Influence of Customs Trade Facilitation Activities On Transit Time Along Kilindini -Malaba Route
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Date
2018
Authors
Ochieng, Victor A
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Publisher
KESRA/JKUAT - Unpublished research project
Abstract
The 2014 Northern Corridor Trade and Transport Logistics Stakeholders’ Survey highlighted challenges of delays in manifest approvals for containerized vessels from submission of import declaration forms to when KENTRADE maps it on the KRA systems (NCTTA, 2014). Consequently, vessels bunch at the Kilindini Port because of the long waiting time. Non-approval of pre-clearance of cargo by the KRA customs was highlighted as a major challenge. Further, the study highlighted the challenge on non-automatic cancellation of bonds after goods successfully leave Kenyan territory that causes much delays. Regarding the integration of information technology, the study highlighted slow integration of ASYCUDA and SIMBA for transit goods. These findings that point to long transit time between Kilindini and Malaba prompt the necessity to audit and assess the measures set by customs and border control department to facilitate transit trade. In this context, this study sought to determine the influence of customs trade facilitation activities on transit time along Kilindini-Malaba Route. Based on Article 11 of AFT, transit processes should conform to international best practices. Transit, being a key customs process, should be regularly subjected to performance measurement in an attempt to highlight areas of improvement. The framework set by the OECD’s transit-specific performance indicators form a reasonable benchmark upon which to measure the performance of transit formalities. Implementing the best practices set by the OECD would result to a transit system that is facilitative to trade as outlined in Article 11 of ATF and responds to challenges facing the 21st century customs. In essence, a highly facilitative transit management system should result to shortest transit time. In Kenya, the customs and border control department has set diverse trade facilitation activities to ensure transit goods from Kilindini port destined to partner states through Malaba border are cleared within the shortest time. This study intends to determine the influence trade facilitation activities on clearance at the port, on transit guarantees and on clearance at the border on transit time along Kilindini-Malaba transit route. Based on review of literature, it is ascertained that the Jordanian transit system is ideal in ensuring the shortest transit time and responds to 21st century challenges to customs’ operations. The target population in the study were 150 licensed clearing agents trained authorised to lodge transit entries from Kilindini through Malaba to partner states, both on Simba 2005 and partner states’ systems platforms on the Automated System for Customs Data (ASYCUDA) under electronic single window system since December 2017. Study adopted survey design by use of questionnaires administered to sample size of 109 clearing agents who lodge transit entries through Single Customs Territory using ASYCUDA and Simba 2005. A total of 74 valid filled questionnaires were collected and analysed. The results from the questionnaires were analysed using Statistical Package for Social Science (SPSS) software version 20. From the analysis, there existed a strong positive relationship between transit clearance at the port, transit guarantees and transit clearance at the border, and transit time. A linear regression model was derived being, transit time=5.181 + 0.180 clearance at the port + 0.459 transit guarantees + 0.57 transit clearance at the border. This study sets the Kenyan customs administration at a credible position for its constant efforts to implement diverse transit-specific trade facilitation measures particularly along the Kilindini-Malaba section of the Northern Corridor. Focus should be on constant improvement of trade facilitation activities related to transit clearance at the port, transit guarantees and transit clearance at the border to reduce, to minimum, the transit time as recommended under Article 11 of ATF on “Freedom of Transit.” The full integration of SCT is a plausible to advance to electronic single window system to lodge transit goods. It is recommended that a further study be carried out on the influence of having an East African Regional AEO status by clearing agents on transit time along Kilindini-Malaba route.
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Keywords
Trade Facilitation, Transit Time