One-Stop Border Posts to lift trade

Long distance trucks hauling cargo into Uganda line up for clearance at the Malaba boarder. Truck drivers have complained of time wastage at the boarder while clearing. Photo/ EMOJONG OSERE
Long distance trucks hauling cargo into Uganda line up for clearance at the Malaba boarder. Truck drivers have complained of time wastage at the boarder while clearing. Photo/ EMOJONG OSERE

When one thinks of border crossings in East Africa, the image that may immediately come to mind is that of a long queue of trucks waiting, idling as the paperwork is filled out. However, with the implementation of the One Stop Border crossing model, activities are now streamlined and managed by two countries sharing a border station.

In the traditional border practice, traders were hindered by rigorous Customs clearance procedures, in which goods were separately inspected by officers on either side of the border, leading to massive delays. A user of a border point, who could be an importer, exporter or a traveller, needed to obtain exit clearance from one side of the border before moving over to the other side for entry clearance. These border crossing procedures reflect a glaring disconnect among EAC member countries in clearance of cargo.

These trade barriers have now been removed by extending application of partner states’ national laws relating to border control.

Officials of adjoining partner states can now perform statutory functions outside their national territory. In addition, border control functions have been consolidated in a shared space for exiting one country and entering another.

In Kenya the existence of the One-Stop Border Posts is largely underrated, yet they are the main reason why trade within the EAC has become very vibrant. The Kenya Revenue Authority, being the lead agency at all the border points, in conjunction with partner states, has enacted business procedures that have resulted in increased cooperation amongst key border agencies.

At the borders, one will notice facilities that combine two national border control processes into one. The facility is shared by border agencies between neighbouring states and the current processes have moved away from the traditional borders that involved a variety of paperwork and procedures duplicated across countries.

One of the main features of the OSBP concept is that traffic crossing the border stops only once, instead of stopping at the border post for exit formalities and at the border post at the point of entry for other formalities.

The OSBP places the border officials of two adjoining countries at each other’s adjoining border post. Each border post controls only the traffic entering the country. Exit formalities of the exit country and the entry formalities of the country of entry are carried out at the border post in the country of entry.

The initiative has led to harmonisation of transit clearance, with officers from the EAC countries sharing a border sitting under one roof to handle transit documents concurrently to save time. Instead of stamping goods and paying taxes at every border point in the EAC, the OSBP has enabled inspection of goods at one border point.

Further, the presence of other government agencies, such as the Kenya Bureau of Standards, Kenya Wildlife Service, Kenya Forest Service, Kenya Plant Health Inspectorate Service, Port Health, Immigration and Security at the OSBPs quickens the clearance process.

The legal framework enabling the cooperation and the supporting ICT infrastructure that allows preparation of the documentation prior to the arrival of the trucks at the border stations have reduced average border crossing time from over 72 hours to less than six hours.

Based on estimates of the value of time for trucking enterprises and for traders, the savings generated by the improvement of the situation represent approximately $70 million per year. For instance, the introduction of the OSBPs in Western Kenya has not only increased revenue collection, but also decongested the border stations. A good example is the Busia OSBP, which collected approximately KShs1.4 billion in the 2016/17 financial year, recording a growth of 47 per cent since its inception.

Other benefits of the OSBPs include improved security, reduced corruption and revenue leakage, as well as improved resource utilisation through improved cross-border cooperation and sharing of resources and intelligence. In addition, the OSBPs have reduced the cost of consumer goods.

Some of the busiest border posts between Kenya and its neighbors include Namanga, Taveta/Holili, Lunga Lunga/Hororo, and Isebania/Sirari on the Kenya-Tanzania border as well as Moyale on the Ethiopia-Kenya border. Others are Busia and Malaba on the Kenya-Uganda border.

To their credit, these one-stop border posts have evidently ensured free and efficient movement of goods and people. Duplication of processes between border posts as well as cumbersome border systems have been eliminated. In addition, Kenya is economically competitive, experiences improved border security, and there is noticeable and coordinated utilisation of government resources at the border posts as well as strengthened trade relations between countries.

KRA’s regional coordinator, Western

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