The_Open_Door_deel1

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December 31, 1977 Liberia levied (1) a flat rate of $ 1.50 per
cubic meter on all tree species cut for commercial purposes,
irrespective of species, grade and intended use (a "Severance
Fee"), and (2) a rate which distinguished between species
intended for export in the round form (an "Industrialization
Incentive Fee") and for wood products intended for export in
other than round form such as lumber, planks etc (a "Forest
Products Fee"). The Industrialization Incentive Fees varied
between $ 50 per cubic meter to $ 2 per cubic meter, according
to species. The Forest Products Fees varied between | 40 per
cubic meter to $ 1 per cubic meter, according to species and
degree of processing. Furthermore, (3) a "Reforestation Fee" of
$ 3 per" cubic meter was levied on the net volume of logs
harvested (56),
Despite the relatively low level of stumpage fees levied on
round logs and sawn timber, the 1970's are marked by an
increasing tendency to safeguard the interests of the Liberian
Treasury - though much remains to be done in view of the noncompliance
of many logging companies with the legal
requirements. Regrettably, a general conclusion must be that
the potential of large revenues which the forest products
industry offered was not realized by the Liberian Government-
A clear example of this loss of potential revenue is the basis
for the stumpage fee assessed on the country's most valuable export
species, Sipo ("Entandrophragma utile"). The world market
price for Sipo was $ 500 per cubic meter in 1977 (57) which
caused the Tolbert Administration to increase the stumpage rate
from $ 36 (per cubic meter) in 1976 to $ 50 (per cubic meter)
as of November 1, 1977 (58). The second most important export
species, Niangon, ("Herittiera utilis") in the same year fetched
a world market price of | 111.50 per cubic meter (f.o.b.
Ivory Coast) (59) and hence saw its stumpage rate increased fro
S 21.60 to $ 25.00 (60).
This is the more important in view of the fact that these two
species have traditionally dominated Liberia's timber exports.
E.g. in 1975 these two alone accounted for 57 per cent of the
country's total timber exports (61). This latest figure does no
even take into account the fact that the illegal export of logs
most likely included the more valuable export species (which
were charged with the highest stumpage fees).
A comparison of Liberia with a country that definitely is not
characterized by a very progressive legislation with respect tc
the exploitation of its forest resources - Ivory Coast - is sti
flattering for the latter. Already at the end of 1974 investors
in logging activities in the Ivory Coast were facing the
following charges:
(I) Forest taxes: an "Allocation Tax" ("Taxe de Premiere
Attribution") equalling 12 5,000 F.CFA per permit*,
further an "Area Tax" ("Taxe de Superficie") which
* 230 F.CFA = $ 1.00; the Ivorian system is to give "chantiers
2,500 hectares (= 6,175 acres) as harvesting areas instead o.
large concessions as in Liberia;