Users of the Kentrade online cargo clearance system will start paying registration fees this month as the agency moves on to fill the Sh 400 million annual budgetary gap it faces.
The charge is geared towards ensuring the sustainability of the single window system, TradeNet System, in order safeguard the gains so far realized in the industry since the introduction of the system, according to the agency Chief Executive Officer Mr. Amos Wangora.
The government has been keen on the budgetary allocation to State Corporations giving them room to embrace creativity and new innovations to remain afloat. The state agency, domiciled at the Treasury, has been running the online cargo clearing platforms by fully relying on government budgetary allocation.
The budgetary allocation of Sh 600 million the agency has been receiving from the Exchequer is not sufficient to meet its expanding roles.
All the company using the platform will be required to pay an annual registration fee of Sh 5000, according to a Gazette Notice that was issued December last year. This will commence by the mid of this month once the system has been aligned for this according to Amos Wangora, KenTrade CEO.
Application for Unique Consignment Reference (UCR) number in the system will pay Sh 750 on or before 10th of the preceding month, starting from 1st March of this year. The UCR helps in accessing all the documents submitted in the online cargo clearance platform.
A fee of 7,500 shillings will be charged by the system for the impending arrival notice of the consignment. This fee will be payable on or before the 10th day of the preceding month, also starting on 1st March of this year.
In a recent sensitization workshop on the user fees, stakeholders applauded KenTrade for operating the online system successfully, which has eased the import and export cargo trade that is now saving the industry Sh 2.5 billion according to the World Bank.
The system has also improved connectivity, security, process and procedures where the average number of steps involved in processing clients applications reduced by almost 50% and increased the level of automation of processes and procedures, from 19% before TradeNet System to 87% as at mid 2018
It has also removed the potential to falsify documents. Minimized the time required to confirm authenticity of documents and elimination of the need to submit hardcopy permits.
Kenya Ship Agents Association (KSAA), Shippers Council of East Africa (SCEA) and Kenya International Freight and Warehousing Association (KIFWA) supported the new fee, all expressing caution and optimism that the industry players will get value for their money.
Improved compliance, revenue collection and traceability have increased compliance and ensures correct revenue yield. Over US$22.19 million collected through the system per year with majority of Government agencies recording double digit growth in revenue year on year.
The system, which is being upgraded by Crimson Logic, has also improved governance, accountability and transparency through elimination of human interaction between officers in various Government agencies and the private sector.
Payment by users will be done through direct bank deposits, Bank Transfers, Mobile Money and National Payment gateway& eCitizen.
With its key mandate as trade, Kentrade has in the recent years launched a number of other trade facilitation services. For Instance, in 2017, Kenya became the first country in the East Africa Community (EAC) to fulfill World Trade Organization (WTO) Trade Facilitation Agreement that requires member states to publish their trade procedures online. The platform is known as InfoTrade portal.
The portal displays step-by-step procedures to be followed, with contact information on inquiry points, access to forms and other required documents and all relevant trade and customs laws involved in exports and imports.
The development of the InfoTrade Portal was in response to gaps identified in cargo clearance information among the trading community and the need to consolidate all the procedures into one portal accessible to all those involved in International Trade.
“In Kenya, international trade procedures have been obscure to the majority of traders, both current and potential. Due to unavailability of trade information, most traders are unaware of the requirements for both pre-clearance and clearance processes,” Wangora said in an earlier interview.
Another trade facilitation tool that was launched recently is WatchList Screening System- The i-Screen Kenya system. Watch List Screening system allows traders to quickly identify individuals and entities that present a potential source of risk to their business, territory, or overall safety, and then efficiently manage the risks.
“This will help the importers from a global perspective in identifying the legit suppliers while sourcing for import products. It provides credible information on international businesses, minimizes the chances of traders being swindled by unscrupulous entities, provides a platform for verified transactions and reduces time spent pursuing leads with whom one cannot trade with,” said Wangora.
This initiative was as a result of lack of information in the market for traders that have been blacklisted. It creates transparency in international trade as traders can vet international suppliers, assist in making informed decisions thus saving traders financial resources that they would have otherwise lost.
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