challenges on single windows implementation - kentrade - kenya
TRANSCRIPT
Simplifying Trade Processes For Kenya Competitiveness
Kenya National Electronic Single Window System
“Challenges on Single Window implementation”
15th March 2017
KENTRADE:
A State Corporation
established in January 2010
Principal Objectives:
To Facilitate International
Trade
To implement,
operationalize and manage
the Kenya Electronic Single
Window System.
Parent Ministry:
National Treasury
Kenya TradeNet System Portal
Portal
www.kentrade-portal.com
OGAs Trade Community
• A single entry point for all
Import and Export
applications
• Regulations and
requirements
• Integrate OGAs
UN CEFACT RECOMMENDATION 33;
A facility that allows parties involved in trade and transport to lodge standardized
information and documents with a single entry point to fulfill all import, export, and
transit-related regulatory requirements.
Trader or Agent submits all
information required for
clearance once to the
Single Window System
Responses from various Authorities
and Financial Institutions are
returned to Trader or Agent
Kenya Revenue
Authority
Kenya Ports
Authority
Other Control
Agencies
Banks
KEBS
Single Window System
TradeNet System Stakeholders
TradeNet System
Security Agencies/ Non-
Permit issuing PGAs
Traders
Freight Forwarders
Shipping Line
Banks
Airlines/ GHA
Consolidators
Information
exchange and hub
TradeNet Stakeholders (41)
1. Kenya Revenue Authority
2. Kenya Ports Authority
3. Kenya Bureau of Standards
4. Kenya Plant Health Inspectorate Service
5. Pharmacy & Poisons Board
6. Port Health
7. AFA Horticultural Crop Directorate
8. Directorate of Veterinary Services
9. AFA Sugar Directorate
10. Kenya Dairy Board
11. Radiation Protection Board
12. Pest Control Produce Board
13. Directorate of Mining
TradeNet Stakeholders (41)
14. Kenya Wildlife Services
15. National Biosafety Authority
16. AFFA Tea Directorate
17. Central Firearms Bureau
18. Nursing Council of Kenya
19. Anti-Counterfeit Agency
20. Kenya National Police Service
21. Kenya National Chamber of Commerce & Industry
22. Ethics and Anti-Corruption Authority
23. National Environment Management Authority
24. Kenya Maritime Authority
25. Office of Intermodal Freight Management of the DR Congo
(OGEFREM)
26. Kenya Medical Laboratory Technicians and Technologists Board
TradeNet Stakeholders (41)
27. The National Treasury
28. Kenya Bankers Association
29. Kenya Association of Manufacturers
30. Kenya International Freight & Warehousing Association
31. Shippers Council of East Africa (SCEA)
32. Association of Kenya Insurers (AKI)
33. Kenya Ship Agents Association (KSAA)
NEW PGAS
34. AFFA Fibre Crops Directorate
35. AFFA Food Crops Directorate
36. AFFA Pyrethrum Board
37. AFFA Nuts and Oils Directorate
38. Department of Fisheries
39. National Quality Control Laboratory
40. Energy Regulatory Commission
41. Kenya Forest Services
Kenya TradeNet System Summary
Kenya TradeNet System is the name of the Kenya Single
Window System.
Important Dates
i. October 31, 2012 – Project Kick off
ii. October 31, 2013 – Kenya TradeNet System Go LIVE
iii. May 2, 2014 – Official launch of the System
Number of system users - Over 7,500 registered system users &
over 60,000 importers
41 stakeholder organizations including 30 Partner Government
Agencies (PGAs).
Module/ Functionality
1. Unique Consignment Reference (UCR)
2 Impending Arrival Report (IAR)
3 Bay Plan (BAPLIE) submission
4 Manifest Sea
5 Manifest Air
6 Permits
7 Import Declaration Form (IDF)
8 Payments
20 Key Functionalities/Modules
Implemented
9. Marine Cargo Insurance
10. Cargo Release
11. Reports
12. User Admin
13. Integration with Kenya Revenue Authority systems
14. Integration with Kenya Ports Authority Systems
15. Integration with KEPHIS System
16. Integration with HCDA
17. Dynamic Risk Management
18. Security Bonds
19. Duty Remissions
20. Declaration Data Transmission
20 Modules Implemented
• Average number of processes/steps in processing clients
applications has reduced by almost 50%.
• Average number of documents required for processing
applications has reduced by about 30 – 50%.
• Electronic approval of permit - approval from any location
resulting to time reductions
• Electronic means of payment - contributed to faster processing
& issuance of permits;
• Removal of need to physically visit the PGA’s resulting to time
and cost savings for both government officers and private
sector employees.
• PGA’s noting less crowding at offices for applications resulting
to orderly and manageable operations;
Achievements
IFC/WB Assessment Report by IFC Consultants 24 – 28 October 2016
• Reduction in use of paper and resulting cost savings;
• Responsiveness of KENTRADE to address support calls
and, for the private sector having a single point of
contact for any type of problem is of great benefit;
• Removal of potential to falsify documents, PGA noting
improved security and no need to question permits
issued through TradeNet, and therefore further speeding
up processing.
Achievements cont…
IFC/WB Assessment Report by IFC Consultants 24 – 28 October 2016
TradeNet System Assessment
To quote some of the conclusion verbatim:
“By any measure the implementation of the Kenyan
Electronic Single Window must be deemed successful.
The project has not only implemented a regulatory
single window which meets nearly all criteria as defined
under UN/CEFACT’s Recommendation No. 33 and 35
for a single window, but it has done so with a satisfied
client base”
IFC/WB Assessment Report by IFC Consultants 24 – 28 October 2016
“A single window solution is truly not just an IT solution but
an organizational challenge, with a fundamental need to put
in place a multi-faceted service organization that is
authorized and enabled to meet the needs of all its client,
public and private alike. Kenya has met this challenge and
KENTRADE is a model for other countries embarking on
the path of a single window”
TradeNet System Assessment Cont…
IFC/WB Assessment Report by IFC Consultants 24 – 28 October 2016
Time saved after Single Window
CDC Consulting Group Study commissioned by KENTRADE – July 2016
Average Cost Savings per System User
CDC Consulting Group Study commissioned by KENTRADE – July 2016
Average Explicit Cost Savings
Type of service
Average cost
incurred
before KTNS
Average cost
incurred after
KTNS
Mean cost
savings
Demurrage
charges (KES) 168,636/- 119,864/- 48,773/-
Warehousing
charges (KES) 760,167/- 726.083/- 34,083/-
Stationary (KES) 37,957/- 18,732/- 19,225/-
Payment to the
messenger 39,539/- 14,492/- 26,049/-
Payment to the
clerk (KES) 17,500/- 8,250/- 9,250/-
Printing (KES) 40,526/- 13,998/- 26,529/-
Photocopying
(KES) 33,438/- 10,422/- 23,016/-
CDC Consulting Group Study commissioned by KENTRADE – July 2016
Challenges Mitigation
1. Lack of understanding among the
stakeholders of the value of the projectChange Management
2. Implementation budgetary Constraints Close Government and Development
Partner Involvement
3. Silo mentality - disjointed supply chain
activities among different Government
Agencies
Change Management
4. Complicated procedures and
document requirements with a vast
majority insisting on status quo.
Business Process Re-engineering
5. Changes in scope resulting to costly
Change Requests.• Thorough RequirementsValidations
• Involvement of SME Consultant
Implementation Challenges
Challenges Mitigation
1. Inadequate legal framework. KENTRADE is working on a Bill to
repeal conflicting Laws
2. Conflicting mandates by some
GovernmentAgenciesEscalation of conflicting mandates to
respective Ministries for remedial
actions.
3. Recurrent budgetary Constraints Introduction of a self-sustaining
business model
4. Poor ICT skills and infrastructure to
assure acceptable system availability.
Implementation of redundant
infrastructure and secondary sites
5. ICT Security issues (Due to centralized
information sharing and electronic
documents).
Implementation information security
best practices
6. Slow resolution of issues - limited
workarounds in automated environment
Signing of Service Level Agreements
(SLA) amongst PGA.
Operational Challenges
Institutional Improvements
1. Enactment of the KenTrade bill
2. Introduction of a self-sustaining business model
3. Improvement of the computing infrastructure
and putting in place a Business Continuity Plan.
4. Continued capacity building of the KENTRADE
staff in terms of IT, trade facilitation reforms
and single window development.