The Effect of Custom Clearing Procedures on Sales Performance: The Case of Coffee Exporter Companies
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Date
2022-06
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Addis Ababa University
Abstract
This study aimed to understand the effect of customs clearance on sales performance of export companies in the case of coffee export companies in Addis Ababa. The quantitative &description research approach was adopted along with explanatory research design. The owners, sales & marketing staff, agents, and transistors working with the selected export companies were considered the target study population. A sample size of 237 elements were selected by using mixed multistage sampling techniques. Data were collected from the primary source with a self-administered questionnaire. Of which, a total of 185 respondents valid and usable responses were collected. The descriptive and inferential statistics were conducted with the help od SPSS 22.0 statistical software. The results of the findings revealed that the four dimensions of customs clearance namely documentation, customs valuation, physical inspection and risk level assessment had positive and significant effect on sales performance of the coffee exporter companies. Specifically, documentation and risk level had the highest effect, while valuation and physical inspection showed less contribution to the model. It can be concluded that the customs clearance activities of the Ethiopian Customs Commission have direct relationship with prediction of sales performance. To improve the quality of the customs clearance, management of the commission are advised to train more staff and adopt modern information technology software to their systems would facilitate the mitigation of the exaggerated customs clearance bureaucratic procedures. It is also vital to have better communication with different governmental stakeholders to provide a single-window service.
Keywords: Customs Clearance, Valuation, Documentation, Physical Inspection, Risk Level Assessment, Coffee Export, Sales Performance