LIBYA

Switzerland-Libya bilateral relations

Following the fall of the Gaddafi regime, Libya has embarked on a process of political transformation aimed at, among other things, re-establishing an internal climate of security and stability. Switzerland has already established solid relations with the new Libyan authorities, which it intends to support in their efforts to rebuild the country.

Economic cooperation

In 2009, Libya was Switzerland’s second largest trading partner in Africa. The crisis between the two countries and Libya’s embargo on Switzerland caused not only exports to Libya to plummet drastically in 2009 (-44.6% compared to 2008), but also imports from Libya (99% of gross; -78.4% compared to 2008). Until 2011, this trend was observed.

Business languages

Arabic, especially in correspondence with authorities, English.

Weights and measures

Metric

Currency

National currency, Libyan Dinar. ISO Code: LYB

Customs Tariff

Harmonized system.

Import control

Restrictive measures: arms embargo with admission restrictions and financial sanctions, as well as prohibition of export and provision of services of goods for internal repression.
Importers must be validly registered in the importers’ registry. There are restrictions on imports of goods in the form of registration and licensing requirements as well as prohibitions.
Licenses and/or registrations are required for drugs, medical products, infant and baby food, telecommunications terminal equipment and radio equipment. General import bans will be published in a “negative list” subject to continuous change. Included in it are goods from Israel, pigs and their meat, poultry, alcohol, some textiles and used goods.
Exchange control is subject to the Central Bank of Libya. Foreign exchange transactions are subject to the authorization requirement.
Authorizations regarding payment for imports of goods are not usually problematic.
The use of Arabic letters and numbers is required in commercial transactions (except for technical and medical terms for which there is not yet an Arabic translation). Cover letters in Arabic must be attached to correspondence.

Payment terms and offers

Primarily by letter of credit (insurance must be taken out with a Libyan insurance company). Commercial information can only be collected through credit institutions. Price offers in euros, depending on possibility CIF Tripoli or Benghazi advisable. Invoicing in euros. At the Chambers of Commerce there are available and detailed “Directions for Trade with Libyan State Customers,” regarding “Tender Procedures and Conditions, Quotations, Payment Conditions, Bids, Taxes,” and so on.

Indications of origin

There are no specific origin labeling requirements for goods. Information on goods must correspond to the truth according to the Libyan Goods Designation Law. Indication of country of origin in commercial invoices.

Marking/labeling

Current marking regulations in Arabic.
Special labeling regulations apply to foods, phytopharmaceuticals and medicines. Medicines, which, for example, are exclusively for hospital use, must be marked “Not for sale to the public” on the packaging.

Packaging

Packaging suitable for shipping. Warnings about special care in handling packages have been appropriately affixed in Arabic. Examples in Arabic translation are available from the Chambers of Commerce.

Patterns and samples of goods

Samples without commercial value are exempt from customs duty; those with commercial value can be considered as exempt from customs duty under temporary importation. The time limit for re-exportation is 6 months.
When transporting samples, the customs administration may require a bond for customs. For this reason, it is advisable to have with you a list of samples of goods in duplicate to hand over to customs.

Shipping and accompanying documents

Boycott is prohibited, and from this it follows that if discriminatory wording has been chosen, Chambers of Commerce can no longer certify business documents. The loophole through notaries, regional courts or other administrative offices is also ruled out. Positive formulations must therefore be chosen.
These regulations apply only to the traffic of goods; no regulations have yet been found for public bidding procedures.
Provisions regarding consular legalization are subject to continuous change. Commercial invoices and certificates of origin are still legalized by the consulate only if submitted jointly. If invoices are expressed in dinar (LYD), the exchange rate must be requested.
Postal shipments are not accepted. Documents must be delivered and then picked up in person or through a company representative at the Chamber of Commerce. The involvement of a service company is recommended.
The actual CCIAA fees along with the Consulate fees are borne by the service provider, who will also give information on the documentation to be submitted. Some service companies, which deliver the documents, advance the amounts and later add them to the invoice along with the fee for their services.

Customary documents as well as:

(a) Commercial invoices (4 copies): signed invoices in English with all commercial particulars are required for customs clearance. Country of origin must be specified (for Swiss goods: Swiss). CIF costs must be listed in detail. Facsimile signatures are not acceptable. Invoices must be certified by the Chamber of Commerce. A certified original copy of the commercial invoice and a photocopy thereof must be delivered along with the certificate of origin through the CCIAA to the embassy’s consular services (and remain at the embassy). Generally, an invoice legalized by the consulate is not mandatory, but in practice it is required;

(b) A certificate of origin in duplicate is required for all goods, and the consignor’s country of origin must be specified: Switzerland. The reverse side of the certificate of origin must include the following statement, “We hereby declare that the goods are of pure national origin of the exporting country and that the goods are manufactured by ….”. In the event that certain elements of foreign origin have been incorporated into the product being exported by the exporting country, it will be necessary to specify the origin and proportions of these elements. The required legalization of the certificate of origin by Libyan embassies or other entities abroad has been canceled as of 01/24/2011;

(c) Manufacturer’s declarations on letterhead (1 copy) to be submitted as follows: “We hereby declare that the goods specified in the attached certificate of origin, certified by the Chamber of Commerce … were produced by …”.

(d) Air freight parcels and packages up to 20 kg: 1 foreign shipping bill, 2 customs declarations (English/French/Arabic);

(e) Unsworn bill of lading.

Transportation Statements: the following transportation statements are reconcilable with Section 4a of the Foreign Trade Regulations (additional proposed texts from the ICCAs): “The undersigned hereby declares on behalf of the owner, agent or captain of the above-named ship/air freight that such ship/air freight is not registered in Israel as being owned by citizens or residents of Israel and will not call at or transit any Israeli port on its way to … (e.g., Libya).”

We would also like to emphasize that such transport declarations can only be delivered for technical insurance reasons, for example, to avoid goods being seized at sea or in the air.