By WILLIAM OJONYO
As a clearing and forwarding agent in Kenya today, I must acknowledge that trade facilitation has not been optimised — if not “muzzled”, for lack of a better word — in terms of efficiency by various stakeholders.
And when it comes to determining whom to hold responsible for the cargo delays from port to destination, the blame game between Government agencies and the private sector begins.
Unfortunately, the buck has often stopped with clearing and forwarding agents, and they are left to bear the costs of delays by paying huge unwarranted charges on behalf of importers.
The fact that clearing agents in Kenya are not formally recognised under legislation has made matters worse. We continue to be intimidated left, right and centre by the Government agencies who actually hold the responsibility for delays.
This is why the business community and consumers are eagerly awaiting the launch of the Electronic Single Window, which is being spearheaded by the Kenya Trade Network Agency (KenTrade) and should be operational any time from next week.
NOBLE IDEA
There is the expectation that this window will provide the ultimate solution to the delays that have bedevilled the Port of Mombasa and consequently driven up the cost of doing business and the eventual shelf cost to retailers.
And though, like many other agents, I welcome the KenTrade initiative to achieve a more robust and responsible way of evacuating cargo from Kenyan ports, I believe more should be done to support the noble idea: we need to deal with the real monster that is causing delays at various clearance points.
I am particularly worried that we may be expecting too much from the launch and KenTrade, given the impunity that reigns in some Government agencies that fear the reality check of responsibility within the international treaties we subscribe to, such as those by the World Trade Organisation and World Customs Organisation.
As an active and important player in the supply chain management in Kenya, and by extension the region, my take is that we should first, and fast, address the bottlenecks in the system even as we embrace the Electronic Single Window.
SLOW MOVEMENT
The slow movement or clearance of cargo is caused by non-tariff barriers from various stakeholders led by the customs department and clearing agents who are continually having disputes on values, or the procedure of determining values and taxes.
Unless this is addressed, cargo will continue to be delayed since the first step of any cargo clearance is to have the customs entry (Form C17B) approved.
The second in line are other Government agencies that intervene in cargo clearance procedures without clear mandates and information. There needs to be prior planning for better and effective interventions.
KenTrade should be given the mandate to ensure all parties involved in cargo clearance are held directly responsible for delays of any nature emanating from each party.
As an agent, I would be happy to be held responsible for the delays I cause, and learn from them to create a better and more efficient supply chain management system. That should be the case for all cargo interveners.
Many countries the world over have embraced the electronic platform, but have at the same time addressed existing bottlenecks — they do not want to transfer inefficiencies to the electronic window.
We should, therefore, come together as stakeholders and sign a memorandum of understanding mandating KenTrade to monitor efficiency levels within the law to ensure the switch to the electronic window achieves its purpose.
The writer is CEO, Keynote Logistics.
bizbeat@standardmedia.co.ke