Customs clearance procedures and Cross-border Logistics performance in East Africa: a case of Malaba-Busia and Taveta-Holili one-stop Border Posts.

Abstract

The regional trading blocs' economic integration, especially the East African Community (EAC) with its four noncoastal countries (Uganda, Rwanda, South Sudan and Burundi), depends heavily on an effective and dependable cross-border logistics performance. Even though each of the member countries has seen economic growth, the region still lacks optimal economic integration, and as a result, cross-border logistics costs in the region are among the highest globally, primarily because of ineffective customs clearance procedures. This study aimed to investigate the impact of four components of customs clearance processes on the effectiveness of cross-border logistics: trade facilitation, coordinated border agencies, one stop border strategy, and customs harmonization (delivery time, competitive advantage, and cost). The research was conducted using a cross- sectional design, and information was gathered from 376 participants at the Taveta-Holili, Busia, and Malaba one stop border posts via key informant interviews and closed-ended questionnaires. For data analysis, multiple regression modeling and descriptive analysis were employed. The results show that the One Stop Border Post strategy (β = 0.636, p<0.05), coordinated border agencies (β = 0.261, p<0.05), trade facilitation (β = 0.245, p=0.000), and customs harmonisation (β = 0.211, p<0.05) have positive and significant relationships with cross-border logistics performance. The study concluded that more efficient customs clearance procedures result in improved cross-border logistics performance. The report suggests that the East African Community (EAC) secretariat should endeavour to achieve greater integration and coherence of the customs system by fully implementing the East African Community Single Customs Territory.