Project/Service

A. General Information

1. Title

EAC SCT (Single Customs Territory)

2. Status of the project/service
Operating
3. Implementation period of the project/service:
From
2014
To
--
5. Geographical coverage
Regional: Africa
6. Participating agencies/entities of the project/service:
a. Development stage
Lead agencies/entities
Revenue Authorities of EAC
Other participating agencies/entities
--
b. Operational stage
Lead agencies/entities
Revenue Authorities of EAC
Other participating agencies/entities
--
7. Main user groups of the project/services
Traders (big enterprises)
Transport
Customs
8. Process category of this project/service
Transport

B. Lessons Learned

9. Summary description of the project/service
a. Objective(s)

The Single Customs Territory has been implemented to facilitate faster clearance and improvement in cargo movement along the two corridors (Northern and Central) and the now Standard Gauge Railway line. 

b. Reason for initiation (background)

To further consolidate the goals of the Customs Union and to address the challenges experienced, the Summit of Heads of State decided on the implementation of the Single Customs Territory which commenced in July 2014. This was a major milestone and final stage towards the attainment of fully fledged Customs Union. Under SCT assessment and payment of duties is done at the destination Partner State while goods are still at the first point of entry. 

c. Target process*

Transit system for EAC 

d. Overall architecture and functionalities*
--
e. Relevant document/figure
--
10. Documents and data exchanged via the project/service

Transit Declaration 

11. Data harmonized between agencies/entities/users
--
12. Main challenges faced during the project/service

Application of Law Difference in application of Custom Laws and Instruments, Duplicated Procedures; Multiple Customs declarations at Internal Borders, Security Bonds Multiple Security Bond regimes, Varying Valuation Application of varying Valuation approaches,  Enforcement Weak Enforcement Mechanisms, Non Tariff Barriers Multiple Road Blocks along the Transit Corridor, Cargo Flow Restricted Flow of Cargo, Congestion At the Ports and Border Stations , Complex clearance Complex Clearance Procedures involving many Government Agencies  

13. Lessons learned from the project/service

The interconnectivity of customs systems in the region facilitates seamless flow of information between customs stations, a payment system to manage transfers of revenues between Partner States; and legal provisions to enjoin Partner States to enforce customs debts on behalf of each other. 

14. Main benefit(s) of the project/service
--
14A. Elaborations/detailed description on benefits gained:
  • Reduce the Cost of doing business by eliminating duplication of processes  
  • Reduce administrative costs and regulatory requirements  
  • Reducee the risks associated with non compliance on the transit of goods 
  • Synergy through shared resources and utilization of economies of scale  
  • Efficient revenue management  
  • Enhance application of Information Technology and data collection at regional level: “Single Customs Territory – The East African Community Model" By Beatrice Memo (Ms) 
15. Technical/financial/capacity building/other assistance

EAC / TMEA /KRA /USAID /GIZ 

16. Future plan for expansion of the project and service
--
17. Other information or relevant references on the project and service
--
18. Relevant document regarding the project/service
--

C. Relevant Standards

20. Electronic message standard
20A. Electronic message standard supporting the project/service:
XML
20B. Type of standard for electronic message applied for the project/service
International standard
21. Technical communication standard
21A. Technical communication standard supporting the project/service
Web services, VPN – Virtual Private Network
21B. Type of technical communication standard applied for the project/service
International standard
22. Security-related standards*
22A. Security-related standard supporting the project/service
VPN (Virtual Private Network)
22B. Type of security-related standard applied for the project/service
International standard
23. Other Technical Information
23A. Interface developed for data exchange with an internal system
--
23B. Other technical implementation information
--