When customs procedures become burdensome and trade barrier themselves in trade facilitation. The case of Zimbabwe
With the country faced with need grow revenue , resuscitation of the local industry and to attract Foreign Direct investments (FDIs) there is need for a coordinated effort from all principal. One of the key regulatory bodies which can contribute to this realization is the customs administration, Zimbabwe Revenue Authority (ZIMRA). The primary tasks of customs administrations relate to the movement of goods.
As the national gatekeeper it has bestowed with two keep functions which are collection of revenue and facilitating legal trade. The functions seem contradictory at face value but in actual fact their interconnectedness determines the capacity for a country to grow its industry and remain visible in the global trade arena. History and geography combine to select and create border posts as convenient points at which to control the movement of goods and people, managing the interface between distinct national legislations and identities.
Exporters and importers in Zimbabwe face many administrative barriers and they are made to comply with complex regulations, deal with a large amount paperwork, subject their cargo to frequent inspections, and wait for lengthy customs clearance. This is even imposed on transit cargo which research has shown as the need for diversion of transit even through longer routes. Efforts have been done on the minimization the burden of these procedures but results have remained low as delays continues to be experienced on importation, exportation and on transit cargo.
ZIMRA has also the following responsibilities protection against terrorist activities, the enforcement of quantitative restrictions on imports or exports of particular, the detection and seizure of prohibited items, the enforcement of sanitary and phyto-sanitary restrictions and of rules relating to endangered species and intellectual property rights, the implementation of exchange restrictions and checking for movements of large quantities of cash suggestive of money laundering.
There is little gain in speeding up the clearance of goods for tariff purposes if their onward movement is further delayed by other procedures related to the importation, exportation or transit movement .the continued use of manual processes for customs documentation in Zimbabwe coupled with deployment of electronic systems without adequate electricity or capacity for repair, contributes to customs delays. These delays, in turn, increase the likelihood of traders making “facilitative payments” (i.e. bribes) to customs officials to speed the clearance of their goods through border checkpoints and increases trade costs which has a bearing on the pricing model on imports and competitive advantage on the exports .
Zimbabwe as a signatory of the World Trade Organization (WTO) and the World Customs Organization (WCO) accedes to the international customs standards. The WTO Trade facilitation Agreement (WTO TFA) and the Revised Kyoto Convention seeks to address having the customs procedures and policies becoming Non-Tariff Barriers (NTBs) themselves. The main component of the WTO TFA, Bali Package is an agreement on trade facilitation, requiring WTO members to adopt a host of measures streamlining the customs process, such as pre-arrival processing of shipments, electronic documentation and payment, and the release of goods prior to the final determination of customs duties, with a view to minimizing the incidence and complexity of import, export, and transit formalities and to decreasing and simplifying import, export, and transit documentation requirements .
The globalization of supply chains, the expansion of just-in-time (JIT) manufacturing, and the growth of e-commerce have stimulated efforts toward customs reform. At present, more than half of all goods that cross international borders are intermediate goods, reflecting the geographic fragmentation of production networks and an increase in vertical specialization.
There has been a notable achievement on implementation of recommendations on trade facilitation especially the use of the ASYCUDA for customs declarations which however has been affected by human interference resulting in further delays. The congestion at border post and delays in exports has remained perennial in Zimbabwe without clear solution on board. Industries have complained year in tear out but there seems to be disinclination on the authority to find long lasting solutions to these aired challenges. The introduction of electronic seals received support as it was an improvement from the labor intensive and resource consuming escorts, however of late with increased transit cargo, trucks are spending over forty-eight hours at borders awaiting seals to be delivered. The benefits of E-seals to the transit cargo are being eroded by the shortages and internal procedures of the authority
It is crucial for ZIMRA to work on its customs procedures and ensure they lessen the burden on the business if the country is to derive benefits from the increased global trade. The customs procedures need to be aligned to global trends which require increased efficiencies on the part of customs administrators. The business and the country is waiting for a fully reformed customs authority which puts the country and business interests first. This will put Zimbabwe at a better position globally and attract more business.
LEVIOUS CHIUKIRA
Managing Consultant at Gleam Consultancy
+263773065062
lchiukira@gmail.com
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