Liberia's Rubber Sector Revitalization: President Boakai Signs Executive Order to Restrict Raw Material Export and Foster Value Addition

Strategic Insights -

Liberian President Joseph Nyuma Boakai, Sr. has signed Executive Order No. 151 to revitalize the country's rubber sector, promoting a shift from raw material export to domestic value addition. The move aims to support GDP growth, employment, and export earnings. According to President Boakai, Liberia has "forfeited opportunities for domestic manufacturing, job creation, and increased revenue" by exporting raw rubber. Executive Order No. 151 is a turning point, paving the way for industrialization, value addition, and long-term economic transformation.

Key Takeaways:

  • Executive Order No. 151 restricts the export of unprocessed rubber, including natural latex, cup lump, bark scrap, and ground scrap, to promote domestic value addition.
  • Only processed rubber, such as Technically Specified Rubber (TSR), is exempted from the export restriction.
  • Exporters must comply with new fiscal obligations, including a 4% presumptive tax, Rubber Development Fund Incorporated (RDFI) fees, and a USD $150 per metric ton surcharge.
  • Exporters must present official tax and fee receipts, secure approval from the Ministry of Agriculture, and obtain an Export Permit Declaration (EPD) from the Ministry of Commerce and Industry.
  • Exporters must remit an Advance Income Tax of 4% (small taxpayers) or 2% (medium/large taxpayers) immediately after export.
  • Entities that falsify documents or evade the provisions of the Executive Order will face a USD $50,000 fine for the first offense, with repeat violators subject to additional penalties and revocation of export privileges.
  • The Ministry of Agriculture will lead the enforcement of this Order, in coordination with the Ministry of Finance and Development Planning, the Ministry of Commerce and Industry, and the Rubber Development Fund Incorporated.
  • Joint administrative guidelines will be issued to ensure smooth implementation of the Order.

Statistics:

  • 4% presumptive tax imposed on exporters
  • USD $150 per metric ton surcharge on exporters
  • 4% (small taxpayers) and 2% (medium/large taxpayers) Advance Income Tax rate for exporters
  • USD $50,000 fine for entities that falsify documents or evade the provisions of the Executive Order
  • Revocation of export privileges for entities found guilty of repeat offenses

Sources:

  • Executive Order No. 151