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East Africa: Delays At Border Points Slow Down EAC Trade
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Business Daily (Nairobi)
14 May 2008
Posted to the web 14 May 2008
Jim Onyango
Kilindini harbour and the Malaba and Busia border posts have been cited as the main hindrances to trade because of sluggish cargo clearance.
Kenya Revenue Authority officials say it takes an average 10 days to clear goods at some of the ports, and added that the planned introduction of a one roof system at Namanga, Malaba and Busia border posts would speed up the process.
At the end of the restructuring programme, it will take about two to three hours to clear cargo, said Wambui Namu, the commissioner for customs and service department. KRA says the move is aimed at enhancing revenue collection.
Various border operations currently handled by different offices will be conducted at one office once the system is completed in 2010. The new system will allow parties involved in trade and transportation to process all necessary documents at one place, a move that will save money and ease congestion at border points.
The Timeline Release survey found out that time spent at border custom checkpoints contributed to time wastage and additional costs. The East African Community 2006/07 Business Index launched by the East African Business Council also noted that people doing business in Kenya encounter trade impediments such as prolonged customs procedures, time wasting police road checks and weighbridges stations, rigorous licensing and work permit regimes and tedious business registration process.
The business index reported that businesses people crossing into Kenya lost an average two hours daily due to delays arising from customs and immigration procedures.
"Currently cargo is cleared in open spaces ...subjecting them to hazards such as rain and bad weather. The infrastructure is not ideal for cargo clearance," Ms Namu.
KRA yesterday held a meeting for revenue officials from Uganda and Tanzania, importers and exporters to brief them of the new operational model that will be implemented at the border posts and container clearance depots .
The outcome of the conference will be one of the agenda items for the fourth Tokyo International Conference for African Development (TICAD) that will take place at the end of May in Japan.
"This demonstrates the value attached to the one stop border post concept as a key driver for the promotion of trade and ultimately accelerated economic growth in the region" said Yoshiyuki Takahashi, the resident representative of Japan International Co-operation Agency, the technical and financial arm of the Japanese government.
Finance assistant minister, Oburu Oginga, said sluggish clearance of goods at the order points was a threat to the strengthening of the East African Corporation.
"Delays in cargo clearance at the border points continue to impose non-tariff barriers that affect trade. The effects of such delays include high cost of doing business, low level of voluntary compliance and high cost of freight in general," he said.
The establishment of the one stop operational system will create a single window approach to cargo clearance and will also strengthen the inter-agency cooperation for efficient border management, said the assistant minister.
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"Revenue Authorities, police, immigration and other relevant authorities at border stations will be able to work together under one roof. Border control operations will be enhanced by exchanging experiences, exchanging operational information and conducting joint operations" said Oginga.
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