## _wp11184

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---

### Purpose and methodology
- Purpose:
  - To take stock of Customs administration reform and modernization in Anglophone Africa, identify gaps, and propose a way forward.
  - Present progression of key reform and modernization initiatives since the early 1990s, assess gaps relative to modern Customs agencies, and draw implications for the design of reform programs and technical assistance (TA).
  - Notes global shift since the early 1990s from trade transactions management for revenue purposes to trade facilitation, protection of society, and security of the international trade supply chain.
  - Emphasizes duty revenue (and other taxes) from international trade remains a critical contributor to national budgets in Anglophone African countries.
- Methodology / approach:
  - Largely a qualitative study.
  - Relies on secondary information comprising IMF country TA reports and review of relevant Customs administration country and other international organizations literature.

### Key findings — high level
- Reform pace and coverage:
  - Customs administration reform and modernization initiatives in Anglophone African countries generally lag behind international good practice and need acceleration to compete effectively in the global trade arena.
  - Most prominent reform initiatives undertaken: Tariff reform; Automation of Customs processes.
  - Outstanding reforms include: organizational structure development (particularly strengthening headquarters oversight of operations); use of intelligence and risk management approaches to improve compliance; improving trade facilitation arrangements.
- Obstacles to reform (FAD field missions and anecdotal evidence):
  - Low levels of political commitment.
  - Human resource capacity and skills gaps.
  - Inadequate resources to finance the reform effort.

### Anglophone Africa profile and context (selected statistics)
- Definition: Botswana, The Gambia, Ghana, Kenya, Lesotho, Liberia, Malawi, Mauritius, Namibia, Nigeria, Rwanda, Seychelles, Sierra Leone, South Africa, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe.
- Population:
  - 1990 total: about 220 million people (4.2 percent of the world population).
  - 2009 estimate: about 335 million or 4.9 percent of the world population, an increase of 50 percent over 1990.
  - Country population range: 87,000 in Seychelles to 150 million in Nigeria.
- Income and GDP per capita:
  - World average GDP per capita in 2008: about US$9,000.
  - Anglophone African country average GDP per capita: about US$2,300.
  - Median country: Lesotho at US$804.
- Economic structure (2008 estimates, averages):
  - Agriculture about 25 percent; industry 28 percent; services 47 percent.
- Tax to GDP:
  - Average non-oil tax to GDP ratio: about 21 percent.
  - World average: 23 percent.
  - Countries above 20.5 percent include: Botswana, Ghana, Lesotho, Namibia, Seychelles, South Africa, Swaziland, and Liberia.
  - Zimbabwe’s non-oil tax contribution: 3.3 percent, with expectations of recovery to above 20 percent in 2010 onward.
- Governance indicators (1998 → 2008 average):
  - Governance within Anglophone African countries improved slightly from -0.43 to -0.30 between 1998 and 2008.
  - Better performers: Mauritius, Botswana, Namibia, South Africa.
  - Poorer performers: Sierra Leone, Liberia, Nigeria, Zimbabwe.

### Zimbabwe — special note (selected facts)
- Real GDP shrank by more than 40 percent during 1999–2008.
- Inflation estimated at 500 billion percent in September 2008.
- October/November 2008: Zimbabwe dollar disappeared from circulation; pricing shifted to foreign currency units (mostly U.S. dollar and South African rand).
- Dollarization helped stop hyperinflation.
- Government of national unity formed in February 2009 started addressing recovery under the Short-Term Emergency Recovery Program (STERP).

### Fiscal role of Customs administrations
- Customs administrations collect: import duties; value added or sales taxes on imports at country borders; manage export transactions and related documentation.
- Certified import and export declarations enable VAT-registered traders to claim input tax or refunds when filing VAT returns.
- External inference cited: “About a third of non-resource tax revenue in [Sub-Saharan Africa] SSA comes from trade taxes...”

### Table 2 highlights — Percentage of Import Duties to Total Tax Revenue (country averages 1994-2008 and subperiods)
- Selected country-level figures (Average 1994-2008; 1994-2000; 2001-2005; 2006-2008):
  - South Africa: 2.2 3.5 0.8 1.2
  - Tanzania: 12.2 14.5 10.8 9.4
  - Kenya: 13.4 13.7 14.2 11.4
  - Uganda: 16.2 21.2 11.7 12.0
  - Zambia: 16.7 22.0 12.0 12.2
  - Malawi: 16.9 21.3 13.3 12.7
  - Rwanda: 22.8 29.2 18.4 15.2
  - Ghana: 16.4 17.0 16.1 15.5
  - Mauritius: 27.3 32.6 26.4 16.8
  - Zimbabwe: 15.2 17.4 10.4 17.9
  - Nigeria: 28.6 35.1 25.3 18.7
  - Seychelles: 37.5 45.3 37.3 19.6
  - Botswana: 19.9 19.9 16.7 25.4
  - Gambia: 29.0 29.2 30.8 25.7
  - Namibia: 35.4 32.6 33.9 44.2
  - Liberia: 35.6 29.2 33.9 46.8
  - Sierra Leone: 50.1 49.6 52.5 47.2
  - Swaziland: 56.6 52.7 56.9 65.1
  - Lesotho: 61.7 63.9 56.0 65.9
- Aggregates (as presented):
  - All Anglophone Africa: 27.0 28.9 25.1 25.4
  - SACU countries 2/: 35.1 34.5 32.9 40.3
  - Non-SACU Anglophone Southern Africa 3/: 19.0 23.3 15.5 14.9
  - Anglophone East Africa 4/: 20.4 24.8 18.5 13.5
  - Anglophone West Africa 5/: 31.7 32.0 31.7 30.8
- Notes:
  - 1/ Sorted on 2006-2008.
  - 2/ Botswana, Lesotho, Namibia, South Africa and Zambia.
  - 3/ Malawi, Mauritius, Zambia and Zimbabwe.
  - 4/ Kenya, Rwanda, Seychelles, Tanzania and Uganda.
  - 5/ The Gambia, Ghana, Liberia and Nigeria.

### SACU revenue-sharing implications
- SACU (1910 Agreement) revenue-sharing:
  - Customs revenue transfers from South Africa to other SACU members are based on projected collections for the common revenue pool and subject to ex post adjustments.
  - Because SACU countries share from a pool including import excise duties, non-SACU country ratios may provide a clearer picture of import tariff collections as a share of total tax revenue.
- Reported non-SACU country range: 12.2 percent (Tanzania) to 50.1 percent (Sierra Leone).
- Non-SACU Anglophone Southern Africa group had the lowest average import duty collections to total tax revenue of 19.0 percent over the period.

### Characteristics of modern Customs administrations (reference points and benefits)
- Reference: Revised Kyoto Convention.
- Typical characteristics:
  - (1) self-assessment;
  - (2) use of risk-based approaches to compliance management;
  - (3) a service orientation with engagement and swift dispute resolution;
  - (4) full automation of transactions processing and management information support;
  - (5) extensive use of trader segmentation for tailored compliance and facilitation strategies.
- Expected benefits from reform (Box 1):
  - Increased government revenues;
  - Overall reduction in costs of doing business for stakeholders;
  - More effective detection of non-compliance using risk-based approaches;
  - Improved security of international transactions;
  - Simplified, transparent and faster clearance procedures;
  - Increased trade and enhanced competitiveness;
  - Better coordination between Customs and other border agencies;
  - Reduced rent-seeking opportunities.

### Conformity with international conventions and standards (key facts)
- HS code: as of end-July 2010, 138 countries worldwide acceded; 16 of 19 Anglophone African countries had formally acceded. Exceptions: The Gambia, Seychelles, Sierra Leone (apply HS operationally but not acceded). Of the 16 acceding countries, only Kenya and Liberia used HS 2002 rather than HS 2007; Kenya notified WCO on HS 2007 in July 2010.
- Revised Kyoto Convention: up to January 2010 had 68 signatories; Anglophone Africa signatories include Botswana, Lesotho, Mauritius, Namibia, South Africa, Uganda, Zambia, and Zimbabwe.
- WTO Agreement on Customs Valuation (ACV): by June 2010, 17 of 19 Anglophone African countries were full WTO members. Exceptions: Liberia (observer), Seychelles. The Gambia, Liberia, Nigeria, Seychelles still using Brussels Definition of Value; other 15 using ACV. SACU members, Malawi and Zimbabwe implemented ACV in January 1995. SACU members use FOB country of export as valuation base; others use CIF value at destination.
- WCO SAFE program: as of May 2010 all 19 expressed intention to implement SAFE. Phase I diagnostic missions conducted in all except Liberia and Seychelles. Phase II assistance being provided to 12 of 17 Phase I beneficiaries (excluding Botswana, The Gambia, Namibia, Sierra Leone, Zimbabwe).

### Organizational arrangements and ethics/integrity measures
- Organizational models:
  - Administratively integrated Customs and tax administrations are dominant. Exceptions: Liberia and Nigeria (separate agencies).
  - Revenue authority model began with Uganda in 1991; Ghana adopted revenue authority model in 2009.
- Observed weaknesses:
  - Headquarters operational policy functions poorly developed in many administrations; centralized approvals and limited strategic planning capacity.
- Ethics and integrity measures adopted across countries (examples):
  1. Passage of national anticorruption legislation;
  2. Creation of anticorruption agencies or Ombudsmen offices;
  3. Development of revenue agency-specific anticorruption strategies;
  4. Increased accountability through auditor general investigations and parliamentary representation;
  5. Declaration of assets by revenue/Customs staff;
  6. Creation of internal affairs units and disciplinary frameworks;
  7. Establishment of ad hoc commissions of enquiry;
  8. Prosecution of offenders.
- Control of corruption trends (1998–2008): majority struggled to contain corruption; relatively better outcomes in Botswana, Namibia, Mauritius, South Africa, Seychelles; Lesotho and Rwanda registered improvements in 2008.

### Tariff reform and revenue impacts
- Many countries rationalized, simplified, and reduced tariff bands to enhance competitiveness and reduce discretion.
- World Bank (2007) noted tariff reductions and declining trade restrictiveness in Ghana, Nigeria, Kenya, Tanzania, Zambia during 2000–06.
- Impact on revenue: average Customs and other import duties as a percentage of GDP remained flat for 1994–2008 (see Appendix II, Table 4 referenced).

### Customs processes — valuation, trade facilitation, and PCA
- ACV implementation produced mixed revenue outcomes (selected country annual customs/import duties as percent of GDP series for 1998–2005 provided for Ghana, Kenya, Mauritius, Rwanda, Tanzania, Uganda, Zambia).
- Time Release Studies (TRS) with WCO assistance conducted in Kenya (2004, 2007), Malawi (2005), Rwanda (2007), Uganda (2008), Tanzania (2005), Zambia (2007). 2007 Kenya repeat study suggested facilitation had deteriorated.
- World Bank Logistics Performance Index (2006 → 2009 selected figures):
  - Anglophone Africa average: 2.18 → 2.31 (Percentage change 6.0)
  - Sub-Saharan Africa average: 2.21 → 2.18 (Percentage change -1.2)
  - World average: 2.56 → 2.59 (Percentage change 1.5)
  - Country highlights:
    - South Africa 3.22 → 3.22 (0.0)
    - Uganda 2.21 → 2.84 (28.5)
    - Mauritius 2.00 → 2.71 (35.5)
    - Tanzania 2.07 → 2.42 (16.9)
    - Sierra Leone 1.58 → 2.17 (37.3)
    - Namibia 2.14 → 1.68 (−21.5)
    - Rwanda 1.80 → 1.63 (−9.4)
  - Observations: South Africa, Uganda, Mauritius exceeded 2009 World average rating of 2.59; worst performers included Botswana, Namibia, Rwanda.

### Risk management, PCA, segmentation, and AEO
- Risk management and PCA:
  - Generally uncommon prior to 2006 and remain nascent in many countries. Business intelligence and analytical skills weak.
  - FAD technical assistance began establishing risk functions in some countries (e.g., Kenya, Tanzania, Uganda) around 2006.
- Large importer concentration:
  - Large importers contributed 70–80 percent of Customs revenue in sample countries.
  - Sample data (2005/06 or 2006):
    - Kenya: Total importers 19,114; Large importers 609; Percent large to total importers 3.2
    - Malawi: Total importers 5,709; Large importers 201; Percent large 3.5
    - Rwanda: Total importers 7,094; Large importers 361; Percent large 5.1
    - Tanzania: Total importers 24,121; Large importers 751; Percent large 3.1
    - Uganda: Total importers 16,452; Large importers 799; Percent large 4.9
- Authorized Economic Operator (AEO) schemes:
  - Full SAFE AEO implementation very nascent.
  - 2008: Botswana, Namibia, South Africa agreed to implement fully accredited AEO program.
  - As of March 2009 only South Africa had legislated and was implementing AEO; Botswana accorded fast-track treatment without formal scheme; Namibia had facilitation elements under normal clearance.
  - Limited accredited programs started by Tanzania (2007), Rwanda and Kenya (2008), Uganda (first half of 2010).
  - EAC and SADC developing regional AEO programs.

### Pre-shipment/destination inspection (PSI/DI)
- 8 of 19 Anglophone African countries have not used PSI/DI; includes Mauritius, Seychelles, Zambia, and the five SACU countries.
- Some countries used PSI/DI then discontinued (Uganda 2002, Kenya 2005, Malawi 2007).
- Reasons for discontinuation: trader complaints about cost (about 1 percent of CIF value above threshold) and erosion of Customs officers’ valuation/classification skills.
- Mid-2010: The Gambia, Ghana, Liberia, Nigeria, Sierra Leone, Tanzania, Zimbabwe still using PSI/DI.
- PSI/DI firms partnering to manage community-based TradeNet systems (Ghana GCNet; Nigeria Global Scan TradeNet). Tanzania DI contract runs through 2011 with focus on skills acquisition.

### Coordinated border management and One-Stop Border Posts (OSBPs)
- OSBP initiatives began mid-2000s with development partner support (USAID, DfID, JICA).
- Two OSBPs opened:
  - Malaba (Kenya–Uganda) June 2006;
  - Chirundu (Zambia–Zimbabwe) December 2009.
- Operational modality: memorandum of understanding; each country processes declarations and collects its tariffs/taxes/fees.
- Malaba required cross-border automated interface between Kenya’s Simba and Uganda’s ASYCUDA via RADDEX.
- Reported Malaba improvements: reductions in clearance times from three to five days to between 20 minutes and three hours depending on inspection.

### Information technology reforms — automation, RADDEX, single window
- Automation history and current status:
  - Early adopters: South Africa (CAPE 1981); Mauritius (late 1980s, ASYCUDA); Kenya (Boffin 1989); Rwanda (early ASYCUDA 1989).
  - By mid-2010 many countries had automated; Seychelles and Swaziland automated in 2007; Sierra Leone January 2010; Lesotho and Liberia implementing as of mid-2010.
- ASYCUDA usage:
  - Of 19 countries, 14 are using ASYCUDA; Lesotho at development stage.
  - Mauritius and Ghana replaced ASYCUDA with bespoke systems (Mauritius CMS 1997; Ghana GCMS July 2003).
- Project financing and costs:
  - ASYCUDA projects mostly financed by development partners with beneficiary counterpart funding ~10 percent.
  - Early ASYCUDA implementation costs (excluding upgrades) ranged in the U$500,000–US$5 million band, depending on scope.
- Community-based networks and single window:
  - New generation applications enable single virtual points for standardized submission of data once for all regulatory purposes, typically managed by public–private joint ventures and sustained by transaction fees.
- RADDEX (Revenue Authorities Digital Data Exchange):
  - Jointly developed by Kenya and Uganda; implemented October 2007; USAID extended support.
  - Rwanda and Tanzania linked mid-2008; Tanzania and Malawi linked January 2010.
  - RADDEX enhancements since 2009 enabled cargo tracking and automatic population of ASYCUDA electronic bills of entry in Uganda.
- Observations on automation:
  - Automation catalyzed Customs reform in early 1990s by imposing discipline and project management.
  - Full utilization of automated systems’ functionality remains weak; analytical use of Customs data for risk management limited.
  - Information sharing between tax and Customs administrations still weak despite technical feasibility.

### Box 2 — Challenges in Customs automation (selected)
- Operational controls and financial management:
  - Warehouse guarantee management: manual intervention rather than automatic debits/credits.
  - Temporary imports: may lack guarantee accounts in system; offline workarounds introduce system integrity risks.
- Manifest, identification, reconciliation:
  - Some systems use package and weight as key identifiers; importer/taxpayer identification not used—risk of mis-reconciliation.
- Valuation and data integration:
  - Some systems cannot assign values by item or lack valuation reference database; separate systems and interfaces required.
- Risk management and selectivity:
  - Automatic updating of importer profiles not available; risk management approaches created manually or via offline applications.
- Reporting, access control, performance measurement:
  - Some systems lack report access levels/rights and flexible report generation for routine performance indicators.

### Corruption, integrity and modernization — observations
- All Anglophone African countries implemented some form of anticorruption strategy and are signatories to international anticorruption conventions.
- Comprehensive revenue reform and modernization programs can mitigate corruption; examples cited: Ghana, Rwanda, South Africa, Tanzania, Zambia.
- Control of corruption better in SACU countries (other than Swaziland), Mauritius, Seychelles, and Rwanda. Rwanda highlighted as a strong reformer.

### Impact of regional trade arrangements and cross-border cooperation
- Regional commitments involve preferential tariff treatment and rules of origin; capacity constraints create opportunities for origin fraud and abuse.
- Remedies suggested:
  - Better inter-Customs cooperation;
  - Strong intelligence and risk management;
  - Robust information technology systems.
- Regional electronic interfacing still nascent; RADDEX linking Kenya and Uganda cited as a recent success.
- Revenue pooling/sharing arrangements difficult in SACU and EAC (example: EAC July 1, 2010 planned change to collect customs at first point of entry postponed due to lack of agreement; South Africa called for review of SACU revenue sharing formula in early 2010).

### FAD TA context and outstanding reform areas
- FAD TA guidance (Keen 2003) centers on four areas:
  1. establishing coherent trade policies and clear legislation;
  2. adopting modern, simple procedures;
  3. increasing self-assessment with movement away from physical toward post-release controls;
  4. ensuring organizational structures and human resources practices conducive to effectiveness and integrity.
- Common weaknesses identified in FAD TA assessments (13 of 19 countries, 2006–mid-2010):
  - Risk management, PCA, advance binding rulings recognized but inadequately implemented;
  - Continued emphasis on revenue collection and high percentage of physical inspections.
- Outstanding reform agenda (summary categories and select actions):
  - Legal and regulatory: update Customs legislation; align with WTO/WCO/regional commitments.
  - Corporate governance & performance: separate operational policy planning from field operations; create headquarters function; develop multiyear strategic business plans with performance indicators; implement project governance with steering committee and full-time project manager.
  - Field operations/compliance: implement common Taxpayer Identification Number; develop valuation/classification/origin skills; strengthen intelligence and risk management units; develop trading activity risk profiles; improve cargo release times via TRS; develop transit compliance strategy; strengthen PCA and joint audits; improve debt management; strengthen coordination with domestic tax administration; conduct cost-benefit analysis before acquiring non-intrusive inspection equipment.
  - Trade facilitation: provide training and information to trading community; formalized dialogue with private sector; implement credible importer facilitation programs including AEO; enforce minimum record keeping.
  - Business processes and automation: articulate future Customs business direction; conduct business process reviews; develop Customs ICT strategy; roll out automated systems to cover at least 95 percent of the business; enhance systems from transaction-processing to decision-support and dynamic risk modules; provide access to automated systems to all Customs staff.
  - Dispute resolution: set up clear, transparent, timely dispute resolution framework mindful of costs.
  - Ethics and integrity: complete integrity diagnosis and develop integrity action plan; update codes of staff conduct; implement transparent disciplinary framework including prosecution and asset confiscation.
  - Regional integration: establish regional Customs union reform governance with steering committee and full-time project manager; pilot harmonization measures with clear benchmarks and review milestones.

### Conclusions and research gaps
- Reform progress since early 1990s relatively slow; tariff and automation reforms prominent, but comprehensive reforms with significant revenue or facilitation impacts are limited.
- Automation widely adopted (ASYCUDA predominant) but full functional use and analytics for risk management remain weak.
- Risk management principles only beginning to be implemented post-2007; automated risk management available only in basic form.
- Strategic alignment of Customs reforms with domestic tax reforms recommended to recover all taxes due as international trade taxes decline.
- A holistic and integrated tax, trade and Customs reform strategy is indispensable for significant progress.
- Areas needing further research:
  1. impact of Customs administration reforms on importation and foreign direct investment levels;
  2. extent Customs reforms supported domestic tax revenue growth amid tariff reductions;
  3. potential benefits of aligning domestic tax and Customs administration reforms;
  4. focus of future value-adding reform and TA;
  5. implementation compliance with the Revised Kyoto Convention and the Agreement on Customs Valuation.

### Appendix I & II — selected country-level data (selected highlights)
- Appendix I population triplet (Population '000 examples):
  - Botswana: 1,265; 1,991; 57.4
  - Nigeria: 96,604; 149,229; 54.5
  - Seychelles: 71; 87; 23.6
  - Uganda: 17,456; 32,370; 85.4
  - Simple average (population/data triplet): 13,945; 21,202; 52.0
- Composition of GDP and Tax as % of GDP (selected 1990/2008 and Tax as % of GDP 2008):
  - Botswana: Agriculture 1.6; Industry 52.6; Services 45.8; GDP/capita 1990 2,773; 2008 6,808; Growth 145.5; Tax as % of GDP (2008) 21.7
  - Lesotho: Agriculture 15.9; Industry 45.4; Services 38.7; GDP/capita 1990 360; 2008 804; Growth 123.3; Tax as % of GDP (2008) 58.9
  - Nigeria: Agriculture 33.4; Industry 34.1; Services 32.5; GDP/capita 1990 301; 2008 1,402; Growth 365.8; Tax as % of GDP (2008) 5.0
  - Zimbabwe: Agriculture 19.1; Industry 23.9; Services 56.9; GDP/capita 1990 840; 2008 279; Growth -66.8; Tax as % of GDP (2008) 3.3
  - Simple average composition: Agriculture 25.5; Industry 27.5; Services 47.1; GDP/capita 1990 1,093; 2008 2,274; Growth 108.1; Tax as % of GDP (2008) 20.5
- Appendix II — merchandise imports as % of GDP (selected averages 1994-2008 and % change 1994-2008):
  - Botswana average 35.1; % change 2.2
  - Gambia average 50.4; % change -30.5
  - Lesotho average 112.8; % change 13.9
  - Seychelles average 69.7; % change 178.1
  - All Anglophone Africa average 46.5; % change 0.2
- Appendix II — Customs and Other Import Duties as % of Total Tax Revenue (selected averages 1994-2008 and % change):
  - Botswana 19.9; % change 36.6
  - Lesotho 61.7; % change -6.0
  - Sierra Leone 50.1; % change 18.0
  - South Africa 2.2; % change -74.1
  - All Anglophone Africa average 27.0; % change -17.2
- Appendix Table 4 — Collected Customs Tariff Rate (selected country averages 1994-2008 and % change 1994-2008):
  - Botswana Average 1994-2008: 18.5; % change 7.3; 1994-2000: 16.8; 2001-2005: 18.1; 2006-2008: 23.4
  - Ghana Average 1994-2008: 5.6; % change -62.9; 1994-2000: 7.0; 2001-2005: 5.1; 2006-2008: 3.0
  - Liberia Average 1994-2008: 7.2; % change 1,225.2; 1994-2000: 3.0; 2001-2005: 8.4; 2006-2008: 10.8
  - Uganda Average 1994-2008: 7.8; % change -73.7; 1994-2000: 9.9; 2001-2005: 6.4; 2006-2008: 5.2
  - All Anglophone Africa Average 1994-2008: 13.1; % change -31.3; 1994-2000: 13.5; 2001-2005: 12.8; 2006-2008: 12.1
  - SACU countries Average 1994-2008: 19.5; % change 33.3; 1994-2000: 17.0; 2001-2005: 18.4; 2006-2008: 27.1

*Source: Excerpt from IMF Working Paper content unit _wp11184 (Preface, Box 1, Box 2, Appendices and associated sections) as provided in the source document.*

### Preface ................................................................................................................

### _wp11184 - Preface

### Purpose of the paper
- To take stock of Customs administration reform and modernization in Anglophone Africa, identify gaps, and propose a way forward.
- Notes the global shift in Customs administration since the early 1990s from trade transactions management for revenue purposes to trade facilitation, protection of society, and security of the international trade supply chain.
- States that Anglophone African countries have been implementing reform and modernization initiatives in their Customs administrations, with mixed results.
- Emphasizes that duty revenue (and other taxes) from international trade remains a critical contributor to the national budgets of these countries.
- Outlines the paper’s objectives: present progression of key reform and modernization initiatives since the early 1990s, assess gaps relative to modern Customs agencies, and draw implications for the design of reform programs and technical assistance (TA).

### Methodology / approach
- Largely a qualitative study.
- Relies on secondary information comprising IMF country TA reports and review of relevant Customs administration country and other international organizations literature.

### Key findings (summary)
- Customs administration reform and modernization initiatives in Anglophone African countries generally lag behind international good practice and need acceleration to compete effectively in the global trade arena.
- Most prominent reform initiatives undertaken:
  - Tariff reform.
  - Automation of Customs processes.
- Outstanding reforms include:
  - Organizational structure development, particularly strengthening headquarters oversight of operations.
  - Use of intelligence and risk management approaches to improve compliance.
  - Improving trade facilitation arrangements.
- Factors hindering reform pace (based on FAD field missions and anecdotal evidence):
  - Low levels of political commitment.
  - Human resource capacity and skills gaps.
  - Inadequate resources to finance the reform effort.

### Context and background — Anglophone Africa profile and reform context
- Definition: For this paper, Anglophone African countries include: Botswana, The Gambia, Ghana, Kenya, Lesotho, Liberia, Malawi, Mauritius, Namibia, Nigeria, Rwanda, Seychelles, Sierra Leone, South Africa, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe.
- Population:
  - In 1990, total Anglophone Africa population was about 220 million people (4.2 percent of the world population).
  - Estimates for 2009 put the population at about 335 million or 4.9 percent of the world population, an increase of 50 percent over 1990.
  - Country population range: 87,000 in Seychelles to 150 million in Nigeria.
- Income grouping:
  - World average GDP per capita in 2008 is estimated at about US$9,000.
  - Anglophone African country average GDP per capita at about US$2,300.
  - Median country is Lesotho at US$804.
- Extractive natural resource endowment:
  - All countries except Mauritius are either exploiting mineral wealth (Botswana, Nigeria, South Africa, Tanzania, and Zambia) or exploring (The Gambia, Ghana, Kenya, Rwanda, Seychelles (offshore), and Uganda).
  - Cites Bornhorst, Gupta, and Thornton (2008): a 1 percentage point increase in hydrocarbon revenue (in relation to GDP) lowers non-hydrocarbon revenues by about 0.2 percent.
- Post-conflict and low-income countries under stress:
  - Post-conflict countries include Liberia, Rwanda, and Sierra Leone.
  - The Gambia, Nigeria, and Sierra Leone are considered marginally fragile.
  - Liberia and Zimbabwe are classified as severely stressed.
- Economic structure (2008 and 2009 estimates):
  - On average, agriculture contributes about 25 percent of the economy, industry 28 percent, and services 47 percent.
- Tax to GDP ratio:
  - Average non-oil tax to GDP ratio of the Anglophone African countries is about 21 percent.
  - World average is 23 percent.
  - Countries with a ratio above the 20.5 percent average include Botswana, Ghana, Lesotho, Namibia, Seychelles, South Africa, Swaziland, and Liberia.
  - Zimbabwe’s non-oil tax contribution is 3.3 percent, with high expectations of recovery to above 20 percent in 2010 onward.
- Governance indicators:
  - Uses six World Bank governance indicators: voice and accountability; political stability and the absence of violence or terrorism; effectiveness of government; regulatory quality; the rule of law; and control of corruption.
  - On average, governance within the Anglophone African countries appears to have improved slightly from -0.43 to -0.30 between 1998 and 2008.
  - Mauritius, Botswana, Namibia, and South Africa have better governance indices; Sierra Leone, Liberia, Nigeria, and Zimbabwe come off worst.

### Zimbabwe — special note (as presented)
- Zimbabwe experienced significant economic and social deterioration during 1999–2008.
- Real GDP shrank by more than 40 percent during that period.
- Inflation reached estimated at 500 billion percent in September 2008.
- In October/November 2008, the local currency (the Zimbabwe dollar) disappeared from circulation, and pricing of goods and services shifted to foreign currency units (mostly, the U.S. dollar and the South African rand).
- Dollarization helped stop hyperinflation.
- The government of national unity, formed in February 2009, started addressing short-term economic recovery needs under the Short-Term Emergency Recovery Program (STERP).

*Preface, _wp11184 - Preface*

### 61.7 percent. The median in the group is Zimbabwe with an average of 15.2 percent. The

### _wp11184 - 61.7 percent. The median in the group is Zimbabwe with an average of 15.2 percent.

### Table 2: Percentage of Import Duties to Total Tax Revenue — key statistics
- Table shows country averages for "Average 1994-2008" and three subperiods "1994-2000", "2001-2005", "2006-2008".
- Country-level figures (as presented):
  - South Africa: 2.2 3.5 0.8 1.2
  - Tanzania: 12.2 14.5 10.8 9.4
  - Kenya: 13.4 13.7 14.2 11.4
  - Uganda: 16.2 21.2 11.7 12.0
  - Zambia: 16.7 22.0 12.0 12.2
  - Malawi: 16.9 21.3 13.3 12.7
  - Rwanda: 22.8 29.2 18.4 15.2
  - Ghana: 16.4 17.0 16.1 15.5
  - Mauritius: 27.3 32.6 26.4 16.8
  - Zimbabwe: 15.2 17.4 10.4 17.9
  - Nigeria: 28.6 35.1 25.3 18.7
  - Seychelles: 37.5 45.3 37.3 19.6
  - Botswana: 19.9 19.9 16.7 25.4
  - Gambia: 29.0 29.2 30.8 25.7
  - Namibia: 35.4 32.6 33.9 44.2
  - Liberia: 35.6 29.2 33.9 46.8
  - Sierra Leone: 50.1 49.6 52.5 47.2
  - Swaziland: 56.6 52.7 56.9 65.1
  - Lesotho: 61.7 63.9 56.0 65.9
- Averages (as presented):
  - --All Anglophone Africa: 27.0 28.9 25.1 25.4
  - --SACU countries 2/: 35.1 34.5 32.9 40.3
  - --Non-SACU Anglophone Southern Africa 3/: 19.0 23.3 15.5 14.9
  - --Anglophone East Africa 4/: 20.4 24.8 18.5 13.5
  - --Anglophone West Africa 5/: 31.7 32.0 31.7 30.8
- Notes accompanying table:
  - 1/ Sorted on 2006-2008.
  - 2/ Botswana, Lesotho, Namibia, South Africa and Zambia.
  - 3/ Malawi, Mauritius, Zambia and Zimbabwe.
  - 4/ Kenya, Rwanda, Seychelles, Tanzania and Uganda.
  - 5/ The Gambia, Ghana, Liberia and Nigeria.
- Source attribution in table: Appendix II, Table 2.

### SACU revenue-sharing and implications for import duty interpretation
- The 1910 SACU Agreement created a revenue–sharing formula for distribution of Customs and excise revenues collected by the union.
- Customs revenue transfers from South Africa to other SACU members are:
  - based on projected collections for the common revenue pool, and
  - subject to ex post adjustments based on deviations of actual collections from the projections.
- Because SACU countries share from a pool of customs and other import duty revenue that includes import excise duties, non-SACU countries may provide a clearer picture of import tariff collections as a share of total tax revenue.
- Reported non-SACU country range (as presented): 12.2 percent for Tanzania to 50.1 percent for Sierra Leone.
- Over the period, the non-SACU Anglophone Southern Africa group had the lowest average import duty collections to total tax revenue of 19.0 percent.

### Fiscal role of Customs administrations in Anglophone Africa
- Customs administrations collect:
  - import duties,
  - value added or sales taxes on imports at country borders,
  - and manage country export transactions and related documentation.
- Certified import and export declarations enable VAT-registered traders to:
  - claim their input tax, or
  - claim refunds when filing VAT returns to domestic tax administrations.
- External inference cited: Culpeper and Bhushan (July/August 2010, p. 5) — “...most low-income countries (LIC) are heavily dependent on trade taxes as a source of revenue, in large part because they are the easiest taxes to collect. About a third of non-resource tax revenue in [Sub-Saharan Africa] SSA comes from trade taxes...”

### II. THE CUSTOMS ADMINISTRATION REFORM AGENDA — overview
- Modern Customs administrations face “massive demands” and must be more responsive to:
  - globalization,
  - dynamics of international trade,
  - technicalities of the trade supply chain,
  - emerging policy directions,
  - complexities of the global landscape.
- Strategic modernization principle (cited): establish transparent and simple rules and procedures, and foster voluntary compliance via a system of self-assessment with well-designed audit policies.
- Implementation challenges include links with trade policy, organizational reform, use of new technologies, private sector involvement, incentive systems to overcome governance issues, and others.

### A. Customs Administration Reform Challenges
- Borders becoming more open and international trade changes increase demands on Customs.
- Post-2008/09 global economic crisis and stimulus packages increased pressure on Customs to administer an increasing number of policy instruments.
- Role shift: Customs increasingly focus on trader facilitation and security of the trade supply chain; revenue collection becomes a by-product.
- Supply chain complexity elements highlighted:
  - multiplicity of buyers, suppliers, origins,
  - rules determining national product source and applicable tariffs,
  - commodity types, classification, valuation differences,
  - nontariff barriers.
- Reform design tension example: balancing extensive pre-inspection of shipments versus risk-based approaches that emphasize post-release controls.

### B. Characteristics of Modern Customs Administrations
- The Revised Kyoto Convention is the generally accepted reference point for key principles of Customs administration modernization.
- Benefits from applying these principles (summarized in source) include:
  - improved voluntary compliance;
  - increased revenue;
  - simplified processes and procedures;
  - greater institutional efficiency;
  - reduced transactions costs to government, trade and the Customs administration;
  - economic growth.
- Typical characteristics of modernized Customs administrations:
  - (1) self-assessment;
  - (2) use of risk-based approaches to compliance management;
  - (3) a service orientation including broad provision of information to and engagement with the private sector and swift dispute resolution mechanisms;
  - (4) full automation of transactions processing and management information support;
  - (5) extensive use of trader segmentation to implement appropriate compliance and trade facilitation strategies.

### C. Customs Administration Reform Drivers
- Reform drivers are domestic, regional, and international:
  - Domestic: revenue enhancements to close budget deficits and finance poverty reduction strategies; private sector complaints about inefficiencies and costs of doing business.
  - Regional and international:
    - (1) peer pressure, particularly for members of the World Customs Organization (WCO) and other regional trade, revenue or Customs-centric organizations;
    - (2) drive for trade facilitation and reducing the costs of doing business for the international trading community;
    - (3) pressure to include security safeguards in Customs processes and procedures, including receipt of advance manifests to strengthen risk management and profiling.
- International Chamber of Commerce (ICC) and other organizations provide facilitation standards and benchmarks that influence expectations and monitoring of Customs performance.

*Source: Excerpt from PDF content unit _wp11184 as provided.*

### Box 1. Basic Principles and Ex

### Box 1. Basic Principles and Expected Benefits of Customs Administration Reform

### Basic reform principles
- Simple, appropriate legislation: simpler legislation fosters increased trader compliance.
- Streamlined, up-to-date processes and procedures: procedures should be streamlined and automated to the greatest extent possible to reduce costs and improve efficiency and cost-effectiveness of controls.
- Compliance management controls based on effective post-clearance verification (PCA): controls prior to release (including physical inspections) have a role, but post-clearance controls are necessary to verify tariff classification, valuation, exemptions, and origin determination, and to identify potential fraud.

### Expected benefits of Customs administration reform and modernization
- Increased government revenues;
- Overall reduction in the costs of doing business for all stakeholders (for example, government, Customs administration, brokers, transporters, importers and financial institutions);
- More effective detection of non-compliance using risk-based approaches;
- Improved security of international transactions through strengthened control of high risk transactions;
- Simplified, transparent and more efficient clearance procedures;
- More predictable and faster movement of goods, including transit goods;
- Increased trade, improved economic performance and enhanced competitiveness that encourages foreign and domestic direct investment;
- Better coordination and streamlining of roles and responsibilities between Customs and other government border and regulatory agencies; and
- Reduced rent-seeking opportunities due to more efficient, transparent and simplified systems.

### Traditional versus modern Customs administration (summary of comparative features)
- International standards of the WCO and WTO: Traditional — Nonconformance or only partial conformity; Modern — Full conformity with all international Customs standards for classification, value and procedure.
- Customs automation: Traditional — None or only partial; Modern — Full automation.
- Measures of performance: Traditional — Limited output and process measures but frequently the wrong measures; Modern — Full measures of compliance and facilitation leading to improved performance.
- Tariff system: Traditional — Complex and high duty rates; Modern — Simplified and reduced duties.
- Revenue collection: Traditional — Prior to entry of goods; Modern — Entry and collection separate—duties deferred and paid after entry.
- Enforcement and compliance approach: Traditional — Manual inspections sometimes up to 100 percent in addition to paper reviews; Modern — Minimal inspections and paper documentation.
- Information timing: Traditional — Provided at time of entry; Modern — Advance information prior to arrival of goods and conveyance and historical information available on request for audit purposes.
- Personnel: Traditional — Poorly trained and low skilled; Modern — Highly trained and professional.
- Appeals and transparency: Traditional — Limited or unknown appeals process, limited publication notice of rules and practices; Modern — Fully defined appeals process within and beyond Customs, full transparency and cooperation with trade.
- Bottom line: Traditional — Low and unknown compliance, high cost for government and industry, and poor facilitation; Modern — High and measured compliance, lower costs for government and industry, vastly improved facilitation and framework for continued improvement.

*Source: www.Worldbank.org/transport/tr_facil/docs/lane.pdf*

### Conformity with international conventions and standards (key facts)
- Use of the HS code: as of end-July 2010, 138 countries worldwide had formally acceded to the use of the HS code — including 16 of the 19 Anglophone African countries. Exceptions: The Gambia, Seychelles, and Sierra Leone (these apply the HS code in operations but had not formally acceded). Of the 16 acceding countries, only Kenya and Liberia were reported to be using the HS 2002 rather than the HS 2007 versions; Kenya has since (in July 2010) notified the WCO on the use of HS 2007.
- Revised Kyoto Convention: up to January 2010 the convention had 68 signatories worldwide; Anglophone Africa signatories include Botswana, Lesotho, Mauritius, Namibia, South Africa, Uganda, Zambia, and Zimbabwe.
- WTO Agreement on Customs Valuation (ACV): by June 2010, 17 of the 19 Anglophone African countries were full WTO members. Exceptions: Liberia (observer status) and Seychelles. The Gambia, Liberia, Nigeria, and Seychelles were still using the Brussels Definition of Value; the other 15 countries were using ACV. SACU members, Malawi and Zimbabwe implemented the ACV at its inception (January 1995). SACU members use FOB country of export as the valuation base while the others use cost, insurance, and freight (CIF) value at destination.
- WCO SAFE program: as of May 2010 all 19 Anglophone African countries had expressed intention to implement the SAFE program. Phase I diagnostic missions were conducted in all countries except Liberia and Seychelles. Phase II assistance was being provided to 12 of the 17 Phase I beneficiary countries, excluding Botswana, The Gambia, Namibia, Sierra Leone, and Zimbabwe.

### Organizational arrangements
- Administratively integrated Customs and tax administrations are dominant in Anglophone Africa. Exceptions: Liberia and Nigeria have separate tax and Customs agencies.
- The revenue authority model began with Uganda in 1991 and spread to other countries. Ghana adopted the revenue authority model in 2009.
- Observed weaknesses: headquarters operational policy functions are poorly developed in many administrations, with highly centralized approval practices and limited strategic planning capacity. A small professional headquarters team adds value by documenting policies, disseminating plans, and monitoring performance.

### Ethics and integrity (measures taken)
- Countries have taken measures including:
  1. Passage of national anticorruption legislation;
  2. Creation of anticorruption agencies or Ombudsmen offices;
  3. Development of revenue agency-specific anticorruption strategies aligned to national policy;
  4. Increased accountability through national auditor general investigations and representation before parliamentary accountability committees;
  5. Declaration of assets by revenue/Customs administration staff;
  6. Creation of specific staff internal affairs units and staff disciplinary frameworks;
  7. Establishment of ad hoc commissions of enquiry into revenue agency corruption; and
  8. Prosecution of offenders (revenue agency staff and taxpayers).
- Control of corruption trends (1998–2008): majority of Anglophone African countries struggled to contain corruption; Botswana, Namibia, Mauritius, South Africa, and Seychelles showed relatively better outcomes; Lesotho and Rwanda registered improvements in 2008. Finland, Singapore, Denmark, Iceland, and New Zealand topped world rankings in 2008.

### Tariff reform (summary observations)
- Many Anglophone African countries rationalized, simplified, and reduced the number of tariff bands to enhance external competitiveness and reduce discretionary behavior.
- World Bank (2007) Global Monitoring Report notes tariff reductions and declining trade restrictiveness in Ghana, Nigeria, Kenya, Tanzania, and Zambia during 2000–06.
- Impact on revenue: average Customs and other import duties as a percentage of GDP remained flat for the period 1994–2008 (see Appendix II, Table 4 referenced in source).

### Customs processes and procedures — valuation and trade facilitation
- Valuation reforms and ACV implementation produced mixed revenue outcomes. Table 5 (Customs and Other Import Duties for Selected Countries—Pre- and Post-Implementation of the Agreement on Customs Valuation) shows annual percent of GDP series for selected countries:

  - Ghana (ACV implementation February 2000): 1998 2.7, 1999 2.6, 2000 3.0, 2001 2.8, 2002 2.7, 2003 2.4, 2004 2.2, 2005 2.0
  - Kenya (ACV implementation January 2000): 1998 2.2, 1999 2.2, 2000 2.5, 2001 3.1, 2002 2.0, 2003 3.0, 2004 2.4, 2005 2.2
  - Mauritius (ACV implementation January 2000): 1998 4.8, 1999 4.5, 2000 5.8, 2001 4.8, 2002 4.1, 2003 4.2, 2004 4.2, 2005 4.2
  - Rwanda (ACV implementation January 2004): 1998 2.5, 1999 1.7, 2000 1.6, 2001 1.9, 2002 2.0, 2003 2.4, 2004 2.5, 2005 2.4
  - Tanzania (ACV implementation January 2001): 1998 1.6, 1999 1.4, 2000 1.3, 2001 1.2, 2002 1.0, 2003 1.1, 2004 1.2, 2005 0.9
  - Uganda (ACV implementation July 2001): 1998 1.1, 1999 1.1, 2000 1.2, 2001 1.6, 2002 1.2, 2003 1.3, 2004 1.4, 2005 1.4
  - Zambia (ACV implementation January 2000): 1998 3.1, 1999 3.2, 2000 2.5, 2001 2.2, 2002 2.3, 2003 2.0, 2004 2.1, 2005 2.0

- Trade facilitation:
  - Time Release Studies (TRS) conducted with WCO assistance: Kenya (2004 and 2007), Malawi (2005), Rwanda (2007), Uganda (2008), Tanzania (2005), and Zambia (2007). The 2007 Kenya repeat study suggested facilitation had deteriorated rather than improved.
  - World Bank Development Indicators (Logistics Performance Index) comparisons (2006 vs 2009) — selected figures:
    - Anglophone Africa average: 2006 2.18, 2009 2.31, Percentage change 6.0
    - Sub-Saharan Africa average: 2006 2.21, 2009 2.18, Percentage change -1.2
    - World average: 2006 2.56, 2009 2.59, Percentage change 1.5
    - Country highlights (2006 → 2009):
      - South Africa 3.22 → 3.22 (0.0)
      - Uganda 2.21 → 2.84 (28.5)
      - Mauritius 2.00 → 2.71 (35.5)
      - Tanzania 2.07 → 2.42 (16.9)
      - Sierra Leone 1.58 → 2.17 (37.3)
      - Namibia 2.14 → 1.68 (−21.5)
      - Rwanda 1.80 → 1.63 (−9.4)
  - Observations: South Africa, Uganda, and Mauritius exceeded the 2009 World average rating of 2.59; worst performers included Botswana, Namibia, and Rwanda.

### Risk management, post-clearance audits (PCA), and segmentation
- Risk management and PCA approaches were generally uncommon across Anglophone Africa prior to 2006 and remain nascent in many countries. Business intelligence and analytical skills are weak and will take time to develop.
- FAD technical assistance began establishing risk functions in some countries (e.g., Kenya, Tanzania, Uganda) starting around 2006.
- Large importer concentration (Table 7): large importers contributed 70–80 percent of Customs revenue; sample data:
  - Kenya (2005/06): Total number of importers 19,114; Large importers 609; Percent large to total importers 3.2
  - Malawi (2005/06): Total number of importers 5,709; Large importers 201; Percent large to total importers 3.5
  - Rwanda (2006): Total number of importers 7,094; Large importers 361; Percent large to total importers 5.1
  - Tanzania (2005/06): Total number of importers 24,121; Large importers 751; Percent large to total importers 3.1
  - Uganda (2005/06): Total number of importers 16,452; Large importers 799; Percent large to total importers 4.9
- Use of Authorized Economic Operator (AEO) schemes:
  - Implementation of full SAFE AEO program is at a very nascent stage in Anglophone Africa.
  - In 2008 Botswana, Namibia, and South Africa agreed to implement a fully accredited AEO program.
  - As of March 2009 only South Africa had legislated and was implementing the AEO accreditation scheme; Botswana had no formalized scheme but accorded fast-track treatment to compliant traders; Namibia had elements of facilitation under normal cargo clearance procedures.
  - Limited accredited trader facilitation programs started by Tanzania in 2007, Rwanda and Kenya during 2008, and Uganda during the first half of 2010.
  - The EAC and SADC are developing regional AEO programs.

### Pre-shipment/destination inspection (PSI/DI) services
- Only 8 of the 19 Anglophone African countries have not used PSI/DI; these include Mauritius, Seychelles, Zambia, and the five SACU countries.
- Some countries used PSI/DI and then discontinued (e.g., Uganda 2002, Kenya 2005, Malawi 2007).
- Reasons for discontinuation: trader complaints about unnecessary cost (usually about 1 percent of CIF value above a designated import value threshold) and erosion of Customs officers’ core skills in valuation, classification, and origin determination.
- As at mid-2010, The Gambia, Ghana, Liberia, Nigeria, Sierra Leone, Tanzania, and Zimbabwe were still using PSI/DI services.
- Some PSI/DI companies have transformed business models by partnering to manage community-based TradeNet systems (examples: Ghana GCNet; Nigeria Global Scan TradeNet). Tanzania’s DI contract runs through 2011 and refocuses on skills acquisition.

### Coordinated border management and One-Stop Border Posts (OSBPs)
- OSBP initiatives started in the mid-2000s with development partner support (USAID, DfID, JICA).
- Two OSBPs opened: Malaba (Kenya–Uganda) in June 2006; Chirundu (Zambia–Zimbabwe) in December 2009.
- Operational modality: memorandum of understanding between countries; each country processes declarations and collects its own tariffs, taxes, and fees.
- Malaba OSBP required cross-border automated information interface between Kenya’s Simba and Uganda’s ASYCUDA, achieved via joint development of RADDEX.
- Reported improvements at Malaba: reductions in clearance times (initial results indicated reductions from three to five days to between 20 minutes and three hours, depending on inspection).

### Information technology reforms — automation and networks
- Automation history:
  - Early adopters: South Africa introduced CAPE in 1981; Mauritius in late 1980s using ASYCUDA; Kenya automated with Boffin in 1989; Rwanda introduced early ASYCUDA in 1989.
  - By mid-2010, many countries had automated; Seychelles and Swaziland automated in 2007; Sierra Leone in January 2010; Lesotho and Liberia were implementing automation as of mid-2010.
- ASYCUDA dominance:
  - Of the 19 countries, 14 are using ASYCUDA; Lesotho was at the development stage; Mauritius and Ghana originally used ASYCUDA but replaced it with bespoke systems (Mauritius CMS in 1997; Ghana GCMS from July 2003).
- Project financing and costs:
  - ASYCUDA projects were mostly financed by development partners (DfID, UNDP, EU, DANIDA, World Bank) with beneficiary counterpart funding typically about 10 percent of project cost.
  - Early ASYCUDA implementation costs (excluding upgrades) ranged in the U$500,000–US$5 million band, depending on scope.
- Community-based networks and single window concepts:
  - New generation applications enable single virtual points for standardized submission of data once for all regulatory purposes, reducing processing times and duplicative data capture. These networks are typically managed by joint venture public–private entities and sustained by transaction fees.
- Advance cargo information and RADDEX:
  - RADDEX (Revenue Authorities Digital Data Exchange) was jointly developed by Kenya and Uganda and implemented in October 2007; USAID provided extended support.
  - Rwanda and Tanzania linked to RADDEX in mid-2008; Tanzania and Malawi linked in January 2010.
  - RADDEX enhancements since 2009 enabled traders to track cargo movement and allowed Uganda to automatically populate ASYCUDA electronic bills of entry from RADDEX data.
- Key observations on automation:
  - Automation catalyzed Customs reform in the early 1990s by imposing structured operational discipline and project management.
  - Full utilization of automated systems’ functionality remains weak; analytical use of Customs data for risk management is limited.
  - Sharing of information between tax and Customs administrations is still weak despite technical feasibility; RADDEX interfaces illustrate potential for improving information exchange and trade profiling.

*Italic: Source: Excerpt from IMF Working Paper content unit — Box 1 and associated sections as provided in the source document.*

### Box 2. Some Challenges Encountered in Customs Administration Automation

### _wp11184 - Box 2. Some Challenges Encountered in Customs Administration Automation

### Operational controls and financial management
- Warehouse guarantee management—there is manual intervention in managing warehousing accounts rather than the systems performing the debits and credits automatically.
- Temporary imports—these may not have guarantee accounts assigned in the system. Some countries have designed workarounds, thus introducing system integrity and compliance risks through offline management of consignments.

### Manifest, identification, and reconciliation
- Manifest control—in some systems, only the package and weight of a consignment are used as key identifiers to reconcile the manifest. Key fields such as importer or taxpayer identification number are not used and the chances that a consignment with the same number of packages and weight are high.

### Valuation and data integration
- Valuation—some systems are unable to assign values by item, and rather only assign the HS codes. Further, some systems do not have provision for a valuation reference database which means procuring separate systems and interfacing them with the primary application.

### Risk management and selectivity
- Selectivity—automatic updating of importer profiles is not available and is one reason for risk management approaches not being used systematically—they have to be created manually or using offline applications.

### Reporting, access control, and performance measurement
- Reports—some systems do not provide for report access levels and rights, and report generation is not flexible enough to meet the requirements of the user, including generating the routine performance indicators.

*Source: Proceedings of the August 2009 IMF East AFRITAC workshop on Customs administration automation systems held in Nairobi, Kenya.*

### 0.04                                          n.a.                                          30.6

### _wp11184 - 0.04                                          n.a.                                          30.6

### Corruption, Integrity and Customs Modernization
- Despite varied control-of-corruption scores across countries, there is wide acknowledgement that corruption needs to be addressed.
- All the Anglophone African countries have implemented some form of anticorruption strategy and are signatories to international anticorruption conventions.
- A well designed and implemented Customs administration modernization program can enhance integrity notwithstanding societal values and authorities' commitment to fighting corruption.
- Imam and Jacobs (November 2007) note that countries that have implemented comprehensive revenue reform and modernization programs have had a mitigating impact on corruption. Examples in Anglophone Africa include: Ghana, Rwanda, South Africa, Tanzania, and Zambia.
- Control of corruption is observed to be better in the SACU countries (other than Swaziland), Mauritius, Seychelles, and Rwanda. Rwanda is highlighted as a strong reformer.

### Impact of Regional Trade Arrangements
- Multilateral or bilateral trading commitments generally entail preferential tariff treatment of goods using defined rules of origin.
- Many Anglophone African countries face capacity constraints to manage trader compliance with rules of origin; multiplicity of arrangements with different requirements complicates management and predictability, and provides opportunities for origin fraud and abuse.
- With little likelihood of members pulling out of multiple regional trade arrangements and minimal chance of harmonizing rules of origin, remedies include:
  - Better inter-customs administration cooperation.
  - Strong intelligence and risk management approaches.
  - Robust information technology systems.
- Opportunities for deeper inter-country customs cooperation remain underexploited despite membership in trading blocs. Opportunities include:
  - Harmonization of customs processes and procedures.
  - Joint intelligence and risk management systems through extensive sharing of information on customs declarations, traders and passenger clearance.
- Regional electronic interfacing of customs automated systems is still in its infancy. A recent successful attempt cited is the use of RADDEX to link the Kenya and Uganda automated Customs administration systems.
- Revenue pooling and sharing arrangements are proving difficult in SACU and more recently in the EAC. Example:
  - EAC partner states had set July 1, 2010 to start collecting customs revenue at the first point of entry and then share it out, but due to lack of agreement and preparedness, the measure was postponed.
  - South Africa called for review of the SACU revenue sharing formula in early 2010 because the 2002 formula was placing a larger burden on the country, with negative effects on imports revenue from the global financial crisis.

### Outstanding Reforms Agenda (FAD TA context)
- FAD TA support to Anglophone African Customs administration reforms traces back to the mid-1990s. Guidance revolves around four key areas (Keen 2003):
  1. establishing coherent trade policies and clear legislation;
  2. adopting modern, simple procedures;
  3. increasing self-assessment by traders, supported by a movement away from physical and toward post-release controls; and
  4. ensuring organizational structures and human resources practices conducive to effectiveness and integrity in Customs administration.
- Customs administrations must be free of political interference, have a clear legal mandate, and be organizationally placed to interact closely with other branches of revenue administration.
- Review of FAD technical assistance assessments in 13 of the 19 Anglophone African countries during 2006 to mid-2010 identified common weaknesses and outstanding reform issues still present across countries.
- WCO diagnostic assessments corroborate FAD findings:
  - Although most countries recognize principles of modern Customs management (risk management, PCA, advance binding rulings), implementation is still inadequate.
  - A number of countries still focus on revenue collection and a large percentage of physical inspections, reflecting distrust of risk management techniques and belief that more inspections mean more revenue.

### Conclusions on Reform Progress and Priorities
- Since the early 1990s, Customs administration reform progress in Anglophone African countries has been relatively slow and has yet to yield desired revenue and trade facilitation impacts.
- Countries with stronger economic and resource capacity such as South Africa have made considerable progress. Noticeable process improvements have also occurred in Ghana, Mauritius, Sierra Leone, Tanzania, and Uganda.
- Reform and reform outcomes observations:
  - Anglophone Africa’s Customs administration reforms have been prominent in the tariff and automation areas, with automation influencing process and procedural reforms. However, comprehensive reforms that significantly impact revenue or trade facilitation are yet to materialize.
  - Almost all Anglophone African countries recognized early the importance of automation in revenue administration reform. ASYCUDA is the predominant automated system, with early versions implemented from the early-1990s. Automation forced some process and procedural changes to fit the technology.
  - Customs administration reforms revolve around “efficient cargo management” — managing and facilitating process flows, participants in these flows, and integrity of the supply chain. Efficient, robust, simplified, and secure systems can yield consequential revenue and other benefits.
  - Risk management principles were only just beginning to be implemented (post-2007) and are still in their infancy. Automated risk management is available only in basic form; use of more robust business intelligence tools would be beneficial. Focusing on cargo management using risk-based approaches is likely to yield greater benefits.
  - Customs reforms should be strategically aligned with domestic tax reforms so that facilitating trade and reducing costs of doing business can improve gross margins and domestic revenue. With declining taxes from international trade internationally, strengthening domestic tax administration to recover all taxes due from taxpayers involved in international trade (and domestic) transactions becomes urgent.
  - A holistic and integrated tax, trade and Customs reform strategy appears indispensable for significant progress.

- Areas needing further research include:
  1. the impact of Customs administration reforms on importation (and foreign direct investment) levels;
  2. the extent that Customs administration reforms supported domestic tax revenue growth especially in light of widespread reduction in tariffs;
  3. potential benefits of aligning domestic tax and Customs administration reforms;
  4. focus of future value-adding reform and TA; and
  5. implementation compliance to the provisions of the Revised Kyoto Convention and the Agreement on Customs Valuation.

### Summary of Outstanding Customs Administration Reform Areas (Table 10 highlights)
- Legal and regulatory:
  - Update Customs legislation and regulations for consistency with modern operations and business practices.
  - Align legislation and regulations with WTO, WCO, and other regional and international conventions and commitments.
- Corporate-level organizational, governance and performance management:
  - Review organizational structure to separate operational policy planning and monitoring from field operations.
  - Conduct comprehensive skill and manning level studies to right-size the organization and identify skill improvements.
  - Create a headquarters function to design, disseminate, monitor, and evaluate operational plans.
  - Develop a multiyear strategic business plan with performance indicators and a data collection strategy to measure results.
  - Improve corporate-level risk management understanding through training and benchmarking.
  - Implement robust reform and modernization project governance with a steering committee chaired by the chief executive, serviced by a full-time project manager and supported by a small project team.
  - Develop a risk management policy and strategy covering staff risks, internal compliance, support systems, and field offices.
- Field operations including compliance management:
  - Ensure full implementation of a common Taxpayer Identification Number by Customs and tax administrations.
  - Develop Customs staff skills in valuation, classification and origin; train the trading community in these areas.
  - For natural resource exploiting countries, develop skills in valuation of imported and exported natural resource products such as oils and mineral ores.
  - Strengthen revenue accountability systems with appropriate checks and balances to minimize fraud and rent-seeking.
  - Establish robust intelligence and risk management units that collect, analyze, and disseminate information to drive compliance interventions.
  - Develop and maintain trading activity risk profiles using, for example, the WCO data model.
  - Review and adjust cargo release selection criteria and develop systems for referring goods for post-audit.
  - Improve cargo release times by establishing baselines through TRS and conducting regular (preferably automated) performance monitoring.
  - Improve Customs staff skills in cargo examination and use of modern examination tools.
  - Review and develop a comprehensive transit compliance management strategy.
  - Develop national anti-smuggling strategies, including risk mapping of commodities, routes and traders prone to Customs tax evasion.
  - Invest in and strengthen the PCA function and develop staff skills in audit planning and case management; include joint audits with domestic tax administration as appropriate.
  - Improve debt management arrangements with sufficient staff, support systems and attention to the largest debts.
  - Improve compliance by taking punitive action to deter false declarations and repeated irregularities; conduct training for Customs brokers to reduce declaration errors.
  - Develop measures to strengthen coordination and information-sharing with domestic tax administration and other border agencies; consider single window arrangements.
  - Develop an exit strategy and transitional arrangements to transfer aspects performed by service providers back to Customs where appropriate.
  - Conduct cost-benefit analysis prior to acquisition of nonintrusive inspection equipment such as scanners.
- Trade facilitation:
  - Provide more complete information and training enabling the trading community to meet Customs obligations.
  - Strengthen partnerships and hold regular formalized dialogue with the trading community; consult them when changes are contemplated.
  - Implement credible importer trade facilitation programs including the AEO scheme.
  - Encourage and enforce minimum record keeping standards for commercial international trade transactions.
- Business processes and automation:
  - Articulate future Customs business direction considering regional and international developments, including single window arrangements.
  - Conduct business process reviews and streamline processes by removing non-value-adding steps.
  - Develop a Customs ICT strategy and action plan aligned with future business direction and streamlined processes.
  - Plan to roll out automated systems to Customs offices that cover at least 95 percent of the business.
  - Enhance functionality of existing systems from transaction-processing to decision-support, including dynamic risk management modules.
  - Provide access to the automated system to all Customs staff, including cargo examination staff.
  - Develop plans for longer-term expansion and a medium-term strategy for capital equipment replacement and communication solutions.
- Dispute resolution:
  - Set up a clear, transparent, and timely dispute resolution framework mindful of costs to the trading community and the Customs administration.
- Ethics and integrity:
  - Complete an integrity diagnosis (preferably using WCO diagnostic tools) and develop an integrity action plan with clear responsibilities, priorities and timeframes.
  - Develop or update codes of staff conduct using results of the integrity diagnosis and align with national and international guidelines.
  - Implement a transparent and equitable disciplinary framework providing for prosecution of offenders and confiscation of ill-gotten assets.
- Regional integration and customs union issues:
  - Establish a regional Customs union reform and modernization governance structure with a steering committee chaired on a rotation basis by one of the chief executives of the region’s Customs administrations, supported by a full-time project manager and small team drawn from the region.
  - Review and consult closely all stakeholders on proposed harmonization of processes, procedures and systems, considering maturity levels of partner states.
  - Pilot agreed policies, procedures, processes, and systems within a project implementation framework with clear benchmarks and review milestones.

*Sources: Table 5, Appendix 1, and Appendix 2-Table 5. 1/ Range of: -2.5 = less control to +2.5 = better control. 2/ Ranking: 1 = low to 5 = high.*

### Appendix I. Selected Characteristics of Anglophone African Countries

### Appendix I. Selected Characteristics of Anglophone African Countries

### Income group, natural resource endowment, other status, and population
- Country-level highlights (Population ('000) 3/):
  - Botswana: 1,265; 1,991; 57.4
  - Gambia, The: 949; 1,778; 87.3
  - Ghana: 15,408; 23,888; 55.0
  - Kenya: 23,354; 39,003; 67.0
  - Lesotho: 1,703; 1,916; 12.5
  - Liberia: 2,139; 3,583; 67.6
  - Malawi: 9,546; 15,029; 57.4
  - Mauritius: 1,062; 1,284; 21.0
  - Namibia: 1,471; 2,109; 43.4
  - Nigeria: 96,604; 149,229; 54.5
  - Rwanda: 6,999; 10,746; 53.5
  - Seychelles: 71; 87; 23.6
  - Sierra Leone: 4,228; 5,132; 21.4
  - South Africa: 38,476; 49,052; 27.5
  - Swaziland: 882; 1,337; 51.7
  - Tanzania: 25,214; 41,049; 62.8
  - Uganda: 17,456; 32,370; 85.4
  - Zambia: 7,978; 11,863; 48.7
  - Zimbabwe: 10,156; 11,393; 12.2
- Simple average (population/data triplet): 13,945; 21,202; 52.0
- World (row as presented in table): 5,283,687; 6,755,987; 27.9
- Notes:
  - Income group based on World Bank 2008 gross national income (GNI) per capita classifications (in effect until July 1, 2010).
  - LICUS, S-LICUS, M-LICUS definitions from World Bank FY 2007 CPIA-based list.
  - Population data from U.S. Census Bureau—Population Division.

### Composition of GDP, GDP per capita, and tax to GDP ratio
- Composition of GDP—percent (Agriculture / Industry / Services) and selected country growth figures (1990/2008 growth percent):
  - Botswana: Agriculture 1.6; Industry 52.6; Services 45.8; GDP/capita 1990 2,773; 2008 6,808; Growth 145.5; Tax as % of GDP (2008) 21.7
  - Gambia, The: Agriculture 33.5; Industry 8.5; Services 58.0; GDP/capita 1990 354; 2008 471; Growth 33.1; Tax as % of GDP (2008) 17.2
  - Ghana: Agriculture 37.3; Industry 25.3; Services 37.5; GDP/capita 1990 393; 2008 690; Growth 75.6; Tax as % of GDP (2008) 21.5
  - Kenya: Agriculture 21.4; Industry 16.3; Services 62.3; GDP/capita 1990 366; 2008 895; Growth 144.5; Tax as % of GDP (2008) 18.9
  - Lesotho: Agriculture 15.9; Industry 45.4; Services 38.7; GDP/capita 1990 360; 2008 804; Growth 123.3; Tax as % of GDP (2008) 58.9
  - Liberia: Agriculture 76.9; Industry 5.4; Services 17.7; GDP/capita 1990 177; 2008 229; Growth 29.4; Tax as % of GDP (2008) 21.2
  - Malawi: Agriculture 35.5; Industry 19.9; Services 44.6; GDP/capita 1990 199; 2008 299; Growth 50.3; Tax as % of GDP (2008) 17.6
  - Mauritius: Agriculture 4.7; Industry 24.9; Services 70.5; GDP/capita 1990 2,254; 2008 6,818; Growth 202.5; Tax as % of GDP (2008) 18.2
  - Namibia: Agriculture 9.2; Industry 34.8; Services 56.0; GDP/capita 1990 1,658; 2008 4,051; Growth 144.3; Tax as % of GDP (2008) 30.0
  - Nigeria: Agriculture 33.4; Industry 34.1; Services 32.5; GDP/capita 1990 301; 2008 1,402; Growth 365.8; Tax as % of GDP (2008) 5.0
  - Rwanda: Agriculture 42.6; Industry 22.2; Services 35.2; GDP/capita 1990 361; 2008 458; Growth 26.9; Tax as % of GDP (2008) 11.8
  - Seychelles: Agriculture 15.5; Industry 28.0; Services 56.5; GDP/capita 1990 5,265; 2008 9,649; Growth 83.3; Tax as % of GDP (2008) 25.7
  - Sierra Leone: Agriculture 49.0; Industry 31.0; Services 21.0; GDP/capita 1990 159; 2008 351; Growth 120.8; Tax as % of GDP (2008) 10.1
  - South Africa: Agriculture 9.0; Industry 26.0; Services 65.0; GDP/capita 1990 3,182; 2008 5,685; Growth 78.7; Tax as % of GDP (2008) 27.7
  - Swaziland: Agriculture 11.4; Industry 44.6; Services 44.0; GDP/capita 1990 1,290; 2008 2,242; Growth 73.8; Tax as % of GDP (2008) 36.0
  - Tanzania: Agriculture 26.6; Industry 22.6; Services 50.8; GDP/capita 1990 167; 2008 482; Growth 188.6; Tax as % of GDP (2008) 14.7
  - Uganda: Agriculture 22.2; Industry 25.1; Services 52.8; GDP/capita 1990 243; 2008 459; Growth 88.9; Tax as % of GDP (2008) 12.8
  - Zambia: Agriculture 19.2; Industry 31.3; Services 49.5; GDP/capita 1990 416; 2008 1,134; Growth 172.6; Tax as % of GDP (2008) 17.5
  - Zimbabwe: Agriculture 19.1; Industry 23.9; Services 56.9; GDP/capita 1990 840; 2008 279; Growth -66.8; Tax as % of GDP (2008) 3.3
- Simple average composition and GDP/capita/growth:
  - Composition averages: Agriculture 25.5; Industry 27.5; Services 47.1
  - GDP/capita 1990 1,093; 2008 2,274; Growth 108.1; Tax as % of GDP (2008) 20.5
- World comparison (Composition row): Agriculture 4,142; Industry 9,054; Services 118.6; 23.3 (as printed in source table)
- Data sources noted in table:
  - CIA, The World Fact Book—2008 and 2009 estimates.
  - World Bank Development Indicators database; for Zimbabwe 2008—estimates from IMF data.
  - Heritage Foundation.

### World Governance Indicators (2008 and 1998 snapshots)
- Measurement note: World Bank governance indicators range from about -2.5 to 2.5; higher values = better governance outcomes. Data sorted on consolidated index for 2008. Consolidated Index is author computation—average of all six indices.
- Selected country indicators (2008 / 1998 values across six dimensions in table order: Voice & Accountability; Political Stability & No Violence/Terrorism; Government Effectiveness; Regulatory Quality; Rule of Law; Control of Corruption; Consolidated Index 2):
  - Mauritius: 0.88; 1.01; 0.84; 0.63; 0.60; 0.31; 0.95; 0.33; 0.88; 0.82; 0.53; 0.48; 0.78; 0.60
  - Botswana: 0.55; 0.73; 0.96; 0.82; 0.67; 0.66; 0.52; 0.75; 0.64; 0.56; 1.00; 0.74; 0.72; 0.71
  - Namibia: 0.57; 0.35; 0.96; 0.54; 0.31; 0.39; 0.13; 0.18; 0.36; 0.29; 0.59; 0.66; 0.49; 0.40
  - South Africa: 0.68; 0.85; -0.04; -0.88; 0.75; 0.95; 0.63; 0.24; 0.12; 0.14; 0.30; 0.60; 0.41; 0.31
  - Seychelles: -0.04; 0.02; 0.91; 0.98; -0.01; 0.56; -0.65; -0.48; 0.24; 0.53; 0.23; 0.45; 0.11; 0.34
  - Ghana: 0.48; -0.43; 0.06; -0.21; -0.08; -0.22; 0.08; -0.10; -0.10; -0.44; -0.06; -0.31; 0.06; -0.28
  - Lesotho: 0.04; -0.77; -0.03; -0.22; -0.31; -0.10; -0.63; -0.41; -0.30; 0.09; 0.04; -0.19; -0.20; -0.27
  - Tanzania: -0.09; -0.55; 0.01; -0.23; -0.45; -0.61; -0.39; -0.31; -0.28; -0.37; -0.51; -1.12; -0.29; -0.53
  - Zambia: -0.09; -0.49; 0.29; -0.22; -0.66; -1.06; -0.33; -0.01; -0.50; -0.58; -0.48; -0.92; -0.30; -0.55
  - Malawi: -0.18; -0.09; 0.05; -0.16; -0.65; -0.17; -0.39; -0.14; -0.29; -0.56; -0.59; -0.36; -0.34; -0.25
  - Rwanda: -1.24; -1.34; -0.14; -2.13; -0.20; -1.17; -0.49; -1.08; -0.50; -1.48; 0.03; -0.87; -0.42; -1.35
  - Gambia: -0.97; -0.99; 0.14; 0.62; -0.77; -0.61; -0.44; -0.36; -0.25; 0.03; -0.78; -0.54; -0.51; -0.31
  - Swaziland: -1.20; -1.23; 0.22; -0.08; -0.66; -0.67; -0.57; -0.42; -0.51; -0.58; -0.38; -0.02; -0.52; -0.50
  - Uganda: -0.47; -0.89; -0.88; -1.30; -0.51; -0.56; -0.08; 0.08; -0.51; -0.67; -0.79; -0.92; -0.54; -0.71
  - Kenya: -0.16; -0.87; -1.25; -1.04; -0.60; -0.71; -0.07; -0.37; -0.98; -1.11; -1.01; -1.13; -0.68; -0.87
  - Sierra Leone: -0.28; -1.47; -0.23; -2.17; -1.13; -1.41; -0.86; -1.29; -1.03; -1.18; -1.07; -0.94; -0.77; -1.41
  - Liberia: -0.29; -1.12; -0.99; -1.75; -1.36; -1.83; -1.32; -2.06; -1.23; -2.07; -0.60; -1.73; -0.96; -1.76
  - Nigeria: -0.60; -1.19; -2.01; -0.98; -0.98; -1.06; -0.62; -0.93; -1.12; -1.30; -0.92; -1.17; -1.04; -1.10
  - Zimbabwe: -1.52; -0.81; -1.56; -0.85; -1.56; -0.47; -2.18; -0.68; -1.81; -0.53; -1.37; -0.43; -1.67; -0.63
- Anglophone Africa average (series presented): -0.21; -0.49; -0.14; -0.45; -0.40; -0.41; -0.35; -0.37; -0.38; -0.44; -0.31; -0.40; -0.30; -0.43
- World Average (series presented): 0.00; -0.02; 0.00; -0.08; 0.00; 0.00; 0.00; -0.02; 0.00; -0.05; 0.00; -0.01; 0.00; -0.03

### Appendix II — Selected trade and customs statistics: merchandise imports and customs duties
- Appendix Table 1: Merchandise Imports as a Percentage of GDP (selected figures and averages)
  - Country averages 1994-2008 and % change 1994-2008 (selected):
    - Botswana average 1994-2008 35.1; % change 1994-2008 2.2
    - Gambia average 1994-2008 50.4; % change -30.5
    - Ghana average 1994-2008 45.5; % change 61.2
    - Kenya average 1994-2008 27.8; % change 24.7
    - Lesotho average 1994-2008 112.8; % change 13.9
    - Liberia average 1994-2008 140.0; % change -50.2
    - Malawi average 1994-2008 34.3; % change -5.3
    - Mauritius average 1994-2008 49.1; % change -8.1
    - Namibia average 1994-2008 43.2; % change 17.8
    - Nigeria average 1994-2008 21.0; % change -28.0
    - Rwanda average 1994-2008 17.9; % change -20.5
    - Seychelles average 1994-2008 69.7; % change 178.1
    - Sierra Leone average 1994-2008 22.2; % change 74.2
    - South Africa average 1994-2008 24.5; % change 109.1
    - Swaziland average 1994-2008 72.8; % change 18.8
    - Tanzania average 1994-2008 23.6; % change 1.8
    - Uganda average 1994-2008 23.1; % change 52.8
    - Zambia average 1994-2008 30.4; % change 99.6
    - Zimbabwe average 1994-2008 39.9; % change 127.0
  - Averages:
    - All Anglophone Africa average 1994-2008 46.5; % change 0.2
    - SACU countries average 1994-2008 57.7; % change 20.0
    - Non-SACU Anglophone Southern Africa average 1994-2008 38.4; % change 35.7
    - Anglophone East Africa average 1994-2008 32.4; % change 55.9
    - Anglophone West Africa average 1994-2008 55.8; % change -43.2
- Appendix Table 2: Customs and Other Import Duties as a Percentage of Total Tax Revenue (selected figures and averages)
  - Country averages 1994-2008 and % change 1994-2008 (selected):
    - Botswana average 1994-2008 19.9; % change 36.6
    - Gambia average 1994-2008 29.0; % change -1.6
    - Ghana average 1994-2008 16.4; % change 0.6
    - Kenya average 1994-2008 13.4; % change 20.2
    - Lesotho average 1994-2008 61.7; % change -6.0
    - Liberia average 1994-2008 35.6; % change 166.8
    - Malawi average 1994-2008 16.9; % change -35.2
    - Mauritius average 1994-2008 27.3; % change -66.0
    - Namibia average 1994-2008 35.4; % change 31.8
    - Nigeria average 1994-2008 21.0; % change -47.6
    - Rwanda average 1994-2008 22.8; % change -65.8
    - Seychelles average 1994-2008 37.5; % change -62.3
    - Sierra Leone average 1994-2008 50.1; % change 18.0
    - South Africa average 1994-2008 2.2; % change -74.1
    - Swaziland average 1994-2008 56.6; % change 31.4
    - Tanzania average 1994-2008 12.2; % change -31.4
    - Uganda average 1994-2008 16.2; % change -74.2
    - Zambia average 1994-2008 16.7; % change -62.8
    - Zimbabwe average 1994-2008 15.2; % change 61.3
  - Averages:
    - All Anglophone Africa average 1994-2008 27.0; % change -17.2
    - SACU countries average 1994-2008 35.1; % change 15.5
    - Non-SACU Anglophone Southern Africa average 1994-2008 19.0; % change -37.0
    - Anglophone East Africa average 1994-2008 20.4; % change -58.8
    - Anglophone West Africa average 1994-2008 31.7; % change 5.9
- Appendix Table 3: Customs and Other Import Duties as a Percentage of GDP (selected figures and averages)
  - Country averages 1994-2008 and % change 1994-2008 (selected):
    - Botswana average 1994-2008 6.4; % change 9.6
    - Gambia average 1994-2008 4.9; % change -14.1
    - Ghana average 1994-2008 2.4; % change -40.1
    - Kenya average 1994-2008 2.3; % change 52.0
    - Lesotho average 1994-2008 26.0; % change 89.4
    - Liberia average 1994-2008 3.8; % change 560.0
    - Malawi average 1994-2008 2.7; % change -21.5
    - Mauritius average 1994-2008 4.5; % change -66.2
    - Namibia average 1994-2008 9.7; % change 22.1
    - Nigeria average 1994-2008 2.2; % change -23.9
    - Rwanda average 1994-2008 2.2; % change 15.4
    - Seychelles average 1994-2008 10.4; % change -69.2
    - Sierra Leone average 1994-2008 4.9; % change -3.7
    - South Africa average 1994-2008 2.6; % change 294.9
    - Swaziland average 1994-2008 16.2; % change 75.0
    - Tanzania average 1994-2008 1.4; % change -7.1
    - Uganda average 1994-2008 1.7; % change -59.8
    - Zambia average 1994-2008 3.0; % change -65.3
    - Zimbabwe average 1994-2008 3.1; % change -72.0
  - Averages:
    - All Anglophone Africa average 1994-2008 5.9; % change 7.4
    - SACU countries average 1994-2008 12.2; % change 64.9
    - Non-SACU Anglophone Southern Africa average 1994-2008 3.3; % change -61.6
    - Anglophone East Africa average 1994-2008 3.6; % change -52.3
    - Anglophone West Africa average 1994-2008 3.8; % change 25.6
- Data sources for Appendix II:
  - IMF country reports; World Bank: World Development Indicators Database; and country websites.
  - Regional groupings: SACU countries = Botswana, Lesotho, Namibia, South Africa and Swaziland; Non-SACU Anglophone Southern Africa = Malawi, Mauritius, Zambia and Zimbabwe; Anglophone East Africa = Kenya, Rwanda, Seychelles, Tanzania and Uganda; Anglophone West Africa = Gambia, Ghana, Liberia and Nigeria.

*Source: _wp11184 - Appendix I. Selected Characteristics of Anglophone African Countries (IMF PDF).*

### Appendix Table 4. Collected Customs Tariff Rate

### _wp11184 - Appendix Table 4. Collected Customs Tariff Rate

### Country-level collected customs tariff rates (key statistics)
- Botswana
  - Average 1994-2008: 18.5
  - % change 1994-2008: 7.3
  - Average 1994-2000: 16.8
  - Average 2001-2005: 18.1
  - Average 2006-2008: 23.4
- Gambia
  - Average 1994-2008: 10.2
  - % change 1994-2008: 23.5
  - Average 1994-2000: 9.6
  - Average 2001-2005: 11.2
  - Average 2006-2008: 10.0
- Ghana
  - Average 1994-2008: 5.6
  - % change 1994-2008: -62.9
  - Average 1994-2000: 7.0
  - Average 2001-2005: 5.1
  - Average 2006-2008: 3.0
- Kenya
  - Average 1994-2008: 8.6
  - % change 1994-2008: 21.9
  - Average 1994-2000: 8.9
  - Average 2001-2005: 9.6
  - Average 2006-2008: 6.1
- Lesotho
  - Average 1994-2008: 23.4
  - % change 1994-2008: 66.3
  - Average 1994-2000: 19.1
  - Average 2001-2005: 21.5
  - Average 2006-2008: 36.5
- Liberia
  - Average 1994-2008: 7.2
  - % change 1994-2008: 1,225.2
  - Average 1994-2000: 3.0
  - Average 2001-2005: 8.4
  - Average 2006-2008: 10.8
- Malawi
  - Average 1994-2008: 8.1
  - % change 1994-2008: -17.1
  - Average 1994-2000: 9.9
  - Average 2001-2005: 7.3
  - Average 2006-2008: 5.3
- Mauritius
  - Average 1994-2008: 9.3
  - % change 1994-2008: -63.2
  - Average 1994-2000: 10.6
  - Average 2001-2005: 9.6
  - Average 2006-2008: 5.5
- Namibia
  - Average 1994-2008: 22.9
  - % change 1994-2008: 3.7
  - Average 1994-2000: 20.8
  - Average 2001-2005: 21.6
  - Average 2006-2008: 29.9
- Nigeria
  - Average 1994-2008: 11.2
  - % change 1994-2008: 5.7
  - Average 1994-2000: 9.6
  - Average 2001-2005: 16.5
  - Average 2006-2008: 6.2
- Rwanda
  - Average 1994-2008: 12.9
  - % change 1994-2008: 45.1
  - Average 1994-2000: 13.9
  - Average 2001-2005: 14.3
  - Average 2006-2008: 8.4
- Seychelles
  - Average 1994-2008: 16.8
  - % change 1994-2008: -88.9
  - Average 1994-2000: 22.6
  - Average 2001-2005: 15.6
  - Average 2006-2008: 5.4
- Sierra Leone
  - Average 1994-2008: 23.8
  - % change 1994-2008: -44.7
  - Average 1994-2000: 28.0
  - Average 2001-2005: 22.1
  - Average 2006-2008: 16.9
- South Africa
  - Average 1994-2008: 10.0
  - % change 1994-2008: 88.8
  - Average 1994-2000: 6.2
  - Average 2001-2005: 13.3
  - Average 2006-2008: 13.3
- Swaziland
  - Average 1994-2008: 22.6
  - % change 1994-2008: 47.3
  - Average 1994-2000: 22.1
  - Average 2001-2005: 17.4
  - Average 2006-2008: 32.5
- Tanzania
  - Average 1994-2008: 3.8
  - % change 1994-2008: -8.8
  - Average 1994-2000: 7.7
  - Average 2001-2005: 5.3
  - Average 2006-2008: 3.9
- Uganda
  - Average 1994-2008: 7.8
  - % change 1994-2008: -73.7
  - Average 1994-2000: 9.9
  - Average 2001-2005: 6.4
  - Average 2006-2008: 5.2
- Zambia
  - Average 1994-2008: 11.6
  - % change 1994-2008: -82.6
  - Average 1994-2000: 18.0
  - Average 2001-2005: 5.9
  - Average 2006-2008: 6.3
- Zimbabwe
  - Average 1994-2008: 10.6
  - % change 1994-2008: -87.7
  - Average 1994-2000: 12.0
  - Average 2001-2005: 13.5
  - Average 2006-2008: 2.1

### Regional and subgroup averages (key statistics)
- Averages: All Anglophone Africa
  - Average 1994-2008: 13.1
  - % change 1994-2008: -31.3
  - Average 1994-2000: 13.5
  - Average 2001-2005: 12.8
  - Average 2006-2008: 12.1
- --SACU countries (Botswana, Lesotho, Namibia, South Africa and Swaziland)
  - Average 1994-2008: 19.5
  - % change 1994-2008: 33.3
  - Average 1994-2000: 17.0
  - Average 2001-2005: 18.4
  - Average 2006-2008: 27.1
- --Non-SACU Anglophone Southern Africa (Malawi, Mauritius, Zambia and Zimbabwe)
  - Average 1994-2008: 9.9
  - % change 1994-2008: -74.4
  - Average 1994-2000: 12.7
  - Average 2001-2005: 9.1
  - Average 2006-2008: 4.8
- --Anglophone East Africa (Kenya, Rwanda, Seychelles, Tanzania and Uganda)
  - Average 1994-2008: 10.5
  - % change 1994-2008: -64.1
  - Average 1994-2000: 12.6
  - Average 2001-2005: 10.2
  - Average 2006-2008: 5.8
- --Anglophone West Africa (Gambia, Ghana, Liberia and Nigeria)
  - Average 1994-2008: 11.8
  - % change 1994-2008: -29.2
  - Average 1994-2000: 11.5
  - Average 2001-2005: 12.7
  - Average 2006-2008: 9.4

### Observations from the collected data (derived from reported figures)
- Several countries experienced large negative percent changes in collected customs tariff rates between 1994 and 2008 (examples: Ghana -62.9, Mauritius -63.2, Uganda -73.7, Zambia -82.6, Zimbabwe -87.7).
- Some countries recorded large positive percent changes over the same period (examples: Liberia 1,225.2, Lesotho 66.3, South Africa 88.8, Swaziland 47.3, Rwanda 45.1).
- Regional averages indicate a general decline in collected customs tariff rates across All Anglophone Africa (Average 1994-2008: 13.1; % change 1994-2008: -31.3), while SACU countries show an increase (Average 1994-2008: 19.5; % change 1994-2008: 33.3).

*Source: IMF country reports; World Bank: World Development Indicators Database; and country websites.*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2011/_wp11184.pdf_