Project/Service

A. General Information

1. Title

Regional Customs Transit Guarantee (RCTG): RCTG-CARNET

2. Status of the project/service
Operating
3. Implementation period of the project/service:
From
01-2012
To
Present
5. Geographical coverage
Regional: Africa
6. Participating agencies/entities of the project/service:
a. Development stage
Lead agencies/entities
Revenue Authorities and Customs of COMESA member States
Other participating agencies/entities
Insurance companies and banks and Clearing and Forwarding Agents in COMESA Member States
b. Operational stage
Lead agencies/entities
Revenue Authorities and Customs
Other participating agencies/entities
Insurance companies and banks and Clearing and Forwarding Agents
7. Main user groups of the project/services
Traders (big enterprises)
Traders (SMEs)
Customs brokers
Customs
8. Process category of this project/service
Forwarding and cargo handling
Insurance

B. Lessons Learned

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

The objective of the RCTG scheme is to provide a uniform basis for transit movement throughout the region, where only one guarantee is used for the transit of goods through all transiting Member States. 

b. Reason for initiation (background)
  • The COMESA Regional Customs Transit Guarantee (RCTG-CARNET) Scheme is a component of the COMESA Protocol on Transit Trade and Transit Facilitation, Annex I of COMESA Treaty; 

  • COMESA RCTG Agreement was signed by the Heads of State and Government of the Preferential Trade Area (PTA), (now COMESA) Summit, held in Mbabane, Swaziland (now eSwatini), in November 199. 

  • The development on the modalities of operations was started in 2002 and Scheme became operational in the Northern Corridor countries in 2012. 

  • The application of multiple customs bonds and   documentation  at each and every border crossing point increased the cost of premium for  bonds, Clearing fees for Agents  , multiple collateral requirements , customs entries   and  delays contributed to the high cost of transport and transit in the COMESA Region

c. Target process*
  • Through all participating c stoms Management act, the Customs Bond Guarantee Agreement , the Inter -Surety Goods travel in customs secure vehicles and/or containers wherever possible; 

  • All carriers involved in transit traffic should be licensed; 

  • Throughout the transit, duties and taxes at risk are covered by a valid RCTG guarantee/Bond; 

  • Goods are accompanied by a Customs Transit Declaration; and  

  • The RCTG Carnet shall be used throughout the transit process as a bond or guarantee exemption certificate in all member and participating states transited. 

d. Overall architecture and functionalities*

The project covers the following functionalities: 

  • RCTG bond management  
  • Clearing & Forwarding Agents and Guarantor Management  
  • T1 entry and Carnet management  
  • The system is interfaced with the National Customs Systems to get real time update of transit entry declaration. 
e. Relevant document/figure
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10. Documents and data exchanged via the project/service

Data Exchanged include: 

  • Clearing and Forwarding Agents information 
  • Guarantors (Insurance Companies guaranteeing the RCTG Bond) 
  • RCTG Bond information including RCTG Bond status and Bond Supplementary information   
  • Customs declaration (Entry) information and RCTG Carnet  
  • T1 departure from port/station of origin 
  • T1 entry arrival at destination (warehouse) information  
  • T1 exit and entry at border point 
  • Bond guarantee cancellation (acquittal of the Carnet) 
11. Data harmonized between agencies/entities/users
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12. Main challenges faced during the project/service

Unreliable internet connectivity and delays in acquiring infrastructure in some Member States. 

13. Lessons learned from the project/service

Full engagement and ownership of the stakeholders in the design, development, pilot testing, operations and decision making is a critical factor for the success.

14. Main benefit(s) of the project/service
Transaction Cost savings* -- rate: 15%%
Transaction Time savings
Simplified process
Increased trade flow
14A. Elaborations/detailed description on benefits gained:

Reduce cost of Bond/Guarantee and collaterals charged by Sureties; 

Reduce cost of Bond /Guarantee charged by Agents; 

Reduce delays at border posts; 

Simplify the clearing process; 

Provide Business opportunity; 

Minimize Revenue leakage; 

 

Implementation of the RCTG Carnet reduces the cost of transport and clearance by between 10 and 15 per cent. 

Reduce bond charged by Agents. Reduce transit Time. Simplify the clearing process. Reduce documentation. Reduce and gradually remove the acquittal process of bonds.  Provide Business opportunity. Minimize Revenue leakage 

“THE COMESA/RCTG CARNET- WTO –Trade Facilitation Workshop Supporting Implementation of the Trade Facilitation Agreement in the Post-Bali  Context   10thJune 2014 Geneva” 

15. Technical/financial/capacity building/other assistance

USAID and European Union through Regional Integration Support Programme (RISP) 

16. Future plan for expansion of the project and service
  • North-South Corridor (DR Congo, Malawi & Zimbabwe) 

  • Horn Corridor (Djibouti, Ethiopia, South Sudan & Sudan)  

17. Other information or relevant references on the project and service
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18. Relevant document regarding the project/service
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C. Relevant Standards

20. Electronic message standard
20A. Electronic message standard supporting the project/service:
XML:
- Other XML format: XML Schema Definition (XSD)
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
SOAP Web Services
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
Hyper Text Transfer Protocol Secure (HTTPS)
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
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23B. Other technical implementation information
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