KenTrade online cargo clearance system, TradeNet, has now been fully integrated to Integrated Customs Management System (iCMS) and the users of Mombasa port will no longer be required to lodge manual documents, which has pushed the facility closer to paperless transactions in a move that will reduce time and cost of doing business.
iCMS was first rolled out in March 2019 at Jomo Kenyatta International Airport (JKIA) and has since been fully rolled out at Moi and Eldoret international airports where it is being used to clear both the import and export cargo.
The full roll out of the Cargo Release Module will offer seamless flow of the cargo through the border posts soon once the Kenya Revenue Authority (KRA) finalizes implementation of iCMS in the coming weeks.
TradeNet System, according to Amos Wangora, KenTrade Chief Executive Officer has fully implemented all envisaged modules. The risk assessment module is the latest to be implemented and key government agencies are using it to reduce the time of clearing cargo and the amount of cargo targeted for verification.
Wangora said this when he addressed the second virtual stakeholders’ meeting today to update participants on the milestones KenTrade has made in trade facilitation in the recent past.
Having successfully rolled out air cargo clearance modules through iCMS, KRA fully rolled out clearance of motor vehicles and bulk cargo at the port of Mombasa in November last year after several months of piloting.
The need to enhance efficiency in cargo clearance processes is what prompted KRA to develop an integrated system with friendly interactive capabilities to eliminate redundancy and automate both the manual and semi-annual processes, Commissioner of Customs and Border Control told Freight Logistics magazine in an interview last month.
The system has also addressed the performance challenges and filled the security gaps being experienced by the old system. The system will also serve as a trade facilitation tool by reducing the cost of doing business in the country.
KenTrade system today has registered over 12,500 system users and 35 PGA, with 5 of them completely integrated and others in progress. The government agencies issue release of the cargo through the TradeNet System that sends them to the iCMS automatically eliminating physical stamping of the documents that has been a common practice.
iCMS will enhance faster clearance of the cargo due to the enhanced coordination with the other Government Partner Agencies (GPA) at Kenya’s entry point through automated exchange of information. The system also provides scheduling of the joint verification to ensure efficient planning of the physical exercise thus reducing time wastage.
According to Ahago, Approval of Import Declaration Form (IDF) will take less than 30 seconds compared to an average of 2 days that the process earlier took. Approval of declaration upon payment of taxes will also drop from the current 2 days to less than 30 seconds.
Approval of manifest upon submission will take less than 30 seconds as opposed to the current 2 days while it will take less than 30 seconds to release Authorized Economic Operators (AEO) consignment which currently takes up to 6 hours.
iCMS will also help KRA in reducing the physical cargo inspection by using the system’s modern intelligence-driven technology.
The system has introduced efficiency in tax payment by introducing mobile platforms and other payment modules such as EFT and RCTG. Unlike the old system, iCMS links facility licenses with the respective PIN numbers from iTax thus enabling visibility of the companies operating businesses. This reduces tax evasion by sealing loopholes.
With the new system, auction of overstayed cargo at various entry points will now be conducted through an online platform. The auction has been a tedious manual process that will now be replaced by ubiquitous bidding and payment for auction goods.
Bidders will be able to place their offer through the mobile phones and monitor progress and eventually pay if one emerges successful.
iCMS allows a one-time entry of the data at source in order to reduce delays to shipment caused by inaccurate or inconsistent entries. It is also integrated with a system in the supply chain and has a document management system which supports storage and retrieval of electronic data.
iCMS will also allow companies to make applications to be considered for AEOs status.