VI. TRADE REGULATIONS AND STANDARDS THE GOVERNMENT OF SENEGAL HAS OVER TIME MOVED TO LIBERALIZE THE IMPORT SYSTEM AND TO RATIONALIZE THE SYSTEM OF EFFECTIVE PROTECTION. FOLLOWING THE DEVALUATION OF JANUARY, 1994, EXPORT SUBSIDIES WERE DISCONTINUED, CUSTOMS DUTIES LOWERED, AND QUANTITATIVE RESTRICTION ON CERTAIN GOODS ELIMINATED. TARIFFS AND IMPORT TAXES FOLLOWING THE CFAF FRANC DEVALUATION, TARIFFS AND IMPORT TAXES WERE GENERALLY SIMPLIFIED: - GENERAL CUSTOMS DUTIES WERE REDUCED FROM 15 PCT TO 10 PCT OF CIF VALUE, EXCEPT FOR PRODUCTS IMPORTED FROM THE WEST AFRICAN ECONOMIC COMMUNITY (ECOWAS). - THE AD VALOREM FISCAL DUTY WAS REDUCED TO FOUR LEVELS ASSESSED AT 10, 20, 30, AND 50 PCT, DEPENDING ON THE CATEGORY OF PRODUCT. AS AN INTERIM POST DEVALUATION THE 10 PCT DUTY ON "SOCIAL AND STRATEGIC GOODS" (E.G., PHARMACEUTICALS, RICE, AND WHEAT) AND THE 10 PCT DUTY ON CAPITAL GOODS AND INPUTS FOR INDUSTRY. ALL IMPORTED CONSUMER GOODS NOT PRODUCED LOCALLY ARE SUBJECT TO THE ORDINARY FISCAL DUTY OF 20 PCT, WHILE THOSE COMPETING WITH LOCAL PRODUCTION ARE SUBJECT TO THE 30 PCT RATE. LUXURY GOODS ARE SUBJECT TO THE 50 PCT FISCAL DUTY. - THE CUSTOMS STAMP CHARGE WAS STANDARDIZED AT 5 PCT OF CIF VALUE ON ALL IMPORTED PRODUCTS, EXCEPT THOSE SPECIALLY EXEMPTED; AND THE VALUE ADDED TAX (VAT) WAS SIMPLIFIED FROM FIVE CATEGORIES TO TWO CATEGORIES ASSESSED AT 10 AND 20 PCT. CUMULATIVE RATES, INCLUDING ALL AD VALOREM CUSTOMS CHARGES, TAXES, AND DUTIES, WERE REDUCED BETWEEN 5 AND 48 PCT, ACCORDING TO THE CATEGORY OF PRODUCT. CUSTOMS VALUATIONS GOODS IMPORTED INTO SENEGAL ARE CLASSIFIED ACCORDING TO THE BRUSSELS TARIFF NOMENCLATURE (BTN) AND ARE SUBJECT TO A CUSTOMS DUTY, A FISCAL DUTY, A CUSTOM STAMP, AND A VALUE ADDED TAX. IMPORT LICENSES THE IMPORT OF PRODUCTS SUCH AS POTATOES, ONIONS, BANANAS, VEGETABLE OIL, GOLD, JEWELRY, AND CEMENT IS SUBJECT TO PRIOR AUTHORIZATION BY THE MINISTER OF COMMERCE. A SPECIAL CONVENTION BETWEEN THE GOVERNMENT AND THE PRIVATELY OWNED SENEGALESE SUGAR COMPANY (CSS) GIVES THAT FIRM A MONOPOLY ON THE IMPORTATION OF SUGAR. EXPORT CONTROLS THERE ARE NO RESTRICTIONS ON EXPORTS FROM SENEGAL. AN EXPORT DUTY OF 20 PCT REMAINS SUSPENDED. THE EXPORT SUBSIDY WAS ALSO SUSPENDED FROM FEBRUARY, 1994. IMPORT/EXPORT DOCUMENTATION DOCUMENTS REQUIRED WHEN EXPORTING TO SENEGAL INCLUDE THE FOLLOWING: -- 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, IN ONE CASE SENEGALESE CUSTOMS OFFICIALS MISTOOK A DATE OF MANUFACTURE FOR AN EXPIRATION DATE, WHICH CONSIDERABLY DELAYED A SHIPMENT.) -- A PROFORMA INVOICE. THIS SHOULD CONTAIN THE SAME INFORMATION AS THE COMMERCIAL INVOICE BUT MUST BE CERTIFIED BY A CHAMBER OF COMMERCE. -- A CERTIFICATE OF ORIGIN IS NECESSARY FOR ALL IMPORTED GOODS. BEGINNING IN LATE 1992 THE GOVERNMENT SET UP AN IMPORT INSPECTION PROGRAM ADMINISTERED BY THE MULTINATIONAL SOCIETE GENERALE DE SURVEILLANCE (SGS) IN AN EFFORT TO LIMIT FRAUD AND TAX LOSSES ON IMPORTED GOODS. THIS SYSTEM IS STILL IN PLACE, ALTHOUGH THE AUTHORITIES HAVE SPOKEN OF A GRADUAL DISMANTLING OF IT. PRIOR TO SHIPPING, IMPORTERS MUST PROVIDE CUSTOMS OFFICIALS WITH DOCUMENTATION LISTING THE QUANTITY, QUALITY, AND PRICE OF THE PRODUCTS SUBJECT TO CUSTOMS DUTIES. IMPORT PROCEDURES INCLUDE THE FOLLOWING: -- IMPORTERS MUST DEPOSIT A PRELIMINARY IMPORT DECLARATION SEVEN DAYS PRIOR TO SHIPPING IMPORTED GOODS HAVING A VALUE EQUAL TO OR GREATER THAN USD 2000. -- AUTOMATIC APPROVAL OF THE PRELIMINARY IMPORT DECLARATION IS OBTAINED BY SUBMITTING 3 COPIES OF THE PRO FORMA BILLS OF LADING WITH THE DECLARATION. -- A PRELIMINARY IMPORT DECLARATION IS VALID FOR 6 MONTHS AND CAN BE EXTENDED FOR 3 MONTHS MORE. PRELIMINARY IMPORT DECLARATIONS MUST BE CANCELLED AND REISSUED IF THERE IS A CHANGE IN SUPPLIER, AND INCREASE IN THE VALUE OF THE ORDER BY MORE THAN 10 PCT, OR A MODIFICATION IN THE QUANTITY OF THE ORDER. -- ANY PAYMENT FOR IMPORTED GOODS GREATER IN VALUE THAN CFAF 500,000 (USD 847) MUST BE MADE THROUGH AN APPROVED SENEGALESE BANK OR FINANCIAL INSTITUTION. -- ANY FOB IMPORT VALUE EQUAL TO OR GREATER THAN CFAF 1.5 MILLION (USD 2542) MUST BE INSPECTED BY SGS IN THE SUPPLIER'S COUNTRY PRIOR TO SHIPPING. SGS HAS IN AT LEAST ONE CASE DENIED PERMISSION FOR THE IMPORT OF U.S. FOODSTUFFS, ALLEGING PREDATORY PRICING. -- PRESENTATION OF A CERTIFICATE OF VERIFICATION OF INSPECTION IS OBLIGATORY. TEMPORARY ENTRY GOODS IMPORTED FOR RE-EXPORT ARE SUBJECT TO A TEMPORARY ADMISSION SYSTEM AND ARE NOT ASSESSED ANY PAYMENT OF CUSTOMS DUTIES. THIS SYSTEM HAS BEEN ABUSED IN THE PAST, AND CUSTOMS OFFICIALS MAY BE PARTICULARLY DEMANDING IN ENFORCING REGULATIONS. LABELING AND MARKING REQUIREMENTS THERE ARE NO NON-STANDARD REQUIREMENTS FOR LABELING AND MARKING. PROHIBITED IMPORTS PROHIBITED IMPORTS INCLUDE NARCOTICS, MUNITIONS, LUMP SUGAR, PORNOGRAPHIC MATERIALS, MATCHES, EXPLOSIVES AND PASSENGER TRANSPORT VEHICLES NOT SPECIFICALLY LICENSED FOR IMPORT. STANDARDS SENEGAL HAS SIGNED THE TOKYO ROUND AGREEMENTS WHICH PREVENT THE USE OF NATIONAL STANDARDS TO HAMPER FREE TRADE. FREE TRADE ZONES/WAREHOUSES THE DAKAR INDUSTRIAL FREE TRADE ZONE (DIFTZ) WAS ESTABLISHED IN 1974 TO ENCOURAGE FOREIGN INVESTORS TO SET UP LABOR-INTENSIVE EXPORT-ORIENTED COMPANIES. IN PRINCIPLE AND ACCORDING TO VARIOUS LEGISLATIVE TEXTS AND REGULATIONS, ENTERPRISES OPERATING WITHIN THE ZONE HAVE TOTAL FISCAL AND DUTY EXEMPTION FOR ALL ACTIVITIES (INCLUDING SALARIES AND DIVIDENDS), FREE TRANSFER OF ALL PROFITS ARISING FROM OPERATIONS, FREE RECRUITMENT OF FOREIGN OR LOCAL STAFF, EXEMPTION FROM DUTY ON THE IMPORTATION OF GOODS AND EQUIPMENT, RAW MATERIALS, FINISHED AND SEMI-FINISHED PRODUCTS, AND EXEMPTION FROM THE (NOW SUSPENDED) EXPORT DUTY ON FINISHED PRODUCTS. THE RESULTS OF THE DIFTZ EXPERIMENT HAVE BEEN DISAPPOINTING; OF THE 12 FIRMS WHICH HAVE INVESTED SINCE 1974, ONLY 4 FIRMS -- ONE OF WHICH IS U.S.-OWNED -- ARE STILL OPERATING. THE GOVERNMENT HAS ALSO GRANTED "FREE POINT" STATUS TO ENTERPRISES OUTSIDE THE DIFTZ. ENTERPRISES GRANTED "FREE POINTS" STATUS HAVE SIMILAR TAX AND FISCAL ADVANTAGES TO THOSE OPERATING WITHIN THE DIFTZ. BONDED WAREHOUSES EXIST FOR GOODS TO BE RE-EXPORTED TO NEIGHBORING COUNTRIES. GOODS IMPORTED UNDER THE WAREHOUSE SYSTEM BENEFIT FROM TOTAL SUSPENSION OF DUTIES AND TAXES FOR 12 MONTHS RENEWABLE. SPECIAL IMPORT PROVISIONS QUANTITATIVE RESTRICTIONS ARE APPLIED TO USED CLOTHING AND USED AUTOMOBILES. THE MINISTER OF COMMERCE CAN ALSO FIX ANNUAL QUOTAS FOR IMPORT OF KOLA, TOMATO PASTE, AND GRANULATED SUGAR. IMPORT OF MEDICINES AND PHARMACEUTICALS ARE SUBJECT TO APPROVAL BY THE MINISTRY OF HEALTH PRIOR TO IMPORTATION.