TRANSFORMING CUSTOMS FROM A NATIONAL TO A REGIONAL LEVEL IN A FULLY FLEDGED CUSTOMS UNION Exchange of Information and Customs Interconnectivity in the Customs Union TRANSFORMING CUSTOMS FROM A NATIONAL TO A REGIONAL LEVEL IN A FULLY FLEDGED CUSTOMS UNION Exchange of Information and Customs Interconnectivity in the Customs Union Peter Malinga Uganda Revenue Authority 30/10/09 1

Contents Setting the Scene for Transformation –Pre-requisites for effective exchange and interconnectivity in the Customs Union –The need for Administrative Transformation –Transformation and Reform Objectives of the subject Conducive Environment Benefits to the customs union Way forward 2

Pre-requisites for effective Customs Union Information exchange- e.g manual, electronic. Increasing Customs interdependency in regional trading blocks is a norm rather than an exception Availability of enabling infrastructure and mutual trust 3

Pre-requisites for effective Customs Union (c’nd) The need for administrative transformation Transformation and reform Co-operation with the private sector – e.g. The importers, exporters, freight forwarders, banks etc. 4

Objectives in the Customs Union To expedite the clearance of goods, passengers and means of conveyance. Better coordination of customs controls. Facilitation of international trade. 5

Current Strengths/ Opportunities Interconnectivity of Customs IT systems -The Revenue Authorities Digital and Data Exchange (RADDEX) currently operational in KE, TZ, UG & RW. Improved IT infrastructure in the Partner States e.g e-banking Enabling Legal Instruments e.g EAC Protocol, CET, CMA which provides for exchange of information for the establishment of OSBP 6

Current Strengths/ Opportunities (c’nd) Close co-operation in policy formulation e.g. Budget process going beyond customs. Strong Political Will. Support from Development Partners 7

The Benefits Effective risk Analysis through appropriate selectivity and targeting. Faster clearance of goods e.g 20 min at Malaba. Efficient trade administration. Reduce costs for clients doing business in the Customs union. Growth in Government Revenue. 8

CHALLENGES Lack of adequate resources both for the internal and regional levels. Capacity of the private sector Capacity in other government agencies 9

Way forward Align modernization initiatives e.g. Joint Border Posts, Single Window, Authorized Economic Operators. Address the requirements of other stakeholders. Enhance trade information data systems to facilitate information sharing and interconnectivity in the Customs Union e.g. Establishment of e centralized data bank. 10

THANK YOU 11