Kenya implements Regional Electronic Cargo Tracking System
 Tuesday, 24 January 2017 05:47:06 |
The Kenya Revenue Authority (KRA) has launched the Regional Electronic Cargo Tracking System (RECTS), connecting with Rwanda and Uganda in reducing the cost of cargo transportation along the Northern Corridor.
This follows a July 3 2014 directive by the Northern Corridor Heads of State Summit in Kigali, compelling Kenya, Rwanda and Uganda to embrace e – monitoring of transit cargo along the corridor through a harmonized system to enable seamless flow of cargo.
The new system replaces the existing Electronic Cargo Tracking System (ECTS) where monitoring is done independently through stand-alone platforms. This forced KRA officers to toggle between screens, therefore making the process very tedious and ripe for abuse.
“Over the years, the cargo volume along the corridor has been increasing steadily, hence the need to facilitate quick movement of cargo without compromising customs security controls,” said KRA Commissioner Julius Musyoki, “Challenges such as revenue leakages, unfair competition in the business environment and increased costs of doing business necessitated a review of the current ECTS.”
RECTS has been financed by the United Kingdom Department for International Development (DFID), through TradeMark East Africa. According to Frank Matsaert TradeMark East Africa (TMEA) CEO, RECT’s efficiency will ingrain fair terms of
trade by creating a level playing field for both importers and local industries as it helps in eliminating diversion of cargo.
The new system will largely facilitate trade along the Northern Corridor as it lowers the cost and time of doing business. It is also expected to curb theft and diversion of goods destined for markets within the Northern Corridor through the port of Mombasa.
RECTS is a harmonized system connecting Kenya, Rwanda and Uganda. It presents 24/7 Central Monitoring Centres (CMC) in Nairobi, Kampala and Kigali with a view of the entire region.
It also consists of 12 Rapid Response Units consisting of Customs and Police Officers along the Northern Corridor. The new system also comprises of smart gates and automatic number plate recognition at the port gates and borders. This eliminates manual data capture and reduces the dwell times at the borders and port gates.
RECTS brings along better cross border coordination and transit monitoring, improved voluntary compliance with transit laws and regulations. It also ensures that minimal costs are used in enforcement hence better revenue collection.
There is also an aspect of transparency in cargo tracking since stakeholders are given access to the system. The RECTS system triggers an alarm whenever there is a diversion from the designated route or an unusually long stopover.
The decision by the Northern Corridor Heads of States to implement the RECTS is a move towards improving tax collection and employing advanced technologies to facilitate handling of cargo and data along the corridor.
Source: TradeMark East Africa.
Region to adopt its own UCR format
| Wednesday, 25 January 2017 05:47:06 |
The East African region is expected to adopt its own format for issuing Unique Consignment Reference (UCR). This was said at a technical committee meeting held for customs, trade facilitation, transport and planning, in Nairobi from 16- 20th May 2016.
A UCR is a reference number for customs use which binds information about a trade transaction, from initial order and consignment of goods by a supplier, to the movement of those goods and arrival at the border, and through to their final delivery to the importer.
The proposed UCR will be generated both at the national and regional levels and will be based on the 2011 World Customs Organization (WCO) recommendation format. It will have a maximum length of 35 alpha –numeric characters without any special characters such as space. The first two characters are reserved for the last two digits of the calendar year in which export takes place. The next 2 characters will be reserved for UNLCOD/SWIFT code of the country from where the exports originated, for example KE-Kenya, UG-Uganda, RW-Rwanda etc. The next 10 characters identify the trader as they are known by the revenue authority. The last 21 characters are either a sequential number or other unique number such as the invoice number, consignment number, order number et ce tera.
The UCR concept will be driven by the national revenue/customs authorities.
A declarant will apply for the UCR through a web interface supplied by the revenue /customs authority as an add-on to the existing customs management system or through a linked module.
The meeting, convened by the Northern Corridor Transit and Transport Coordination Authority (NCTCCA), also discussed among other issues, the delays in approval of manifest for containerized vessels at Mombasa Port and in mapping of manifests from KRA to URA systems, bunching of trucks at Mariakani weighbridge as a result of most truck setting off late for their transit journey from Mombasa, and lack of parking yards, verification, storage facilities and quarantine posts at border stations. Various recommendations were suggested to deal with these challenges.
ECTN trial ends of 18th May 2016
| Tuesday, 17 May 2016 07:14 |
On March 3, 2016, the Shippers Council of Eastern Africa issued a notice announcing its Partnership with Antaser in respect to a commencement of a three month pilot on the advance Cargo information system (ECTN) in Kenya from March 18th – May 18th, 2016.
The trial was a follow –up to a feasibility study undertaken and which established that the system has the potential to significantly reduce the period within which intervening authorities involved in the process of clearance of imported cargo in the Eastern Africa region receive information and requisite documentation for clearance of goods both at the customs services department (CSD) and other interveners at the port of Mombasa. Currently the Ship Manifest, which is the principal document for clearance of goods, becomes available to the CSD and other interveners only 48 hours before the arrival of shipments while the ECTN provides information up to 480 hours in advance.
Antaser and Shippers Council of Eastern Africa acknowledge and appreciate the support and cooperation that the shippers, service providers from various stakeholders and government departments accorded to us during the trial period. The feedbacks and data derived during the trials has provided very useful information to complete our feasibility findings.
SCEA has commenced the analysis and is reviewing the data collected during the trial period and advice the Government accordingly. Following the successful piloting, notice is hereby given that the trial period comes to an end on May 18th, 2016 and the ECTN will no longer be applicable for exports to Kenya. The results of the pilot will be shared with relevant Government and regulatory agencies to determine its applicability and relevance in our trade logistics environment. We once again thank you very much for the support.
Fate of the Kenya-Uganda oil pipeline to be known in April
| Friday, 01 April 2016 06:43 |
President Uhuru Kenyatta and his Ugandan counterpart Yoweri Museveni will meet in Kampala in a week’s time to deliberate on the technical presentations by Kenyan and Ugandan energy officials on options of constructing the pipeline through Kenya.
This comes after the initial meeting held earlier last week seemed to end in a stalemate.The two leaders heard technical presentations on options of constructing the pipeline from Hoima on lake Albert through Kenyan “northern route” through the oil fields of Lokichar, the Kenyan “southern route” through Nakuru with a loop to Lokichar, and finally through Hoima to Tanga in Tanzania.
However the two leaders asked the technical teams to harmonize their presentations to focus on ensuring a least-cost option for a regional integrated pipeline, addressing constructability issues along all routes, and existing and planned infrastructure, terrain and elevations. They also want an assessment and confirmation of the current proven reserves which will have an impact on the size of the pipeline and the viability of the ports of Lamu, Mombasa and Tanga as export options.
SOLAS convention implementation draws near
| Friday, 01 April 2016 06:40 |
The International Maritime Authority’s (IMO) Maritime Safety Committee (MSC) in May 2014 approved changes to the Safety of Life at Sea (SOLAS) convention regarding a mandatory container weight verification requirement for shippers worldwide. In November 2014, the IMO adopted the mandatory amendments to the International Convention for the SOLAS Chapter VI, Part A, Regulation 2 on cargo information. The new requirement comes to effect on 1st July 2016 and mandates shippers whose name appears on the bill of lading to verify the gross mass of a container carrying cargo before tendering the container to the ocean carriers and terminals.
This essentially means that the shipper of a packed export container, regardless of who packed it, must provide the container’s verified gross weight (VGW) to the port terminal representative and the ocean carrier prior to loading on a ship. The vessel and terminal operators are required to use the VGW in vessel stowage plans and are prohibited from loading a packed container aboard a vessel without it.
The amendment was in recognition of the problems associated with misdeclared cargo weight such as damage to the port terminal facilities, railway and road damage, endangering of road users, uneven weight distribution across the ship which may cause instability and damage to the ship, lost cargo and damaged containers at sea causing environmental concerns, and the impact on the health and safety of crew and stevedores.
It is estimated about 20% of container accidents in the world are due to weight under-declaration, cargo misdeclaration, insufficient securing/supporting and incorrect cargo distribution in container. Four accidents involving container vessels between 1998 and 2006 caused estimated losses of US$75 million per accident.
A technical committee led by Kenya Maritime Authority (KMA) was established to progress the implementation in Kenya. So far they have drafted regulations and procedures, and conducted awareness workshops in Nairobi and Mombasa in March 2016. Tanzania has started piloting with a few shippers.
The Shippers Council signs MoU with KAM
| Friday, 01 April 2016 06:31 |
The Shippers Council of Eastern Africa (SCEA) signed a memorandum of understanding with the Kenya Association of Manufacturers (KAM) on Friday 18th March 2016 marking a new era of heightened partnership between the two organizations.
The MoU, which will be in force for the next three years, will see the two organizations collaborate on areas of mutual interest such as advocacy for improved policy and trade environment, training shippers and manufacturers on their rights and obligations in trade, holding networking forums, amongst others.
Specifically, SCEA and KAM will conduct joint trainings as well as studies in the maritime sub-sector, supply chain and trade logistics, non-tariff barriers and government regulation and procedures affecting seamless flow of traffic in the region, among others.
KAM is one of the founding members of the Shippers Council and has continued to support the efforts of Council. The MoU points to further commitment by KAM to support SCEA to achieve its mandate and make an impact in Kenya’s trade competitiveness.
Rwanda, Oman, Chad and Jordan submitted their instruments of acceptance to WTO Director-General Roberto Azevêdo, bringing the total number of ratifications over the required threshold of 110. The entry into force of this agreement, which seeks to expedite the movement, release and clearance of goods across borders, launches a new phase for trade facilitation reforms all over the world and creates a significant boost for commerce and the multilateral trading system as a whole.
Full implementation of the TFA is forecast to slash members' trade costs by an average of 14.3 per cent, with developing countries having the most to gain, according to a 2015 study carried out by WTO economists. The TFA is also likely to reduce the time needed to import goods by over a day and a half and to export goods by almost two days, representing a reduction of 47 per cent and 91 per cent respectively over the current average.
Implementing the TFA is also expected to help new firms export for the first time. Moreover, once the TFA is fully implemented, developing countries are predicted to increase the number of new products exported by as much as 20 per cent, with least developed countries (LDCs) likely to see an increase of up to 35 per cent, according to the WTO study.
DG Azevêdo welcomed the TFA's entry into force, noting that the Agreement represents a landmark for trade reform. He said:
“This is fantastic news for at least two reasons. First, it shows members' commitment to the multilateral trading system and that they are following through on the promises made in Bali. Second, it means we can now start implementing the Agreement, helping to cut trade costs around the world. It also means we can kick start technical assistance work to help poorer countries with implementation.
“This would boost global trade by up to 1 trillion dollars each year, with the biggest gains being felt in the poorest countries. The impact will be bigger than the elimination of all existing tariffs around the world.
“But this is not the end of the road. The real work is just beginning. This is the biggest reform of global trade in a generation. It can make a big difference for growth and development around the world. Now, working together, we have the responsibility to implement the Agreement to make those benefits a reality.”
The Agreement is unique in that it allows developing and least-developed countries to set their own timetables for implementing the TFA depending on their capacities to do so. A Trade Facilitation Agreement Facility (TFAF) was created at the request of developing and least-developed countries to help ensure they receive the assistance needed to reap the full benefits of the TFA and to support the ultimate goal of full implementation of the new agreement by all members.
Developed countries have committed to immediately implement the Agreement, which sets out a broad series of trade facilitation reforms. Spread out over 12 articles, the TFA prescribes many measures to improve transparency and predictability of trading across borders and to create a less discriminatory business environment. The TFA's provisions include improvements to the availability and publication of information about cross-border procedures and practices, improved appeal rights for traders, reduced fees and formalities connected with the import/export of goods, faster clearance procedures and enhanced conditions for freedom of transit for goods. The Agreement also contains measures for effective cooperation between customs and other authorities on trade facilitation and customs compliance issues.
Developing countries, in comparison, will immediately apply only the TFA provisions they have designated as “Category A” commitments. For the other provisions of the Agreement, they must indicate when these will be implemented and what capacity building support is needed to help them implement these provisions, known as Category B and C commitments. These can be implemented at a later date with least-developed countries given more time to notify these commitments. So far, notifications of Category A commitments have already been provided by 90 WTO members.
As of today, the following WTO members have accepted the TFA: Hong Kong China, Singapore, the United States, Mauritius, Malaysia, Japan, Australia, Botswana, Trinidad and Tobago, the Republic of Korea, Nicaragua, Niger, Belize, Switzerland, Chinese Taipei, China, Liechtenstein, Lao PDR, New Zealand, Togo, Thailand, the European Union (on behalf of its 28 member states), the former Yugoslav Republic of Macedonia, Pakistan, Panama, Guyana, Côte d’Ivoire, Grenada, Saint Lucia, Kenya, Myanmar, Norway, Viet Nam, Brunei Darussalam, Ukraine, Zambia, Lesotho, Georgia, Seychelles, Jamaica, Mali, Cambodia, Paraguay, Turkey, Brazil, Macao China, the United Arab Emirates, Samoa, India, the Russian Federation, Montenegro, Albania, Kazakhstan, Sri Lanka, St. Kitts and Nevis, Madagascar, the Republic of Moldova, El Salvador, Honduras, Mexico, Peru, Saudi Arabia, Afghanistan, Senegal, Uruguay, Bahrain, Bangladesh, the Philippines, Iceland, Chile, Swaziland, Dominica, Mongolia, Gabon, the Kyrgyz Republic, Canada, Ghana, Mozambique, Saint Vincent & the Grenadines, Nigeria, Nepal, Rwanda, Oman, Chad and Jordan.
Source: World Trade Organization
