Token Ring Fast Ethernet
INTERNET Firewall
3.3 Performance de la nueva red
4.1.4 Descuentos Descripción
1.1 WELCOME
The participants were welcomed to the workshop by Ms. Betty Maina, Chief Executive Kenya Association of Manufacturers, who had co-organized the workshop in consultation with the EABC Secretariat.
The Chief Executive gave a background of the objectives of the workshop, namely;
- validate the study report commissioned by the EABC to identify the impact of the Customs Union and Cross Border Business on the Community.
1.2. REMARKS: EABC VICE CHAIR:- MR. KELI KIILU
Informed the meeting on the activities, roles and objectives of EABC
- Improvement of business environment in the Region by lobbying and advocating for policy’s that result to improvement of business environment and opposing regulations and policy’s that hurt businesses.
- EABC undertakes surveys that informs their identifies the needs of the Business Community, advocacy and lobbying e.i Business Index`Surveys.
- Monitoring implementation of EAC Customs Union and identifying issues that need to make EAC integration efficient and effective.
- That EABC had attained an observer status in the EAC meetings and that proposal to have EABC be the communication channel for the Private Sector at the EAC was almost complete. This would result to all private sector issues being channeled to EAC through EABC.
- EABC had organized an Energy conference in November 2007. A similar conference to be held in November 2008. This is in cognizance of the Challenges facing energy sector in the region.
1.3. Mr. N. wa KARANJA, EAC.
- Addressing of the NTBs was hampered by weakness of the National Monitoring Committee (NMC). Called for the participation and involvement of the Police and Revenue Authorities in the NMC.
- Some Problems facing the business at the Border posts did not require financial input but goodwill.
-. Permanent road blocks needed to be removed
- Rigorous Procedures not facilitating trade i.e Trade of Milk in the region
- Rules of origin forms for the Small business had been simplified (goods less than USD 500)
- No need to negotiate market access than block it through NTB’s and rigorous procedures.
- Commended that existing relations between EABC and EAC
1.4. REMARKS: CHIEF GUEST: MR. DAVID NALO, PERMANENT SECRETARY, MINISTERY OF EAC, KENYA.
- Relayed the apology of the Hon. Minister who could not be available, and that of the Assistant who though having been around to officiate, had to leave to attend an emergency.
- Gave an overview of the World Trade and Africa’s share in the Export Trade. Lamented that Africa share in the export had declined from 30% in 2006 to 20% while there was increases of Exports from Latin America and Asia during the same period.
- Explained Challenges facing Africa’s economic growth: o Unfavourable business environment
o Infrastructure: Poor, costly and unavailable.
o Lack of research and development resulting to export of unprocessed products
- From the study it was possible to deduce that Kenyan export to the region had declined at the inception of the Customs Union. This could be attributed to the implementation of the CET.
- Kenya’s investment in the region was on the increase.
- Commended the study findings and urged for constructive honest engagement between the Private Sector and Governments from informed positions
1.5. PRESENTATION ON IMPACT OF CUSTOMS UNION FINDINGS: MR. BERNARD KAGIRA, CONSULTANT.
- Gave an overview of the Study Methodology. Areas of coverage, and Number of Firms.
o Production Chain, Trade Flow, Impact of Customs Union and NTB o 83 companies had been surveyed. 23 in Kenya
- Governments had stayed on course in the implementation of the Customs Union and reduction of the Tariffs
- Uganda and Tanzania had increased their Trade in the region in 2006
- Kenya needed to ascertain products whose tariffs have come down in Tanzania (Tariff Reduction) and explore market opportunities.
- Production Chain: Not integrated into the EAC market o There exist a problem of excess capacity
o External Factors:- Electricity, Fuel and Transport impact negatively on business in the region.
- Awareness of Customs Union o High Awareness
o Availability and content of Customs very low. Limited knowledge on Rules of Origin and Duty Draw backs.
o Made the business environment predictable.
o Impact positive, ranging from 46% in Tanzania to 77% in Uganda o Turnover low
o Company expansion plans not pegged on the EAC Customs Union
- Regional Capital Markets not developed. Borrowing is from domestic Markets.
RECOMMENDATIONS:
- Create awareness on the Customs Union. Education on customs union instruments necessary.
- Integration of domestic production chain into the EAC market important.
- There is need to identify lead products per country
- Identify products with Intra-EAC trade potential
- Mapping of Trade and Regulatory requirement
- Initiate EABC/EAC periodic roundtable to monitor, explore and exploitation of the EAC market potential.
- Regulatory framework for some products inhibiting trade
- Need to empower EAC Secretariat
1.6 PRESENTATION ON IMPACT OF CROSS BORDER TRADE FINDINGS: BY MR. BERNARD KAGIRA, CONSULTANT.
- Twelve border posts had been covered
- 231 respondents had been interviewed
- Sharing of information amongst customs officials lacking but critical.
- SPS officers limited at border posts. Between 1-0 in other countries except in Kenya. This resulted to no trade for products requiring certifications
- Infrastructure at border posts lacking: Problems with inspection, parking
- There is need develop standards for infrastructure requirement
- Unrecorded trade declining, problems at Malaba, Namanga Kenya and Tanzania
- Customs Documentation still pose problems. Customs clearance takes an average of 115 Minutes to clear, SSP an average of 96 Minutes.
- Clearing Agents used by large firms.
- NTBs. Extortion at all border posts exist.
RECOMMENDATIONS:
- Sharing of information amongst border posts important
- Need to establish regional Standards Body
- On Non-Tariff Barriers, need to develop human capacity and provision of equipment.
1.7 DISCUSSANTS: CUSTOMS UNION BY REM OGANA, TRADE CONSULTANT
- Cited limiting, Constraining Terms of Reference deterring the able Consultant
- Study confined to few members who are members of EABC and in Export Business
- Need to survey large constituency including even those companies not in export business to determine why they are not exploiting the EAC market.
- Survey concentrated on Food and Beverage
- Capacity Utilization:
Capacity utilization of Kenya’s companies surveyed, cited at 81%- 100% deemed too high in comparison to previous study conducted earlier by Kenya Association of Manufacturers, hence the need to verify.
- Study questionnaire limiting and could
o not determine whether the Customs Union had resulted to trade going up or not or during and as result of the Customs Union. o not determine how many firms had been started because of the
Customs Union
o how many firms/Businesses had been closed down because of Customs Union.
o it was difficult to determine that Investment had gone up
- The consultant need to determine and list what are the “other” components of NTB’s constituting 40%
- Awareness should be undertaken by Government, EAC and not restricted to EABC.
RECOMMENDATIONS
- Need to determine other components that affect Customs Union Implementation
1.8 DISCUSSANT: IMPACT OF CROSS BORDER ON BUSINESS: MR. GILBERT LANGAT, CHIEF EXECUTIVE SHIPPERS COUNCIL:
- Study TOR restricted to Transport and Logistics
- Appropriate respondents surveyed.
- Delays at border posts;
o Need to examine the causes of delay i.e why it takes 2 days to clear
- Cross Border Traders undertake own clearing, since using clearing agents increase costs.
- Customs Procedures:
o Need to examine the impact and status of Automation at the Border Posts
o Need to determine the business activities at “Non Mans’ Land” between the country boundaries.
o Cited lack of furniture, crowding at Border Posts
- Border Posts Infrastructure, called for Government Financing noting that donor funding did not address Border and Around the Border posts Infrastructure.
RECOMMENDATION
- Institute: One stop border post “One window” at the Border Posts
- Harmonize licensing requirements
- Reduce Trade Facilitation Costs – costing the business 40-50%
- Identify Areas of Delay at the Border Posts
1.9 PRESENTATION: KENYA PORTS AUTHORITY: MR. ALEX`KABUNGA
- Informed meeting of the World Bank Funded Project: “Port Community Based System” (PCBS) aimed at reducing and enhancing efficiency amongst trade facilitating agencies by introducing a National Single Window Electronic Platform. The system ones implemented would reduce clearance of cargo at Ports and Airports (entry Point) i.e at Mombasa Port from 11 days four hours to 3 days.
- Current Risk Management Subjective: To be improved upon the implementation of the PCBS
- Challenges:
o Legal Framework o Telecommunications
- Cited contradiction between the EAC Customs Management Act and which stipulates lodgment of documents within 24 hours after
docking of ships and not 24 hours before as is stipulated in Customs Act of Kenya and Tanzania. This had caused enormous challenges and delay at the port. USD 50 Million being wasted annually due to the delay.
RECOMMENDATIONS:
- Need to review the EAC Customs Management Act.
- Need to harmonize working hours at the Border Posts. Rwanda/Uganda border where due to time differential (Rwanda 1 hour behind) resulted to different closing and opening times.