EAST AFRICAN COMMUNITY

1. EAST AFRICAN COMMUNITY THE EAC CUSTOMS UNION KENNETH BAGAMUHUNDA DIRECTOR CUSTOMS EAC GRAND REGENCY HOTEL, NAIROBI June, 29TH 2005

2. Background Customs Union is entry point to economic integration process Protocol was concluded and signed in March 2004 Ratified by the Partner States in December 2004 Came into effect on 1st January 2005

3. EAC Customs Union One Customs territory common external tariff (CET) Program for elimination of internal tariff removal of non tariff barriers common rules of origin. common standards of products produced and imported

4. Characteristics cont. common and harmonized trade policies creating one trading bloc common export promotion mechanism within the Community common Customs Management Act (EAC -CMA) applicable in the Partner States

5. BASIC TENETS OF EAC CU Uniform and systematic nomenclature- Harmonized Commodity Description and Coding System Production and exchange of customs and trade information Uniform standard system of valuation Simplification and harmonized trade documentation

6. Tenets cont. Simplification and harmonization of customs formalities/procedures Standard transit control Common procedures for the establishment and operation of export promotion schemes Prevention, investigation and suppression of customs offences Harmonized information system to facilitate sharing of customs and trade information

7. Broad aspects of EAC CU Communication of customs and trade information Trade facilitation Simplification, Standardization and harmonization of trade information and documentation Export promotion Trade dispute mechanism

8. Application of ICT in customs Focus of Customs modernization programs Improve revenue Facilitate trade Social protection National security Investment promotion Export promotion Trade data

9. Legal frame work of e-Customs under EAC EAC Customs Management Act- IT application in Customs formalities Allow users of Customs Computerized systems Accessibility Registration Offences by users

10. Status of ICT applications in EAC UGANDA & TANZANIA Asycuda version 2 Asycuda ++ KENYA Boffin Trade X/ Guinde

11. Customs areas identified for ICT application Transit monitoring Risk management ( risk profile, risk analysis &intelligence analysis) Post clearance audit systems DTI/ EDI- self declaration and assessment Valuation - GATT Valuation Inventory Control- Warehousing and transit sheds

12. Processing of goods declaration Tariff and documentation control Revenue accounting Trade statistics MIS Electronic payments Release notification Bond management systems/ electronic bond retirement

13. Benefits enhanced customs control reduced cargo clearance times closer cooperation and rationalization of activities with other border control agencies uniform application of customs legislation increases transparency and predictability for the business sector reduced exercise of officer discretion

14. benefits enhanced management information efficient revenue collection and accounting accurate and timely trade statistics effective deployment of human and technical resources accurate information for risk management and post-clearance audit purposes

15. Challenges Regional oriented developing a harmonised ICT policy and legal framework for the Partner States creating an electronically connected trade community in the region traders, banks, shippers, warehouse operators, guarantors, regulatory agencies infrastructure impediments narrow focus of the functional scope of customs from the regional perspective

16. National challenges slow rollout of applications to customs stations few trained officers in IT fields parallel manual and automated systems

17. challenges Lack of integrated and interfaced IT systems between stakeholders and Customs e.g. banks, handlers/brokers and traders Slow adaptation to IT technological advances Structural duplication in IT planning and implementation

18. Way forward Harmonized customs computerization policy Develop an EAC Customs computerization strategy Integrated information exchange network- interconnectivity Joint border infrastructure Integration of applications for the various tax heads under international trade

19. Training IT applications and customs technical fields Mainstreaming the existing systems within the regional framework In-house ICT systems Off-the shelf solutions Harmonised EAC customs procedures

20. Specific initiatives Integrated regional transit cargo monitoring system Joint border programmes/ control EAC classification, valuation and administrative rulings system

21. Interconnectivity of customs systems systems audit and quality assurance in customs Capacity building

22. ASANTE SANA EAC SECRETARIAT ARUSHA JUNE 2005