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THE ROLE OF CUSTOMS IN REDUCING PORT CONGESTION Wambui Namu 25 th September 2008 Nyali Beach Hotel, Mombasa. Presentation overview. 1. Mandate and Objectives/strategic goals 2. Geographical Presence 3. Trade Facilitation Role 4. Reforms Undertaken 5. Decongestion initiatives

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  1. THE ROLE OF CUSTOMS IN REDUCING PORT CONGESTION Wambui Namu 25th September 2008Nyali Beach Hotel, Mombasa

  2. Presentation overview 1.Mandate and Objectives/strategic goals 2. Geographical Presence 3. Trade Facilitation Role 4. Reforms Undertaken 5. Decongestion initiatives 6. The Envisaged Future 7. Constraints vs Benefits

  3. Our Profile/Mandate • A constituent part of Kenya Revenue Authority and accounting for 40% of total revenue collected. The primary function of Customs Services Department (CSD) is to collect and account for import & export duty as well as VAT on imports. • Apart from its fiscal responsibilities, the Department is also responsible for : • Facilitation of legitimate trade; • Protection of society from illegal entry and exit of restricted and prohibited goods; and • Collect, collate and compile trade statistics

  4. Strategic Goals • Improve service delivery through quick clearance of cargo • Eliminate paper transactions by adopting electronic processing of documents • Adopt a modern and open transaction processing system capable of interfacing with other internal and external systems

  5. Geographical Presence

  6. The paradigm shift from paper to electronic based applications has improved the efficiency of Customs processes. Reduction of Clearance Time through continuous business process improvement. Regular Time Release Studies to identify and address any bottlenecks in the cargo clearance processes by the various cargo interveners. Promote compliance levels through continuous engagement of stakeholders. Trade Facilitation Role

  7. Metamorphosis

  8. Decongestion Initiatives • Centralised, On-line 24 hours Document Processing • Electronic Payments through banks • 24 hours port operations to complement the transaction processing • Licensing of Container Freight Stations • Risk Management Unit, with plans to integrate with other government agencies • Compliant trader scheme (AEO)

  9. Decongestion Initiatives • Use of non-intrusive cargo verification techniques • Transparency in information access • KRA website • LEUK • Empowering the trade through KRA-facilitated training • Combination of enforcement measures e.g. auctions, punitive action for non-compliance, suspension/revocation of licenses, naming and shaming etc.

  10. Decongestion Initiatives

  11. The Simba System • Automated cargo clearance system Achievements Reforms Undertaken or Underway

  12. Constraints vs Benefits

  13. The Envisaged Future

  14. The Envisaged Future

  15. The Envisaged Future

  16. The End Thank you for your attention ?

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