Central Bank of Libya

P.O. Box 1103 - Telegram Address: Markabilba - Tripoli, Libya

Reference: / m/ 804 ( )

Circular Letter No. 181/2017

Date: 10 Safar 1439 AH
Corresponds to: 30 October 2017 AD

To the General Managers of Banks

The Governor - Libyan External Bank

With greetings,

This Administration has received the letter from the Deputy Minister of Economy and Industry of the Government of National Accord, reference no. 1781/2/5 dated 2017/10/2, which referred to Presidential Council Decree No. (378) and Article (2), stipulating that {the supplier shall deposit an amount equivalent to the tax value with the Customs Authority in the form of a guarantee, which is settled upon the release of supplied goods and merchandise...}, and Article (3), stipulating that {the approval of the Economy Monitoring in the area within whose jurisdiction the private company operates, concerning the determination of sales price ranges and distribution mechanism for supplied goods and merchandise, is considered among the required documents for customs clearance of supplied goods under letters of credit as well as under collection fees in 2017}, and Decree No. (379) and Article (16), stipulating that {no letter of credit shall be opened contrary to the mechanism specified in this decree (for supplying goods, merchandise, and supplies through the private sector), and no letter of credit for supply shall be opened except after submitting a receipt for payment of a financial guarantee issued by the Customs Authority for any customs taxes to be collected in advance}, and Article (17), stipulating that {commercial banks shall ensure not to release the original documents related to the supply of goods and merchandise supplied by private companies under letters of credit as well as under collection fees, except after submitting evidence approving the sales prices and distribution mechanism from the Economy Monitoring in the area within whose jurisdiction the private company operates...}.

Therefore, we forward to you the aforementioned letter from the Deputy Minister of Economy and Industry of the Government of National Accord, requesting that you take the necessary measures regarding it.

Peace, mercy of Allah, and blessings be upon you,

Dr. Mokhtar El-Hadi Al-Tawil
Director, Banking and Currency Supervision Department

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Copies to the Governor / Deputy Minister of Finance / Deputy Minister of Economy and Industry / Director General of Customs Authority / Deputy Director of Banking Supervision and Internal Audit Compliance Follow-up / Budget Follow-up and Compliance Monitoring Department.

• Arabization / General Circular: 29.

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Government of National Accord

Ministry of Economy and Industry Office

(( Important ))

To the Director General of Customs Authority
The Director of Banking Supervision Department - Central Bank of Libya

With greetings,

I would like to refer to:

• 1. Presidential Council Decree No. (378), specifically the following articles:
  • Article (2) which stipulates {the supplier shall deposit an amount equivalent to the tax value with the Customs Authority in the form of a guarantee, which is settled upon the release of supplied goods and merchandise...}.
  • Article (3) which stipulates {the approval of the Economy Monitoring in the area within whose jurisdiction the private company operates, concerning the determination of sales price ranges and distribution mechanism for supplied goods and merchandise, is considered among the required documents for customs clearance of supplied goods under letters of credit as well as under collection fee documents in 2017}.
• 2. Presidential Council Decree No. (379), specifically the following articles:
  • Article (16) which stipulates {no letter of credit shall be opened contrary to the mechanism specified in this decree (for supplying goods, merchandise, and supplies through the private sector), and no letter of credit for supply shall be opened except after submitting a receipt for payment of a financial guarantee issued by the Customs Authority for any customs taxes to be collected in advance}.
  • Article (17) which stipulates {commercial banks shall ensure not to release the original documents related to the supply of goods and merchandise supplied by private companies under letters of credit as well as under collection fees, except after submitting evidence approving the sales prices and distribution mechanism from the Economy Monitoring in the area within whose jurisdiction the private company operates...}.

In continuation of the letter from the Deputy to the Presidential Council of the Government of National Accord, reference no. 01558 dated 2017/5/10, attached with copies of the aforementioned decrees, which confirmed the importance of taking necessary measures for implementation.

While we encourage your efforts and continuous cooperation for the public interest, I recommend generalizing this directive to all relevant departments under your supervision or jurisdiction to remind them of the above.

Implementation and compliance are mandatory.

With best regards,

Peace, mercy of Allah, and blessings be upon you.

Al-Kazim Muhammad Sarrar
Deputy Minister

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Central Bank of Libya
No: 2017 - 10 - 08
Received by: The General Manager
No: 2526

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Copies to:

• The Minister
• The Secretary General of the Council of Ministers
• The Deputy Minister of Finance
• The Deputy Minister of Economy and Industry
• The Deputy Comptroller General
• The Deputy Director of the Administrative Authority

To the Economy Monitors and Directors of Economic Service Centers in Municipalities