CHAPTER ONE: GENERAL INTRODUCTION

1.1 Background of the Study

A recent strand in economic research concerns how intermediaries like merchants facilitate international trade by making it possible for firms unable to handle all trade-related issues by themselves to participate in international markets.

Customs broking or Customs brokerage is a profession that involves the “Clearing” of goods through customs barriers for importers and exporters (usually businesses). This involves the preparation of documents and electronic submissions, the calculation and payment of taxes, duties and excises, and facilitating communication between government authorities, importers and exporters.

Custom brokers may be employed by or affiliated with Freight Forwarders, independent businesses, or shipping lines, importers, exporters, trade authorities, and customs brokerage firms. According to Customs Brokers Licensing Regulations 2013‖, Custom Broker means a person licensed under these regulations to act as agent for the transaction of any business relating to the entry or departure of conveyance, import or export of goods at any customs station.

Clients can access the custom broker services of top grade quality and timeliness. These services are assured to provide the clients customs clearance using the best solutions. The custom brokerage services are known for giving support and guidance to the required clients. The process of the custom brokerage services makes sure that the clients do not require any further custom clearance troubles. These services are related to import and export customs. Offered in the best of form and by best of team members, our custom services can be availed at reasonable costs. The services can be altered as per the needs and demands of the clients.

Cameroon is a country in the western part of Africa; she borders by the Central African Republic, the Republic of Congo, and Gabon, Equatorial Guinea, Nigeria and Chad.  Cameroon has some seaports such as the Douala seaport, the Kribi seaport, the Limbe seaport and the Garoua seaport. The Douala port is the busiest and most important, minor ports include Kribi, used mainly for exporting timber, and Limber used mainly for palm oil exports. Cameroon is ranked 163 among 190 economies in the ease of doing business, according to latest World Bank annual ratings. The rank of Cameroon improved to 163 in2017 from 166 in 2016. Ease of doing business in Cameroon average 165.80 from 2008 until 2017, reaching an all-time high of 171 in 2009 and record low of 161 in 2011(trading economy, 2018). According to the 2016 list of counties by merchandize imports, Cameroon was ranked 113th in the world regarding the value of goods imported with a total import value of $6,630,000,000 (Mandruss, 2018). According to crystallized carbon (2018), Cameroon’s main import partners were China (27.9%), Nigeria (13.9%), France (10.9%) and Belgium (4.1%) registering a total import of $6.159 billion in 2015.According to him/her, Cameroons main import goods are machinery, electrical equipment, transport equipment fuel and food. In 2015 her main export partners were China (16.7%), India (15.7%), and Spain (6.2%) Belgium (6.1%), France (6.1%), Portugal (5.6%), Netherlands (5%), and 5% for Italy (Crystallized carbon, 2018)

1.2 Problem Statement

The advent of globalization has brought increased in the production and demand for goods and services (Brecht and Martin, 1996). Consequently, private and public sector firms in both developing and developed economies have undertaken to make these goods available in areas of shortages and preference. Effective and efficient importation enhances a countries economy, leads to self-employment, reduces dependence on government and leads to the creation of new and innovative job opportunities (Manson, McCartney, and Sherer, 2001).

The experience of advanced countries in managing importations requires considerable skills, resources, infrastructure and honesty. However, this is typically in short supply in DCs. Government officers appointed to lead importation terminals have little or no knowledge in the requirements needed to conduct these institutional structures successfully. The consequences are therefore standing structures with a “laser fair” style of leadership, little or no accountability, vast bureaucracy, and non-respect of due process.

In Cameroon, in particular, a lot has been said and even more left unspoken about the environment of importation in Douala Port. For instance, popular opinions hold that the current atmosphere is plagued with a lot of ills (bribery and corruption, theft, bureaucracy, high custom duties, long time lag) especially in the areas of clearing of goods from the various seaports once they have been imported. Consequently, there are testimonies of abandonment of imported goods at the seaport for long period of time and over congestion. Also, other opinions are that many interested individuals especially importers are looking elsewhere for business and a source of income because of the long, expensive and extensively bureaucratic process with hints of bribery and corruption. The few bold individuals courageous and with “pockets deep enough” to take up this activity complain of the high prices involved in the clearing of these goods which sometimes they say even exceeds the cost of the products themselves.

However, the above opinions and testimonies regarding importation challenges in the Douala port are not conclusive because no existing study is available to ascertain such claims. This has triggered the researchers to find out and address the following main question: “What are the challenges faced by custom brokers during clearance procedures in Cameroon”? Such forms the bases for this research

1.3 Research Questions of the Study

1.3.1 Main Research Question  

What are the challenges faced by brokerage companies’ clearance procedures at the Douala port?

1.3.2 Specific Research Questions

• What type of problems are problems faced by Custom Brokers companies at the Douala port?
• What are the major goods that faced custom brokerage effect at the Douala port?
• Which suggestion can be put in place to reduce the problems faced by Custom Brokers companies in Douala port?

1.4 Objectives of the study

1.4.1 Main objective  

To evaluate challenges faced by brokerage companies’ clearance procedures at the Douala port.

1.4.2 Specific objectives

• To study about the problems faced by Custom Brokers at the Douala port.
• To know about the major goods that faced custom brokerage effect at the Douala port.
• To give suggestion to reduce the problems faced by Custom Brokers Douala port.