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Country Commercial Guides for FY 2000: Senegal Report prepared by U.S. Embassy Dakar, released July 1999    Note*

CHAPTER VI. TRADE REGULATIONS AND STANDARDS

Trade Barriers, Including Tariffs, Non-Tariff Barriers, and Import Taxes

Effective January 1, 2000, Senegal put in place a new import tariff structure that conforms with common external tariff (CET) scheme agreed on by the member states of the West African Economic and Monetary Union (UEMOA). Under the new structure, Senegal lowered its top rate, setting its four product categories with tariff rates of 0, 5, 10, and 20 percent. Under this new regime, the government also eliminated a separate customs stamp tax of 5 percent, replacing it with a one percent "statistical fee." The new tariff regime includes the following product categories for the four tariff rates:

-- Category 1 (zero rate): social, cultural and scientific goods, agriculture inputs, capital goods and computer and data processing equipment not available through local production.

--Category 2 (5 percent): raw materials, crude oil, and cereals for industries.

--Category 3 (10 percent): semi-finished products, intermediate goods, other cereals, diesel and fuel oil.

--Category 4 (20 percent) goods for final consumption, capital goods and computer and data-processing equipment already available through local production, new and used vehicles.

Despite its simplified tariff structure, Senegal continues to maintain an array of other import taxes, some of which were also changed on January 1 to conform to the CET. In addition to the 1 percent "statistical fee", the CET calls for a 1 percent "community solidarity tax" (CST) to assist UEMOA member states suffering a revenue loss due to the CET. Other special tariffs are also applied under the CET regime to protect selected industries, although rates are lower in some cases and a five-year phase out period is supposed to apply. These special tariffs include the " taxe degressive de protection" and the "taxe conjoncturelle a l' importation". The taxe degressive de protection applied to finished products such as tobacco, matches, tomato paste, candies, batteries, powdered milk, candles, etc that are produced locally. With the exception of tobacco, the rate under the new regime dropped from 20 to 15 percent. The cyclical or seasonal tax called the "taxe conjoncturelle a l'importation" protects local production of vegetables, rice, onions, potatoes, etc with a 10 percent levy applied when world prices drop and threaten local producers.

Adding these various taxes to the new highest level import tariff yields a maximum combined tax rate of 52 percent. This is down from the previous high of 62 percent, representing a 16 percent drop in duties paid by imported of the affected products. On top of these duties, importers are also obliged to hand over the value-added tax (VAT) at the port of entry. Senegal is maintaining its 20 percent VAT rate until July 2000 when UEMOA is supposed to adopt a unified rate that, according to local sources, will be 18 percent.

Customs Valuation

Senegal is a contracting party to the WTO Agreement on Customs Valuation. The implementation scheduled for January 2000 has been delayed at the request of the Senegalese government.

The Government of Senegal has authorized the Swiss-based "Société Générale de Surveillance" (SGS) and the French-based "Bivac/Veritas" to conduct its pre-shipment inspection (PSI) program on a one year renewable contract. The PSI applies to all imported goods valued over CFA 3 million (USD 4,300), and importers may choose the company (SGS or Bivac) for import verification. The SGS or Veritas-approved value of such goods constitutes the basis for customs valuation. U.S. exporters are urged to contact the U.S. offices of SGS or Veritas to obtain the list of goods exempted from PSI.

Import Licenses

There is no restriction in import licenses. See also "Special Import Provisions" Export Control

There are no restrictions on exports from Senegal.

Import/Export Documentation

Documents required when exporting to Senegal include the following:

1. Two copies of the commercial invoice, which should show the exporter and importer, as well as their addresses; the goods being imported; the weight, CIF value and quantity of goods imported; and a complete description of the merchandise. This should be in French or accompanied by a French translation to avoid misinterpretation at the customs entry point. (In the past, for example, Senegalese customs officials mistook a date of manufacture for an expiration date, which considerably delayed a shipment.)

II. A Pro Forma Invoice. This should contain the same information as the commercial invoice but must be certified by a Chamber of Commerce.

III. A Certificate of Origin is necessary for all imported goods. Before shipping, importers must provide customs officials with documentation listing the quantity, quality, and prices of the products subject to customs duties.

Import procedures include the following:

IV. Importers must deposit a Preliminary Import Declaration seven days before shipping imported goods having a value equal to or greater than USD 2,000.

V. Automatic approval of the Preliminary Import Declaration is obtained by submitting three copies of the Pro Forma Bills of Lading with the declaration.

VI. A preliminary Import Declaration is valid for 6 months and can be extended for 3 months. Preliminary Import Declarations must be canceled and reissued if there is a change in Supplier, an increase in the value of the order by more than 10 percent, or a modification in the quantity of the order.

VII. Any payment for imported goods greater in value than CFA one million (USD 1,400) must be made through an approved Senegalese bank or financial institution.

VIII. Any FOB import value equal to or greater in value than CFA three million (USD 4,300) must be inspected by either SGS or Bivac/Veritas in the supplier's country before shipping.

IX. Presentation of a clean report of findings issued by either SGS or Bivac/Veritas is obligatory.

Temporary Entry

Goods imported for re-export are subject to a temporary admission system and are not assessed customs duties. This system has been abused in the past, and customs officials may be particularly demanding in enforcing regulations.

Labeling and Marking Requirements

Senegal's labeling requirements are applicable to canned and partly preserved food intended for human consumption. Such products must have the following information marked:

I. Country of origin;

II. Product manufacture date, specified by the day, the month and the year;

III. The expiration date, marked in the same manner as the date of manufacture, preceded by the comment: "A Consumer de Preference Avant le DD/MM/YY."

For other non-food consumer products, it is critical that the label be written in French with the expiration date added.

Prohibited Imports

Prohibited imports include narcotics, munitions and war ammunition (except collector's items), pornographic publications, and hallucinogenic drugs, except those authorized by the Ministry of Health.

Standards

Senegal's standards are derived from the French. Electricity used in the country is 220 V 50 cycles and the system of measurement is metric.

Free Trade Zones/Warehouses

The Dakar Industrial Free Trade Zone (ZFID) was established in 1974 to encourage foreign investors to set up intensive export-oriented companies. Its enabling statute has been extended until 2016, but only for companies already established within the zone.

Bonded warehouses exist for goods in transit to neighboring countries. Goods imported under the warehouse system benefit from total suspension of duties and taxes for 12 months, with the possibility of renewal.

Special Import Provisions

There is no quantitative restriction on imported goods. See also " Import Licenses" above.

Membership in Free Trade Arrangements

Senegal is a member of the Economic Community of West African States (ECOWAS), the West African Economic and Monetary Union (UEMOA), the Lome Convention, and the World Trade Organization.