The Challenges of Customs in Export Trade Facilitation: the Case of Ethiopian Revenues and Customs Authority Dire Dawa Branch Office
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Date
2016-06
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Addis Ababa University
Abstract
Customs has been described for a century as a gate keeper, with customs authorities
representing a barrier through which international trade must pass. But currently Customs plays
a critical role in the implementation of a range of trade, economic and social policies and
contributes to the achievement of national development objective focusing on trade facilitation
and regulatory control. Trade facilitation and customs regulatory control regarded as two major
requirements for both government and the business community in pursuing their national and
international trade in the competitive environment of today. However, enormous amount of time
and money wasted due to long delays at customs in most sub-Sahara African Countries like
Ethiopia. The objective of this study was to identify the challenges of customs in export trade
facilitation at Dire Dawa Customs Branch Office. To achieve the research objective, the study
employed a descriptive method and used both qualitative and quantitative research approach.
Primary data were collected from all Customs employees found in export clearance team, and
all exporters and customs clearing agents who have permanent office at the branch. Accordingly
85 questionnaires were distributed and interviews have made with purposively selected 3 team
leader, 2 process owners and 1 Deputy Branch manager. The collected data were analyzed using
descriptive statistics. Four major findings from the case study are identified as the key criteria
required for facilitating international trade. First, risk management is identified as a core
principle of accommodating facilitation. Second, customs laws and regulations, customs
procedures and information technology are found to be key instruments for supporting the
achievement of trade facilitation. Third, comprehensive and integrated approaches to
cooperation are regarded as enablers, which contribute to facilitation. Finally, human resource
development is identified as a prerequisite to support all other elements in accommodating trade
facilitation. The accommodation of trade facilitation can be achieved dependent on these key
criteria being effective and consistent with international standards and guidelines. Despite the
effort of the Dire Dawa Customs Branch Office to accommodate trade facilitation, the study
identifies some discrepancies between ‘policy and implementation’ or ‘principles and practices’,
particularly in the areas of risk management, customs procedures and information technology.
These implementation problems are found to result mainly from the lack of skills and knowledge
of the customs officers. A key finding of the study is that continuous and sustainable
development of human resources in terms of customs competency is required to ensure
transparency, consistency and predictability in providing customs services. Finally, the
challenges of customs vary from branch to branch and even from one customs procedure to
another depending on the nature of the branch as the study entirely delimited to study the issues
of Dire Dawa Customs Branch Office; it does not represent the scene in other Branch office and
other customs procedures. Thus, further research needs to be conducted to address this customs
challenges in export trade facilitation.
Key words: Customs Automation, Risk Management, Human Resource Development and
Management, Cooperation and Coordination among customs and other agencies, Customs
Procedures, Customs Laws and Regulations
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Keywords
Customs automation; risk management; human resource development and management, cooperation and coordination among customs and other agencies ;customs Procedures; customs laws and regulations