Central Bank of Libya

P.O. Box 1103
Telegraphic Address: Libya - Tripoli - Libya

Reference: I.M.M / No. 804

Circular ARM No. (2023/12)

Date: 5 Sha'ban 1444 AH
Corresponding to: 26 February 2023

To: General Managers of Banks

Greetings,

Subject: Amendment of certain regulations governing the procedures for opening letters of credit *

Based on the provisions of Law No. (1) of 2005 concerning banks and its amendments, and on the supervisory and regulatory role exercised by the Central Bank of Libya over banks in accordance with the provisions of the law.

And with reference to Circular ARM No. (2022/15) issued on 19/12/2022, concerning the regulations governing the procedures for opening letters of credit.

We inform you of the issuance of instructions from the Central Bank of Libya regarding certain amendments to the regulations governing the procedures for opening letters of credit mentioned in the aforementioned circular, as follows:

1. Shipping bills of lading submitted for letters of credit with a charter date prior to the date of opening the letter of credit shall not be accepted, except for letters of credit for bulk goods (BULK) and commodities (frozen meat - oil - sugar - rice), where shipping bills of lading with charter dates up to (30) days prior are accepted, provided that this condition is included in the SWIFT MT700 message opening the letter of credit.

2. Land transport documents for letters of credit for the goods (fertilized eggs, potato seeds) supplied via Libyan land ports, and goods of Tunisian origin, are accepted according to the regulations provided by the Ministry of Economy and Trade pursuant to the letter with reference number 5/1/1194 dated 03/07/2021. Furthermore, the supply of camels and livestock via land transport from neighboring countries (Niger - Chad - Sudan) is permitted, and goods of Egyptian origin via the El-Salam land port are permitted according to the regulations provided in the letter from the Minister of Economy, with reference number (1589.1.5) dated 03/04/2022, provided that the beneficiary's account abroad is issued in the same country.

(2)

3. Suppliers are obliged to submit original customs declarations indicating the entry of supplied goods into official ports in Libya to the directors of the directorates affiliated with the Customs Authority, instead of the heads of customs centers. The customs declarations must be submitted to banks within three months from the date of receipt of the documents. All banks are required to inform the Banking and Currency Control Department of cases where the required customs declarations are not submitted in a timely manner.

Therefore, you are requested to take the necessary measures to implement the aforementioned regulations effective from this date.

Peace be upon you...

Naji Mohammed Issa
Director of Banking and Currency Control Department

// Copy to //
Mr. / The Governor
Mr. / Deputy Minister of Economy
Mr. / Director of the Office of the Head of the Administrative Control Authority Mr. / Director of the Office of the Head of the Libyan Court of Audit Mr. / General Director of the Tax Authority Mr. / General Director of the Customs Authority Mr. / Director of the Audit Department – Central Bank of Libya Mr. / Director of the Legal Affairs Department – Central Bank of Libya Mr. / Director of the Banking Operations Department – Central Bank of Libya Mr. / Director of the Information Department – Central Bank of Libya To: Managers of Central Bank of Libya branches (Benghazi - Sabha - Sirte) Mr. / Director of the Libyan Financial Intelligence Unit – Central Bank of Libya Mr. / Director of the Operations Department – Central Bank of Libya Mr. / General Director of Mu'amalat Financial Services Company Mr. / Deputy Director of Banking and Currency Control Department for Supervision and Follow-up Mr. / Deputy Director of Banking and Currency Control Department for Inspection Mr. / Deputy Director of Banking and Currency Control Department for Islamic Function To: Heads of Operations Units in Banks (Publicity) Second Section – Fourth Group – Appeals Cases Mahmoud / Malmous