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Progress of the Kenya Electronic Single Window System Project

Presentation to: Venue: Date: Briefing on the System Implementation of the KNESWS Nyali Beach Hotel, Mombasa 30th September 2013

Presentation Outline
i. ii. iii. iv. v. vi. vii. viii. Background KENTRADE Project Objective System Implementation Key Milestones Benefits Project progress Road Map

Problem Statement
Trade procedures in Kenya have been inefficient, lengthy and slow resulting in high cost of trade transactions/doing business. The main reasons are as follows: Many stakeholders are involved in the cargo clearance process. Stakeholders exchange many documents among themselves. Stakeholder ends up sending the same document to each other many times. Exchanges are in hard copy form and in most cases, processing of information is carried out manually.

Results; Delays in cargo clearance, Perennial congestion at the port, Underutilization of port facilities Long truck queues at the border posts Corruption Loss of competitiveness for the country.

Inefficient processes addressed by the Kenya Electronic Single Window System


KTB KPA PPB Other related government agencies

KRA
KEBS

Many government regulatory agencies


Inspection Agents

Numerous lodgments
Importer/Buyer Freight Forwarder /Shipping

Many Duplicated data elements

Exporter/Seller

Carriers

Insurance Company

Chamber of Commerce Warehouse

Cargo Dwell Time


Enterprises Present Government Single Window Objective

8 days 5 days 2 days

maximum - 3 days maximum - 1 day maximum - 1 hr.

Results of Inefficiencies
Congestion at Borders & Port Tons of trade documents

Problems of paper based trade


Enterprises Government
Complex regulation Lack of transparency Difficult monitoring Loss of Revenue (Corruption)

High transaction cost Long lead time Incorrect processing

Decrease National Competitiveness

Doing Business Ranking


Drop in Kenyas ranking Doing Business Index: Doing Business 2013 Rank
121

Doing Business 2012 Rank


117

Change in Rank
-4

Trading Across Borders

DB 2013 Rank DB 2012 Rank


148 142

Change in Rank
-6

Source: http://www.doingbusiness.org/data/exploreeconomies/kenya/#

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The Solution -Single Window System


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

Kenya Revenue Authority Kenya Ports Authority Other Control Agencies

Responses from various Authorities and Financial Institutions are returned to Trader or Agent

Banks

Single Window System models options


Option 1: Integrated
PCPB

Trader
Internet Licensing

KNSWS Single Automated System

Kenya Sugar Board

Chamber of Commerce
Individual data elements are submitted once to a single entry point (integrated automated system) to fulfill all import, export and transit-related regulatory requirements

HCDA

Benefits- Savings to the Economy


Based on the volume of goods imported/exported: First 3 years US$ 150m and US$ 250m per annum Thereafter - US$ 300m to US$ 450m per annum

Arising from improved services e.g.


Reduced trade transaction costs Reduced delays Reduced Inefficiencies Reduced corruption Reduced manual documents/paperwork Reduced cost of capital ( JIT Concept) Reduced demurrage Improved space utilization at ports/Airports-Increased capacity utilization

Benefits Cont

Project Objective
Establish an electronic platform to integrate stakeholder systems in cargo clearance process Facilitate International trade in Kenya by reducing delays and lowering costs associated with clearance of goods at the Kenyan borders, while maintaining the requisite controls and collection of levies, fees, duties and taxes, where applicable, on imports or exports. SWS is a Flagship project under the Economic Pillar of Vision 2030

System Implementation

System Implementation
Cabinet approved a G2G agreement for the Consultancy, Acquisition, and Implementation of the National Electronic Single Window System from Singapore Cooperation Enterprise (SCE) May 2012 KENTRADE as the implementing agency entered into a contract with SCE for the Supply and Implementation of the System which includes a 3 year maintenance period after operationalization - September 2012 Kick off meeting between KENTRADE and the vendor for the Implementation of the Single Window System was held on the - October
2012

Revised Project Implementation Plan


Milestone 1 2 3 4 Kick off Meeting Business Process Re-engineering System Design Software Development Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan 12 12 12 13 13 13 13 13 13 13 13 13 13 13 13 14

5 Training of Trainers 6 7 User Acceptance Tests Training of Stakeholders

System Roll out 8 Pre-clearance documents 9 Declaration submission

SERVICES TO GO-LIVE 31ST OCTOBER 2013


S/N 1. 2 3 Services/Modules IAR/AAR Manifest Submission (Sea & Air) OGA Permits i. ii. iii. iv. v. vi. vii. 4 5 6 7 8 9 10 KEBS KEPHIS HCDA TBK PPB VET Port Health

ePayment (Over the bank counter, prepayments)for IDF & Permits) -NPS Import Declaration Form (IDF) Delivery Order Cargo Release Security Bonds Integration with KPA KWATOS Integration with KRA SIMBA/ MMS

ROLL OUT CONT DEC 2013


S/N Services/Modules 1 2

SERVICES TO GO LIVE 31ST

Declaration Submission ( Sea, Air & Land) Declaration Integration with SIMBA

Copyright 2012 Private & Confidential

ROLL OUT CONT.


System Go-live Phase 2 - April 2014 Integration with OGAs Dynamic Risk Management Road Manifest Module Declaration Module for Land

Strategy for 31-Oct Go Live

31-Oct-13 System will be soft launched (System turn on) KESWS Portal launched with live data on portal 1st Nov Rollout begins Live transactions from selected group Suggested group (AEOs) Start with key AEOs for ready modules (IAR, Manifest, IDF & Permits, Delivery Orders.etc..) Monitor system for next 30 days and increase coverage Phased rollout to all groups/stations

2011 CrimsonLogic Pte Ltd

PHASE 1A GO-LIVE KEY TASKS & PLAN


S/N Key Milestones/Activities Start Date End Date Organization Remarks 1 Production Infrastructure and application setup Production data setup & preparation (Includes prerequisites for go live for ex IAR, etc) Escalation matrix, help desk, call center etc. 30-Aug-13 18 -Sep-13 KENTRADE

23-Sept-13

18th Oct 13

KENTRADE

N/A

18th Oct 2013

KENTRADE,

Work in progress.

Training of key users who will pilot the system

21st Oct

25th Oct 2013

KENTRADE, KRA/ GOK Agencies, Shipping lines, CFSs, C & Fs KENTRADE All KENTRADE, KRA/ GOK Agencies, Shipping lines, CFSs, C & Fs KENTRADE, KRA/ GOK Agencies, Shipping lines, CFSs, C & Fs

Nairobi and Mombasa

5 6 7

Registration of users/ issue of user names and passwords Go live Pilot with key users

21st Oct 31-Oct-13 1st Nov

29th Oct 2013 31-Oct-13 30th Nov 2013

End user training at various stations

4th Nov

14th Dec 2013

Msa, Nrb, Malaba, Namanga, Busia, TavetaI, sebania

Key users for Piloting


Shipping lines 9 Manifest , Baplie, IAR/AAR, Delivery order Process E-payment process Clearing and Forwarding agents - 22 Permit Application Security Bond process IDF application Cargo release process E- payment process Container Freight Stations - 6 Manifest Process Delivery order process Cargo clearance process Insurance /Banks - 3 Security bond process i. Government agencies 10 ( KENTRADE, KRA, KPA, KEBS, KEPHIS, HCDA, TBK, PPB, VET, Port Health) Manifest/ IAR/ BAPLIE process Permit approval process Bond approval process Cargo release process E payment process

End User Training


S/No Location Applicants Trainees Venue End User Training 1 Mombasa 1074 Bandari College 4 Nov 14 Dec
th th

2 3 4 5 6 7 8

Nairobi Isebania Malaba Taveta Busia Namanga Others No specific Region Total

640 22 64 18 47 18 84 38 2005

KEBS, ICD & KENTRADE Border point Hotel Jacki Hotel Green Park Hotel Blue York Hotel Namanga River Hotel Work in progress Work in progress

4th Nov - 14th Dec 4th - 8th Nov 8th 29th Nov 4th to 8th Nov 18th - 29th Nov 4th - 8th Nov TBP TBP

Thank you
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