REGIONAL WORKSHOP ON TRADE FACILITATION AND

PROMOTION OF INTRA-AFRICAN TRADE FOR

EASTERN AND SOUTHERN SUB-REGION

28th to 30th April 2010.Dar es Salaam, Tanzania.

Summary of Presentation•Introduction

•Transport Issues

•Transport Facilitation Instruments

•Status of Implementation by States and challenges

IntroductionCOMESA is a grouping of 19 member states with the objective of fostering the economic well being of its people through regional integration and as such COMESA’s core business is to develop business.

Introduction (cont’d)

• The COMESA Transport and ICT programmes focus on harmonisation of policy and regulatory regimes, the support for development of physical infrastructure and facilitation of the flow of trade and in line with Article 84 of the Treaty.

• The implementation of the COMESA programmes will result in:

Enhanced regional transport and ICT connectivity;Smooth flow of cross-border and transit traffic in the region;Increased intra and extra COMESA tradeSmooth flow of cargo transiting especially from land-locked countries to maritime ports; andReduction in transaction costs for regional and international business

Transport Issues•Policy and Regulatory Harmonization

•Development of regional transport infrastructure in roads, railways, ports, pipelines

•Facilitation to address constraints due to issues such as licensing, administrative procedures and other NTBs

•Capacities of transport service providers and related operators to provide efficient services

COMESA Transit Facilitation Instruments

•• COMESA Carrier LicenseCOMESA Carrier License•• Harmonised Axle Load Limits, Overload Control and Vehicle Harmonised Axle Load Limits, Overload Control and Vehicle

DimensionsDimensions•• Harmonised Road Transit ChargesHarmonised Road Transit Charges•• The COMESA Customs DeclarationThe COMESA Customs Declaration•• Third Party Motor Insurance (Yellow Card)Third Party Motor Insurance (Yellow Card)•• Regional Customs Transit GuaranteeRegional Customs Transit Guarantee•• Automated System of Customs Data Management Automated System of Customs Data Management (ASYCUDA)(ASYCUDA)

•• Corridor Management SystemsCorridor Management Systems•• One Stop Border Posts One Stop Border Posts

COMESA Carrier License:

iObjectivesEase the movement of vehicles across

borders through the removal of multiple road licenses and permits

iBenefitsLiberalisation of trucking industry, reduction

of trucking costs, increased utilization of trucks and mutual recognition of nationally issued licences

iImplementation Only Kenya and Uganda are implementing

partial Carrier Licensing through mutual recognition.

•ChallengesLack of awareness from both the transporters and government ministries responsible for issuing the license

Lack of knowledge on the advantages of the CCL

Certain member countries do not allow transporters to possess both the local and international carrier licenses

Axle Load Limits, Overload Control and Vehicle Dimensions

Steering Axle 8 tonnes

Single Axle 10 tonnes

Tandem 16 tonnes

Triple 24 tonnes

Gross Vehicle Mass 53 tonnes

Maximum vehicle length is 22 metres.

iObjectivesApplication of common axle load limits in the ESA region

and development of common road design and maintenance standards

iBenefitsReduction of damage to roads, bridges and other

infrastructure due to over-loading and excessive gross vehicle mass

Overload Control Certificate removes the need for multiple weighings en route

Uniform axle load enforcementExchange of information on violatorsUniform application of fees and penalties

iImplementation Not uniformly implemented by MS.

•Challenges

Non uniformity in the application of axle load limits

Some member countries do not have relevant equipment to enforce axle load limits and gross vehicle mass.

Non uniformity in procedures for weighbridge management.

Harmonised Road Transit Charges

• Objectivesstandardise road user charges Reduction of divergences in transit costs among member states.

• BenefitsElimination of multiplicity of road chargesIncreased transparency and lower road user charges with positive impact on regional trade

• Implementation Most of the member countries are implementing

•ChallengesSome countries have not adopted the COMESA road user charges

Regional Customs Transit Guarantee•Objectives

Elimination of opening and cancellation of Customs bonds and cash deposits for each country transited

•BenefitsSingle Customs bond accepted regionally; quicker clearance of vehicles at borders/increased

efficiency; Freeing of funds tied up in multiple Customs bonds;

Higher productivity of vehicles through faster transit and turnaround times of equipment

•ImplementationPiloted on the Northern Corridor and implementation

commenced Sept, 2009

•Challenges:

Slow acceptance of the new bond system by the stakeholders (customs authorities and clearing agents)

Intermittent and completely no internet connectivity at border points renders it impossible to process incoming and outgoing transits

COMESA-CD

•ObjectivesStandardisation of customs entry documents and

replacement of different national documents.

•Benefits Reduction of documentation costs; Reduction of border delays; Electronic data transfer across borders and use of a

single window for processes across the transit routeReduction of false declarations and increase govt

revenues• Implementation

implementation is ongoing in states through ASYCUDA and Simba interfaces and to be facilitated through deployment of VSATs on remote border posts

•Challenges

Non availability of platform for implementing at regional level. Will be implemented when VSAT’sare installed at remote border posts.

Third Party Motor Insurance (Yellow Card)

•ObjectivesProvide for third party insuranceCoverage valid in all the transit and destination countriesCover for medical bills for crew Underwritten by insurance companies with a pool

• Benefitsuse of local currency/no need to carry forex; simplified claims regime; payment of medical bills for crew quicker border clearance

• Implementation implemented in all the member countries

Challenges:

Lack of awareness by stakeholders on the advantages of the yellow card system and also lack of awareness on the compensation mechanisms.

THE ENDTHANKYOU