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TIME RELEASE STUDY FOR KENYA F.M Thuranira Commissioner, Customs & Excise Department WELCOME.

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Presentation on theme: "TIME RELEASE STUDY FOR KENYA F.M Thuranira Commissioner, Customs & Excise Department WELCOME."— Presentation transcript:

1 TIME RELEASE STUDY FOR KENYA F.M Thuranira Commissioner, Customs & Excise Department WELCOME

2 INTRODUCTION One of WCO’s trade facilitation instruments. Developed by the W.C.O.and adopted by the PTC in 1994. measures the average time between the arrival of goods into Customs territory until their release to the importer/agent. Enables Customs to identify problem areas in the clearance process.

3 Introduction Contd. Calculate the average time for clearance of goods by: – type of traffic, – Customs office and, – Customs regime. Determine the percentage of imports requiring the intervention of other agencies.

4 ORGANIZATION WB and KRA Funding. WCO Technical assistance. TRS core team (KRA). Liaison officers from the stations and regions. TRS working group Core team, liaison officers & stakeholders

5 PROJECT SCOPE Stations to be covered: Kilindini in Msa. ICD Embakasi Kisumu Pier JKIA Malaba Namanga Eldoret

6 SCOPE contd. Transaction types Surveyed: All commercial goods Imports and transits

7 STUDY TIME-TABLE Aug 16th – 30thPhase one to cover North region. Aug 30th – 6th Sept Phase 2 - South and Western Regions Simultaneously. Sept. 20th – 27th Preparation of the report. OctoberPresentation of the draft report. End of December Publication.

8 STUDY METHODOLOGY  Used a Standardized format for data capture. Sampling Design For Namanga, Malaba, Eldoret, JKIA and Kisumu stations, all entries relating to both imports and transit were surveyed. At the busy JKIA and Kilindini stations, every fifth import and all transit entries lodged were surveyed.

9 STUDY FINDINGS.– Overall (dd hh:mm) ProcedureAirportsLand Border Posts Seaports Arrival to removal5 11:260 20:1810 07:53 Arrival to lodgment2 22:210 06:403 20:01 Lodgment to release2 06:180 11:006 12:02 Release to removal0 07:370 02:430 19:42

10 Study Findings Contd: Pre-lodgements. (dd hh:mm) ProcedureAirportsLand Border Posts Seaports Arrival to removal2 10:030 12:015 04:50 Arrival to lodgment0 00:00 Lodgment to release2 14:020 08:154 22:10 Release to removal0 03:450 04:050 13:56

11 Study Findings Contd: Post-lodgments (dd hh:mm) ProcedureAirportsLand Border Posts Seaports Arrival to removal5 14:290 21:4115 23:33 Arrival to lodgment3 01:210 07:387 14:22 Lodgment to release2 05:570 11:278 00:25 Release to removal0 07:470 02:301 02:01

12 Study Findings Contd: By Point of Entry (dd hh:mm) ProcessNRBJKIANAMMBAELDKSMMAL Arrival to removal 8 21:405 11:322 21:4810 14:284 22:3110 08:030 15:26 Arrival to lodgment 3 05:232 22:472 01:123 20:290 19:147 21:040 02:30 Lodgment to release 5 13:382 05:560 17:166 01:324 01:542 10:250 10:27 Release to removal 0 09:410 07:410 05:250 22:020 01:230 00:330 02:29

13 Study Findings Contd: Pre-lodgements by station. (dd hh:mm) ProcessNRBJKIANAMMBAELDKSMMAL Arrival to removal 4 01:332 10:031 02:395 13:8-0 16:150 05:22 Arrival to lodgment 0 00:00 - Lodgment to release 4 00:072 14:020 19:085 03:17-0 16:150 03:47 Release to removal 0 09:460 03:450 10:150 15:10-0 00:000 01:34

14 Study Findings Contd: Post-lodgements by station. ( dd hh:mm) ProcessNRBJKIANAMMBAELDKSMMAL Arrival to removal 16 15:265 14:374 16:5815 19:544 22:31:18 01:010 16:40 Arrival to lodgment 8 09:123 01:494 02:257 09:470 19:1414 04:200 02:48 Lodgment to release 7 20:402 05:340 15:248 02:304 01:543 20:100 11:15 Release to removal 0 09:330 07:510 00:351 05:070 01:230 01:000 02:35

15 Study Findings Contd: Longroom procedures. (dd hh:mm) ProcessNRBJKIANAMMBAELDKSMMAL Lodgment to allocation 1 00:220 16:37-1 05:180 00:21-0 12:08 Lodgment to acceptance 3 09:471 00:350 02:352 09:410 02:520 01:080 12:22 Lodgment to cash office 4 08:241 14:::220 07:192 17:250 03:34-1 04:00 Lodgment to manifest 4 09:231 18:53-3 12:480 04:55-- Lodgment to CDO 5 07:23--5 08:120 03:06--

16 Study Findings Contd. Post-longroom processes. ProcessNRBJKIANAMMBAELDKSMMAL CDO time0 04:53--2 01:530 00:10-- MPRO to KPA 0 04:56--1 05:14--- Dispatch to Sheds 0 12:460 03:22-0 08:330 01:25-- KPA to release MPRO 3 20:02--2 01:44--- Customs request for goods 2 18:300 09:05-1 09:110 00:150 16:290 00:06

17 Study Findings Contd.: Intervention by other agencies ProcessNRBJKIANAMMBAELDKSMMAL Adjustment---0 00:400 20:00-- KEBS intervention 0 04:410 01:190 00:290 01:51--0 00:01 KEPHIS intervention -0 00:20-0 00:09--0 00:05 Port Health intervention 0 00:220 05:54-0 00:09--0 00:05 Intervention by other agencies -0 00:43-0 04:276 07:00-- End of inspection to release 0 04:580 08:410 02:010 04:480 23:180 03:000 00:28

18 Study Findings Contd. Causes of Delay Late lodgement of documents by agents and importers. Intervention by other agencies involved in clearance. Delays in the submission of inward manifest. Computer breakdowns.

19 Study Findings Contd. Causes of Delay Delays in the arrival of original documents required for lodgement. Misdeclarations by Importers or Agents. Delays in submission of payment information by banks appointed to receive collections. Cargo scanning.

20 Study Findings Contd.: Profile of sample entries Dutiable entries comprise 56.4% of total; transit, 20.2%. Entries that are free of physical inspection make up 50.5% of the total; of those subject to physical inspection, 70.5%, 27.5% and 2.3% are subject to random, detailed and scanner inspections respectively. Pre-lodgements account for only 25.6% of import entries. Interestingly, 57% of the lodgements are in the afternoons.

21 Study Findings Contd.: Profile of sample entries The most number of lodgements are made on Mondays (28.1%) followed by Tuesdays (21.5%). At border stations, most lodgements are made on Fridays. All entries are lodged by use of C63 and 96.4% of these entries are declared by appointed agents. Exemption from Customs duties and taxes applies to only 6.8% of import entries.

22 MEASURES TO IMPROVE CLEARANCE TIMES Carry out a comprehensive review of procedures. – ongoing. Automate the revised procedures – ongoing. Emphasise pre-lodgement of declarations. Introduce Risk management and Post clearance audits.

23 TIME RELEASE STUDY FOR KENYA THANK YOU Questions, Comments


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