Tripoli Chamber rejects Finance Minister’s defence of ECTN system

By Sami Zaptia.

Tripoli Chamber of Commerce has rejected the Finance Minister’s justification for introducing the ECTN system (Photo: ECTN.com).

London, 26 February 2021:

The Tripoli Chamber of Commerce, Industry and Agriculture rejected the explanations and justifications by Acing Finance Minister, Faraj Bumtari, for introducing the Electronic Cargo Tracking Note (ECTN) system.

The Minister [restrict paid=”true”] had been defending his decision on a live Libyan TV programme on Wednesday night. It came in reaction to a demonstration held opposite Tripoli Port by chambers, customs clearers, shipping agents and small businesses.

The main defence by the Minister of the system was that it prevented corruption and the waste of Libya’s fast depleting hard currency by fraudulent import transactions whereby undervalued goods were imported to transfer hard currency abroad.

Customs Authority postpones enforcement of ACI / ECTN cargo registration and tracking system

Opposition growing to ‘arbitrary’ introduction of ACI / ECTN tracking preregistration of container cargo to Libya

The Audit Bureau has made some revelations about the 40-container hard currency LC fraud case of 2017 (Photo: Audit Bureau).

His response to the questionable process by which the contract was awarded to a Turkish company and the excessive prices it is charging Libyan importers, was deemed weak by the Chamber. [/restrict]

40 containers were discovered at Benghazi port with underpriced goods as part of an LC fraud in 2017 (LANA).

Some of the LC fraud containers seized by Khoms police in 2016 were empty (Source: Khoms police Counter Crime Unit).

It will be recalled that the demonstrators complained that the real stakeholders were not consulted on the introduction of the ECTN system.

They stressed that it will hurt the poorer people in society most, increasing prices by anything from 15-25 percent and that its introduction has led to the blockage of goods in ports accruing fines to be paid in hard currency.

The demonstrators had announced five demands:

Stop the ECTN system immediately.
Release all goods currently blocked in Libyan ports.
The Ministry of Finance (the parent of the Customs Authority) must bear the port charges incurred due to ECTN delay.
A local system should be introduced to replace ECTN.
The government has 5 days to agree to these demands or there will be a strike by stakeholders.

Its unclear now whether the Chamber will indeed go ahead with its threatened strike.

Audit Bureau to review Libya’s ECTN contract with Turkey’s SCK – committee formed to make proposals | (libyaherald.com)

Demonstration in front of Tripoli port against ECTN – demonstrators give government a week to meet their 5 demands or they will go on strike | (libyaherald.com)

Call by Chambers of Commerce and Shipping to postpone or cancel use of ECTN | (libyaherald.com)

Electronic Cargo Tracking (ECTN) of shipments to be activated in Libya | (libyaherald.com)

Electronic Tracking system for imported goods goes into operation | (libyaherald.com)

Audit Bureau refers those behind 40 empty container hard currency fraud case | (libyaherald.com)

40 containers in US$ 8 million LC fraud discovered at Benghazi port | (libyaherald.com)

More Khoms Port containers seized in LC financial corruption | (libyaherald.com)