Simplified border procedures benefit small traders

A study by Trademark Southern Africa (TMSA) into how simplified border-crossing procedures for small traders at the Chirundu one stop border post have reduced transit times and simplified trade formalities is proof that eliminating non-tariff barriers (NTBs) will significantly enhance African trade. The study found that since the introduction of the new procedures in 2012 trade has increased significantly through the border post as it has directly benefited small traders. This was achieved through the implementation of the Common Market for Eastern and Southern Africa’s (Comesa) Simplified Trade Regime (STR) that ultimately exempts a list of goods from duty if they are valued at less than $1000. In its report TMSA found that small traders were moving faster through the border post at reduced costs, allowing many small-time exporters and importers to have bigger profit margins, ultimately letting them grow their businesses and thus regional trade. According to the TMSA report, the STR has three elements to it. The first is a simplified Certificate of Origin from customs as the trader leaves the country to certify the origin of the goods, secondly a common list of goods that may use the STR that is displayed at the border offices and through cros-border trade associations, and thirdly a simplified customs document that is filled in as the trader enters the country to which he is exporting. Trade information desks have also gone a long way to helping traders understand the STR. Growing intra-regional trade in Africa is a key priority for many governments, but experts maintain to achieve this NTBs have to be removed. While more effort is being made to reduce the NTBs hampering trade in especially East and Southern Africa there are still many delays due to lengthy and costly customs clearance procedures; rules of origin; costly road user charge and fees; inadequate trade-related infrastructure; and sanitary and phyto-sanitary measures that are imposed. TMSA has been a frontrunner in the elimination of NTBs, facilitating an online reporting tool for the reporting and monitoring of NTBs - and while the system does not solve NTBs it does streamline the process of identifying and processing complaints submitted by stakeholders, allowing for the systematic and transparent management of reported NTBs across the region. CAPTION Simplified Trade Regime at the Chirundu border post exempts a list of goods valued at less than $1000 from duty.