The Kenya Revenue Authority (KRA) Integrated Customs Management System (iCMS) cargo regime has gone live in a move that is expected to be a game-changer in the cargo clearing process in the country and sealing loopholes on revenue loss. The new system has been developed in line with the World Trade Organisation’s (WTO) requirement for the simplification and harmonisation of international trade procedures.
The new customs administration will deliver agility, accuracy, security, and transparency using systems that are empowering rather than restrictive. It is a modern, robust and efficient system that runs on the latest technological platforms which seamlessly connects with KRA’s internal systems and external stakeholders’ systems to achieve faster cargo clearance. It replaces the Simba system, which the taxman has been using for over a decade to clear goods.
iCMS enables trade efficiency by increasing speed in the cargo clearance process, reduction of complexities associated with several systems of the automation of manual processes and re-engineering of processes.
Implemented in phases, the system aims at improving Kenya’s Ease of Doing Business by simplifying processes that enable pre-arrival processing and entrenching a process that will allow Authorized Economic Operators (AEOs) to enjoy a greater preferential treatment that previously could not be accorded to them due to limitations of the previous Simba system. The system is expected to see more players join AEO status.
Once fully implemented, iCMS shall counter security threats through a robust risk management system that will ensure a secure trade chain, facilitate regional integration by integrating with regional Revenue administrations and provide transparency of the cargo clearance as the system eliminates human intervention.
“All existing customs processes have been developed into modules in the iCMS to make up one mega system. iCMS has 43 modules, which are used in the management of cargo and people,” said Mr Kevin Safari, the commissioner in charge of Customs and Border Control.
The main objective of bringing iCMS on board was to integrate and harmonize customs processes into one system to enhance efficacy in operations, according to Safari.
Simba system was launched in 2005 and was later enhanced in 2014 to deliver as per the market demands back then. Simba had reached its optimal enhancement stage hence the need for a more robust system.
“The benefits iCMS presents to all players cannot be overemphasized. Industry players such as importers and exporters are set to benefit substantially once iCMS is fully implemented as the system will enhance faster clearance of cargo at the ports of entry,” Mr. Safiri said.
Added he; “ In this regard, KRA projects a more than 60 percent reduction in cargo clearance time, which will translate to decongestion at the ports as well as faster delivery of goods to their various destinations that will, in turn, facilitate trade not only in Kenya but also in the East African bloc.”
The system further enables tracking of cargo in real-time from the port to the final destination. Consequently, cases of cargo diversion, which cause massive losses to cargo owners and revenue loss will be a thing of the past once the system is fully operational.
The biggest win for KRA in the implementation of iCMS is enhanced revenue collection at the ports of entry. This will be achieved through enhanced operational efficiency in customs processes.
Automation of previously manual customs processes like Risk Management and Valuation that is sometimes shrouded by subjectivity will be eliminated, reducing officer discretion and allowing for objectivity and integrity of processes, according to commissioner Safari.
The system will enhance operational efficiency, part of which involves reducing the amount of paperwork involved. To a substantial extent, therefore, iCMS will reduce this as information will now be captured and stored electronically.
In turn, this will save KRA and other stakeholders involved a lot of resources that would otherwise go into paperwork. This will significantly enhance efficiency and convenience for all partners including clearing agents.
“Customs revenues are therefore bound to go higher once the system is fully implemented. Instances of under-declaration and misdeclaration of cargo are also expected to reduce significantly, causing a great impact on revenues and higher compliance levels,” Mr. Safari said.
KRA is rolling out the iCMS in phases. The air cargo function went live in various airports across the country including Jomo Kenyatta International Airport (JKIA) on March 10, 2019. So far, the system is performing according to the KRA projected expectations, Mr. Safari said.
“KRA is at the moment piloting the sea and land functions of iCMS. We expect to have these functions operating fully in due course” he added.
The system has been developed with various stakeholders who are directly or indirectly touched by the Customs process. Some of the stakeholders involved include the Kenya International Freight and Warehousing Association (KIFWA), DHL, importers, exporters, and shippers.
KRA has also been in engagement with State Partners such as the Kenya Bureau of Standards (Kebs), Kenya Airports Authority (KAA), Kenya Ports Authority (KPA), as well as regional development partners such as The TradeMark East Africa (TMEA).
iCMS is fully integrated into the Single Window System and the two systems will play a crucial role in the cargo clearance process. These include permit approval and clearance, The Partner Government Agencies approval in TradeNet System to enable traders to import various goods.
There is also a Cargo Clearance Module that enables Partner Government Agencies (PGAs) to release cargo online. Also, dissemination of declaration data to all PGA will be done through the TradeNet system.
“This enables the PGAs to know what traders are importing and make prior planning for verification or inspection,” Mr. Amos Wangora, KenTrade Chief Executive Officer said.
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