WTO SYMPOSIUM ON TRADE FACILITATION

Transit of goods in land locked countries

Rwanda’s experience

MUHIGI Zephania
Head of Customs Field Operations Division
Customs Services Department
Transit in landlocked country perspective
Rwanda ‘s case
Rwanda Land locked relying
heavily on two ports (Mombasa
and Dar es salaam )
The transit charges ranked as
high as 50-70 percent of CIF
value for Rwanda.
The cost of trade continue to be
high due to transport cost.
Transport &insurance cost
about 49% of total export value.
In DB2012 Rwanda ranked 3rd in
Africa and best performer
worldwide, from 58th position
WDB2011 to 45th out 183
countries assessed.
 In WB indicators; did poorly on
trading across borders (ranked
155th from 159th for DB2011)
despite several reforms made
nationally
 Why little progress on this
indicator?- presence of several
NTBs with variety of constraints
and restrictions along transit
corridors .
Highlight of issues
 Multiple transit bond guarantees
used, guarantees amount remain
un acquitted for months (tied up
capital)

Transit issues for land locked country cont..
Several weighbridges , over
4o counted on both transit
corridors
Inadequate Police Escort or
convoy’s mechanism which
delays transit cargo. Reports
indicates 35 days to export
and a total cost of USD 3275
per container.
 Numerous Police road
blocks and check points (16)
on Northern corridor alone
Varying application of axle
load specifications.
inconsistencies GVW and axle Congestion created by weighbridges, buses
load limits. and trucks have to wait for many hours

Transit issues cont..
Un published fees and charges
on weighbridges, roadblocks and
gates about USD880 on both
corridors
Delays at the Ports due to
uncoordinated procedures
&interventions , average taking
two weeks to process transit
goods to Rwanda
Regular break down of customs
electronic business systems or
power outages causing
unnecessary delays of cargo in
transit at ports &borders
High transit truck license fees
charged to convey goods in Congestions at border s
transit over 1200 USD annually .
Regional initiatives
 Progress made on use of
RADDEx system and new
version underway
Implementation of One Stop
Border Post along the
borders in EAC all countries
Progress on Authorized
Economic Operators scheme
by EAC Partner States
Implementation of Cargo
Tracking system
 Joint Time Release Study
(TRS) under consideration
 Infrastructure development
master plan under EAC
Regional Customs Bond
Guarantee under Comesa
implementation in progress
in all Partner States
 introduction of E- portal for
clearing and forwarding
agencies
Process of implementation of
24h/7 operations at ports and
some border posts is in
progress
 A new system – ASSET being
introduced
Harmonization customs
procedures
Rwanda’s TF reforms on transit
Customs entry &exit borders
fully automated , cargo in
transit monitored through
the system
 Automation of transit
guarantee procedure, set an
amount equal to duties liable
on those goods, installation
& acquittals done
electronically at exit points.
Availed standby generators
and engaged different
network services providers
to avoid delays at borders
Weighbridge installation at
one stop – entry and exit
 Introduction of X-ray mobile
scanners at border entry.
OSBPs using one side of the
border for all clearance services,
time savings, one completed
other four underway.
 Removal of roadblocks in 2008
 Electronic Single Window,
implementation process started
and benefits huge.
24h/7 concept – improved
clearance time at borders
Introduced Pre –clearance
system
Implemented use of RADDex
platform
Thank you for your attention!