5. 2018

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http://10.150.1.119/handle/123456789/2610

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Browsing 5. 2018 by Subject "AEO"

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    Factors affecting uptake of authorized economic operator certification by clearing and forwarding companies in Mombasa
    (KESRA/JKUAT - Unpublished research project, 2018) Ndeto, Lucia Mwongeli ; Mumia Benn MINCU, CPA.K
    This study aims at analysing the factors affecting uptake of Authorized Economic Operator Certification by Clearing and Forwarding Companies in Mombasa. Authorized Economic Operating (AEO) programme are a main component of WCO international standards. The objectives of the AEO programme is to facilitate legitimate trade through faster clearance of cargo hence reducing clearance time, ensuring compliance to customs laws and regulations; improved cargo security along the supply chain; increased revenue collection, embrace modern working methods, procedures and techniques (Audit based controls); and ensure proper documentation for future audits. The statement of the problem shows that very few clearing and forwarding companies in Mombasa have applied to be included in the AEO programmes since 2010. The question is why are these clearing companies avoiding the programme. The objectives of the study were based on the three variables i.e. demonstrated compliance, records management and security standards. The literature review consists of the relevant studies on models of international trade facilitation and the SAFE Framework especially the Authorised Economic Operating Program (AEO). Theories that have been highlighted to back the study are the iceberg model of trade cost, the theory of comparative advantage and the New Trade Theory (Monopolistic Competition). The study adopted the adopted the exploratory research design, which used both quantitative and qualitative approaches to collect data. Data was collected by the use of a questionnaire. The quatitative data was captured with the help of a likert scale while the qualitative data was captured with open- ended questions at the end of each variable. Data analysis was done by the use of the statistical package for social sciences (SPSS). Findings show that most AEO operators have a high degree of compliance with the requirements set forth by the customs department. This leads to an improvement in the facilitation of legitimate trade, and increased revenue collection. Also most of the companies under the AEO programme are ready to install security features in their systems hence sealing all the loopholes in the supply chain. It is recommended that the customs and border control department should roll out a sensitization programme to enlighten all the players in the import and export business on the requirements of enrolling in the AEO programme and its benefits. Since the cost of setting up security standards for the SAFE Framework is prohibitive the customs and border control department should consider setting up an incentive plan for all operators who join the program to encourage uptake and compliance.