February 18, 2019

Why EAC States need a single E-cargo system by 2018 to boost regional growth

There are plans for the East Africa Community  states to have in place  an electronic cargo tracking platform in order eliminate tax evasion according to a report from the EAC officials.

The project which is been undertaken by Kenya,Rwanda and Uganda is been spearheaded by Kenya Revenue Authority (KRA) .

Commissioner General John Njiraini added that the  platform will enable the three countries to simultaneously track each transit cargo consignment on real-time basis.

“This initiative once implemented should have a substantial impact in reducing loopholes exploited by unscrupulous traders intent on evading the payment of their fair share of taxes,” Njiraini said.

He was speaking during the  celebrations to mark the International Customs Day.

The theme of this year’s Day was reflecting on the World Customs Organization’s (WCO) focus on technology as the driving tool for enabling the global customs community to further enhance efficiency.

Njiraini noted   that the cargo tracking system will rely heavily on the use of technology in a bid to curtail the diversion of goods meant for transit to Kenya’s landlocked neighbors.

The  cargo tracking platform will enable seamless visibility of transit cargo along the Northern Corridor countries of Kenya, Uganda and Rwanda.

The five member states of the East African Community are also at an advanced stage of developing a single common Customs Management System (iCMS).

The KRA chief said that the system will provide a single platform for transacting international trade activities within the regional bloc, and Kenya is fast tracking the implementation of the new iCMS.

“It will have more superior features than the previous one and so it will aid in improving in risk management, security targeting and valuation of cargo,” he said, adding that the system will be fully operational in the next 18 months.

 

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