Kenya risks losing track of the movement of goods and massive clearance levies if the new multibillion-shilling integrated customs management system, which is in the process of being awarded by the Kenya Revenue Authority, is not aligned with the regional codification practices which are fully supported by dependent customs management systems.

All the East African Community countries, except Kenya, are already using the Automated System for Customs Data, which predisposes Kenya to implement a system that can seamlessly interface with Asycuda to fully monitor movement of goods and cross border transactions.

“The government has already sought bids for the provision of an automated customs management system from interested suppliers. It has forecasted 2015 as the year when the new system will be piloted. Although the change to an integrated custom management system would be costly to the government, the benefits derived from the EAC integration will supersede the expenses and eventually be worthwhile for both the government and individual traders,” a report, Tax Matters, by Pricewater House Coopers released in June last year says.

With the current single customs territory, Asycuda users from Uganda and Rwanda are clearing goods before their arrival in Mombasa.

Other EAC revenue authorities monitor the arrival of goods from Mombasa using the transit facility of Asycuda up to their border with Kenya.

Nonetheless, transit of goods across Kenya is very well-monitored, but by other EAC revenue authorities. What the Kenya Revenue Authority needs is a system which is able to exchange customs declaration information with Asycuda.

The system should be adopted by EAC member states, majority of whom are landlocked and depend on the Mombasa Port for importation.

Asycuda was developed by the United Nations Conference on Trade and Development in 1985.

The system was created by then UNCTAD director, now Webb Fontaine CEO and founder.

He implemented the Trade Data Elements Directory set of codes now used in the region.

“The progressive elimination of trade barriers between EAC countries and the customs union (like EU) with clearance being made at the point of entry for all EAC countries (basically Mombasa and Dar es Salaam) can only be effective if KRA decides to align with regional codification and practices,” A senior source at KRA said.

The single window system was launched last year.

Among the countries that rely on the Mombasa port include Rwanda, Uganda, South Sudan, Burundi and the Democratic Republic of Congo.

The Electronic Single Window System serves as a single entry point for parties involved in trade and transport to: Lodge documents electronically for processing and approval; and make payments electronically for fees, levies, duties and taxes due to the government on goods imported or exported.

At the border posts, the ESWS is expected to reduce the time required to clear cargo on transit and intra-regional trade consignments to a maximum of one hour.

Other benefits expected include greater harmonisation and better sharing of the relevant data across government departments, transparency and effectiveness of official controls, enhanced revenue collection, reduced cost of doing business for both the government and the business community and reduction in transaction time.

Source: All Africa

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