ABSTRACT

This research work intends to bring out the link existing between the role of customs brokers to its clients and custom administration. It seeks in finding out solutions on what can be done to avoid delay posed by customers to brokers in the processing of their shipments and effective communication between the customs broker and importers As a tentative response to our question, we formulated our main hypothesis as follows” Problems such as delay and lack of communication are mitigated when customs brokers and custom administrators works hand in gloves to ensure customers satisfaction when using appropriate administrative policies ”. The study thus has as main objective is to examine the performance of customs brokers on how they impact their clients and customs administrators in the region.The methodology used includes observational, documentary and opinion sampling research procedures. In the course of this process, questionnaire was used as the main research instrument. The research design involved a careful representative sample of 35 stakeholders. The include selected freight forwarders, customs officers, transporters and customs operating in the port of Douala. Data collected were analysed using descriptive statistics method and conclusive interpretation of the findings was done.The findings reviewed that this study was significant meaning customers have an effect on the performance of customs brokers.Following the above findings, it was proposed that to solve the problem of delay, customers should give the right information as containing the content of their shipments or product availability and transit time. The importer should communicate with brokers to avoid situations that may be costly and where penalties may arise.

CHAPTER ONE

GENERAL INTRODUCTION

1.1  Background of the study

Custom broking or custom brokerage firms is a profession that involves the clearing the goods through customs barriers for importers and exporters (usually businesses). Custom brokerage firms facilitate the shipment and delivery of goods across geographical borders for individuals and organization. This involves the preparation of documents and electronic submissions, the calculation and payment of taxes, duties and excises duty and facilitating communication between government authorities, importers and exporters.

 According to custom brokers licensing regulation 2013, “Custom brokers means a person licensed under this regulation to add as agent for the transaction of any business relating to the entry or departure of conveyance, import or export of goods at custom station.

While in the revised Kyoto convention (RKC), a custom broker is any person who deals directly with the customs, exportation, movement or storage of goods. Custom brokers may be employed by or affiliated with freight forwarders, independent businesses or shipping lines, importer, exporter, trade authorities and custom brokerage firms. Custom brokers support traders by providing all necessary documentation or electronic transmission and undertaking formalities related to cargo clearance. Custom brokers are also expected to maintain government interest by ensuring compliance with customs and other regulatory requirements and the collection of appropriate duties, taxes and fees.

As middle-men with legal entities who receive mandates from importers/exporters to conduct customs business on their behalf, custom brokers are expected to keep abreast with legal instruments and to logically interpret and correctly implement these instruments during the customs clearance process of goods.

Consequently, in the custom brokerage/client relationship, they are to assist their clients for each import and export operations with critical business data about the transaction from the country of origin to destination. Advice on transportation options or types or carries and cargo handling and to assist them on exchange rates, custom valuation and proper classification of commodities for the application of taxes and various regulations and cut cost.

In the customs brokers/custom administration relationship, custom brokers must be aware of any potential problem involving every entry items presented in the customs declaration. This includes all factors affecting proper classification, origin, customs valuation, exchange rates and many regulations concerning the calculation of duties, and they must keep track with changes in customs legislation and have an excellent understanding of trade requirements, customs procedures and formalities.

This research work intends to bring out the role of custom brokers to its clients and custom administration which will go a long way to assist its clients and administration.

1.3 Statement of problem

Currently, it has been discovered that delay is on the top among the difficulties customs brokers are experiencing. This is because some customers don’t disseminate or give the right information to custom brokers and it is understood that custom brokers are there to assist and protect their customers. So the brokers cannot succeed to effectively carryout their duties like processing delivery and arrival of their shipments to facilitate the smooth flow of the process. Some of the representative differs that the reasons customers fear to give to give  out the rightful information to custom brokers as per how the content of the goods are is because they might be scared of paying high custom duties and taxes which has a negative effect and consequently leads to delay. When the importer gives the wrong order of information to custom brokers, the importer might pay less as far as custom duties and taxes are concerned. This delay might be due to the negligence and lack of frequent communication between the importer and broker. the impart of this issue will lead to delay in the transportation of articles, delay on delivery and shipment of goods, increase work loads and waste of time. As it is often said, “time is money” .This might be  as a result of custom officers holding the goods at custom borders because what the importer paid as custom duties is not commensurate to the goods and will lead to delay, and when there is delay customers are angry. So this research is out to find solutions on what can be done for customers to be given the right information so as to avoid delay.

1.3 Research questions

1.3.1 Main

To what extend does the effects of clients and custom administration impact customs brokers in the Douala seaport area?

1.3.2 Specific

• Are importers and exporters satisfied with services rendered by custom brokers in the Douala Port?
• How do custom brokers align their nature of work to that of custom administration?
• To what extend do custom brokers and custom administrators influence client import of goods and export of goods?

1.4 Research objectives

1.4.1 Main

The main objective is to examine the performance of customs brokers on how they impact their clients and custom administrators in the Douala seaport.

1.4.2 Specific

• To assess information on client satisfaction in response to administrative procedures with the performance of customs brokers.
• To examine the relationship between custom brokers and customer satisfaction in effect with administrative procedures
• To determine the level at which custom brokers and administrators influence client import and export of goods

1.5 Research hypothesis

a) Null Hypothesis

As concerns this hypothesis, problems (delays, lack of communication/miscommunication, insufficient documents) are NOT mitigated when custom brokers and custom administrators work hand in gloves to ensure customer satisfaction when using appropriate administrative policies.

b) Alternative hypothesis 

As concerns this hypothesis, problems (delays, lack of communication/miscommunication, insufficient documents) are mitigated when custom brokers and custom administrators work hand in gloves to ensure customer satisfaction when using appropriate administrative policies.