The Effect of Authorized Economic Operator on Trade Facilitation in Ethiopia: The Case of Accredited Importers
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Date
2021-08
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Addis Ababa University
Abstract
Trade facilitation is the harmonization, simplification, standardization, and modernization of trade procedures. Among several TF measures, AEO program, introduced by WCO Safe framework of Standards in 2005, with the main aim of improving revenue collection through voluntary compliance of companies. Ethiopia launched the program in 2010 using risk management as a tool to balance between facilitation and control. The study was conducted with main objectives of assessing the Effect of AEO on trade facilitation in Ethiopia considering 9 accredited importers through Census survey. The study employed mixed research methodology using primary and secondary data for the investigation. Questionnaires were used as a tool to collect primary data while secondary data was gathered through documents, records, and research paper analysis. For analysis, descriptive analysis of table, charts, mean, standard deviation, Correlation and regression were used. The findings include having AEO privilege minimizes clearance time for the accredited importers, also the respondents agreed that the privilege has brought a fair level of improvement on their trade volume, and which as well shows increment on the duty they paid for the regulatory government body. Thus, it is recommended; customs should majorly work on simplification of customs procedures, facilitating regular trainings, awareness creations of the program, promoting the privileged traders to customs community and regulatory bodies working with customs for better practice of the program and focus on working on mutual partnership with business community and other government bodies.
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Keywords
Trade Facilitation, Authorized Economic Operator, World Customs Organization (WCO), Safe Framework of Standards