Timor-Leste Customs Information

Although the Government of Timor-Leste has been member of the WCO since 2003, Annex J-5 revised Koyoto convention, tampere convention and OCHA model agreements have not been officially ratified by the government of Timor-Leste as they are still in the process of developing and implementing customs protocols and processes.
Their laws however do agree in principle with all major international trade and customs conventions and practically endorse the outcomes of such international agreements, customs authorities have been facilitating express customs clearances in emergencies and tax exemptions for good destined for humanitarian projects.
The customs authorities are still lacking full capacities, consequently implementation is still in progress and they cannot guarantee 100% compliance with all international agreements.

Duties and Tax Exemption

For contact information regarding government custom authorities, please follow the link below: 

4.1 Timor-Leste Government Contact List

4.2 Timor-Leste Humanitarian Agency Contact List

Timor-Leste Ministry oif Finance Customs Website

Emergency Response:

[Note: This section contains information which is related and applicable to ‘crisis’ times. These instruments can be applied when an emergency is officially declared by the Government.  When this occurs, there is usually a streamlined process to import goods duty and tax free.]

Exemption Regular Regime (Non-Emergency Response): 

The directorate of customs is in the process of rolling out the ASYCUDA++ customs system; this should help to streamline the customs process and is expected to be completed within the next six months at the port, airport and Batugade border crossing.
WTO harmonised system for nomenclature is utilised for classification goods.
Customs brokers clearing goods must comply with the regulations of the respective importation regime, eight importation regimes have been established for various scenarios (consumption, temporary, re-imports, transit, exemptions etc.).
Clearances involve the processing phase of SAD (single administrative document):
Brokers compile the required supporting documentation (as specified below) and submit to CREP (Customs Review Entry Processing) in customs dispatch section.
Customs official verify the documentation, process in the ASYCUDA system and conduct physical inspection.
Clearances are then completed on presentation of receipt for payment of duties or proof of tax and duties exemption.

Duties comprise:
2.5% importation duty on all imported goods.
2.5 sales tax on all imported goods.
Excise tax, applicable to certain products (alcoholic beverages, tobacco products, fuel etc) with variable rates.

Legal references include:
The 2008 Taxation Act.
Decree law No 11 2004; customs code.
Decree law No 10 2004; customs tax offences.

[Note: This section should contain information on the usual duties & taxes exemption regime during non-emergency times, when there is no declared state of emergency and no streamlines process (e.g. regular importations/development/etc.).]

Exemption Certificate Application Procedure: 

Exemption Certificate Document Requirements

NOTE: Tax Identification Number (TIN) is required for all exemption applications

Customs Clearance

General Information 

Customs Clearance Document Requirements

NOTE: 

(1) UN food imports are also exempt from quarantine requirements.
(2) All vehicles must be less than 5 years old when they are brought into the country.
Imported vehicles are inspected in the port by representatives from Ministry of Trade Commerce and Industry, Directorate of Land Transportation and Customs officials (UN vehicles are exempt from inspection procedures).
Vehicles must be registered before they leave the port, applications must be made in writing to the Directorate of Transportation, all specification of the vehicle stipulated (chassis number, engine number, engine type, year of production, model etc), with an importation licences from the customs authority and a letter of authorisation from the ministry of trade and commerce. Usually registration is complete and number plates can be provided within 1 week of the vehicle arriving in Dili.
It is possible to clear vehicles prior to arrival so they can leave the port immediately after inspection (in 1-2 days).

Transit Regime

Transit cargos do not have to pay taxes but are required to leave the country within 28 days of arrival.
For longer periods temporary importation regulations apply, where taxes due are held on deposit (BNU Bank) until the goods leave the country, for a maximum of one year.
Freight forwarders indicate that the system is working well for transhipment cargos passing through Dili port, however they maybe unwilling to accept transit cargos passing the land border as procedures are not so well established there and complications can arise.

For information on Timor-Leste customs focal points and information by entry points, please see the following document: 

Timor-Leste Customs additional information

Note: The information provided in the attached documents, which has been taken from the old DLCA, does not match the structure of the new LCA and is therefore provided separately.