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

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