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The Single Customs Territory and it`s rollout to ease trade in the region.

The Northern Corridor links Uganda,Rwanda and Burundi with Kenya's maritime port of Mombasa. It also serves the eastern part of the Democratic Republic of Congo,South Sudan and Tanzania,therefore the Northern Corridor connects the 5 countries of the East African Community and beyond playing an important role in the movement and trade of goods.

In order to make it easier for people to do business in the region,Northern Corridor member states set out to create a Single Customs Territory.

The Single Customs Territory is being implemented by the Northern Corridor Integration Projects Initiative (NCIP) which began a rollout at the end of 2013,since then goods have been gradually being added into a single clearing system under a duty paid and warehousing regime.

This Initiative is in due course going to reduce the internal border controls,restrictive regulations among member countries and will eventually lead to free circulation of goods that will ensure the realisation of a full Customs Union.

 

Advantages

The Single Customs Territory reduces the cost of doing business by eliminating the duplication of processes,it also reduces administrative costs,regulatory requirements by different member states and the risks and fines associated with non compliance of goods in transit.

The Single Customs Territory will enhance trade in locally produced goods mostly agricultural produce,and also boost the private and public sector relationship. Its also a springboard for free movement of other factors of production and will attract foreign and cross-border investment.

It has led to the elimination of Non tariff barriers to trade like reduced corruption in form of bribery of officials,delays at the border due to double clearance,this has saved up to an estimated $7million dollars along the Northern Corridor.

The time for goods destined for export has reduced significantly as well as the goods from Port of Mombasa along the Northern Corridor which used to take almost 6 weeks now take 30days.

 

Major Achievements

Clearance for Kenya,Uganda and Rwanda Revenue Authority Systems under ASYCUDA (Automated Systems Customs Data)

Clearance of all goods under Home Consumption,Sugar,Wheat,Steel,Motor Vehicles,and those under Warehousing regime at port of first entry Mombasa.

  • Integration of regional customs bond.
  • Waiver of port charges and demurrage fees on overstayed cargo.
  • Training and Accreditation of Clearance Agents of member states.
  • Reduction of multiple declarations of goods to a single declaration.

Strategic Path

  • Joint Electronic Cargo Tracking System for all member states - June 2016
  • Full Integration of ASYCUDA for all Revenue Authority bodies  of member states - June 2016
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