Lesotho is proceeding with the adoption of an indigenised agent initiative that service providers responsible for exports into the mountain kingdom say constitutes a non-tariff barrier (NTB) that will impede trade within the Southern African Customs Union.
According to the new regulation, exporters trading with Lesotho will have to acquire the services of domestic cargo representatives.
Only once this process has been completed will exporters be issued with a Taxpayers’ Identification Number (TIN), allowing shipments from South Africa into Lesotho.
Although the initial implementation of the TIN regulation was set for last September, the freight industry was granted a compliance reprieve until December 31, which was again postponed to April.
“This time I don’t think they’re going to budge,” a logistics source said.
“They’re going ahead with it,” was his response to a letter circulated by Revenue Services Lesotho (RSL).
The letter, dated February 4, advises “all direct exporters to stop using SA-based sales, merchandising, and promotions agents (sic) as this is illegal”.
Last year when Freight News first reported on the matter, exporters were cautioned to apply for verifying internal agents through the Agents of Foreign Firms Association of Lesotho (Affal).
Stephen Segal, divisional director of clearing and forwarding at Value Logistics, said at the time that Affal “is very helpful and the process to apply for a TIN number is quite quick. But it’s the cost that will be a major barrier to trade.”
He added then that it was alarming how many logistics companies were not complying. It is understood that this is still the case.
Whereas initial integration with the Automated System for Customs Data contributed to TIN implementation delays, Asycuda issues have been sorted out and there is no longer any real reason why the indigenisation process should not be implemented.
RSL said that from April 1, “an Agent Code will become mandatory for all direct export declarations in RSL customs systems”.
“RSL will gladly assist with a list of all registered sales representative agents in Lesotho who are experienced, reputable and familiar with the local market and regulatory requirements.”
- Inquiries can be sent to: info@rsl.org.ls
