Untitled

Assessing the performance of Ethiopian Customs Commission in
Reference to Import Trade Facilitation: Perspective of Wheat and

Palm Oil Importer
By: Tekeba Girma
A Research Paper Submitted to the Addis Ababa University, School

of Commerce Graduate Program: Presented in Partial Fulfillment
of the Requirements for the Award of Master’s Degree in Logistics
and Supply Chain Management
Advisor: Busha Temesgen (PhD.)
Addis Ababa University School of Commerce

Department of Logistics and Supply Chain Management
Addis Ababa, Ethiopia
June, 2020
I
DECLARATION
I, the undersigned, hereby declare that the work contained in this thesis is my own original work
and that I have not previously in its entirety or in part submitted at any university for a degree.
Declared by:
Name: Tekeba Girma Signature: _______________Date: _______________
II
STATEMENT OF CERTIFICATION
This is to certify that the thesis prepared by Tekeba Girma, entitled “Assessing the
Performance of Ethiopian Customs Commission in Reference to Import Trade Facilitation:
Perspective of Wheat and Palm Oil Importer” submitted in partial fulfillment of the
requirements for the degree of Degree of Master of in Logistics and Supply Chain Management
(M.A in LSCM) complies with the regulations of the University and meets the accepted
standards with respect to originality and quality.
Signed by the Examining Committee:
Examiner: Shiferaw Mitiku (PhD.) Signature: __________________ Date: ________
Examiner: Reta Megersa (PhD.) Signature: __________________ Date: ________
Advisor: Busha Temesgen (PhD.) Signature: __________________ Date: ________
____________________________________________________________________
Chair of Department or Graduate Program Coordinator
III
ABSTRACT
The latest reports designed to monitor and evaluate country’s performance on trade facilitation
metrics revealed Ethiopia’s performance through Ease of Doing Business, Logistics
Performance Index, Trade Facilitation Index, and Enabling Trading Index was at lower level.
With this deprived status no studies had been conducted in Ethiopia on the limitation defined
(most studies particularly focused on Organization for Economic Cooperation and Development
countries). The main intent of this work was to evaluate the trade facilitation instruments
proposed by World Trade Organization with the ongoing activities in Ethiopia’s import trade,
thereby identifying existing gaps, assessing the overall consistency of the activities and delineate
potentials for improving the business environment through prioritizing Trade facilitation
measures. In assessment of this descriptive type of research and find solution for the problem the
researcher used quantitative approach and presents the analyzed data through latest version of
Statistical Package for Statistical Software 20 of semi-structured questionnaire collected from
judgmentally selected 56 representatives of importers, Customs Clearing Agent and Ethiopian
Customs Commission. The finding of the study revealed that the performances of Ethiopian
Customs Commission in facilitating import trade have at deprived level. Among the indicators
assessed appeal procedure, risk management, post clearance audit and authorize economic
programs had implemented in better of other measures. The reasons indicated that the
institution’s poor system on accessing information in all customs related matters, lack of
transparency to involve public and stalk holders at their level of content and less concerns made
to automate the formalities. Finally to enhance trade facilitation through Ethiopian Customs
Commission the study recommended: the commission to establish a system which enable to
consult on changes made through public media and efficiently designed website; furnish its
website and feed any changes; design the program to implement automation system as prompt as
possible and revitalize the existing system and transform it in best practice of Organization for
Economic Cooperation and Development or any succeeding countries.
Key Words: Ethiopian Customs Commission, Trade facilitation, Trade facilitation Indicators
IV
ACKNOWLEDGMENT
I would like to thank Dr. Busha Temesgen for his valuable advice and guidance that enabled me to
successfully complete this thesis. Also, sincerely thanks Ethiopian Customs Commission staffs and
executives who provided their thoughts and shared their working practices and needs.
I am indebted to all the research participants for sharing their ideas and insights for their positive
cooperation on distributing and collecting questionnaires and other necessary secondary data.
Finally I am grateful to all my friends who help me in editing, provided technical support even in their
hard time and your indispensible motivational assistance.
V
TABLE OF CONTENT
DECLARATION ........................................................................................................................................... II
STATEMENT OF CERTIFICATION .......................................................................................................... III
ABSTRACT.................................................................................................................................................. IV
ACKNOWLEDGMENT .................................................................................................................................V
TABLE OF CONTENT ................................................................................................................................ VI
ACRONYMS ANDABBREVIATIONS .......................................................................................................VIII
LIST OF TABLES........................................................................................................................................ IX
LIST OF FIGURS ....................................................................................................................................... IX
CHAPTER ONE ............................................................................................................................................ 1
INTRODUCTION ......................................................................................................................................... 1
1.1 Background of the Study ..................................................................................................................... 1
1.2 Ethiopian Customs Commission ......................................................................................................... 2
1.3 Problem Statement .............................................................................................................................. 4
1.4 Research Questions ............................................................................................................................. 5
1.5 Research Objectives ............................................................................................................................ 6
1.6 Significance of the Study ..................................................................................................................... 6
1.7 Scope of the Study ............................................................................................................................... 7
1.8 Limitation of the Study ........................................................................................................................ 7
1.9 Definition of Terms ............................................................................................................................. 8
1.10 Organization of the study .................................................................................................................. 8
CHAPTER TWO............................................................................................................................................ 9
REVIEW OF RELATED LITERATURE ........................................................................................................ 9
2.1 Theoretical Literature ......................................................................................................................... 9
2.1.1 Trade Facilitation ........................................................................................................................ 9
2.1.2 Measures/Indicators of Trade Facilitation .................................................................................. 9
2.1.3 Stakeholders in Trade Facilitation ............................................................................................ 14
2.2 Customs in Ethiopia .......................................................................................................................... 15
2.3 Empirical Literatures ........................................................................................................................ 17
2.4 Literature Gaps ................................................................................................................................. 20
2.5 Conceptual Framework .................................................................................................................... 21
CHAPTER THREE...................................................................................................................................... 22
RESEARCH METHODOLOGY .................................................................................................................. 22
3.1 Description of the Study Area ........................................................................................................... 22
VI
3.2 Research Approach ........................................................................................................................... 22
3.3 Research design ................................................................................................................................ 23
3.4 Data Sources and Types.................................................................................................................... 23
3.5 Target Population of the Study ......................................................................................................... 23
3.6 Data Collection Procedures.............................................................................................................. 25
3.7 Data Analysis .................................................................................................................................... 25
3.8 Reliability & Validity ........................................................................................................................ 26
3.9 Ethical Considerations...................................................................................................................... 26
CHAPTER-FOUR ....................................................................................................................................... 28
DATA PRESENTATION, ANALYSIS AND INTERPRETATION ................................................................ 28
4.1 Introduction....................................................................................................................................... 28
4.2 Demographic Characteristics of the Participants ............................................................................ 28
4.3 Reflection on the Indicators .............................................................................................................. 29
4.3.1 Information Availability ............................................................................................................. 29
4.3.2 Trade Community Involvement .................................................................................................. 32
4.3.3 Appeal Procedure ...................................................................................................................... 33
4.3.4 Customs Fees and Charges ........................................................................................................ 36
4.3.5 Automation Formalities ............................................................................................................. 37
4.3.6 Procedure Formalities ............................................................................................................... 39
4.3.7 Document Formalities................................................................................................................ 43
4.3.8 Cooperation of ECC with Agencies ........................................................................................... 44
4.3.9 Governance and Impartiality of ECC ........................................................................................ 45
CHAPTER-FIVE ......................................................................................................................................... 48
SUMMARY, CONCLUSIONANDRECOMMENDATIONS......................................................................... 48
5.1 Introduction....................................................................................................................................... 48
5.2 Summary of the Major Findings ....................................................................................................... 48
5.3 Conclusions ....................................................................................................................................... 50
5.4 Recommendation ............................................................................................................................... 51
Reference..................................................................................................................................................... 53
Appendix – Questionnaire........................................................................................................................... 55
VII
ACRONYMS ANDABBREVIATIONS
APEC Asia-Pacific Economic Cooperation
CCA Customs Clearing Agent
CEFACT Center for Trade Facilitation and Electronic Business
ECA United Nations Economic Commission for Africa
ECC Ethiopia Customs Commission
ECMS Ethiopian Customs Management System
ESLSE Ethiopian Shipping and Logistics Service Enterprise
ETI Enabling Trading Index
GAAT General Agreement on Tariffs and Trade
ITC International Trade Commission
LPI Logistics Performance Index
OECD Organization for Economic Co-operation and Development
SPSS Statistical Software for Social Science
TFA Trade Facilitation Agreement
TFI Trade Facilitation Indicators
WCO World Customs Organization
UNCTAD United Nations Conference for Trade and Development
WCO World Customs Organization
WEF World Economic Forum
WTO World Trade Organization
VIII
LIST OF TABLES
Table 3.1 Target Population ………………………………………………………………....24

Table 4.1 Frequency Distribution Demographic Characteristic………………………………28
Table 4.2 Frequency Distribution of Information Availability…………………………….....29
Table 4.3 Descriptive Statistics of Information Availability ………………………………...31
Table 4.4 Frequency Distribution of Trade Community Involvement …………….……......32
Table 4.5 Descriptive Statistics of Trade Community Involvement……………….………...33
Table 4.6 Frequency Distribution of Appeal Procedure……………………..………….……34
Table 4.7 Descriptive Statistics of Appeal Procedure………………………………………..35
Table 4.8 Frequency Distribution of Customs Fees and Charges…………….….…..………36
Table 4.9 Descriptive Statistics of Customs Fees and Charges…………………….……......37
Table 4.10 Frequency Distribution of Automation Formalities…………………….…….....37
Table 4.11 Descriptive Statistics of Automation Formalities…………………….………….39
Table 4.12 Frequency Distribution of Procedure Formalities………………………………..40
Table 4.13 Descriptive Statistics of Procedure Formalities…………….……….….………..42
Table 4.14 Frequency Distribution of Document Formalities…………………………….....43
Table 4.15 Descriptive Statistics of Document Formalities…………………………….…....44
Table 4.16 Frequency Distribution of Cooperation of ECC with Agencies…………….……44
Table 4.17 Descriptive Statistics of Cooperation of ECC with Agencies……..……….…….45
Table 4.18 Frequency Distribution of Governance and Impartiality of ECC………………..45
Table 4.19 Descriptive Statistics of Governance and Impartiality of ECC ………………...46
LIST OF FIGURS
Figure 2.1: Conceptual framework adapted from OECD study…………………..…………21
IX
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study

Trade facilitation refers to policies and measures aimed at reducing trade costs by
improving efficiency at each stage of the international trade chain. WTO define trade
facilitation as the “simplification of trade procedures”, understood as the “activities,
practices and formalities involved in collecting, presenting, communicating and
processing data required for the movement of goods in international trade” (OECD,
2011). As indicated in the study, UNCTAD extend their explanation on the definition of
trade facilitation in a way that; trade facilitation may cover measures regarding:
formalities, procedures and documents and the practice through standard and electronic
data communication in trade.
Trade facilitation enables the systems in trade structure more simplified and harmonized
through smoothing the flow of goods or logistic system at ports and customs.
Additionally it integrate and enhance efficiency of agencies involved in customs, border
management, transport infrastructure, information technology, regulatory environment,
product standards, Technical Barriers to Trade (TBT) and lower cost of moving goods
between destinations and across international borders (Roy, J. and Bagai, S., 2005).
Studies shows that measures to actively facilitate trade are increasingly seen as essential
to assist developing countries in expanding trade and benefiting from globalization. As it
assure to ease and speed up procedures and costs emerge at customs; efficiencies at
transportation, distribution and communication are also the gain received from trade
facilitation (TF) that incorporates issues (Milner, C., Morrissey, O. and Zgovu, E., 2008).
For developing countries like those finds in Africa trade facilitation contribute for
economic growth and poverty reduction through removing expediting to have open trade,
addressing to remove non-tariff trade barriers, lowering stubbornly high trade costs and
enabling to create competitive trade environment (Rippel, B., 2011).
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In the rapidly changing globalized world, increased connectedness between all
agencies/parties involved in international trade and supply chains is essential. In this
system of facilitating trade to better serve the trade communities‟ customs authority and
then port have significant role (Uzzaman, M.A. and Yusuf, M.A., 2011). In this regard
Ethiopian Customs Commission is designated by the national law and plays an integral
role in the facilitation of movement of goods entering the border of the country.
The study undertook to understand the relative economic importance and relevance of
trade facilitation measures for Ethiopia particular since others had focused mostly on
OECD member countries and rarely included nonmember developing countries as well as
missed getting particular study on Ethiopia. So that this study could fill this gap provide a
basis for prioritizing trade facilitation actions by governments.
This research therefore assessed the performance of the country from the inference of
ECC to uplift import trade facilitation in association with international TFI and
measurements (which initially develop by WTO and improved through OECD and other
researches).
1.2 Ethiopian Customs Commission

Ethiopian Customs Commission (ECC) is established by law following the organizational
structure changes in the federal government executive‟s organs under national
proclamation of 1097/2018; and from December, 2018 onwards customs commission
become an independent organization. As clearly defined on regulation number 437/2018
the powers and duties of the commission are:
 To assess duty paying value, collect duties and taxes, collect license and service charges in
accordance with laws;
 To inspect and examine documents of importers, exporters or any other person, for the
purpose of enforcing customs laws;
 To carry out studies for the establishment of customs station in any customs port, frontier
posts and transit routes and implement same up on approval by the Ministry;
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 To establish customs warehouse and approve the place for the deposit of import and
export goods, establish warehouse, give license for those who establish customs
warehouse, supervise the proper handling of deposited goods;
 To prevent and control the import or export of contraband goods and seize, take any legal
actions on such goods and means of transportation of such goods;
 To inspect and search any goods and means of transport entered/depart from Ethiopia
through customs ports, frontier posts, and other customs stations, assure that they are
being accustomed;
 To seize goods which are prohibited by the law not to be imported or exported, restricted
or un accustomed goods and take the necessary legal measures;
 To collect, organize and disseminate data of imported and exported goods;
 To carry out studies for efficient system of levying, valuation, and collection of customs
duties and taxes as well as ways systems of combating and repression of contraband
activities and implement the same approval;
 To sale, dispose, administer goods without owner, abandoned or forfeited;
 To issue, renew, suspend, or cancel various types of license in accordance with the
customs laws;
 To apply and implement modern system and method for valuation, assessment and
collection of taxes and duties and financial accounting and other related activities;
 To provide training to employees that enable s the commission to obtain efficient, customs
professional expertise;
 To provide efficient, equitable and quality service with in the sector based on the
principles of transparency and accountability, and enforce the proper implementation of
the incentives and tax exemption granted to investors and ensure that the privileges are
used for their intended purposes;
 To organize and compile statistical data on customs criminal offences and disseminate the
information to others as may be necessary;
 To plan and implement awareness programs that ease the enforcement of the customs law;
 To organize and operate customs laboratory;
3
 Plan, implement, evaluate in collaboration with federal police concerning the deployment
of the police force organized pursuant to this regulation and other relevant laws to prevent
criminal offences in violations of customs laws;
 To make international agreement regarding the customs administration To own property,
enter into contract, sue and be sued in its own name;
 Perform such other related activities required for the attainment of its objectives.
As we can look above details of duties designated to the commission, it is the prominent
organization delegated to take part in facilitating trade in cooperation with other agencies.
1.3 Problem Statement

One of the main outcomes of the World Trade Organization‟s 9th Ministerial Conference
in Bali, Indonesia, in December 2013 was an agreement on Trade Facilitation. They
concerned on the issue in connotation of its consequent impact gain through
implementation different trade facilitation measures on reducing trade transaction costs,
delay at the border control and slowing of trade flows (Agreement, W.T.F., 2013).
The agreement on Trade Facilitation (WTO, 2013); which is the basis for most trade
facilitation metrics; dealing with trade facilitation measures and obligations and describe
detail description of the twelve families of measures. OECD re-organized these twelve
families of measures in a way that make ease to measure the status of trade facilitation in
a country and cross country. The reorganized twelve indicators are: Information
availability; Involvement of the trade community; Advance Rulings; Appeal Procedures;
Fees and charges; Documents Formalities; Automation Formalities; Procedure
Formalities; Internal Cooperation; External Cooperation; Consularization and
Governance and Impartiality (Indicators, T.F., 2011).
The latest report of the organizations dedicated to monitor and evaluate country‟s
performance on trade facilitation metrics showed Ethiopia‟s rank to Ease of doing
business is 159th from 190 countries (World Bank 2020 report); its rank on Logistics
Performance Indicators is 126th from 160 countries (World Bank 2020 report); score of
TFI is 1.5 from best score value of 2.0 (OECD 2017 report) and rank 128th from 136
countries on Enabling Trading Index ETI (WEF 2016 Report).
4
As these metrics used the trade facilitation indicators as a variable to measure, these
results revealed current position of the country in trade facilitation is at discouraged level.
The fine performance in the trade facilitation benefits our country to remove non-tariff
trade barriers, attracting foreign direct investment, facilitating inter-African free trade and
assist negotiations in accession to World Trade Organization. In contrast the current
situations in the metrics assure the country to cost the possible benefits expected to get.
With this deprived status no studies have been conducted in Ethiopia on the limitation
defined here (most studies particularly focused on OECD countries), as far as the
knowledge of the researcher.
As explicitly defined on Ethiopian Customs Regulation No. 437/2018, the Commission is

the foremost agency at the border, plays a prominent performance in the release of goods
and the roles designated to the commission directly relates with indicators of trade
facilitation.
Ethiopia can use the result of the assessment to remove trade barriers and support its
accession to WTO negotiations as it was set as priority beyond review the current level of
performance on the measures. Thus, the study envisioned investigating the country‟s
performance through ECC in uplifting import trade facilitation.
1.4 Research Questions

In an effort to investigate the performance of the defined government institution to trade
facilitation; the study attempted to answer the following basic questions:-
 What is the performance of ECC in facilitating import trade?

 Which TFI (Information availability, Involvement of trade community, Appeal
procedures, Fees and charges, Formalities – documents, Formalities – automation,
Formalities – procedures and Internal Agency Co-operation) importantly
implemented and which don‟t through ECC?
 What are the reasons behind lower performance in the international trade
facilitation?
5
1.5 Research Objectives
1.5.1 General Objective
The main intent of this work was to evaluate implementation of trade facilitation
indicators proposed by WTO with the ongoing activities in Ethiopia‟s import trade,
thereby assessing the overall consistency of the activities, identifying existing gaps and
delineating potentials for improving the business environment through prioritizing trade
facilitation measures.
1.5.2 Specific Objectives
As per the main objective sated initially, the research met the following specific tasks:
 To assess the performance of ECC in facilitating import trade.

 To explore the TFI predominantly contribute for existing practice of import trade
facilitation through ECC.
 To explore the reasons behind our lower performance in the international trade
facilitation metrics.
1.6 Significance of the Study

As far as knowledge of the researcher is concerned no research has done on the role of
salient government institution (Ethiopian Customs Commission) in uplifting of country‟s
trade facilitation. Hence, the finding of this paper assumed to contribute for the following
academic and organizational values:
 Provided insight and information for administrators, practitioners, and researchers

about the performance of ECC in facilitating import trade.
 ECC could be benefited from the survey findings and feedback, and could
implement in playing its part in enhancing national trade facilitation
 Contributed favorably for the existing limited empirical work on the trade
facilitation in the country; serve as a springboard for future and further research in
the area to other researchers.
6
1.7 Scope of the Study
Due to most indicators for trade facilitation measurements are under the responsibility
scope of ECC, the study was focused and delimited on assessing the performance of the
defined government institution in enhancing import trade facilitation. The study used
wheat and palm oil importers and their customs clearing agents to represent the sector
since the two product line comprise 5% of total country‟s total and 8% of consumable
goods import; they use both multimodal and unimodal custom clearance system as well
as the researcher abled to get accurate data from all importers since their number is
delimited by government as well as long time experience developed in the sector.
In addition, WTO has developed twelve indicators in measuring trade facilitation and it
consider priory in accession to membership. Scholars used these measures in undertaking
of studies on WTO members and developing countries. As well Ethiopia is on the way to
accede WTO since 2003 and the measures are priory relate with the role of the defined
institution in our practice, so that the researcher customized the indictors to study end.
Therefore, In consultation with expertise on the area, from these twelve indicators the
study used nine in assessing the performance of the role of ECC including information
availability, involvement of trade community, appeal procedures, fees and charges,
document formalities, automation formalities, procedures formalities, internal agency co-
operation and governance and impartiality.
1.8 Limitation of the Study

Although this study tried to cover to assess the performance of ECC on respect of trade
facilitation indicators it faced some difficulties in carrying out of this study. One
challenge was lack of well-organized reference materials and previously conducted
studies; which was by the reason that most of the previous studies on the area had
importantly been focused on OECD member countries and rarely includes non-member
developing countries as well as getting particular study on Ethiopia.
The other challenge was getting primary data from ECC and the importer representatives
to respond to the questionnaire by the reason of confidentiality, personal will and
unwillingness to communicate due to fear of physical contact in relation with the global
7
epidemic of Covide 19. To protect the limitation the researcher approached and convened
officials at the institution and importer for the confidentiality and cooperation to the
research data by his familiarity for the sector.
1.9 Definition of Terms

Trade Facilitation:- is an activity, practice and formality involved in collecting,
presenting, communicating and processing data required for the movement of
goods in international trade. It also includes for the measures regarding:
Formalities, procedures and documents and the use of standard and electronic
messages for trade transactions (Indicators, T.F., 2011).
Ethiopian Customs Commission (ECC):- is government institution responsible for

administration of customs law and collection of import and export duties and
taxes and which also in charge for the application of other laws and regulations
relating to the importation, transit and exportation of goods as designated under
national proclamation of 1097/2018.
Trade Facilitation Indicators (TFIs):- are the twelve measures of the WTO included in
the negotiations to consolidate in determining, developing trade facilitation
matrices and negotiating trade facilitation, which are composed of variables.
Customs Clearing Agent (CCA):- is a person who carries on the business of arranging
for the Customs clearance of goods and who deals directly with the Customs for
and on behalf of importer.
1.10 Organization of the study

This study has organized in five chapters. The first chapter consisted of introduction and
it included the study background, statement of the problem, and objective of the study,
significance of the study, scope and limitation. The second chapter dealt on the review of
the related literature the third chapter deals regarding research method. Chapter four
explained about the data analysis, presentation and findings and finally chapter five
presented conclusion and recommendations
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CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Theoretical Literature
2.1.1 Trade Facilitation

There is no standard definition of trade facilitation in public policy discourse. In a narrow
sense, trade facilitation efforts simply address the logistics of moving goods through
ports or more efficiently moving documentation associated with cross-border trade. In
recent years, the definition has been broadened to include the environment in which trade
transactions take place, to include transparency and professionalism of customs and
regulatory environments, as well as harmonization of standards and conformance to
international or regional regulations. These move the focus of trade facilitation efforts
inside the border to “domestic” policies and institutional structures where capacity
building can play an important role. In addition, the rapid integration of networked
information technology into trade means that modern definitions of trade facilitation need
to encompass a technological concept as well (Wilson, J., Mann, C. and Otsuki, T.,
2003).
Common to all trade facilitation definitions drawn from concerned different institutions
and scholars that, it‟s evolving definition is the desire to improve the trade environment
and reduce or eliminate any transaction cost between business and government. The main
objectives of trade facilitation is to develop and enhance simplification, harmonization
and standardization of trade procedures to ease, quick and economize the trade system by
eliminating all unnecessary elements and duplications in formalities, process and
procedure. Aligning national formalities, procedures, operations and documents with
international conventions, standards and practices also part of the practice. At this end,
trade facilitation is now become the issue for country‟s politics, economy, business,
administration, and technology at once (Grainger, A., 2011).
2.1.2 Measures/Indicators of Trade Facilitation

Different organizations dedicated on trade facilitation design different measures and
indicators to evaluate the performance of countries as well as institutions performance in
enhancing trade facilitation. IEG/WB Group study (Eugenia Go, 2017) reveals for, many
9
of the specific TFIs of interest to policy makers are not routinely nor systematically
developed. As referred in the study, Wilson, Mann, and Otsuki are some of the earlier
studies that conducted surveys to develop indicators on port efficiency, customs
environment, regulatory environment, and e-business usage for economies of the Asia
and Pacific Economic Cooperation, and later on, to a larger set of countries. Over time,
the recognition of the importance of these indicators gave rise to the development of
institutionalized, regular, and internationally comparable indicators compiled by the
World Bank, World Economic Forum (WEF), and later by the OECD. Like that of other
metrics World Bank has also been conducting the surveys through LPI every two years,
covering 160 countries by 2014. The LPI has six components that can be grouped
according to trade facilitation inputs – customs, infrastructure, ease of arranging
shipments; and outcomes – international shipments, timeliness, and tracking and tracing
and the participant in the survey are agents engaged in trade logistics (WTO 2015). The
other metric to measure indicators is Enabling Trading Index (ETI) of WEF. The index
comprises seven pillars from 56 indicators collected from international organizations
complemented by information from the responses of CEOs and top business leaders
through the WEF Executive Opinion Survey (WEF 2016). The ETI covers 138 countries
and has been updated annually since 2010. Finally, the OECD launched the TFIs in 2012,
which was updated in 2015 to cover 152 countries.
The above described metrics are relating with and directly measure and evaluate rank
with trade facilitation in one or another way. Among others the measures and indicators
developed by WTO to measures trade facilitation are predominant and better to look
them in detail.
As explicitly presented on the ITC Business Guide for Developing Countries

(Agreement, W.T.F., 2013) WTO develop measures that indicate the status of trade
facilitation. As indicated in agreement details of the guide; the current structure of the
WTO negotiation process follow closely in order to maintain the relevance of the
resulting indicators for negotiators, implementing authorities and donors. The Section I of
the Agreement on Trade Facilitation (WTO, 2013b) dealing with trade facilitation
10
measures and obligations and describe detail description of the twelve families of
measures. The indicators includes for
Article 1: Publication and availability of information

Article 2: Prior publication and consultation
Article 3: Advance rulings
Article 4: Appeal or review procedures
Article 5: Measures to enhance impartiality, non-discrimination and transparency
Article 6: Fees and charges imposed in connection with import and export
Article 7: Release and clearance of goods
Article 8: Border agency coordination
Article 9: Movement of goods under customs control intended for import
Article 10: Formalities connected with importation and exportation and transit
Article 11: Freedom of transit
Article 12: Customs cooperation
The guiding book discussed that the first group of articles, Articles 1 -5, essentially
address transparency issues, and expand on GATT Article X and The next group of
articles, Articles 6-12, are concerned mainly with fees, charges and formalities for
import, export and transit, expanding on GATT Articles V and VIII.
According to the study undertook on the Impact on Trade Costs–covering OECD member
countries (Indicators, T.F., 2011); these twelve families of measures have been re-
organized, to take into account similarities between measures, underlying shared
components, as well as areas where further distinctions were warranted. This
reorganization result in the following twelve indicators:
a. Information availability [Art.1+2+11]

b. Involvement of the trade community [Art.2+11]
c. Advance Rulings [Art.3]
d. Appeal Procedures [Art.4]
e. Fees and charges [Art.6+11]
f. Formalities – Documents [Art.7+10+11]
g. Formalities – Automation [Art.7+10+11]
11
h. Formalities – Procedures [Art.5+7+10+11]
i. Cooperation – Internal [Art.9.1+11]
j. Cooperation – External [Art.9.3+11+12]
k. Consularization [Art.8]
l. Governance and Impartiality
The study (Indicators, T.F., 2011) extend its discussion through, the above defined
indicators have important in investigating a nationwide trade facilitation measures
whereas; in undertaking of cross-country studies and drawing general conclusions about
the most effective trade facilitation tools other concepts has developed and being
implemented.
Among all matrices and measures practiced by the institutions; the twelve indicators and
measures early initiated by Wilson, Mann, and Otsuki and later developed by OECD are
comprehensive and better with some modification to align with country does position
actually exist. This is as the foregone context was importantly focused and aligned with
the member countries. Since any countries can enhance to facilitate at their pace of
change and rational customizing the indicators in a way to measure and support the
facilitation then are critical and rational.
2.1.2.1 Variables in Measuring of Trade Facilitation
The TFIs are consistent with the twelve articles of the WTO consolidated negotiating
text. These twelve indicators are composed of some variables and the number of variables
not necessarily demand to be fixed, possibly exceed or go below in such a way that the
study on Indicators, T.F., 2011 used Ninety Eight and the other study by Moïsé, E. and
Sorescu, S., 2013 used Seventy Eight.
In measuring every performance and status of trade facilitation in every country,

customizing from perspectives of the country to be investigated in consultation with
expertise is essential. This study used variables customized from these two works to the
specific topic end.
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2.1.2.2 Trade Facilitation in Africa through WTO Indicators
As stated on study by Valensisi, G. and Lisinge, R.T., (2013), there is ample evidence
that African countries and Regional Economic Communities, to a varying degree, are
already implementing some trade facilitation measures aligned to those of the WTO
indicators. For instance, most of the regional economic communities are implementing
several initiatives, in the areas of:
 Customs (regional customs guarantee schemes, harmonized customs documents,

customs information sharing, interconnectivity of customs systems, introduction of
Single Customs Territory, and Authorized Economic Operators - AEOs);
 Integrated/ coordinated border management (One Stop Border Posts, harmonization
and extension of working hours);
 Transit transport (harmonized road transit charges, Carrier‟s License Schemes,
Third Party insurance schemes, harmonized axle load limits); and
 Information technology (national and regional Single Windows, regional cargo
tracking), among others.
The above defined study envisaged that the result of these indicators will assist
negotiators and policy makers in identifying areas to channel capacity building efforts in
the context of the World Trade Organization negotiations on trade facilitation. In addition
the indicators are important to implement trade facilitation measures to remove barriers to
trade, at their own pace and with their own priorities regardless of the World Trade
Organization negotiations. The measures are initial condition for country human and
institutional capacity development requirements for effective implementation of trade
facilitation and funded by development partners. And finally the improvement in the
variables of the measures correspondingly impact on country performance of trade
facilitation through measures of matrices (WTO Ease of doing business and LPI, OECD
TFI and WEF ETI).
13
2.1.3 Stakeholders in Trade Facilitation
2.1.3.1 Customs
With an increased emphasis on administrative reform, governance, and security, the need
for an efficient and effective customs administration is felt urgently. World Customs
Organization (WCO) defines Customs as “the government service which is responsible
for the administration of Customs law and the collection of import and export duties and
taxes and which also has responsibility for the application of other laws and regulations
relating, inter alia, to the importation, transit and exportation of goods”(Ethiopian
Customs Guide, 2017).
Customs is an intrinsic element of any cross border movement of goods and services, and
yields significant influence on the national economy. It is the unique vantage point,
where it has a good understanding of the supply chain as well as routine access to trade
intelligence and data. Beyond facilitating trade, Customs performs other important
functions such as revenue collection and protection against dangerous goods. The time
taken for clearance of goods has an impact on the competitiveness of countries (Roy, J.
and Bagai, S., 2005).
The World Bank‟s LPIs suggest that customs authorities are only responsible for
approximately one-third of the delays that the trading community encounters at the
border, and that a number of other government institutions are responsible for the
majority of the problems traders face at the border (Uzzaman, M.A. and Yusuf, M.A.,
2011).
2.1.3.2 Other Government Institutions
Aside from Customs, other institutions are also in charge for the overall undertaking and
delays in border trade. Thus, for trade facilitation to be achieved, a whole-of-government
approach to border management is pivotal where other government agencies involved in
international trade flow need to become efficient and responsive in the global trade
facilitation effort (as recognized by the Revised Kyoto Convention and referred to in
Widdowson, 2007).
14
In Ethiopian practice also governments and the trading community have a powerful
common interest in this regard. As denoted from the study of Addis Ababa Chambers of
Commerce (2010) the below listed agencies/ministries have involvements in the
international trade of the country:
a. Ethiopian Road Transport Authority: For imports of motor vehicles and transport
machinery.
b. Ethiopian Food, Medicine and Health Care Administration and Control Authority
(EFMH): For human and animal drugs and medical equipment.
c. Ministry of Agriculture: For pesticides, seeds, plants and other articles which are
liable to be infested or infected with plant pests, live animals and animal products.
d. Quality and Standards Authority of Ethiopia provides import accreditation by
inspecting and certifying products for which relevant Ethiopian standards have been
established and are made mandatory under the Council of Ministers Regulation No.
13/1990.
e. National Bank of Ethiopia issues import/export permits involving foreign exchange
therefore, activities that relate to the calculating and recording of the time needed,
As indicated on the source the following goods are exclusively imported by the following
institutions: The Ethiopian Telecommunications Corporation on Communication
apparatus and similar equipment like radio receivers; National Lottery Administration on
Gaming machines, lottery tickets and games; national security organs on Armaments,
dynamites and firearms; Ethiopian Tobacco Enterprise on Cigarettes; and Ethiopian
Petroleum Enterprise on Petroleum.
2.2 Customs in Ethiopia

In align with the context of WTO definition on customs, the function of ECC include the
enforcement of the Customs Proclamation provisions governing the import and export of
cargo, baggage and postal articles; the arrival and departure of vessels, aircrafts, and
other means of transport; goods in transit; and the governance of any goods subject to
customs control, including rights and obligations of persons taking part in customs
formalities. Customs operations involve the administration of customs law relating to the
importation, exportation, movement or storage of goods and the collection of duties and
15
taxes. In this regard, customs operations are central for trade facilitation and economic
development of a country. The inferred reference also presented that ECC is currently
developed different modern technologies like Electronic Single Window System,
Electronic Customs Management System (ECMS), Cargo Trucking and modern cargo
scanning technologies to facilitate the international trade and to support foreign direct
investment (Ethiopian Customs Guide, 2017).
2.2.1 Ethiopian Import Processes
According to the study by UNCTAD (2018) on The Djibouti City – Addis Ababa Transit
and Transport Corridor: Turning Diagnostics into Action; the Enhanced Integrated
Framework, a joint effort by international organizations to bring together resources to
help the world‟s least developed countries state the process for importing goods into
Ethiopia. As it presented on the study many stalk holders involve in the process and from
those the main which operate by the customs involves for:
The Djiboutian freight forwarder registers and validates the import declaration (“IM8”)
and generates the transit document T1 through the Sedona Word System from its
headquarters.
The Djiboutian customs authority verifies this document, validates it, and, and issues
three copies that are then transmitted to the Djiboutian freight forwarder.
The driver receives copies of the T1 with the custom‟s seal for each means of transport
and submits the T1 at the exit gate of the port, at checkpoint and at different checkpoints
on national territory.
At the checkpoints, the Djiboutian Customs verify the compliance of the T1 with the
means of transport, the container and the seals. Then, the T1 is scanned with a barcode
reader. The T1 is cleared at the Galafi Gallile border.
The truck with its cargo then crosses no-man‟s land (a few kilometers) and enters into the
Ethiopian Galafi customs control zone.
On leaving Galafi the cargo travels to the first customs checkpoint at Mille. The truck
enters the customs yard, the seals and the particulars of the cargo and truck inspected, and
16
the time is recorded. The truck then leaves the yard. If the cargo consists of vehicles, the
transporter does not enter the customs yard. Instead, inspectors check all the engine
numbers and chassis numbers of the vehicles on the transporter and, when this is done,
the truck departs.
On leaving Mille, the truck proceeds to Awash, where the truck and cargo are weighed on
a weighbridge. The truck and cargo then proceed to the customs checkpoint, where the
particulars of the cargo and truck, and the time, are recorded. (The customs checkpoint
was still being constructed in early 2017, and so the recording systems were manual and
the queuing time and checking time amounted to four to five hours.)
On leaving Awash, the truck and cargo proceed to an inland container depot, either
Modjo or Kaliti, on the border of Addis Ababa. There, the clearance and warehouse
process takes place. In this extended process of importing goods the role of ECC is
indispensible and the lion share of all agencies,
2.3 Empirical Literatures

As per the study presented by Andrew G. in his PhD thesis on 2007 and accessed on
World Custom Journal on 2012 about „Trade Facilitation and Supply Chain Management:
a case study at the interface between business and government‟; the evaluation of trade
facilitation is multidisciplinary in nature. In contrary with its broadening and vital nature
of the concern the research undertook were little in number. The obstacles and forces
inhibiting the implementation of TF are far less understood (Grainger, A., 2011).
2.3.1 Trade facilitation Indicator in OECD Countries
As indicated below The OECD undertook trade facilitation measures impact on trade cost
to forward idea that support the country in enhancing to facilitate their trade. The study
used the twelve indicators developed by the institution ate its conference in Bali 2013.
The work on developing TFIs in undertaken to date has allowed us to build a set of
indicators covering the different dimensions of trade facilitation. Despite some problems
with missing data and a few ambiguous results, the indicators appear robust and almost
all tested for their impact on trade flows or trade costs (Indicators, T.F., 2011).
17
The main findings indicated on the study that some indicators have a larger impact than
others on trade flows and trade costs, at least in the current data and country sample.
Sector specific results show that the indicators are especially valuable for manufactured
goods. This conclusion is consistent with the way the indicators are built, as agricultural
goods specificities (especially the perishable/non-perishable nature of goods) are poorly
accounted for the indicators due to the lack of replies to the questionnaire in this
particular area.
Though the use of the indicators should enable countries to better assess the
implementation of trade facilitation measures in the countries and which trade facilitation
dimensions deserve priority, it is unable to undertake such comprehensive investigation
and measure the level each indicators for those countries owed for data constraints or has
no such organized data like Ethiopia and non-member states of OECD and WTO. In such
countries getting basic data on some variable is difficult and non-mandatory like on
measure of Advance ruling, Consularization, External agency cooperation and some
others.
2.3.2 Priority Measure to Trade Facilitation in Bangladesh
The study by Uzzaman and Yusuf, 2011, has identified seven important areas where
measures for trade facilitation are needed. Which are Further simplification of
documentation requirements in Customs; Capacity building in Ports and Customs through
adequate logistics, manpower, training; Establishment of testing laboratories in
Ports/Customs houses; Improvement in customs inspection, assessment and control
procedures (to avoid writ petition and litigation by importers); Computerization and
automation of trade procedures in both Customs and Ports; Timely publication and
dissemination of trade rules and regulations and establishment of enquiry points and
Consultation with business/stakeholders for proper implementation of regulations, mutual
trust and cooperation.
As it looked above the result delivered from the study and elements used to measure the
trade facilitations are not comprehensive, where as it tried to observe the variables
actually looks through the researcher on a way to get solution for the problems got at the
country‟s situation on the period the study undertook. The study shows that to make
18
investigation on trade facilitation using all variables developed by WTO is not mandatory
and possible to customize.
2.3.3 The OECD Analysis of Indicators Impact on Non-OECD Countries
The study prominently aimed to assess the relative economic and trade impact of specific
trade facilitation measures on non-OECD countries. The analysis constructed and used
the twelve TFIs, those corresponds to the main policy areas under negotiation at the
WTO, in order to estimate the impact of those policy areas on trade volumes and trade
costs in all WTO member countries and observers. The econometric analysis reveals that
enhancing trade facilitation has a positive impact on trade flows. The result of the
analysis indicates that some indicators have a larger impact than others on trade flows
and trade costs. Sector specific results show that the indicators are especially valid for
manufactured goods. This conclusion is consistent with the way the indicators are built,
as agricultural goods specificities (especially the perishable/non-perishable nature of
goods) are poorly accounted for by the indicators due to the lack of available information
in this particular area (Moïsé, E. and Sorescu, S., 2013).Overall, the indicators that seem
to have the greatest impact on trade volumes and trade costs for trade flows are:
information availability, documents formalities, automation formalities, procedures
formalities and governance and impartiality.
When seeking to assess the relative importance of the different dimensions of trade
facilitation at the manufacturing sector level, some consistent results are obtained also
for: involvement of the trade community, advance rulings and appeal procedure.
The study aimed to assess the relative economic and trade impact of specific trade
facilitation measures on non-OECD countries and have tried most countries but some
variables were applicable only for OECD countries. Designing the instrument and
measures in a way to align for most developing countries was the limitation.
19
2.4 Literature Gaps
Many researcher use different category of indicators to measure the trade facilitation
whereas the analysis construct and use the twelve TFIs, which developed by WTO
because African countries are already stepping up efforts to facilitate trade are largely
consistent with the proposed WTO provisions and additionally Ethiopia is on the way to
accede WTO since 2003 (Valensisi, G. and Lisinge, R.T., 2013).
The report extend its explanation that trade facilitation is one of the clusters in African
Union‟s Action Plan on Boosting Intra-African Trade, and the renewed attention to trade
facilitation is expected to consolidate ongoing efforts by Regional Economic
Communities and their member States, whose activities are largely consistent with the
proposed WTO provisions. Evaluate the performance and filling the gaps of ongoing
activities at the national level is the main purpose of the study.
The study by Indicators, T.F., (2011) on TFI in OECD Countries shows the study used
twelve variables with designated measures; OECD‟s investigation (2012) on the
Indicators Impact on Non-OECD countries used the same variables with limitation of
data getting from non OECD countries and study by Uzzaman and Yusuf, 2011 on trade
facilitation in Bangladesh has considered seven important measure in evaluate country‟s
trade facilitation level and priority. These studies indicates to use the indicators
developed by OECD in 2013 Bali conference are viable to measure performance of trade
facilitation of a country while to tackle the limitation looked in the consistency of the
study result customizing the variables from actual status of the country being studying is
expecting. So that validate the developing countries reality from Ethiopian practice is
other effect of the study.
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2.5 Conceptual Framework
As scholars define customs Authority is the most important body in trade facilitation, and
in Ethiopian case the legally designated institution to manage these responsibilities is
ECC. Therefore from the literature we explained above and detail responsibility defined
for the institution, the construct develop looks for:
Figure 2.1: Conceptual framework adapted from OECD study (Moïsé, E. and
Sorescu, S., 2013)
Trade Facilitation Indicators at ECC

 Information availability
 Involvement of trade community
 Appeal procedures
 Fees and charges
 Formalities – documents
 Formalities – automation
 Formalities – procedures
 Internal Agency Co-operation
 Governance and Impartiality
Source: Researcher, 2020
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CHAPTER THREE
RESEARCH METHODOLOGY
This chapter presented the research design and the method employ in undertaking of the
actual research work. Research design and method is the main plan that guides on how to
approach a specific research topic and set of methods and procedures used in collecting
and analyzing measures stated in research problem part of the study. In this part the
researcher outlined the research approach, the research method, survey type, the methods
of data collection, the methods used and types of data analysis and the ethical
considerations deployed in conducting of the research through answering research
questions depicted in introductory part of the study.
3.1 Description of the Study Area

The study ultimately intended to evaluate the performance of ECC in trade facilitation
and scrutinize their degree of impact. Accordingly, the research assessed the
contemporary status of import customs practice in relation to trade facilitation with the
aim of comparing the trade facilitation instruments proposed by WTO with the ongoing
activities in Ethiopia‟s import trade.
3.2 Research Approach

From several strategies in which the research approaches to be presented qualitative,
quantitative and mixed approaches are prominent. Quantitative research approach is
generally associated with the positivity paradigm and it usually involves collecting and
converting data into numerical form so that statistical calculations can be made and
conclusions drawn. Whereas, the qualitative research approach usually associated with
the social constructed nature of reality and it gone to uncover the deeper meaning and
experience of emotions. Lately the mixed approach type uses the mix of the two.
The study variables were defined and made to be numerical and statistical calculation and
analysis has deployed. The researcher has also designed a questions that need to address
and investigated. So that the research approach applied was quantitative research
approach type.
22
3.3 Research Design
The research design could be exploratory, descriptive or explanatory. Exploratory studies
intend for developing well-grounded picture of the situation and basic knowledge within
the problem area.
Descriptive research is appropriate when a problem is clearly structured but demand to

describe the situation in terms of its characteristics and clarify the background
information behind the problem. As well it aimed at casting light on current issues or
problems through data collection that enables them describe the situation more
completely in the interest to own one dependent variable. Explanatory research is useful
for studying relations between causes and symptoms or when the problem demands to
substantiate (support or refute by evidence) an explanation or prediction. Exploratory
research intends to explore the research problems that has not been clearly defined yet;
without objective to find solution to the problem.
Thus, the problem of the study has defined clearly and the possible cause reviewed by the
theoretical and empirical assessments while demanding to investigate the fact on the
proposed situation. Therefore, in purpose of accurate portraying of the fact on variables
and to discover the association among selected variables and to answer the questions on
the ongoing events of the present, descriptive design preferred among others. Therefore,
this study employed descriptive research design.
3.4 Data Sources and Types

To assure reliability and accuracy of the study, the researcher used both the primary and
secondary sources of data. The primary data are collected from the targeted population
through questionnaires and secondary data from published material in academic and
practitioner journals, proclamations, books, reports and internet. The secondary data from
published material in academic and practitioner journals contributed to develop
constructs and to support data collection instrument and result presentations.
3.5 Target Population of the Study

The target populations for the research, the group to which the findings are applicable
were defined, consistent with the statement of the problem and objectives. The target
23
populations of the study were strictly confined to: palm oil and wheat importers and their
corresponding custom clearing agents as well as ECC. As data received from Ministry of
Trade and Industry the importers are 15 organizations engaged in importing of palm oil
and wheat in the country. The selected product were representative for the import sector
since they constitute 8% of total consumable and 5% of total national import volume;
they use both multimodal and unimodal custom clearance system as well as the
researcher abled to get accurate data from all importers since their number is delimited by
government as well as long time experience developed in the sector (ECC import export
data, 2018). The data collected from representatives of the organizations through
designed instrument for the questionnaire.
The participants in the survey were all representatives from targeted population. The
members were all the expertise that have special relationship with the fact under
investigation, sufficient and relevant work experience in the practice as well as adequate
understanding on the subject develop through design data collection instrument. The
target population for the study consisted from:
 The 15 palm oil and wheat importers authorized to import Palm oil and wheat in
2018,
 The 14 Customs Clearing Agent (of the above defined importer) and
 Ethiopian Customs Commission
The table below shows the distribution of possible respondents (target distribution).
Table 3.1 Target Population
Target group Size Strata
Customs 16 27%
Importer 30 50%
CCA 14 23%
Total 60 100%
Source: Researcher, 2020
24
3.6 Data Collection Procedures
The basic guidelines of a research wrote by Kabir, S.M.S., (2016) indicated that data
collection is the process of collecting, assessing and computing information on variables
of interest, in a designed technique that enables one to answer stated research questions
and evaluate outcomes. Data collection is primarily vital stage in undertaking research
and it starts with determining what kind of data required followed by the selection of a
sample from a certain population. The Quantitative data collection methods rely on
structured data gathering instruments which aligned with equipped and prearranged
response categories. Of these instrument questionnaire is the most commonly used
method.
As far as a data collection tool is concerned, the conduction of the research involved the
use of structured questionnaire in collecting of quantitative data. The questionnaires
development considers the trade facilitation measures/indicators developed by WTO in
2013 and different literature reviews. Each question was reviewed on the research
objective then the entire question tested by customs experts. To elicit additional
information, the respondents were also requested to provide open-ended responses to
reflect their opinions which they felt to strengthen their responses. Questionnaires
collected from the respondents through the method of mailing and self-administer ways.
3.7 Data Analysis

Data analysis is the way that the researcher destined to meaningful intuitions from
collected a mass of data. The first stage of analyzing data is data preparation, where the
aim is to convert raw data into something meaningful and readable through validate edit
and code the raw data to be collect by the design instrument. The prepared date then
analyzed through the most commonly used descriptive analysis.
The data collected through questionnaire had checked about correct completion,
consistency and accuracy. Then it was arranged to simplify coding and tabulation
descriptive statistics was used by way of percentages, mean, standard deviation, tables
and frequency distributions to analyze the data by the help of statistical software called
SPSS version 20.
25
3.8 Reliability & Validity
To enhance the validity and trustworthiness of the data collected and results presented in
case studies:
 Consistent measurement procedures to evaluate evidence related to the inferences
have employed triangulation from several parallel studies of the same nature use.
 Questionnaire has prepared very carefully so that it prove to be effective in
collecting the relevant information.
 Modification on the questions has deployed for those questions experts‟ rose
claim and advice to increase reliability of the instrument.
 The collected data has crosschecked through a triangulation process which
combine the two research methods (survey result and inference from literatures)
In addition, the researcher used the Cronbach Alpha testing tools, of the mostly applied
by social researcher (Sekaran, 2003). In Cronbach‟s Alpha reliability analysis; the closer
to 1.0 is the higher the internal consistency reliability. Reliability less than 0.6
considered poor; Reliability in the range 0.7 is considered to be acceptable and Reliability
more than 0.8 are considered to be good. In this study, all trade facilitation indicating
variables met the above requirement. The alpha value for the total variable was 0.871,
which assures the variables used in in undertaking of the research are reliable.
Content validity has ensured through an extensive literature review of published material
in academic and practitioner journals, and by discussion with experts and scholars in this
field.
The researcher used five-point scale to measure the level of the factors; score 1 for
strongly disagree, 2 for disagree, 3 for neutral, 4 for agree and 5 for strongly agree.
3.9 Ethical Considerations

Confidentiality and privacy are some of the most corner stone of field research activities
in order to get relevant and appropriate data. This relates to moral standards that the
researcher considered all research methods in all stages of the research design. In the
research approach the researcher has followed three principles; namely beneficence
“above all does no harm”, respect for human dignity “share the aim and purpose of study
26
and giving the right to self-determination” as well as justice ‟right to fair treatment and
privacy”.
The researcher assured the purpose of the research paper and confidentiality of any
information gathered through questionnaire on the introductory part of the paper and the
researcher approached and explained the purpose and assured the confidentiality to the
respondents during data gathering.
27
CHAPTER-FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction
In this chapter the data obtained from the structured questionnaires were analyzed,
presented and interpreted by percentages, proportions, tables and frequency distributions
via SPSS version 20.
Among the distributed 60 questioners 30 for representative of 15 importer (at each
company the officials and experts on the operation of import had accompanied); 14
representative of 14 CCA and for 16 representatives of ECC (customs official and
expertise those concerned on import customs procedure management) and the returned
questionnaires had compiled and analyzed.
4.2 Demographic Characteristics of the Participants

To collect required data and facts about ECC performance in facilitating import trade 60
questionnaires were distributed and 56 (response rate was 93%) collected. Hence, the
analysis and interpretation of participant opinion were carried out based on 56 (93%) of
the collected questionnaires.
Table 4.1: Frequency Distribution Demographic Characteristic
Age Ranges Below 25 26 - 35 36 - 50 Above 50

Frequency 3 15 26 12
% 5% 27% 46% 21%
Sex Male Female
Frequency 45 11
% 80% 20%
Level of Education Diploma BA/BSc MA/MSc PhD
Frequency 4 41 11
% 7% 73% 20% 0%
Work Experience < 5 Years 6 - 10 Years 11 - 15 Years More than 15 years
Frequency 5 21 22 8
% 9% 38% 39% 14%
Source: Field Survey, 2020
From (Table 4.1), the ECC, importers and CCA organizations teams, contained most
active and proper working aged employees 44 (79%) from total with age range 25-50.
28
Majority 41(73%) of them are first degree holders and the remaining 11(20%) have
masters holder and only 4(7%) have diploma. Regarding respondents work experience,
21 (38%) have between 6-10 years of experience on customs and import work; 30(53%)
have more than 11 years of work experience. This implies that 51(95%) have more than
six years work experience in import trade sector implies equipped to understand the
international business and the way to manage trade facilitation and the activities to be
done through customs.
4.3 Reflection on the Indicators

In this section, the data collected form all selected respondent has entered and analyzed
through SPSS and the reflection of each indicators presented and interpreted. The
discussion used the frequency distribution value, mean value and standard deviation of
each indicator and the items defined to measures them. It highlights the level of most
important trade facilitation areas, the performance level of the organizations, as well as
interpreting issues raised by the different variables. The frequency distribution
importantly shows the respondents reflection to score on the measures of the variable, the
mean value demonstrate the extent of the variables practice and standard deviation value
consistency of respondents reflection from mean through its measure at the defined
import sector.
4.3.1 Information Availability

Information availability measures refer accessibility of adequate and traceable
information on the rate of duties, procedures, rules, required forms and documents,
transparency through accessible (one or more) enquiry points and policy making,
possibility to ask questions on customs related matters as well as legislation and
enforcement of customs related laws and regulations, and their entry into force.
Table 4.2 Frequency Distribution of Information Availability
S/n Items Measurement Freq. Percentage

Valid % Cum. %
1 There is adequate and traceable Strongly Disagree 10 17.9 17.9
information on the rate of duties, Disagree 24 42.9 60.7
procedures, rules, required forms Neutral 14 25.0 85.7
and documents Agree 8 14.3 100.0
29
Total 56 100.0
2 There are accessible (one or more) Strongly Disagree 6 10.7 10.7
enquiry points Disagree 22 39.3 50.0
Neutral 12 21.4 71.4
Agree 16 28.6 100.0
Total 56 100.0
3 There is possibility to ask Strongly Disagree 16 28.6 28.6
questions on Customs related Disagree 20 35.7 64.3
matters Neutral 10 17.9 82.1
Agree 8 14.3 96.4
Strongly Agree 2 3.6 100.0
Total 56 100.0
4 There is no interval between the Strongly Disagree 19 33.9 33.9
publications of new or amended Disagree 29 51.8 85.7
trade related laws and regulations, Neutral 8 14.3 100.0
and their entry into force Total 56 100.0
5 International agreements relating Strongly Disagree 8 14.3 14.3
to importation are available on the Disagree 23 41.1 55.4
official customs website Neutral 23 41.1 96.4
Agree 2 3.6 100.0
Total 56 100.0
6 Government policymaking is Strongly Disagree 18 32.1 32.1
transparent Disagree 30 53.6 85.7
Neutral 4 7.1 92.9
Agree 4 7.1 100.0
Total 56 100.0
Accessibility of adequate and traceable information on the rate of duties, procedures,
rules, required forms and documents is of the prominent item used to measure
information availability. The respondents took parts in the study evaluated the
accessibility through ECC and 86% have assured it to be inaccessible.
The efficiency in enhancing potential of enquiry points seems now well understood
around the world and our national practices too. Due to non-automated custom practice of
the commission the inquiry points are offices of ECC which found anywhere in the
country. Currently these points evaluated as they were not accessible in most part of the
country and confined at Addis Ababa and some emerging regional state investment
corridor. The disagreement on the accessibility of 71% of respondents assured this
condition.
30
The enquiry points offer the possibility to ask questions on customs-related issues, either
by telephone or personal visit. Most countries also offer the possibility to inquire for
supplementary information. The non-accessibility of these inquiry points has directly
relate with the possibility to ask questions and the response also show this exactly. More
than 82% of respondents disagreed on the possibility to ask the question whatever the end
to be.
The other information availability measurement questioned to the respondent was about
interval between the publications of new or amended trade related laws and regulations,
and their entry into force. All respondents (100%) are agreed on the gap on the
publication and entry into force, in some occasions waiting years to get into force are
normally practiced.
Around a half of the respondents looked unable to get international agreements relating to
import on the customs website; whereas, some local regulations, laws and procedures are
accessed on. Meanwhile the policy making was not transparent because it developed
through some expertise and approved by the decision of the government execution organ.
Table 4.3 Descriptive Statistics of Information Availability
Description N Min. Max. Mean Std.

Deviation
There is adequate and traceable information on the rate 56 1 4 2.36 0.743
of duties, procedures, rules, required forms and
documents
There are accessible (one or more) enquiry points 56 1 4 2.68 0.511
There is possibility to ask questions on customs matters 56 1 5 2.29 0.410
There is no interval between the publications of new or 56 1 3 1.80 0.672

amended trade related laws and regulations, and their
entry into force
International agreements relating to importation are 56 1 4 2.34 0.769
available on the official customs website
Government policymaking is transparent 56 1 4 1.89 0.824
Group Mean 2.33
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Above table 4.2 indicates, the groups mean value (2.33) is below average and possible to
generalize that the information availability of the national customs practice are not in
worthy circumstance and needs for much effort to improve for the customers and
institutional and national customs improvement. The standard deviation of all mentioned
measures criterions have low variation of the standard deviation which is <0.9 it directs
that respondents were unanimous on the result of the metrics designed to measure the
availability of information availability in ECC regarding to facilitating trade.
4.3.2 Trade Community Involvement

Measures aiming to ensure the involvement of the trade community refer mainly to the
consultations between traders and the government to inform in making change on
regulations, consultation in the scope, contents and outcomes of issuing or amendment
and consideration of feedback in the development.
Table 4.4 Frequency Distribution of Trade Community Involvement
S/n Items Measurement Freq Percentage

Valid % Cum.%
1 Adequate and timely information on Strongly Disagree 2 3.6 3.6
regulatory changes has provided Disagree 34 60.7 64.3
adequately Neutral 12 21.4 85.7
Agree 8 14.3 100.0
Total 56 100.0
2 There are regular consultations when Strongly Disagree 6 10.7 10.7
introducing or amending trade related Disagree 40 71.4 82.1
laws, regulations and administrative Neutral 10 17.9 100.0
rulings of gen. application Total 56 100.0
3 Public and stakeholders comments and Strongly Disagree 4 7.1 7.1
consultation are taken into account Disagree 32 57.1 64.3
Neutral 14 25.0 89.3
Agree 6 10.7 100.0
Total 56 100.0
As indicated in the above table, publicly available information was difficult to find as
regards regulatory changes. Only 14.3 % were agreed to get the information on update.
32
Nearly all respondents (100%) in the sample seem not to have any consultations between
traders and the administration in drafting or amendment of trade related laws, regulations
and rules. Which is due to the system experienced by the commission was through some
delegated expertise develop and government execution organ approve it.
Not surprisingly, in the absence of consultation there is no possibility to consider
comment of the public or stake holders. As ensured by 89% of the respondents the
government probably consider some comments by its internal reviewing of the issue,
after the policy publicized through public media or taken into force and stack holders
informed by any means of communication.
Table 4.5 Descriptive Statistics of Trade Community Involvement

Deviation
Adequate and timely information on regulatory 56 1 3 2.46 0.785
changes has provided adequately
There are regular consultations when introducing 56 1 3 2.07 0.535
or amending trade related laws, regulations and
administrative rulings of gen. application
Public and stakeholders comments and 56 1 4 2.39 0.779
consultation are taken into account
Group Mean 2,31
As per the above table the group mean of trade community involvement is below the
average (2.31) and this specifies the public does not involved custom related changes and
of the gaps to be fill by the designated institution. Congruently, all of the respondents
disagreed on the listed measures of trade community involvement. The low variation of
the standard deviation which is < 0.9 pledged the respondents were consistent on
indicators of effective involvement of trade community in customs related matters which
contribute for facilitating trade improved.
4.3.3 Appeal Procedure

The indicator on appeal procedures refers to a number of basic characteristics of the
appeal system in concerned institution, such as the presence of appeal mechanism,
33
transparency on the motives of decisions, fairness/independency from government
influence, timeliness of decision and effectiveness of the applicable rules and of
outcomes.
Table 4.6 Frequency Distribution of Appeal Procedure

Valid % Cum. %
1 There is appeal mechanism for Disagree 14 25.0 25.0
Customs matters or the related Neutral 30 53.6 78.6
laws and publicly available on Agree 12 21.4 100.0
the customs website Total 56 100.0
2 There is time limit for deciding Neutral 8 14.3 14.3
such appeals Agree 44 78.6 92.9
Total 56 100.0
3 Information about the motives of Disagree 2 3.6 3.6
the administration's decision is Neutral 2 3.6 7.1
provided Agree 42 75.0 82.1
Total 56 100.0
4 Legal framework in challenging Disagree 10 17.9 17.9
regulations is efficient Neutral 16 28.6 46.4
Agree 30 53.6 100.0
Total 56 100.0
5 Judiciary is independent from Strongly Disagree 2 3.6 3.6
government influence Disagree 20 35.7 39.3
Neutral 34 60.7 100.0
Total 56 100.0
34
Drawing on the information provided through questionnaire, it would seem that many of
the respondents surveyed reported for not easily accessibility of appeal related laws and
procedure on the customs website. Only 21 % are accessed it from the commission may
be in nonpublic/web-based ways through regulation and procedures. Except 14% those
not informed about the time limits for deciding appeals all the remaining (86%) of the
respondents have knowledge on the time limit and it clearly shown on the customs
regulation and procedures. The result also indicated, more than 92% of the respondents
believed that information about the motives of the administration's decision are provided
for the customers.
In the ECC practice administrative appeals are a prerequisite for the legal/judicial stage
and more than half (53%) of the sample confirmed that the legal framework
implementing to challenge the regulation or administrative customs decision is efficient.
As per the result obtained participants, about independency of judiciary from government
influence, more than half 60% of the respondents‟ neutral side and the rest on the
opposite its independency.
Table 4.7 Descriptive Statistics of Appeal Procedure

Deviation
There is appeal mechanism for Customs matters or the 56 2 4 2.96 0.687
related laws and publicly available on the customs website
There is time limit for deciding such appeals 56 3 5 3.93 0.462
Information about the motives of the administration's 56 2 5 4.07 0.599

decision is provided
Legal framework in challenging regulations is efficient 56 2 4 3.36 0.773
Judiciary is independent from government influence 56 1 3 2.57 0.568
There is high enforcement and speed in implementation of 56 1 4 2.32 0.897

court rulings in commercial matters
Group Mean 3.2
The result (table 4.7) showed, the customs appeal procedure is the major challenge in
some aspects of the measures in such a way that, effective implementation of custom
35
appeal system has been hindered through publicly unavailability of the procedure on
customs website, independency of judiciary from government influence and limitation
on enforcement and speed to implement court rulings.
All of the respondents agreed on the listed activities being done to assure appeal
procedure except the above three mentioned variables of publicity of appeal mechanisms,
independency from government influence and implementation of court ruling. The low
variation of the standard deviation which is <0.9 designates the respondents were
common on the defined measures performance of the commission about appeal
procedure.
4.3.4 Customs Fees and Charges

In ECC fees and charges levied on import is only scanning charge. It is insignificant
(0.07%) in amount and not aligned with the service rendered by the commission, whereas
the tax and duties levied on import items is considerate all benefits the government to get
through the commission.
Table 4.8 Frequency Distribution of Customs Fees and Charges

Valid % Cum. %
1 Information is available on Strongly Disagree
applicable fees and charges(other Disagree 26 46.4 46.4
than duties and charges) in paper Neutral 22 39.3 85.7
publication and custom websites Agree 8 14.3 100.0
Strongly Agree
Total 56 100.0
As respondents replied through questionnaire more than 85% are not informed about the
applicable fees and charges. It indicates information on applicable fees and charges is
very scarce and not accessible. The scarcity or poor visibility and accessibility of publicly
available data on fees and charges are of the significant gap that demands for
improvement. Even though, it‟s not our current concern of discussion various fees and
36
charges are levied on import item importantly by ESLSE (e.g. port handling charges,
storage charges, container demurrage charges) transporter and customs clearing agents
service fee, which are informed to importer with consistent rate.
Table 4.9 Descriptive Statistics of Customs Fees and Charges

Deviation
Information is available on applicable fees 56 2 4 2.68 0.716
and charges(other than duties and charges)
in paper publication and custom websites
The lower standard deviation (0.716 which is lower than 0.9) indicated in the above table
4.9 exhibited, the respondents replay about accessibility of applicable fees and charges
for the trade communities is consistent by the respondents.
4.3.5 Automation Formalities

This indicator covers a series of very important dimensions of trade facilitation, including
automated procedures, electronic interchange of documents and the application of risk
management procedures. From four items designed to measure the performance of the
variable risk management procedure has operationalized with poorest national IT system
whereas EDI/electronic data interchange and fully automated customs process are yet not
implemented. In this regard there is a progress to partially automate (since no let out the
document presentation) electronic customs clearance system with only integration and
system privileges of customs clearing agents and ECC.
Table 4.10 Frequency Distribution of Automation Formalities
Valid % Cum. %
1 Risk Management is fully and Strongly Disagree
efficiently operational at Disagree 5 8.9 8.9
Custom Neutral 18 32.1 41.0
Agree 31 55.4 96.4
37
Total 56 100.0
2 EDI/electronic Data Strongly Disagree 14 25.0 25.0
Interchange/ is functional at Disagree 20 35.7 60.7
customs Neutral 18 32.1 92.9
Agree 4 7.1 100.0
Total 56 100.0
3 There is full- Strongly Disagree 5 8.9 8.9
time/uninterrupted/ automated Disagree 17 30.4 39.3
processing at Customs Neutral 18 32.1 71.4
Agree 16 28.6 100.0
Total 56 100.0
4 The quality of Strongly Disagree 15 26.8 26.8
telecommunications and IT in Disagree 31 55.4 82.1
the custom is efficient Neutral 10 17.9 100.0
Total 56 100.0
As indicated in the above table the result of the data that gather from the respondents;
59% of the respondents believed that risk management is fully and efficiently operational
at custom whereas 9% of the respondents against on the majority of the respondents and
the rest 32% didn‟t know its level and efficiency of the measure.
On the side of functioning of EDI/Electronic Data Interchange/, 61% of the respondents
said EDI/electronic Data Interchange/ is not functioning at customs. From the rest 32%
have no adequate understanding on the measure and its applicability.
Regarding about the full-time/uninterrupted/ automated processing at customs 39%
disagree, 32% being neutral and 29% those informed about the system in the custom
clearance ECMS agree its application. Only 18% of the respondents do not believe on
the quality of telecommunications and IT in the custom is efficient, the remaining all
disagree on the efficiency.
38
Table 4.11 Descriptive Statistics of Automation Formalities

Deviation
Risk Management is fully and efficiently 56 2 5 3.54 0.713
operational at Custom
EDI/Electronic Data Interchange/ is functional at 56 1 4 2.21 0.909
customs
There is full-time/uninterrupted/ automated 56 1 4 2.80 0.961
processing at Customs
The quality of telecommunications and IT in the 56 1 3 1.91 0.668
custom is efficient
Group Mean 2,62
As per the above table 4.10 marks, the Automation Formalities are impractical except
some development realized on operation of risk management. The low variation of the
standard deviation (which is < 0.9) on implementation of risk management and efficiency
of IT in customs declares respondents were dependable on the evaluating formalities of
automation. However, the high variation of the standard deviation which is > 0.9
indicates the respondents were inconsistent on functionality of Electronic data
interchange, and fulltime automated processing of customs. This shows most of these is
irregularity among respondents in evaluating implementation of automation formalities.
4.3.6 Procedure Formalities

This indicator comprises for vital measurements of trade facilitation including single
window service, pre-arrival clearance, physical inspections procedure, post-clearance
audits, separation of release from clearance and the concept of authorized traders, all of
them central aspects in the operation of Customs agencies.
39
Table 4.12 Frequency Distribution of Procedure Formalities
S/n Items Measurement Freq Percentage

. Valid % Cum. %
1 There is single window service at Strongly Disagree 24 42.9 42.9
custom points Disagree 29 51.7 94.6
Neutral 3 5.4 100
Total 56 100.0
2 Pre-arrival clearance processing is Strongly Disagree 14 25.0 25.0
implemented Disagree 42 75.0 100.0
Total 56 100.0
3 Physical inspections procedure Strongly Disagree 4 7.1 7.1
being functional is effective Disagree 33 58.9 66.1
Neutral 17 30.4 96.4
Agree 2 3.6 100.0
Total 56 100.0
4 The customs clearance process in Strongly Disagree 2 3.6 3.6
the delivery of imports is efficient Disagree 42 75.0 78.6
(minimum time, good service) Neutral 12 21.4 100.0
Total 56 100.0
5 Post-clearance Audits (PCAs) is Neutral 8 14.3 14.3
implemented Agree 46 82.1 96.4
Total 56 100.0
6 Release of goods and payment of Strongly Disagree 26 46.4 46.4
Customs duties are separated Disagree 28 50.0 96.4
Neutral 2 3.6 100.0
Total 56 100.0
7 Authorized Economic Operators Neutral 6 10.7 10.7
(AEO) program is realized Agree 42 75.0 85.7
Total 56 100.0
8 Procedures are being simplified Neutral 20 35.7 35.7
and improved in previous years (in Agree 36 64.3 100.0
time and cost) Total 56 100.0
9 Customs personnel adjust their Strongly Disagree 4 7.1 7.1
working hours to commercial Disagree 38 67.9 75.0
needs Neutral 12 21.4 96.4
40
Agree 2 3.6 100.0
Total 56 100.0
Single window services are a very important trade facilitation measure, the characteristics
and implementation of which can vary considerably among countries. In hope to make
customs procedure easily predictable and reachable the Government has launched to start
an electronic platform in beginning of this year 2020. But it hasn‟t been practical as of
the date of collecting the data from representatives of importer, customs clearing Agent
and ECC. The response from the respondents of the questionnaire also assure that nearly
95% are disagree for the presence of the service and the remaining 5% respond for
neutral by absence of updated information on the substance.
Pre arrival clearance has induced in the Ethiopian customs regulation to be implementing
through ECC, whereas it wasn‟t practical and fully implemented. All respondents (100%)
also have agreed that the process is impractical in our country‟s context. The rate of
physical inspections is directly related with automation procedure through effective risk
management and use of electronic data management system of the institution/country. In
this concern risk management is practical at average level but the electronic customs
process is impractical and correspondingly the physical inspection procedure is not
effective. From the total respondents 96% are assured its ineffectiveness.
More than 78% of the targeted constituency disagree efficiency of customs clearance
process in the delivery of import through perspectives of time and services. Only 21% are
noted the services efficiency as an average. 86% of the respondents agreed on
implementation of post clearance audit (PCA); the remaining 14% has replied as neutral
due to their reservation on the consistency and accessibility of the program as it designed
in the procedure and regulation.
Although authorized traders(AEO) are a limited percentage of total traders; the
commission has incorporate in the regulation, established procedure to execute the
program and it‟s practical except its inadequacy on the service support delivered to the
operators do to many reasons on the ECC and collaborate agencies. Except 6% of the
respondents other all 90% have assured the implementation too.
41
Among all measures of procedure formalities of ECC none of respondents disagree on
procedures are being simplified and improved in previous year, in such a way that 64%
agreed and 36% are neutral. Finally the response from the respondents on flexibility of
customs personnel to adjust their working hours to commercial needs is that 75%
disagree on their adjustment and 21% neutral on the flexibility.
Table 4.13 Descriptive Statistics of Procedure Formalities

Deviation
There is Single Window service at custom points 56 1 4 1.84 0.949
Pre-arrival clearance processing is implemented 56 1 3 1.93 0.657
Physical inspections procedure being functional is 56 1 4 2.30 0.658
effective
The customs clearance process in the delivery of 56 1 3 2.18 0.471
imports is efficient (minimum time, good service)
Post-clearance Audits (PCAs) is implemented 56 3 5 3.89 0.412
Release of goods and payment of Customs duties are 56 1 3 1.57 0.568
separated
Authorized Economic Operators (AEO) program is 56 3 5 4.04 0.503
realized
Procedures are being simplified and improved in 56 3 4 3.64 0.483
previous years (in time and cost)
Customs personnel adjust their working hours to 56 1 4 2.21 0.624
commercial needs
Group Mean 2.62
Analogous to the most indicated TF variables; ECC performance on procedure
formalities is also below average. The only good practices has made on implementation
of Post-clearance Audits (PCAs), realization of Authorized Economic Operators (AEO)
program and efforts made to simplify the procedures in previous years.
Except the high variation of standard deviation which is > 0.9 for the criteria of single
window service implementation all the other mentioned criterions have low variation of
42
the standard deviation which is <0.9 it indicates that respondents were acknowledged on
the criteria in performing formalities of procedures.
4.3.7 Document Formalities

Measures relating to document requirements refer both to the extent of harmonization of
trade documents, through reliance to international standards and the simplification of
documentary requirements, by accepting to use copy documents and reduce number of
document demand in clearance of goods.
Table 4.14 Frequency Distribution of Document Formalities
Valid % Cum. %
1 Copy documents Strongly Disagree 12 21.4 21.4
are accepted in Disagree 38 67.9 89.3
customs clearance Neutral 4 7.1 96.4
Agree 2 3.6 100.0
Total 56 100.0
2 Number of Strongly Disagree 6 10.7 10.7
documents Disagree 30 53.6 64.3
required for import Neutral 18 32.1 96.4
process are small Agree 2 3.6 100.0
in number Total 56 100.0
As indicated on table 4.13, the commission may only accept copy commercial documents
if and only if authenticated by banks or some government agencies. 96% of the
respondents also assured non acceptance of the copy document for customs clearance.
Concerning the number of documents necessary for importing process 96% of the
respondents agreed on the numbers of the documents are not small. This may relate with
implementation of Electronic Data Interchange (EDI) and Single Windows systems. Even
if this measure of the variable is open for subjectivity of the respondents currently
number of documents required in import process of Ethiopia are more than 10/ten/ in
43
numbers /vary by type of product item and origin to be imported/. For illustration most
OECD countries require 5/five/ documents and average of east African countries requires
9 /nine/.
Table 4.15 Descriptive Statistics of Document Formalities

Deviation
Copy documents are accepted in customs 56 1 4 1.93 0.657
clearance
Number of documents required for import process 56 1 4 2.29 0.706
are small in number
Group Mean 2,11
As per the above table the individual and group mean of document formalities of customs
practice are below the average (2.11) and this demonstrates the government through ECC
demands to make lots of effort to make improvement on the issue.
4.3.8 Cooperation of ECC with Agencies

The internal border agency cooperation is another important factor for reducing import
lead time. A little more than half (57%) of the sample respondents provide evidence for
inefficiency of agency co-operation those relate in goods import. 46% also disagree and
36% also have doubt the agencies to have regular meeting and seminars to enhance their
cooperation and integration.
Table 4.16 Frequency Distribution of Cooperation of ECC with Agencies
Valid % Cum. %
1 Customs cooperate efficiently Strongly Disagree 4 7.1 7.1
with agencies relating with Disagree 24 42.9 50.0
goods import Neutral 22 39.3 89.3
Agree 6 10.7 100.0
Strongly Agree
44
Total 56 100.0
2 Customs undertake regular Strongly Disagree
meetings and seminars with Disagree 26 46.4 46.4
Agencies Neutral 20 35.7 82.1
Agree 8 14.3 96.4
Total 56 100.0
Table 4.17 Descriptive Statistics of Cooperation of ECC with Agencies

Deviation
Customs cooperate efficiently with agencies 56 1 4 2.54 0.785
relating with goods import
Customs undertake regular meetings and 56 2 5 2.75 0.837
seminars with Agencies
Group Mean 2,64
4.3.9 Governance and Impartiality of ECC

Governance and impartiality measures refers to an assortment of good governance
characteristics, including clearly established and transparent structures and functions, the
existence of a Code of Conduct and an ethics policy, internal monitoring as well as
control mechanisms to assure transparency and consistency of the administration.
Table 4.18 Frequency Distribution of Governance and Impartiality of ECC
Valid % Cum. %
1 Structures and functions of the Strongly Disagree 12 21.4 21.4
Customs administration are evidently Disagree 38 67.9 89.3
described to the public Neutral 4 7.1 96.4
Agree 2 3.6 100.0
45
Strongly Agree
Total 56 100.0
2 The information on misconduct and Strongly Disagree 2 3.6 3.6
measures (penalties) taken for Disagree 36 64.3 67.9
noncompliance available to the public Neutral 12 21.4 89.3
Agree 4 7.1 96.4
Total 56 100.0
3 Annual Customs reports published Disagree 28 50.0 50.0
consistently. (sufficient information Neutral 27 48.2 98.2
on budget and duties collected Agree 1 1.8 100.0
complaints or efficiency indicators) Total 56 100.0
The customs commission has its website but doesn‟t clearly describe the structures and
functions of the customs administration and no other means of publication also
established for the public in this regard. 89% of the respondents have guaranteed this by
disagreement and 7% not being informed on the publication.
The information on the implementation and transparency of sanctions against misconduct
remains scarce in such a way that more than 89% of the respondents didn‟t believe that
the information on misconduct and measures (penalties) taken for noncompliance are not
available to the public. Half (50%) of the respondents didn‟t agree on regular publish of
and 48% from the remaining also no idea and informed about it.
Table 4.19 Descriptive Statistics of Governance and Impartiality of ECC

Deviation
Structures and functions of the Customs administration 56 1 4 1.93 0.657
are evidently described to the public
The information on misconduct and measures (penalties) 56 1 5 2.43 0.828
taken for noncompliance available to the public
Annual Customs reports published consistently 56 2 4 2.52 0.539
46
Group Mean 2,29
The findings in table 4.19 outlined the mean of all the three variables defined to measure
the indicator are below average which are 1.93, 2.43 and 2.52 consecutively. As indicated
through the values of standard deviation, the variation is below 0.9 which point out the
respondents were consistent on the disagreement implementation of each measure of the
trade facilitation measures defined by the research.
47
CHAPTER-FIVE
SUMMARY, CONCLUSIONANDRECOMMENDATIONS
5.1 Introduction
This chapter presents the summary of the results and the findings based on the analysis
conducted throughout the entire study. Suggestions are also presented in order to guide
future researchers examining the implementation of trade facility measures in Ethiopia
through ECC. Subsequently the chapter ends with conclusions and some relevant
recommendations for both the management as well as for future researchers.
5.2 Summary of the Major Findings

Based on the data analysis and interpretation made in the preceding chapter the most
important findings are summarized as follows.
Findings related to assess the performance of ECC in facilitating import trade:
 The response of survey participant on the indicators designed to measure

information availability of customs related matter are below average, which insured
through group mean of 2.33 and more than 70% being not agreed on the
availability.
 Likewise; more than 82% agree on noninvolvement of the trade community at aech
measures of the variable and customs related changes is not satisfactory valued with
mean value of 2.31 by the respondent.
 Among measures indicate ECC performance on trade facilitation, efficiency on
appeal procedure is on better level with having average mean of 3.2 and more than
half of respondent agreed on efficiency measure, except on publicity of appeal
mechanisms (25% disagree and 53% neutral) and independency judiciary from
government influence (39% disagree and 60% neutral).
 Implementation of ECC on the indicator of Customs Fees and Charges is assessed to
be mean value of 2.68. which is through customs administrations have provide
services only at the normal working hours meanwhile information on applicable
custom fees and charges was very scarce and not accessible.
48
 Automation Formalities are impractical and rated with group mean of 2.62.
Meanwhile among designed four measures 59% agreed operation and efficiency of
risk management at the institution and significantly disagreed on other measures.
 Like that of indicated most TFI, the ECC performance on procedure formalities is
unimportant by score of group mean value of 2.62. The only good practices has
performed on implementation of Post Clearance Audits (recognized by 86%),
realization of Authorized Economic Operators (recognized by 89%), program and
efforts made to simplify the procedures in previous years(recognized by 65%).
 One important aspect to harmonize trade documents, through reliance to
international standards and the simplification of documentary requirements was
realization of document clearance using copies and the reduction of the number and
complexity. In this regard all the formalities are impractical, as evidenced by
average mean of 2.11 and more than 64% are disagreed on each measures.
 Even if cooperation between agencies take part in release of goods was an important
factor for reducing import lead time, the researcher explored that the relation to
cooperation was inefficient (group mean of 2.64).
 The research result on Governance and Impartiality of customs showed that all
measures of the variable were ineffective with an average mean of 2.29 from
expected and practiced in such a way to deprive the trade facilitation.
 Except high variation of standard deviation, 0.909, 0.961, and 0.949 (which are >
0.9) observed on functioning of Electronic Data Interchange, presence of
uninterrupted automated process and implementation of single window service
system; the respondents reflection on all the other 33 measures developed to
measure performance of trade facilitation are aligned and not significantly vary
from the mean value of each consecutive variable.
Findings related to assess TFIs predominantly contribute for existing practice of

import trade facilitation through ECC:
 The only good practices has performed contributed in better for existing practice of
TF in relation with procedure formalities are PCA with implementation of 86%,
AEO with realization of 89% and with progress on simplification 65%;
49
 59% agreed operation and efficiency of risk management at the institution and
significantly disagreed on other measures;
 Appeal procedure is of the variables having better performance at ECC by the
implementation of measures of time limited for deciding appeals (mean:3.93);
providing information about the motives of decision (mean:4.07) and presence of
efficient legal framework in challenging regulations (mean:3.36).
Findings related to assess reasons behind lower performance in the international TF

metrics:
 More than 70% being not agreed on information availability of customs related
matter;
 82% of respondents also agree on noninvolvement of the trade community in
customs related changes;
 Provide services only at the normal working hours;
 Automation Formalities are impractical;
 Procedure formalities is unimportant valued with the mean of 2.62;
 Using copy documents is unbearable and the number of documents to be present for
import clearance is large in number which made the clearance system complex. 64%
of the respondents assured it in their response;
 Cooperation of ECC with other agencies involved in import of goods was inefficient
with a group mean of 2.64;
 Governance and Impartiality of customs is ineffective valued with mean of 2.29.
5.3 Conclusions
Based on the major findings explained in the above, the following conclusions were
drawn.
 The customs lacks for transparency through involving the trade communities on
development and change made on the custom related, matters in their scope and
content.
 Information on most custom procedures was not easily accessible on customs
websites. The public found these information from custom regulation, procedures
and this contributed for inefficiency of most (information availability, trade
50
community involvement, information on appeal procedure of the customs) trade
facilitation variable through customs.
 The rate of physical inspections, flexibility on document formalities and traceability
of information on different aspects of customs are directly related with automation
procedure through effective risk management and use of electronic data
management system of the institution/country. In this concern risk management is
practical at average level but the electronic customs process is impractical and
correspondingly the physical inspection procedure is not effective.
 Measures relating with use copies and reduction the number to ease complexity on
documentation requirement were impractical and this was related with
implementation of Electronic Data Interchange (EDI) and Single Windows systems.
 The research result on Governance and Impartiality of customs showed that all
measures of the variable were ineffective and practiced in such a way to deprive the
trade facilitation.
 Among all indicated variables designed to measure trade facilitation level of the
country through ECC, appeal procedures has implemented in better of the remaining
variables and contribute for the existing trade facilitation level. In addition, from the
total 36 measures developed to evaluate the performance of trade facilitation
through nine defined indicators; Risk Management, Post-clearance Audits,
Authorized Economic Operators, time limit for deciding appeals, availing
information on the motives of the administration's decision and efficiency of Legal
framework in challenging regulations are implemented in better of others and
positively contribute for the existing performance.
5.4 Recommendation
As the result of the analysis in this study proved the performances of ECC in facilitating
import trade are at deprived level. Among the indicators assessed in the study the
progresses has shown at appeal procedure and on critically looking for the remaining
indicators of the specific measures risk management, post clearance audit, authorize
economic programs implemented in better of other measures. The indicated reasons
demonstrates the institution‟s poor system on accessing information in all customs related
matters, lack of transparency to involve public and stalk holders at their level of content
51
and less concerns made to automate the formalities. Thus, on the basis of this look and
detail of findings of the study, the following recommendations are made in order to
enhance trade facilitation through ECC:
 To overcome the problem of transparency to involve public and stake holders at

their level of content the customs commission should established a system which
enable to consult on changes made or to be made public media and or efficiently
designed website.
 Even if information is basis for all tasks to be made in relation with trade
facilitation the institution not efficiently develop and utilize to alleviate such
issues. So, in order the commission to make the information on customs issues to
be accessible it should furnish its website and feed any updated changes made and
planned to be made in this regard.
 Because the automation procedure through effective risk management and use of
electronic data management system is critical to implement most indicators of
trade facilitation, the commission should design the program to implement
automation system as prompt as possible.
 Although implementation of Electronic Data Interchange (EDI) and Single
Windows Systems completely and mandatory to implement the system, the
commission can ease complexity through allowing to use copies and reduction the
number of documentation with a little effort and discussion stallholders.
 As Ethiopia has already been made an effort in stepping up trade facilitation and
additionally on the way to accede WTO membership; the government at large and
ECC specifically should revitalize the existing system and transform it in best
experience of OECD or any succeeding country‟s practice.
Recommendation for Future Research

Future research can be carried out to determine the cost impact of each trade facilitation
indicators in import trade, and explore the integration of agencies taking part in Custom
process.
52
Reference
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54
Appendix – Questionnaire
Dear Respondent;
This survey is designed to obtain data for the study entitled “Assessing the Performance
of Ethiopian Customs Commission in Reference to Import Trade Facilitation: Perspective
of Wheat and Palm Oil Importer” for the partial fulfillment of Master‟s Degree in
Logistics and Supply Chain Management. The data will be stored in personal files to
which the researcher will only have an access. Therefore your genuine and timely
response is appreciated and has significant value for achievement of the study objective.
Note for Respondent:

 You can use any local language to explain your idea.
 Pleas tick “√” mark in the boxes which represents your answer
For further information and comments you can contact through email:
tekebagirma@gmail.com.
Thank you in advance. !
Part One: For each of the following questions choose the correct answer. Please rate
the related items enlisted under each variables and put “√” mark on the box you
choose.
Strong
Strongly Dis- Neu- Ag-
SN QUESTION ITEM Disagree agree tral ree
ly
agree
1 Item Related to "Information Availability"
There is adequate and traceable information on the rate of
1.1
duties, procedures, rules, required forms and documents
1.2 There are accessible (one or more) enquiry points
There is possibility to ask questions on Customs related
1.3
matters
There is no interval between the publications of new or
1.4 amended trade related laws and regulations, and their entry
into force
International agreements relating to importation are available
1.5
on the official customs website
1.6 Government policymaking is transparent
2 Item Related to "trade community involvement"
Adequate and timely information on regulatory changes has
2.1
provided adequately
There are regular consultations when introducing or
2.2 amending trade related laws, regulations and administrative
rulings of gen. application
55
Strong
ly
agree
Public and stakeholders comments and consultation are taken
2.3
into account.
3 Item Related to "appeal procedure"
There is appeal mechanism for Customs matters or the
3.1
related laws and publicly available on the customs website
3.2 There is time limit for deciding such appeals
Information about the motives of the administration's
3.3
decision is provided
3.4 Legal framework in challenging regulations is efficient
3.5 Judiciary is independent from government influence
There is high enforcement and speed in implementation of
3.6
court rulings in commercial matters
4 Item Related to "customs fees and charges"
Information is available on applicable fees and charges in
4.1
paper publication and custom websites
5 Item Related to "automation formalities"
Risk Management is fully and efficiently operational at
5.1
Custom
5.2 EDI/electronic Data Interchange/ is functional at customs
There is full-time/uninterrupted/ automated processing at
5.3
Customs
The quality of telecommunications and IT in the custom is
5.4
efficient
6 Item Related to "procedure formalities"
6.1 There is Single Window service at custom points
6.2 Pre-arrival clearance processing is implemented
6.3 Physical inspections procedure being functional is effective
The customs clearance process in the delivery of imports is
6.4
efficient (minimum time, good service)
6.5 Post-clearance Audits (PCAs) is implemented
Release of goods and payment of Customs duties are
6.6
separated
6.7 Authorized Economic Operators (AEO) program is realized
Procedures are being simplified and improved in previous
6.8
years (in time and cost)
Customs personnel adjust their working hours to commercial
6.9
needs
7 Item Related to "document formalities"
56
Strong
ly
agree
7.1 Copy documents are accepted in customs clearance
Number of documents required for import process are small
7.2
in number
8 Item Related to "cooperation of ECC with agencies"
Customs cooperate efficiently with agencies relating with
8.1
goods import
Customs undertake regular meetings and seminars with
8.2
Agencies
Item Related to "Governance and Impartiality of
9
ECC"
Structures and functions of the Customs administration are
9.1
evidently described to the public
The information on misconduct and measures (penalties)
9.2
taken for noncompliance available to the public
Annual Customs reports published consistently (with

9.3 sufficient information on Customs activities). (Sufficient
information means there are sufficient information on budget and
duties collected complaints or efficiency indicators)
Part Two: For each of the following questions describe your opinion.
1. What are the main problems associated with trade facilitation in the processing of import trade?
Please identify the main gaps of ECC in import trade
processing.___________________________________________________________________
____________________________________________________________________________
______________________________
2. If there is anything you would like to add regarding the ECC strength, weakness and challenges
in its role to facilitate import trade in terms of time, quality and
cost:_________________________________________________________________________
____________________________________________________________________________
__________________________________________________
Thank you for your cooperation!
57

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Assessing the performance of Ethiopian Customs Commission in

Reference to Import Trade Facilitation: Perspective of Wheat and

By: Tekeba Girma

A Research Paper Submitted to the Addis Ababa University, School

Advisor: Busha Temesgen (PhD.)

Addis Ababa University School of Commerce

Name: Tekeba Girma Signature: _______________Date: _______________

Signed by the Examining Committee:

Examiner: Shiferaw Mitiku (PhD.) Signature: __________________ Date: ________

Examiner: Reta Megersa (PhD.) Signature: __________________ Date: ________

Advisor: Busha Temesgen (PhD.) Signature: __________________ Date: ________

Chair of Department or Graduate Program Coordinator

APEC Asia-Pacific Economic Cooperation

CCA Customs Clearing Agent

CEFACT Center for Trade Facilitation and Electronic Business

ECA United Nations Economic Commission for Africa

ECC Ethiopia Customs Commission

ECMS Ethiopian Customs Management System

ESLSE Ethiopian Shipping and Logistics Service Enterprise

ETI Enabling Trading Index

GAAT General Agreement on Tariffs and Trade

ITC International Trade Commission

LPI Logistics Performance Index

OECD Organization for Economic Co-operation and Development

SPSS Statistical Software for Social Science

TFA Trade Facilitation Agreement

TFI Trade Facilitation Indicators

WCO World Customs Organization

UNCTAD United Nations Conference for Trade and Development

WCO World Customs Organization

WEF World Economic Forum

WTO World Trade Organization

Table 3.1 Target Population ………………………………………………………………....24

Figure 2.1: Conceptual framework adapted from OECD study…………………..…………21

1.1 Background of the Study

1.2 Ethiopian Customs Commission

1.3 Problem Statement

As explicitly defined on Ethiopian Customs Regulation No. 437/2018, the Commission is

1.4 Research Questions

 What is the performance of ECC in facilitating import trade?

1.5.2 Specific Objectives

 To assess the performance of ECC in facilitating import trade.

1.6 Significance of the Study

 Provided insight and information for administrators, practitioners, and researchers

1.8 Limitation of the Study

1.9 Definition of Terms

Ethiopian Customs Commission (ECC):- is government institution responsible for

1.10 Organization of the study

REVIEW OF RELATED LITERATURE

2.1 Theoretical Literature

2.1.1 Trade Facilitation

2.1.2 Measures/Indicators of Trade Facilitation

As explicitly presented on the ITC Business Guide for Developing Countries

Article 1: Publication and availability of information

a. Information availability [Art.1+2+11]

2.1.2.1 Variables in Measuring of Trade Facilitation

In measuring every performance and status of trade facilitation in every country,

 Customs (regional customs guarantee schemes, harmonized customs documents,

2.1.3.2 Other Government Institutions

2.2 Customs in Ethiopia

Name: Tekeba Girma Signature: _Date: _

Examiner: Shiferaw Mitiku (PhD.) Signature: __________ Date:

Examiner: Reta Megersa (PhD.) Signature: __________ Date:

Advisor: Busha Temesgen (PhD.) Signature: __________ Date: