Customs Automation and Trade Facilitation In the Case of Ethiopian Customs

1
Customs Automation and Trade Facilitation(In the
Case of Ethiopian Customs)

• The type of software adapted in the Ethiopian
  Customs Environment is UNCTAD- ASYCUDA
• The targeted objectives from the implementation
  of the ASYCUDA system in the Ethiopian Customs
  can be identified as
• Trade facilitation
• Effective revenue collection
• MIS and generation of trade statistics

2
What is ASYCUDA?

• The Automated System for customs Data
• It is a computerized customs management system
  which also covers most foreign trade procedures.
• It is adaptable to suit the national
  characteristics of individual customs regimes
  ,duties etc
• ASYCUDA is a standardize system that takes into
  account the international codes and standards
  developed by ISO, WCO and UNTED

3
Advantages of the System

• Customs computerization speed up the clearance of
  goods and reduce delays in deliveries to
  customers.
• As a Result the associated overhead costs which
  affect the cost of imports and the price of
  export are greatly minimized.

4
Advantages (continued)

• Provides more precise external trade statistics
• The computerized database on trade is used for
  statistical economic analysis
• generate timely reports as required
• cash Account is automatically closed every other
  working day.

5
Initial Implementation

• The ECuA selected the ASYCUDA system in 1996 to
  automate its collection stations.
• Initaly the ASYCUDA version 2.7 was implemented
  since 1998
• The connectivity was WAN in two stations, and
  LAN in seven customs posts.
• The system helped in speeding up the declaration
  processing and shortening the clearance time.
• It was also used to generate timely statistical
  reports

6
WHY THE CHANGE TO ASYCUDA?

• To answer concerns that were not adequately
  addressed by the earlier version, ASYCUDA version
  2.
• ASYCUDA has also been designed to be inline
  with changes in technology to meet demands of
  modern trade.
• To change processes and the way things are done
  to introduce efficiency

7
THE MAIN BENEFITS BROUGHT IN the system

• Direct Trader Input (DTI)
• This is a situation where declarations are
  registered on the Customs systems directly by the
  Declarants from their premises or some other
  location.

8
Benefits to the Trade

• Reduction in clearance time and other costs for
  the declarant/importer
• Traders have full control on the information
  entered on the customs system
• Declarations can be registered on the customs
  system any time as required

9
DTI Continued.Benefit to the Trade

• The facility allows immediate access to
  declaration information as declarants are able
  to check on status of declarations from their
  premises.

10
DTI continuedBenefits to Customs

• Reduced costs for declaration processing
• Better use of manpower as the registry officers
  get re assigned on an other task.
• Helps in realizing objectives of quicker clearance

11
Benefits brought by A continuedSELECTIVITY

• What is selectivity?
• Selecting for Examination the highest risk
  passengers, goods and conveyances based on risk
  assessment

12
ContinuedSelectivity

• In ASYCUDA, Selectivity is a trade facilitation
  tool that channels the declarations to either
  physical, document, post entry examination or
  express release depending on risks allocated.

13
Selectivity Continued.

• Expected Results
• Compliant traders, low risk consignments will
  have minimal or no delays in clearing with
  Customs
• Selection for either physical or documentary
  check will be based on documented instructions
  issued to the system.

14
Actual Implementation of A in the ECuA

• An agreement was made between the Government of
  Ethiopia and UNCTAD IN Oct.2003.
• A one-year Project plan was prepared to implement
  A at the HQ and the project site (AAA Cargo
  section)
• The ASYCUDA system implementation commenced in
  December, 2004.
• The first pilot site (AAA) live operation was
  launched on Aug 23, 2004
• As per the project plan the rollout program was
  to AAL (Addis ababa Lagare) which is the biggest
  customs collection post where more than 80 of
  the countrys import and export is cleared.
• The live operation started on Nov.18, 2004.

15
Rollout to Other Customs Stations

• After the completion of the actual project plan
  It was decided to extend the implementation of
  the system to the rest of the customs posts all
  over the country Including the Djibouti
  coordinating office.
• Within the past 16 months the following stations
  are connected with WAN to our main server here at
  the HQ.

16
stations connected to the SYstem

• Addis Ababa Air Port (Cargo)
  (AAA)----------------23/08/2004
• Addis Ababa Lagare
  (AAL)----------------18/11/2004
• Addis Ababa Passengers section (AAP)
  ------------ 02/12/2004
• Addis Ababa Post Office (AAPX)
  ----------- 11/01/2005
• Nazreth (NAZ)
  ------------ 28/01/2005
• DireDawa Lagare (DDL)
  ------------ 02/02/2005
• DireDawa Air Port (DDA)
  ------------ 07/02/2005
• Combolcha (COM)
  ------------ 01/03/2005
• Mekele (MEK)----------------20/04/2005
• Jijiga
  (Jij) ------------------20/04/2005
• Two other customs stations (Moyale and
  Djibouti co.office) are on the way to be live
  soon if the connectivity problem is resolved.

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Continued.

• Every net work installation and other activities
  for Moyale station was accomplished. However, as
  the connectivity is not yet in place we cant
  make it live
• the Djibouti coordination office is also
  connected to our server but it isnt yet live due
  to the instability of the connection.
• In general,1o customs stations are directly
  connected to our main server using the WAN
  system.
• Two other customs stations are on process to be
  connected soon.

18
The remaining customs sites

• According to the work Plan, the remaining five
  entry/exit customs posts (Dewele,
  Galafi,Humera,Metema and Mille) are to be
  connected up to June,2005.
• The tele infrastructure, the budget and other
  requirements are expected to be in place in order
  to meet the action plan.

19
Financial Requirements for the remaining
implementation

• The budget allocated from UNDP ,Government and
  from other sources is utilized before the end of
  2004.
• The Project is seeking for additional budget
  (including for the initial cost of tele
  connectivity) to accomplish the implementation of
  the system in the rest of the five sites
  mentioned above.

20
Major Achievements

• DTI facility is applicable in the system. Five
  customs clearing companies are connected to our
  main server. Other 9 companies are in process to
  be connected.
• The risk management facility (selectivity) is in
  place
• Clearance time is shortened as a result trade is
  facilitated.
• Different types of reports are available from the
  system for various users.
• The system is friendly, so that it can be
  interfaced to other economic units.

21
Major Challenges

• Frequent connectivity failure.
• Lack of skilled manpower specially in the field
  of IT.
• The system security issues are not well managed.
• As there is no cost recovery mechanism,
  replacement of hardware and other equipment will
  be a problem for the future
• The sustainability of the system will be the
  next challenge .