RRA moves to boost efficiency along the northern corridor

The Rwanda Revenue Authority will deploy more officers at customs points along the Northern and Central corridors to boost efficiency and fast-track the implementation of the single customs union. Raphael Tugirumuremyi, the Rwanda Revenue Authority deputy Commissioner General in charge of customs, said more customs officials would be deployed at Mombasa, Dar es Salaam, Nakuru, Kisumu, Nairobi, as well as Rusumo border point to ease clearing of cargo. Tugirumuremyi was speaking at a stakeholders meeting on the new custom tariffs introduced in the 2014/15 financial year budget. The move followed complaints by importers over delays occasioned by limited number of personnel at Mombasa and other customs points on the Northern Corridor. According to importers, there is also need to upgrade the new single window system to facilitate ease of doing trade across the region. “Though there has been an improvement in clearing of cargo, the limited number of officers, delays in loading of containers and inconsistencies in communication are causing unnecessary delays,” Fred Seka, the chairman of the Association of Clearing and Freight Forwarders Rwanda, said. He added that the group was engaging responsible offices to address the issues. It takes a maximum of six days for truckers to transport containers from Mombasa to Kigali along the Northern Corridor from 21 days before the implementation of the single customs territory. The cost involved has also reduced from $4,000 to less than $1,500. “The single window payment system is not consistent as it is over subscribed, which makes it slow to transact business, Ansilla Uwimana,” a clearing agent said. RRA has already posted four officers at Mombasa and one officer at Dar es Salaam, and established a business analysis centre in Nairobi to assist in the implementation of the single customs union. “We have also sent a list of clearing agents across partner states for mutual recognition and accreditation. Therefore, local clearing agents are no longer limited to clearing only products heading to Rwanda, but rather any cargo entering into the region. Tugirumuremyi advised clearing agents to form partnerships with peers from other EAC countries to grow their capacity and expertise and, hence develop the industry. Meanwhile, RRA has urged importers to comply with the new duty remittance scheme 2014/15 due to commence next month. Exports from East African Community will attract zero tariffs only if they are destined for markets outside the region, but will be taxed when being exported with the EAC member states. The initiative is projected to make exports from the region more competitive in global markets, Tugirumuremyi noted. Milk products, edible oil, steel products, cigarettes, cement and fuel products from Uganda, Kenya and Rwanda will be exempted under intra-regional trade arrangement. A list of the products and makers under this scheme will be availed to importers and clearing, according to RRA officials. Deputy Commissioner for taxpayer services department Drocelle Mukashyaka said the revenue body will continue working with stakeholders to create awareness on new developments that may arise as single customs territory gathers pace. Mixed reactions from importers Omar Kabungo, the Mukwano distributing agent in Rwanda, said the new scheme should benefit all products to ‘avoid confusion’. Eric Nzeyimana, an importer, said encouraging exports to global markets and taxing them locally could affect competitiveness of the goods on regional market.