Basic information
Outline of the system
The list of products covered under Lesotho's Import Licensing/Import Permit system has been specified in the "Import Restrictions (Amendment) Regulations, 2009". This regulation also stipulates the relevant authorities responsible for managing the licensing process of each product. The import licensing system generally requires an importer to first approach the relevant issuing authority to be guided on the specific application material required for importation of the specified product. Once the necessary documentation has been procured, the importer presents these along with a completed application form to the issuing authority for consideration. The documentation is then reviewed against the administrative requirements and within the timeline specified by the issuing authority for import of the specified product. An import permit is issued once the approval process is complete. Applied terminology varies by institution with some issuing "import permits" while other issue "import licences".
The importer lodges an application through any authorized dealers of gold and foreign exchange. This application is forwarded by the authorized dealer to the Central Bank of Lesotho for further review and approval. Applications are considered by the department of supervision within the Central Bank of Lesotho and decisions are made within 2-3 working days. Once approval has been granted by the Central Bank of Lesotho, the authorized dealer, in consultation with the importer, issues a letter of approval for the transaction.
Authorized dealers include the three major banking institutions (Nedbank, First National Bank and Standard Lesotho Bank) and approved foreign exchange bureau.
Product coverage
Permits are required for bank notes, gold securities or foreign currency.
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
The licensing system is not intended to restrict the quantity or value of imports of gold securities or bank notes but rather to monitor with the intent to preserve foreign exchange and gold reserves as well as to control for illegal activities like money-laundering.
Questions for products under restriction as to the quantity or value of imports
Not applicable.
The system applies to products originating from which country?
The system applies to goods originating in and coming from all countries.
Expected duration of licensing procedure
Legal requirements
Is the licensing statutorily required?
The licensing is statutorily required. The permit system is maintained in accordance with the following laws: import restrictions (Amendment) Regulation, 2009, and the Exchange Control Regulations, 1989.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
The legislation does not leave designation of products subject to licensing to administrative discretion.
Is it possible for the government to abolish the system without legislative approval?
It is not possible for the Central Bank of Lesotho to abolish the system without legislative approval; but, improvements of the system are possible.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
Only individuals with good legal standing and recognized qualifications in dealing with foreign currency are eligible to apply.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Address
Telephone
Fax
E-mail address
Website
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Central Bank of Lesotho
Documentation requirements
What information is required in applications?
A sample application form is required.
What documents is the importer required to supply with the application?
Additional documentation includes an invoice indicating the origin and amount of bank notes or gold securities to be imported into Lesotho.
Window of submission of an application
How far in advance of importation must application for a licence be made?
A time frame is not legally specified but all applications must be made prior to intended date of importation.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
There are no limitations as to the period of the year during which application for an import permit may be made.
Issuing the license
Can a licence be granted immediately on request?
It takes 2-3 working days to approve an application for a licence to import gold securities or bank notes.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Which administrative body is responsible for approving application of licences?
The consideration of import permit applications is effected the authorized dealer and the Central Bank of Lesotho.
Must the applications be passed on to other organs for visa, note or approval?
Are there any other conditions attached to the issue of a licence?
There are no other conditions attached to the issuance of a permit.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
There is no fee administered by the Central Bank of Lesotho; however, fees are applied by the authorized dealer.
What is the amount of the fee or charge?
Is there any deposit or advance payment required associated with the issue of licences?
There is no deposit or advance payment requirement.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
Permits are not granted on the basis that the applicant did not meet requirements or presented falsified information.
Are the reasons for any refusal given to applicants?
Reasons for refusal are given to the applicant in writing.
Have applicants a right of appeal in the event of refusal to issue a licence?
The applicant can appeal the decision to the Governor of the Central Bank of Lesotho, and where there is no resolution, a further appeal can be lodged with the Minister of Finance and Development Planning who is the final decision maker.
If so, to what bodies and under what procedures?
The applicant can appeal the decision to the Governor of the Central Bank of Lesotho, and where there is no resolution, a further appeal can be lodged with the Minister of Finance and Development Planning who is the final decision maker.
Importation
Are there any limitations as to the period of year during which importation may be made?
What documents are required upon actual importation?
Documents required upon actual importation include: Letter from authorized dealer authorizing sale transaction.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no other administrative procedures.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
All approvals by the Central Bank of Lesotho are valid for a period of 90 days and the validity can be extended.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
There are no penalties for the non-utilisation.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Authorizations are not transferable.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Foreign exchange is automatically provided by the banking authorities for goods to be imported if other administrative procedures required are fulfilled.
Is a licence required as a condition to obtaining foreign exchange?
Licences are not required as a condition to obtaining foreign exchange.
Is foreign exchange always available to cover licences issued?
What formalities must be fulfilled for obtaining the foreign exchange?
Formalities to be fulfilled to obtain the foreign exchange include the presentation of identification document, proof of sufficient funds in bank account, and a Pro-Forma Invoice.