SINGLE WINDOW,Nairobi Sensitization

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    Progress of the Kenya Electronic

    Single Window System Project

    Presentation to: NAIROBI COUNTY STAKEHOLDERSSENSITIZATION WORKSHOP

    Venue: Ole-Sereni Hotel, Nairobi

    Date: Thursday, July 25, 2013

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    Presentation Outline

    i. Background

    ii. KENTRADE

    iii. Project Objective

    iv. System Implementation

    v. Key Milestones

    vi. Benefits

    vii. Project progressviii. Road Map

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    Problem StatementTrade procedures in Kenya have been inefficient, lengthy and slow resultingin high cost of trade transactions/doing business. The main reasons are asfollows:

    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 manytimes.

    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.

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    Inefficient processes addressed by theKenya Electronic Single Window System

    Chamber of Commerce

    Warehouse

    Carriers

    KRA

    KTB KPA PPB

    Other relatedgovernment agencies

    Importer/Buyer

    Exporter/Seller

    Freight Forwarder/Shipping

    InsuranceCompany

    Inspection Agents

    KEBS Many government regulatory agencies

    Numerous lodgments

    Many Duplicated data elements

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    Cargo Dwell Time

    GovernmentEnterprises

    Present Single Window Objective

    8 days maximum - 3 days

    5 days

    2 days

    maximum - 1 day

    maximum - 1 hr.

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    Results of Inefficiencies

    Tons of trade documents

    Congestion at Borders & Port

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    Problems of paper based tradeGovernment

    Complex regulation Lack of transparency Difficult monitoring

    Loss of Revenue(Corruption)

    DecreaseNational Competitiveness

    DecreaseNational Competitiveness

    High transaction cost Long lead time

    Incorrect processing

    Enterprises

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    Doing Business RankingDrop in Kenyas ranking Doing Business Index:

    Doing Business 2013

    RankDoing Business 2012 Rank Change in Rank

    121 117 -4

    The

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    Trading Across BordersDB 2013 Rank DB 2012 Rank

    Change in Rank

    148 142 -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 theSingle 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

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    Single Window System models options

    Kenya Sugar

    Board

    PCPB

    Trader

    Option 1: Integrated

    Internet

    Licensing

    KNSWS

    SingleAutomatedSystem

    HCDA

    Chamber of

    CommerceIndividual data elements are submittedonce to a single entry point (integratedautomated system) to fulfill all import,

    export and transit-related regulatoryrequirements

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    Benefits- Savings to the EconomyBased 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-Increasedcapacity utilization

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    Benefits Cont

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    Benefits Cont Lodgment of documents from anywhere

    any time

    Greater efficiency, accountability andreduced cost of doing business

    Integration/Interface with the RegionalElectronic Single Window System

    Greater coordination of GovernmentAgencies-KENTRADE

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    Project Objective Establish an electronic platform to integrate

    stakeholder systems in cargo clearance process

    Facilitate International trade in Kenya byreducing delays and lowering costs associated

    with clearance of goods at the Kenyan borders,while maintaining the requisite controls andcollection of levies, fees, duties and taxes,

    where applicable, on imports or exports.

    SWS is an Enabler project under the EconomicPillar of Vision 2030

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    System Implementation Cabinet approved a G2G agreement for the Consultancy,

    Acquisition, and Implementation of the National Electronic

    Single Window System from Singapore CooperationEnterprise (SCE) May 2012

    KENTRADE as the implementing agency entered into a

    contract with SCE for the Supply and Implementation of theSystem which includes a 3 year maintenance period afteroperationalization - September 2012

    Kick off meeting between KENTRADE and the vendor for theImplementation of the Single Window System was held onthe - October 2012

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    Work PlanMilestone Date

    Signing of the Implementation contract with

    vendor

    Completed

    Kick off Meeting with vendor and stakeholders Completed

    Business Process Re-engineering of stakeholder

    processes

    Completed

    System Design Completed

    Software Development July 2013

    Training of Trainers July 2013

    User Acceptance Tests Aug 2013

    Training of Stakeholders Sept/Oct 2013

    System Pilot Oct 2013

    System roll out 31st Oct 2013

    Sensitization of Stakeholders Continuous

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    ROAD MAPSystem Implementation Kick off - October 2012

    System Go-live - 31st October 2013

    Manifest Module -Sea & Air

    Declaration Module-Sea & Air

    License & Permit Module-Tea Board, HCDA and

    Pharmacy & Poisons Board

    E-Payment Facility

    Integration with SIMBA

    Integration with KWATOS

    Integration with KEBS

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    ROAD MAP

    Integration with Weighbridges

    Integration with OGAs

    Dynamic Risk Management

    Road Manifest Module

    Road Declaration Module for Land

    Integration with the National Electronic

    Payment System (NPS) Gateway

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    Presentation on Proto-types

    OGA Portal To be used for lodgementof applications for permits and licences

    Tradenet Portal To be used forlodgement of Declarations and Manifests

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    Thank youFacebook: www.facebook.co/kentradeG2B

    KENTRADE TV: www.youtube/kentradeG2B

    Twitter: @kentrade_G2B

    Website: www.kentrade.go.ke