trade facilitation ( comesa e-initiative -cvtfs ) · trade facilitation ( comesa e-initiative...
TRANSCRIPT
Regional Trade Facilitation • Doing Business in Africa
Challenges
Transport Cost
• COMESA Regional Instruments
• What is CVTFS?
CVTFS Architecture
Key Modules & Functions
Benefits
• Current CVTFS Status
Sustainability
Virtual Market - CEMES
Challenges Snap shots
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Delays in Clearance at Borders Long Queues at Borders
Fuel Tankers Tampering
Un secured Open Bulk Cargo
Challenges Cont..
• Loss of goods during transit
• Diversion of good in transit,
• Not able to control counterfeit
• Cargo dumping
• Long transit time,
• Long release time,
• Delayed clearance at the borders,
• Non availability of Goods regional bond guarantees for most transporters
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Challenges Cont.. Transport Cost
African landlocked countries transport cost range from 15 to 20
percent of import costs
(MacKellar et al. 2002)
Transport costs (TC’s) = VOCs + other indirect costs
Vehicle operating costs (VOCs) include various direct costs to
operate a given vehicle,
- notably maintenance,
- tires,
- fuel,
- labor, and
- capital costs.
COMESA Regional Instruments
• Yellow Card,
• Transit Data Transfer Module,
• Carrier License for road freight operators,
• Regional Customs Transit Guarantee
• Harmonised Axle Load,
• Gross Vehicle Mass Limits which includes
Certificate of Overload Control
Customs Declaration Document.
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CVTFS' main objective is to assist Private and Public
Sector organizations in the Corridor States to manage
and monitor the process of movement of their general,
dry bulk and bulk liquids cargos in effective and
efficient manner and in real-time to reduce the cost of
doing business in the sub-regions.
What is COMESA e-Initiative (CVTFS)
Data Exchange module
• This is the module deals with data from the revenue authority legacy system like ASYCUDA ++, ASYCUDA world, SIMBA, TATIS.
• The module manages the exchange of data with CVTFS tracking module
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Risk Management Module Functions
1. To receive advance information on transit cargo to assist
with targeting of high risk consignments
2. To exchange transit information that will assist Customs
to effect controls whilst facilitating legitimate trade
3. Accumulate data which can be analysed for any trends
and future forecast
4. Help the rapid response team in quick and fast
responses by providing them with actual information
with the location of constant violations.
Cargo management: Involves registration of the seals ; 1) Container 2) Fuel Tankers -Truck 3) Open bulk Cargo 4) Motor Vehicle Locks
Monitoring Management: All cargo armed at the any start point
Notification module: This module will deal with alert notifications
Inspector module : This is officers who will charged with arming of seals, disarming of seal and inspections along the corridors.
User management: Allows registration of operators, administrators and guest users. All system users who need to be defined will be created under this module.
Tracking Module Functions
Reporting module: All reports will be either generated or scheduled under this module
Route/geo-fence management: This a module which handles geo-fence/route creation, edit and deletion.
Dash boards: This a good feature which gives analytical data at a glaze.
Ticket Module: Any information or ticket can be send in between the users of the CVTFS tracking module.
Tracking Module Function Cont…
Alerts/Violation
CVTFS produces the following among other custom alerts;
a) Security and geo-fence
b) Trip start alert
c) Corridor (route) deviation alert-
d) Route violation alert ( zone alert)
e) Check Point alerts
f) End/exit point arrival alert
g) Device alert temper
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1) Attach road manifests to a specific truck and assign the truck by integration with existing customs system like ASYCUDA, SIMBA, TATIS and other custom systems.
2) CVTFS records events for stakeholders during a whole journey from the departure point to the destination.
3) Stem cargo diversion because most gazetted transit goods routes will be geo-fenced for security.
4) Access in real time the truck and cargo status, location and other pertinent event information
5) Receive different alerts from system assigned COMESA gazetted routes
Biz Operations Benefits
6) Access past trips from the centralized database with playbacks
7) Enjoy seamless systems integration and communication among stakeholders.
6) Increase in the level of security of tracked/monitored goods.
7) Eliminate the need for physical monitoring (escorts) of transit goods.
8) Increase in efficiency and accountability
9) Reduce victimization on the officers
Biz Operational Benefits Cont..
The following are the cost benefits to be achieved by stakeholders
1) Reduce theft and Insurance costs for goods in transit 2) Reduce equipment inventories and increase assets security in
transit in the COMESA region 3) Reduction in undelivered cargo lost by theft when in transit
4) Easy bond clearance translates to lower bond investments
5) Fewer customer allowances (late penalties)
6) Eliminate increased expenses from lack of equipment availability
by providing quick clearance at border points
7) Increase in revenue collection by customs authorities
Cost Benefits
Cost Benefits Cont…
• Quality assurance – CVTFS guarantees the quality of the product. This reduces cases of counterfeits.
• Secure deliveries - CVTFS system manages and secure the product when in transit.
• Playback – Historical data is stored on the system for a defined period.
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CVTFS implementing Countries Involved
• Djibouti Corridor
- Ethiopia (Has Control Center )*
- Djibouti (Has Control Center ) *
• North-South Corridor
- Congo DR (Has Control Center) *
- Malawi (Has Control Center ) *
- Zambia * ( Control Center set-up in progress)
• Northern Corridor
- Rwanda (Has1 Control Center ) *
- * Kenya Starting point of Northern Corridor Cargo
• Other RECs Involved
- Tanzania * advanced discussion stage
- Mozambique *
Note: Four (4) New Control Centers being installed
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• 1 Container Lock
• 2 Open Bulk Cargo Lock
• 3 Fuel Tanker-Truck Lock
• 4 Vehicle/Car Lock
Tracking Devices Types
Transporters on Roll out (Northern Corridor )
• SPEDAG INTERFREIGHT
• KUEHNE NAGEL
• BOLLORE Africa Logistics
• HASSAN RAZA
• ONE TO ONE
• ABDUL MTWALIB
• Mitchell Scots
• TRANSAMY
• ERI KENYA
• MASTER STEEL
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Sample Manufactures Companies in East Africa
• Unilever
• Kenya Wine
• National Cement (Simba Cement),
• Kapa Oil and Taj Ceramics
• EABL Kenya
• BAT Kenya
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CVTFS Sustainability
CVTFS will be self sustainable
COMESA Secretariat owns the Software
COMESA Secretariat will pay for the maintenance & upgrade of the
Software
Fees from the CVTFS Services provided to transporters, Agents and
other stakeholders will be shared with the Government through the
Revenue Authority
MoU has been distributed to participating Countries
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What is CEMES ?
COMESA Electronic Market Exchange System (CEMES) is a COMESA initiative to develop a fully-fledged e-business solution in the COMESA region and beyond.
The main objective of the project is to bring over 450 million people to a new COMESA Virtual Market to help residents of member states and the rest of the world to buy, sell, market, insure, deliver and receive products and services, wherever they are, in real time at a lower cost and to contribute to poverty reduction.
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COMESA HQ
INSURANCE SALES INVENTORY
BUSINESS DIRECTORY
REPORTS RISK MANAGEMENT
E-COMMERCE
TRACKING (GIS/GPS)
RDBMS
XML
TXT
Network Storage
Internet
SSO
Data Layer - SDW COMESA HQ Admin
BI Experts ICT Experts
COMESA Region Customers
Manufactures Suppliers , Resellers
Distributers &
other RECs Customers &
Suppliers
Example Scenario - COMESA Electronic Market Exchange System (CEMES)
REPSS Clearing House Payment
ZEPRI & ATI Insurance
CEMES Architecture
Stakeholders
The entire business processes will be automated via the internet. The following are some of the Stakeholders:
Manufactures
Wholesalers
Customers
Transporters
Banks
Insurance Firms
Security Firms and
Government Institutions
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Functions
Customers, Suppliers, key alliance purchasers and corporate infrastructures will be integrated into seamless systems to provide low cost, higher production and significant competitive advantage.
The following are some of CEMES Key functions:
Online Information distribution and marketing
Online Ordering of Goods and Services
Electronic Payments
Product Delivery with Real-Time Tracking for Bulk purchases
After Sale Support
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Functions Purchase & Delivery
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Easy for customer to select products of their choice
Customers from other RECs can buy from CEMES
Customers can submit and view their profile
Sample reports of their previous orders can be viewed
Statements of their payments can be viewed
The delivery of products will be insured
Bulk purchases will be tracked online
Business Processed..
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Order Payment Delivery -Tracking After -Sale Support
The entire business processes will be automated via the
internet.
Customer
Single Sign
On (SSO)
CEMES ONLINE
Customer Support
Wholesaler
Insurance
ZEPRI & ATI
Suppliers &
Resellers
DELIVERY
Transporters
Payment
( Using REPSS
at Clearing
House
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COMESA
Payment – Using
COMESA – REPSS
thru Clearing
House
Paying using
Mobile - Mobile
Operators
Paying using POS –
Money Transfer
Operators, Exchange
Houses, Retails Outlets
and others
Paying using
website – Third
Party
GATE – Transaction Flow Payment Methods
Money
Received
by Exporter
or Seller
• DESIGNED BY COMESA CENTRAL BANKS PAYMENTS EXPERTS,
INPUTS FROM THE IMF, COMMERCIAL BANKS AND OTHER FINANCIAL INSTITUTIONS
OF THE REGION.
FINANCIAL SUPPORT FROM THE EU UNDER THE REGIONAL INTEGRATION SUPPORT PROGRAMME (RISP).
• MULTILATERAL NETTING SYSTEM WITH END-OF-DAY SETTLEMENT IN A SINGLE CURRENCY (US$ OR EURO).
• ENABLES IMPORTERS/EXPORTERS TO PAY/RECEIVE PAYMENT FOR GOODS/SERVICES THROUGH AN EFFICIENT AND COST EFFECTIVE PLATFORM
• SYSTEM OPERATES THROUGH MEMBER STATES CENTRAL BANKS AND THEIR CORRESPONDING BANKING SYSTEMS.
Regional Payment & Settlement System (REPSS)
Benefits
Delivery of immediate boost to business efficiency
Increase the opportunities, reduce cost of sales and services and increase COMESA regional customer satisfaction
Simplification of communication hence creating the ability to process stakeholders’ requests or responses online and communicate electronically using email or SMS.
Automation of business processes via the internet and mobile devices
Business will achieves streamlined and faster communication, improved productivity, Product Transportation and Consignment delivery
Business partners beneficiaries’ Customers, Suppliers, Insurance firm, key alliance purchasers and corporate infrastructures will be intergraded into seamless systems
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The following are some of the valuable benefits of the proposed COMESA Virtual Market Initiative;