Challenges of Import Customs Clearance in Ethiopian Revenue and Customs Authority
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Date
2016-01
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Addis Ababa University
Abstract
The objective of this study is to identify challenges and prospects of import customs clearance
in Ethiopian Revenue & Customs Authority (ERCA). The research method used for this study
is qualitative and quantitative (mixed) approach concurrently. Research data was collected
from 60 ERCA customs officers and 48 importers /customs clearing agents. The sample from
ERCA customs officers were selected using random sampling while importers/customs
clearing agents were selected using cluster sampling technique. Open and closed-ended
questionnaires and semi structured interviews were administered to the selected sample
group. Both the questionnaires and the interview questions touch key characteristics of
efficient and modern customs system and trade facilitation indicators. The research finding
reveals that customs clearance delay is the main challenge of importers. Customs clearance
delay occurs mainly at customs valuation and tariff classification work flows of the customs
clearance procedures. Mistrust between the tax authority and importers/customs clearing
agents, lack of human resource development, excessive requirement of commercial
documents,, lack of stakeholders’ consultation, continuous amendment and revision of
customs regulation, and absence of single-window service, are the main causes of the
prevailing customs clearance delays. Based on findings of the study, among others, the
following recommendations have been forwarded:
- Encourage voluntary compliance supported by post-clearance audit system,
- Establishment of single-window service,
- Define documents requirement clearly,
- Exert all possible efforts on human resource development with the objective to create
performance oriented and professional labor force.
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Conduct time release study on the entire customs system of the country
Key words: Challenge, Compliance, Conventions, Customs Clearance, Trade Facilitation,
Single-Window Service, Post-clearance Audit, Time Release Study
Description
Keywords
Challenge, Compliance, Conventions, Customs Clearance, Trade facilitation, Single-Window Service, Post-clearance audit, Time release study.