Business Daily (Nairobi)
Ben Sanga
22 April 2008
Nairobi — The Kenya Revenue Authority (KRA) has contracted Hi-G-Tek Inc, a leading radio frequency identification (RFID) solution developer, to help it fight transit cargo diversion.
The firm will instal an electronic cargo tracking solution, called Hi-G-DataSeal, on transit goods to monitor them from dispatch until they have crossed the borders.
All the import stakeholders are upbeat that the solution would be of great help in curbing theft of cargo destined for neighbouring countries.
"The introduction of that tracking system will mark a significant milestone in trade facilitation in the region because it would enhance transport operations," said Kenya Ports Authority (KPA) Harbour Master Captain Twalib Khamisi.
Foreign country representatives in the KPA stakeholders meeting last week also called for KRA to further incorporate neighbouring countries in the initiative.
"Once partner states embrace the technology, the seal would be checked and removed at the final destinations of the cargo such as Rwanda, DRC, Burundi or any other regional country. And that is what we are calling for," said a customs expert Mr Lisumbu Eliombo.
Hi-G-Tek Inc, the company behind the solution, is reputed for providing sensing and control solutions for tracking high-value cargo and sensitive materials for a Kazakhstan-based systems integrator, Science Technical Centre (NTC), which implemented a cargo monitoring system for the Customs Control Agency (CCA) of Kazakhstan.
By using the Hi-G-Tek's (RFID), Kazakhstan's NTC designed and installed a solution which has assisted in cargo monitoring at several major Kazakhstan border checkpoints between China and Russia, said the company director, Mr Martin Bjerre.
And the timing could not have been better as the country is currently experiencing a flooding of transit cargo in the domestic markets, despite a protracted fight by KRA against the vice.
If successively unveiled, Hi-G-DataSeal would replace the conventional mechanical seal, and at large do away with the current cumbersome escort of cargo to the border points.
"The DataReader can interrogate the Hi-G-DataSeal at long range; containers are continuously 'connected' to the security network. This tracking and sealing verification process is undertaken at every potential data collection point: at exit/entry gates, transit stations/ weighbridges and storage areas." Mr Bjerre explains.
DataSeal would also contain a special sealing wire, which would alert the security system and record any attempt at opening, bypassing, shielding or tampering with the seal, says Mr Bjerre.
Another commendable feature of the solution, the expert points out, is its capability to automatically collect data from DataSeals 'on the move', a situation which ensures maximum security even at times of high-density cargo traffic.
KRA has in the past introduced several measures to curb the diversion of transit cargo though the vice continued to go on as unabated.
Among the measures are that police and KRA officials escort all transit cargo from the port to the point of exit. KRA has also planted staff in the Customs Department who monitor the movement of transit cargo.
KRA also introduced the Simba system to monitor the bond - which was recently increased to a record Sh10 million for transit cargo.
The fight over transit cargo diversion did not end there either, and the taxman recently introduced new rules which require transporters to register for a company transit licence at Sh100, 500 and increased the transit goods licence fee up from Sh10,000 to Sh42,000.
And last week, a KRA official at the KPA weekly stakeholders' meeting told participants that the electronic seal would curb transit cargo diversion, which has been a headache for the taxman.
"The solution would be able to detect any form of tampering of the seal fitted on the cargo, the point where the cargo has reached, and the degree of such interference," said an officer who sought anonymity for protocol reasons.
However as the solution installation continues and expected to be unveiled in a month's time, the Kenya Transporters Association (KTA) has already raised eyebrows accusing KRA for unveiling several measures, which do not yield fruit.
"We were so excited when KRA introduced the simba system, but surprisingly we have not seen any fruits out of it. This time round in as much as the new venture could sound a perfect song to our ears we want to be involved from its initial stages," said executive committee member Ibrahim Pasta.
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