Kampala - The implementation of the Uganda
Electronic Single Window (UESW) system has saved traders about $85,000
(sh308.4m) annually, that was being wasted as a result of submitting the
required trade documents manually.
Speaking during the launch of the
second phase progress report on the UESW in Kampala last week, the Uganda
Revenue Authority (URA) acting commissioner customs, Abel Kagumire, said the
introduction of the system simplified trade procedures and processes, cutting
delays caused by human contact, resulting in substantial cost savings.
The UESW is a system that
leverages technology to allow traders submit all the required regulatory
documents, including permits and customs declarations, to all approving
agencies electronically using a single access point.
Previously, agencies were working
in silos, requiring traders to move with physical documents from one office to
another to get the necessary trade certificates. This caused delays and
increased the cost of doing business.
According to Kagumire, the UESW
system reduced the clearance time of goods from 21 days to 14 days, before
falling further to four days for imports and two days for exports.
“Getting certificates was a big
issue, but now all that is done under the single window following the
automation of the certificates. So, no more moving up and down going to the
different agencies,” Kagumire added.
Figures from Bank of Uganda also
show that the value of Uganda’s trade to other East African Community countries
rose from $1.4b (sh5.1 trillion) in 2017 to $1.52b (sh5.5 trillion) in 2018,
attributed to the ease in clearance of goods through the UESW.
Kagumire also noted that as a
result of the UESW, the country has improved its ‘doing business’ ranking in
the aspect of trading across borders from 150th to 127th position, currently.
Relatedly, he said the country’s
ranking in the ‘ease of doing business’ has improved from 161st to 119th
position.
Easing cross-border trade
The acting country director TMEA
Uganda, Damali Ssali, alluded to how the UESW has simplified cross-border
trade, facilitating the private sector to trade in an easy, transparent and
predictable environment.
“By the time we are done, may be
in the next two years, we want Uganda to be more recognized for its compliance
with the World Trade Organisation Trade Facilitation Agreement because the
single window supports us to do that,” she said.
Ssali also noted that the project
has become a benchmark system to other countries seeking to improve trade
facilitation.
Ssali, however, expressed concern
that while Uganda has improved in doing business indicators in trading across
EAC borders, there is need to work on improving the overall ranking.
Ssali implored the ministries of
finance, trade and URA to come up with a plan targeting agencies that are low
ranking in the World Bank doing business ranking due to inefficiencies
emanating from manual process to onboard the onto the single window. This will
improve their overall ranking, competitiveness index and the logistics
performance index.
Agencies on the system
Ministries, departments and
agencies on the system include Posta Uganda, Uganda Communications Commission,
Interpol Uganda, National Environmental Management Authority and the Atomic
Energy Council.
The others are the Cotton
Development Organization, Ministry of Water and Environment, Warehouse Receipt
Authority, Uganda National Roads Authority, Uganda Registration Services
Bureau, Ministry of Works and Transport, Ministry of Finance, Ministry of
Foreign Affairs and Uganda Wildlife Authority.
Kagumire, however, said the
target is to have all the 30 agencies involved in trade facilitation on the
system by 2021.
The project is funded by the
Danish International Development Agency (DANIDA) through Trade Mark East Africa
to a tune of $9m (sh32.6m). It is a five-year project expected to end in 2020.
More funding
Ssali said DANIDA has released
another $10m (sh36.3b) to be spent over the next four years, targeting the
elimination of non- tariff barriers (NTBs), address standards, e-commerce and
informal trade, among others.
Margaret Magera, a senior advisor
with DANIDA, urged ministries and agencies that are not yet on the system to
move faster before the funding closes.
“For those of you who want to be
pushed, you may fall out. You need to jump onto the bus while you still can,”
she said.
Magera noted that an improved
business environment is central to the operations of markets and fosters
innovation, productivity and growth.
She challenged the stakeholders
to devise sustainability mechanisms of the project, even after the project
comes to an end, saying the long processes discourage imports and exports.
The acting permanent secretary in
the trade ministry, Grace Adong Choda, however, noted that the ministry is
working with the National Information Technology Authority, Uganda (NITA-U) to
devise a sustainability plan for the system.
This will allow for continuity
even after termination of support.
She added that the trade ministry
will convene and co-ordinate technical meetings for URA, TMEA, UNCTAD and
NITA-U to map out modalities for a partnership, focusing on sustainability of
the UESW system.
“The system offers you an
opportunity to have real time transactions online to clear goods; for the
private sector, time lost is money lost,” she said.
To further enhance efficiency,
URA, in partnership with the Uganda National Bureau of Standards, launched the
Pre-Export Verification of Conformity (PVoC) Auto Clearance Process recently.
The process allows for
interrogation of trade information on the issued Certificate of Conformity
(CoC) or Certificates of Road worthiness (CRW) using the interconnected systems
to enable faster clearance of goods.
It is expected to offer seamless
clearance of goods and shorten clearance time from the current 12 hours to less
than two hours as validation and approvals are done by systems.
Prior to the launch of the auto
system, traders had to have hard copies of the CoC, which they would present to
the Uganda National Bureau of Standards inspectors for interrogation before it
can be cleared by URA.
It could take a minimum of a day
to complete the process.
The numbers
The UESW system project manager
at URA, James Bob Barungi, said there has been a cumulative increase in the use
of UESW system for phytosanitary certificates issuance to 20,000 and 40,000 for
coffee permits as of September 2019.
He noted that the EAC region
accounted for 90% of electronic certificates of origin processed between July
2018 and September 2019, followed by COMESA and GSP at 3%, each. China came in
with 2%, Morocco and India at 1% each and South Korea at 0%.
Barungi, however, expressed
concern over some EAC countries that are still rejecting the preferential
certificates issued from the UESW system, forcing exporters to use the printed
copies, which results in delays and unnecessary costs.
He noted that there is need for
more engagement with partners to have the issue resolved. At the meeting, two
modules, including the Cotton Development Organisation (CDO) and the Uganda
Communications Commission (UCC) were launched.
CDO will facilitate registration
of ginnery, ginning and export certificate, as well as Lint Quality certificate
online, while UCC will offer certificate to radio communication and
telecommunication equipment that meets the set regulatory, technical, and
safety standards.
The market information and
monitoring officer at CDO, Fredrick Lugojja, said the electronic single window
will lessen the time the various stakeholders in the cottons sub-sector have
been spending to get the required certificate for export.
Single transaction portal
During the second phase of the
UESW project, the Asycuda World, the platform on which the electronic single
window operates, was also upgraded to further facilitate seamless trade
facilitation.
According to Barungi, 80% of the
processes are complete and the rest is expected to be completed next year.
Once complete, it will facilitate
a single transaction portal where the different agencies can log on to launch
applications for approval and also receive feedback.
The single transaction portal
will also allow for tracking of an application in case of any delays.
Story by The New Vision.
No comments:
Post a Comment