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CUSTOM CLERANCE OF
CHEMICAL MATERIAL
AT OMAN BORDERS (EXPORT)
1
Preface
This project report is about the study on customs clearance at Oman borders for
Export of chemical materials from various border of Sultanate of Oman to GCC
Countries. The study of is based on the objective to find out the difficulties faced by
various Originations/Exporters in custom clearance for exporting their products to
GCC countries; this study will help out to originations/Exporters and custom
department to understand each other for working together for the benefit of Oman.
The study is completed in Soahr and based on feedback from local customers in day
to day problems faced by the exporters and transporters.
2
Table of Contents
Sr. No. Particulars Page No.
Chapter 1.0 Introduction 07
1.1 Statement of the Problem 07
1.2 Theoretical Concept and Framework 07
1.3 Details of Study 13
Chapter 2.0 Methodology 14
2.1 Research Design 15
2.2 Sample Design 15
2.3 Objectives of the Study 17
2.4 Importance and Scope of the Study 17
2.5 Limitations of the Study 17
Chapter 3.0 Data Analysis Process 19
3.1 Descriptive analysis of data 19
3.2 Summary of Analysis of data 24
Chapter 4.0 Conclusions 29
4.1 recommendations 30
Bibliography 31
Appendix 31
(a) Questionnaire 32
(b) Interview Questions
3
List of Tables
Sr. No. Particulars Page No.
Table 1.0 Total Product Sold by OFCC in One year to UAE 08
Table 3.0 Answers for Question no. 1 19
3.1 Answers for Question no. 2 20
3.2 Answers for Question no. 3 20
3.3 Answers for Question no. 4 21
3.4 Answers for Question no. 5 21
3.5 Answers for Question no. 6 22
3.6 Answers for Question no. 7 22
3.7 Answers for Question no. 8 23
3.8 Answers for Question no. 9 23
3.9 Answers for Question no. 10 24
3.10 Summary- A: - for questions 24
3.11 Summary- B: - for questions 27
4
List of Diagrams
Sr. No. Particulars Page No.
Diagram 1.0 Export Chemicals from Oman to GCC 07
1.1 OFCC Customers in UAE 08
1.2 Process of Custom Clearance 11
1.3 Parties Involved in Custom Clearance 12
1.4 Bayan System Login and Declaration Processing 12
Diagram 3.0 Summary of Results of Questions A 26
3.1 Summary of Results of Questions B 28
Abbreviations:
1.1 MECA : Ministry of Environment and Climate Affairs
1.2 ROP : Royal Oman Police
1.3 OFCC : Oman Formaldehyde Chemical Company LLC
1.4 KR : Khimji Ramadas LLC
1.5 MHD : Mohsin Haider Darwesh LLC
5
Chapter 1: Introduction
The report is based on the study on customs clearance rules, regulations, difficulties,
methods procedures followed at Oman borders during Export of chemical materials
from various border of Sultanate of Oman to GCC Countries. The study of this report
is based on the objective to find out the difficulties faced by various originations in
custom clearance for exporting their products, a detailed study on procedures and
customers problems in clearance of their chemical products is the key area of this
report.
1.1. Statement of the Problem
The main problem is the complicated procedures of clearing chemical materials at
Oman borders during exported to GCC countries. In Oman there are around six
borders and each one used different rules and procedures for clearing chemical
materials which make the process of exporting chemicals complicated and not
smooth. Also the existence of non-qualified staff at borders to resolve and
improvethe system of controlling the clearing process, If we solve this problem it will
helps Omanmanufacturing and trading Companies to exportmaterials smoothly,
exporting companies will save time and money, and companies will not lose their
customers, due to custom rules and regulations and it will help in increasing the
profit margins of originations, it will also help to reduce theproduct exporting
expenses, it will reduce congestion of trucks at borders, and it will reduce work load
to all concerned in export chain.
1.2. Theoretical Concept and Framework:
Export Chemicals from Oman to GCC
Oman is manufacturing industrial chemicals which are used in various industries in
GCC. Some chemicals names are as below:
Diagram: 1.0
6
The manufacturers of these chemicals are Oman Methanol Company LLC and
Oman Formaldehyde Chemical Company LLC. We selected Oman Formaldehyde
Chemical Company as base of study of this report. We discussed in details about the
problems faced by Oman Formaldehyde during its products exported to GCC
countries.Oman Formaldehyde Chemical Company has below customers in UAE:
OFCC Customers in UAE: Diagram: 1.1
Total Product Sold by OFCC in One year to UAE: - Table: 1.0
Products Yearly Qty MT Trips per Year
Formaldehyde- AF 37% 14,500 600
Urea Formaldehyde -UFC 85% 8,750 350
Total 23,250 950
Our report will be focused on the difficulties of customs Clarence faced by Oman
Formaldehyde during export to these customers, in background OFCC is facing
many difficulties in custom clearance front. We will start with of chemical clearance
at borders.
Process of Chemical Clearance:-
Oman Custom department has issued a set of procedures for clearing the chemicals
as below:
Importing could be defined as the process of taking goods to the Sultanate through
Customs offices by land, sea or air according to the determined laws in this regard.
• Tytan Organic Chemicals
• KMT Polymers FZE
• Technical Industries
• Sichem Industries
• Emochem Industries
Product AF
37%
• Ruwais Fertilizer (FERTIL)
• Al badia Middle East
Chemicals
Product UFC
85%
7
Custom Clearance can be done through an authorised agent using the Bayan
System which is online application for custom clearance. It’s an electronic customs
data system for all customs procedures and operations enabling customers to
finalize all customs interactions electronically as per rules and regulations of customs
Bayan system components:
1. Registration of commercial partner system: through providing a code
2. Manifest system: to connect systems of air, marine cargo by customs system.
3. Customs declaration registration
4. Estimating taxes and fees system: calculating due fees and taxes.
5. Refunding system: to refund undue taxes.
6. Finance affairs systems: to manage finance processes and affairs.
7. Exemption system: to monitor customs exemptions.
8. Cottas management system: to control goods with limited cottas.
9. Guarantee management system: to control different types of guarantees.
10. Customs value system:
11. Customs tariff system: to identify terms of goods tariffs.
12. Inspection system: inspection.
13. Mobile application system: to send inspection results.
14. Goods releasing system: to release goods completed procedures.
15. Departure permit system: to issue a departure permit.
16. Arrival registration system: registration of carrier information.
17. Vehicles movement management system: registration of exit/entering of vehicles.
18. Issues system: to register and follow up issues and judgments.
19. System management: codes management.
20. Economic operator system: golden list.
21. Customs warehouses system: to control what is entering and exiting from them.
22. Customs auditing system: to audit all financial and procedures of all customs
23. Free zones system: to control imported and exported goods.
24. Auctions system: to sell neglected and confiscated goods.
25. Supporting decision making system: to provide with information.
26. Statistics reporting system: to organize and issuing statistics reports.
8
Aims of the Bayan system:-
1. To reinforce control over security, health and environment of imports and exports
2. Connecting all bodies of public/private sectors with customs
3. Computerization of all customs procedures and financial, banking processes.
4. Decreasing expenses of importation and exportation operations
5. To up scaling the level of the Sultanate of Oman at the international circles
6. To encourage importers and exporters to use Omani seaports.
7. Encourage national and international investments.
8. Provide rapid facilitation and electronic services for trade community in real time.
9. Present accurate statistics, and analysis for international trade to enable investors
10. To combat trade counterfeiting.
11. To establish electronic data base for all customs, security, health, and risks
12. Unifying customs procedures to be achieved in less time.
13. To limit using paper documents.
14. To apply right roles of value agreement
15. Statistics information exactness
16. Providing detailed information of all imported and exported goods.
17. Quick providing and publication of statistics information.
18. Analyse information and identifying statistics and economic indicators.
19. Using information outcomes in fields of concerned studies and researches.
20. To ease comparisons between Oman exports and that of the other countries.
21. Present accurate information for feasibility studies of investors
22. To encourage foreign and local investments to establish local industries
23. Support auditing of customs transactions processes, collecting due customs
24. Approve the real value of goods according to international value agreement.
25. Providing preferential information about all types of customs exemptions
26. Supporting customs refunding system and guarantees.
27. Issuing licenses and permits electronically to facilitate and fastening
28. Stop using paper documents which limit and stop case of falsification.
29. Pre-arrival information electronically will help to audit and identifying risks,
30. Working with electronic manifest between directorate general of customs and
fright agents and establishments work at seaports and airport services.
9
Bayan systems importance:-
1. To dispense with paper- documents.
2. No need to liaise separately with relevant bodies.
3. Possibility of pre- arrival releasing.
4. Unifying procedures, equality and transparency in treatment.
5. Electronic payments.
6. Risk management.
7. Access to accurate statistical data and information.
8. Avoids repetition of data.
9. Saves time, effort and money.
10. To raise economic status of Sultanate of Oman.
Documents required for Chemical Export Clearance through Bayan System:-
1. A copy from the export invoice.
2. Packing lists
3. Environment Permit form MECA
4. An application letter for the export of material
5. Filling in the Export declaration and form for clearing, classifying the goods
according to the Customs procedure.
6. Agents Authorisation through online Bayan system
7. Certificate of manufacturing of product in Oman
Process of Custom Clearance:- Diagram: 1.2
Submitting
Documentsto
CustomAgent
Agentwill
logintoBayan
Systemand
will fill the
details
Printingthe
Detailsof
Customs
Bayan
Application
Inspectionof
Goodsby
Chemical
Inspector
Paymentof
CustomDuty
to Oman
Customs
10
Parties Involved in Custom Clearance: Diagram: 1.3
Bayan System Login and Declaration Processing:-
Diagram: 1.4
Manufacturer/ Supplier
Customs-Agents
Oman Customs
MECA
Transporter -Logistics
ROP
11
Declaration processing e-Service enables the Importer/Exporter (or their authorized
agent) of goods to declare and clear the goods with Directorate General of Customs.
The declaration can be made under the following regimes and declaration types:
Re-Import
Temporary Import
Statistical Import
Import to and from Bonded Warehouse
Import to and from Free zone / Duty-free
Parcel Import / Express Courier
Personal Imports
Export
Re-export
Temporary Export
Export to and from Bonded Warehouse
Export to and from Free zone / Duty-free
1.3 Details of study:
As Custom department has provided an advance system for custom clearance, but it
is noticed the actual difficulties faced by exporters and manufacturers is based on
implementation of the system process. The real problem in customs is long ques of
trucks standing and waiting for their turn for customs. No timely inspection of goods
is available. Scanning facilities for empty tanks at borders is not available 24 hours.
Inspection of vehicles at border is not available full time. One more issue is related of
chemicals they are highly dangerous products, they should be given preference at
borders and should be provided separately safety and preference in clearing the
chemicals as they have shelf life and some time timely delivery to customers is more
important as customers are losing their production due to late delivery of chemicals.
Delay in custom clearance have another impact on transportation system, supplier
has to deployed more vehicles for schedule deliveries to cover the order in time.
Keeping all above factors in mind the report will highlight the issues of customs and
will try to find solution for fast customs clearance at borders keeping in mind for
economic growth and industrial growth in Sultanate of Oman.
12
Chapter 2: Research Methodology
2.0 Research Methodology
It’s a way of systematic representation of research or any other problem. It is a
written game plan for conducting research. It tends to describe the step taken by a
researcher in studying the research problem along with a logical background.
It tends to describe methodology for solution of the problem that has been taken for
the purpose of study this project focuses on the methodology for technique used for
the collection, classification & tabulation of the data. This plan throws light on the
research problem, the objective of the study & Limitation of the study. Therefore, In
order to solve a problem, it is necessary to design a Research Methodology for
problem as the same way differs from problem to problem.
Type of Research
Research methodology is a way to systematic solve the Research Problem. It is a
procedure, which is followed step by step to solve a particular research problem.
There are basically four types of researches:
Explorative Research
Descriptive Research
Diagnostic Research
Hypothesis Testing Research
The present project is Descriptive in nature. It is done to poetry accurately the
characteristics of a particular individual situation or a group. The major purpose of
the descriptive research is the description of the state of the affairs as it exists at
resent. The main characteristics of this method are that the researcher has no
control over the variables; he can only report what has happened or what is
happening.
13
2.1. Research Design
As my research project is about the difficulties in custom clearance at borders in
Sultanate of Oman accordingly first of all the various objectives of the project were
specified and accordingly the questionnaire and other documents are designed to
clear the objective of research.
2.2. Sample Design
The second step in designing the project work is the preparation of list of need
information. There is basic information on which the research project is to structure.
In this project various information’s is headed in starting of the project. These are as
follows:-
Q: What is the study about?
Ans: A study on customs clearance at Oman borders during Export of chemicals.
Q. Why is the study being made?
Ans: To understand the difficulties of exporters faced at various borders.
Q. Where will the study be carried out?
Ans: Sohar Al Batinah, Oman Only.
Q. What type of data is required?
Ans: Primary as well as Secondary
Q. Where can the required data are found?
Ans: Primary Data through questionnaire from the company staff & secondary data
through local industry, internet, magazines, newspaper etc.
The question was asked about the difficulties of customs clearance at various
borders and related the major attention was kept on the exporter’s problems how to
make it easy to export from Oman borders.
14
Selecting the sample size:
Taking the sample of the study was not an easy task. The objective and the limitation
of the study have to be kept in mind before deciding about the sample type.
In the sample type all departments have been covered. Basically the one exporter
company is selected and questionnaire is distributed in more than 2 companies to
get the actual problem during the research. In Sample 5 various offices were
selected and questions asked to these concerned staffs-
Data Collection Methods:
During the data collection process a questionnaire was made for the collection of the
data from the three companies personally. Because in the research project both
primary as well as secondary data is required so primary data was collected with the
help of the questionnaires, Secondary data is collected from Website of Customs
Department.
The following types of question were asked:
A: Questions with two possible answers- Yes or No.
B: Questions with multiple possible answers says
1. Strongly agree
2. Agree
3. Neither agrees nor disagrees
4. Disagree
5. Strongly disagree
A list of Questions asked is as below:
1. The service level of clearing chemical materials at borders is very good.
2. As a user of Oman borders, do you think their service conducted correctly and
on time?
3. The users have proper guidance when faced with problems?
4. Do you think ROP provides a safe environment for users?
5. ROP’s instructions are clear and easy to follow and understand?
15
6. Are the inspectors available 24 hours for inspecting chemicals for customs
clearance?
7. The procedures of clearing chemicals at Oman borders are same in all borders
of Oman?
8. Do you think time spent for each clearing chemicals at Oman borders is
sufficient?
9. Is the delay during clearing chemicals accruing cost to users extra?
10.Is there an alternative and quick solution when BAYAN system stuck?
11.What are your suggestions to improve customs clearance of chemicals at
borders?
2.3. Objectives of the Study:
The report is based on Objective to get a solution for exporters to avoid the delay in
custom clearance at all Oman borders during export the Chemicals to GCC
countries. Keeping in mind the objective the report is clear to address the issue of
customs clearance process should be improved to achieve the objective of maximum
export from Oman to GCC countries to get the economic growth of country.
2.4. Importance and Scope of the Study:
The importance of study is to provide a solution to various originations to support
them to sell their products to GCC in time as per customer’s requirements, it has
major importune to improve country economic situation by maximum exports as
result getting maximum revere to Sultanate of Oman. More exports will always
improve the country economic situation.
With a perfect service in customs at Oman borders will improve the exports and will
generate the revenue for Sultanate of Oman, and its growth. It will provide more
business and employment opportunities to Sultanate of Oman.
2.5. Limitations of the Study:
 Study is limited to export of Chemical materials to GCC
 Study is limited t to Sohar Oman
 Visits are scheduled to Hatta Border in Oman, Other borders are not visited
16
 Questions were asked to some limited companies in Soahr.
 The research is based on collected data and the researcher is not responsible for
any wrong inference drawn due to incorrect filling of the questionnaire by the
respondent.
 The method of result is also limited to the reliability of method of investigation,
measurement and analysis of data.
 Custom Officers were very busy in day to day operations and put very less efforts
on survey.
 Companies Staff was little hesitated and not fully interested in filling questionnaire
properly.
 Limited Time for research
 Management kept business secrets as hidden and not to disclose it in any cost.
Keeping all above limitation with data providers this report has limitations of total in
depth and results may vary if more detailed data is answered by concerned people.
17
Chapter 3: Data Analysis & Interpretation
3.0 Data Analysis Process:
Without a proper analysis of data the result cannot be achieved. After the
survey work was over & the data had been collected the analysis of the data
was must & its graphical representation was needed. So after the data
collection process step by step analysis of data was the project survey work
was carried out in Sohar Sultanate of Oman and we found a proper response
for our survey, result is analysed with tools of analysis with tables and charts.
3.1 Descriptive analysis of data:
Questionnaire was send to four companies located in Soahr Al Batinah region, all
four companies has replied, based on the replies from the companies a detailed
analysis of replies is analysed in tables and then it is summarised in charts and
results has been interpreted as below-
Based on Questionnaire answers from research is as per below tables:-
1. The service level of clearing chemical materials at borders is very good.
a. Strongly agree
b. Agree
c. Neither agrees nor disagrees
d. Disagree
e. Strongly disagree
Table: 3.0
Answers for Question no. 1
S R Parties a b c d e Remarks
1 OFCC √ Production Co.
2 Khimji Ramadas √ Custom Agent
3 Sea Safe Trading √ Custom Agent
4 Rodat Al Reef Trading √ Transporter
Total Answers 0 2 1 1 0
18
2. As a user of Oman borders, do you think their service conducted correctly
and on time?
a. Yes
b. No
Table: 3.1
Answers for Question no. 2
S R Parties a b Remarks
1 OFCC √ Production Co.
2 Khimji Ramadas √ Custom Agent
3 Sea Safe Trading √ Custom Agent
4 Rodat Al Reef Trading √ Transporter
Total Answers 0 4
3. The users have proper guidance when faced with problems?
a. Strongly agree
b. Agree
c. Neither agrees nor disagrees
d. Disagree
e. Strongly disagree
Table: 3.2
Answers for Question no. 3
S R Parties a b c d e Remarks
1 OFCC √ Production Co.
2 Khimji Ramadas √ Custom Agent
3 Sea Safe Trading √ Custom Agent
4 Rodat Al Reef Trading √ Transporter
Total Answers 0 0 2 1 1
19
4. Do you think ROP provides a safe environment for users?
a. Yes
b. No
Table: 3.3
Answers for Question no. 4
S R Parties a b Remarks
1 OFCC √ Production Co.
2 Khimji Ramadas √ Custom Agent
3 Sea Safe Trading √ Custom Agent
4 Rodat Al Reef Trading √ Transporter
Total Answers 1 3
5. ROP’s instructions are clear and easy to follow and understand?
a. Strongly agree
b. Agree
c. Neither agrees nor disagrees
d. Disagree
e. Strongly disagree
Table: 3.4
Answers for Question no. 5
S R Parties a b c d e Remarks
1 OFCC √ Production Co.
2 Khimji Ramadas √ Custom Agent
3 Sea Safe Trading √ Custom Agent
4 Rodat Al Reef Trading √ Transporter
Total Answers 0 0 1 2 1
20
6. Are the inspectors available 24 hours for inspecting chemicals for
customs clearance?
a. Yes
b. No
Table: 3.5
Answers for Question no. 6
S R Parties a b Remarks
1 OFCC √ Production Co.
2 Khimji Ramadas √ Custom Agent
3 Sea Safe Trading √ Custom Agent
4 Rodat Al Reef Trading √ Transporter
Total Answers 0 4
7. The procedures of clearing chemicals at Oman borders are same in all
borders of Oman?
a. Strongly agree
b. Agree
c. Neither agrees nor disagrees
d. Disagree
e. Strongly disagree
Table 3.6
Answers for Question no. 7
S R Parties a b c d e Remarks
1 OFCC √ Production Co.
2 Khimji Ramadas √ Custom Agent
3 Sea Safe Trading √ Custom Agent
4 Rodat Al Reef Trading √ Transporter
Total Answers 0 0 1 3 0
21
8. Do you think time spent for each clearing chemicals at Oman borders is
sufficient?
a. Strongly agree
b. Agree
c. Neither agrees nor disagrees
d. Disagree
e. Strongly disagree
Table: 3.7
Answers for Question no. 8
S R Parties a b c d e Remarks
1 OFCC √ Production Co.
2 Khimji Ramadas √ Custom Agent
3 Sea Safe Trading √ Custom Agent
4 Rodat Al Reef Trading √ Transporter
Total Answers 0 0 0 1 3
9. Is the delay during clearing chemicals accruing cost to users extra?
a. Yes
b. No
Table: 3.8
Answers for Question no. 9
S R Parties a b Remarks
1 OFCC √ Production Co.
2 Khimji Ramadas √ Custom Agent
3 Sea Safe Trading √ Custom Agent
4 Rodat Al Reef Trading √ Transporter
Total Answers 4 0
22
10. Is there an alternative and quick solution when BAYAN system stuck?
a. Yes
b. No
Table 3.9
Answers for Question no. 10
S R Parties a b Remarks
1 OFCC √ Production Co.
2 Khimji Ramadas √ Custom Agent
3 Sea Safe Trading √ Custom Agent
4 Rodat Al Reef Trading √ Transporter
Total Answers 0 4
3.2 Summary of Analysis of data:
Summary A:-
The summarised results for questions asked to OFCC, Khimji Ramadas, Sea
Safe Trading, Rodat Al Reef Trading for below Points are as per below table
a. Strongly agree ,
b. Agree
c. Neither agrees nor disagrees
d. Disagree
e. Strongly disagree
Table 3.10
Summary- A: - for questions as per above answers-
SR. Answers a b c d e Remarks on Results
Q-1 Results as per table 0 2 1 1 0 Service Level is average, even
some exporters says not good
need improvement in services
Q-3 Results as per table 0 0 2 1 1 No Guidance, Sudden change in
rules without prior notice, rules
are frequently changing for
exports, Custom department is
not clarifying in rules to exporters
once the rule is changed
exporters has to get it clarified
23
Q-5 Results as per table 0 0 1 2 1 ROP guidelines are not clear for
making necessary documents for
export, Each officer have
different views on change of
rules, exporters has to reach at
border and sudden change is
announced without any guidance
Q-7 Results as per table 0 0 1 3 0 Procedures for custom clearance
for chemicals is not same, some
borders inspection of chemicals
is not available. Some borders
Scanners for ISO tanks is not
available, Some borders
chemical clearance facility is not
available.
Q-8 Results as per table 0 0 0 1 3 Custom department is taking its
own time which is not defined,
some time it takes 5- 10 hours
for custom clearance at borders,
and it is difficult for transporters
to wait long time at borders for
their turn. It costs more fuel and
loss in revenue.
Total Results 0 2 5 8 5 In an average the results are not
in favour of exporters, Customs
and ROP rules are only
favouring to their own benefits,
the rules should be changed in
favour of exporters and should
be easy to follow and should be
communicated to customer in
time and rules should be
explained to customers
24
A Graphical view of answers for Summary A:
A total 20 points were allotted to various answers results are as below
a. Strongly agree = 0
b. Agree = 2
c. Neither agrees nor disagrees = 5
d. Disagree = 8
e. Strongly disagree = 5
Diagram: 3.0
0
2
5
8
5
Sumamry of results for various answersfrom
Exporters, Agents and Transporters
Strongly Agree
Agree
Nither Agree nor
Disagree
Disagree
Strongly Disagree
25
Summary B:-
The summarised results for questions asked to OFCC, Khimji Ramadas, Sea
Safe Trading, Rodat Al Reef Trading for below Points are as per below table
a. Yes
b. No
Table 3.11
Summary- A: - for questions as per above answers-
SR. Answers a b Remarks
Q-2 Results as per table 0 4 Custom clearance service is not conducted in
time; it is always delayed due to many
reasons, Inspection, Bayan System not
workings, Approving officers not available in
time, etc.
Q-4 Results as per table 1 3 Safe environment for exporters is not
available. Chemical is always dangerous, it
should be cleared in time to make
environment safe and for safety of
transporters, due to delay in Clarence its
create unsafe environment
Q-6 Results as per table 0 4 Chemical Inspectors are not available at
borders on 24 hours duty. Without inspection
custom is not cleared by Custom department.
Research result shows due to not availability
of inspectors it is delayed the shipment
clearance at borders.
Q-9 Results as per table 4 0 Delay in custom clearance is always costing
to exporters and transporters. Exporters has
to put extra transport facilities to supply the
required orders from their customers in GCC,
it results extra cost of transport. Transporters
has to put more fuel as wastage of fuel due to
waiting time at borders chemicals need
temperatures to maintain and vehicles should
be in start position for maintaining the
chemical temperatures, it costs extra fuel
costs and wastage of country resources
26
Q-
10
Results as per table 0 4 ROP has not provided and alternative quick
system when Bayan system is stuck. All work
is stopped and waiting for system to start
always delays in custom clearance.
Total Results 5 15 Results are not in favour of custom
department. It shows a quick need in
improvement in practical level at various
activities at borders is required, ROP should
provide more facilities at borders and should
be improved the systems to avoid delays and
more inspection facilities should be provided
at borders to avoid the delays and for safety
of environment and more exports from Oman
to GCC it will improve the economy of Oman.
Summary B:-
A total 20 points were allotted to various answers results are as below
Table: 3.13
a. Yes = 5
b. No = 15
Diagram: 3.1
5
15
Sumamry of results for answersfrom
exporters, CustomAgents and Transporters
yes
NO
27
Chapter 4: Conclusions and recommendations
4.1 Conclusions
Based on survey results the following conclusions are drawn:
1. Custom department services are not good, it can be weighted as not
satisfactory for exporters and transporters
2. Custom department is not issuing proper guidance to exporters and
transporters, it is observed from feedback that sudden change in rules are
frequently happening and no proper information is published and
communicated to end users.
3. Customs and ROP guidelines are not clear for exporters and transporters, In
each Shift of ROP officers has different view for same problem and no fix
solution is provided
4. Custom clearance Procedures are not same, some borders inspection of
chemicals is not available. Some borders Scanners for ISO tanks is not
available, some borders chemical clearance facility is not available.
5. Always a delay is observed in custom clearance by Custom department,
Time schedule is not defined by department, some time it takes 5- 10 hours
for custom clearance at borders, and it is difficult for transporters to wait long
time at borders for their turn.
6. Export Custom clearance service is not available in time; it is always
delayed due to many reasons, Chemical Inspection, Online Bayan System
not workings, Approving officers not available in time
7. Chemical Inspectors are not available at borders on 24 hours duty. Without
inspection custom is not cleared by Custom department. Research result
shows due to not availability of inspectors it is delayed the shipment
clearance at borders.
8. Delay in custom clearance is always costing to exporters and transporters.
Exporters has to put extra transport facilities to supply the required orders
from their customers in GCC, it results extra cost of transport. Transporters
has to put more fuel as wastage of fuel due to waiting time at borders
28
chemicals need temperatures to maintain and vehicles should be in start
position for maintaining the chemical temperatures, it costs extra fuel costs
and wastage of country resources
9. ROP has not provided and alternative quick system when Bayan system is
stuck. All work is stopped and waiting for system to start always delays in
custom clearance.
10.Procedures for custom clearance for chemicals is not same, some borders
inspection of chemicals is not available. Some borders Scanners for ISO
tanks is not available, some borders chemical clearance facility is not
available.
4.2 Recommendations
Based on findings from the analysis of data following recommendation are
suggested:
1. Bayan system should be supported by high IT solutions and hardwires, it will
be helpful in providing full time services to exporters and all necessary parties.
2. Chemical Inspection facilities should be provided on all the borders for 24
hours, so transporters can use all borders to export the materials, it will
reduce the load and waiting time on current borders.
3. Empty Chemical ISO tanks scanning facilities should be provided on all the
borders.
4. More agents should be authorised at borders to avoid overcrowded situation
at borders.
5. Agents should be properly trained for Bayan System; a special trading
programme should be introduced by Custom Department.
6. Changes of rules and regulations should be informed to exporters and
transporters well in advance to avoid the mismatch of requirements at
borders.
7. All borders should be same requirements for clearing the goods including all
chemicals which are exported from Oman to GCC.
29
8. In case of Bayan system is not working an alternative manual system should
be available for exporters which can be regularised when the system on.
9. A separate window should be provided for quick customs clearance for highly
sensitive chemicals to make safe environment and avoiding unsafe acts at
borders.
10.Approval authorities should be available 24 hours including weekends to
achieve maximum exports and maximum benefits to Oman economy.
11.Advance custom clearance process should be provided for manufacturers as
they are facing the problem of exporting the products during holidays.
12.Custom department is clearing customs for each trip separately, a new
system for a bulk consignment of more than one trips should be introduced to
help the transporters for saving their time and money.
Bibliography,
https://www.customs.gov.om/portal/en/esw/
https://www.customs.gov.om/esw/jsf/secure/esw/common/Login.xhtml
file:///C:/Users/pc/Downloads/Oman.pdf
FIDI Global Alliance
DOING BUSINESS IN OMAN
Appendix
(a) Questionnaire
(Survey on Oman borders)
I am doing a research about chemicals materials customs clearance at Oman borders
(export). In this survey I want to figure out level of performance during customs clearance of
chemicals in Oman borders. Also I want to know the impact of people who are involved in
arranging customs clearance of chemicals materials such as: sellers, ship agents,
transporters etc.
30
1. The service level of clearing chemical materials at borders is very good.
a. Strongly agree
b. Agree
c. Neither agrees nor disagrees
d. Disagree
e. Strongly disagree
2. As a user of Oman borders, do you think their service conducted correctly and
on time?
a. Yes
b. No
3. The users have proper guidance when faced with problems?
a. Strongly agree
b. Agree
c. Neither agrees nor disagrees
d. Disagree
e. Strongly disagree
4. Do you think ROP provides a safe environment for users?
a. Yes
b. No
5. ROP’s instructions are clear and easy to follow and understand?
a. Strongly agree
b. Agree
c. Neither agrees nor disagrees
d. Disagree
e. Strongly disagree
6. Are the inspectors available 24 hours for inspecting chemicals for customs
clearance?
a. Yes
b. No
7. The procedures of clearing chemicals at Oman borders are same in all borders
of Oman?
a. Strongly agree
b. Agree
c. Neither agrees nor disagrees
d. Disagree
e. Strongly disagree
8. Do you think time spent for each clearing chemicals at Oman borders is
sufficient?
a. Strongly agree
b. Agree
c. Neither agrees nor disagrees
d. Disagree
e. Strongly disagree
9. Is the delay during clearing chemicals accruing cost to users extra?
a. Yes
b. No
10.Is there an alternative and quick solution when BAYAN system stuck?
a. Yes
b. No
31
11.What are your suggestions to improve customs clearance of chemicals at
borders?
----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
(b) Interview Questions
Dear madam put interview questions.

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PST -Customs-Oman Borders

  • 1. 0 CUSTOM CLERANCE OF CHEMICAL MATERIAL AT OMAN BORDERS (EXPORT)
  • 2. 1 Preface This project report is about the study on customs clearance at Oman borders for Export of chemical materials from various border of Sultanate of Oman to GCC Countries. The study of is based on the objective to find out the difficulties faced by various Originations/Exporters in custom clearance for exporting their products to GCC countries; this study will help out to originations/Exporters and custom department to understand each other for working together for the benefit of Oman. The study is completed in Soahr and based on feedback from local customers in day to day problems faced by the exporters and transporters.
  • 3. 2 Table of Contents Sr. No. Particulars Page No. Chapter 1.0 Introduction 07 1.1 Statement of the Problem 07 1.2 Theoretical Concept and Framework 07 1.3 Details of Study 13 Chapter 2.0 Methodology 14 2.1 Research Design 15 2.2 Sample Design 15 2.3 Objectives of the Study 17 2.4 Importance and Scope of the Study 17 2.5 Limitations of the Study 17 Chapter 3.0 Data Analysis Process 19 3.1 Descriptive analysis of data 19 3.2 Summary of Analysis of data 24 Chapter 4.0 Conclusions 29 4.1 recommendations 30 Bibliography 31 Appendix 31 (a) Questionnaire 32 (b) Interview Questions
  • 4. 3 List of Tables Sr. No. Particulars Page No. Table 1.0 Total Product Sold by OFCC in One year to UAE 08 Table 3.0 Answers for Question no. 1 19 3.1 Answers for Question no. 2 20 3.2 Answers for Question no. 3 20 3.3 Answers for Question no. 4 21 3.4 Answers for Question no. 5 21 3.5 Answers for Question no. 6 22 3.6 Answers for Question no. 7 22 3.7 Answers for Question no. 8 23 3.8 Answers for Question no. 9 23 3.9 Answers for Question no. 10 24 3.10 Summary- A: - for questions 24 3.11 Summary- B: - for questions 27
  • 5. 4 List of Diagrams Sr. No. Particulars Page No. Diagram 1.0 Export Chemicals from Oman to GCC 07 1.1 OFCC Customers in UAE 08 1.2 Process of Custom Clearance 11 1.3 Parties Involved in Custom Clearance 12 1.4 Bayan System Login and Declaration Processing 12 Diagram 3.0 Summary of Results of Questions A 26 3.1 Summary of Results of Questions B 28 Abbreviations: 1.1 MECA : Ministry of Environment and Climate Affairs 1.2 ROP : Royal Oman Police 1.3 OFCC : Oman Formaldehyde Chemical Company LLC 1.4 KR : Khimji Ramadas LLC 1.5 MHD : Mohsin Haider Darwesh LLC
  • 6. 5 Chapter 1: Introduction The report is based on the study on customs clearance rules, regulations, difficulties, methods procedures followed at Oman borders during Export of chemical materials from various border of Sultanate of Oman to GCC Countries. The study of this report is based on the objective to find out the difficulties faced by various originations in custom clearance for exporting their products, a detailed study on procedures and customers problems in clearance of their chemical products is the key area of this report. 1.1. Statement of the Problem The main problem is the complicated procedures of clearing chemical materials at Oman borders during exported to GCC countries. In Oman there are around six borders and each one used different rules and procedures for clearing chemical materials which make the process of exporting chemicals complicated and not smooth. Also the existence of non-qualified staff at borders to resolve and improvethe system of controlling the clearing process, If we solve this problem it will helps Omanmanufacturing and trading Companies to exportmaterials smoothly, exporting companies will save time and money, and companies will not lose their customers, due to custom rules and regulations and it will help in increasing the profit margins of originations, it will also help to reduce theproduct exporting expenses, it will reduce congestion of trucks at borders, and it will reduce work load to all concerned in export chain. 1.2. Theoretical Concept and Framework: Export Chemicals from Oman to GCC Oman is manufacturing industrial chemicals which are used in various industries in GCC. Some chemicals names are as below: Diagram: 1.0
  • 7. 6 The manufacturers of these chemicals are Oman Methanol Company LLC and Oman Formaldehyde Chemical Company LLC. We selected Oman Formaldehyde Chemical Company as base of study of this report. We discussed in details about the problems faced by Oman Formaldehyde during its products exported to GCC countries.Oman Formaldehyde Chemical Company has below customers in UAE: OFCC Customers in UAE: Diagram: 1.1 Total Product Sold by OFCC in One year to UAE: - Table: 1.0 Products Yearly Qty MT Trips per Year Formaldehyde- AF 37% 14,500 600 Urea Formaldehyde -UFC 85% 8,750 350 Total 23,250 950 Our report will be focused on the difficulties of customs Clarence faced by Oman Formaldehyde during export to these customers, in background OFCC is facing many difficulties in custom clearance front. We will start with of chemical clearance at borders. Process of Chemical Clearance:- Oman Custom department has issued a set of procedures for clearing the chemicals as below: Importing could be defined as the process of taking goods to the Sultanate through Customs offices by land, sea or air according to the determined laws in this regard. • Tytan Organic Chemicals • KMT Polymers FZE • Technical Industries • Sichem Industries • Emochem Industries Product AF 37% • Ruwais Fertilizer (FERTIL) • Al badia Middle East Chemicals Product UFC 85%
  • 8. 7 Custom Clearance can be done through an authorised agent using the Bayan System which is online application for custom clearance. It’s an electronic customs data system for all customs procedures and operations enabling customers to finalize all customs interactions electronically as per rules and regulations of customs Bayan system components: 1. Registration of commercial partner system: through providing a code 2. Manifest system: to connect systems of air, marine cargo by customs system. 3. Customs declaration registration 4. Estimating taxes and fees system: calculating due fees and taxes. 5. Refunding system: to refund undue taxes. 6. Finance affairs systems: to manage finance processes and affairs. 7. Exemption system: to monitor customs exemptions. 8. Cottas management system: to control goods with limited cottas. 9. Guarantee management system: to control different types of guarantees. 10. Customs value system: 11. Customs tariff system: to identify terms of goods tariffs. 12. Inspection system: inspection. 13. Mobile application system: to send inspection results. 14. Goods releasing system: to release goods completed procedures. 15. Departure permit system: to issue a departure permit. 16. Arrival registration system: registration of carrier information. 17. Vehicles movement management system: registration of exit/entering of vehicles. 18. Issues system: to register and follow up issues and judgments. 19. System management: codes management. 20. Economic operator system: golden list. 21. Customs warehouses system: to control what is entering and exiting from them. 22. Customs auditing system: to audit all financial and procedures of all customs 23. Free zones system: to control imported and exported goods. 24. Auctions system: to sell neglected and confiscated goods. 25. Supporting decision making system: to provide with information. 26. Statistics reporting system: to organize and issuing statistics reports.
  • 9. 8 Aims of the Bayan system:- 1. To reinforce control over security, health and environment of imports and exports 2. Connecting all bodies of public/private sectors with customs 3. Computerization of all customs procedures and financial, banking processes. 4. Decreasing expenses of importation and exportation operations 5. To up scaling the level of the Sultanate of Oman at the international circles 6. To encourage importers and exporters to use Omani seaports. 7. Encourage national and international investments. 8. Provide rapid facilitation and electronic services for trade community in real time. 9. Present accurate statistics, and analysis for international trade to enable investors 10. To combat trade counterfeiting. 11. To establish electronic data base for all customs, security, health, and risks 12. Unifying customs procedures to be achieved in less time. 13. To limit using paper documents. 14. To apply right roles of value agreement 15. Statistics information exactness 16. Providing detailed information of all imported and exported goods. 17. Quick providing and publication of statistics information. 18. Analyse information and identifying statistics and economic indicators. 19. Using information outcomes in fields of concerned studies and researches. 20. To ease comparisons between Oman exports and that of the other countries. 21. Present accurate information for feasibility studies of investors 22. To encourage foreign and local investments to establish local industries 23. Support auditing of customs transactions processes, collecting due customs 24. Approve the real value of goods according to international value agreement. 25. Providing preferential information about all types of customs exemptions 26. Supporting customs refunding system and guarantees. 27. Issuing licenses and permits electronically to facilitate and fastening 28. Stop using paper documents which limit and stop case of falsification. 29. Pre-arrival information electronically will help to audit and identifying risks, 30. Working with electronic manifest between directorate general of customs and fright agents and establishments work at seaports and airport services.
  • 10. 9 Bayan systems importance:- 1. To dispense with paper- documents. 2. No need to liaise separately with relevant bodies. 3. Possibility of pre- arrival releasing. 4. Unifying procedures, equality and transparency in treatment. 5. Electronic payments. 6. Risk management. 7. Access to accurate statistical data and information. 8. Avoids repetition of data. 9. Saves time, effort and money. 10. To raise economic status of Sultanate of Oman. Documents required for Chemical Export Clearance through Bayan System:- 1. A copy from the export invoice. 2. Packing lists 3. Environment Permit form MECA 4. An application letter for the export of material 5. Filling in the Export declaration and form for clearing, classifying the goods according to the Customs procedure. 6. Agents Authorisation through online Bayan system 7. Certificate of manufacturing of product in Oman Process of Custom Clearance:- Diagram: 1.2 Submitting Documentsto CustomAgent Agentwill logintoBayan Systemand will fill the details Printingthe Detailsof Customs Bayan Application Inspectionof Goodsby Chemical Inspector Paymentof CustomDuty to Oman Customs
  • 11. 10 Parties Involved in Custom Clearance: Diagram: 1.3 Bayan System Login and Declaration Processing:- Diagram: 1.4 Manufacturer/ Supplier Customs-Agents Oman Customs MECA Transporter -Logistics ROP
  • 12. 11 Declaration processing e-Service enables the Importer/Exporter (or their authorized agent) of goods to declare and clear the goods with Directorate General of Customs. The declaration can be made under the following regimes and declaration types: Re-Import Temporary Import Statistical Import Import to and from Bonded Warehouse Import to and from Free zone / Duty-free Parcel Import / Express Courier Personal Imports Export Re-export Temporary Export Export to and from Bonded Warehouse Export to and from Free zone / Duty-free 1.3 Details of study: As Custom department has provided an advance system for custom clearance, but it is noticed the actual difficulties faced by exporters and manufacturers is based on implementation of the system process. The real problem in customs is long ques of trucks standing and waiting for their turn for customs. No timely inspection of goods is available. Scanning facilities for empty tanks at borders is not available 24 hours. Inspection of vehicles at border is not available full time. One more issue is related of chemicals they are highly dangerous products, they should be given preference at borders and should be provided separately safety and preference in clearing the chemicals as they have shelf life and some time timely delivery to customers is more important as customers are losing their production due to late delivery of chemicals. Delay in custom clearance have another impact on transportation system, supplier has to deployed more vehicles for schedule deliveries to cover the order in time. Keeping all above factors in mind the report will highlight the issues of customs and will try to find solution for fast customs clearance at borders keeping in mind for economic growth and industrial growth in Sultanate of Oman.
  • 13. 12 Chapter 2: Research Methodology 2.0 Research Methodology It’s a way of systematic representation of research or any other problem. It is a written game plan for conducting research. It tends to describe the step taken by a researcher in studying the research problem along with a logical background. It tends to describe methodology for solution of the problem that has been taken for the purpose of study this project focuses on the methodology for technique used for the collection, classification & tabulation of the data. This plan throws light on the research problem, the objective of the study & Limitation of the study. Therefore, In order to solve a problem, it is necessary to design a Research Methodology for problem as the same way differs from problem to problem. Type of Research Research methodology is a way to systematic solve the Research Problem. It is a procedure, which is followed step by step to solve a particular research problem. There are basically four types of researches: Explorative Research Descriptive Research Diagnostic Research Hypothesis Testing Research The present project is Descriptive in nature. It is done to poetry accurately the characteristics of a particular individual situation or a group. The major purpose of the descriptive research is the description of the state of the affairs as it exists at resent. The main characteristics of this method are that the researcher has no control over the variables; he can only report what has happened or what is happening.
  • 14. 13 2.1. Research Design As my research project is about the difficulties in custom clearance at borders in Sultanate of Oman accordingly first of all the various objectives of the project were specified and accordingly the questionnaire and other documents are designed to clear the objective of research. 2.2. Sample Design The second step in designing the project work is the preparation of list of need information. There is basic information on which the research project is to structure. In this project various information’s is headed in starting of the project. These are as follows:- Q: What is the study about? Ans: A study on customs clearance at Oman borders during Export of chemicals. Q. Why is the study being made? Ans: To understand the difficulties of exporters faced at various borders. Q. Where will the study be carried out? Ans: Sohar Al Batinah, Oman Only. Q. What type of data is required? Ans: Primary as well as Secondary Q. Where can the required data are found? Ans: Primary Data through questionnaire from the company staff & secondary data through local industry, internet, magazines, newspaper etc. The question was asked about the difficulties of customs clearance at various borders and related the major attention was kept on the exporter’s problems how to make it easy to export from Oman borders.
  • 15. 14 Selecting the sample size: Taking the sample of the study was not an easy task. The objective and the limitation of the study have to be kept in mind before deciding about the sample type. In the sample type all departments have been covered. Basically the one exporter company is selected and questionnaire is distributed in more than 2 companies to get the actual problem during the research. In Sample 5 various offices were selected and questions asked to these concerned staffs- Data Collection Methods: During the data collection process a questionnaire was made for the collection of the data from the three companies personally. Because in the research project both primary as well as secondary data is required so primary data was collected with the help of the questionnaires, Secondary data is collected from Website of Customs Department. The following types of question were asked: A: Questions with two possible answers- Yes or No. B: Questions with multiple possible answers says 1. Strongly agree 2. Agree 3. Neither agrees nor disagrees 4. Disagree 5. Strongly disagree A list of Questions asked is as below: 1. The service level of clearing chemical materials at borders is very good. 2. As a user of Oman borders, do you think their service conducted correctly and on time? 3. The users have proper guidance when faced with problems? 4. Do you think ROP provides a safe environment for users? 5. ROP’s instructions are clear and easy to follow and understand?
  • 16. 15 6. Are the inspectors available 24 hours for inspecting chemicals for customs clearance? 7. The procedures of clearing chemicals at Oman borders are same in all borders of Oman? 8. Do you think time spent for each clearing chemicals at Oman borders is sufficient? 9. Is the delay during clearing chemicals accruing cost to users extra? 10.Is there an alternative and quick solution when BAYAN system stuck? 11.What are your suggestions to improve customs clearance of chemicals at borders? 2.3. Objectives of the Study: The report is based on Objective to get a solution for exporters to avoid the delay in custom clearance at all Oman borders during export the Chemicals to GCC countries. Keeping in mind the objective the report is clear to address the issue of customs clearance process should be improved to achieve the objective of maximum export from Oman to GCC countries to get the economic growth of country. 2.4. Importance and Scope of the Study: The importance of study is to provide a solution to various originations to support them to sell their products to GCC in time as per customer’s requirements, it has major importune to improve country economic situation by maximum exports as result getting maximum revere to Sultanate of Oman. More exports will always improve the country economic situation. With a perfect service in customs at Oman borders will improve the exports and will generate the revenue for Sultanate of Oman, and its growth. It will provide more business and employment opportunities to Sultanate of Oman. 2.5. Limitations of the Study:  Study is limited to export of Chemical materials to GCC  Study is limited t to Sohar Oman  Visits are scheduled to Hatta Border in Oman, Other borders are not visited
  • 17. 16  Questions were asked to some limited companies in Soahr.  The research is based on collected data and the researcher is not responsible for any wrong inference drawn due to incorrect filling of the questionnaire by the respondent.  The method of result is also limited to the reliability of method of investigation, measurement and analysis of data.  Custom Officers were very busy in day to day operations and put very less efforts on survey.  Companies Staff was little hesitated and not fully interested in filling questionnaire properly.  Limited Time for research  Management kept business secrets as hidden and not to disclose it in any cost. Keeping all above limitation with data providers this report has limitations of total in depth and results may vary if more detailed data is answered by concerned people.
  • 18. 17 Chapter 3: Data Analysis & Interpretation 3.0 Data Analysis Process: Without a proper analysis of data the result cannot be achieved. After the survey work was over & the data had been collected the analysis of the data was must & its graphical representation was needed. So after the data collection process step by step analysis of data was the project survey work was carried out in Sohar Sultanate of Oman and we found a proper response for our survey, result is analysed with tools of analysis with tables and charts. 3.1 Descriptive analysis of data: Questionnaire was send to four companies located in Soahr Al Batinah region, all four companies has replied, based on the replies from the companies a detailed analysis of replies is analysed in tables and then it is summarised in charts and results has been interpreted as below- Based on Questionnaire answers from research is as per below tables:- 1. The service level of clearing chemical materials at borders is very good. a. Strongly agree b. Agree c. Neither agrees nor disagrees d. Disagree e. Strongly disagree Table: 3.0 Answers for Question no. 1 S R Parties a b c d e Remarks 1 OFCC √ Production Co. 2 Khimji Ramadas √ Custom Agent 3 Sea Safe Trading √ Custom Agent 4 Rodat Al Reef Trading √ Transporter Total Answers 0 2 1 1 0
  • 19. 18 2. As a user of Oman borders, do you think their service conducted correctly and on time? a. Yes b. No Table: 3.1 Answers for Question no. 2 S R Parties a b Remarks 1 OFCC √ Production Co. 2 Khimji Ramadas √ Custom Agent 3 Sea Safe Trading √ Custom Agent 4 Rodat Al Reef Trading √ Transporter Total Answers 0 4 3. The users have proper guidance when faced with problems? a. Strongly agree b. Agree c. Neither agrees nor disagrees d. Disagree e. Strongly disagree Table: 3.2 Answers for Question no. 3 S R Parties a b c d e Remarks 1 OFCC √ Production Co. 2 Khimji Ramadas √ Custom Agent 3 Sea Safe Trading √ Custom Agent 4 Rodat Al Reef Trading √ Transporter Total Answers 0 0 2 1 1
  • 20. 19 4. Do you think ROP provides a safe environment for users? a. Yes b. No Table: 3.3 Answers for Question no. 4 S R Parties a b Remarks 1 OFCC √ Production Co. 2 Khimji Ramadas √ Custom Agent 3 Sea Safe Trading √ Custom Agent 4 Rodat Al Reef Trading √ Transporter Total Answers 1 3 5. ROP’s instructions are clear and easy to follow and understand? a. Strongly agree b. Agree c. Neither agrees nor disagrees d. Disagree e. Strongly disagree Table: 3.4 Answers for Question no. 5 S R Parties a b c d e Remarks 1 OFCC √ Production Co. 2 Khimji Ramadas √ Custom Agent 3 Sea Safe Trading √ Custom Agent 4 Rodat Al Reef Trading √ Transporter Total Answers 0 0 1 2 1
  • 21. 20 6. Are the inspectors available 24 hours for inspecting chemicals for customs clearance? a. Yes b. No Table: 3.5 Answers for Question no. 6 S R Parties a b Remarks 1 OFCC √ Production Co. 2 Khimji Ramadas √ Custom Agent 3 Sea Safe Trading √ Custom Agent 4 Rodat Al Reef Trading √ Transporter Total Answers 0 4 7. The procedures of clearing chemicals at Oman borders are same in all borders of Oman? a. Strongly agree b. Agree c. Neither agrees nor disagrees d. Disagree e. Strongly disagree Table 3.6 Answers for Question no. 7 S R Parties a b c d e Remarks 1 OFCC √ Production Co. 2 Khimji Ramadas √ Custom Agent 3 Sea Safe Trading √ Custom Agent 4 Rodat Al Reef Trading √ Transporter Total Answers 0 0 1 3 0
  • 22. 21 8. Do you think time spent for each clearing chemicals at Oman borders is sufficient? a. Strongly agree b. Agree c. Neither agrees nor disagrees d. Disagree e. Strongly disagree Table: 3.7 Answers for Question no. 8 S R Parties a b c d e Remarks 1 OFCC √ Production Co. 2 Khimji Ramadas √ Custom Agent 3 Sea Safe Trading √ Custom Agent 4 Rodat Al Reef Trading √ Transporter Total Answers 0 0 0 1 3 9. Is the delay during clearing chemicals accruing cost to users extra? a. Yes b. No Table: 3.8 Answers for Question no. 9 S R Parties a b Remarks 1 OFCC √ Production Co. 2 Khimji Ramadas √ Custom Agent 3 Sea Safe Trading √ Custom Agent 4 Rodat Al Reef Trading √ Transporter Total Answers 4 0
  • 23. 22 10. Is there an alternative and quick solution when BAYAN system stuck? a. Yes b. No Table 3.9 Answers for Question no. 10 S R Parties a b Remarks 1 OFCC √ Production Co. 2 Khimji Ramadas √ Custom Agent 3 Sea Safe Trading √ Custom Agent 4 Rodat Al Reef Trading √ Transporter Total Answers 0 4 3.2 Summary of Analysis of data: Summary A:- The summarised results for questions asked to OFCC, Khimji Ramadas, Sea Safe Trading, Rodat Al Reef Trading for below Points are as per below table a. Strongly agree , b. Agree c. Neither agrees nor disagrees d. Disagree e. Strongly disagree Table 3.10 Summary- A: - for questions as per above answers- SR. Answers a b c d e Remarks on Results Q-1 Results as per table 0 2 1 1 0 Service Level is average, even some exporters says not good need improvement in services Q-3 Results as per table 0 0 2 1 1 No Guidance, Sudden change in rules without prior notice, rules are frequently changing for exports, Custom department is not clarifying in rules to exporters once the rule is changed exporters has to get it clarified
  • 24. 23 Q-5 Results as per table 0 0 1 2 1 ROP guidelines are not clear for making necessary documents for export, Each officer have different views on change of rules, exporters has to reach at border and sudden change is announced without any guidance Q-7 Results as per table 0 0 1 3 0 Procedures for custom clearance for chemicals is not same, some borders inspection of chemicals is not available. Some borders Scanners for ISO tanks is not available, Some borders chemical clearance facility is not available. Q-8 Results as per table 0 0 0 1 3 Custom department is taking its own time which is not defined, some time it takes 5- 10 hours for custom clearance at borders, and it is difficult for transporters to wait long time at borders for their turn. It costs more fuel and loss in revenue. Total Results 0 2 5 8 5 In an average the results are not in favour of exporters, Customs and ROP rules are only favouring to their own benefits, the rules should be changed in favour of exporters and should be easy to follow and should be communicated to customer in time and rules should be explained to customers
  • 25. 24 A Graphical view of answers for Summary A: A total 20 points were allotted to various answers results are as below a. Strongly agree = 0 b. Agree = 2 c. Neither agrees nor disagrees = 5 d. Disagree = 8 e. Strongly disagree = 5 Diagram: 3.0 0 2 5 8 5 Sumamry of results for various answersfrom Exporters, Agents and Transporters Strongly Agree Agree Nither Agree nor Disagree Disagree Strongly Disagree
  • 26. 25 Summary B:- The summarised results for questions asked to OFCC, Khimji Ramadas, Sea Safe Trading, Rodat Al Reef Trading for below Points are as per below table a. Yes b. No Table 3.11 Summary- A: - for questions as per above answers- SR. Answers a b Remarks Q-2 Results as per table 0 4 Custom clearance service is not conducted in time; it is always delayed due to many reasons, Inspection, Bayan System not workings, Approving officers not available in time, etc. Q-4 Results as per table 1 3 Safe environment for exporters is not available. Chemical is always dangerous, it should be cleared in time to make environment safe and for safety of transporters, due to delay in Clarence its create unsafe environment Q-6 Results as per table 0 4 Chemical Inspectors are not available at borders on 24 hours duty. Without inspection custom is not cleared by Custom department. Research result shows due to not availability of inspectors it is delayed the shipment clearance at borders. Q-9 Results as per table 4 0 Delay in custom clearance is always costing to exporters and transporters. Exporters has to put extra transport facilities to supply the required orders from their customers in GCC, it results extra cost of transport. Transporters has to put more fuel as wastage of fuel due to waiting time at borders chemicals need temperatures to maintain and vehicles should be in start position for maintaining the chemical temperatures, it costs extra fuel costs and wastage of country resources
  • 27. 26 Q- 10 Results as per table 0 4 ROP has not provided and alternative quick system when Bayan system is stuck. All work is stopped and waiting for system to start always delays in custom clearance. Total Results 5 15 Results are not in favour of custom department. It shows a quick need in improvement in practical level at various activities at borders is required, ROP should provide more facilities at borders and should be improved the systems to avoid delays and more inspection facilities should be provided at borders to avoid the delays and for safety of environment and more exports from Oman to GCC it will improve the economy of Oman. Summary B:- A total 20 points were allotted to various answers results are as below Table: 3.13 a. Yes = 5 b. No = 15 Diagram: 3.1 5 15 Sumamry of results for answersfrom exporters, CustomAgents and Transporters yes NO
  • 28. 27 Chapter 4: Conclusions and recommendations 4.1 Conclusions Based on survey results the following conclusions are drawn: 1. Custom department services are not good, it can be weighted as not satisfactory for exporters and transporters 2. Custom department is not issuing proper guidance to exporters and transporters, it is observed from feedback that sudden change in rules are frequently happening and no proper information is published and communicated to end users. 3. Customs and ROP guidelines are not clear for exporters and transporters, In each Shift of ROP officers has different view for same problem and no fix solution is provided 4. Custom clearance Procedures are not same, some borders inspection of chemicals is not available. Some borders Scanners for ISO tanks is not available, some borders chemical clearance facility is not available. 5. Always a delay is observed in custom clearance by Custom department, Time schedule is not defined by department, some time it takes 5- 10 hours for custom clearance at borders, and it is difficult for transporters to wait long time at borders for their turn. 6. Export Custom clearance service is not available in time; it is always delayed due to many reasons, Chemical Inspection, Online Bayan System not workings, Approving officers not available in time 7. Chemical Inspectors are not available at borders on 24 hours duty. Without inspection custom is not cleared by Custom department. Research result shows due to not availability of inspectors it is delayed the shipment clearance at borders. 8. Delay in custom clearance is always costing to exporters and transporters. Exporters has to put extra transport facilities to supply the required orders from their customers in GCC, it results extra cost of transport. Transporters has to put more fuel as wastage of fuel due to waiting time at borders
  • 29. 28 chemicals need temperatures to maintain and vehicles should be in start position for maintaining the chemical temperatures, it costs extra fuel costs and wastage of country resources 9. ROP has not provided and alternative quick system when Bayan system is stuck. All work is stopped and waiting for system to start always delays in custom clearance. 10.Procedures for custom clearance for chemicals is not same, some borders inspection of chemicals is not available. Some borders Scanners for ISO tanks is not available, some borders chemical clearance facility is not available. 4.2 Recommendations Based on findings from the analysis of data following recommendation are suggested: 1. Bayan system should be supported by high IT solutions and hardwires, it will be helpful in providing full time services to exporters and all necessary parties. 2. Chemical Inspection facilities should be provided on all the borders for 24 hours, so transporters can use all borders to export the materials, it will reduce the load and waiting time on current borders. 3. Empty Chemical ISO tanks scanning facilities should be provided on all the borders. 4. More agents should be authorised at borders to avoid overcrowded situation at borders. 5. Agents should be properly trained for Bayan System; a special trading programme should be introduced by Custom Department. 6. Changes of rules and regulations should be informed to exporters and transporters well in advance to avoid the mismatch of requirements at borders. 7. All borders should be same requirements for clearing the goods including all chemicals which are exported from Oman to GCC.
  • 30. 29 8. In case of Bayan system is not working an alternative manual system should be available for exporters which can be regularised when the system on. 9. A separate window should be provided for quick customs clearance for highly sensitive chemicals to make safe environment and avoiding unsafe acts at borders. 10.Approval authorities should be available 24 hours including weekends to achieve maximum exports and maximum benefits to Oman economy. 11.Advance custom clearance process should be provided for manufacturers as they are facing the problem of exporting the products during holidays. 12.Custom department is clearing customs for each trip separately, a new system for a bulk consignment of more than one trips should be introduced to help the transporters for saving their time and money. Bibliography, https://www.customs.gov.om/portal/en/esw/ https://www.customs.gov.om/esw/jsf/secure/esw/common/Login.xhtml file:///C:/Users/pc/Downloads/Oman.pdf FIDI Global Alliance DOING BUSINESS IN OMAN Appendix (a) Questionnaire (Survey on Oman borders) I am doing a research about chemicals materials customs clearance at Oman borders (export). In this survey I want to figure out level of performance during customs clearance of chemicals in Oman borders. Also I want to know the impact of people who are involved in arranging customs clearance of chemicals materials such as: sellers, ship agents, transporters etc.
  • 31. 30 1. The service level of clearing chemical materials at borders is very good. a. Strongly agree b. Agree c. Neither agrees nor disagrees d. Disagree e. Strongly disagree 2. As a user of Oman borders, do you think their service conducted correctly and on time? a. Yes b. No 3. The users have proper guidance when faced with problems? a. Strongly agree b. Agree c. Neither agrees nor disagrees d. Disagree e. Strongly disagree 4. Do you think ROP provides a safe environment for users? a. Yes b. No 5. ROP’s instructions are clear and easy to follow and understand? a. Strongly agree b. Agree c. Neither agrees nor disagrees d. Disagree e. Strongly disagree 6. Are the inspectors available 24 hours for inspecting chemicals for customs clearance? a. Yes b. No 7. The procedures of clearing chemicals at Oman borders are same in all borders of Oman? a. Strongly agree b. Agree c. Neither agrees nor disagrees d. Disagree e. Strongly disagree 8. Do you think time spent for each clearing chemicals at Oman borders is sufficient? a. Strongly agree b. Agree c. Neither agrees nor disagrees d. Disagree e. Strongly disagree 9. Is the delay during clearing chemicals accruing cost to users extra? a. Yes b. No 10.Is there an alternative and quick solution when BAYAN system stuck? a. Yes b. No
  • 32. 31 11.What are your suggestions to improve customs clearance of chemicals at borders? ---------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------- (b) Interview Questions Dear madam put interview questions.