Kenya Revenue Authority (KRA) has taken a final lap in fully rolling out the Integrated Customs Management System (iCMS) in a move that will revolutionalise cargo clearance when all the processes will be transacted through the online platform.
The system will replace the over a decade old Simba system, which has some serious shortcomings due to a rapidly changing technology.
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 final phase will involve containerised cargo, which is also being piloted at the port, the acting Custom and Border Control Commissioner, Ms. Pamela Ahago said in an email interview.
iCMS was first rolled out in March 2019 at Jomo Kenyatta International Airport (JKIA) and has since been fully rolled at Moi and Eldoret international airports where it is being used to clear both the import and export cargo.
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.
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.
iCMS has already been integrated with Kentrade’s Kenya TradeNet System, a National Open Single Window system that offers a platform for clearance of the cargo through various entry points.
“We have done this at several layers, and we are using the single window system as the only source of truth for all government permits,” Ms. Ahago said
KenTrade system, which is also being upgraded to rhyme with current IT trends, has been operating since October 31, 2013 when it officially went live. It 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 Ms. 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 trade community will not incur costs associated with paper documentations. Also, cargo dwell time will result in cost saving,” Ms. Ahago said.
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 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.
To address the system’s teething problem, KRA has set up centres at the port of Mombasa and Inland Container Depot in Embakasi. A similar shed was set up at JKIA to support air cargo clearance.
According to Ms. Ahago, elimination of physical files, the ultimate goal of the system, has started at JKIA with an intention of rolling out all customs cargo clearance sections.
The iCMS solution provides functionality that enables users to upload all the required documents to support cargo clearance at JKIA.
The system has already been integrated with the ground handlers systems to facilitate electronic transmission of cargo release instructions upon successful verification and confirmation of payment of tax.
Previously, ground handlers required signed customs release documents to facilitate removal of the cargo from their sheds.
In order to ensure that all the internal and external stakeholders are adequately trained, KRA has created an electronic training guideline and set-up an e-learning platform through the Kenya School of Revenue Administration. The electronic content is available to KRA staff and all the other stakeholders involved in the cargo clearing process.
KRA is also preparing to roll out iCMS on goods under Single Customs territory regime as well as petroleum.
