The Tripoli based Ministry of Economy and Trade launched yesterday the preregistration and tracking system of imports it is labelling the ‘‘Unified Digital Trade System’’, part of the Libyan Trade Network, under the direct supervision of the Ministry.
Internationally the cargo preregistration and tracking system of imports is often referred to as the Advanced Cargo Information (ACI) or Electronic Cargo Tracking Note ECTN.
The Ministry called upon all suppliers and exporters of goods and merchandise to and from the Libyan market, as well as shipping and transport companies and maritime companies, to register in the system according to the approved mechanism.
The Economy Ministry said the system, which it refers to as the e-Trade Portal System (PTS), has been implemented at the Al-Khoms seaport as a first phase of the project. It says the system enables the electronic exchange of shipping data and vessel arrival notifications, thereby reducing paperwork and expediting import and export operations.
In 2021 the Tripoli government had 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.
Previous launches abandoned
It will be recalled that the, or a system was first announced by the Tripoli based Finance Ministry in July 2020.
In February 2021 Libya’s Customs Authority had directed its various departments to start implementing the Electronic Cargo Tracking Note (ECTN) system as of 1 February.
However, in mid-February of the same year the Libya’s General Union of Chambers of Commerce, representing all the country’s chambers of commerce and shipping chambers, called for the system’s postponement or cancellation.
Business preference for UNCTAD’s ASYCUDA system
The Chambers proposed the use of the Automated System for Customs Data (ASYCUDA) system instead of the ECTN.
The Automated System for Customs Data World (ASYCUDA) is a computerized system designed by the United Nations Conference on Trade and Development (UNCTAD) to administer a country’s customs. It is the largest technical cooperation programme of the UNCTAD, covering over 80 countries and 4 regional projects.
UNCTAD’s aim was to build a computer system to assist customs authorities (or their local equivalents) all over the world to automate and control their core processes and obtain timely, accurate and valuable information to support government projections and planning.
On 21 February a demonstration was held at the entrance of Tripoli port. The demonstration was coordinated by the Tripoli Chamber of Commerce and included importers, customs brokers, shipping agents and truck drivers. They gave the government five days to release their goods stuck in ports or they would call a general strike.
In the same month the Audit Bureau announced it would be reviewing how the contract was assigned to a Turkish company. This stalled the introduction of the system.
The government attempted to introduce a new, alternative system, the www.aci.customs.gov.ly in 2024. However, continued opposition to the system and the threat of a shortage of goods and the impoverishment of small business meant the system was shelved using the Audit Bureau investigation as a pretext.
It is to be seen if the government will succeed in introducing any type of ACI/ECTN system to control cargo imports. Its problem is that it has not furnished a good ‘‘doing business’’ environment for small importers be it through smooth import processes or payments systems outside the bureaucratic letters of credit method.
Besides money-laundering, the main domestic driver behind the introduction of a system of monitoring imports is to counter the abuse of hard currency bank credits for imports. This abuse is not only wasting Libya’s finite hard currency but helping the corrupt smuggling of hard currency abroad in return for inferior quality / low priced imported goods or no imported goods at all.
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