E. African states to install single electronic cargo system
27 January 2016, 08:29
Nairobi - Kenya, Uganda and Rwanda plan to install an electronic cargo tracking platform in order eliminate tax evasion, officials said on Tuesday.
Kenya Revenue Authority (KRA) Commissioner General John Njiraini said the platform will enable the three countries to simultaneously track each transit cargo consignment on real-time basis.
"This initiative once implemented should have a substantial impact in reducing loopholes exploited by unscrupulous traders intent on evading the payment of their fair share of taxes," Njiraini said during celebrations to mark the International Customs Day.
The theme of this year's Day was reflecting on the World Customs Organization's (WCO) focus on technology as the driving tool for enabling the global customs community to further enhance efficiency.
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Njiraini said that the cargo tracking system will rely heavily on the use of technology in a bid to curtail the diversion of goods meant for transit to Kenya's landlocked neighbors.
He noted that the cargo tracking platform will enable seamless visibility of transit cargo along the Northern Corridor countries of Kenya, Uganda and Rwanda.
The five member states of the East African Community are also at an advanced stage of developing a single common Customs Management System (iCMS).
The KRA chief said that the system will provide a single platform for transacting international trade activities within the regional bloc, and Kenya is fast tracking the implementation of the new iCMS.
"It will have more superior features than the previous one and so it will aid in improving in risk management, security targeting and valuation of cargo," he said, adding that the system will be fully operational in the next 18 months.
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