Senegal: The recent customs reforms of 20 December 2021

Senegal, like other developing economies, relies primarily on taxes as the main source of revenue to avoid, as much as possible, indebtedness and to ensure a better consolidation of its public finances.

Thus, with this desire to improve its customs revenues, Senegal recently introduced two new customs measures in the 2022 budget law, namely a levy under the Customs Administration Modernisation Programme (the so-called PROMAD) and a discharge ticket.

PROMAD is part of the policy to strengthen the customs revenue authorities so that they can continue to play their fair share in an effective revival of the Senegalese economy.

Indeed, according to the provisions of Article 23 of the 2022 Finance Act, this important programme of Senegalese customs modernisation is financed by a specific levy of 1.5% on the customs value of goods.

According to Decree No. 2021-928 of 8 July 2021, which established PROMAD, the basis for this levy is the customs value of eligible goods.

However, excluded from this levy are goods placed under customs and tax regimes that promote investment, in particular goods of WAEMU and ECOWAS origin, in accordance with the Customs Administration memorandum No. 2433 of 23 August 2021.

Other exemptions are also provided for certain essential products such as rice, wheat, wheat flour, medicines, oil, and gas products.

Through this programme, Senegalese customs aims to achieve three major objectives for 2022, namely: the general computerisation of procedures and formalities, the strengthening of the means to fight against fraud, and the acquisition of the latest generation of equipment and infrastructure.

PROMAD has also introduced a single payment system for fees collected exclusively by the customs administration for commercial overtime work (so-called TSC), customs IT services (so-called PID) and escort fees.

Under the discharge ticket, a 0.5% levy has been introduced, which includes, in a single payment, the fees due for commercial operations carried out outside the legally-prescribed hours and for the customs’ IT services. The basis for this levy is the customs value of eligible goods, excluding those placed under customs and tax regimes that promote investment as noted above.

The implementation of this discharge ticket aims to rationalise and reduce the costs inherent in the various escort, unpacking and removal operations.

Read the WTS Global Customs Newsletter here.