Factors Affecting Unimodal Custom Clearance Efficency, The Case Of Addis Ababa Kality Customs Branch Office
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Date
2020-06
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Addis Ababa University
Abstract
This study tries to identify and asses the factors that affect the Unimodal clearance efficiency,
the case of Addis Ababa Kality customs branch office. The main objective of this study is to
assess the challenges that affect the efficiency of Unimodal customs clearance procedure. When
Unimodal customs clearance refers, it includes Djibouti port and customs clearance as the
shipment is cleared from Djibouti port. Ethiopia is land locked country, a single transit
permitted shipment must pass through transit permit process, Djibouti port and customs
clearance procedure under the umbrella of Addis Ababa Kality customs branch Office. Many
studies on customs clearance focused on local customs (Airport and multimodal) clearance
challenges. This study tried to see the challenges of clearing goods from Djibouti by
incorporating variables of Djibouti port and shipping agent performance with Kality customs
branch office variables. To accomplish the objective of the study, Primary data were collected by
Questionnaire s and interview. Secondary data’s were reviewed. Qualitative and quantitative
data sources were used. The study employed explanatory and descriptive statistics by frequency,
mean, standard deviation and inferential statistics by correlation and regression. The finding of
the study suggested that there is unnecessary prerequisite documents to issue transit permit
which affect the efficiency of Unimodal clearance efficiency, Unimodal cargo Djibouti port and
customs clearance procedure have many challenges in relation to service delivery, coordination,
un transparent working procedure, unaligned working time and day. Extended transit time and
very expensive costs is also a challenge for efficiency of Unimodal clearance. In addition
shipping agent performance inefficiency in providing service has played significant share for
inefficiency, coordination and cooperation of concerned government regulatory agencies is also
found as one of the input for inefficiency, AAK customs service facilitation reveled as factors for
inefficiency of Unimodal cargo customs clearance efficiency. Based on the findings, study
recommended simplified transit permit, improvement on service delivery both in regulatory
agencies, AAK and Djibouti, to have standard working procedure between stakeholders.
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Keywords
Unimodal Custom clearing efficiency, Transit permit process, transit time and cost, Unimodal Djibouti clearance procedure, shipping agent performance, coordination and cooperation of concerned government regulatory agencies