The Effect Of Customs Regulations And Customs Clearance Process On Company Performance: The Case Of Nestle Waters Ethiopia S.Co.

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Date

2020-06

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Addis Ababa University

Abstract

The main purpose of the study was to examine the effect of customs regulations and customs clearance process on Nestle Waters Ethiopia s.co. company performance. This paper has tried to discuss the Effect of Customs laws (rules and regulations), Effect of Customs Valuation, Effect of Customs Clearance, Challenging /problematic/ area in conducting clearing process and the cost implication factors to Nestle Waters due to customs regulation and delay in customs clearance process. Purposive sampling technic was used, and total target population are taken as a sample size, data were collected from all operation staff of four customs clearing agents and Nestle waters employees. The questionnaires were distributed to 52 respondents. Out of this only 49 respondents returned the questionnaires and from this 3 of the questionnaires are not returned. These data were tabulated into SPSS software for statistical analysis. The output was analyzed by mean, frequency, correlation and Regression. Descriptive and Inferential statistics were used to analyze the data collected from the respondents. The major finding found out from the survey result was that the existing Proclamation No. 859/2014 and the revised customs proclamations No. 1160/2019 are still unclear, not harmonized and didn’t simplify the customs procedures to meet the international convention of WCO, customs valuation have a huge effect on company performance and according to this study most customs duties and taxes are calculated and paid based on Transaction value of identical or similar merchandise, the risk profiling software is not updated time to time and there is no adequately staffed skilled customs officers to deliver fast and quality services, over all the customs clearance and risk profiling system is not efficient, the customs valuation, risk level given to imported items have effect on company procurement, production, sales and distribution activity and have effect on distributors, customers and employees satisfaction and also have a very huge impact on over all country's economy. Based on these, recommendation was made in such a way that the customs proclamation must be reviewed, discussed with all stakeholders and updated, customs need to support importers specially manufacturing companies, the customs valuation officers must get enough training and also customs must recruit experts in every department, the risk profiling system must be updated to international standards and customs need to focus on trade facilitation than controlling.

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Keywords

Customs regulation, experts, international standard, Proclamation, manufacturing companies

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