Introducing a risk-based pre-arrival customs process

Meeting Kenya’s Trade Facilitation Agreement obligations

Article 7.1
Pre-Arrival Processing

1) Each Member shall adopt or maintain procedures allowing for the submission of import documentation and other required information, including manifests, in order to begin processing prior to the arrival of goods with a view to expediting the release of goods upon arrival.

2) Each Member shall, as appropriate, provide for advance lodging of documents in electronic format for pre-arrival processing of such documents.
Article 7.2
Electronic Payment

Each Member shall, to the extent practicable, adopt or maintain procedures allowing the option of electronic payment for duties, taxes, fees, and charges collected by customs incurred upon importation and exportation.
Article 7.3
Separation of Release from Final Determination of Duties, Taxes, Fees and Charges

1) Each Member shall adopt or maintain procedures allowing the release of goods prior to the final determination of customs duties, taxes, fees, and charges, if such a determination is not done prior to, or upon arrival, or as rapidly as possible after arrival and provided that all other regulatory requirements have been met.

2) As a condition for such release, a Member may require:

(a) payment of customs duties, taxes, fees, and charges determined prior to or upon arrival of goods and a guarantee for any amount not yet determined in the form of a surety, a deposit, or another appropriate instrument provided for in its laws and regulations; or

(b) a guarantee in the form of a surety, a deposit, or another appropriate instrument provided for in its laws and regulations.

3) Such guarantee shall not be greater than the amount the Member requires to ensure payment of customs duties, taxes, fees, and charges ultimately due for the goods covered by the guarantee.

4) In cases where an offence requiring imposition of monetary penalties or fines has been detected, a guarantee may be required for the penalties and fines that may be imposed.

5) The guarantee as set out in paragraphs 3.2 and 3.4 shall be discharged when it is no longer required.

6) Nothing in these provisions shall affect the right of a Member to examine, detain, seize or confiscate or deal with the goods in any manner not otherwise inconsistent with the Member’s WTO rights and obligations.
Article 7.4
Risk Management

1) Each Member shall, to the extent possible, adopt or maintain a risk management system for customs control.

2) Each Member shall design and apply risk management in a manner as to avoid arbitrary or unjustifiable discrimination, or a disguised restriction on international trade.

3) Each Member shall concentrate customs control and, to the extent possible other relevant border controls, on high-risk consignments and expedite the release of low-risk consignments. A Member also may select, on a random basis, consignments for such controls as part of its risk management.

4) Each Member shall base risk management on an assessment of risk through appropriate selectivity criteria. Such selectivity criteria may include, inter alia, the Harmonized System code, nature and description of the goods, country of origin, country from which the goods were shipped, value of the goods, compliance records of traders, and type of means of transport.

Events

Public-private dialogue and agency workshop
11-12 February 2019

Kenya is already a key regional trade hub in East Africa, acting as a gateway for imports and exports to neighbouring landlocked countries. Yet without an effective risk-based pre-arrival process, traders and customs officials face lengthy, burdensome and unpredictable formalities at borders. A formal, structured and systematic approach to risk management can change this.

What we are doing

We are working with the government and the private sector to introduce fully-automated, paperless processing which allow traders to supply information on goods and for customs officials to prioritise before shipments arrive at borders. It will significantly reduce the number of physical inspections for low-risk shipments, speeding up clearance and release of goods and creating a better business environment.

Our project involves:

assessing the supply chain in Kenya and analysing the import process
identifying best practice for pre-arrival and related processes
developing a target model for pre-arrival processing
supporting the legal and regulatory reforms required to implement the project
developing a risk process map and a detailed process description for pre-arrival processing
developing a training and HR development plan
providing training for customs and other government officials, as well as private sector stakeholders
testing and piloting the risk management system and pre-arrival process

Benefits

The introduction of risk-based pre-arrival processing is a win for the government, the private sector, and the wider Kenyan population. It will:

expedite clearance and release of goods
increase predictability and reduce costs for traders and customs
improve risk assessment allowing customs to facilitate low-risk shipments and focus its resources on high risks
increase the balance between ensuring compliance and minimising disruption and cost to legitimate trade and the public
increase staff awareness about risk management

Monitoring and evaluation

We are monitoring and evaluating the project throughout its duration. Key indicators include:

percentage of all “green channel” shipments which are released upon arrival without inspection
percentage of shipments processed through the upgraded IT system
percentage of importers that are satisfied with the upgraded IT system for pre-arrival of manifest and declaration
percentage of surveyed importers that are satisfied with the e-payment system

Private sector support

In Kenya we are looking for businesses to get involved in a wide range of activities including:

advising on risk processes, best practice, legal and regulatory reforms
providing training and capacity building
supporting project management development and roll-out
promoting the project to stakeholders

Timeline

The project will be implemented in three overlapping phases over 17 months, starting in 2018.

Phase 1

3 months

Analysis and planning

Phase 2

8 months

Design and development

Phase 3

12 months

Training and piloting

Get involved

Find out how to get involved in the wider Alliance by clicking the boxes to the right.

Contact us in Kenya

C

Establishing a Centre for Trade Facilitation and Good Practices
See the project
V

Introducing a modern customs bond system for conditional release of goods
See the project

Kenya