Liberia - Import TariffsLiberia - Import Tariffs
The Liberia Revenue Code of 2000 (as amended in 2011) provides the legal and regulatory basis for customs duties and standards. The Liberia Revenue Authority (LRA) is a semi-autonomous agency whose core mandate is to administer and enforce the Revenue Code and other related tax laws. Imports are subject to tariff duties which vary according to product types, categories, volumes, etc., and constitute a major source of government income. Import duties are specific (based on volume) for some commodities, and ad valorem (based on cost, insurance, and freight value) for others. Specific duties apply to food, beverages, petroleum products, and certain rubber products. The cost of equipment and machinery used in the year the asset is placed into service is eligible for a tax deduction of up to 30 percent of the cost of the equipment. The construction cost of a new hotel or a tourist resort is eligible for a tax deduction of up to 30 percent of the cost of the investment.
Additionally, the cost of buildings or fixtures used to manufacture finished products containing at least 60 percent local raw materials is eligible for a tax deduction of up to 10 percent. Machinery, equipment, raw materials, semi-finished products, and other supplies to be used in tourism sector construction projects are exempted from import duty up to 90 percent of their dutiable value. Manufactured goods exported from the production of tourism sector projects are entitled to a full rebate on import duties and a full refund of income tax and excise tax. In 2010, Economic Community of West African States (ECOWAS) introduced a Value Added Tax (VAT) into Liberia’s tax system to ensure consistency in both external and domestic taxation and harmonization with other West African countries. Liberia is currently using a single-stage Goods and Services Tax (GST) which is imposed at the manufacturing stage and on a number of services specifically listed in the Revenue Code. The GST is levied at seven to 10 percent except for communications services, which is levied at 15 percent.
Although VAT is not applied in Liberia, the LRA is planning to introduce it. Contact the LRA for specific categories of duties or tariffs. The government has not finalized technical and policy preparations to implement the common tariff regime of the ECOWAS. The Liberian government is in the process of transitioning its tax system to adopt the ECOWAS Common External Tariff (CET). This will pave the way for Liberia to join other ECOWAS countries in establishing a common customs union, making trade and commerce easier within the ECOWAS sub-region. Liberia will have to significantly adjust its tariff schedule as it shifts to the CET, including harmonizing policies on the waivers that currently allow imports of essential goods (e.g. rice, cement) at zero tariff rates. Migrating to the CET and removing tariff waivers will significantly impact the economy’s average tariff. Check more details on customs procedures. Refer to the LRA’s revised customs tariff for more detail.
Liberia Tariff Rate Quotas Import Duties