Professional Documents
Culture Documents
Background
At the request of the East AFRITAC (AFE) client countries, a workshop on Information
Technology (IT) Challenges and Opportunities for Customs Management was held at the
Kenya School of Monetary Studies (KSMS) in Nairobi, Kenya from August 3-7, 2009. The
workshop was attended by 28 senior management level customs administration and IT officials
from Ethiopia (4), Kenya (5), Malawi (4), Rwanda (4), Tanzania (5), and Uganda (6). The
workshop resource persons were Messrs Andrew Okello and Brian Fulton. Representatives from
two vendors-- Crown Agents and Webb Fontaine-- also made useful presentations on recent IT
developments.
Introduction
In line with international best practice, efforts have been made in the region to implement
customs administration systems that are aligned to the principles of voluntary compliance and
self-assessment. Under this system, importers are expected to determine their own liability for
customs duties, while customs administrations are expected to enforce compliance using risk-
based inspections and audits that are in turn supported by effective IT systems. Reform progress
is being made albeit at a slow pace, with poor implementation in some cases. In addition,
implementation and utilization of available IT resources is suboptimal. Specific areas of concern
include: automation of outdated procedures; high prevalence of manual interventions;
uncoordinated use of workarounds and add-ons; lack of integration internally and with key
stakeholders; underutilization of available data; and lack of regional standards, even on issues of
common interest. As a result, regional countries continue to be rated poorly with respect to
trading across borders (World Bank, Doing Business, 2009), corruption, and other operational
indicators. It is evident that there is a lot of room for improvement.
The key workshop recommendations were that customs administrations should implement
procedures and processes that are fully compliant with international standards and conventions.
In this regard, there is need for customs administrations to: (1) commit fully and support risk
management initiatives, including development of regional approaches; (2) develop effective
linkages between the customs intelligence and risk management functions; (3) incorporate risk
management techniques in post-clearance audit and verification activities; (4) introduce or
expand taxpayer segmentation strategies such as the authorized economic operator (AEO)
scheme; (5) develop business analysis skills in customs and modernization departments; (6) carry
out regular release time reviews and use a wider range of performance indicators; (7)
review/update customs laws to facilitate modern practices and update procedures manuals; (8)
utilize the full range of enforcement tools available to increase compliance; (9) improve the
quality and range of data extracted from the IT systems for management reporting; (10) develop
effective information exchange arrangements across revenue authorities, government
departments and regional partners; and (11) develop and document manual fallback procedures
with appropriate controls (useful for remote stations that are susceptible to power outages).
The workshops resolutions were developed by a small group of participants with the guidance
of the facilitators and were discussed and endorsed by all participants (see detailed action plan in
annex 1). Implementation of the recommendations will require further AFE assistance with a
specific focus on regional approaches and standardization.
Workshop evaluation
The overall workshop rating was 3.9 out of a maximum of 5 points (or 78 percent). Participants
also stated that the workshop provided invaluable lessons and insights in the area of customs
management and the use of IT, and that this knowledge would contribute significantly to
improving practices in the region.
Annex 1: Action Plan / Recommendations for the Region
Time Scale:
Short Term = 1- 6 months
Medium Term = 6 12 Months
Long Term = 12 24 months
Management commitment
to drive the process is
crucial