Factors affecting the detection of temporary admission fraud at the Port of Mombasa
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Date
2020-11
Authors
Thuo, James
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
The international trade volume has exponentially increased in the past six decades. However this pace of growth in international trade has not been matched with the resources mobilized by Customs and reinforcements have been limited. So as to stimulate export sector competitiveness, various duty and tax relief schemes have been designed to make sure imported goods meant for further processing or exhibition and later exported are exempted from tax and duty payment. There is lack of actual figures showing the magnitude of goods admitted temporarily in the country. The customs procedures does not provide for the mechanism to track those goods which have been let to the country on temporary admission. The purpose of the study is to investigate the factors affecting temporary admission fraud detection in port of Mombasa. The study specific objectives were to examine the effect of customs procedures on temporary admission fraud detection, to establish the effect of risk profiling on temporary admission fraud detection and to determine the effect of customs enforcement tools on temporary admission fraud detection in Mombasa port. The study was grounded on human capital theory, technology acceptance model and fraud diamond theory. The study adopted descriptive research design and target population of the study was 187 Customs staff tasked with tax and duty administration in Kilindini port.The study employed stratified sampling technique and adopted Slovins formula to obtain a sample of 127 participants. The study utilized both primary data and secondary data. Primary data was collected by use of structured questionnaires while the study utilized secondary data materials collected from port imports reports and incidence reports. The researcher adopted drop and pick later method to distribute the questionnaires to the respondents. Pilot study was carried out to ascertain the validity and reliability of data collection tools. The collected data was analysed, summarized and tabulated by use of SPSS software version 25. Descriptive analysis and inferential analysis was used to summarize the results for each of the study objectives. research findings also showed that respondents agreed to the statement that the temporary importation clearance process is efficient and the post-clearance follow-up is done by the customs officers. The study established that the Customs use scanners on the port of entry and the Customs has adequate cameras to detect imports fraud as well as tracking devises linked to central systems to prevent temporary admission fraud. The study concludes that the Customs department conducts risk evaluation based on the revenue involved before subjecting the case to the audit section of Kenya Revenue Authority. The study recommends that the Customs department should design and implement efficient and simple processes to be applied in clearance of temporary admission imports. These procedures would make it possible to clear and track the cargo while in the country. The department should heavily invest in tools of identifying risks which should be reliable and efficient. These tools would help to detect and prevent temporary admission fraud.
Description
Keywords
Fraud, Customs Procedures, Risk profiling, Customs enforcement tools, Temporary admission