Electronic window system eases cargo clearing - report

The cost and time of clearing with customs have drastically reduced thanks to the Rwanda electronic single window system.

Tuesday, March 08, 2016

The cost and time of clearing with customs have drastically reduced thanks to the Rwanda electronic single window system.

A report released by TradeMark East Africa last week indicated more reduction in the time it takes to clear with customs at the point of entry and exit for importers and exporters.

Overall the electronic window has significantly reduced the direct and indirect time required by clearing agents to obtain cargo documentation.

The project was first launched in 2012 with the intent of facilitating trade and enhancing international competitiveness.

The time it takes to file and clear goods has been reduced from 14 days in 2012 to less than a day courtesy of the electronic platform.

Similarly, obtaining an exemption from Rwanda Development Board (RDB) has been reduced from 4 days to less than an hour.

This according to the report has resulted into a reduction in the cost of clearing goods and obtaining exemptions to less than Rwf4000 down from Rwf30, 000 in 2012.  

However, the report revealed no clear relationship between the reduction of cost and the price of commodities.

Funded by Trademark East Africa to a tune of $ 3.3 million, the project has played a critical role in reducing the cost of doing business not only in Rwanda but across the region, Hannington Namara the TMEA country director said.

Overall, the project has boosted not only efficiency but sustainability of cross border trade in the region, Namara noted.

He was speaking during the launch of the Rwanda Electronic National single window formative evaluation report last week.

According to Richard Kamajugo, the Senior Director for trade environment at TMEA, the project has helped expand cross border trade through simplified information flows between traders and government institutions.

"We are confident that the objectives have been realised which reassures on the potential to exploit business and investment opportunities in the region.”

The need to embrace automation and support the process of the other government agencies to leverage on ICTs and online platform is critical for sustainable economic growth.

Richard Tusabe, the Rwanda Revenue Authority, Commissioner-General, said embracing ICT is a core for the full implementation of single electronic window.

Government’s overall objective is to achieve the status of middle-income status by 2020 through private sector-led development; however, this cannot happen if we don’t embrace technology so as to boost our competitiveness and entrepreneurship skills.”

Tusabe added that several reforms and interventions have been made to further reduce the cost of doing business in the country in terms efficient custom procedures.

Mark Cyubahiro Bagabe, the Director General, Rwanda Standards Board (RSB), said the electronic window has been a significant player in reducing the risks involved in cross border trade.

"It has been at the heart of tracking standards and quality benchmark for all the imported products.”

Traders hail the project

Robert Bapfakurera, the Director General of Roba business LTD,   said the new innovation acts as a yard stick for trade predictability.

"It’s good that the government of Rwanda is committed to sustain the operation of RESW, even increasing access to internet and future availability of mobile access to electronic single window  can mean the difference between making profits and losses,” Bapfakurera said.

He hailed the project for simplifying the cost of doing cross border trade and enhancing competitiveness through improved logistics technologies.

"The cost of transporting a container from Dar-es –Salam has reduced from at $5000 to less than $3200 thanks to this window.

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