Opposition is growing to the quick and ‘‘arbitrary’’ introduction by Libya’s Customs Authority of the Advanced Cargo Information (ACI) tracking preregistration of container cargo to Libya (ECTN Electronic Cargo Tracking Note ECTN).
The opposition manifested itself in a protest by the merchants of the city of Misrata in front of the Attorney General’s Office today, against the recent decisions by the Customs Authority, which traders in Misrata described as arbitrary, as they are only applied in the ports of Misrata, Khoms and Tripoli. This will result in an increase in the prices of imported goods through these ports as it would increase the amount of duty paid, the protestors claimed.
Misrata Chamber of Commerce meeting
The demonstration followed on from an earlier meeting in the day of the head of Misrata Chamber of Commerce, Fathi Al-Amin Al-Turki, with businessmen and owners of companies exporting and importing goods, the Customs Brokers Syndicate and the Transport Association within the city.
Attendees reported that dissatisfaction was expressed with the arbitrary decisions without considering the rest of Libyan ports in the east of the country. This included not only the introduction of the ACI, which was considered to be problematic in its implementation, but also the newly introduced customs duty valuation method which used to be by cadastral valuation or by container – but now must be by piece instead.
Other matters
During the meeting, the difficulties facing the owners of car import companies, in addition to the decision of the Minister of Economy and Trade No. 362 / year 2024 regarding the regulation of trade activity in agricultural pesticides and public health and the high price of fertilizer, which will result in a rise in the prices of agricultural products, were also discussed.
The introduction of the ACI
it will be recalled that the Customs Authority recently mandated that the e-ACI is mandatory for import shipments to Libya.
Hence, starting from 1 November all container shipments (except for personal effects (individual consignees) to Libya must provide pre-registration of shipment details and comply with ACI regulations. Cargo gated in at the port of loading before this date is exempt from the ACI requirement. This system aims to identify high-risk cargo prior to its arrival in Libya and to streamline the release process at Libyan ports.
Under the new system, Libyan Customs requires both exporters and importers to register on www.aci.customs.gov.ly to obtain an ACI number, validated at least 48 hours before cargo loading at the Port of Loading.
Customers must provide the ACI number to the carrier via shipping instructions, and the carrier must include it on the Bill of Lading.
Customers are responsible for ensuring the ACI number’s accuracy and are liable for any misdeclarations.
The customer is also responsible for uploading the Bill of Lading, which includes the ACI number, into the ACI system for review and approval.
It is expected that leading shipping companies will enforce a strict “NO ACI Number – NO LOAD” policy starting from the implementation date.
An ACI Creation User Manual is available on the Libya Customs website at the following link: ACI-Creation-English-Version.pdf
When ACI was referred to as ECTN in 2020
It will be recalled however, and as reported on widely by Libya Herald at the time, the Tripoli based Libyan Finance Ministry had attempted to introduce the ACI system, then referred to as the Electronic Cargo Tracking Note (ECTN), back in July 2020. It had also reported that it had established its Advanced Operation Information Room.
Libya’s Customs Authority had directed its various departments to start implementing the ECTN system as of 1 February 2021.
The rationale for the ECTN
Explaining the rationale for introducing the ECTN, the Finance Ministry had said in July 2020 that the system is effective in tightening control over imports, in addition to being applied in many countries of the world.
It added that the system tracks and follows up on imported goods electronically to provide advance information about them, such as type, quantity, or source of goods, to combat forgery in documents attached to the customs declaration.
It also said the system contributes to the control of toxins and prohibited goods and provides more effective customs control. The system also helps combat corruption, falsified import documents, increases revenues and duties in support of the state budget, and allows the government to know the status and contents of all imported goods, and enhance overall oversight and transparency.
Objection then too to the system
On 14 February 2021, the Libya General Union of Chambers of Commerce, representing all of Libya’s chambers, as well as the Shipping Chamber, called on the Tripoli Finance Ministry to postpone or cancel the implementation of the ECTN.
A week later a small demonstration was held in front of the entrance of Tripoli port yesterday against the introduction of the system. The demonstration had been coordinated by the Tripoli Chamber of Commerce and included importers, customs brokers, shipping agents, truck drivers.
In the same week, Libya’s Tripoli based Audit Bureau announced that it was to review the ECTN contract between Turkish company, SCK, and the Tripoli Finance Ministry.
The revelation came after Tripoli Audit Bureau head, Khaled Shakshak, had held a meeting with Tripoli Acting Finance Minister at the time, Faraj Bumtari in Tripoli.
During the meeting, the Audit Bureau reported that its remarks on the contract between the Ministry of Finance and the Turkish Foreign Trade Company (SCK) to electronically track goods imported to Libya were discussed. The meeting also discussed the system’s working mechanisms and objectives.
Thereafter, the subject disappeared from the news until this month.
Audit Bureau to review contracting procedures of controversial ECTN (libyaherald.com)
ontroversial ECTN to continue operating: Customs Authority | (libyaherald.com)
Tripoli Chamber rejects Finance Minister’s defence of ECTN system | (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)
