Post-Clearance audit and customs revenue collection: a case study of Namanga border station
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Date
2019
Authors
Mwaniki, Kennedy Mwangi
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Post-clearance audit (PCA) is the verification, review or audit of customs declarations through
the examination of books, records, systems or other documentation held by traders or their
agents after the goods have been ―released‖ from customs control. It is a key control
methodology to facilitate the movement of goods through a risk-based selection process that
moves border management organizations from a purely transaction-based process to an audit
based approach. The study aimed to find out the effect of Post Audit Clearance on Customs
revenue collection at Namanga border station, Kenya. The study was guided by the following
specific objectives:- to determine the effect of selection of audit cases on the customs revenue
collection in in Customs and Border Control Department at Namanga border station, to find
out the effect of audit visits on the customs revenue collection in Customs and Border Control
Department, Namanga station and to assess the effect of pre arrival clearance on Customs
revenue collection at Namanga border station.The study adopted descriptive research design.
The study target population was 350 Clearing Agents and KRA Staff. The study sample size
was 35. This study used primary data collected through questionnaires. A pre-test on a different
sample was carried out to give a Cronbach‘s alpha greater than 0.7 for all the variables as a rule
of thumb. Data analysis was done by use of descriptive statistics and inferential statistics using
Standard statistical techniques including Pearson correlation coefficient and regression analysis
employed in the analysis. All the analysis was done using the statistical package for social
sciences (SPSS Version.24). Analysis of variance (ANOVA) used to establish if there is a
statistical significance between the observed and expected values with the Pearson Chi square
giving the degree significance of the relations, hence establishing the hypotheses. The study
found out that selection of audit cases, audit visits and pre-arrival clearance had a significant
positive effect on customs revenue collection. Based on the findings, this study therefore recommends that the management of the customs department should ensure that the post
clearance audit procedures are followed to the letter, the government of Kenya should formulate
more policies to support and govern customs audit visits. This study further recommends that
more policies should be formulated to govern pre-arrival clearance of goods imported from other countries
Description
Keywords
Post-clearance Audit, Revenue Collection