PSF, RRA and RWAFFA’s newly elected leaders
The Rwanda Private Sector Federation (PSF) and Revenue Authority (RRA) have committed to resolving the issue of timely clearance procedures to improve the performance of local clearing and forwarding services.
This commitment follows a concern raised at the Rwanda Freight Forwarders Association (RWAFFA) General Elections where clearing agencies said that the delays are affecting the country’s performance in delivering goods and services in accordance with East Africa Community (EAC) regulations.
re-elected Chairperson of RWAFFA, David M. Rwigema
RWAFFA says that at some point, the time taken for the clearing process at customs was at least one and a half days, but currently, it takes, on average, more than three days and can even reach a week depending on delays in the process.
The re-elected Chairperson of RWAFFA, David M. Rwigema, said that the delays affect their incomes, and thus there is a need to reduce the time of clearance to remain cost-effective in operations.
“What we have done is to prepare a document that indicates what should be done to address the loopholes in this process of clearing goods and ensuring taxes are cleared on time,” said Rwigema.
“We want the maximum time release to be at least one and a half days. This is crucial for us to deliver services and increase our contribution to revenue collections and development,” added Rwigema.
The time release includes the customs office conducting an inventory of goods on arrival, sending an arrival notice, declaration by agents, paying taxes, physical verification, and releasing to the market.
This process involves importers, transporters, customs agents, warehouse managers, and customs officials (taxman), and any of these could cause a delay due to negligence, financial constraints, or lack of skills.
RWAFFA new executive committee
RWAFFA believes these delays have been caused by tight measures on tax collection; however, improvements can be collaboratively made to ensure both taxes and reduced time release are achieved.
Rwigema stated that the proposed reduced time release will enable Rwanda to meet the regional and international business facilitation requirements set by the EAC Customs Treaty and the World Trade Organization, especially the Trade Facilitation Agreement (TFA), which encourages transparency and continuous improvement.
Dieudonné Irizabimbuto
Dieudonné Irizabimbuto, Director for Legal Affairs Unit, RRA Customs Department said that the RWAFFA document has been received and will be considered with the goal of having all goods cleared and delivered on time to facilitate trade.
He said the delays vary depending on different commodity regimes, but in most cases, they could be caused by a lack of skills, emphasizing the need for continuous skills improvement in the sector.
“Some of the delays can be caused by a lack of professional skills or by one of the parties involved, but we have a plan to improve collaboration with all parties involved in the process, especially by increasing their skills,” Irizabimbuto said.
Irizabimbuto revealed that as a way of improving clearing agents’ skills, RRA will conduct more training for RWAFFA members alongside the sessions conducted for revenue staff.
Ephraim Karangwa
Ephraim Karangwa, PSF Director of Operations, said that the federation is in the process of reorganizing all associations, especially streamlining their governance and administration through elections.
Karangwa stated that the federation will support all new association leadership in implementing their strategic plans of action and activities to ensure they play a direct role in the country’s development.
Some of the organizations that have recently conducted general elections include the skins and hides, exporters’ associations, and more are expected to do likewise.
RWAFFA Past Achievements and Prospects:
RWAFFA members at during a general election in Kigali. (Photo: Daniel Sabiiti)
Rwigema said that in the past three years, they have been able to provide professional skills training for 150 members out of the 251 to improve operational standards with the Customs Department.
RWAFFA was also able to construct a permanent structure in Masaka port that will accommodate all members.
In the next three years, Rwigema said that there is a need for continuous skills improvement, improved collaboration with the regulator to increase revenue collection, and to initiate income-generating projects.
RWAFFA members had time to ask questions. (Photo: Daniel Sabiiti)
Young and older members of RWAFFA. (Photo: Daniel Sabiiti)
The general elections event was also a moment of sharing light moments. (Photo: Daniel Sabiiti)
