Returning Resident to Lesotho? Claiming Rebate 407.04 for Duty-Free Import

Rebate 407.04 is a special provision by the Lesotho Revenue Authority that allows Basotho returning from abroad to import a vehicle with substantially reduced duty. Here is how to qualify and claim it.

What Is Rebate 407.04?

Rebate 407.04 provides a reduction (not full exemption) of customs duty for returning residents. The exact reduction depends on the vehicle's value and the applicant's circumstances. It is one of the most generous returning resident concessions in the region.

Eligibility Criteria

• Must be a Basotho citizen (Lesotho passport holder)
• Must have lived outside Lesotho for 12+ continuous months
• Vehicle must have been owned and personally used for 12+ months before return
• Only ONE vehicle per individual
• Import must be completed within 6 months of your physical return

The 20-Month Restriction

Under Rebate 407.04, the vehicle cannot be sold or transferred for 20 months from the date of import. If you sell it within this period, the buyer must pay the duty that was rebated. After 20 months, you have full ownership rights with no restrictions.

Documents Required

• Valid Lesotho passport with entry stamps showing 12+ months abroad
• Work permit, visa, or residence permit from the country of residence
• Original vehicle registration/title from country of residence
• Purchase invoice dated 12+ months before return
• Bill of Lading and shipping documents
• Rebate 407.04 application form (from LRA)
• Proof of Lesotho address (utility bill or lease)

Application Process

• Complete the Rebate 407.04 application form before shipping
• Submit with supporting documents to LRA for pre-approval
• Ship the vehicle to a Lesotho port of entry
• Present pre-approval letter at customs clearance
• Pay any remaining duties (VAT may still apply)
• Complete pre-delivery inspection
• Register the vehicle with the Ministry of Transport