Effect of anti-smuggling strategies on custom revenue performances on ISEBANIA border – Kenya

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Date

2018

Authors

Cheruiyot, Kibet Benard

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Publisher

KESRA/JKUAT - Unpublished research project

Abstract

The purpose of this study is to determine the effect of anti-smuggling strategies on custom revenue performances on Isebania border - Kenya. The study is guided by the research questions, how does adoption of risk profiling strategy affect custom revenue performances on Isebania border Kenya, to what extent does use of seizure strategy affect custom revenue collection in Kenya, what is the effect of border patrolling strategy affect custom revenue collection in Kenya. The specific research questions are to find out how adoption of risk profiling strategy affects custom revenue performances on Isebania border, to determine how use of seizure strategy affect custom revenue performances on Isebania border, to examine how border patrolling strategy affect custom revenue performances on Isebania border. The study will utilize theories of multiple and social deviance. In addition, the research design that will be adopted for the study is the descriptive research design. In this case, both middle and high level employees of the organization will be assessed. The target population of the study is 200 employees and sample size of 150 employees in the Customs service department. Through sampling method, the data will be collected from the organization. At the same time, primary data will be collected through use of questionnaires and interviews. Majority of respondents believed when customs department intensified and adopt risk management mechanisms, then smuggling across border will be minimized and as such the industries in the country will thrive which in turn lead to the enhanced tax performances. At border post if the border is properly surveillance then goods passing through border will attract custom duties hence increase tax performances. The findings on the extent to which seizure strategy affect custom revenue performances revealed a statistically significant relationship between seizure and custom revenue performances. Many of respondents believed that when the government applied seizure strategy is critical in the prevention of illicit goods flowing across border. If this properly managed will enhances compliances leading to positive growth of domestic industries and improve custom performances. Moreover, domestic industries become competitive if they do not face competition from smuggle goods which are relatively cheaper once they landed into local market which is detrimental to the custom tax growths. The findings on the extent to which risk profiling strategy affect custom revenue collection revealed statistically significant relationship between risk profiling and custom revenue performances. Majority of the respondents believed that risk profiling is essential in enhancing prevention of smuggling through documentation verification and physical scanning ascertains cargo crossing border. Most of the respondents believed that a suitable risk profiling strategy enhanced custom revenue performances while at the same time reducing chance for smuggling. This study concludes that risk management is an essential component of the country anti-smuggling strategy that enhanced custom revenue performances. Risk profiling enhances compliances of customs practices which has the effects on the performances of custom duties and promotes legitimate trade which allows domestic industries to thrive in the country. This study concludes that seizure is important and essential in the country that is seeking to develop and enhanced revenue collection. Seizure mechanisms put in place by the organization do not only enhance revenue collection but guarantee future domestic industries performances. This study concludes that border patrolling is important to custom revenue collection. The study recommends that available risk management should be strengthened in order to reduce smuggling in the country. In addition, seized goods from smugglers should be auctioned to raise tax and channeled into economy to discourage smuggling which has positive custom revenue performances which is essential for economy growth and should not be ignored. Furthermore, Kenya should strengthen surveillances and border control in order to prevent smuggling.

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Keywords

Anti-smuggling, Revenue Performance

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