union, and the specific content is as follows:

[Preferential Tariffs] Member States of the Southern African Customs Union do not levy import duties on goods imported and exported between each other. Member States levy uniform import duties on goods imported from outside the Customs Union, and import duties are levied at the first port of arrival of imported goods.
[Customs Duties] Customs duties are levied on an ad valorem basis. Customs values goods based on the transaction value of the goods, which is the price actually paid by the importer for the goods plus the specific expenses and costs incurred. In addition, the following methods can also be used for valuation: transaction value of the same goods; deductive method; resale price; value calculated using production costs, profits and other expenditure parameters. Customs valuation can be based on FOB price or CIF price. The average tariff rate is 12%.
Lesotho's current customs law was promulgated in 1982 and was partially amended in 1988. Lesotho is a member of the Southern African Customs Union and its import tariffs are the same as those of other member states. According to the Lesotho Customs Law, imported goods are taxed at different rates according to different categories of goods. Investors who invest and set up factories in Lesotho are exempt from customs duties on production equipment and raw materials.
[Customs Surcharge] In addition to customs duties, most imported goods are also subject to a 15% value-added tax (VAT). However, if the imported goods are for processing and then re-export, the additional VAT can be exempted.
[Anti-dumping and Countervailing Duties] When the FOB price of imported goods is lower than their domestic value, anti-dumping duties can be levied on the imported goods. Anti-dumping decisions are generally made by the South African Ministry of Trade and Industry, and Lesotho implements them accordingly.
[Customs Drawback] For imported goods processed for re-export, the method of first levy and then refund is adopted. That is, after the final processed products are exported, the producer can apply for a refund of the customs duties paid when the imported goods are imported. However, the producer must provide relevant documents to prove that the imported goods are for processing and re-export.
[Bonded Warehouses] For import processing enterprises, Lesotho allows the establishment of bonded warehouses. Import processing enterprises first store imported goods in bonded warehouses, and customs supervises them strictly. Customs duties are levied only when the goods enter domestic consumption.