Factors affecting collection of Customs Trade Statistics at the Port of Mombasa
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Date
2020-05
Authors
Muigu, Eliud ; Mumia Benn MINCU, CPA.K
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Customs Administrations is a government agency that plays a critical role at the country’s border and manages the cross-border flows of goods, people and means of transport to ensure they comply with law. Customs is at forefront of the global business activities with the responsibility, mandate and expertise to inform on what commodities are being exported, imported from where they originate or are transferred to, and the party involved. It is a costly exercise to produce data that are both up to date and precise and requires resources that most developing countries still lack. Most of the studies which have been done indicate that the formulation of procedures pertaining to trade should be easy to follow so that the broad and the medium-sized venture in the international business become easy to understand. Collection of trade statistics is a routinely process that need data generated which assist in determining the likelihood of the set targets being achieved This research paper focused on the study of the factors affecting the collection of trade statistics at the Port of Mombasa. Among the factors studied include the customs system, customs procedures and CET factors that influence the collection of trade statistics. This study was done at the Port of Mombasa. The study objectives are: To determine the effect of customs systems on customs collection of custom trade statistics at the Port of Mombasa. Secondly is to ascertain the effect of custom procedures on customs collection of trade statistics at the Port of Mombasa and lastly to assess the effect of the Common External Tariffs (CET)on customs collection of trade statistics at the Port of Mombasa. To bring this study to a success it adopted resource-based theory, bureaucracy theory and the Stolper-Samuelson Theorem. The researcher employed the cross-sectional survey design. A total of 325 officers were in the Port of Mombasa as at September 2019. The study adopted Slovins Formulae and cluster sampling technique to select respondents from various departments with an aim of providing equal chances. The researcher adopted the questionnaire as the tool for data collection. The drop and pick method were preferred since it is based on social exchange theory in which personal interactions provide a basis to stimulate norms of reciprocity and exchange that increase the chances a respondent will accept and complete the survey. The study targeted and distributed questionnaires to 180 respondents out of which 111 were fully filled. This represented 62 percent which is good and adequate for the study. Data analysis was done using the SPSS version 25.0 and a linear regression model to show the correlation between the independent and dependent variables of the study. The study used KMO and Bartlett’s test to check for the validity of the collection instrument. Karl Pearson analysis indicated that custom systems strongly with a positive correlation affects collection of trade statistics at the Port of Mombasa by 72.7% common external being the second influence by 63.7% and lastly, customs procedures indicated to be having a moderate correlation relationship with trade statistics at the port of Mombasa being supported 58.9% effect on collection of trade statistics at the port of Mombasa. Regression model findings statistically indicate that customs systems by 22.9%, custom procedure at 21.7% and common external tariff by 3.63% affected the dependent variable. The study concludes by opining that utilization of custom systems in collection of trade statistics based on the fact that all the imports and exports have to be longed online using custom systems thus it forms a rich source of obtaining trade information. Customs procedures helps to provide secondary data about the traders such as the compliance level of the trader and forms the basis of profiling the traders and thus the authority should ensure all the set criteria is adhered by anyone involving him/herself on cross border trade. And lastly, use of Common external tariff plays a major role in collection of trade statistics thus non-tariff barriers should be discouraged so as to promote trade among countries as advocated by WTO guidelines.
Description
Research Papers
Keywords
Trade Statistics, Customs systems, Customs Procedures, Common External Tariff, Revenue, Trade balance