The integration of national economies into the global system has resulted in remarkable trade growth. Global trade relies heavily on the efficient movement of goods and services across borders. Customs is therefore required to provide extensive facilitation of legitimate trade while maintaining control over the international movement of goods, persons and conveyances.
As we strive to provide an appropriate level of facilitation to legitimate trade, we must maintain regulatory controls in a way that reduces the impact of interventionist strategies as much as possible.
In seeking to achieve a balance between these goals, Customs has been moving away from traditional control methods. Ordinarily, the submission of documents for the clearance of imported goods is done after the arrival of vessels.
Processing of documents begins when the goods are already at the port, thereby considerably delaying the release process as Customs and the relevant partner government agencies do not make use of the time afforded by the duration of voyage for risk assessment and declaration processing purposes. These delays translate into increased trade costs and loss of competitiveness.
Kenya ratified the WTO’s Trade Facilitation Agreement on December 10, 2015 to ease trade processes. The agreement provides for various reform measures to cut delays at the points of entry and exit, one of which is the pre arrival processing (PAP) programme.
PAP is the process of electronic submission of import documentation and other required information to Customs and other relevant government agencies prior to the arrival of goods with a view to expediting their release upon arrival.
This will help reduce delays and congestion at the points of entry, consequently, reducing clearance time spent after goods arrive thereby aiding in the facilitation of trade and accelerating movement of goods across borders.
Article 7.1.2, of the WTO’s Trade Facilitation Agreement requires that “Each Member shall, as appropriate, provide for advance lodging of documents in electronic format for pre-arrival processing of such documents.”
Furthermore, Standard 3.25 of the Revised Kyoto Convention (RKC) 3.25 requires that “National legislation shall make provision for the lodging and registering or checking of the goods declaration and supporting documents prior to the arrival of the goods”.
On the home front, Section 34 (3) East African Community Customs Management Act (2004) states that “Entries for goods to be unloaded may be delivered to the proper officer for checking before the arrival at the port of discharge of the aircraft or vessel in which such goods are imported; and in such case the Commissioner may in his or her discretion permit any goods to be entered before the arrival of such aircraft or vessel or vehicle”.
PAP targets all consignments imported by sea and air. The importer and, or the clearing agent should lodge the declaration and make payments at least 48 hours (2days) before expected arrival of vessel. Upon arrival of vessel and discharge, consignments are subjected to minimal interventions and the release process is expedited.
PAP brings a higher level of predictability and transparency to Customs procedures hence improving the business environment by supporting just-in-time delivery, reduction of storage, insurance and transaction costs, and leading to increased economic competitiveness and investment.
We encourage our esteemed customers to make good use of the PAP system.
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