Effect of the Electronic Customs Risk Analysis System on Trade Facilitation among Clearing and Forwarding Companies at Malaba Border Post, Kenya
DOI:
https://doi.org/10.70619/vol6iss2pp29-41-769Keywords:
Electronic Customs Risk Analysis System, Trade Facilitation, Clearing and Forwarding CompaniesAbstract
Trade facilitation is the streamlining and harmonization of international trade procedures that impede the flow of goods, people, and vehicles across international borders, resulting in increased business costs, delays in goods clearance, and reduced commodity flows. One of the main tools for ensuring that trade facilitation is completely achieved across national borders is the One-Stop Border Post. The study, therefore, was to determine the effect of the electronic customs risk analysis system on trade facilitation among clearing and forwarding companies at Malaba Border Post, Kenya. The theory that guided the study was New Trade Theory (NTT and Risk Management Theory. The study used an explanatory research design. The target population was 1086 clearing and forwarding agents in Kenya, and a sample size of 292 respondents. Since 292 of the targeted 254 respondents fully completed and submitted their responses. Structured questionnaires were used to collect primary data, which were analyzed using descriptive and inferential statistics. The study found that the electronic customs risk analysis system had a significant and positive effect on trade facilitation (β = 0.480, p =0.000). Given the positive effect of the electronic customs risk analysis system on trade facilitation, the study recommends that government agencies, such as the Kenya Revenue Authority (KRA), develop policies that mandate and incentivize data sharing among government departments and private-sector stakeholders. This will enrich the risk engine's data pool, enabling more precise targeting of high-risk consignments and faster clearance for legitimate trade. Future studies should investigate how variables such as digital literacy impact facilitation of trade activities at border clearing and forwarding companies at Malaba Border Post, Kenya.
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