Lobby seeks laws to regulate EA clearing and forwarding industry

Cargo containers awaiting collection at the Port of Mombasa. PHOTO | FILE

What you need to know:

  • The Federation of East African Freight and Forwarders Associations(FEAFFA) this week said that introduction of a Single Customs Territory for the region had affected their operations.
  • The meeting observed that Kenya, Uganda, Tanzania and Rwanda were yet to formulate a standard definition of tasks handled by FEAFFA members.
  • The FEAFFA has since developed its own code of conduct and standard trading terms where all its members commit themselves to upholding high professional standards.

Clearing and forwarding practitioners want East Africa (EA) governments to pass laws regulating the industry to deter malpractices associated with handling import and export cargo.

The Federation of East African Freight and Forwarders Associations(FEAFFA) this week said that introduction of a Single Customs Territory for the region had affected their operations as they were now required to understand how each country’s law are applied on matters import or export cargo.

FEAFFAs executive director John Mathenge said there was also need to have a single regulatory authority for the East African Community (EAC) to help create a seamless arena for clearing agents and freight forwarders to operate in.
“The Bill is an important step towards creation of a harmonised regime making it easy for our members to operate across borders while ending the raging confusion that makes it impossible to create rules and regulations for our industry,” he said.

The meeting observed that Kenya, Uganda, Tanzania and Rwanda were yet to formulate a standard definition of tasks handled by FEAFFA members creating loopholes for graft to thrive at ports and border points.

It noted that heightened activities at ports also saw many FEAFFA members engage in undercutting deals, adversely affecting operations and causing disagreements among members that have in the past raised integrity issues affecting even customs officials.

Mr Mathenge said while the EAC had passed a law defining the role of FEAFFA members and customs agents, no country had domesticated the same denying them an opportunity to formulate professional standards for FEAFFA members.

The FEAFFA has since developed its own code of conduct and standard trading terms where all its members commit themselves to upholding high professional standards while conducting their businesses.

TRAINING MANUAL

While the code of conduct was hailed as a first, FEAFFA observed that lack of a law warning members about various risks associated with falling foul of the code of conduct, some deliberately defaulted as they knew FEAFFA was toothless.

The association, which vouched for self-regulation, said there was a need for the EAC member states to agree on degree, diploma and certificate programmes to be undertaken by would-be FEAFFA members to help professionalise the industry.

Mr Mathenge observed that FEAFFA’s practitioners training manual had since been adopted by five member states as a pre-requisite certificate to any applicant seeking a licence.

But stakeholders assert that while various institutions have since launched various training programmes, there is need to involve industry players to make the academic programmes on offer relevant to the industry.

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