Shippers want new clearance system entrenched into laws

By Luke Anami

Cargo owners have called for the enactment of a legal framework that will entrench the implementation of a single window system into Kenyan laws.

Through Kenya Shippers Council, they said they want a legal framework that will allow for the smooth clearing of goods by various Government agencies, including Kenya Ports Authority, Kenya Revenue Authority, Kenya Bureau of Standards, and Kephis without friction.

"There is likely to be friction between these agencies unless a proper legal framework is established to entrench the National Single Window System (NSWS) into Kenyan Laws, granting the entity legal superiority ," said Gilbert Langat, CEO Kenya Shippers Council.

Trade in Kenya is facilitated by approximately 16 public and private institutions whose roles stretch from revenue collection, to cargo handling, to standards and to safety of goods verification. The regulations, procedures and operations of these agencies contribute significantly to transaction costs of the products being sold to the local and regional markets.

NSWS simplifies and streamlines trade documentation and clearance procedures by reducing delays and lowering costs associated with clearance of goods at the point of entry and exit.

Langat said the existing laws and regulations governing each of the agencies will need to be reviewed and carefully adjusted to ensure a legally enabling environment.

The private sector, through the chairman of Vision 2030 and managing Director of Equity Bank,Dr James Mwangi, said plans are currently underway to link the single window system with the Governments’ e-portal, ensuring that payments are made online during the clearing of goods at the ports of entry.

"We expect the Government to finalise its e-portal by next year," Dr Mwangi said.

"This will not only help Cargo owners at the ports of entry track the status of their goods at every point of intervention, but also pay directly at once."

Both Kenya Ports Authority and Kenya Revenue Authority have initiated the National Single Window System, a single portal where exporters and importers can lodge standardised information.

"A single Window System will reduce time spent on clearance procedures since information about the truck and the goods will be available at a click of a button," Langat said.

The process is funded by Trade Mark East Africa, in support of East African Community integration, especially in the reduction of transport costs on roads.

The NSWS is expected to ease the long queues experienced at the border posts of Mombasa, Malaba and Busia by reducing clearing procedures.

"Clearance procedures by various governments agencies, including KPA, KRA, Kephis, Kenya Bureau of Standards among others at border posts that cause delays, increase truck turnaround times for both owners and transporters of cargo will soon be a thing of the past," Dr Mwangi added.

Athman Mohammed Athman, Senior Asset Manager at Trade Mark East Africa said the system will use Information and Communication Technology to simplify the sharing and processing of documents for all stakeholders involved in international trade.