## 1lbyea2022001 - Section 1 ## Source details **Canonical URL:** [1lbyea2022001 - Section 1](https://www.imf.org/-/media/files/publications/cr/2022/english/1lbyea2022001.pdf) ## Other formats - [Markdown version](/-/media/files/publications/cr/2022/english/1lbyea2022001.pdf.md) - [Structured JSON version](/-/media/files/publications/cr/2022/english/1lbyea2022001.pdf.json) --- ### Findings and the Emerging Issues — Background - ASYCUDA World (AW) was officially launched in Tripoli more than a decade ago; due to political and military instability the system was partially deployed to its basic functionality. - A limited upgrade/update was performed in December 2021 but could not address LCA concerns about handling the full range of customs procedures, including suspensive regimes like transit, temporary admission, bonded warehouses, and exemptions. - Remote review by an external expert was conducted during the period of May 29 to June 2, 2022, by connecting directly to the LCA AW server and exploring from the front-end the AW prototype. - The prototype piloted at the Port of Tripoli is very basic; although all modules and functionalities that normally come with the standard UNCTAD AW package are installed, functionality is limited only to processing certain types of customs declarations. ### General assessment of deployment and usage - AW version 4.3.3 is installed for LCA and includes traces of a module usable on mobile devices. - The prototype resumed on November 11, 2021, and: - "has been used modestly until March 3, 2022, and has not been used effectively, at least in the last three months." - There are only four declarations registered, and not processed further, for the whole month of May and only twelve for April 2022. - AW appears not to be the primary Customs Declaration Processing System used for revenue collection at customs. - Deployment is limited and premature at the Port of Tripoli Customs office where it is used inconsistently to process import declarations of type IM4 (import for home use). - Other declaration types like DR9 (direct release for perishable goods) haven’t been submitted due to: - issues with calculation of duties because of missing references in the Taxation Rules, and - integrity issues with the Customs Procedures Codes (CPC) in related reference tables. ### Specific findings and remarks — System installation, configuration, and security - AW version: "4.3.3" installed on a remote server (Cloud) reachable from a public link provided on the LCA website http://sabq.customs.ly. - No Virtual Private Network (VPN) or other security layer controls routes and traffic to the server. - The official website is not secured as there is not any valid certificate of security installed. - Current National Configuration File created on November 7, 2021, appears set to default settings. - Although LCA uses declaration types beyond IMPORT (IM) and EXPORT (EX) (e.g., DR, PA, PI, SA, TR and VH), only two forms are configured in the system: IM and EX, both with default field configurations. - Curiosity noted: Box 15 of Single Administrative Document "Country of export" is set to "Optional" in the import declaration. ### Reference tables and taxation rules - Tariff table contains a single column with basic rates (these should be the equivalent of the Most Favored Nation (MFN) rates). - Most parts of the system, including taxation rules, are as outdated as 2010; only a couple of reference tables relating to economic operators (like Companies) were updated in 2021. - All declarations found in the system are of type IM4 and submitted at office 11101 (Port of Tripoli). - Some CPC-related tables have integrity issues preventing processing of certain declaration types (e.g., DR9, EX1). - The taxation system shows more than 40 codes of taxes in a reference table, but implemented taxation rules in AW are limited: - One taxation rule under category "Tariff Column" calculates the Custom Duty for Import (CDI). - Three rules under category "Item Rules" calculate three taxes identified with codes TCB, TCK and TRE applied at a specific flat rate across tariff headings. - Two rules under category "Global Rules" apparently calculate certain charges or fees at the declaration level identified as TDM and TCS. - A set of rules under category "Other-link" are used to apply measures related to "favorable tariff treatment" or "tariff preferential arrangements". - None of the taxation rules refer to declaration types other than "IM4", causing: - inability to process DR9 declarations, - inability to calculate guaranty amounts required to secure payable duties for suspensive regimes like "IM5" and "IM7". ### Exemptions, user management, and business units - Exemptions model is basic: exemptions applied using Additional Codes in box 37(b) of the Single Administrative Document (SAD) without additional controls restricting access to authorized companies and commodity codes. - AW features that can support effective exemption controls are not engaged. - User management mechanism is extremely simple: - All active Business Units (BUs) are placed in a Single Customer Account named "ADMINLY". - Permissions are assigned to user profiles through that account, making user management procedures difficult and not sufficiently safe or secure. - There is a well-structured list of BUs which, despite limited functionalities, is a good basis for further development. ### Cargo manifest, transit, valuation, payment, and suspensive regimes - Cargo Manifest module: - Not used at all though almost ready for use. - LCA officials expressed interest in manifest functionalities. - May require small adjustments in "manifest standards" at "National Configuration" and a process flow review to determine "who is doing what". - Transit: - Transit-related functionalities are not activated and are not visible in the Document Library even with administrator rights. - Module is installed with both components: National Transit (based on document T1) and international transit based on IRU TIR Carnet. - Implementation will require development from scratch: process flow, roles, related BUs, guaranty accounts (if required), etc. - Risk Management and Selectivity (RM&S): - RM&S functionalities are integral to the Customs Declaration Processing module ("asybrk") but are dormant; aside from the Inspection Act, RM&S features are "sleeping" and not visible in the Document Library even with administrator rights. - Control of Value: - The Customs Valuation Database and tariff specification-based control module is installed but not activated. - Customs Warehousing and other suspensive regimes: - Customs Warehousing ("IM7") is not in use. - There appears to be misunderstanding about "temporary storage" versus bonded Customs Warehouses. - System cannot calculate duties/taxes to be secured with guaranty due to missing declaration references. - No configured feature linking a closing declaration with the prior opening declaration for temporary regimes. - Payment accounts: - Accounting and Payment is very basic: only "CASH Declaration" payment modes are allowed. - Payment by accounts (PREPAYMENT or CREDIT) is not activated. ### Recommendations - Consider a total review of the prototype, including activation of modules/functionalities such as: - transit, - selectivity, - control of value, - payment, - guaranty accounts. - Enhance currently implemented functionalities in the customs declaration processing module, including: - national configuration, - reference tables, - taxation rules, - clearance process flow. - Change implementation strategy to start with simpler modules like cargo manifest and transit: - While not directly connected with revenue collection, these modules effectively put goods under customs control and secure revenue. - Provide capacity development (CD) through technical assistance and on-the-job training to the Functional Implementation team. - The team should be composed mostly of experts in customs techniques from various departments, supported by information technology specialists with good knowledge of customs concepts and processes. - Annex 1 provides an outline list of activities and tasks to enhance AW prototype development for effective implementation. ### Appendix I — Key activities/tasks (selected highlights) Objective: Identify short- and medium-term activities to enhance AW prototype development for sustainable implementation. - A.1 Review and update AW National Configuration - A.1.1 Review and update Manifest Standards. - A.1.2 Review and update SAD Standards. - A.1.3 Configure SAD fields for all types of declaration. - A.2 Verify integrity of Reference Tables and update if necessary - A.2.1 Check the integrity of the CPC reference tables, which has caused problems with specific types of declaration. - A.3 Implement the AW Cargo Manifest module - A.3.1 Document the process flow and identify roles and functions for each step. - A.3.2 Develop the required BU for each role or function in the manifest processing. - A.3.3 Review and update specific reference tables related to the manifest module (Carriers, Carriers’ Agents, etc.). - A.3.4 Test the functioning of the module and deploy for piloting at Tripoli Port. - A.3.5 Roll out to other ports and airports. - A.4 Implement AW Transit Module - A.4.1 Document the process flow and identify roles and functions for each step of the process. *Source: 1lbyea2022001 - Section 2* ### Section 1 ### 1lbyea2022001 - Section 1 ### Findings and the Emerging Issues — Background - ASYCUDA World (AW) was officially launched in Tripoli more than a decade ago; due to political and military instability the system was partially deployed to its basic functionality. - A limited upgrade/update was performed in December 2021 but could not address LCA concerns about handling the full range of customs procedures, including suspensive regimes like transit, temporary admission, bonded warehouses, and exemptions. - Remote review by an external expert was conducted during the period of May 29 to June 2, 2022, by connecting directly to the LCA AW server and exploring from the front-end the AW prototype. - The prototype piloted at the Port of Tripoli is very basic; although all modules and functionalities that normally come with the standard UNCTAD AW package are installed, functionality is limited only to processing certain types of customs declarations. ### General assessment of deployment and usage - AW version 4.3.3 is installed for LCA and includes traces of a module usable on mobile devices. - The prototype resumed on November 11, 2021, and: - "has been used modestly until March 3, 2022, and has not been used effectively, at least in the last three months." - There are only four declarations registered, and not processed further, for the whole month of May and only twelve for April 2022. - AW appears not to be the primary Customs Declaration Processing System used for revenue collection at customs. - Deployment is limited and premature at the Port of Tripoli Customs office where it is used inconsistently to process import declarations of type IM4 (import for home use). - Other declaration types like DR9 (direct release for perishable goods) haven’t been submitted due to: - issues with calculation of duties because of missing references in the Taxation Rules, and - integrity issues with the Customs Procedures Codes (CPC) in related reference tables. ### Specific findings and remarks — System installation, configuration, and security - AW version: "4.3.3" installed on a remote server (Cloud) reachable from a public link provided on the LCA website http://sabq.customs.ly. - No Virtual Private Network (VPN) or other security layer controls routes and traffic to the server. - The official website is not secured as there is not any valid certificate of security installed. - Current National Configuration File created on November 7, 2021, appears set to default settings. - Although LCA uses declaration types beyond IMPORT (IM) and EXPORT (EX) (e.g., DR, PA, PI, SA, TR and VH), only two forms are configured in the system: IM and EX, both with default field configurations. - Curiosity noted: Box 15 of Single Administrative Document "Country of export" is set to "Optional" in the import declaration. ### Reference tables and taxation rules - Tariff table contains a single column with basic rates (these should be the equivalent of the Most Favored Nation (MFN) rates). - Most parts of the system, including taxation rules, are as outdated as 2010; only a couple of reference tables relating to economic operators (like Companies) were updated in 2021. - All declarations found in the system are of type IM4 and submitted at office 11101 (Port of Tripoli). - Some CPC-related tables have integrity issues preventing processing of certain declaration types (e.g., DR9, EX1). - The taxation system shows more than 40 codes of taxes in a reference table, but implemented taxation rules in AW are limited: - One taxation rule under category "Tariff Column" calculates the Custom Duty for Import (CDI). - Three rules under category "Item Rules" calculate three taxes identified with codes TCB, TCK and TRE applied at a specific flat rate across tariff headings. - Two rules under category "Global Rules" apparently calculate certain charges or fees at the declaration level identified as TDM and TCS. - A set of rules under category "Other-link" are used to apply measures related to "favorable tariff treatment" or "tariff preferential arrangements". - None of the taxation rules refer to declaration types other than "IM4", causing: - inability to process DR9 declarations, - inability to calculate guaranty amounts required to secure payable duties for suspensive regimes like "IM5" and "IM7". ### Exemptions, user management, and business units - Exemptions model is basic: exemptions applied using Additional Codes in box 37(b) of the Single Administrative Document (SAD) without additional controls restricting access to authorized companies and commodity codes. - AW features that can support effective exemption controls are not engaged. - User management mechanism is extremely simple: - All active Business Units (BUs) are placed in a Single Customer Account named "ADMINLY". - Permissions are assigned to user profiles through that account, making user management procedures difficult and not sufficiently safe or secure. - There is a well-structured list of BUs which, despite limited functionalities, is a good basis for further development. ### Cargo manifest, transit, valuation, payment, and suspensive regimes - Cargo Manifest module: - Not used at all though almost ready for use. - LCA officials expressed interest in manifest functionalities. - May require small adjustments in "manifest standards" at "National Configuration" and a process flow review to determine "who is doing what". - Transit: - Transit-related functionalities are not activated and are not visible in the Document Library even with administrator rights. - Module is installed with both components: National Transit (based on document T1) and international transit based on IRU TIR Carnet. - Implementation will require development from scratch: process flow, roles, related BUs, guaranty accounts (if required), etc. - Risk Management and Selectivity (RM&S): - RM&S functionalities are integral to the Customs Declaration Processing module ("asybrk") but are dormant; aside from the Inspection Act, RM&S features are "sleeping" and not visible in the Document Library even with administrator rights. - Control of Value: - The Customs Valuation Database and tariff specification-based control module is installed but not activated. - Customs Warehousing and other suspensive regimes: - Customs Warehousing ("IM7") is not in use. - There appears to be misunderstanding about "temporary storage" versus bonded Customs Warehouses. - System cannot calculate duties/taxes to be secured with guaranty due to missing declaration references. - No configured feature linking a closing declaration with the prior opening declaration for temporary regimes. - Payment accounts: - Accounting and Payment is very basic: only "CASH Declaration" payment modes are allowed. - Payment by accounts (PREPAYMENT or CREDIT) is not activated. ### Recommendations - Consider a total review of the prototype, including activation of modules/functionalities such as: - transit, - selectivity, - control of value, - payment, - guaranty accounts. - Enhance currently implemented functionalities in the customs declaration processing module, including: - national configuration, - reference tables, - taxation rules, - clearance process flow. - Change implementation strategy to start with simpler modules like cargo manifest and transit: - While not directly connected with revenue collection, these modules effectively put goods under customs control and secure revenue. - Provide capacity development (CD) through technical assistance and on-the-job training to the Functional Implementation team. - The team should be composed mostly of experts in customs techniques from various departments, supported by information technology specialists with good knowledge of customs concepts and processes. - Annex 1 provides an outline list of activities and tasks to enhance AW prototype development for effective implementation. ### Appendix I — Key activities/tasks (selected highlights) Objective: Identify short- and medium-term activities to enhance AW prototype development for sustainable implementation. Selected activity/task bullets (referring to Task Ref. codes in the source): - A.1 Review and update AW National Configuration - A.1.1 Review and update Manifest Standards. - A.1.2 Review and update SAD Standards. - A.1.3 Configure SAD fields for all types of declaration. - A.2 Verify integrity of Reference Tables and update if necessary - A.2.1 Check the integrity of the CPC reference tables, which has caused problems with specific types of declaration. - A.3 Implement the AW Cargo Manifest module - A.3.1 Document the process flow and identify roles and functions for each step. - A.3.2 Develop the required BU for each role or function in the manifest processing. - A.3.3 Review and update specific reference tables related to the manifest module (Carriers, Carriers’ Agents, etc.). - A.3.4 Test the functioning of the module and deploy for piloting at Tripoli Port. - A.3.5 Roll out to other ports and airports. - A.4 Implement AW Transit Module - A.4.1 Document the process flow and identify roles and functions for each step of the process. *Prepared by Artur Pilika; Section completed June 2022; IMF Country Report No. 22/291 — LIBYA TECHNICAL ASSISTANCE REPORT - REVIEW THE INSTALLATION/IMPLEMENTATION STATUS OF MODULES/FUNCTIONALITIES OF ASYCUDA WORLD AT LIBYAN CUSTOMS ADMINISTRATION* ### Section 2 ### 1lbyea2022001 - Section 2 ### Manifest processing - A.4.2 Develop the required BU for each role or function in the manifest processing. - A.4.3 Review and update specific reference tables that relate to the manifest module (Principals, Guaranty Accounts, etc.). - A.4.4 Test the functioning of the module and deploy for piloting between Tripoli Port and a major Inland Customs Office (ILC). - A.4.5 Roll out to all the other remaining offices. ### Enhance and consolidate the functionality of the Customs Declaration Processing module - Activity/Milestone: A.5 Enhance and consolidate the functionality of the Customs Declaration Processing module - A.5.1 Review the Taxation Rules to enable the AW to process any type of declaration in conformity with legislation, policies, and procedures in force. - A.5.2 Complete the configurations and settings for use of other suspensive regimes (like warehousing, temporary admission, etc). - A.5.3 Enhance the use of guaranty accounts covering all the suspensive regimes. - A.5.4 Introduce AW Risk Management mechanism and develop Selectivity Criteria to perform customs controls based on selectivity, including automatic assignment of the SAD declarations. - A.5.5 Introduce AW Value Control for developing a Valuation Database and use it in accordance with WTO and WCO standards and requirements. - A.5.6 Introduce use of the Payment Accounts as a mean of trade facilitation and prepare conditions for implementation of e-payment. ### Enhance security of the system - Activity/Milestone: A.6 Enhance security of the system - A.6.1 Review and revise, if necessary, the network infrastructure and related aspects of security. - A.6.2 Define and implement a new AW users management policy following a hierarchical model with parent-child Customer Accounts. *Source: 1lbyea2022001 - Section 2* --- _Source: https://www.imf.org/-/media/files/publications/cr/2022/english/1lbyea2022001.pdf_