[KENYA TRADE NETWORK AGENCY]

STANDARD OPERATING PROCEDURE

Kenya Electronic Single Window System

Prepared by

Kenya Trade Network Agency (KENTRADE)

August 30, 2013

The purpose of this document is to present the Standard Operating Procedures

(SOP) for the above mentioned Procedures facilitated through the Kenya

Electronic Single Window System (KESWS)

1

ACKNOWLEDGEMENTS

The Kenya Trade Network Agency (KENTRADE) would like to thank the

Stakeholder organizations who collectively contributed to the development of

this Standard Operating Procedure document. This guidance document would

not have been actualized without their knowledge, time and effort.

DISCLAIMER

While all the efforts have been made to ensure that the document is error free,

KENTRADE welcomes any omissions identified after finalization of the document.

Mention of trade names or commercial products does not constitute

endorsement or recommendation for use.

2

STANDARD OPERATING PROCEDURE APPROVALS:

Revision Number: 1.0 Effective Date: 31st October 2013

Approved by Trade Facilitation Manager: Daniel Kiange

Sign:……………………………… Date:……………………………………

Approved by Project Director: Amos Wangora

Sign:…………………………… Date:……………………………………

1. Introduction

1.1 Purpose

The purpose of this Standard Operating Procedure (SOP) document is to

describe the standard procedures to be followed by the Kenya Electronic Single

Window System (KESWS) users.

Procedures must be in place to ensure the accountability, traceability, and

consistency of activities while using the Single Window System. Once signed-off

and approved, the SOPs document will serve as a roadmap to assist

stakeholders in the use of KESWS.

The procedure should be easily accessible to the users who interact with KESWS

or the Stakeholders systems one way or the other. The SOP should be used in

conjunction with the KESWS user guide that provides specific details regarding

use of the KESWS.

1.2 Scope

This SOP document highlights the procedures having a bearing on international

trade and logistics procedures i.e. import, export and transit related

transactions.

1.3 Document Convention

The document captures the procedures using elaborate descriptions of the step

and also presents graphical representation of the steps. The following

process/steps symbols are used:

Process Diagram Symbol Meaning

An activity within a process

1

Process Diagram Symbol Meaning

Process Start and End

Decision

Single document or Product

Electronic Data

Direction of Process flow

1.4 Context Diagram

The context diagram defines the boundary between the Kenya Electronic Single

Window System and its environment, showing the entities that interact with it

including the Payment Gateway and the other Stakeholder systems. This

diagram is a high level view of the system and having an understanding of the

modules will put the SOPs to perspective.

The diagram is as follows:

2

Kenya Electronic Single Window System

(KESWS)

Clearing Agent

Shipping Line/

Agent

KPA KWATOS

KRA SIMBA

Payment Gateway

Government

Agencies

PPB

TBK

Port Health

KEPHIS

HCDA

DVS

KEBS

TRADENET

OGA Module Risk

Management

Module Risk Parameters

OG

A R

ele

ase

up

da

tes

Importer/ExporterRequest MD

& CD

Approval

MD & CD

Approval/

Rejection

Traders lodge

Documents

Regulatory Agencies

Process lodged Docs

Query Risk Profile

Response hit

profle

3

2. Procedures

2.1 Procedure for Security Bond Application

SOP Number: Title: Procedure for Security Bond Application

Revision No: Effective Date: 31/10/2013

Issued By: TRADE FACILITATION MANAGER Date: 31/10/2013

Approved By: KRA Date: 31/10/2013

A. OVERVIEW:

Security bond is used as a guarantee for clearance of goods in Transit,

Warehousing, and Temporary Import etc. Bond can be cash, letter of

guarantee etc. issued by banks, financial institutions or insurance companies.

Clearing agents or importers/exporters referred to as principal, request for

security bond from a Guarantor (banks or insurance companies) and this is a

prerequisite for lodging declarations which mandate bonds.

B. SCOPE OF PROCEDURE:

The procedure applies to application of Security Bonds through KESWS. It

recognizes that digital signatures need to be in place to eliminate some

unnecessary manual signing and witnessing.

C. RESPONSIBILITIES:

C.1 Clearing Agent is responsible for bond application

C.2 KRA is responsible for processing the bond application

C.3 Bank/Insurance/Guarantor is responsible for approving and issuing

the bond

D. REQUIREMENTS

Security Bonds are applicable for the following procedures:

Transit bonds

Warehousing bonds,

EPZ,

MUB,

Provisional entries,

Re-exports.

4

Temporary importations

Bonds for Government project goods/Machinery

E. DEFINITIONS

KESWS- Kenya Electronic Single Window System

SASC- Vessel/Aircraft Operator or Slot Charterer

BL- Bill of Lading

AWB- Airway Bill

FF - Freight Forwarder or De-consolidators

XML- Extensible Mark-up Language

5

F. PROCEDURE:

Security Bond Application

Bank/Insurance KRA Bonds DeptC&F/ EXIM (Thru KESWS

START

Apply for Bond

Create Bond

Enter Bond details

Submit Bond

application

Review Bond

ApplicationKESWS

OK?

Approve bond

application

Reject Bond

Request

Amend

Rejection

C&F Notified

Approve bond

application

KESWS

Receive Bond

Application

Bond

Application

Process Bond

documents

Present Hard

Copies

Review Bond

Documents &

Application

OK?

Reject Bond

Application

Approve

Bond

Application

Bond

Approval

Message

Receive bond

Approval

Message

Update Bond

Approval

Gurantor

Notified

END

6

G. STEPS

The steps below describe the security bond application process. Detailed steps

available in the KESWS user guide.

G.1 Apply for Bond

Clearing agents, exporters or importers referred to as principal can log in to

KESWS and apply for a security bond.

G.2 Create Bond Application

The principal access the bond application screen in KESWS system to apply for a

security bond. If the principal is an importer or exporter, he can nominate a

clearing agent who uses the bond in a declaration.

G.3 Enter Bond Details

Clearing Agent or Importer/Exporter provides bond details such as Bond Type,

Bond Category, Bond Amount, Bond Issued Bank/Insurance Company in the

KESWS to apply for a bond. Users may upload documents such as BL, Invoice,

Performa Invoice, etc.

G.4 Submit Bond Application

Once user provides all bond details the bond application can be submitted. The

application is routed to the selected bank or insurance provider referred to as

guarantor for further processing. Once the bond application is submitted it will

be in the “Submitted” status in KESWS.

G.5 Review Bond Application

Guarantors log in to KESWS and view all the bond application requests. Details

of bond applications are reviewed by these users and they approve or reject

the bond application

G.6 Approve Bond Application

Bond details are reviewed in the KESWS system by guarantor and if all details are

found to be correct the bond application will be approved. Once a bond

application is approved by guarantor, a bond application message will be sent

to SIMBA. The guarantor proceeds to process the bond and prepare the

physical documentations as per current process.

G.7 Reject Bond Request

Bond application may be rejected by the guarantor. Upon rejection the

principal will receive a bond application rejection notification. The principal may

check the bond status in KESWS and amend the bond application and re-

submit. A bond application can be re-submitted once the details are amended.

7

G.8 Process Bond Documents

Upon approval of bond application, processing of the bond is initiated by

Guarantor. This is an internal process within the bank/insurance company to

prepare the required physical documents for the bond. The bond is created

between the 2 parties and is signed and sealed in the presence of KRA.

G.9 Present Hardcopy to KRA

Once the hardcopy of the bond is ready, the principal presents it to the KRA

Bond Department. KRA verifies the pre-created draft bond application in SIMBA

and approves it.

G.10 Review Bond Application & Documents in SIMBA

KRA bond officer reviews the draft bond application pre-created in SIMBA [from

the bond application message sent by KESWS] with the physical copy received

from the principal. Bond officer may approve or reject application.

G.11 Reject Bond Application

If KRA bond officer rejects the application with a reason and it will be routed

back to principal. Both principal and guarantor receive notifications. Principal

may amend and resubmit the application. It goes through same process of

approval. When KESWS submits it to SIMBA, the message function will be

replacement.

G.12 Approve Bond Application

Once the bond approval is given, SIMBA generates a bond approval message

with bond details. The XML is sent to KESWS system for integration.

G.13 Update Status of Bond in KESWS

Once approval message is received, KESWS updates the status of the bond to

approve. A notification is sent to principal and the guarantor.

8

2.2 Supplementary Bond, Cancellation, Retirement, Replenishment & Suspension

SOP Number: Title: Supplementary Bond, Cancellation, Retirement,

Replenishment & Suspension

Revision No: Effective Date: 31/10/2013

Issued By: TRADE FACILITATION MANAGER Date: 31/10/2013

Approved By: KRA Date: 31/10/2013

A. OVERVIEW

The bond once available will be used by the KESWS for declaration where

bond is mandatory. If the bond amount is not sufficient to cover the duties

payable, a supplementary bond needs to be applied. Once the bond cover

ends or goods have exited the country the bond is cancelled/retirement.

B. SCOPE OF PROCEDURE:

The procedure applies to Security Bond transactions conducted by clearing

agents/EXIM to clear goods for regimes which mandate a bond for ex transit,

warehouse etc.

C. RESPONSIBILITIES:

C.1 Clearing Agent is responsible for bond application

C.2 KRA is responsible for processing the bond application

C.3 Bank/Insurance/Guarantor is responsible for approving and issuing

the bond

D. REQUIREMENTS

The following documents will be required:

Hard copy security Bond Certificate

E. DEFINITIONS

E.1 KESWS- Kenya Electronic Single Window System

E.2 SASC- Vessel/Aircraft Operator or Slot Charterer

E.3 BL- Bill of Lading

E.4 AWB- Airway Bill

E.5 FF - Freight Forwarder or De-consolidators

E.6 XML- Extensible Mark-up Language

9

F. PROCEDURE

Supplementary Bond, Cancellation, Retirement, Replenishment & Suspension

Bank/Insurance KRA Bonds DeptC&F/ EXIM (Thru KESWS

START

Apply for Bond

Retrieve BondApply for

supplementary

Bond

Cancellation

XML

Receive Bond

Application

Supplementary

Bond

Bond

Cancellation/

Replenishment

Bond

Suspension/

Retirement

Bond

Cancellation

in Simba

Retrieve

Bond Status

Message

END

Security Bond

Application

process

Update Bond

StatusNotify Principal

G. STEPS

The steps below describe the Supplementary Bond, Cancellation, Retirement,

Replenishment & Suspension processes. Detailed steps available in the KESWS

user guide.

G.1 Supplementary Bond

For general bonds the value of a bond depletes based on its usage. If a

general bond amount balance is not sufficient to cover the duties payable,

the principal of the bond has to apply for supplementary bond. Application

for a supplementary bond can be done to the same bank or insurance

10

company that issued the original bond in the KESWS system. The principal

retrieves the bond in the KESWS and applies for a supplementary on the

parent bond. The supplementary approval process, documentation,

approval in SIMBA is similar to the new bond application process.

G.2 Bond Cancellation/Replenishment

Cancellation of transactional bonds shall be automatic

Cancellation of general transactional bonds replenishes (restores) the

amount which was committed in a declaration

Cancellation of a particular bonds leads to bond retirement

Only transactional bonds can be replenished

The cancellation/replenishment is done in SIMBA. SIMBA will send a

message to KESWS to update the status of the bond. KESWS receives the

xml message from SIMBA and the status of the bond will be updated

accordingly. An email message is sent to the principal & guarantor of the

bond giving details of the bond status

G.3 Bond Retirement

Bond retirement terminates usage of a bond

General bonds are retired after expiry of the validity period, or when the

commissioner deems it fit

Particular bonds are retired after the transaction is complete

All transactions on the bond must be complete

The retirement is done in SIMBA. SIMBA will send a message to KESWS to

update the status of the bond. KESWS receives the xml message from SIMBA

and the status of the bond will be updated accordingly. An email message is

sent to the principal & guarantor of the bond giving details of the bond status

11