Factors Affecting Customer Satisfaction of Customs Services of Bonded Warehouse Operation: The case of Addis Ababa Kality Customs Branch Office

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Addis Ababa University


Enhancement of customer service quality was one of the targets wished-for by the Ethiopian Revenue Customs Authority in bonded warehouse operations. For this reason, ERCA commenced diverse programs in order to meet the wished-for target. As per the data obtained from Addis Ababa Kality Customs Branch Office as of October 2017 the total number of licensee bonded warehouse customers decreased from 320 to 223. Complaining about service quality was one out of several factors for the decreasing number. For this reason, the main objective of this research was to assess factors affecting customer satisfaction of customs services of bonded warehouse operations where a survey conducted in Addis Ababa. This research was based upon the customer’s perspectives and experiences of customs services of bonded warehouse operations in Addis Ababa, Ethiopia. This research intended to determine the significance level of service quality dimensions, explore the relationship between customer perceived value and customer satisfaction, the relationship between employee behavior/professionalism and customer satisfaction in bonded warehouse operations. Questionnaire as data collection tool was used while conducting this research. The data was collected from sampled licensee bonded warehouse customers and analyzed using the program SPSS 20 by applying descriptive and inferential statistical instruments. The findings of this research revealed that more than 95% of bonded warehouse service users were vehicle importers this was caused by lack of technological support and insufficient professional man powers from the branch office and awareness problem about bonded warehouse was from customers’ side. Besides, customer perceived value, tangible, reliability, responsiveness, assurance; empathy and employee behavior/professionalism had positive and significant effect on licensee bonded warehouse customers. Therefore, the Addis Ababa Kality Customs Branch Office needs to address problem areas associated with the identified factors.



Employee Behavior/Professionalism, Bonded Warehouse, Customer Perceived Value