ABSTRACT

Information technology (IT) is the broad system concerned with all aspects of managing and processing information especially within a large organization or company including technologies, internet and even phones. So electronic customs procedures are a system which replaces all written declarations and administrative files with electronic messages. This simplifies, automates and speeds up customs clearance and processes and reduces too much paperwork and hence after all companies that imports and exports. Clearing has undergone changes in the port of Douala from the period of PAGODE that was less automated to CAMCIS which is more automated. CAMCIS is The Cameroon Customs information system began its operations on the 1st of October 2019, and began its operation in the Douala Seaport on the 6th of April 2020. The objective to this research was to bring out the positive, negative as well as established benefits of electronic customs procedures to the company. The methods used for this research was population sampling, primary and secondary data collection, a qualitative methodology that incorporates interviews sessions, observation, focused group discussion and the review of related studies is utilized as a tool and a descriptive design adopted to this study. The researcher used both primary and secondary sources of information to collect data. With the above listed objectives, it showed that electronic customs procedures have greatly impacted shipping activities in the Port of Douala. This justified  most persons said electronic customs procedures has fastened validation, reduces population at customs officers and has encouraged work out of customs offices. From these major findings, it was concluded that the adoption of electronic customs procedures system has had a great impact on the clearing of goods by shipping companies in Cameroon. This explains why most transit companies have been forced to adopt an IT system with internet connectivity to fasten clearing. It was therefore recommended that there should be adequate infrastructure in all ports to increase the wilder use of electronic customs systems.

CHAPTER ONE

1.1 Background Study

Trade facilitation is widely recognized as an essential factor in enhancing competitiveness as it allows for the timely flow of goods and services at low transactions costs, thereby increasing trade flow and Gross domestic product (GDP) (World Bank 2019a). It is for this reason that the international community and regional economic blocs have made significant progress in dismantling barriers to trade reducing tariff and non-tariff barriers which hinders movement of goods across borders. In many countries, companies involved in international trade must prepare and submit large volumes of information and documents to governmental authorities to comply with import, export and transit-related regulatory requirements. Often this information and documentation must to be submitted to several different agencies and addressing this problem is the establishment of the single window federating all relevant government administrations whereby all trade related information need only to be submitted once at a single entry point enhancing the availability and handling of information, expedite and simplify information flows between trade and government which can result in greater harmonization and sharing of relevant data across the world bringing meaningful gains to all parties involved in cross-border trade( United Nation Centre for trade facilitation and electronic business Edition 2020).

Various countries across the world have adopted information communication technology to improve customs service delivery to importers and exporters (OECD, 2011, Tetteh 2012, Msuka 2013, Maranga 2015). The system was successful in reducing trade barriers like quotas and tariffs, and so Germany and neighboring countries are now in a position to turn their attention to other feasible challenges influencing free flow of goods and services across European Union borders. In Asia, customs revenue service system is classified as the best with roles like transport and distribution being much reliant on customs procedures and regulations are actually followed. Customer research agencies have graded the china customs electronic system at 78% efficiency levels.(Alcedo&Cajala 2015).The removal of burdensome customs procedures, harmonization and simplification of customs documents and automation of customs information has been observed to have the greatest impact on reducing trade costs by between 10-18 percent and increasing trade flows across borders (OECD  2018).

International custom electronic service system linkage has become increasingly an important component in Africa business economic hub (keen& Mansour, 2011). The systems have been of significant in the following ways, making predictions, clearing time and increasing transparency with other countries trading with(Wondemagegne 2014). The Republic of South Africa has a good internal customs electronic system that eliminates several complaints originating from clearance of goods(Igbanugo&Gwenigale 2011). Any good customs administration and working system that can offer immediate release based on pre- clearance reliable, timely customs clearance and creates competitive edge in attracting foreign investment and foreign manufacturing, distribution, transportation and third-party logistics companies.

The revenue Authority has installed Rwanda Electronic Single window project which responds to the need of managing its borders more effectively and thereafter facilitate efficient cross-border trade with her neighbours. The country had experienced high transport and freight costs for movement of goods. Inefficient processes and manual border procedures which led to increased delays and poor infrastructure that undermined the country’s competiveness. Therefore, was conceived with the purpose of reducing delays in customs clearance of imports and exports into and from the country. This led to reduction in costs associated with customs clearance costs hence improved quality of service in customs clearance value chain which Rwanda was able to change.

The electronic deposition system is designed to capture all customs entry declaration data, calculate duties and taxes and validate the entry, lodge the entry electronically by connecting seamlessly to the Customs Automated Service(CASE) website and initiate file transfer, receive lodgment confirmation or lodgment rejection with detailed error analysis. Customs procedures in Cameroon suffered from manual operation, corruption and delays in clearance where they left from PAGODE to ASYCUDA, now is Cameroon Customs Information System CAMCIS that is operational, a fully automated electronic customs clearance aimed to reduce face to face engagement amid the Covid-19 pandemic.

CAMCIS was explained by the Minfi Louis Paul Motaze that the new system has three portals, the first is for the customs officers, the second for economic operators and lastly for the public. So CAMCIS is an electronic customs clearance system that integrates the entire customs clearance procedure, it considerably shortens the time needed to carry out import and export procedures while at the same time providing more security for customs duties and taxes.(minfi 2020). Thanks to CAMCIS, users no longer need to go to customs offices to carry out their import-export operations thus saving time and money. Also, this computer system offers free access to the various guides to foreign trade procedures as well as several useful information such as exchange rates, country codes, and currency codes.

Sequence of port clearance operations in the Port of Douala and typical times, (source GUCE) trade facilitation has been at the forefront of trade policy in Cameroon with initiatives and investments aimed at increasing trade performance through improvement of transport infrastructure, removal of corruption and informal practices, modernization of customs administration, reduction of non-tariff trade barriers, improvement of revenue collection performance and border controls and in wider terms reduction of transaction and administrative costs. The modernization of customs administration and introduction of a one-stop shop for clearance procedures(GUCE) have arguably led for example to saving of more than 11 days in the average clearance time. (Raballand 2012).

1.3 Research Questions, Objectives andHypothesis

1.3.1 Main Research Question

What is the impact of electronic customs clearing procedures on goods management by Vision International Holdings?

1.3.1 Specific Research Question

– To what extend have the clearing agents and forwarding agents exploit electronic customs procedures?

– What are the challenges faced in the use of electronic customs clearing procedures and goods management by Vision International Holdings?

– How has the adoption of electronic customs procedures facilitated trade?

1.4 Research objective

This work has the following main and specific objectives

1.4.1 Main objective of the study

The main objective here is to establish the extent to which clearing agents in Vision International Holdings have benefited from electronic customs procedures on goods management.

1.4.2 Specific Research objective

• To identify the negative impact of electronic customs procedures on goods management.
• To study the positive impact of electronic customs procedures on goods management.
• To establish the benefits of electronic customs to a Customs Broker on goods management.