Outline of the Project

Project Name

Project on Capacity Development for Trade Facilitation and Border Control in East Africa

Country

Burundi, Kenya, Rwanda, Tanzania and Uganda

Date R/D Signed

October 24, 2017

Project Site

(1) Selected OSBP sites (Namanga, Rusumo, Malaba, and Gatuna/Katuna)
(2) Selected sections and offices of the Customs Administrations of the Revenue Authorities in East Africa (Burundi, Kenya, Rwanda, Tanzania, and Uganda).

Term of Cooperation

From December 16, 2017 to June 30, 2021

Implementing Organization

Revenue Authorities of each country of Burundi, Kenya, Rwanda, Tanzania, Uganda

Background

Since its establishment in July 2000, the East African Community (EAC) has steadily grown by increasing the number of Partner States. This growth can be attributed to a number of key regional efforts and Customs initiatives, notably implementation of a Single Customs Territory (SCT), development and adoption of various regional legal and regulatory instruments such as the EAC Customs Management Act and Regulations, the One Stop Border Post (OSBP) Act and Regulations, various trade facilitation efforts such as regional Time Release Studies and the harmonization of Customs procedures, upgrading of Customs management systems, and introduction of an Authorized Economic Operators (AEOs) Scheme in line with global standards.

However, as shown in the latest report on cross-border trade and logistics efficiency conducted by the World Bank, the region is still facing a wide range of challenges in improving efficiency in border clearance and infrastructure. Especially, the movement of cargo along the Northern Corridor relies heavily on road traffic conditions, Mombasa port operations, and cross border efficiency. Furthermore, considering the increasing global threat of terrorism and the increasing complexity of supply chains, ensuring safety and security in trade and Customs by enhancing capacity for a coordinated approach in Customs and border control is paramount for the smooth movement of legitimate goods and people.

With this background, since 2007 the respective Revenue Authorities in the region and their Customs administrations with the support of the Japan International Cooperation Agency (JICA) have implemented a Technical Cooperation Project to build the capacity of Customs administrations, relevant border agencies, and clearing agents for efficient border clearance to facilitate trade in the region. This has included the introduction and operationalization of OSBPs at the Namanga (Kenya/Tanzania) and Rusumo (Rwanda/Tanzania) borders. These are "Project for Capacity Building for the Customs Administrations of the Eastern African Region Phase 1(December 2007 to September 2009)", " Phase 2(September 2009 to September 2013)", and "Project on Capacity Development for International Trade Facilitation in the Eastern African Region(December 2013 to December 2017)".

In order to further accelerate trade facilitation and effective border control while deepening regional integration to establish a Customs Union for the free movement of goods, people, and capital, the respective Governments of the EAC Partner States requested support for a new phase with a focus on effective implementation of OSBPs and further improvement of Customs enforcement and risk management (hereinafter referred to as "RM") capacity for trade facilitation and border control in the region.This Project is implemented in close cooperation with the World Customs Organization (WCO).

The Overall Goal

Regional economic development through trade facilitation and ensured safety and security is further promoted in East Africa.

Project Purpose

Efficiency of border procedures and capacity of border control are improved at the targeted borders in East Africa.

Output

(1) OSBPs are operated in an efficient and regionally harmonized manner at selected land borders.
(2) The capacity of customs administrations for efficient and effective border control is enhanced.

Project Activities

Activities for Output 1

[Support efficient OSBP operation including Namanga and Rusumo]

1-1.	Select OSBP(s) (Malaba and Gatuna/Katuna) to be included in the project scope.
1-2.	Establish performance indicators and monitor the operational status of OSBPs at Rusumo and Namanga and improve their procedures through time measurement surveys and other measures as necessary.
1-3.	Survey the operational capacity of selected OSBP(s) (other than in Namanga and Rusumo) and extract challenges.
1-4.	Organize joint border coordination committees and joint technical committees for efficient operationalization of selected OSBP(s).
1-5.	Develop action plan to strengthen operational capacity at selected OSBP(s).
1-6.	Implement the action plan and conduct time measurement surveys (and impact evaluation as necessary) at selected OSBP(s) to confirm the results of support and extract recommendations.

[Monitoring the Utilization of EAC OSBP Procedures Manual]

1-7.	Develop plan for utilization of EAC OSBP Procedures Manual at Namanga, Rusumo and selected OSBP(s) based on Activity 1-1.
1-8.	Implement the plan developed in activity 1-7.
1-9.	Draw lessons from OSBP operationalization and utilization of EAC Regional Procedures Manual at Namanga, Rusumo and the other selected OSBPs to reflect them into the Manual and EAC OSBP Training Curriculum.

Activities for Output 2

[Enhancement of Risk Management (RM) (may focus on capacity building on Intellectual Property Rights (IPR) enforcement, i.e. common issue raised in the RM recommendation]

2-1.	Confirm current implementation and procedures of RM, identify capacity building needs, and assign focal person/group in charge at each partner state.
2-2.	Based on the identified needs through activity 2-1, conduct technical assistance paying due attention to avoid duplication of works with other related assistance, to improve RM.
2-3.	Monitor implementation status of RM (including the training delivered by MTs on Intelligence Analysis).

[Enhancement of Post Clearance Audit (PCA) capacity]

2-4.	Confirm current capacity building needs on post clearance audit, and assign WG members for Master Trainer Programs on PCA at each partner state.
2-5.	Conduct technical assistance to develop pool of MTs on Post Clearance Audit.
2-6.	Monitor delivery level of training to be made by those MTs in each country as necessary.

[Enhancement of Border control (including Program Global Shield (PGS))]

2-7.	Organize awareness raising and needs analysis activities on PGS.
2-8.	Based on the finding on activity 2-7, conduct training to improve customs control at the targeted border.
2-9.	Organize operations including the implementation of PGS and review operational result for further improvement.
2-10.	Conduct trainings for effective utilization of equipment which may be provided by Japanese grant aid.
2-11.	Monitor implementation status of Joint Border Surveillance/Joint Water Surveillance (JBS/JWS) which may include the effective utilization and maintenance of equipment which may be provided by Japanese grant aid.

Inputs

[Japanese side]
[Expert]
- Chief Advisor
- Customs Policy
- Senior Relationship Management
- Monitoring and Evaluation
- Project Coordinator
- OSBP Operationalization (Expert team)

[Training for counterpart personnel in Japan and/or third countries]
As necessary.

[Expense for local activities]
Cost of training activities in EAC partner states. Cost of travel expenses for the experts, other necessary expenses for activities

Inputs

[East African side]
[Allocation of Counterpart Personnel]
Project Director (Head of each organization), Project Manager

[Office Environment]
Project Director (Head of each organization), Project Manager

[Expense for Project activities]
Necessary expenses including salary for C/P