Effect of Customs procedures on trade facilitation at the port of Mombasa in Kenya
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Date
2019
Authors
Kasila, Christine N. ; Mumia Benn,MINCU, CPA.K
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Customs procedures in trade facilitation lead to enhanced capacity for revenue collection, improved efficiency and reduction in the time and costs of trade transactions. Despite the implementation of customs procedural reforms to facilitate, traders in the East Africa region incur a whooping US$7 million annually in costs due to bureaucracy and red tape. There is inefficiency in clearance at the port of Mombasa in Kenya. The study examined the effects of customs procedures on trade facilitation performance at the port of Mombasa in Kenya. The study specifically examined the effects of customs licensing process, customs verification and release process and customs enforcement procedures on trade facilitation performance at the port of Mombasa in Kenya. The study was founded on the coordination theory, stakeholder theory and unified theory of technical acceptance and use of technology. Descriptive survey research design was adopted by the researcher. The study targeted 506 respondents, 190 customs officers and 316 clearing firms’ employees based in Mombasa. A sample of 224 respondents was involved in the actual study and selected through stratified sampling. The researcher tested the research questionnaire’s reliability and also ensured its validity before undertaking the main study. The supervisor was consulted in order to ensure content validity of the research questionnaire. Cronbach ‘s alpha coefficient was used to test the reliability of the research questionnaire. Data was collected using self-administered structured questionnaires. Descriptive statistical tools included frequency analysis, percentage analysis, mean and standard deviation. Inferential statistical tools were Pearson Product Moment correlation and multiple regression analysis. Tables were used in presentation of study findings. The study found out that customs licensing procedure has an insignificant negative effect on trade facilitation performance at the port of Mombasa in Kenya (β1 = -.026; p >0.05). It was determined that enhancing customs verification and release procedure leads to enhanced trade facilitation performance (β2 = 0.182; p < 0.05). It was established that enhancing customs enforcement procedures leads to enhanced trade facilitation performance (β3 = 0.540; p < 0.05). It was concluded that enhancing customs verification and release procedure and customs enforcement procedures results in enhanced trade facilitation performance. To KRA, this study recommended improvement of customs procedures in trade facilitation to enhance trade facilitation performance. This study will guide the adoption of customs procedures meant to ensure trade is facilitated in order to enhance the growth and development of Kenya’s economy.
Description
Keywords
Trade facilitation