New cargo tracking tool to tighten East Africa ties

A new electronic cargo tracking system for monitoring cargo transiting through Kenya to neighbouring countries within the East African Community is expected to enhance trade competitiveness through improved security of cargo along transit routes.

The Regional Electronic Cargo Tracking System (RECTS) integrates transit cargo tracking platforms for three Northern Corridor Countries namely Kenya, Uganda and Rwanda with plans to roll out the same to include South Sudan, Tanzania and ultimately to destinations outside the EAC bloc.

RECTS, which is funded by Trade Mark East Africa (TMEA) through a grant from the UK’s Department for International Development (DfID), will add to on-going efforts to reduce the cost of doing business in the region.

The cost reduction is through improved cargo predictability and increased truck turnaround time that will ultimately lead to lower transport costs.

The system will also enhance cargo safety and help traders to better predict arrival of goods. RECTS will also reduce time wastage because it sends an alert when a truck stays in a particular spot longer than needed.

Furthermore, importers will be able to monitor the movement of their goods.

Transport delays and cargo theft are among the key concerns to importers and exporters who are forced to pay high insurance cover for goods on transit.

This new tool represents a key milestone in the drive to cement East African co-operation as this is the second major step taken after the roll out of the Single Customs Territory initiative in 2013.

By integrating transit cargo tracking platforms, the three Northern Corridor Countries, aim to achieve seamless operations across the borders.

This will not only make Customs border checks redundant but also get rid of cargo diversions that existed due to border changeover processes.

Despite previous efforts to promote fair trade, illegal cargo continues to enter the region through physical smuggling and technical violation of customs/transit procedures where tax evaders offload into the market goods not declared to Customs.

This cross-border tracking system will deal with this problem through real time monitoring and use of CCTV cameras at customs offices to minimise possible connivance between customs officers and traders.

The cameras capture number plates of trucks as they enter or exit as well as seals fixed on trucks to deter offloading of goods destined for another country.

Moreover, by having Customs administrations in three countries tracking the same cargo on virtually the same platform, chances for collusion between importers and staff will be substantially diminished.

Officers manning the Central Monitoring Centre (CMC) can detect any illegal activity when a seal is tampered with or when a truck deviates from its route.

This is possible because the seal is loaded with important information about the truck such as the type of cargo it is carrying, driver’s details, truck details, container details, origin and the route it is supposed to travel to the final destination.

Any tampering with the electronic seal or deviation from the defined route automatically sends alerts to the CMC and the revenue authorities’ Rapid Response Unit is notified by the CMC to take action.

Using a navigation system on a tablet, officers can trace a problem to the exact spot and both audio and video images re-rayed to the CMC from the scene.

The system will not only enhance trade competitiveness through improved security of cargo along transit routes but also promote information exchange among the revenue agencies and the trading community.

RECTS will also eliminate loopholes in the law that prescribe weak punishment.

Under the East African Community Customs Management Act, an exporter or importer who deliberately breaks Customs seal is fined Sh250,000 irrespective of the value of the taxes such a trader attempted to evade.

RECTS will make cross-border EAC trade smoother besides minimising opportunities for tax evasion.

This constitutes a big boost to intra-EAC trade, complementing strides achieved through the implementation of other ground-breaking initiatives including One-Stop Border Posts, seven of which have already been completed.