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Trade Regulations
Import/Export
All imports and exports to and from Somaliland require permits from the Ministry of Commerce Industry and Tourism which are normally issued within a short time when applied.
Customs and Excise
The Somaliland Customs Tariff makes use of both specific and ad valorem duty rates. Ad valorem duties range from 3% to 70%. The average duty is being approximately 30%. High rates apply primarily to nonessential or luxury items such as Kat, Cigarettes, Perfumes and Electronics etc.
Harbor Tax
A wharf-age fee or due is charged on all goods entering or leaving Somaliland through all Maritime Ports at the rate of 3% ad valorem. This charges for services rendered is payable on all goods imported or exported with the exception of the following:
a. Objects belonging to a Foreign Sovereign or Head of State who is on a visit to Somaliland on a basis of reciprocity.
b. Travelers’ personal belongings.
c. Samples of goods provided - which are not directly utilizable.
d. Goods imported by government.
e. Artificial limbs and invalid wheel chairs.
f. Material to be used exclusively for aid purposes.
g. Wreathes and Ornaments for graves in Somaliland.
Exports:
1. Travelers’ Personal Belongs.
2. Coffins and Urns containing remains of deceased persons to be sent abroad.
3. Coastal Trade and Transshipments are subject to the payment of wharf-age charges once only and at the point of loading.
Temporary Imports:
Goods in transit or otherwise imported on a temporary basis, with the permission of the Director of the Customs Department and not for sale, may enter Somaliland without payment of duty – provided
1. Such goods are re-exported within three months of the date of the granting of permission for entry, and
2. The persons to whom permission is given either deposit the amount of the duty on such goods or give security thereof for the satisfaction of the Director of Customs Department. The Director may for sufficient reason extend the length of time for which the goods may remain temporarily in the county. Temporary importation of motor vehicle allowed under the Customs Law provided that:
Motor vehicles imported temporarily are not to be sold or otherwise disposed of in Somaliland without prior payment of Customs Duties.
Method of Duty Payment:
Duties are stated and payable in Somaliland Shillings. If the taxable value stated on the invoice of shipment is not indicated in Somaliland currency, the conversion shall be effected at the official exchange rate in force and adopted by the customs authorities.
Shipping Documents:
The documents required for shipments to Somaliland are:
1. The Commercial Invoice in triplicate which must contain all necessary information to establish the Cost, Insurance & Freight (CIF) value of goods.
2. A bill of Lading or Airway Bill.
3. In certain instances, health and other special certificates.
The required shipping documents should not accompany ocean freight ships, but should be forwarded by airline to ensure their reaching the consignee prior to the arrival of the goods. For shipments by the air cargo, the shipping documents may either accompany the goods or be attached to the consignment notes.
The net weight in kilograms must be shown on the invoices or papers accompanying any shipment of goods to Somaliland. In addition, the quantity of individual commodities should be indicated in units of measures commonly associated with those goods i.e the quantity of oil in liters, tractors in units etc.17
Commercial Invoice:
A Commercial Invoice must be submitted in duplicate to the customs authorities and must contain all the information necessary to establish the CIF value of the goods. The Importer is required to sign the invoice certifying as to its accuracy and assuming responsibility for its contents.
Packing Lists:
Packing lists, while not required may expedite customs clearance of goods especially when consignment consists of miscellaneous products. Packing Lists should contain the marks and numbers of packages, weight (gross and net) of each package and careful description of each package and lists contents.
Importation of plants, seeds animals and animal products must be accompanied by a health certificate from the exporting country and are subject to inspection at the Port of entry. A certificate of fumigation is required for the importation of used clothing for resale. A health certificate must accompany imports of fresh foodstuff from the exporting country.
All imported and exported goods must normally be cleared. Duty and Tax must be paid at customs of import or export but exceptional arrangement can be made subject to the lodging of security for goods to be cleared at customs other than those of import or export.
Licensed clearing agents are available at the major customs houses such as Berbera and Zaila and on payment of their charges arrange for the clearance and forwarding of goods. Owners of goods must make their own arrangements for such services.
Customs working hours are laid down by law – hours of working cargo and passengers are 7:00AM to 2:00PM except on Fridays and Holidays. Arrangement exists for the provision of special services on non-working days and outside prescribed hours on payment of overtime charges. The customs offices are normally opened for the clearance of goods from 8:00AM to 1:00PM. Only but these hours may be varied at individual customs hours may varied at individual customs offices to suit local conditions. Special arrangements can be made by the director of customs department on payment of overtime charges to work outside these hours.
Airports – customs facilities are available for the clearance of aircraft, the handling of goods and passengers at all hours during which the airport is open for traffic.
Arrival of Goods and Storage Facilities:
All goods for import and export must in the first place be delivered into a customs area for examination, assessment and clearance formalities. Covered storage is available at all large ports except for dangerous or offensive cargo (at all ports and airports).18
Declaration of Entries:
Entries are declared in English on the prescribed form and are available at Berbera Port.
In Alkyl declarations – the nature and the kind of goods in each package including the nature of the materials of which they are composed must be shown.
The weight measurement of the goods, gross and net in kilograms or meters of each package and the total for the consignment or the quantity or measurement in the case of loose goods shall be declared.
In the case of imported goods, the country of origin, that is, the country in which the goods were produced or manufactured must be declared. Where goods have been shipped from a country other than the country of origin – both must be declared. In respect to export, the name of the place, country and final destination shall be indicated in the entries.
The export duty on goods subject to ad valorem is calculated at the current value in the domestic market of purchase plus transport, commission, storage etc. up to clearance customs at the port of exit.
For imported goods liable to ad valorem duties the value for duty purpose is calculated at the CIF value. Declaration with regard to motor vehicles imported or exported must show:
Documents:
With every declaration there must be presented:
1. The manufacturer’s invoice in duplicate. All invoices must be certificates as being true and correct and the certification signed by the person making it.
2. The invoice of freight charge, incurred from the port of shipment to the port of entry into Somaliland – signed and certified as a true and correct account of the charges paid.
3. The invoice for all insurance charges paid on the goods – signed and certified as a true and correct account of the amount paid.
Examination:
All goods are subject to examination while under the control of customs and especially at the time of clearance. The examination is made by a customs office in the presence of the owner or his appointed agent who is responsible for the production of the package and/or their opening and closing. The customs may require small representative samples of goods for the purpose of valuation, classification or analysis.
The rate of duty on motorcars varies according to the cylinder capacity and in declarations of the cylinder capacity in cubic centimeters (cc) must be shown. Invoice for motorcars should therefore contain sufficient detail to enable the vehicle to be properly declared and classified under the appropriated items.
Import/Export License:
Legal Documents required for issuance of Import/Export License
For Individual Business:
Identity Card (For Nationals)
Passport Photocopy (For Foreign Residents)
2 Passport Size Photos
Penal Certificate issued by the Attorney General’s Office.
License Fee
Tax Clearance Certificate from the Land Revenue Office.
SL. Chamber of Commerce Registration.
For Corporate Business:
Certificate of Registration of the company issued by the Attorney General’s Office.
Memorandum and Articles of Association of the Company.
2 Passport Size Photos for the Chairman of the Company.
License Fee
Tax Clearance Certificate from the Land Revenue Office.
SL. Chamber of Commerce Registration.