Customs being modernised across Africa

Clearing agencies throughout Africa are having to rethink their business models as the authorities put their customs systems on-line. Border operations become marginal when clearing can be done remotely, and the strategic advantage of having offices at the border posts becomes a cost – except when there are problems, and the customs officials want to sit face-to-face with the clearing agent. All of South Africa’s neighbours have either implemented electronic systems, or are in the process of doing so. Most rollouts are, or have been marked by severe disruptions to trade flows. However, leading the continent in the modernisation and harmonisation of customs is the East African Community (EAC), consisting of Burundi, Kenya, Rwanda, Tanzania and Uganda. They are busy implementing a common Authorised Economic Operator (AEO) model, which is one of the first of its kind in the world. The proposed common AEO model is part of the World Customs Organisation (WCO) -East African Community Customs modernisation project, which is sponsored by the Swedish International Development and Cooperation Agency (Sida). It is designed to implement modern customs procedures for the five East African Community (EAC) countries, based on WCO international conventions and standards. All EAC partner states are still in the pilot phase. Kenya and Uganda have been actively promoting the project by requesting interested parties to apply and be evaluated for possible consideration. By last August, Kenya had registered over 60 companies for the programme. Southern African countries are also working together to streamline trade flows through a process which includes reaching agreement between a long list of stakeholders.