The effect of electronic cargo monitoring on trade facilitation in Kenya
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Date
2020
Authors
Wandera, Margaret Khamala
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Trade globalisation and establishment of economic blocks and agreements have led to increase in export and importation level of goods and services across national boundaries. With the increase of trade volume of businesses, there has been need to introduce appropriate facilitation measures during the transportation process and at the border post to ease the process of cargo movement. The ratification of the World Trade Organization (WTO) Agreement on Trade Facilitation also requires that we implement measures to ensure fast movement of goods in transit. One of the common trade facilitation measures is the electronic tracking of imported cargo transiting through Kenya. The use of technologies, for example, Radio-frequency identification (RFID), to track physical flow of physical goods is one prominent system that is envisaged to improve cross-border trade between countries. RECTS is a web- based integrated system used to monitor transit cargo under customs control (whose taxes have not been paid) in Kenya, Rwanda and Uganda from point of Loading to final destination within the mentioned countries. The study aim was to establish the effect of electronic cargo monitoring on trade facilitation in Kenya. Specific objective was to determine the effect of electronic cargo monitoring on trade facilitation in Kenya and EAC region as well as its effect on customs processes. The research adopted an exploratory research design and focus on the structure of an enquiry with an aim of drawing inferences from a causal relationship of the data. The target respondents were transporters, cargo tracking department officers (transit and monitoring Unit), rapid response team and customs officers at Busia one stop border post with purposive and convenience sampling designs to be employed to aid in identifying the respondents. Given the small population, census approach was adopted. The researcher therefore worked with 95 respondents. Primary data was collected using a semi-structured questionnaire. Secondary data was obtained from the Transit Monitoring unit office of the Kenya Revenue Authority Customs & Border Control department. The findings aimed at determining whether E-monitoring adopted by Kenya Revenue Authority will be able to reduce transit cargo diversion to local market as well as reducing the time taken to clear the cargo at the border points and the collection of duties and fines. The findings indicated that implementation of the ECTS has improved border efficiency, reduced transit time and time taken to clear goods at the border. Finally, the study finding indicated that due to the implementation of the system, clearance of cargo at the border point has been hastened and the collection of duties and fines made easier. Based on the study findings, the study concludes that electronic cargo tracking system has a positive impact on cross-border trade. The study recommends that a further study should be carried out to establish the challenges facing cargo tracking system on cross-border trade between Kenya and other neighbouring countries.
Description
Research Project
Keywords
Cargo Monitoring, RECTS, Regional Electronic Cargo Monitoring, Trade Facilitation, Information sharing, Electronic sealing