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Deferral of Payment System was launched in 2018 saving 8hrs on border compliance time

The Custom Commission has fully implemented a deferral of payment system for imported shipments. Prior to this reform there was huge congestion at ports with more than 10,000 containers being held back for more than 2 years and subsequently leading to container confiscation. Since the implementation of the payment deferral system as of December 2018, importers with tax and duty of about Ethiopian Birr 133 million have cleared using bank guarantee. The new system gives relative financial freedom to importers who may fall short on fees as well as reduces border compliance time and cost by 8 hours and 20 USD.

Risk management and Risk based inspection

One of the major issues ports faced was significant congestions due to slow clearance and inspection which required shipments to individually get scanned or spare parts be inspected manually to clear customs. As a solution to this there are 2 new reforms in effect to reduce the congestion: (1) Continued Improvement vis-à-vis import risk management process and (2) Risk-based inspection for cargo scanning machine. The implementation of risk-based inspection of cargo, which has been in effect since May 2018, has reduced border clearing time of import and export shipments by 3 hours. Importing spare parts is one where special emphasis was given as spare parts were cleared through individual physical inspection without any risk-based criteria in the previous procedure. By placing spare part shipments in the risk management process, time and cost incurred have been significantly reduced by 16 hours and 100 USD respectively.

Risk management and Risk based inspection

One of the major issues ports faced was significant congestions due to slow clearance and inspection which required shipments to individually get scanned or spare parts be inspected manually to clear customs. As a solution to this there are 2 new reforms in effect to reduce the congestion: Continued Improvement vis-à-vis import risk management processand Risk based inspection for cargo scanning machine. The implementation of risk based inspection of cargo, which has been in effect since May 2018, has reduced border clearing time of import and export shipments by 3 hours. Importing spare parts is one where special emphasis was given as spare parts were cleared through individual physical inspection without any risk-based criteria in the previous procedure. By placing spare part shipments in the risk management process, time and cost incurred has been significantly reduced by 16 hours and 100 USD respectively.

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