At least 107 states are set to open up customs and port procedures by the end of this year, easing cross-border movement of goods across the world. The states are expected to sign the Trade Facilitation Agreement (TFA) in Nairobi by December 18 during the World Trade Organisation’s first ministerial conference in Africa.
“The TFA can make sure that trade really works. This is why it is so important to put it into effect as soon as possible. The ratification and entry into force of the TFA must be high on every WTO member’s agenda,” said Foreign Affairs and International Trade secretary Amina Mohamed who will chair the December global event.
Under the TFA protocol, each signatory will have to publish procedures and documentation required for importation, exportation, and transit via port, airport, and border points.
They must also provide shippers with details of tax, regulatory fees, rules for the classification or valuation of products for customs purposes, rules of origin, penalties, procedures for appeal and trade restrictions.
“Each member (signatory) shall adopt or maintain procedures allowing for the submission of import documentation and other required information, including manifests, in order to begin processing prior to the arrival of goods with a view to expediting the release of goods upon arrival,” the TFA reads in part.
The TFA protocol is one of the proposals that the trade ministers agreed on at the Bali Conference held two years ago. It is supposed to enter into force once two-thirds of the WTO’s 161 members have completed their domestic ratification processes.
To live up to its expectation of easing movement, release and clearance of goods, member states must invest in equipment and technology infrastructure. It further contains provisions that allows developing states such as Kenya to receive technical assistance from rich countries. Kenya is already ahead of the pack in the region having invested heavily in ICT upgrade of its port and custom systems.
From January, the country has been implementing a single customs territory model of collecting tax, bringing into the fold Rwanda and Uganda. It has also put millions of shillings into ICT upgrade of operations in Mombasa. From July, the country has been applying the single electronic window system that allows traders to access and file regulatory documentation online.
The TFA states: “Each Member shall, as appropriate, provide for advance lodging of documents in electronic format for pre-arrival processing of such documents.” It adds: “Each Member shall, to the extent practicable, adopt or maintain procedures allowing the option of electronic payment for duties, taxes, fees, and charges collected by customs incurred upon importation and exportation.”
The protocol requires signatories to release goods even as authorities use information supplied to them to determine customs taxes and other regulatory charges.
Source: Business Daily

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.