1. 17th – 18th September, 2015- Nairobi, Kenya
1ST CBC TRANSPORTERS AND LOGISTICS SERVICES DIALOGUE
Towards Improved Trade Facilitation and Reducing The Cost of Doing Business in the Transport and Logistics Services Industries
17th – 18th September, Nairobi, Kenya
Hadi Abdullahi, Chief Manager, Customs & Border Control

2. Presentation Outline Introduction and role of Customs
Implementation of Single Customs Territory ( SCT )
Removal of road blocks and reduction of weighbridges
Reduced customs documentation
Customs processes automation
Availability of information
Harmonization of customs processes and laws
Consultations with stakeholders on goings
Replacement of physical escorts with ECTS
Post Clearance Audits on customs processes
Drastic reduction on transit period

3. Introduction and the role of Customs
The goal of trade facilitation is to reduce the transaction cost and complexity of doing business. Benefits of trade facilitation are felt across all stakeholders involved in trade. For customs / the government, there is increased compliance level while the traders enjoy efficient and effective transactions which automatically lowers the cost of doing business.
The role of customs has changed from the primary goal of collecting revenue to trade facilitation by enabling successful balance between effective control measures and facilitation of trade.

4. Trade facilitation measures initiated by Customs
Implementation of Single Customs Territory (SCT)
SCT is a stage towards full attainment of Customs Union. It is achievable by the removal of restrictive regulations, minimization of internal border controls on goods moving between the Partner States with the ultimate aim of free circulation of goods.
Under SCT, goods imported into the Customs Union are entered only once in the country of destination and released at the first port of entry to the destination Partner States.

5. Removal of road blocks and reduction of weigh bridges
In Kenya, road blocks along the gazetted transit route were removed to ensure smooth flow of transit goods. As a result of this, transit period for example from Mombasa to Malaba / Busia border points has reduced from an average of 18 to 3 days.
Trucks destined for Partner States through Kenya are weighed only once as opposed to the numerous weighbridges which were in place before the implementation of the SCT.

6. Reduced Customs documentation
15/06/2018
Reduced Customs documentation
As a result of the implementation of SCT, customs documentation has drastically reduced. Goods destined to Partner States are only entered once at the destination state thus bringing an end to the procedure of making customs declarations in each partner state the goods are to pass through.
15/06/2018

7. Availability of information
15/06/2018
Availability of information
Accurate and timely information is an essential tool of trade. Customs continuously ensures that pertinent information is easily accessible on the website of Kenya Revenue Authority without unnecessary restrictions.
Information on applicable customs forms, advance rulings, customs procedures and laws may be accessed and downloaded from the website at any time.
Traders and other stakeholders do not necessary have to travel to Customs offices to obtain information or forms.
15/06/2018

8. Custom processes automation
Customs has automated almost all of its processes. Customs developed, maintains and enhances the Simba System to ensure that it is up to date and relevant in the economy based on technological advancements. Declarations are made at the comfort of clearing agent’s offices. Once a declaration is made, it is processed vide the system and the agent is in a position to access the processing status of entry / declaration at any time.
On valuation issues, agents / importers are informed of pending queries vide the Simba system and are able to provide additional documentation in support of the declared values
Manual processes are tedious, slow and ineffective which reasons continuous to inspire customs to automate their processes.

9. Harmonization of Custom processes and laws
East African Community has harmonized some of its laws especially on customs matters. The East African Community Customs Management Act, 2004 (EACCMA) is the law applicable across the EAC Partner States on Customs matters. Section 253 of EACCMA stipulates that this Act shall take precedence over the Partner States’ laws with respect to any matter to which its provisions relate.
Thus where there is a conflict between EACCMA and the Partner States national laws, then EACCMA shall take precedence and prevail over the national laws.

10. Consultation with stakeholders on goings
In deciding customs matters which affect other stakeholders in the field, customs is increasing constituting forums where the stakeholders can air their views before resolution of the matter.
For example, on meetings / forums on SCT’s all stakehoders are invited to attend and give their input which is critical to smooth implementation of the SCT.
In future, this ensures ease of adoption of SCT or any other program by the stakeholders thus increasing the compliance levels.

11. Replacement of physical escorts with ECTS
Electronic Cargo tracking System is a system which utilises an electronic devise fitted to trucks to monitor the trucks location at all times. The ECTS software is linked to customs Simba system to ensure that customs officer may at any time locate a truck. In addition, an deviation of the truck from the gazetted route is conveyed to customs on a real time basis in an alert form.
Consequently, the need to physically escort trucks from the entry point to the exit point was done away with the implementation of ECTS. Physical escorts were inefficient to some point and costly as compared to ECTS whose benefits outweigh the escortation of trucks physically.

12. Drastic Reduction of transit time
Performance Management Policy was developed in 2008.
Has been in use since then.
Was revised and approved in April, 2015 to align it to the constitution , national values, corporate core values, recommendations of the job evaluation and to be in tandem with Human Resources best practices.

13. Implementation of a regional Bond
EAC is developing a framework for a regional bond. This will ensure that once a security bond is put up in the first entry Partner State, the bond ir recognised in all other states where the goods will go through. This avoid the inconvenience and cost of having to secure a security bond in each partner State the goods have to go through.
The framework is being worked on and we believe positive results will emanate from it.

14. Post Clearance Audits on Custom processes
Post clearance Audits are measures which customs satisfies itself as to the accuracy and authenticity of declarations through the examination of the relevant books , records and business systems held by concerned persons. Due to the application of this tools, custom measures/ controls on importation/ transit of goods are minimal to ensure the basic requirements are met.
This leads to efficient release of goods from customs control in turn reducing the related costs incurred in storage of goods at customs area.

15. Conclusion
Effective systems in Customs are a prerequisite to exploit the opportunities of international trade. A measured balance needs to be maintained between effective control measures and trade facilitation.
THE END
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