CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Cameroon generally applies CEMAC decisions with regard to customs. Barring a few exceptions, its customs tariffs are always based on the CEMAC Common External Tariff (CET); all the rates are ad valorem. The simple average customs tariff is 19.1 per cent. Cameroon binds tariffs at a ceiling rate of 80 per cent for agricultural products and 50 per cent for three non-agricultural products, i.e. only 14.0 per cent of tariff lines. Other tariffs and taxes are bound at 80, 150 or 230 per cent according to product category. The taxable base that Cameroon uses for value added tax (VAT) on imports creates a problem of compatibility with the principle of national treatment (Wholey and Hatry, 1992).

Cameroon’s authorities began a customs administration reform and modernization programme in 1999, with the help of the IMF and the World Bank. The main steps taken include starting up a Single Window for Foreign Trade Operations and securing the PAGODE system (a semicomputerized customs operations management system set up in 1984). In 2002, Cameroon decided gradually to replace the PAGODE system by the Automated Customs System (ASYCUDA ++). The new system came on stream on 1 January 2007 in the Autonomous Port of Douala (PAD) and in other customs offices in the country. ASYCUDA is supposed to reduce customs clearance times substantially, increase customs revenues, provide foreign trade statistics, help to combat customs fraud, smuggling and counterfeiting. A National Committee coordinating operations to combat fraud, smuggling and counterfeiting has been operational since 2005 and coordinates the activities of regional committees (World Bank, 2005).

 In 2007, Cameroon Customs launched a reform and modernisation initiative. In particular, the reform was intended to reduce corruption which had long been a constant stain on the reputation of the administration and hindered fulfillment of its mandates (Cantens et al., 2008). The reform began with the installation of ASYCUDA, a Customs clearance system, which would enable the administration to not only track the processing of each consignment, but also to measure a substantial number of criteria relevant to the reform, such as compliance with the deadline for recording the manifest by consignees.

For almost two years, upper management and front-line officers shared the same reality thanks to ‘figures’ (performance indicators) to measure how the reforms initiated by the former were applied by the latter. While this initial quantification phase bore fruit, its impact gradually declined.

1.2 DELIMITION OF STUDY

1.2.1 SPATIAL:

The Port Authority of Douala being a para-public institution has the mission of managing the coordination of services available in Douala-Bonabéri as well as the marketing strategy in the port.

    The city of Douala is located in the estuary of Wouri, 50 km from the sea. It has been a zone of commercial activity since the 19th century where work was carried out to enable trade between coastal inhabitants and traders from Hamburg and Bremen.

1.2.2 TIME:

This research went on for a period of 5 months; specifically, during the months February, March, April, May and June

1.2.3 THEME:

An appraisal of customs procedures on imported goods in Cameroon. Case study of Douala port one (1)

1.3 PROBLEM STATEMENT:

Since 2010 quantification has become prescriptive in that objectives have been set for the customs officers. More specifically, Cameroon Customs introduced a system of individual performance contracts to comprehensively measure the actions and behaviours of customs officers operating at two Douala port bureaus using indicators extracted from ASYCUDA. The Cameroon Customs bureaus that are the experimental group have generated better results than the control group on matters such as revenue collection, reducing corruption, and trade facilitation. However, the custom procedures on imported goods in Cameroon especially in Douala port 1 are still facing challenges on the procedures to properly handle imported goods in Cameroon whose revenue helps to boost the economy. The improvement in at the level of implementation of custom laws that protect this special activity needs to be reinforced in other for the sector carryout a clean an uncorrupted procedure which will affect the port from carrying out its procedures of imported goods in an orderly manner. This all put together explains why the topic “An Appraisal of Customs Procedures on Imported Goods in Cameroon. The Case of Douala Port 1” to properly make an appraisal on how the custom procedures are handles in Douala Port 1.

1.4 RESEARCH QUESTIONS

The following main and specific questions have been the issue of concern in this study;

1.4.1 Main Research Question

What are the different Customs Procedures implemented at Douala Port 1on Imported Goods in Cameroon?

1.4.2 Specific questions:

1. How can custom procedures be used as a tool, to make influence on imports at the port of Douala?
2. Which challenges do the Cameroon custom procedures influence on imports in Douala?
3. What measures can be taken to avoid the challenges faced by the Cameroon customs, on imported goods in Douala?

1.5 RESEARCH OBJECTIVES:

1.5.1 Main objective:

To investigate the different Customs Procedures implemented at Douala Port 1on Imported Goods in Cameroon.

1.5.2 Specific objectives:

1) To examine the extent to which custom procedures have influenced imports in Douala.

2) To explore the challenges Faced by custom procedures on imported goods in Douala.

3) To examine measures taken to subdue the challenges faced by Cameroon customs in Douala on imports.