WTO SYMPOSIUM ON TRADE FACILITATION Transit of goods in land locked countries Rwandas experience MUHIGI Zephania Head of Customs Field Operations Division.

WTO SYMPOSIUM ON TRADE FACILITATION Transit of goods in land locked countries

Rwanda’s experience

MUHIGI Zephania Head of Customs Field Operations DivisionCustoms Services Department

Transit in landlocked country perspective Rwanda ‘s caseRwanda 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 DB2012 Rwanda ranked 3rd in Africa and best performer worldwide, from 58th position WDB2011 to 45th out 183 countries assessed.

In WB indicators; did poorly on trading across borders (ranked 155th from 159th for DB2011) 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 4o 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 load limits.

Congestion created by weighbridges, buses and trucks have to wait for many hours

Transit issues cont..Un published fees and

charges on weighbridges, roadblocks and gates about USD880 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 24h/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.

24h/7 concept – improved clearance time at borders

Introduced Pre –clearance system

Implemented use of RADDex platform

Thank you for your attention!