Lesotho has introduced a major shift in how exporters, manufacturers, distributors and freight-forwarding companies conduct cross-border trade. From 1 September 2024, it will no longer be enough for exporters to ship goods and rely solely on clearing agents for customs processing. New regulations now require certain exporters to appoint a licensed Lesotho-based “Agent of a Foreign Firm,” and to reflect the agent’s 10-digit Agent Code (a Lesotho TIN) on all invoices, credit notes, debit notes and documents used for ASYCUDA declarations. These changes arise from the Business Licensing and Registration (Amendment) Regulations, 2024, which formally recognise “Agents of Foreign Firms” as a regulated business activity in Lesotho, as reflected in Legal Notice No. 2 of 2024.Layout 1 (002) The aim is to ensure traceability, accountability and proper customs compliance for goods originating outside Lesotho.
The Revenue Services Lesotho (RSL) issued an official notice on 27 June 2024 confirming that manufacturers, wholesalers and distributors who deliver goods into Lesotho under either credit or cash-on-delivery arrangements must comply with this new requirement. RSL is clear that the Agent Code is now an additional mandatory element in the declaration process, and exporters who fail to comply should expect delays, rejected clearances and possible penalties. Exporters must therefore identify and contract a licensed Mosotho third-party agent, ensure the agent is registered with the Ministry of Trade under activity code 8294, and ensure that the agent obtains the Agent Code Certificate before goods are shipped.
The categories of exporters who must appoint an agent include direct exporters responsible for delivering goods to Lesotho (often zero-rated for VAT), manufacturers and wholesalers supplying importers who use VAT deferment (IVCF) accounts, large exporters with multiple clients in Lesotho, and exporters of raw materials. The FAQs issued as part of the stakeholder guidance make these criteria clear.FAQ Exporters are required to contact RSL or the Ministry of Trade for a list of licensed agents, sign a written agency agreement clearly defining roles and fees, and then allow the agent to apply for the Agent Code Certificate, which the exporter must reflect on all relevant business documents.
Although the rules are strict, exporters who already have a branch or franchise in Lesotho, or those who supply exclusively to a single client, may apply for exemption. However, the process is formal: the exporter must write to RSL, justify the exemption request and attach a full client list in support.FAQ Exemptions are therefore limited and will not apply to most cross-border suppliers.
Like all regulatory reforms, this system brings both benefits and challenges. On the positive side, having a Lesotho-based agent improves compliance, reduces mis-declarations, and ensures faster problem-solving when customs issues arise. Exporters gain a representative who can engage directly with RSL, troubleshoot ASYCUDA errors and address documentation concerns before goods are held at the border. Over time, this will create a more coordinated, predictable and transparent cross-border environment. The new framework also encourages professionalism and accountability in international supply chains, protecting both exporters and their Lesotho clients.
There are, however, downsides. The system introduces new administrative responsibilities, including contracting agents, updating internal systems, modifying invoice templates and maintaining accurate declaration records. Exporters will incur additional compliance costs, whether through agent commissions or fixed fees. During the transition period, increased documentation requirements may temporarily slow the processing of consignments, particularly where exporters have not finalised their agent appointments. The involvement of an additional third party in the supply chain may also require adjustments to communication workflows, freight scheduling and systems integration.
Mayet & Associates Attorneys is registered in Lesotho as an official Agent of a Foreign Firm, duly licensed under the country’s business and customs framework. This means we can act as a legally recognised representative for exporters, assist in obtaining the Agent Code Certificate, draft compliant agency agreements, update invoice templates, and coordinate with clearing agents and RSL to ensure seamless cross-border compliance. We also support exporters seeking exemption where applicable and advise on ongoing customs, licensing and documentary requirements. Our role is to ensure that exporters experience no disruptions at the border and remain fully compliant with the new regulatory environment.
The new system marks a significant change in how goods move into Lesotho, but with the right partner and preparations, exporters can transition smoothly. For businesses that export regularly, now is the time to finalise agent appointments, align internal processes and avoid clearance delays as the 1 September 2024 deadline approaches. Mayet & Associates stands ready to assist with all cross-border, licensing and customs compliance needs to ensure uninterrupted trade into Lesotho.