The Hub interviews with Customs and Ministry of Commerce officials throughout the region have clearly identified a capacity problem in terms of understanding the implications of the upcoming CUs.

Overlapping, redundant, and confused regional trade and integration schemes result in trade regime coordination problems. A lack of planned tariff rates and customs regulation harmonization between SACU, the EAC CU, CEMAC, and the COMESA CU create the potential for triangulation and trade diversion problems.

Finally, regional customs legislation is often difficult to access and to come to grips with, and there is a poor understanding of customs regulations and export documentation requirements by the private sector.

The Northern Transport Corridor (NTC) is a critical transportation corridor in the ECA region. At the starting point of the NTC, the Port of Mombasa, the inspection and release of cargo is time-consuming, requiring several days, as Kenyan Customs have not implemented any risk management system.

The lack of harmonization along the Corridor means multiple police checkpoints, customs clearances, standards and other inspections, and paperwork and bonds along the way. Transit time between Mombasa and Kampala can take up to 6 weeks. Democratic Republic of Congo (DRC) Customs are essentially "non-existent" due to lack of institutional capacity and any Kinshasa Government control.

However, there are signs of improvement. Under competitive pressure from the Port of Dar Es Salaam, which seeks to become the conduit for goods flowing in and out of Central Africa, there has been much improvement in streamlining forms and computerization in Kenya and Uganda, as well as in synchronization of procedures and inspections. Cargo now crosses the Kenya-Uganda border sealed and is checked at its final destination.

Scanning of containers at the Kenya-Uganda border is to be introduced. The EAC Transportation Harmonization Committee has facilitated the move towards better customs harmonization. Furthermore, as a result of a Ugandan Customs Deregulation Roadmap completed in early 2002, Ugandan Customs are now using ASYCUDA. There has also been a shift to use of the WTO Valuation system along the NTC.

Logistics and customs modernization are critically important to competitive advantage. Efficient and transparent customs valuation and administration is critical to the free flow of goods and services borders, the creation of an enabling customs environment for business, and the reduction of transaction costs. Although there has been some work on the Northern Corridor trade facilitation framework in the first year of ECA AGCI Hub activity, the Hub has not yet begun targeted technical assistance activities in the area of customs harmonization.

The Team we are proposing is exceptionally experienced in customs reform, as The Hub is currently undertaking the modernization of automation of the US Customs Service and our Team also includes Crown Agents, the leading customs consulting firm in Africa, with several permanent offices in the ECA region.