1. Customs Modernisation Programme Lesotho Traders

2. Presentation Purpose To explain the Customs Modernisation Programme – Background and basis for changes – Trade impact – The programme technically – Implementation

3. Basis of CMP GOALS – To increase the revenue collection – To reduce the cost of collection – To reduce the costs for Border Users The adoption of international and regional Standards for revenue Collection and trade facilitation. – WCO - Revised Kyoto Convention – WTO - Agreement on Trade Facilitation – SACU

4. Basis of CMP Overall LRA Strategy – To provide consistent and transparent procedures for trade – to maximise revenue and provide service to Stakeholders – to adopt a transparent Single Trader Approach – encourage and provide benefits for compliant trade – to protect legitimate trade – to make extensive use of computerisation and modern technology

5. The Programme Specifically to reduce the costs for border users through: The computerization of all appropriate import, export and payment/accounting. WTO The simplification of procedures, systems and documentation. WCO/WTO The establishment of a transparent trade portal. WTO The introduction of an effective guarantee system. WCO/WTO The adoption of risk management. WTO

6. The Programme The introduction of advanced information. WCO/WTO The introduction of a preferred trader scheme. WCO/WTO The deployment of non intrusive inspection Scanners WTO To maximize the commonality of procedures with those proposed by the Southern African Customs Union (SACU) and South Africa Revenue Service (SARS) SACU

7. The Programme Established September 2012 Phase 1 – research and development Phase 2.1 Development Phase 2.2 Implementation Preparation Phase 3.1 Implementation of basic procedures Phase 3.2 Implementation of advance procedures Completion by April 2016

8. Programme Developments Launch of the Lesotho Business Partnership 2012 Launch of the Lesotho Trade Portal 2014 Pilot Preferred Trader Scheme (ended March 2014)

9. New Procedures Requirements The electronic submission of all commercial declarations The electronic submission of supporting documentation Advanced information required before arrival of consignments Electronic management of deferment accounts Segregation of clearance and inspection Application of administrative penalties

10. New Procedural Outcomes/Benefits for Trade Intra SACU/extra SACU clearance at point of entry Consistent transparent procedures Advanced Clearance Immediate release on arrival Electronic management of queries

11. Future Developments The introduction of advanced procedures (From July 2015) Review of all deferment accounts Introduction of bank guarantees Expanding payment methodologies and reducing cash handling at frontiers Move to single clearance centre and closure of state warehouse as clearance centre. Introduction of inland clearance Extending the Preferred Trader Scheme Introduction of new non-commercial procedures

12. Moving forward Pilot at Maputsoe Bridge Roll out to Maseru region by April 2015 Move to central clearance by September 2015 Introduction of advanced procedures, from July 2015

13. Immediate activity Communications Programme for Trade from 6.5.2014 Completion of Trader registration (TIN) Registration of importers and exporters for ASYCUDA World from 1.6.2014 (Initial priority Maputsoe Bridge) Trader education programme from 1.6.2014 Connection of users to ASYCUDA World Pilot at Maputsoe Bridge

14. Follow developments and more information on: THE LESOTHO TRADE PORTAL w ww.lesothotradeportal.org.ls