Importers have criticised the Authorised Economic Operators (AEO) programme for allegedly failing to facilitate shippers to clear their goods especially during the current crisis brought about by the Coronavirus pandemic.
The AEO programme requires importers and agents to self-assess their customs entries while the Kenya Revenue Authority (KRA) then conducts random risk-based interventions.
The KRA authorises some trusted companies to clear through the system referred to as green channel for faster clearance of goods.
However, shippers say the programme has limited benefits to operators, and this has prevented more importers and agents from joining it.
Importers have criticised the Authorised Economic Operators (AEO) programme for allegedly failing to facilitate shippers to clear their goods especially during the current crisis brought about by the Coronavirus pandemic.
The AEO programme requires importers and agents to self-assess their customs entries while the Kenya Revenue Authority (KRA) then conducts random risk-based interventions.
The KRA authorises some trusted companies to clear through the system referred to as green channel for faster clearance of goods.
However, shippers say the programme has limited benefits to operators, and this has prevented more importers and agents from joining it.
There are less than 300 firms in the programme to ease clearance of goods especially in times of crisis as is being experienced with the Covid-19 pandemic where cargo is being delayed at the ports of entry.
Shippers said firms in the AEO programme are facing delays in clearance of their cargo by other government agencies despite being cleared by the taxman.
They now want the Kenya Ports Authority (KPA), the Kenya Bureau of Standards (KEBS) and Port Health, among other agencies, included in the programme to expedite clearance of goods.
Despite reduction of the number of agencies operating at the port from a high of 25 to only four, the agencies have continued to be a major cause of delay since they still have to carry out the checks outside the port.
The Shippers Council of Eastern Africa (SCEA) says inclusion of the agencies into the AEO would make the programme more effective and relevant to current changes in the business environment.
“Since the AEO is only recognised by the KRA, at times you find that goods belonging to an importer who operates under the green channel are delayed by another government agency which defeats the very sense of faster clearance of goods. “We would want a situation where the channel is used for trade facilitation which can only be achieved when other agencies are incorporated into the programme,” said Gilbert Langat SCEA chief executive officer in a phone interview.
He said they have had to intervene when goods belonging to a big importer are delayed by another agency yet they enjoy the AEO status.
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