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WTO SYMPOSIUM ON TRADE FACILITATION Transit of goods in land locked countries Rwanda’s experience MUHIGI Zephania Head of Customs Field Operations Division Customs Services Department
Transit in landlocked country perspective Rwanda ‘s case Rwanda Land locked relying heavily on two ports (Mombasa and Dar es salaam ) The transit charges ranked as high as 50 -70 percent of CIF value for Rwanda. The cost of trade continue to be high due to transport cost. Transport &insurance cost about 49% of total export value. In DB 2012 Rwanda ranked 3 rd in Africa and best performer worldwide, from 58 th position WDB 2011 to 45 th out 183 countries assessed. In WB indicators; did poorly on trading across borders (ranked 155 th from 159 th for DB 2011) despite several reforms made nationally Why little progress on this indicator? - presence of several NTBs with variety of constraints and restrictions along transit corridors. Highlight of issues Multiple transit bond guarantees used, guarantees amount remain un acquitted for months (tied up capital)
Transit issues for land locked country cont. . Several weighbridges , over 4 o counted on both transit corridors Inadequate Police Escort or convoy’s mechanism which delays transit cargo. Reports indicates 35 days to export and a total cost of USD 3275 per container. Numerous Police road blocks and check points (16) on Northern corridor alone Varying application of axle load specifications. inconsistencies GVW and axle Congestion created by weighbridges, buses and trucks have to wait for many hours load limits.
Transit issues cont. . Un published fees and charges on weighbridges, roadblocks and gates about USD 880 on both corridors Delays at the Ports due to uncoordinated procedures &interventions , average taking two weeks to process transit goods to Rwanda Regular break down of customs electronic business systems or power outages causing unnecessary delays of cargo in transit at ports &borders High transit truck license fees charged to convey goods in transit over 1200 USD annually. Congestions at border s
Regional initiatives Progress made on use of RADDEx system and new version underway Implementation of One Stop Border Post along the borders in EAC all countries Progress on Authorized Economic Operators scheme by EAC Partner States Implementation of Cargo Tracking system Joint Time Release Study (TRS) under consideration Infrastructure development master plan under EAC Regional Customs Bond Guarantee under Comesa implementation in progress in all Partner States introduction of E- portal for clearing and forwarding agencies Process of implementation of 24 h/7 operations at ports and some border posts is in progress A new system – ASSET being introduced Harmonization customs procedures
Rwanda’s TF reforms on transit Customs entry &exit borders fully automated , cargo in transit monitored through the system Automation of transit guarantee procedure, set an amount equal to duties liable on those goods, installation & acquittals done electronically at exit points. Availed standby generators and engaged different network services providers to avoid delays at borders Weighbridge installation at one stop – entry and exit Introduction of X-ray mobile scanners at border entry. OSBPs using one side of the border for all clearance services, time savings, one completed other four underway. Removal of roadblocks in 2008 Electronic Single Window, implementation process started and benefits huge. 24 h/7 concept – improved clearance time at borders Introduced Pre –clearance system Implemented use of RADDex platform
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