Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Border Post Assessment for OSBP Establishment- A case Of Numule-S.Sudan and Elegu-Uganda-2012

1,093 views

Published on

  • Be the first to comment

  • Be the first to like this

Border Post Assessment for OSBP Establishment- A case Of Numule-S.Sudan and Elegu-Uganda-2012

  1. 1. DRAFT REPORT ON BORDER PROCEDURES (The report has 78 pages) BY NUWAGABA MBIINE CHARLES – Customs Specialist DECEMBER 2011 (Up dated Feb 2012) NIMULE/ELEGU BASE LINE ASSESSMENT REPORT ON PROCEDURES FOR PROPOSED ONE STOP BORDER POSTS (OSBP). CONTRACT REFERENCE: - PO/00250 NIMULE/ELEGU CROSSING BRIDGE
  2. 2. Page 2 Base Line Survey on Nimule/Elegu Border e Posts DISCLAIMER & CONFIDENTIALITY This draft report is strictly confidential and addressed solely to TradeMark East Africa (TMEA). The Customs Expert (Author) cannot be held responsible for its unauthorised copying and distribution. The conclusions, findings, and opinions expressed in this report are those of the author unless identified as those of other parties quoted. The report is produced specifically for the purposes stated and its interpretation, use or application for other purposes imposes no obligations on the author. A report of this kind is dependent on the completeness, accuracy, and reliability of data received from a variety of sources within TMEA, primary and secondary sources from the field and beyond. The author makes no warranty or claim as to the accuracy of the information on which this report is based and cannot be held responsible for any inaccuracies so arising. Where possible, author has taken steps to ensure that the use of information is consistent and complete within the terms of reference of this assignment. This confidentiality clause applies to all pages and information included in this report.
  3. 3. Page 3 Base Line Survey on Nimule/Elegu Border e Posts ACKNOWLEDGMENTS This is the first report presenting a new dataset and information for the existing conditions and recommended changes at Nimule and Elegu border posts discussed below. The survey was conducted to provide data and information to guide the investment decision to on whether they consider options for One Stop Border Post concept and facility development based on border procedures. The baseline survey would not have been possible without the support and participation of the Revenue Authorities, Immigration, Police and Other Government border Agencies of South Sudan and Uganda which assisted in providing data and information to develop the report. The author expresses his gratitude to the employees of border government agencies and clearing, freight and forwarding firms who took the time to respond to the designed oral based-questionnaire. Their participation was central to the quality and credibility of the report, and their continuing involvement and feedback will be essential as the final draft survey report is developed and refined after conducting stakeholders’ workshops.
  4. 4. Page 4 Base Line Survey on Nimule/Elegu Border e Posts Table of contents List of Tables ............................................................................................................................................................................................6 List of Figures...........................................................................................................................................................................................6 List of Appendices....................................................................................................................................................................................6 ABBREVIATIONS AND ACRONYMS................................................................................................................................................7 EXECUTIVE SUMMARY .....................................................................................................................................................................8 1. INTRODUCTION................................................................................................................................................................................9 1.1 Background and Context .................................................................................................................................................................9 1.2 Objectives and Purpose of the Study ...............................................................................................................................................9 1.3 Terms of Reference .........................................................................................................................................................................9 2. LITERATURE REVIEW ON THE BORDER POSTS MANAGEMENT...................................................................................11 2.1 Introduction ...................................................................................................................................................................................11 3. METHODOLOGY OF THE STUDY ..............................................................................................................................................16 3.1 Approach .......................................................................................................................................................................................16 3.2 Methodology..................................................................................................................................................................................16 4. RESULTS OF FINDINGS ON OPERATIONAL ACTIVITIES ..................................................................................................18 4.1 Bibia/Elegu Border Post - Uganda ................................................................................................................................................18 4.2 Nimule Border Post – South Sudan...............................................................................................................................................20 4.3 Numerous Documents to Fill.........................................................................................................................................................23 4.4 Border Agencies ............................................................................................................................................................................25 4.5 Legislative Framework Supporting Procedures.............................................................................................................................25 4.6 The Private Sector Involvement and Participation ........................................................................................................................26 4.7 Clearance and Processing Times ...................................................................................................................................................27 5. FUTURE DEMAND FOR BORDER AGENCIES.........................................................................................................................30 5.1 Introduction ...................................................................................................................................................................................30 5.2 Coordinated Border Management..................................................................................................................................................30 5.3 Incremental and Phased 24 /7 Operations......................................................................................................................................31 5.4 Opening and Closing Hours/ days .................................................................................................................................................32 5.5 Governance Issues and Indirect Costs ...........................................................................................................................................32
  5. 5. Page 5 Base Line Survey on Nimule/Elegu Border e Posts 6. MAINTENANCE OF SECURITY AT THE BORDERS...............................................................................................................33 6.1 Security Issues and possible remedies...........................................................................................................................................33 6.2 Other Security Considerations.......................................................................................................................................................36 7. POTENTIAL FOR ELECTRONIC SECURITY ...........................................................................................................................38 7.1 Introduction ...................................................................................................................................................................................38 7.2 Context of Electronic Security.......................................................................................................................................................38 7.3 Electronic Border Solutions to enhance security...........................................................................................................................39 8. INFORMATION TECHNOLOGY APPLICATIONS...................................................................................................................41 8.1 IT Connectivity and Implementation.............................................................................................................................................41 8.2 Evolving technology landscape for border connectivity................................................................................................................41 8.3 Critical success factors for IT programs ........................................................................................................................................43 8.4 Future Assessment of IT systems and needs .................................................................................................................................45 9. OPTIONS FOR JOINT FACILITIES SHARING BY ALL BORDER AGENCIES ..................................................................49 9.1 Introduction ...................................................................................................................................................................................49 9.2. Single – Stop Joint Facility Models..............................................................................................................................................49 9.3. Physical Facility Layout ...............................................................................................................................................................50 9.4. Examination Sheds/Areas for Shared Activities...........................................................................................................................52 9.5. Equipment, Tools & Utilities........................................................................................................................................................53 10. SUMMARY FOR IMPLEMENTING OSBP PROCEDURES....................................................................................................55 10.1 Recommendations .......................................................................................................................................................................55 10.2 Conclusion...................................................................................................................................................................................62 11. SUMMARY ......................................................................................................................................................................................63 12. GLOSSARY .....................................................................................................................................................................................70 13. REFERENCES................................................................................................................................................................................73
  6. 6. Page 6 Base Line Survey on Nimule/Elegu Border e Posts List of Tables Table 1: Border posts in their respective countries ....................................................................................................................................9 Table 2: Poorly Performing Landlocked Countries on the LPI by Region ..............................................................................................13 Table 3: Corruption Perception Index 2011.............................................................................................................................................14 Table 4: List of Import and Export Documents .......................................................................................................................................23 Table 5: Border Common and Unique Agencies .....................................................................................................................................25 Table 6: National Average Cost Incurred by Delays ...............................................................................................................................27 Table 7: Travellers Movement across Bibia/Elegu Border Post ..............................................................................................................33 Table 8: Observatory IT Needs Planned ..................................................................................................................................................46 Table 9: IT Required Equipment .............................................................................................................................................................47 List of Figures Figure 1: A basic framework of the TORs...............................................................................................................................................10 Figure 2: Average Daily Clearance Transactions and Processing Times.................................................................................................27 Figure 3: Average Daily Traveller Clearance & Processing Times .........................................................................................................28 Figure 4: Trend in Trade between Sudan and Uganda.............................................................................................................................32 Figure 5: Overt Video Surveillance .........................................................................................................................................................39 Figure 6: Communications Network System ...........................................................................................................................................39 Figure 7: Prototype of the Uganda/S. Sudan Single Window Interface...................................................................................................45 Figure 8: single-stop joint facility models ...............................................................................................................................................49 Figure 9: Single facility ...........................................................................................................................................................................50 Figure 10: Juxtaposed facility..................................................................................................................................................................50 Figure 11: Integrated Joint Facility..........................................................................................................................................................51 Figure 12: Interfaced Joint Facilities.......................................................................................................................................................51 Figure 13: Virtual Facility .......................................................................................................................................................................52 Figure 14: Examination Areas/Shed for Shared Activities by Agencies .................................................................................................53 Figure 15: Cargo and Human Scanning Equipment.................................................................................................................................54 Figure 16: E-Gates (i) and Booths (ii) .....................................................................................................................................................54 Figure 17: Institutional Arrangements for OSBP....................................................................................................................................57 Figure 18: Import/Export clearance at the 3 borders................................................................................................................................63 Figure 19: Outward transit/temporary imports clearance at the 3 borders...............................................................................................64 Figure 20: Passenger clearance at the 3 borders ......................................................................................................................................67 Figure 21: OSBP Management process flowchart ...................................................................................................................................69 List of Appendices Appendix 1: Baseline Analyzed Facts and Figures Affecting OSBP Procedures & Design....................................................................75 Appendix 2: OSBP Necessary Equipment Assessed ..............................................................................................................................76 Appendix 3: OSBP Space and Personnel Minimum Requirements.........................................................................................................77 Appendix 4: Roles of Border Agencies ...................................................................................................................................................78 Appendix 5: procedure illustrations of the existing conditions and the proposed under osbp arrangement ............................................79
  7. 7. Page 7 Base Line Survey on Nimule/Elegu Border e Posts ABBREVIATIONS AND ACRONYMS AEO Authorized Economic Operators ASYCUDA Automated System for Customs Data BCPs Border Crossing Points CBM Coordinated Border Management CIF Cost Insurance and Freight COMESA Common Market for East and Southern Africa DRC Democratic Republic of Congo EAC East African Community EACCMA East African Community Customs Management Act ECA Economic Commission for Africa EPZ Economic Processing Zones ESA East and Southern Africa FTAs Free Trade Arrangements IBM Integrated Border Management IT Information Technologies LPI Logistics Performance Index OGA’s Other Government Agencies OSBP One Stop Border Post RKC Revised Kyoto Convention RM Risk Management SAD Single Administrative Document TMEA Trade Mark East Africa TEVIES Temporary Vehicles Import and Export System UG Uganda UNCTAD United Nations Commission for Trade and Development WB World Bank WCO World Customs Organization WTO World Trade Organization
  8. 8. Page 8 Base Line Survey on Nimule/Elegu Border e Posts EXECUTIVE SUMMARY This is a survey border procedures draft report and is divided into six sections which discuss operational activities, future demands, security at the borders, electronic security, IT, options for joint facility sharing and recommendations. The main objective of the report was to present existing conditions and proposed changes on procedures in the border posts of Nimule – Elegu, Uganda/South Sudan to eligible TMEA development categories, and whether they qualify to invest into One Stop Border Post (OSBP) facility. To do so, the study made an investigation based on and following the order of terms of reference above. The study identified existing process procedure and activities, and documented the status of their implementation and pointing out generic challenges; 1. Excessive government documentation requirements 2. Lack of automation and insignificant use of information-technology 3. Lack of transparency; unclear and unspecifi ed import and export requirements 4. Inadequate customs procedures; particularly audit-based controls and risk-assessment techniques 5. Lack of co-operation and modernisation amongst customs and other government agencies, which impedes efforts to deal effectively with increased trade flows. The summary of the proposed procedures both in flow charts and narrative have been appended herewith in section twelve. The discussions on operational activities concluded that the procedure landscape at Nimule/Elegu is getting fully grown into a clearance center for revenue collection, transit, temporary admissions, export and passengers. In final analysis there was urgent need to do the following: 1. Future demands – A proposed strategy to completely review the existing procedures going through a business process re- engineering should start immediately, space allocations and equipment’s needs assessment were identified through personnel estimated audits, equipment’s and systems identification in numbers and quantities, and reviewed conditions in relationship to clearance procedures that include proposed procedure flow charts, business process cycle, procedure continuum and institutional arrangement 2. Issues for maintenance of security were identified and profiled to include but not limited to the following; unconnected border posts by ICT, equipment’s and utilities, lack of reliable documentation to detect fraud or/and identify wrongdoers, poor threat identification and screening at the borders. Inadequate staffing levels to deal with rapid increase in traffic, cargo & passengers, understaffing, undertrained and unprofessional agency staff , the need for proper training for all border officers on duty in complex set of skills, need for a culture shift on border activities to risk management practices, unarmed border officials to deal with smugglers, lack of a credible system and culture of secrecy exhibited by agency officials: 3. Potential for electronic security following must follow the needs and threat assessment, a criterion is designed to determine what appropriate systems are relevant to this border post. Such high-tech systems and equipment were identified such as Access Authorization and Detection Systems, Overt Surveillance Systems, Covert Surveillance Systems and Communications Network. 4. IT requirements were determined from a systemic and inquiry point of view rather than a comprehensive audit approach. The basic business applications and infrastructures equipment’s were highlighted; a prototype of a Single Window Application was illustrated to aid introduction of localized system between two countries. The critical success factors for implementation and support of the basic IT system and equipment enumerated and tabulated. 5. Options for joint sharing facility were illustrated and offered in three broad options; Joint facility models that concluded with the Juxtaposed OSBP model as most preferred. Physical facility layout- inter-grated, interfaced, virtual & single. Examination Sheds/areas and Equipment's, Tools & Utilities In conclusion, the border post under the procedures perspective is recommended for One Stop Border Post (OSBP) to aid the introduction of the latest industry –age and best practices in border post management. If the decision to invest in the OSBP project passes, we wish to advise that support on soft components as in information technology (Systems & Equipment) and capacity development get commenced as construction progresses.
  9. 9. Page 9 Base Line Survey on Nimule/Elegu Border e Posts 1. INTRODUCTION Trade Mark East Africa (TMEA) commissioned a study and contracted a team of consultants to conduct baseline survey and prepare a report with recommendations for strategic planning and implementation of the One Stop Border Post (OSBP) project at Nimule and Bibia/Elegu Border Post in South Sudan and Uganda respectively. 1.1 Background and Context The geographical border is the location where one country’s authority over goods and persons ends and another country’s authority begin. Traditionally, the border is the location where enforcement of and compliance with national legislation in such areas as security, environment, immigration, consumer protection, commercial policy, Customs duties, excise and taxes takes place. Control and enforcement involve various operations from document and goods control, to the calculation of Customs duties and taxes, the collection of revenue, and immigration and vehicle control. These operations are performed by various governmental agencies, often physically represented at the border. The baseline assessment on procedures at such a location –Nimule & Elegu border post, is the subject of this study and its report thereto. 1.2 Objectives and Purpose of the Study One of the objectives of TMEA specific to the study is “lowering barriers to trade by increasing the efficiency of transport corridors and reducing administrative barriers by cutting red tape”. TMEA intends to achieve this objective by investing in initiatives that reduces transaction costs while increasing efficiency at border crossings in the EAC region through the development of OSBPs. In order to identify clearance obstacles at the borders, the purpose is to provide appropriate solutions and be able to measure the impact of cross-border facilitation measures; the study report has profiled and assessed the existing operational activities of two border posts that are important in the trade patterns and the associated challenges. 1.3 Terms of Reference The survey was undertaken jointly with an Engineer (Team Leader) and an Architectural firm following the terms of reference stated below as provided in the contract:  Discuss existing operational activities and establish future demand for the Government departments and other border agencies and to include relevant line ministries and well as revenue authorities  Identify the issues that would need to be addressed to maintain security at the borders  The potential for electronic security to be used to bring added value to operational requirements at the border crossing  All IT requirements to provide modern procedures to facilitate cargo and passenger flow to streamline all border agency activities  Options for joint facilities sharing for all border agencies 1.3.1 General Objective The assignment concern was the assessment of border agency’s procedures on the following border post Nimule and Bibia/Elegu in Southern Sudan and Uganda. 1.3.2 Scope of the Assignment The customs expert conducted the following: (a) Visited respective countries under assessment for briefings and consultations The assignment started with initial contact visits to each country whose border post is under assessment to hold briefings, consult and secure authorization with head-office officials of key Government Ministries, departments, Revenue Authorities and border management agencies. In this regard, visits were carried out in the areas detailed below:- Table 1: Border posts in their respective countries Country Capital Border Post Uganda Kampala Bibia/Elegu South Sudan Juba Nimule
  10. 10. Page 10 Base Line Survey on Nimule/Elegu Border e Posts (b)Visit to the border posts The consultant travelled and visited border post crossings. The visit involved the appraisal and capture of targeted data from scheduled and sampled entities e.g. border agencies’s business processes & procedures and IT. (c) Reporting Following the return of the consultant has developed a draft report on each of the stations assigned based on the TORs (see figure 1) and submitted through the baseline assignment team leader to the client TMEA. Figure 1: A basic framework of the TORs Source: Original Data Collection as in Nuwagaba 2011 Border Post Assessment for the assigned 4. Data analysis and Interpretation 6. Compile presentations and papers for stakeholder feedback 1. Review documents, visit HQs to deepen understanding the context and solicit Management support for the implementation of the study. 5. Compile and report on key findings and recommendations border site visited (both border sides) 2. Key lessons from the contextual analysis 3. Primary data collection on key agency themes/ dimensions of the study.
  11. 11. Page 11 Base Line Survey on Nimule/Elegu Border e Posts 2. LITERATURE REVIEW ON THE BORDER POSTS MANAGEMENT 2.1 Introduction After independence on 9th July 2011, there is an improved security condition and resumption of cross-border trade involving mass movement of travellers and cargo from South Sudan to Uganda and beyond, the focus is shifting increasingly to the removal of non- tariff barriers and the facilitation of legitimate trade. TMEA is considering investing into efficient border posts management initiatives with the aim of reducing the costs of moving goods across borders. One stop border post (OSBP) is being considered as a mechanism to improve the movement of goods across shared borders. These arrangements have both economic and enforcement benefits. However, they need to be rooted in a sound policy and underpinned by an enabling legal framework and implementation strategy that have the support of all stakeholders. Trade between nations is a vital driver of economic well-being and wealth creation. Customs administrations are a major component in the efficiency of international trade because they process every single consignment to ensure compliance with national regulatory requirements and international multilateral trading rules. While Customs administrations have to discharge this mission of revenue collection, protection of society and safeguarding security of the trade supply chain, they also have to strive for increased trade facilitation to promote investment and reduce poverty (WCO Council 2003). In broad terms, good border posts’ management seeks to balance the competing, but not necessarily conflicting, goals of:  Facilitating (and even expediting) access for people and goods that we both need and desire across the two borders  Interdicting and stopping “bad” people and “bad” things from entering the country from a security perspective. There is growing recognition of the connection between border control and development and nation-building. Border control is not simply a problem of keeping "bad" things out. For many developing nations, duties and fees collected at their ports, airports, and along their land borders are a key source of government revenues which finance essential services and build infrastructure. Also, poor border control practices very often fuel corruption and contribute to the formation of black markets. These realities have decidedly adverse consequences for initiatives designed to improve governance and economic sustainability (Flynn S 1999). The key to success in the cross border clearances and procedures is the ability to accurately and efficiently identify high-risk passengers and cargo, target them for inspection, and prevent the entry of dangerous goods and people without impeding the flow of legitimate cross-border traffic (Arvis et al 2010, Doyle 2011, Kieck 2010). Effective border management means ensuring that:  Everyone and everything that crosses the border is compliant with the laws, regulations, and procedures of the country.  Border users are encouraged to comply. Compliant users are offered facilitated service.  Offenders are identified and stopped. Therefore, the efficient management of border posts is an integrated inter-agency cooperation through a process of harmonizing, streamlining, and simplifying border management systems and procedures has led to such initiatives highlighted below. 2.1.1 Coordinated Border Management This a border management tool that includes information sharing, co-located facilities, close interagency cooperation, delegation of administrative authority, and cross designation of officials (WCO 2009). 2.1.2 One Stop Border Post (OSBP) Facility  Overview One stop and joint control arrangements have been applied in Western Europe since the early 1960s and the concept has spread throughout the world. More recently, 2009, the Common Market of the Southern Cone (Mercosur) countries concluded the Recife Agreement on integrated controls for application at their shared borders. As part of this Agreement, consensus was reached on 16 border points where integrated controls should be applied. In the Southern African Customs Union (SACU), the establishment of one stop border posts was identified as one of the priority issues of trade facilitation. In the East African Community (EAC), progress has been made in establishing 15 one stop border posts but key ones between Kenya and Uganda at Malaba; Kenya and Tanzania at Namanga; Rwanda and Burundi at Nemba. In Southern Africa, a one stop arrangement was opened officially in December, 2009 by the two Heads of State at the Chirundu border post between Zambia and Zimbabwe, and about 8 more are lined for development such as Zambia and DRC at Kasumbalesa; Tanzania and Zambia at Tunduma; Mozambique and South Africa; all have signed a one stop border post agreement and are working
  12. 12. Page 12 Base Line Survey on Nimule/Elegu Border e Posts towards implementation. The Andean Community aims to have single controls in place at all common border posts in terms of the Community Policy for Border Integration and Development and has implemented a pilot project for the single control of goods at the Pedro de Alvarado and La Hachadura border posts between Guatemala and El Salvador. The Greater Mekong Sub-region (GMS) in Asia amongst countries that comprises Cambodia, Lao People’s Democratic Republic, Myanmar (Barma), Thailand, and Viet Nam, as well as Yunnan Province and Guangxi Zhuang Autonomous Region of the People’s Republic of China (PRC). The GMS has had an elaborate one stop border post under a cooperation program along the Mekong River since 1992 (WCO journal 2010).  Rationale The rationale for the establishment of one stop border posts is clear in terms of both enforcement and economic benefits. At the core of the one stop concept is the ability of border authorities from two countries to perform joint controls. This results in improved enforcement efficiencies through cooperation, the sharing of intelligence and better resource utilisation. In working side-by-side, cooperation is enhanced and communication is easier amongst border agencies. The concept also provides for the sharing of ideas, information and experiences. By way of example, the one stop concept can be used to combat fraud by enabling the clearance of goods on the basis of a single customs declaration thereby preventing the substitution of one set of documents with another. The concept also enables the sharing of infrastructure and law enforcement assets, for example, by jointly using one scanner to examine containers. Cooperation with counterpart administrations, when implemented properly, does not weaken control rather it reinforces control. Over time, joint controls enable border agency administrations to better utilise personnel and resources. As trust is built between country border agency administrations on both sides, it may be possible to reduce personnel and rely to a greater extent on the counterpart key but single agency administrations. With respect to economic benefits, the one stop concept significantly reduces waiting times and costs by moving away from the current two stops that are required to cross the border and comply with the regulatory requirements of the two neighbouring countries. It reduces waiting times for commercial vehicles, thereby saving costs. Long delays in processing commercial vehicles at border posts significantly increase the cost of consumer goods. High transport costs needlessly increase the price of imported goods and put exports at a competitive disadvantage in world markets (Erick Kieck 2010). In addition to developing a common bilateral and national vision and strategy, there is a need to closely involve non-government stakeholders from the start. These include traders and their intermediaries such as clearing agents, regular border post users (travellers and transportation service providers), and communities in the proximity of the border post. This is not only essential to secure buy in but also enables stakeholders to contribute to and influence design as well as to prepare for the OSBP project implementation. The OSBP facility allows parties involved in trade and transportation to process all necessary official procedures concurrently at the same place (one roof) for travellers, their cargoes and means of transport to pass through the designated land border (Osama 2008). Neighboring countries coordinate import, export, and transit processes, so that traders need not duplicate regulatory formalities on both sides of a border. OSBP concept may be implemented in various models discussed in section nine below; Juxtaposed, Straddled and Single facility-One Country. Implementation of OSBP is always considered technically at two levels; concept/model and infrastructural levels. The concept level takes care of having in-place the legal framework first and procedures reviews second or perhaps concurrently. The legal process itself may take up to 12 months or more to put in place. The first level phased implementation of OSBP procedure in sequence with minimum facilities available or’ as is’ structures pending the re-designed and new structures. During this period, the personnel are exchanged to operate within the existing facilities to commence with joint inspections. In the EAC for example, Malaba, Busia, Namanga and Katuna are but a few border posts implementing phased components of OSBP. Using the bi-lateral legal framework and re-engineered procedures, they commenced joint inspections, then to 24/7 operations for transit operations in stages waiting the re-modeling of the physical facilities. To date no physical facilities have been delivered since ten years ago (2002) when then OSBP idea was conceived and formally agreed between Uganda and Kenya Governments under the East African Trade and Transport Facilitation project (Nuwagaba 2010). The second level is heavily dependent on the first level to tackle both the Information Technology and physical infrastructure phase. The law provides the legal mandate to operate on either side and jointly, while the procedures caters for personnel estimates, process simplification, harmonization and interfaces. IT crowns it all by providing connectivity and interconnections not only amongst border agencies but also their capital headquarters. Numba border between Rwanda and Burundi was constructed in concurrence with procedure reviews. Rwanda which had her procedures re-engineered took the lead in the larger part of the implementation stages.
  13. 13. Page 13 Base Line Survey on Nimule/Elegu Border e Posts 2.1.3 Single Window This is an integrated system or facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit related and regulatory requirements (UNCTAD 2011). Traders can submit all import, export, and transit information required by regulatory agencies at one time—through a single electronic gateway—rather than submit essentially the same information repeatedly to various government entities. There is an on-going regional project of Single Window at EAC Secretariat attempting to coalesce all IT system players into an integrated trade facilitation regime. 2.1.4 Border Crossing Procedures Border crossings in Africa are usually manned by Customs for cargo and Immigration for passengers. Any inefficiency arising out of the control procedures of these two agencies often result in long delays and high monetary costs. These grossly reduce the export competitiveness of African producers. Evidence shows that delays at African customs in landlocked are the longest in the world (Arvis et al. 2010). Table 2: Poorly Performing Landlocked Countries on the LPI by Region Background data Sub-Saharan Africa Central Asia South Asia Landlocked Landlocked Landlocked Overall LPI 2.22 2.25 1.84 Selected LPI components* Logistics competence Infrastructure quality Customs and trade processes 2.21 2.18 1.84 1.97 1.98 2.41 2.10 2.04 2.34 LPI input data Customs clearance (days) Physical inspection (%) (higher is worse) Possibility of review (%) (higher is better) 3.2 N/A 2.6 62 N/A 56 52 N/A 33 Lead time to (days) Export (median) shipper to port Import (median) port to consignee Import (best 10 %) Port to consignee 11.8 N/A 14.7 18.4 N/A 14.7 9.1 N/A 11.0 Source: Logistics Performance Index by Arvis et al. 2010, Note: N/A = not applicable, * LPI ratings are on a 5-point scale, with 1 being “worst” and 5 “best.” Economic Commission for Africa - ECA (2010) finds a significant negative correlation between delays at the customs and trade volumes, a result that reflects both the cost and uncertainty associated with inefficient customs. Corruption is perceived as a major problem to doing business in most certain Eastern and Southern Africa (ESA) countries. The main obstacles to efficient customs operations and other border agencies in Africa include excessive documentary requirements, insufficient use of automated systems, lack of transparency, predictability and consistency in agencies’ procedures, and lack of cooperation amongst border agencies. 2.1.5 Excessive documentary requirements Connecting to compete (Arvis et al 2010); estimates that on average Uganda and Sudan customs transactions involve 6-11 different parties, 3-9 documents, 60 data elements, 30 of which are repeated at least 30 times, and the re-keying of 60-70 percent of all data at least once. Documentation requirements are often ill-defined. Some are clearly redundant and traders are inadequately informed about compliance. All these increase the potential for errors and further delays. This problem is amplified at borders. The fact that border posts are physically separated and are kilometers apart from customs offices results in two complete sets of controls for each border post, each with its own complex checklist of documents. The OECD has estimated that time delays, paperwork and compliance related to border crossing costs between 5 - 13% of the value of the goods involved. A recent study estimated that reducing the cost of international trade transactions by just 5% by 2006 could add $US 154 billion (WCO-2007).
  14. 14. Page 14 Base Line Survey on Nimule/Elegu Border e Posts 2.1.6 Insufficient Use of Automated Systems Connecting Landlocked Developing countries to markets (Arvis et al. 2010), highlight the less optimal use of IT within Regional Economic Communities (RECs) themselves even when they share the same system application such as Automated System of Customs Data (ASYCUDA). Until recently 2008-2010, customs administrations in EAC were inadequately computerized and networked, imposing substantial paperwork and duplication. The verification of these at crossing border posts entailed delays, costs, and inefficiencies. However, the adoption and upgrading of the ASYCUDA system by a number of EAC Member States has accelerated the clearance of goods. There is a persistent challenge that the border posts are not usually ALL networked, the same information is entered onto the ASYCUDA system on entry to, and exit from, a customs territory. It is even worse for the countries bordering the EAC such as South Sudan, whose border posts are not automated and connected at all. Time would be saved if data could be entered once and then shared electronically between national and regional border posts. It appears that implementing countries are reluctant to share information. The reasons for the reluctance are not always clear. EAC has made some strides in implementing revenue authorities’ digital data exchange (RADDEX) since 2007. RADDEx is an electronic interface platform that enables member states to share electronic information in advance before physical cargo arrives at points of destinations. The pre-arrival information is easily accessed to all agents who are connected and interfaced with Customs IT applications. 2.1.7 Lack of Transparency, Predictability and Consistency in Customs Activities Lack of transparency and predictability introduces a significant degree of uncertainty in inter-regional trade transactions in EAC and its neighboring countries. In most countries, corrupt border agency officials unnecessarily delay consignments with the hope of extorting bribes. Such practices result in additional costs due to delays and illicit payments (Omondi 2007). 2.1.8 Corruption Tendencies Distorting Procedures The absence of border management reforms breeds distortions and inequities on existing procedures. Given that these borders are situated in remote locations away from the headquarters’ direct supervision, creates a possibilities and chances for corruption to thrive (Gerard et al 2011, Omondi 2007). The corruption perception index 2011 below offers national indications that have direct bearing and relationship with the governance issues of the border post officials. Table 3: Corruption Perception Index 2011 No Rank Member Country Score 1 49 Rwanda 5.0 2 143 Uganda 2.4 3 168 Democratic Republic of Congo (DRC) 2.0 172 Burundi 1.9 5 177* South Sudan 1.6 *No data was available for the year 2011 as the statehood was achieved on 09.07.2011, however using CPI 2010 for Sudan; the score remains the same at 1.6. Other Countries in EAC 1 100 Tanzania 3.0 2 154 Kenya 2.2 Source: Transparent International 2011 2.1.9 Multiplicity of Border Agencies There are between six to twelve border agencies at Nimule with an average of 3-6 employed staff. These agencies compound the procedural challenge by requiring to handle physically all the documentation of any single and related transaction. There are no ICT facilities to automate the activities and processes. The key agencies have legitimate mandate and roles to cause the intervention (see appendix 4). 2.1.10 Developments within the EAC Region The EAC has committed to initiating one-stop border posts within the Community with the aim of halving the time spent at borders. At present, Revenue Authorities – Customs administrations are at the fore front of implementing various components premised on the OSBP concepts. The challenge in the EAC however, remains the one of a single agency as customs. There are a host of over twenty projects at different stages spear-headed by customs administrations, with the assistance of various development partners, aimed at
  15. 15. Page 15 Base Line Survey on Nimule/Elegu Border e Posts introducing OSBP model components in the region. This has remained at joint verifications, sharing of parking yard facilities, improved time clearances and zones & process documents (EAC Secretariat 2011). Other measures have included putting in place the policy and legal frameworks to support trade facilitation through adopting the OSBP concept to free borders. The policy and legal framework is in the following:  The Protocol on the EAC Customs Union  The EAC Customs Management Act 2004  The East Africa Community Customs Management Regulations, 2010  The EAC OSBP Bill 2010 which is awaiting enactment and passing by parliament. The EAC Secretariat has also set up a number of Technical Working Groups since 2007, to harmonize and simplify documentation, procedures and operational practices of different regional Government departments, institutions, agencies and private-led agencies. A number of instruments and common standards have been introduced to facilitate regional transport and trade including harmonized axle load limits, harmonized transit charges, regional carrier licensing, regional third-party motor vehicle insurance, and regional customs transit system. However, despite being adopted by most member countries, effective implementation has been erratic and generally weak (EAC 2011). The East Africa Trade and Transport Facilitation (EATTF) Program, the three Corridor Agencies in East Africa:- the Transit Transport Coordination Authority (TTCA) of the Northern Corridor, the Transit Transport Facilitation Agency (TTFA) of the Central Corridor and the Dar-es-Salaam Corridor Coordinating Committee (DCC) provides an institutional framework for undertaking interventions on the ground in terms of both regional and national projects and activities to establish OSBPs with a view to enhancing the overall economic competitiveness of East Africa.
  16. 16. Page 16 Base Line Survey on Nimule/Elegu Border e Posts 3. METHODOLOGY OF THE STUDY 3.1 Approach The consultant’s approach to the assignment has been distinguished by three key principles:  Any strategies and recommendations proposed contributes directly to the enhancement of the performance of TMEA and the states, border management agencies involved in the assessment;  Any proposals for change and transformation have been built on the structures and capacity which has already been created  A fair representation of key stakeholders and interested parties have been consulted for their views on the lessons learned to- date and the way forward 3.2 Methodology Consistent with our proposed approach, the following methodology was adopted to meet the terms of reference of this assignment. In summary it entailed: a) Document Collection b) Stakeholder analysis c) Data (primary) collection d) Data analysis and compilation of report e) Stakeholder consultation on the draft proposal f) Completion and submission of the final proposal 3.2.1 Document Collection Solicitation of documents from TMEA and other recommended organizations formed part of the documentary review. Some of these documents which include: policy statements, official reports, etc., were searched and secured of both hard and soft copies of data and information from relevant agencies of Governments i.e. Revenue Authorities especially customs service departments, Ministries of works, transport and infrastructure, roads authorities, Makerere University Business School - Kampala and internet web sites (WB, WCO, WTO, UNCTAD, EAC, Google, etc.). The objective of this initial review of the documentation enabled us to determine the parameters and key characteristics of the assignment. Our document review included, but was not limited to those listed for sharing in the ToRs.  Previous studies relevant to border posts  Feasibility Impact Assessment Survey Reports for other border posts  Time release studies carried-out in Uganda and Rwanda  Various strategy papers / documents for border management agencies 3.2.2 Data collection The collection of primary data was mainly based on the investigator’s own direct observation of relevant people, actions and situations without asking from the respondents. The other aspect of data collection identified stakeholders within South Sudan and Uganda as well as agreed relevant parties that have a direct interface with the agencies at border points. In addition, the various relevant institutions and individuals were contacted accordingly. The Consultant started with the TMEA office to meet the responsible officials for initial contacts about the assignment. The data collection outside the TMEA involved a number of components. These were selection of a sample, interviews with select key stakeholders (customs, immigration, clearing agents, police/security and observations. 3.2.3 Sample Selection A sample is that part of a population which is actually observed. The target sample in this study involved direct staff of the selected key agencies. These included mainly station heads, practicing/hands-on officials and randomly tax payers & truckers. This method was selected in such a way that it avoided presenting any biased view of the population. The method applied in this case was called simple random sampling in which the probabilities of different samples were all equal.
  17. 17. Page 17 Base Line Survey on Nimule/Elegu Border e Posts 3.2.4 Interviews with Stakeholders The types of survey were both structured and unstructured. Structured by use of formal lists of questions asked of all respondents in the same way. Unstructured where the interviewer probed respondents and guided the interview according to their answers. Targeted interviews with selected stakeholders were conducted and included some of the key stakeholders below:  Revenue administration heads or heads of border stations  Heads of border security agencies  Heads of National Agencies for Standards and OGAs  Immigration agencies In collecting data, the consultant aimed at establishing the status quo and deepening understanding on, among others:  The key clearance activities and their associated obstacles at borders  The trade patterns of the two countries and the related performance at the border post  The operations and value addition of border management agencies as well as existing/ observed bottlenecks  Inter-agency coordination mechanisms amongst the border management agencies  Process flow mapping of cargo, vehicles and passengers in the clearing process  Hierarchy of OSBP establishment and procedure implementation continuum  Institutional arrangements for ideal border posts under OSBP 3.2.5 Data Analysis and Compilation of the Report Qualitative research method was applied to describe the phenomena and events at the border in an attempt to understand and explain them. In analyzing qualitative data, the consultant used content analysis methodology, through categorizing similar responses to come up with emerging themes. When all the data (primary and secondary) was fully analyzed, we embarked on the process of drafting the report. The draft has been discussed internally among the team members and edited for factual and grammatical errors before it is submitted to the client. 3.2.6 Stakeholder consultation/ sensitization on the draft report The consultant worked with the TMEA team to consult various and relevant stakeholder leadership. This allowed for the clarification of expectations, roles, risks and contributions to the implementation of the OSBP concept. The stakeholder leadership consultation/ sensitization clarified the roles of leadership and various stakeholders at each stage of the OSBP concept/facility implementation process 3.2.7. Challenges to the study  Many respondents were not very exposed to the current and industry-age practices of border management and principles. (That is why most of the best practice is gotten from literature review).  The fact that border procedures in respect to security, connectivity, e-security, demands for best practices and joint facilities were quite a new concept at Nimule/Elegu border post, limited the understanding and accordingly the responses to the questionnaires. By applying face-to-face interview approach, the consultant used oral information as additional to the data.  Lack and limited availability of both elaborate data and information from border agencies to assist in establishing the existing conditions. The consultant relied mostly on the previous experience of managing and supervising over thirty related border posts in Uganda, which shared borders with these countries; South Sudan, DRC, Rwanda, Tanzania and Kenya. Despite the above limitations, the Consultant got a clear understanding of the subject from a wide range of literature that was obtained on the subjects of trade facilitation, border management, security, border technologies and procedures; and from his own knowledge in border coordination, modernization and institutional concepts and principles.
  18. 18. Page 18 Base Line Survey on Nimule/Elegu Border e Posts 4. RESULTS OF FINDINGS ON OPERATIONAL ACTIVITIES The study identified existing procedures and activities, and documented the status of their implementation, pointing out any gaps and the causes thereof in the order of the border posts below. Their mapped procedures and narratives can be referred to in section 12. 4.1 Bibia/Elegu Border Post - Uganda 4.1.1 Existing Procedures for Key Agencies (see Appendix 5) Customs Transit Management Bibia exits a lot of through transits, bonded and un-bonded exports to South Sudan. When the Truck driver arrives at the border, the following procedures apply: (a). A proper Customs officer receives the Customs documents from the truck driver or owner of the goods. (b). The proper officer (depending on availability of network) confirms that all adequate Customs Clearance process was made by the preceding Customs offices by comparing the details of the documents carried to what is in the ASYCUDA system. (c). The officer checks /inquires for other aspects like Transit Goods License (TGL), Road User payments (d). The officer checks whether the goods are destined to exit through Bibia. If yes, he goes ahead with the clearance, if not, he refers such matters to the Station I/C for further management. (e). The officer then inspects the truck – seals, marks and numbers and other details against the documents presented. And where variances arise, he queries the truck driver or owner of goods. If matter is not satisfactorily explained, the officer raises and forwards the matter for offence management (By Enforcement) (f). Where there are No variances or queries, the officer shall validate the transaction in the ASYCUDA system (depending on the availability of the network) and wave /exit the truck. (g). On a regular basis, mostly weekly, the ASYCUDA system is queried for trucks destined to exit through Bibia but which have exceeded their statutory exit period. Any findings are forwarded to the enforcement arm of Customs Department based in the station. Offence Management The Offence management at the Station is applicable to offences created under the provisions of the East African Community Management Act (EACCMA). Once an offence has been confirmed by a proper officer arising from either (a) above or elsewhere: (a). The proper officer at the station issues to the taxpayer or his Agent a notice of seizure. (b). The Officer takes a statement from the offender, completes an offence report, seizes the goods and records the details of this transaction in the Offence Register. (c). Where the offender is willing to settle the matter out of court like is the case for almost all the cases at Bibia Customs Station, Form C40 (Request to settle the case) is completed. (d). The proper officer computes the taxes and/or penalties and issues a payment notice (e). The offender pays the cash to the station cashier who instantly issues him/her with a receipt generated from ASYCUDA. (f). After the payment process, the goods are released and the offence register is updated accordingly. Temporary Admission Bibia also clears vehicles temporarily imported into the country from S/Sudan. When a vehicle arrives and the owner of the vehicle or his agent declared his intention to secure a temporary road license (TRL), the following is done: (a). The officer examines and compares the vehicle details to the documents (especially vehicle logbook) as submitted to him by the vehicle owner or his agent. (b). Where no discrepancies are identified, the officer captures the details of the motor vehicle and that of the owner/Agent into the TEVIES (Temporary Vehicles Import and Export System) and (depending on the availability of network). While processing entry of a vehicle, the TEVIES system has three basic processes namely – Submitting a declaration, Confirmation of Payment and Issuance of Temporary Importation Certificate. (c). Depending on the type of vehicle (Private /Government etc.) the TEVIES system will either issue a Miscellaneous Payment Form (MPF) to enable effect payment or not – (Government vehicle do not pay) in which case the system will issue the Temporary Importation Certificate without issuing an MPF.
  19. 19. Page 19 Base Line Survey on Nimule/Elegu Border e Posts (d). If it is a paying class of vehicle, TEVIES issues a system generated MPF which is paid into the ASYCUDA system prior to the issuance of the importation certificate. It should be noted that as a counter check, the system cannot issue a certificate of importation before a payment is made into the ASYCUDA system except only for non-paying vehicle. (e). Both the officer and the owner of the vehicle or his authorized agent signs off the generated TEVIES documents after which the taxpayer proceeds to his/her intended destination in Uganda Return of the Vehicle (a). When any vehicle previously issued with TRL either at Bibia or at any other station want to exit to South Sudan, the Particulars of his documentation will be checked by an Officer at the station to ensure that the vehicle has not overstayed in Uganda and the particulars of the vehicle are still the same as those indicated on the paper work. (b). Where queries are applicable, the officer reconciles the vehicle in the TEVIES system and the vehicle is exited. (c). Where the vehicle has overstayed in Uganda, the offence process takes effect. Clearance of Imports The Station receives imports for direct Home use with the necessary or available supporting documents from authorized /licensed Clearing Agents. Upon receipt of the above, the following is done:  IM 4 (Home Use Clearance) The Station In charge or his appointee allocates the Customs Entry lodged by a Licensed Customs Agent to the various officers to handle. (a). The allocated officer(s) does a document check and ensures that all relevant boxes in the entry are completed and also ensures that all relevant/ available documents are attached (b). The officer performs verification of the goods and a verification account is generated. (c). After verification, the results found as per the verification are compared with the declaration to confirm no errors for aspects like classification, value/rate declared, unit of measure etc. (d). Where there is nothing to query the agent on any of the matters above, the officer determines the Customs value, received tax payments from the taxpayer or his authorized agent and finally releases the consignment from the ASYCUDA system. The truck is then allowed to proceed. 4.1.2 Immigration procedure for registration of citizenship Citizenship in Uganda is governed by the Uganda Citizenship and Immigration Control Act (Chapter 66) of the Laws of Uganda. Any person to who section 14(1) or (2) applies may apply to the board in writing in the prescribed form, and the board shall, on proof to its satisfaction that section 14 applies to that person, register that person as a citizen. The board shall upon registration of any person under subsection (1) issue to that person in the prescribed form a certificate of registration as a citizen of Uganda. The following procedures take place at Bibia frontier:  Check passports for anything unusual, use intelligence to identify problems  Stamp and return passports if the traveller conforms to the required procedures.  Emphasis of using standardized identification documents to cross border. Uganda has sufficient documents.  Request on the Visa fees is on a reciprocal basis on USD $50 single entry. 4.1.3 Other Agencies: - The following agencies were established to function;  Security and police are at all borders to cause surveillance and monitoring national security, border crimes & infiltration, law and public order. The activities are conducted as provided under their respective legal mandates and Acts.  OGAs included: - veterinary, standards, agriculture & forestry are stationed at regional offices in Gulu town and are notified for intervention when necessary. Their procedures are standalone, interventionist and adhoc. Sometimes their activities are always linked to the customs and security agencies’ procedures.  Border posts agency officers are being trained for basic and management checks and referrals
  20. 20. Page 20 Base Line Survey on Nimule/Elegu Border e Posts 4.2 Nimule Border Post – South Sudan 4.2.1 Existing Procedures for key Agencies (see procedure mapping in Appendix 5) Customs Administration The clearance procedure is guided by a Value Guide Line which indicates the items and their respective applicable tax rates. The value guide is used as a reference for rates/values after they are not satisfied by the valued declared by the taxpayers. Imports and Exports Clearance- Bill of Entry The import process runs as follows; (a). The clearing agent receiving the transit documents from the truck driver or the owner/trader for home bound goods. The agent prepares customs entry with all the required transactional documents and lodges it to customs long room. The receiving officer manifests and registers it in the register and forwards the entries to the head of long room. The head of long room allocates the entry (s) lodged to the selected officer to process. (b). The document check officers ensure that all relevant / available documents are attached and more inquiries are made to the trader/clearing agent whether has valid documents/permits. The commonly required permits include a trading license (import or export) issued by Ministry of Commerce and Trade, and then depending on the type of goods, it will require the relevant license and other relevant transactional documents to accompany the lodged entry (see table 4). Customs will usually revert to the crafted value guidelines in their absence. On the part of customs the following are their documents; Arrival form, Application for special services to the Chief of Customs Officer form no’s 54 & 53, Result of Examination (Sec. 61) Sudan Customs form no 48, S. Sudan Customs Bill of Entry. (c). The document checked entries are passed on to the tariff section which is divided into two sub-sections;  Verification and estimation: The estimator (officer performing estimation) carries out verification of the goods and a verification account is generated. After verification, the results found as per the verification are compared with the declaration to confirm no errors for aspects like classification, value/rate declared, unit of measure etc. Thereafter, reference or guideline values are used to approve or estimated the value for tax/duty purposes.  Audit Desk will usually conduct a comprehensive check on the correctness of what has been estimated and determined for tax purposes. (d). The entry is forwarded to cash section. The cashier receives tax payments from the taxpayer or his authorized agent in form of cash revenue. The entry is rotated and numbered. A receipt is issued and entry stamped, perforated and then forwarded to the station head for final release. (e). The Director of the station receives all entries due after payment for final cross-checks. If he is satisfied, final release is issued in a way of endorsement, ‘approved’ with a date and time. The entry is collected by the office courier and taken to the separation section. The entry is separated where the client/agent receives his copies. (f). Final exit process:-The client/agent proceeds to the parking shed or customs warehouse officer in-charge for final exit procedures. The Parking shed or warehouse officer will confirm the documents, compliance with other relevant agencies and authorities for appropriate dues (including porters’ charges) and requirements if found conforming. Issues a gate –pass or stamps again for the final exit. The truck will then get allowed to exit at the barrier gate for home consumption. Transit Management When the transit truck driver arrives at the border: (a). The truck driver or owner of the goods or their clearing agent presents the entry to customs. (b). The customs officer cross-checks the declaration to ensure that all the relevant /available documents are attached and such attached documents are adequate, accurate and are consistent to the consignment. The officer shall ascertain that the Bond in Force (BIF) declared by the Agent is adequate. The officer then inspects the truck – seals, marks and numbers and other details against the documents presented. And where variances arise, he queries the truck driver or owner of goods. If matter is not satisfactorily explained, the officer raises forwards the matter for offence management. (c). Final exit process:- Where there are no queries, the officer shall forward the entry to the station head who will endorse approval for continuation. The entry will be returned and exit of the truck will follow. The clearance time will usually take two days if the procedures were conforming. The transit documents are currently used to clear and later on escort the cargo which is considered risky or counterfeit.
  21. 21. Page 21 Base Line Survey on Nimule/Elegu Border e Posts Offence Management Sudan Customs Management Act (SCMA) provided the basis for compounding offences. The offence schedule was being up dated with some provisions under the East African Community Customs Management Act provides in form of an offence guide below: (a). When an offence happens contrary to the customs procedures, customs officer at the station issues a notice of seizure. (b). The customs officer takes a statement from the offender, completes an offence report, seizes the goods and records the details of this transaction and forwards to the Director who compounds an offence and his decision is final. (c). The offender pays the cash to the station cashier who issues him/her with a receipt. After the payment process, the goods are released and the offence terminates. Temporary Admission The customs procedure under Temporary Road License (TRL) regime is jointly handled by customs and police. When a vehicle arrives from foreign and the owner of the vehicle or his agent declared his intention to secure a TRL, the following is done: (a). The officer and police examine separately and compare the vehicle details to the documents (especially vehicle logbook) as submitted to him by the vehicle owner or his agent. (b). Where no discrepancies are identified, the officers record the details of the motor vehicle and that of the owner/Agent into the register. (c). Depending on the type of vehicle (Private /Government etc.) the officers will collect payment of USD$50 effect payment or not – (Government vehicles do not pay). (d). Both the officers (customs & police); and the owner of the vehicle or his authorized agent signs off the TRL documents/forms after which the taxpayer proceeds to his/her intended destination in S. Sudan. Returning vehicles are not charged. General Comments on: (a). Station Personnel (i). It is also important to note that most of the Customs officers in Southern Sudanese Customs are former combatants rewarded to work in these offices because of their role in the bush war. Because of this, they lack the basic Customs knowledge and other trainings relevant to a proper customs officers’ professional work. It is estimated that over 60% of the border population in the surrounding areas of Nimule is armed. (ii). Nimule customs post is a processing station. This includes receiving of cargo for home use in Sudan and transit through to Central African Republic and Sudan. On average, 3600 trucks are received and cleared monthly of imported and some transit consignments. (iii). Processing of imports of local goods from Uganda on average, clearance of 800 trucks is done monthly of such imports. (iv). Ensure that prohibited imports & exports do not enter or leave the country. Further ensure that restricted goods have proper authorization documents. (b). Collection of trade statistics is still manual and it is collected by the statistics departments There is a statistics section responsible for collection of all trade data after customs has concluded its procedures. After separation by customs a copy or a bundle of copies at daily intervals, are sent to statistics section. This section then compiles its data monthly and transmits it to Juba Ministry of Finance and Planning. The section lacked any statistician official and the officials on the ground were learning on the job. 4.2.2 Immigration The department of Immigration falls under the Ministry of Internal Affairs and National Security. It operates independently of other agencies since security and police are under the same Ministry. The officials perform the following procedures;  Deal with foreigners for those who are coming to S. Sudan and about 300 -400 travellers (both motorized and on foot) are processed on a daily basis at peak seasons.  Check the documents that facilitates the traveller intends to do  Passports are checked for anything unusual, with the use intelligence to identify problems  After check the documents, he pays a USD$ 50 is for single entry and not to exceed more three months. Then official stamps and return passport.
  22. 22. Page 22 Base Line Survey on Nimule/Elegu Border e Posts  For cross border travellers, chits are issued to assist them go on the Ugandan side for temporary visit or on the market day. Sometimes the chits are ignored by the counterparts.  There was urgent need to establishment a mutual and friendly working relationship with Uganda counterparts across the border. NB: Inform travellers cross border treatment and are not charged. The station head proposed to their counter parts to reciprocate but has not yet happened due to different legislation existing in place. 4.2.3 Other Agencies The following institutional border agencies play a supplementary role in the goods clearance process, as well as the legal basis (as defined by legislation, regulations and/or administrative instructions at the country-level for border operations) that drive the clearance processes:  Eastern Equatorial State Revenue Authority  Central Equatorial State Revenue Authority  Taxation Department taken for excise duty, income tax, road toll is under Ministry Finance  Commerce and trade- check permits/licenses for cross border trade and those who imports,  Statistics for compiling Government and relevant OGA’s  Bureau of standards check the validity and quality of goods  Traffic Police for licensing of vehicles  Agriculture, Veterinary/Animal & Crop agencies  Phytosanitary agencies  Police, Security and the Army for maintaining the overall national security and public order  Immigration under interior as customs for passengers/travellers 4.2.4 Procedure Challenges at Bibia-Elegu/Nimule There are a number of challenges observed in the border post:- (a) Specific Border Challenges  The Nimule border agencies’ processes are all manual that are easily subject to manipulations and fraud.  Most of the border agency officers at Nimule are not sufficiently trained in border modern management procedures, Tax Administration or in enforcing the tax law.  The absence of an updated tax law in place. Borrow and use EACCMA and its regulations on observer status.  The serious interference in the Customs work by the various security Agencies at Nimule border. The security risks in S/Sudan are still high. In the disguise of the security officer being on the lookout for security risks, they tend to interfere in all border agency operations.  The Clearing Agents at Nimule are more than thirty in number, untrained and practise a lot of forgery like scanning of Customs documents from Uganda, collusion with security Agencies to evade proper clearance of containers, vehicles etc. (b) Agencies operating on a standalone basis  Multiple Agencies. There are sixteen Government, regional Government and private sector agencies all crowded at Nimule border  Predominance of in-house build and delivery 100% manual systems that don’t relate with the headquarters. For example the Station head has a locally drafted and discretly used valuation guideline.  Isolated data capture and information processing by all agencies.  Emphasis on back office transaction processing. A lot of the business operations are performed by people who do not make policy, or the place where they work. (c) Physical control and constraints that impact procedures  Limited integrity and transparency by agency officials, e.g. there is total absence of open-office concept.  Organizational performance measurement is absent especially for Nimule agency staff and Uganda’s OGA’s.  Standard and basic training, mainly technical and administrative is absent and required urgently.  During rainy season, the place floods, slowing down traffic movement that impacts on the clearance time and examination activities.  Land encroachment by inhabitants on land that used to house customs in early 1950s. The Commissioner Customs has since November 2011 validated the earlier land status to final formalities of titling the acquired border land area by this
  23. 23. Page 23 Base Line Survey on Nimule/Elegu Border e Posts year. Remedy: Secure land for constructing OSBP facilities in a juxtaposed arrangement along the border line (separated by the River Elegu) between Uganda and Sudan. 4.3 Numerous Documents to Fill There are varying documentation requirements by two countries for cross border transactions. Growing depletion of some natural forest resources and security concerns have also caused most countries to require rigorous and complicated documentation systems. The document requirements also vary according to the type of products entering in and out of a country. This is particularly burdensome when it comes to products such as agriculture and animal products which require different permits and certificates in order to move across borders. There is also lack of a standardized and efficient procedure for securing clearances and facilitation of the importation and exportation of particular products. The study carried out and established that the required documents include customs declaration forms, invoices, freight documentations, licenses (where applicable), as well as official documents exchanged between the parties to the transaction (see Table 4). On average it requires seven (7) documents to move goods across borders in the border posts. Although there are a number of documents required at different country borders, they are instituted for various reasons as described in the table, they lead to delays, increase costs, open avenues for corruption and therefore a hindrance to bi-lateral and intra-regional trade. It, therefore, recommended that we:  Review current documentation requirements with the view of streamlining and reducing the documents in number necessary for crossing the borders  Establish an efficient pre-clearance process that allows one to put all documents together. Physical checks should only be carried out to ascertain that the goods carried correspond to the documentation  Incorporate modern customs risk management practices such as the Authorized Economic Operator accreditation  Standardization of procedures for securing clearances and facilitation of the importation and exportation of agricultural and livestock products  The adjoining governments of the different border posts should work towards reducing and later on harmonise the numerous and different number of documents used for trading goods across these borders
  24. 24. Page 24 Base Line Survey on Nimule/Elegu Border e Posts Table 4: List of Import and Export Documents No. Export/Import Documents required Source/Issuing Agency Importance/ Purpose General Documents required 1 Commercial invoice or simple cash sale receipt & Packing List Prepared by the seller Valuation and duty assessment 2. Shipping bill, Bill of lading Prepared by the shippers Declare goods for voyage and travel manifest 3 Import & Export bill of entries, Transit entries, Simplified Cross-Border Certificates, EAC, COMESA, S. Sudan certificates of origin Revenue Authorities and Customs Administrations of the respective countries These certificates grant preferential tax treatment for goods of a value not more than US$ 500 traded among partner states 4 Boarder Permits/ Local Authorities & Councils clearance letters Issued at Border Districts, regions or Local Authorities and Council area offices Gives credibility to the origin of goods. Very cumbersome to acquire 5 Drugs Certificates Drugs Authorities and Heath Ministries Certifies and grants permission to import or export types of drugs and their durability. Animal & Animal Products 6 Live Animal and animals products Export License Livestock Health and Entomology –Ministries Grants permission to transport line animals & products across borders. Processed Products 7 Quality Assurance Certificate National Bureau of Standards Proof of quality, safety compliance. Fish 8 Health Certificate Department of Fisheries in Ministries Certifies that processing was undertaken under hygienic conditions and thus guarantees safety to the consumer. 9 Fish Export Permit Department of Fisheries Grants authority to operate business in Fish export. Minerals 10 Mineral Export Permit Geological Surveys and Mines Department Grants permission to trade in Mineral products and gives proof of a legitimate product Bees and Bee products 11 Export permit and health Inspection Certificate. Livestock Health and Entomology Grants permission to trade in bee products, packaged bees, and bee colonies Second hand clothing 12 Fumigation certificate Private certified fumigating companies. For Second hand clothing. This shows that the clothing were fumigated prior to shipment and are free from any vermin`s or disease causing organisms. Coffee and Cotton 13 Export Permits Coffee and Cotton Development Authorities. Required before a coffee or cotton shipment is cleared by customs for export. Wild Animals 14 Wildlife permit Wildlife Department Authorities Grants permission to trade in wild live animals, games and trophies Flower fruits, vegetables and plants 15 Phytosanitary Certificate and Timber permits Ministries of Agriculture & Forestry A mandatory International requirement for trade in plant product. It certifies that the product does not contain anything injurious to plants, animals and human health. Source: Original Data Collection in Nuwagaba (2011)
  25. 25. Page 25 Base Line Survey on Nimule/Elegu Border e Posts 4.4 Border Agencies A key impediment to cross border and intraregional trade at these border posts is the multiplicity of government agencies on both sides of different borders. All government agencies enforce different types of legislation and have legal powers to detain goods and people if any transgression against any of the specific pieces of legislation is flouted. The most common or standard agencies across borders within the region are listed in table 5 below. Table 5: Border Common and Unique Agencies Country Common agencies Unique agencies South Sudan: Nimule Eastern Equatorial State Revenue Authority Taxation Department taken for excise duty, income tax, road toll is under Ministry Finance Commerce and trade- check permits/licenses for cross border trade and those who imports, Statistics for compiling Government and relevant OGA’s Bureau of standards check the validity and quality of goods Traffic Police for licensing of vehicles Agriculture, Veterinary/Animal & Crop agencies Phytosanitary agencies Police and other Internal Security for maintaining the overall national security and public order. Immigration under interior as customs for passengers/travellers Central Equatorial Province Revenue Authority Ministry of Internal Affairs Army Uganda:- Bibia/Elegu Customs Immigration Police Agriculture & Veterinary Army, Internal Security National Forestry Agency Source: Original Data Collection in Nuwagaba 2011 Generally, there is lack of a centralized coordination mechanism among border agencies. Each agency captures their information for their own needs, possibly in different formats, thus reducing the potential of sharing the information and by so doing affect border post operating efficiency. This therefore, makes it almost impossible to share information in a timely manner even if they were to cooperate. There is need to establish a coordinated and standardized operations of agencies within each country. Once this is set, harmonization across countries can then be improved. Harmonization internally and across borders will have a number of benefits. However, for the process to take effective change there is need for capacity building programs for all border officials. 4.5 Legislative Framework Supporting Procedures 4.5.1 The Legal Aspect on OSBP concept The OSBP concept envisaged for Nimule/Elegu border procedures requires additional legal authority beyond that which is provided by, if any, the existing legislation for two essential reasons. Firstly, it will entail the performance of border controls by various officers of one State in terms of its national laws extraterritorially in another State. Secondly, a legal mandate is required for hosting
  26. 26. Page 26 Base Line Survey on Nimule/Elegu Border e Posts arrangements of that Sate’s border control officers who will operate in terms of their own national laws within the territory of the other State. The legal framework proposed would also additionally provide for the administration and management of wider safety and security functions including the general maintenance of law and order (as distinct from border controls) at such OSBP. 4.5.2 Underlying legal principles to support operational activities Extraterritorial jurisdiction: - It is an established legal principle of public international law that national laws of a State generally only apply within the territory of that State. “…….. The exercise of jurisdiction is limited, save by special international agreement, to the territory of each State, so that the State can only exercise it over persons or things within or coming within the territory”. The principle of extraterritoriality allows the participating states to extend the application of specific national laws to a place located outside their own territories. Extraterritoriality is thus an exception to the above stated legal principle and to that extent would of necessity need to clearly define which national laws apply extraterritorially and specific locations where such laws would apply. Hosting arrangements: - Similarly, as with the said principle of territorial application of national laws, officials of a States are limited, in the exercise of their functions and application of their national laws, to within the territory of that State. The exercise of official functions and application of the national laws in the territory of another State of necessity needs to be agreed to between the two States and authorised by such other State in terms of its own national laws (OSBP Source Book 2011). 4.5.3 Determination of Appropriate Legal Instrument A number of instruments to enact the OSBP concept into law in this particular jurisdiction of Uganda and South Sudan are available as follows: Bilateral Arrangements  Memorandum of Understanding (MOU) and National Act This is the most recommended approach where two adjoining countries are involved and the focus is on establishing an OSBP at a particular Border Post. It entails the negotiation and conclusion between the two countries of a bilateral agreement in which the parameters of establishing such OSBP are spelt out. It also requires that such arrangement be entrenched in the domestic laws of each country by way of an appropriate Act of Parliament so as to give legal effect to the provisions of the MOU and the principles of extraterritoriality and hosting arrangements.  Other It is not mandatory that the bilateral arrangement should be called an MOU. Other jurisdictions may prefer to call such agreements a Memorandum of Agreement (MOA), or Protocol or Treaty or Constitution, or any such other name as may be deemed appropriate. What is critical is that such legal instrument should outline what is considered the key issues to be addressed therein as will be outlined below. 4.6 The Private Sector Involvement and Participation 4.6.1 Business Service Providers These include:  Customs clearing brokers (useful in establishing transit documentation and a few times for home use goods clearances, though not necessary when goods are above the authorized threshold and cleared inland),  Bank offices (where duties and taxes collected by customs and all other agencies are often paid), and foreign exchange offices (usually handled by money changers or one registered bureau).  Insurance Companies. The presence of insurance brokers offer services on the issuance of COMESA insurance certificate or third party requirements for motor vehicle insurance; and where differing insurance regulations exists.
  27. 27. Page 27 Base Line Survey on Nimule/Elegu Border e Posts 4.6.2 Business and society Costs Incurred The problems arising from the different border procedures typically translate to additional costs of doing business. The hassle of random inspection by various agencies, collecting the required documentation, and lack of information sharing and communication through interfaced ICT systems all lead to delays for companies trading good across borders. Table 6 below shows the national average number of days a consignment takes to cross one (1) border and the average cost incurred per day per consignment for delays by business. Table 6: National & Nimule Border Average Cost Incurred by Delays Country Average no. of days to cross one (1) border Average cost pr. day for delays (US$) Average cost per delays (US$) at Nimule/Elegu DRC 3-7 days 300 Burundi 1-2 days 125 Uganda 1-2 days 100 100 Rwanda 1-2 days 100 South Sudan 3-8 days 250 350 Average 1-8 185 225 Source: ESA-BMO research study group 2010 & survey 2011 comparative figures 4.7 Clearance and Processing Times During the survey it became imperative to establish the efficiency levels with regard to testing the existing procedures at Nimule/Elegu border post. The efficiency measure was determined by measuring two variables based on the WCO (2007) time release study principles. The processing mean time from the time a transaction is registered or one enters and leaves the customs or border area. The other variable was to ascertain transactional clearances of cargo itself in terms of entries registered and assessed. The findings in figures 2 & 3 were based on both primary & secondary data and observations at the border posts; and are graphed in the following texts. Note: The processing times graphed are actually average processing times. 4.7.1 Customs Figure 2: Average Daily Clearance Transactions and Processing Times (Hours):- Nimule & Bibia/Elegu Source: Oral & Structured Interviews 2011  Generally, Nimule performs far below expectations with processing time up to days for transactions that should be processed in just minutes. Daily clearance transactions too remain low.
  28. 28. Page 28 Base Line Survey on Nimule/Elegu Border e Posts  Bibia on the other hand takes slightly more processing time than best practice but its processing time is visibly less than an hour unlike the Nimule border which takes days.  Even with the lower processing time at Bibia, the daily clearance transactions do not correspond accordingly.  Nimule take an average of 4 days to process imports on the border, remarkably it records a fairly high number of daily clearance transactions(170) which is well above the minimum expectation (100) compared to Bibia (25) which only takes 45 minutes.  Export assessment and transit for both directions for Nimule takes about a day in processing time and still records low daily clearance transactions of 25 and 80 respectively compared to the optimum of 100 and 200 respectively.  Temporary admissions, despite the enormous time gap, indicate the same number of daily transactions at both borders of Nimule and Bibia. 4.7.2 Immigration Figure 3: Average Daily Traveller Clearance & Processing Times (Minutes): Nimule and Bibia/Elegu Source: Oral & Structured Interviews 2011  The two border posts, Nimule and Bibia, perform over and above the minimum expectations (200) for the informal travellers daily clearance transactions  Nimule and Bibia (175) perform over and above the optimum for the official /transit traveller daily clearance transactions.  Nimule (12.5 and 7.5) fails to meet the best practice for official/ transit processing time and informal traveller processing time.  Bibia performs over and above the optimum.
  29. 29. Page 29 Base Line Survey on Nimule/Elegu Border e Posts 4.7.3. Emerging Issues/Lessons (a). The OSBP Model The procedural findings established security and sovereignty at this border post to favor the juxtaposed type of OSBP model. Elegu border post on Uganda’s side requires a totally new set up of physical infrastructure to host the operational activities. Nimule border post may require remodeling of the existing structures or total reconstruction to bring to harmony the procedure and security arrangements. (b). Sovereignty and Security Concerns In South Sudan, the inter-tribal conflicts are threatening the fragile peace efforts after independence on 09/07/2011. Armed bandits and cattle rustling is worsened by the small arms infiltration circulated in the larger part of country. The LRA insurgency which is now confined in the deep western part of the country is causing fatalities and death to the local communities. Over 25,000 people have been displaced from their homes, mostly in the areas of Ezo, Yubu, Tombura, Nagero, Nzara, Yambio, Ibba, Maridi and Mundri West counties in Western Equatorial State since 2010. Trade and transit corridors are constantly disrupted in the affected areas. The issue of sovereignty is still sensitive with border demarcation still unresolved around the country. Security is very fragile and insecurity still prevailing especially in the rural areas. The areas of Kaya and Nimule are relatively secure and well protected. OSBP concept must be backed by the legal framework (protocols, agreements, MOU’s or Act) accepted and endorsed by all relevant parties. These were the sentiments from the brief interaction with the parties from the capitals and at the border posts. There are prevailing concerns of insecurity in varying degrees in all the two member states under study. The design of the border must put HIGH security consideration the location at the immediate borders to the comfort and safety of all operating agencies’ officials.
  30. 30. Page 30 Base Line Survey on Nimule/Elegu Border e Posts 5. FUTURE DEMAND FOR BORDER AGENCIES 5.1 Introduction Procedure simplification and coordination of a multitude of agencies involved in border clearance is increasingly cardinal for an efficient border post management. In designing the border architectural designs, not only the count is done but also the relevance of each agency ought to be evaluated to have a must presence at the CCZ. Both the clearance and processing time underscores the optimal facility utilization, sharing and holding capacity considerations. In addition, it is critical to provide estimates for both office space and personnel requirements to aid sectional allocation in terms of numbers, location, size and their dimensions within the common control zone (see Appendix 1, 2 &3). The key border agencies and their roles have been highlighted in Appendix 4 below. 5.1.1 Juxtaposed OSBP Proposed Process Flow: - The future demand on design for Nimule/Elegu should take into consideration a juxtaposed OSBP model recommended as most appropriate. The proposed process-flow mapping follows (see mapping in section 12) and thus summarized here below; Process Flow- with OGAs (Standards, Phytosanitary, Veterinary, Immigration, Police, Health, border management)  The process starts when pre-arrival information is received by the clearing Agent  The agent makes a Pre-entry using the pre-arrival information  The agent assesses and uploads the declaration with the relevant documents Customs will conduct a face vet on the lodged declaration  If the documents do not conform then they will be queried and forwarded to the agent for correction  If the document conforms then selectivity will be triggered in (ASYCUDA)  After selectivity is triggered then there will be concurrent clearance by customs and OGAs for yellow lane entries  Issuance of certificates by other Government agencies  The declaration will then be Passed/Released Goods arrival at the border  Green lane entry goods will be exited immediately they arrive at the border  Red lane entries goods will undergo a joint verification  If the goods do not conform then the offence process will be triggered  If the goods conform then they will be released.  The goods will then be exited in the system  Final exit from the border Clearance of Goods below CIF value threshold All goods in small quantities or baggage that are below $500 CIF value threshold by travellers will report and declare to the designated customs impound shed. Customs official(s) will assess by using the automated simplified document (SD). The traveller or taxpayer will proceed to pay in the near-by bank and return for confirmation, final release and exit procedures by customs. Where other OGAs wish to intervene, customs usually informs them. Cashiers in this instance are meant to carry out book keeping and revenue reconciliations. The administrative procedure should remain in place to keep limiting such baggage to the extent that when they exceed a set limit, it is forwarded inland for processing. Such policy will aid to lessen clearance pressure on the right-sized facility put in place. 5.2 Coordinated Border Management Coordinated Border Management (CBM) is most appropriate for efficient and effective border post management as a tool to establish cooperation with the multitudes of border agencies legitimately operating at common frontiers. CBM represents an approach to manage borders involving public and private service agencies working across portfolio boundaries in a coordinated manner to achieve a shared goal thus providing a cohesive government response to the challenges of border management. CBM can be divided into two categories:

×