BAFICAA: a template for private sector contributions to customs reform
Presentation at Aid for Trade: One year onODI, 24 May 2007Martin Summers, British American Tobacco
BAFICAABusiness Action for Improving Customs Administration in AfricaSee http://www.businessactionforafrica.org – trade, or e-mail me at [email protected] 0207 845 1193
BAFICAA – in brief
Business Action for Improving Customs Administration in Africa (BAFICAA), led by Unilever, British American Tobacco, SITPRO, DiageoDeveloped from the private sector working group on trade facilitation that informed the Commission for Africa report (see pp. 257-262)- Sub-Saharan Africa suffers from highest average customs delays in
the world, but significant progress in some countries
BAFICAA’s survey and recommendations came out in summer 2006East Africa Community: country workshops in EAC with private sector, then meetings with customs officials, coordinated by PWC- Regional workshop in Arusha on Monday 21st May, with country and
regional customs officials and private sector task forces
BAFICAA approach being tested in Nigeria, led by Maersk; Additional interest in BAFICAA-inspired projects in Southern and West Africa
Results in EAC
21st May regional workshop in Arusha:- Director of Customs and Trade for EAC, Peter Kiguta- CEO of ICF- CEO of East Africa Business Council- Representatives from country revenue authorities- Representatives from the country private sector task forces
Agreed outputs:1. Need for uniform Fast Track customs services across EAC for the compliant and low risk
taxpayers and traders (country efforts are fragmented and not consistent)- PriceWaterhouse Coopers will prepare and submit how a fast rack system could work
in EAC, for action by EAC via EABC2. Need to fully automate customs processes and procedures
- Customs needs to liaise with private sector to re-engineer processes3. Training should be coordinated at the EAC level4. Need for other bodies to be brought into BAFICAA to better facilitate regular dialogue
between customs and the private sector5. Need for a service charter between customs and the private sector
Why BAFICAA?
Faster, more predictable and efficient customs mean:- Better business planning- More scope for regional/global supply chain integration- Lower inventories- Less delays in revenue generation (getting product to market faster) and
operations (spare parts get through quicker)- Higher government revenues- A better investment climate- Less bribery and corruption
Many African countries have already made significant progress with customs reform (e.g. South Africa, Mozambique) BUT:
- Private sector input low and regular dialogue rare, as are targets (except for raising revenue)
- Automated systems have not always removed ‘paperwork delays’- Customs does not always view traders as customers
Why BAFICAA works – the process ensures local buy-in and input from government and the private sector