In an effort aimed at revitalizing Liberia’s rubber sector and fostering inclusive economic growth, President Joseph Nyuma Boakai, Sr., has signed Executive Order No. 151, instituting sweeping measures to restrict the export of unprocessed rubber and promote domestic value addition.
The Executive Order, effective immediately, seeks to transition Liberia’s rubber industry from an extractive, raw-material export economy into a value-added, job-creating sector that supports GDP growth, employment, and export earnings.
“For too long, Liberia has exported its rubber in raw form, forfeiting opportunities for domestic manufacturing, job creation, and increased revenue,” President Boakai stated. “This Executive Order is a turning point. We are laying the groundwork for industrialization, value addition, and long-term economic transformation.” He noted.
Key Provisions of Executive Order No. 151:
• Export Restriction: The export of unprocessed rubber—including natural latex, cup lump, bark scrap, ground scrap, and other forms listed under Schedule A—is now restricted. Only processed rubber such as Technically Specified Rubber (TSR) is exempted.
• Tax and Fee Requirements: Exporters must comply with new fiscal obligations, including a 4% presumptive tax, Rubber Development Fund Incorporated (RDFI) fees, and a surcharge of USD $150 per metric ton.
• Export Permit Protocol: Exporters must present official tax and fee receipts, a valid tax clearance, and secure approval from the Ministry of Agriculture, followed by an Export Permit Declaration (EPD) issued by the Ministry of Commerce and Industry.
• Post-Export Taxation: Exporters are required to remit an Advance Income Tax of 4% (small taxpayers) or 2% (medium/large taxpayers) immediately after export.
• Strict Penalties for Noncompliance: Entities that falsify documents or evade the provisions of the Executive Order will face a USD $50,000 fine for the first offense, with repeat violators subject to additional penalties and revocation of export privileges.
The Ministry of Agriculture will lead the enforcement of this Order, in coordination with the Ministry of Finance and Development Planning, the Ministry of Commerce and Industry, the Liberia Revenue Authority, and the Rubber Development Fund Incorporated. Joint administrative guidelines will be issued to ensure smooth implementation.
This decision aligns with the President’s broader vision to strengthen domestic industries, enhance Liberia’s export competitiveness, and create sustainable livelihood opportunities for Liberians. Former President George Manneh Weah in 2023, imposed moratorium on the exportation of unprocessed natural rubber from Liberia, with the goal of promoting local trade .
Weah’s Executive Order details that the rubber sector of Liberia has been greatly affected by abuse, misuse, and theft over the period. Therefore, in order to curb the situation, the government believes that further strategy is necessary so that proper policies can be developed and an appropriate institutional and regulatory framework can be established to curb retrogression, sustain the development of the industry, and stimulate growth.
The policy was signed by President George M. Weah in November 2023.
“From the date of this Executive Order, there shall be no exportation of unprocessed natural rubber from Liberia until otherwise advised,” the executive order declared. “Unprocessed natural rubber shall be defined as the raw material tapped from rubber trees, not having gone through any processing to change its physical or chemical composition; or natural latex, coagulum, cup lump, tree lace, bark scrap, ground scrap, and any other form of unprocessed or processed natural rubber (including concentrated latex and dry rubber produced or derived from the latex produced by rubber trees).”
The order said that the Ministry of Commerce and Industry, the Ministry of Finance, or any other government agency shall not issue or authorize the issuance of any export permit for unprocessed natural rubber from Liberia.
“That within 30 days of the issuance of this Executive Order, the Ministry of Commerce and Industry, in conjunction with the Ministry of Agriculture, shall make a special effort to provide access to domestic markets for Liberian rubber farmers in remote areas who rely primarily on cross-border trade in unprocessed natural rubber,” it read.
It further mentioned that all customs officers and law enforcement authorities at points of entry and exit to and from the Republic of Liberia, whether by land, sea, or air, shall stop and prohibit the exportation of all consignments of unprocessed natural rubber from the Republic of Liberia.
“That transporting or moving unprocessed natural rubber outside of rubber plantations between the hours of 8:00 p.m. and 6:00 a.m. shall be prohibited. Individuals found transporting or moving unprocessed natural rubber during those hours shall be stopped by the plant protection force or law enforcement authorities. Any person found to be in violation of this Executive Order shall be prosecuted by the Ministry of Justice, the Executive Order said.
Firestone, the largest rubber planter in Liberia, is the major buyer of unprocessed rubber. The company has possessed a monopoly on the market over the years. However, some time ago, the company stopped the purchase and shipment of huge quantities of rubber due to capacity issues.
The Executive Director of the Rubber Development Fund (RDF), Julius Sele, stated that the ban on the exportation of unprocessed natural rubber by the Liberian government is something welcoming.
He said the move will stimulate economic growth in the rubber sector, thereby improving the livelihood of small scale farmers and contributing immensely to the government’s revenue.
According to him, this is also going to reduce criminality in the rubber sector and create competition among concessions that are venturing into or doing processing.
“We can’t continue to have people exporting rubber. It is depriving the government of the needed revenues and income generation for local processors,” he said.
Sele explained that the moratorium on the exportation of rubber will create competition in the rubber sector.
“This policy will not only allow Firestone to buy rubber from farmers as perceived, but other concessions will have the opportunity for purchase,” he said.
Nevertheless, the RPI Executive Director revealed that stakeholders had since called on the government to renew the Executive Order, but the government has delayed reinstituting it.
In 2008, the government, to remediate the decline in the rubber sector due to theft, issued Executive Order No. 16. But since that time, the situation facing the rubber sector has continued, and the government has failed to take action.
This move drawn public outcry especially from local farmers that their rubber were been hash to low purchase by major buyers. There were growing accusation that the moratorium placed on unprocessed natural rubber by former president Weah issued an Executive Order No. 124 was to protect Indian Businessman Jeety.
Liberia has a long history of rubber as one of its natural resources dating as far back in 1926 with the establishment of the American owned Rubber company known as the Firestone Rubber Plantation.
Unarguably, rubber has been one of the major sources of Liberia revenue income, with the sector serving as one of the job markets for many Liberians. Sadly so, for 98 years of existence as a rubber producing country and finding itself in the 16th place among the world rubber producing countries, Liberia has not been able to produce any tangible thing made from rubber in Liberia.
Although, there has been unease tension surrounding the working, and purchasing conditions as well as the agreements signed between the Liberian state and rubber companies, but it is worth noting the progress the government of Liberia has made since 2008 to transition from just producing and exporting the unprocessed rubber, to placing a ban on unprocessed rubber for the sole intent of encouraging the production of rubber materials in Liberia.
Why the ban on unprocessed natural rubber?
On November 10, 2008, President Sirleaf considering the economic role that the rubber sector plays in the economy of Liberia, issued an Executive Order No. 16 with the sole intention of taking concrete action to curtail the decline in the Liberian rubber industry. It is noted in the Executive Order that: Accordingly, the Executive Order was intended to eliminate what the government called “the misuse of government resources and all other corrupt practices”. The Order noted that the rubber industry was part of the state economic, providing the highest single source of annual revenue for the government and at the same time providing more employment opportunity for Liberians in the country. “NOW, THEREFORE, with the intention of taking immediate steps to curb the decline in the Liberian rubber industry until appropriate policies and frameworks can be put in place to improve the situation of the rubber industry in the longer term in order to ensure redevelopment, new development, increased production, increased job opportunities and increased revenue to government, it is hereby ordered as follows.” The Order
Section 1 of the Order also states: “That from the date of this Order, there shall be no exportation of unprocessed natural rubber from Liberia until otherwise advised. Unprocessed natural rubber shall be defined as the raw material tapped from rubber trees, not having gone through any processing to change its physical or chemical composition; or natural latex, coagulum, cup lump, tree lace, bark scrap, ground scrap and any other form of unprocessed or processed natural rubber (including concentrated latex and dry rubber produced or derived from the latex produced by rubber trees. For purposes of this Executive Order, “processed rubber” shall mean latex concentrate, technically specified rubber (“TSR”) and other dry rubber or grades of rubber that are generally considered to be processed rubber by the natural rubber industry worldwide.”
In the exercise of the Executive power vested in the President by the constitution of Liberia, President Sirleaf on April 28, 2014, issued another Executive Order No. 60 to replace Executive Order No. 16 and 50 banning the exportation of unprocessed natural rubber from the country. Hence, as a matter of reinforcing the Executive Orders No 16, 50, and 60 issued by former President Sirleaf, the government of Liberia under President George Manneh Weah, in 2023 issued an Executive Order No. 124 banning the exportation of unprocessed natural rubber due to the gross abuse, absolute misuse, and rampant stealing of unprocessed natural rubber, and the subsequent exportation of it with no benefit to government and people of Liberia.When the need was becoming so overwhelming for Liberia as one of the oldest rubbers producing countries to transform its rubber sector, it took a long-lasting consultative trend with actors involved to arrive at the decision of banning the exportation of unprocessed natural rubber.
It was a hard decision, but the government was under obligation to have placed the ban on unprocessed natural rubber in the interest of the state and most of the people, to safeguard the rubber industry, change the narratives of Liberia’s rubber history of producing rubber and can’t produce even “rubber plate, rubber ban, or tires in the country.”
The Executive Order No. 124 banning the exportation of unprocessed natural rubber states that “From the date of this Executive Order, there shall be no exportation of unprocessed natural rubber from Liberia until otherwise advised,” the executive order declared. “Unprocessed natural rubber shall be defined as the raw material tapped from rubber trees, not having gone through any processing to change its physical or chemical composition; or natural latex, coagulum, cup lump, tree lace, bark scrap, ground scrap, and any other form of unprocessed or processed natural rubber (including concentrated latex and dry rubber produced or derived from the latex produced by rubber trees).”
