Effects of Customs Valuation Customs Risk Management and Information technology on Trade Facilitation: The Case of Modjo Dry Port Customs Branch Office

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Addis Ababa University


Trade facilitation is the simplification and harmonization of international trade procedures and formalities involved in collecting, presenting communicating and processing data required for the movement of goods. The main objective of this study was to assess the effects of customs valuation; customs risk management and information technology on trade facilitation. the main problem was the focus of Customs commission for controlling and collecting revenue by ignoring elements that affects trade facilitation which increase the price of imported items & increasing dwell time in dry port which had a multiplier effect. There was a gap in customs valuation, customs risk assessment and information technology which imports shipment has to pass through The researcher, before beginning the research work, strongly believes that there are challenges in current customs valuation; customs risk management & information technology at Modjo dry port. These challenges led to significant impact on Trade facilitation activates in the port. For the study Descriptive and explanatory research designs as well as quantitative research approach were employed in conducting the study. The research utilizes both secondary and primary data as source of information. The primary data was collected through structured questionnaire distributed to 147 respondents and conducting interview with six KI. The research targeted freight forwarding companies who are working customs clearing in Modjo dry port customs branch office using systematic sampling technique. Data was collected using questionnaires and interview. For the analysis purpose we implemented both descriptive (i.e percentage, mean and standard deviation) and inferential statistics (Pearson correlation and multiple linear regressions) using SPSS. The major finding found out from the study suggested that customs valuation; customs risk management and information technology had a significant impact on trade facilitation as the researcher hypothesized at the beginning. x Therefore; we recommend that the need to commitment and improvement in customs valuation, customs risk management and information technology services for the betterment of trade facilitation. This leads to simplification and harmonization of trade procedures and at large scale leads to reduction in the cost of imported goods, custom clearing time and storage charges.



trade facilitation, customs valuation, customs risk management & information technology