Export Libya customs clearance requirements and transaction risk reminder

Export requirements and risk reminder for customs clearance in Libya

Libya is located in the northern part of Africa, along the coast of the Mediterranean Sea. Its main exports are petroleum, while its imports include food, food products, machinery, building materials, transportation equipment, electrical appliances, chemicals, and light industrial products.

1. Customs clearance document requirements

1) Commercial invoice

The invoice must indicate the details of the goods, including weight and unit, packaging method, transaction method, FOB value, freight/insurance (if CIF terms), and so on. Imports are generally transacted under C&F conditions, with the buyer handling the insurance.

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A legally binding price declaration must be signed and stamped with the company seal, stating the following: “We hereby declare that the actual or payable prices of the goods have been separately listed on our invoice, including all expenses.”

2) Certificate of origin

The certificate of origin must be issued by the competent authority of the importing country and certified by the Libyan embassy in that country. If the product contains a certain proportion of third-country product components, the country and proportion must be indicated. At the same time, the certificate of origin must indicate the list of Libyan import companies.

3) Bill of lading

The bill of lading must indicate the name, address, destination port, telephone number, and other information of the consignor.

4) Packing list

It should be emphasized that Chinese exporters are accustomed to indicating the contents of the packaging on the outer packaging, while ignoring this on the inner packaging. Libya has strict packaging and labeling requirements in this regard, and the contents of both large and small packaging must be indicated.

5) Manufacturer’s statement (1 copy)

The statement reads: “We hereby declare that the goods mentioned in the certificate of origin issued by the Chamber of Commerce were produced by ***.”

6) Blacklist certificate (1 copy)

A declaration must be made that the shipping vessel carrying the goods is not on the “Black List” and has not stopped at an Israeli port, with the following statement: “We declare the goods will not be sent by a ship which is included in the ‘Black List,’ and will be shipped to Libya without calling at any Israeli port.” It must be authenticated by the consulate.

7) ECTN Certificate

Starting in 2021, all goods shipped to Libyan ports (including Tripoli and other ports) or transiting through these ports to other destinations must apply for an ECTN certificate. Each bill of lading requires an ECTN certificate, and the ECTN number must be displayed on the bill of lading. An effective ECTN certificate must be provided during customs clearance at the destination port. Failure to provide one will be considered a violation of Libyan customs regulations, and the goods will not be able to clear customs normally and will be subject to high fines.

① Libyan ECTN Regulations

According to Libyan customs regulations, all goods shipped to Libya must be accompanied by an ECTN certificate.

The ECTN certificate must be verified no later than five days before the ship arrives.

Goods without an ECTN or with false information on the ECTN will be charged twice the certificate fee plus regulatory fees determined by Libyan port officials.

② Libyan ECTN Information

· Application Form

· Bill of Lading: A draft copy can be used for drafting.

· Commercial Invoice (Commercial invoices must be certified by the exporter’s chamber of commerce)

· Freight Invoice: Necessary if the freight is not included on the commercial invoice.

· Export Declaration – If it is not cross-trade, the detailed information for all documents must be the same.

· Certificate of Origin

· Statistical code for Libyan companies (Libyan company ID, VAT number, or business registration number)

③ Libyan ECTN Related Issues

· The ECTN number must be on the delivery note. We can verify the ECTN through a draft bill of lading.

· Commercial invoices certified by the relevant chamber of commerce in your country/region are acceptable. For cases where an invoice is not certified by the chamber of commerce, we need a letter explaining why.

· The certificate of origin issued by the supplier/shipper in the country of origin is sufficient.

· Customs clearance is also known as EX1 document/export declaration. And all pages of EX1 are required.

· If you are transporting vehicles, you need their manufacturing date, chassis number and weight.

· The HS code of the product needs to be provided.

· The statistical code of the Libyan company (importer’s registration code) is necessary.

· Only one ECTN number is required for a shipment.

8) Special Certificates

① For flour, a certificate is required stating that the country of production of the wheat is a member of the “International Wheat Agreement”.

② Phytosanitary certificates are required for plants or plant products.

③ For certain types of wine, a certificate of vintage is required.

④ Medical products and all drugs must have English instructions.

⑤ A disinfection certificate is required for used textiles.

2. Import Tariffs

Libya announced the abolition of all import tariffs on goods except tobacco and replaced them with a 4% import service fee on August 1, 2005. Many foreign traders believe that Libya has zero tariffs, but in reality, it has only replaced tariffs with the novel concept of import service fees. In addition, Libya imposes a 2% production tax and a 25% consumption tax on 83 types of imported goods. The import and consumption taxes on cigarettes are 2% and 4% respectively. Both production tax and consumption tax are collected by customs and still function as tariffs.

3. Special Requirements

1) The weight and size of the shipped goods must not exceed the following: Maximum size: 120*80*80cm, single item weight must not exceed 30KG, and single shipment weight must not exceed 240KG.

2) The country no longer accepts battery components with any packaging terms, including built-in batteries.

4. Special Note

1) Libya is a country with foreign exchange controls. The Libyan government has reiterated that since January 1st, 2007, all trade activities must be supervised by banks. Commodity transactions generally use 90-day letters of credit for payment and are mainly paid in euros and US dollars. Currently, there is no payment agreement between Bank of China and Libyan banks, and large amounts of money must be transferred through a third country. Due to the threat of terrorist activities in Libya, when trading with 2) Libya, it is recommended to use onshore prices instead of offshore prices for commercial transactions. The creditworthiness of the other party should be confirmed.

3) For the first transaction, the other party should be required to pay the full amount in advance or by front TT, or payment should be made through an irrevocable letter of credit to avoid receiving promissory notes that are payable upon presentation.

4) If you also have business dealings with Israel, then the Libyan market may not be suitable for you because Libya boycotts all business activities with Israel and prohibits foreign companies that have business relations with Israel from doing business with Libya. In addition, Libya has strict commercial protection measures, and imported goods must be through Libyan agents.

*The above content is compiled from the internet and is for reference only. Due to changes in national policies and customs requirements, it is recommended to communicate with the importer in advance to confirm the details. The copyright belongs to the original author, and any infringement will be deleted upon request.

If an enterprise encounters a Libyan customer who delays payment for more than three months and cannot recover the debt on its own, it can entrust a professional third-party organization to collect global debts as soon as possible. The business personnel of professional organizations are familiar with the local judicial and business environment and relationship networks, and have rich experience in debt collection, multiple debt collection channels, and a complete database, which can comprehensively analyze the credit status and repayment ability of overseas enterprises, and formulate the most suitable collection plan according to the characteristics of the debtors. At the same time, enterprises can also focus their time and energy on customers who pay bills on time.

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