Effects of authorised economic operator (AEO) framework on trade facilitation in Kenya.
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Date
2019
Authors
Njagi, Arnold Eddie Njoka
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Kenya Revenue Authority (KRA) among the various government agencies tasked with trade facilitation. It plays a critical role not only in providing expedited clearing processes but also in implementing effective controls that secure revenue, ensure compliance with national laws and ascertain security and protection of the society. In Kenya the prevailing inefficiency of trade documentation processes and lack of consultations with stakeholders when it comes to implementation of new policies has also been seen as a hindrance to trade facilitation.
This study sought to determine the effect of the AEO programme on Trade facilitation in Kenya. The target population under study here was Clearing and Forwarding firms that were AEO compliant, out of which the researcher drew a sample of 23 firms using Simple random sampling. Data was collected using a well-structured questionnaire which sought to employ a Likert scale in its questions so as to ensure objectivity and straight forward answers. The data collected was analysed using SPSS and STATA, which are statistical softwares. The data analysed showed that the AEO programme had a positive effect on Trade facilitation in Kenya and the researcher recommended that Customs strengthens its collaboration with businesses so as to promote Trade facilitation.
Regular communication on matters, customs, security and compliance was the most effective aspect of the AEO programme when it comes to Trade facilitation. This is due to the fact that it caused an increase of 31% to trade facilitation as compared to preferential treatment (27%) and mutual recognition (31%). The researcher recommended that Customs strengthens its collaboration with businesses so as to promote Trade facilitation.
Description
PROJ 382.3095 NJA
Keywords
Authorized Economic Operator, Trade facilitation, Research design