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 martin_summers@bat.com 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