Kenya rules out hitches under WTO’s trade automation deal

Kenya has ruled out hitches as it begins to open its customs and border procedures to the rest of the world under the WTO’s ambitious Trade Facilitation Agreement (TFA).

Kenya, one of the 60 states that had signed the TFA by yesterday, says it is already running ahead of other developing states after recent automation of its ports and border procedures.

Though critics have argued that the technical capacity and infrastructure investment required to support TFA implantation is beyond most poor countries.

Under the protocol, each signatory undertakes to ensure smooth flow of goods by expanding transport infrastructure and simplifying cross-border procedures.

They are also under obligation provide shippers with ready information regarding procedures and documentation required for importation, exportation, and transit via port, airport, and border points.

Any shipper calling at a signatory’s facility must furnished with details of tax, regulatory fees, rules for the classification or valuation of products for customs purposes, rules of origin, penalties, procedures for appeal and trade restrictions.

Running ahead of the pack

“We have signed and deposited the TFA instruments in Geneva. We are already running ahead of the pack having implement most of the reforms contained in the pact,” Interior PS Karanja Kibicho said.

Dr Kibicho had spearheaded Kenya’s WTO engagements until President Kenyatta transferred him from the Foreign Affairs and International Trade docket late last month to the Interior Ministry.

He added: “Most of the work that organisations such as Trade Mark East Africa (TMEA) have done at the ports and border are in line with TFA.”

Kenya has installed the electronic single window system of clearing imports, cutting the time-consuming paperwork and the corruption-breeding physical contact.

The single window system that Kenya has been implementing from July has been cited among the most disruptive changes that have affected international trade this year.

It allows traders to file and submit regulatory documents at a single portal.

“The implementation of Kenya’s National Single Window System is consistent with the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) which advocates for Simple, Transparent and Effective Processes for Global Commerce”, says Kenya Trade Network Agency CEO Amos Wangora.

The country has also automated its airports and seaport procedures, easing clearance of cargo.

“We have done a lot of work to remove non-tariff barriers not only in Kenya but across the East African region,” said TMEA deputy CEO David Stanton.

The TFA — which most of the 161 countries attending the 10th WTO ministerial conference in Nairobi are expected to sign by tomorrow — takes effect immediately.

Already 108 member states have deposited their ratified instruments in Geneva.

The WTO estimates that the TFA will unlock the hidden potential of global trade, raising volumes of merchandise exchanged across the world by at least Sh100 trillion ($1 trillion).

It states: “Each member (signatory) shall adopt or maintain procedures allowing for the submission of import documentation and other required information, including manifests, in order to begin processing prior to the arrival of goods with a view to expediting the release of goods upon arrival,” the TFA reads in part.

The agreement allows poor states such as Kenya to receive technical assistance from rich countries.

“Each member shall, as appropriate, provide for advance lodging of documents in electronic format for pre-arrival processing of such documents.”

It adds: “Each member shall, to the extent practicable, adopt or maintain procedures allowing the option of electronic payment for duties, taxes, fees, and charges collected by customs incurred upon importation and exportation.”