Decision No. 355 of 2023 regarding the issuance of regulatory and executive rules of Free Markets

Decision No. 355 of 2023 regarding the Issuance of Regulatory and Executive Rules of Free Markets

Council of Ministers

• After reviewing
• The Constitutional Declaration and its amendments.
• The Libyan Political Agreement signed on 17/12/2015.
• The outcomes of the Libyan Dialogue Forum held on 9/November/2020.
• The State Financial System Law, Budget and Accounts Regulations and their amendments.
• Law No. 68 of 1972 concerning Customs Guard.
• Law No. 9 of 2000 regulating Transit Trade and Free Zones and its implementing regulations.
• Law No. 9 of 2010 on Investment Promotion and its implementing regulations.
• Law No. 10 of 2010 concerning Customs and its implementing regulations.
• Law No. 23 of 2010 concerning Commercial Activity and the decisions issued accordingly.
• The letter from the Minister of Economy and Trade No. 640 dated 15/02/2023.
• The letter from the Secretary of Cabinet Affairs No. 5617 dated 12/03/2023.
• The third regular meeting of the Council of Ministers for the year 2023.

Decides:

Contents

Article 1

Definitions

In the application of the provisions of this regulation, the words mentioned below shall have the meanings indicated next to each, unless the context indicates otherwise:

The Ministry: Ministry of Economy and Trade

The Agent: Authorized agent of the Ministry of Economy and Trade.

The Administration: General Administration of Customs Service.

The Director-General: Director-General of Customs Service.

The Competent Director: Director of the Directorate of Customs Service.

The Competent Head: Head of the Customs Center at the Port.

Customs Area: The administrative boundaries assigned to the Customs Center where the free market is located.

Security Director: The director of the port assigned with securing and protecting the port.

Site Owner: Ministry of Transportation

Built Free Market: The licensed site or place where goods are displayed for the purpose of sale.

Investor: The entity licensed by the Ministry to manage the free market operations.

Traveler: Any person entering or leaving the country, whether resident or non-resident.

Storehouse: The place or building that Customs Service has approved for the investor's use after meeting the required conditions for storing goods awaiting their release into the market according to the designated model.

Storehouse Guard: Customs officer responsible for guarding and supervising the storehouse.

Sales Hall: The designated place for sales according to the approved specifications.

Goods: The collection of commodities displayed in the free market, as well as the services provided to travelers.

Sanitization Zone: The area located after the stamping of entry or exit of travelers.

Conditions for Establishing Free Markets

Article 2

Free markets are established by a decision of the Council of Ministers, and a permit is issued by the Minister of Economy for commencement. Free markets are allowed to be present at ports, whether they are air, sea, or land ports, or at points of sale in means of international transportation.

Article 3

The following conditions must be met by the investing entity to establish free markets:

1. The company must specialize in free market activity.
2. Obtaining a license to operate free markets from the Ministry of Economy and Trade. The application must include the following documents:

• A map of the port from the Ministry of Transportation, indicating the location of the free market.
• The location of the free market must be within the sanitization zone of the port.
• Submitting a preliminary contract signed with the owning entity regarding the investment in the designated site.

3. The investor is obligated to submit a file containing the following:

• Approvals from relevant authorities.
• Evidence of opening a foreign currency account with one of the banks operating in the country.

4. Retail sales must be conducted.

Regulatory Provisions

Article 4

Except for goods that violate prevailing laws, regulations, and public morals, all types of goods may be imported into free markets.

Article 5

The investing entity of the free market must provide the administration with a list of all goods entering the warehouse within 36 hours, according to the provided model attached to these regulations.

Article 6

Goods displayed in free markets must be original and meet all legal requirements and adhere to the guidelines issued by the Director-General. Service activities within free markets must meet the health conditions stipulated in relevant laws and regulations.

Article 7

Investors are allowed to conduct sales operations under the following conditions:

1. Sales are limited to travelers and crew members only, based on allowable quantities per traveler in terms of value and type.
2. Sales receipts must be retained according to the accounting system.
3. Travelers must be provided with a purchase receipt according to the attached model in these regulations.
4. Selling goods unfit for consumption and use is prohibited, and such goods must be destroyed in accordance with Customs Law No. 10 of 2010 and its implementing regulations.
5. A monthly report of sales operations conducted in each display area must be submitted to the competent head.
6. Invoices and records related to the display and sale process must be submitted to the competent head upon request.
7. Sales to travelers are allowed in local currency and hard currency equivalent to 5000 Libyan Dinars.

Article 8

The investor or their delegate is authorized to coordinate with the competent head for the following operations:

1. Sampling goods according to the applicable model at the Customs Authority.
2. Taking necessary measures to preserve goods.
3. Transferring goods entirely or partially from one warehouse to another under customs supervision.

Article 9

The following specifications are required for display halls in free markets:

1. Availability of all security and safety requirements for exhibited goods and all personnel in the market.
2. Clear and visible price display for the exhibited goods to travelers.

Article 10

The following conditions are required for the warehouse designated for storing goods in the free market:

1. Meeting security and safety conditions.
2. The warehouse building must be fully roofed and paved.
3. It must have a single main entrance secured with two locks, one deposited with Customs and the other kept by the investor.
4. It should be well-ventilated and adequately illuminated.
5. Submission of comprehensive insurance documentation from an approved insurance company.

Closure of Free Markets

Article 11

1. If an investor wishes to discontinue their activities in the free market, they must notify the owning entity and the administration at least 90 days in advance to settle their affairs before contract termination.
2. In the event of a decision issued by the administration or any competent authority to close the free market, the investor is given a 90-day period after the decision to transfer the goods to another area or subject them to other customs procedures with the administration's approval.
3. The administration reserves the right to extend the period if necessary.

Final Provisions

Article 12

1. The investor is fully responsible for the goods in the free markets.
2. If discrepancies or actual shortages or excesses are discovered during inventory operations, a report is to be prepared and presented to the competent head.
3. The investor must provide a list of names of employees and workers in the free market to the competent head or designated individuals.
4. The investing entity of the free market is responsible for violations committed by its employees in contravention of the provisions of Customs Law No. 10 of 2010 or the provisions of these regulations.
5. The competent head has the right to inspect goods stored in the free markets at any time and review documents related to the goods.
6. The Director-General has the authority to issue periodic regulations, instructions, and circulars for the management of the free market and its organization.
7. The investor may contract privately with merchandise agents to allocate a portion of the display area for their goods, subject to approval from the owning entity.
8. The investor is allowed to establish sales points within international transportation means affiliated with the free market.
9. The investor must adhere to the architectural plans and allocated spaces set by the owning entity.
10. The investor must not make any changes or modifications to the display hall without obtaining prior approvals from the administration and the owning entity.
11. The investor must submit the required forms upon receiving, storing, displaying, and handling the goods.
12. Maintaining records and copies of sales invoices and providing them to the competent head upon request.
13. The investor must provide all security requirements against theft and fire within the display halls.

Models Used in Free Market Activities

Article 13

The attached models to this resolution are adopted for implementation within the markets.

Article 14

This resolution shall come into effect from the date of its issuance, and the relevant authorities are responsible for its implementation.

• Council of Ministers
• Issued on 14th June 2023