VZCZCXRO8557
PP RUEHMA RUEHPA
DE RUEHAB #0296/01 1291250
ZNR UUUUU ZZH
P 081250Z MAY 08 ZDK
FM AMEMBASSY ABIDJAN
TO RUEHC/SECSTATE WASHDC PRIORITY 4215
INFO RUEHZK/ECOWAS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 ABIDJAN 000296 
 
SIPDIS 
SENSITIVE 
 
EEB/TPP/BTA SAGURTON AND AF/EPS REPKO 
DEPARTMENT PASS TO USTR CONNIE HAMILTON 
DEPARTMENT OF COMMERCE FOR MARKET ACCESS AND COMPLIANCE 
MARIA RIVERO 
TREASURY FOR DAN PETERS, RICHARD HALL 
 
E.O. 12958: N/A 
TAGS: ECON ETRD PREL PGOV IV
SUBJECT: NEW CUSTOMS DIRECTOR DISCUSSES RETURN OF CUSTOMS 
CONTROL TO NORTH; VALUATION OF IMPORTED VEHICLES 
 
 
¶1.  (SBU) Summary. Cote d,Ivoire,s new Customs Director, 
Col. Alphone Mangly, expects the redeployment of customs 
officials to the north of the country to begin the week of 
May 12.  In an April 30 meeting, Mangly told Ambassador 
candidly that he was not certain how the customs officials 
would work with elements of the Forces Nouvelles (FN) but 
said the latter were "eager" for professional customs 
officers to return to work.  At Embassy,s request, Mangly 
agreed to look into the system currently used by the Customs 
service to valuate vehicles imported from the U.S.  The 
adjustment we are seeking could translate into increases in 
U.S. exports worth millions of dollars. End Summary. 
 
¶2.  (SBU) Ambassador and EconCouns met newly-appointed 
Customs Director Colonel Alphonse Mangly in a cordial meeting 
on April 30.  Mangly succeeds Col. Gnamien Konan, who in 
early April declared his candidacy for the presidency in 
elections scheduled for November 30.  The discussion touched 
on the topics of the proper valuation of cars imported from 
the U.S. and plans to reunify the national Customs 
directorate ("la unite de caisse") through a gradual 
redeployment of Customs officials at border points and key 
cities in the north, most of which are still under the 
de-facto control of the Forces Nouvelles (FN) rebel group. 
 
Reunification of the Customs Directorate in the North 
-------------- 
¶3.  (SBU) Ambassador asked Mangly about published reports 
that the government will soon reintroduce the Customs network 
of border officials and revenue collection points throughout 
the north.  Mangly said that along with disarmament, the 
"unite de caisse" is a key factor in the normalization of the 
country and extension of the government's writ through the 
whole territory in advance of the November 30 presidential 
election.  Mangly said the Customs service would be sending 
18 officials to the north the week of May 12.  On May 15, 
they would be officially "deployed" at the main border post 
with Burkina Faso at a ceremony which Prime Minister Soro 
reportedly will attend.  According to the 2008 budget, the 
redeployment of Customs nationwide is supposed to generate 
approximately USD 100 million, a substantial sum in tight 
budgetary times. 
 
¶4.  (SBU) Asked about the Force Nouvelles, (FN) acceptance 
of the Customs service's redeployment, Mangly said the former 
rebels are "pressing for us to return."  Mangly admitted his 
own surprise at this, saying he wasn,t sure why the group 
would be eager to see the illicit, quasi-customs revenue 
streams it now collects be diverted to the national treasury. 
 According to Mangly, the FN said they would "provide" 18 of 
their own officials to "facilitate" the Customs officials' 
redeployment.  However, it was unclear to Mangly if the 
Forces Nouvelles' intention is to have the 18 become Customs 
officers, have them work out a revenue "sharing" scheme, or 
serve some other purpose.  He speculated that if FN members 
are hoping to become customs officials, they may be dismayed 
to learn that there is a rigorous process one must first 
complete.  Mangly said he and his agency would "soon find 
out" how this would all work.  If the May 15 redeployment 
goes well, redeployment of the rest of the Customs offices 
including to FN stronghold of Bouake, would take place in the 
coming months. 
 
Promise to Review Valuation of Cars Imported from the U.S. 
------------- 
¶5.  (SBU) For readers background, Cote d'Ivoire is a modest 
importer of autos, with approximately 150,000 used and 
3,000-4,0000 new cars coming in annually.  European brands 
continue to lead the market -- Peugeot and Citroen have a 
reported 45 percent market share, according to a recent 
business publication -- but Asian brands are rapidly 
expanding market share.  With the sustained fall in the value 
of the U.S. dollar relative to the Euro (to which the local 
currently, the franc CFA is pegged), used vehicles from the 
U.S. have become very attractive in comparison to their 
European counterparts, often costing 20-40 percent less. 
Importers report interest is particularly acute in the luxury 
brand lines, but excellent value in autos can be found in all 
U.S. market segments in comparison with the same products in 
Europe. 
 
¶6.  (SBU) Background continued: Ivoirian Customs currently 
charges duties using a valuation chart that assumes imported 
 
ABIDJAN 00000296  002 OF 002 
 
 
vehicles are coming from Europe, even if they are purchased 
in and exported from the U.S., with U.S. bills of sale.  An 
example of this unfair treatment would be the importation of 
the locally-popular BMW 4x4: if an importer purchased a used 
one from Florida for USD 40,000 versus USD 55,000 that he 
would pay in Germany or France, Ivoirian Customs uses the USD 
55,000 value to calculate customs duties, vice the U.S. 
price.  Since auto duties are 44 percent for both new and 
used vehicles, this policy substantially penalizes U.S. 
exports. 
 
¶7.  (SBU) The Ambassador explained to Mangly that numerous 
importers have relayed to the Embassy their concerns about 
how Ivoirian Customs values and taxes cars coming from the 
U.S., and briefly explained the problem described above. 
Mangly readily acknowledged that notionally, the policy is 
incorrect and inconsistent with Cote d'Ivoire's trade 
obligations.  He said autos manufactured in the U.S. should 
be considered from the U.S. for the purposes of customs 
valuation.  He promised to look into the situation and give 
Embassy a formal response shortly. 
 
Customs Service Would Welcome USG Assistance 
-------------- 
¶8.  (SBU) Mangly told Ambassador that Cote d,Ivoire,s 
Customs Service has suffered due to a lack of well-trained 
personnel.  While advanced technology can help the Customs 
service do its job, Mangly said that "machines don't work 
without coordination, discipline and dedication."  Mangly 
mentioned protection of Ivoirian intellectual property 
(particularly traditional wax fabrics) and the fight against 
drug trafficking as top priorities, and asked if the U.S. 
could help with training of Ivoirian Customs officials, 
either bilaterally or in a regional context.  Ambassador 
noted that while Section 508 sanctions impede most forms of 
bilateral assistance, a rapid end to the political crisis 
through free and fair elections could produce an end to those 
restrictions.  Embassy agreed to inform appropriate 
departments of Cote d,Ivoire,s interest in customs training 
should future conditions permit this. 
 
 
¶9.  (SBU) Comment.  Mangly appears to be very much a 
technocrat, a welcome personnel move for a government agency 
so important to the government's fiscal well-being and often 
viewed as highly corrupt.  He gave the impression of being 
genuinely intent on extending his agency's writ countrywide 
and boosting government revenues accordingly.   His response 
to concern about the valuation of imported autos was 
refreshing after nearly six months of stalemated discussions 
with his predecessor.  Post will monitor actual results on 
both issues.  End Comment. 
NESBITT