Electronic single window system enhances transparency in trade

Richard Kamajugo The adoption of the Electronic Single Window system (eSW) provides the key to simplifying cross-border trade and the enhancement of real-time information sharing and exchange between customs and other border agencies and private sector stakeholders. It has also enhanced Rwanda’s competitive advantage as an efficient player in the area of trade. The Electronic Single Window was launched in 2012 in partnership with TradeMark East Africa (TMEA). The implementation of a single window system has enabled the business community to submit documents to different regulatory agencies through a single point compared to the previous cumbersome and time-consuming practice where they had to move from one place to another. Such documents include customs declarations, applications for import/export permits, and certificates of origin. The single window facilitates international trade by expediting and simplifying information flow between the private sector and the regulatory government institutions, thereby reducing time and cost of doing business. Richard Tusabe, the Commissioner General of Rwanda Revenue Authority says: “As we continue to streamline the Electronic Single Window operations, we look forward to contributing to a reduction of our poverty levels from 45 per cent as at 2012 and high dependency on foreign aid through cross-border trade, competitiveness and entrepreneurship and the promotion of regional economic cooperation.” Following the roll out of the system in 2014, cargo clearance time through customs was reduced by over 85 per cent from 11 days to just over one day, and the cost of clearance of goods fell by the same percentage from Rwf30,000 to Rwf4,000. Time lapses between registration and payment fell by 26 percent and the export release time registered a 64 per cent reduction by shrinking from two days 19 hours to one day 10 hours. The once dusty desks and filing cabinets that were stacked high with paper at the Rwanda Revenue Authority are now clean and neat. In addition to embracing the environmentally-friendly paperless culture, the electronic application and approvals of exemptions has expedited clearance of tax exempt goods for investors from four days to just half an hour. With the swifter clearance of cargo, Rwanda registered an increase in the amount of inspected cargo from 14 per cent in 2012 to 42 per cent in 2014. These dramatic transformations translate into reduction of friction and duplication that once haunted the Rwanda Revenue Authority (RRA) and its partners in the past. They are now able to work better, faster and more efficiently together. Traders also receive real time information on progress of processing their transactions. Further, there is real-time monitoring of processing export and import consignments with clearing agents receiving Short Text Messages (SMS) and emails notifying them on progress of processing their consignments, which has enhanced transparency and predictability. All regulatory requirements and issuance of release notices are computerised, resulting in improved efficiency and significant reductions in attendant indirect costs that arose from the previously cumbersome and time-consuming processes. Transporters too are making efficient use of their vehicles. In 2014, 27,060 import cargo trucks entered Rwanda, with the average cost of a truck per day at $225, the cost savings to transporters are estimated at $6 million in 2014 alone. With the web-based ReSW, officials at first point of entry into the East African Community (EAC) can now quickly access all the necessary information and clear goods in a shorter time. This works well with the Single Customs Territory (SCT) being implemented in the EAC, and which has greatly contributed to facilitation of trade along the Northern and Central corridors. Perhaps the biggest secret to Rwanda’s success is its ability to curb corruption by strengthening transparency and accountability. Rwanda is among the four African countries ranked lowest on the Corruption Index. The other three are Botswana, Cape Verde and Mauritius, and in the World Bank’s Doing Business index performance of 2016 Rwanda was ranked second in Africa after Mauritius. Rwanda’s second Economic Development and Poverty Reduction Strategy (2013-2018) emphasises an increase in external connectivity of the economy and boosting exports to achieve economic transformation, while TMEA aims to reduce poverty through competitiveness and the promotion of regional integration and development. The writer is senior director at TMEA sidossou@theservicemag.com

News

Electronic single window system enhances transparency in trade