Shippers lobby’s new cargo clearance system set for pilot

A new cargo clearance system, expected to lower transaction costs and tighten compliance, is set to be piloted from next week by shippers in the region.

The Shippers Council of East Africa (SCEA) will roll out the Advance Cargo Shipment Information (ASHI) System for two months starting March 18 as the lobby seeks to make trade and cargo importation and exportation less tedious for shippers.

The system, also referred to as Electronic Cargo Tracking Notes (ECTN), is envisaged to reduce congestion at the port and cut operation costs resulting from demurrage and storage charges for imports. The system is also meant to improve efficiency and curb revenue leakages.

Cargo heading to Kenya will be covered by Electronic Cargo Tracking Notes or Cargo Shipment Information — a maritime document issued by the shipper at the loading port providing information including its flows to destination country.

The document will also include details of the shipper, description of the cargo including its value, country of origin, weight, freight rate and other additional charges.

The shippers council has partnered with Antaser Afrique, a Belgium-based company, to roll out the service.

Shippers Council of East Africa chief executive Gilbert Langat says the system will provide shipping information to agents to be able to do clearance and intervention long before the cargo arrives at the port.

“We are lagging behind as a country because Burundi is already using the system while Rwanda and South Sudan are next in line.

“By implementing this system we are working towards reducing days that shippers have to wait before their goods can be cleared and making Kenya competitive in the process,” says Mr Langat.

Shippers will be required to fill a form on the Antaser Afrique website to provide details of the shipment while attaching necessary documents as per the requirements of the local regulatory and intervening agencies in charge of clearing the goods.

The information will be verified upon which ASHI /ECTN number for the cargo will be provided. After verification, SCEA says, the regulatory and clearing agencies will receive the information within 48 hours after loading from the port of origin. 

The shippers’ council say the information will then be available to local regulators, authorities and agencies like Kenya Revenue Authority (KRA), Kenya Ports Authority (KPA), and Kenya Bureau of Standards (Kebs) readying the goods for pre-clearance or action.

“The system is being used a lot in the advanced nations, in the US, for instance, you are required to provide that information two days before the cargo arrives at their port and offloaded to control what gets into their states,” said Mr Langat.

“Usually we hear of contraband, fake goods once they dock and get inspected at the port. If the government has information beforehand and is able to track goods, it will be in a position to deal with illegal trade even before the goods dock at the port,” he said.

The free test run will involve inward exporters, importers, government and regulatory authorities, service providers, interveners and shipping lines. The pilot comes after the council carried out a feasibility study in August to establish the effectiveness of the system after which it was regarded as a viable means to increase trade.

In a statement SCEA said it would roll out the system in Kenya to ascertain its potential to improve efficiency, reduce the cost of doing business, enhance security and compliance, minimise illicit trade and contraband and expose the other economic benefits brought to the fore by the feasibility study.

The system will provide advance information and clearing agents, for instance, will be in a position to lodge documents at KRA and start the clearing process beforehand.

“When the goods arrive you are able to pick up without wasting time because most or all clearing processes are already done. On the other hand, if KRA feels that there is something suspicious about the goods then, they will have done their due diligence and target the cargo way before it arrives,” said Mr Langat.

The stakeholders will be expected to give a report on their experience after the two months. If the reports are positive the council will lobby the government to adopt the system and integrate it in the single window system. Implementation of the system will be done by an external party or the government can capture it in the already existing single window portal.

“We have become a global village and need to operate the way others are working to be able to curb congestion at the port and deal with substandard goods. Efficiency at the port will also attract genuine trader and improve our competitiveness.”