usaid compete best practices in expediting trade and transport
DESCRIPTION
David Adolwa, Regional Transit Advisor at the USAID COMPETE project in East Africa, discusses the causes of delays and elevated transport costs in East Africa and the efforts COMPETE and partners are undertaking to address them Feb. 21, 2013, at the second annual conference of the Borderless Alliance, "Borderless 2013: Connecting Markets."TRANSCRIPT
REDUCING BARRIERS TO TRADE IN ECA REGION
The views of the presenter may not Data compiled by USAID COMPETE from various studies completed in 2009
Best Practices in Expediting trade and transport Borderless 2013 Accra Ghana Thursday February 21
David Adolwa Regional Transit Advisor USAID COMPETE Program
PRESENTATION OUTLINE
INTRODUCTION BACKGROUND MALABA EXAMPLE
WHAT NEEDS TO BE DONE WHAT IS BEING DONE USAID COMPETES INTERVENTIONS
COMPETE FACT SHEET
Northern Corridor
Dar Corridor
2 3.5 4 4.5 5
6 7
8
11
0
2
4
6
8
10
12
Paki
stan
bra
zil
Uni
ted S
tate
s of
Am
erica C
hina
West
ern
Euro
pe L
ong
Dis
tanc
e F
ranc
e
Dur
ban
Lusa
ka
Lom
e(T
ogo) to
Ouagad
oug
ou
(Bur
kina
faso
)
Mom
basa
to K
igali
Doua
la(C
am
ero
on)
to
N'D
jam
ena(C
had
)US$ P
er
Kilom
ete
r
Cost per Kilometer
COST PER KILOMITER
The high cost of transport is the most significant barrier to trade and investment in East and Central Africa. Africa remains the most fragmented continent and is composed of micro economies excluding Nigeria, South Africa and Egypt. Africa is home to the majority of landlocked countries and least-developed countries. Intra-African trade is very low. At an average of 10 to 20 %, the level of trade among African countries compares unfavourably with other regions of the world. Intra-trade among the EU-27 is around 70 per cent, 52 per cent for East Asia, 50 per cent for North America and 26 per cent for South America. A major constraint to regional and international trade is the high transaction costs for trade across borders in East Africa due to deficiencies in soft and hard infrastructure. The problem is even more severe for the landlocked East African Countries that include Rwanda, Burundi, DRC and South Sudan.
Port Procedures 49%
Border Post Controls
13%
Vehicle Breakdown
9%
Insecurity 9%
Others 7%
Personal 5%
Weigh Bridges 3%
Customs Checks 2%
Police Road Blocks 2%
Escorts 1%
Source: USAID COMPETE
Local issues58%
Bilateral issues25%
Regional issues17%
WHERE ARE THE ISSUES?
LETS GO TO AN EAST
AFRICAN BORDER
MALABA
UGANDA
KENYA
2009 • 650 Trucks per day
• Frequent power outage
• Single lane bridge
• Corruption
• Insecurity
• Turf wars
• Incompetence
• Multiple inspections up to
12 separate inspections
• Delay up to 3 days
2012 • 1,000 Trucks per day
• Frequent power outage
• Single lane bridge
• Greater transparency
• Improved security
• Collaboration amongst
agencies
• Joint inspections
• Border open 24/7
• 3 hours border crossing
time
17
REDUCING BORDER PAIN
• Ports handling capacity
• Roads infrastructure
• Rail/pipelines
• Border Posts infrastructure
EXPAND AND IMPROVE HARD INFRASTRUCTURE
• Automate clearance processes
• Reduce Human/Human intervention
• Reduce Paper work
• Collect Data
DEPLOY ICT SOLUTIONS
• Change Culture
• Defuse Tensions
• Promote Best Practice
• Eliminate border/HQ disconnect
OPTIMIZE SOFT INFRASTRUCTURE
• Roads
• Weigh Bridges
• Cranes
• ICD
• One Stop Border Posts
• Customs Clearance Systems
• Single window systems
• Revenue Authority Digital Data Exchange
• Single Window Operations Systems
• Joint Border Committee • Lean Operations • Joint Inspections • Resource Sharing • Joint Resource Mobilization • Private Sector Participation • Best Practices • Training
JICA, WORLD BANK, TMEA , AFDB
USAID COMPETE FOCUS
Multi-sectrol collaboration of key Government agencies as well as Private Sector involved in the clearance of cargo for the purpose of:
• Define of critical operational challenges at the borders
• Enhancing inter agency collaboration at border post
• Promoting the sharing of available resources at the border
• Creating a trade facilitation mind set
• Defusing tension and conflict between public and private sector
• Eliminating the disconnect with HQ
• Rationalizing control and regulation at the border
The Joint Border Committee
Government Agencies Private Sector
Local Government Development Partners
OUT BOUND
CUSTOMS CONTROL AREA
IN BOUND
CUSTOMS CONTROL AREA
INBOUND
CUSTOMS CONTROL AREA
OUT BOUND
CUSTOMS CONTROL AREA
OUT BOUND
CUSTOMS CONTROL AREA
IN BOUND
CUSTOMS CONTROL AREA
INBOUND
CUSTOMS CONTROL AREA
OUT BOUND
CUSTOMS CONTROL AREA
ONE STOP BORDER POST
CUSTOMS CONTROL AREA
ONE STOP BORDER POST
CUSTOMS CONTROL AREA
WITH SUPPORT OF
TMEA/ JICA/ AFDB
AND WORLD BANK
COMPETES JOURNEY THROUGH ECA
Over 201,000 km Travelled
Over 1,900 persons mobilized
Over 75 Government Agencies involved
3 Corridors covered
16 border posts visited and Joint Border Committees established at each border post
R A D D E x REVENUE AUTHORITY DIGITAL
DATA EXCHANGE
Cargo Truck
Customs Data
KEY TO SYMBOLS
International
Sea Port
Inland Border
Post
Destination or
Origin of Cargo
• Bench marked to WCO standards and simplified across all the five EAC countries.
HARMONIZED CUSTOMS PROCEDURES
• which aims at enhancing cargo clearance through operational space that Post Audit provides.
POST CLEARANCE AUDIT MANUAL
• Enables businesses to understand the Customs Valuation procedures and processes. It adds to the efficiency of clearing processes through avoidance of valuation related disputes.
CUSTOMS VALUATION MANUAL
REGIONAL CUSTOMS PROCEDURES
ONE STOP CENTER – DAR PORT
THANK YOU VERY MUCH FOR YOUR ATTENTION
123 Gardenia Road off Magnolia Road, Gigiri
P. O Box 1555 – 00606
Nairobi, Kenya
T: +254-719-032-000
F: +254-719-032-271
www.competeafrica.org
THE COMPETITIVENESS & TRADE EXPANSION PROGRAM