3.5.4 Collapse of local industries
A country achieves better economic growth by developing its
own industrial base. Smuggling undercuts prices of the locally manufactured
goods, thus destroying the market for local products. This leads to collapse of
local industries.
3.5.5 Unemployment
When there is unfair competition in the market, aggravated by
the collapsing of industries, the labour market (employment base) is eroded.
Many professionals, skilled and unskilled personnel remain jobless.
3.5.6 Harmful products
Surprisingly, Customers are not complaining since they benefit
from low priced smuggled goods. However, these goods are in most cases
of poor quality and have harmful impact to body health and
environment.
3.6 The Customs Anti- smuggling measures 3.6.1
Introduction
RRA continues to train its staff in anti-smuggling and fraud
detection techniques, and has continued to strengthen its partnership with
local authorities and security organs to combat smuggling and tax evasion of
all kind. There is also intensified surveillance and intelligence operation
that has led increased seizure of smuggled goods.
Special attention has been given to operations aimed at
fighting smugglers of some sensitive products such as liquors and wines,
powdered milk, and use of forged documents etc.
Chapter Four: Trade Facilitation by means of
Pre-Clearance 4.1 Introduction
As mentioned earlier, one of the objectives of Customs
Services is to facilitate trade. It is against this background that I was
prompted to analyze one of Customs Facilitation initiatives which is
Pre-clearance.
4.2 Background
In an effort to facilitate trade and economic development, the
Rwanda Revenue Authority has introduced Pre-Clearance. This facility greatly
benefits genuine traders and at the same time allows the authority to
selectively enforce controls for the betterment of our country.
This should result both in more efficient revenue collection
and a reduced administrative burden on the trading community. Streamlined
processing of entries also results in reduced clearance times.
Goods that are imported into or exported from Rwanda are
declared to Customs. With the exception of some goods carried as passenger's
baggage, goods of a value not exceeding a prescribed amount and certain other
categories of private or diplomatic importations
It became clear on the need to expedite certain clearances due
to the nature of goods or the urgency of such goods to be used in the community
or industry. Authorised traders can now present clearance documents for
processing when the goods have not yet been reported as arrived. However
certain conditions have to be met before lodgement of such documents to Customs
for processing.
4.3 Definition of Pre-clearance
Pre-clearance is a quick release procedure that allows trade
facilitation in that declarations can be submitted to Customs and processed
while the consignment/goods are yet to come. When the goods finally arrive,
quick document verification is carried out to check on the correctness of
submitted documents against the original consignment documents.
A physical inspection of goods can be carried out as a risk
assessment spot-check on pre-clearances. Post clearance audits may also be
conducted on pre- cleared goods
4.4 Legislation
The Article 80 of Law No 21/2006 of 28/04/2006 states that
The Commissioner General lays down the conditions for lodging and
processing declarations lodged prior to the presentation of the goods to
Customs
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