It will be appreciated that, aside from the direct and indirect criteria relevant to Customs
Authorities in the various Articles of the AfCFTA, and its Annexes, that other areas,
Internationally, externally, Nationally, and Regionally etc., would also need to be considered
when identifying the full scope of challenges for Customs Authorities.
When approaching the objective of change management and implementation, the research
determined that alternate criteria to pure Customs Technical competence in Origin
Administration, is also of relevance.
The following list highlights the most important alternate factors and conditions, which could
or may be experienced by a Customs organisation, which can negatively or positively
influence the change process which must ultimately be successful and sustainable: (List of
obtained WCO INCU Journal.)
o political will and support as a long-term commitment.
o funding for the change program over and above normal operational costs.
o political and organisational stability: i.e., the DG or such, should be contracted for the
duration of the change process in the interests of continuity.
o skills in strategic planning and management that reflect the aims, conditions, and
Leadership requirements of the change process.
o an appropriate ‘business’ culture with the applicable legislation, procedures, and
administrative routines in place.
o good order and the capability to achieve a high level of compliance.
o an effective change management strategy that is communicated to key Stakeholders.
o a human resource management strategy as a part of the wider strategy of change.
o an appropriate organisational structure to communicate business objectives at
operational levels.
o effective routines for change process, if necessary.
o effective planning and performance measurement for the change process in all sectors
that reflect a quality approach.
o analysis of Technical innovation: the automation and migration of ‘old’ systems and
procedures as well as the development of new ones, if necessary.
o a transparent management information system in order to collect and spread the
information relating to the change process.
o identification of strategic partnerships (particularly with Stakeholders) and
preparedness to reach agreements that adopt a customer-based approach.
o voluntary, informed compliance with Traders and other Stakeholders.
o transparency and integrity as foundations for the change process.
o effective dispute resolution mechanisms.
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Those, such as Leaders in Customs Administrations, who are most directly involved in the
design and implementation of change management strategies, must be aware of these
impacting conditions and they will be required to take account of their respective inherent
limitations and opportunities. Capacity Building in Customs Leaders, specifically to implement
change, for example, could be impacted by these criteria. The AUC Module produced for
Leaders based on this Survey, will be a useful tool to assist in the implementation of AfCFTA.
The choice of change management theory in application towards AfCFTA implementation
should reflect awareness of a Customs Administration’s complexity.
Broadly speaking, the 8 points in the Diagram below are considered adequate for a high-level
guidance approach in considering these objectives when implementing the AfCFTA.
4.1 APPENDIX – Checklist of Obstacles to success in Business and Projects
No Item
1. Always choose the right People
2. Frugality – budgets and deliverables synchronisation
3. The total cost of ownership – A to Z
4. Be willing to abandon WHAT DOES NOT WORK…
5. Replace OLD Strategies with NEW
6. Identify the “PANAMA CANAL48” in your business or objective
7. Sales and Engagement – stay close!!!
8. Stick to the knitting – Prioritise and constant wide examination of Project
Landscape and Risks !!!
This study focus therefore contributes towards equipping Customs Administrations to engage
with the AUC development partners, the Secretariat, and the Private Sector at country and
Regional level, for the effective implementation of the AfCFTA. Additional guidelines will be
found in the AUC Module.
The survey therefore also extended to these additional areas of focus mentioned, however,
with exception of sensitive and confidential information. The results of the survey questions
which are Customs-related are however addressed below. As mentioned, the rationale of the
questions was a design to test cross functional outcomes and authenticity of responses. The
final questions as consolidated and reflected hereunder, are provided, after careful analysis
presented with comments, additional information, and recommendations, which lead to the
final report conclusion statements.
48 The “Panama Canal” business terminology, is generally referred to substantial obstacles, which should be eliminated and
addressed very early in the Project Plan.
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The responses, according to the Survey, assisted to draw conclusions which reflect six
principal areas, identified as inhibitors to implementation, which are directly under the
control of the Customs Administration:
1. Lack of Implementation and Change Management Planning.
2. Capacity Building.
3. Lack of Key Stakeholder and Trader Engagement.
4. Leadership Capacity.49
5. Dependency on inconclusive negotiations and frameworks.
6. AfCFTA General Obligations.
Obviously, each State Party’s Customs Authority, as evidenced, do have diverse and alternate
challenges, which are also addressed above in the report. However, for the main collective,
these are the concerning areas of focus50.
It must be appreciated that, aside from the vast array of incomplete aspects (ongoing
negotiations, meetings and other)51, relevant to the agreement components itself, there are
additional areas of concern52 which are not directly under the control of the Customs
Authority at National level which could or continue to negatively impact implementation.
NB!! Keep in mind that the survey was conducted prior to the implementation date of the
1st of January 2021 and several of the outcomes may thus have changed in the interim.
49 These concern areas could be listed in alternate priority order, subject to country specific examination and circumstances.
In all however, Leadership capacity is key. The WCO PICARD Standards clearly reflect the requirement of Customs
strategic Leaders to be cognizant of Micro and Marco economic policy and government compliances in meeting
International agreements.
50 Additional obvious considerations are to strengthen the PCA audit and Risk Management functions and the promotion
of integrity in Customs.
51 As communicated by South African Revenue Services (SARS), according to AfCFTA Secretariat revised work Programme
the following events are still in process. The fourth meeting of the Sub-Committee Trade Facilitation, Customs and Transit
will be held in March 2021. Purpose, to finalise Customs documentations and re-confirm readiness for trading. The first
meeting of the Sub-Committee on Rules of Origin will be held from 29 March to 2 April 2021. Purpose, to continue
negotiations on outstanding issues on Rules of Origin. The third meeting of the Directors-General/Heads of Customs
Authorities will be held from 31 May to 01 June 2021 to consider all documents for trading. The fifth meeting of the
Council of Ministers will be held from 07 – 08 June 2021 to approve final documents for submission to Extraordinary
Summit. The date for the Extraordinary Summit is not known yet for implementation. After implementation, each
country should amend their Customs and Excise Acts to domesticate the Tariff offers, trading documents and so forth.
52 Modalities are not reflected anywhere in the AfCFTA. This is also a landscape that requires compliant focus to submit
Tariff Concessions to implement the AfCFTA. By way of example - Based on the consultations, by Nigeria, on 21st
September 2017, on the margins of UNGA-72, in New York, a compromise accommodation was proposed to be accorded
to the Group of Seven (G-7) countries to provide for their vulnerabilities and special needs with respect to Tariff
liberalization in the CFTA, over a defined Transitional period. To account for the special needs of these countries, and
without prejudice to the agreed 90% level of ambition, these special needs countries are to begin the process of
Liberalisation, exceptionally, from a starting level of ambition of 85 percent. This means that instead of liberalising 90
percent in 10 years they will instead liberalise only 85 percent of Imports over the 10-year timeframe. These
Liberalisation commitments are to be subject to the same process of Tariff phase-down as is agreed to be applied to the
Liberalisation commitments of all non-special needs countries, i.e., Linear Approach. Thus, Traders will need to have
assistance in interpretation of Trade Offers and exclusions and phasing in dynamics, in order to identify and secure Trade
opportunities.
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5. The Key Questions, Responses, Findings and Recommendations
5.1 (a) Lack of implementation Planning
Q 12.G4 Does your Administration have an internal Leadership
plan of action and management checklist, leading up to full
implementation on 01/01/2021, for example: updating of the
legislative provisions, publication of rules and procedures,
printing and i
64
70
60
50
40 29
30
20 7
10
0
CONCLUDED PARTLY CONCLUDED NOT CONCLUDED
As the Customs Authority is central to successful AfCFTA implementation, Customs Leaders
must be fully prepared. A Leadership plan of action is needed to successfully implement any
agreement of this nature.
This should include a Management Priority Implementation Checklist, derived after careful
scrutiny of the AFCFTA Agreement, to ensure that all objectives are addressed and achieved.
All State Parties, under the AfCFTA, are Party to one or more Regional Economic Community,
which apply Free Trade arrangements. The observation is that all State Parties have
implemented such agreements before.
The plan of action required therefore indicates the requirement of a measurable status of
implementation by Leaders and any other interested Party. The absence of such a plan of
action on the part of the State Party would imply, either the lack of awareness of the
importance of the FTA, or it being of a lesser priority, e.g., it could be that some countries
have little to Trade, yet still have to make Concessions.
Finding
Of concern is that 64% of respondents have indicated that they had not completed their plan
of action and Priority Implementation Checklist. 29% of respondents indicated that they have
not started this process. Most respondents have therefore not determined their measurable
deliverables or set out an action plan in the implementation process. This critical requirement
for successful implementation is supported by the GFA Study AUC/CFTA/STUDY 4.1.9/2020 –
“AfCFTA Capacity Building needs of Customs”, Finding 1, where it was established that only
28% of those measured in the survey, had plans in place for implementation.
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This was also supported by Finding 2 of that report53. Simple awareness does not constitute
a plan of action.
Recommendations
The AUC, in collaboration with relevant Stakeholders, Secretariat etc., should identify and
liaise with each State Party and consider delegation of resources focused on providing the
guidelines and a formal Priority Implementation Checklist54 for all Customs Administrations
of State Parties to achieve implementation. This report will also provide and inform on
guidelines for such an initiative to be drafted for Customs Leaders by way of the AUC Customs
Leadership Module.
Perhaps some State Parties may be waiting for final TARIFF Concessions as required, according
to the most recent modalities. However, this should not delay positive Customs-related
strategies towards ultimate implementation, such as Capacity Building, printing of
Certificates, and the like. Without documented deadlines there will be no measurable
deliverables.
There are numerous reports and media articles available addressing the potential success and
limitations of the AfCFTA. In some Customs Administrations, barriers are already in the
spotlight. It is imperative that Customs expedited implementation initiatives are seen in a
positive scope. In support of this finding, to drive engagement, please note the comment
below.
“State Parties should undertake strategic planning for implementation of the AfCFTA,
including cascading the measures in the National Implementation Strategies to departmental
business plans. Further it should be a priority to seek external support where internal Capacity
may be or is lacking” (GFA).
Customs Administrations that have not as yet created or designated a Team with the
responsibility for monitoring implementation of the AfCFTA, are urged to so urgently, and
further ensure such a Team has an approved mandate, budget, adequate and capacitated
staff, and equipment, required to function efficiently. A component of this report has set out
detailed extracts of all Customs related AfCFTA Article compliances, extracted from the main
agreement, and its Protocol on Trade & Annexes. What should be considered in a future
AfCFTA utopia, is that Customs Authority Leadership skills may become transferable, to apply
their skill sets in other State Parties. It is highly apparent that developing State Parties, will
reach full implementation, before lessor developed State Parties. A continental pool of skilled
experts should be considered to be identified through AUC guidance and ROCB assistance.
Officers who emanate from such developed State Parties, could be thus considered to ply
their skills in nations that may lack such capacity. Such skilled resources could serve as
mentors and coaches to Customs Leaders in command of Administrations that evidently
reflect lessor capacity55.
53 GFA report extract - While most countries (22) that responded to the survey reported that they have a National
Implementation Strategy for the AfCFTA (69%) and a Customs corporate/strategic/business plan (69%), only nine (9) of
the countries (28%) have plans with measures for implementation of the relevant provisions of the AfCFTA Agreement,
its Protocols and Annexes.
54 Similar portals are provided by the WCO to assist with WTO Agreement on Trade Facilitation implementation.
55 This study mandate did not extend to identification of such prospective cooperation opportunities.
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This is where the Training of the Trainer programmes suggested in the GFA report will
definitely find application. 56
5.1 (b)
Q 22.G9 (A) Has your Administration Leadership set up specific
AfCFTA future implementation "performance management"
criteria, to monitor operational issues, give feedback etc., towards
achieving the vision of the AfCFTA Agreement?
58
60
50
40
30 21 21
20
10
0 NO DON'T KNOW
YES
The vision of Agenda 2063 of the African Union sets the objectives of the Protocol on
Trade, guiding activities towards the overall objective of achieving an African Customs Union.
In this regard reference is made to Border issues which are notorious, and contentious. Areas
flagged, are Border delays, lack of Transit facilitation, development of Customs Cooperation
initiatives, conclusion of Mutual Administrative Assistance arrangements, and identification
of Internal Risks, which will be evident in trading under the AfCFTA Agreement.
Customs should therefore look beyond the requirements and obligations of Annex 2 and take
note of the obligations in the other Annexes to the Protocol on Trade.
It can thus be expected of Customs Management to set up and implement performance
management of the overall objectives of the Protocol on Trade to the AfCFTA, which
will contribute to the objectives of Agenda 2063.
Findings
58% of respondents reported a “No Response” indicating that they have not given thought
to their overall responsibilities, as directly related to implementation performance
management monitoring, under the Agreement & other Annexes to the Protocol on Trade.
However, these are very similar provisions, as those which are found in the other REC’s which
would have been implemented in the past.
56 Recommendation 1: State Parties should make strategic planning for implementation of the AfCFTA, including cascading
the measures in the National Implementation Strategies to departmental business plans, a priority and seek external
support where internal capacity is lacking. (GFA report Exec Summary REF: AUC/CFTA/STUDY No. 4.1.9 / 2020)
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This question also has bearing on other Cross-Field Outcomes in the Questionnaire, which
yielded a similar supporting conclusion.
Recommendations
It is proposed that a comparison table be developed to compare the differences between
those Annexes in the REC’s with those in the Protocol on Trade, and to address and identify
the differences. This, however, will be dependent on the progressive implementation
process of those Annexes under AfCFTA, and in resonation to the REC’s. Such an exercise may
even expose shortcomings in the Annexes of the other REC’s.
Management and Leaders in Customs Authorities should consider that AfCFTA compliance is
constant work in progress, until the final Continental Customs Union goal, will be achieved.
According to the GFA report, Administrations that have not created or designated a unit with
the responsibility for monitoring implementation of the AfCFTA should do so as a matter of
urgency, and ensure such a unit has a budget, adequate staff and equipment required to
function efficiently.
The AUC would be recommended to draft its own implementation monitoring Priority
Implementation Checklist which could be country-specific, confidential, electronically
accessed, simple to populate, and utilise same for consistent observation as there will be
numerous State Parties, all at different stages of implementation or phase-in of Concession
submissions.
5.1 (c) Q 17.G8 (B) When will your systems be ready to incorporate
the AfCFTA provisions?
70 64
NO ANSWER
60
50 36
40
30
20
10
0
DATE
The readiness and capacity of Customs Administrations IT systems and technology is key to
the successful implementation of Trade in goods between State Parties. All Customs
Declarations must be captured on the central system to serve as a record of Import and
Exports. This data is also used for various other purposes.
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Proof of Origin, issued by Competent Authorities, are linked to Export consignments,
and again form the basis for allowing for preferential Tariffs at the time of importation. All of
this is system based.
E-Commerce developments, application, and planning concerns, from a Private Sector
viewpoint, have been expressed according to Jason Blackman, (DHL Africa Continental
Customs Compliance Executive) that “In negotiating the African Continental Free Trade Area
Agreement (AfCFTA), State Parties cannot afford to ignore the current reality of trading on the
Continent. Creating an AfCFTA that does not address the digitisation of Trade risks stifling the
effectiveness of the agreement before it even begins, or worse, setting intra-African Trade
further behind.
Although the digital economy is not specifically identified as part of the mandate of the
AfCFTA, a Trade Agreement in the 21st century cannot avoid covering aspects of the digital
economy. Thus, specified or not, the digital issues will be considered as part of the existing
mandate. Trade rules must accommodate the reality of the digital economy.”
Findings
Of the 14 countries respondents, 64% did not respond to this specific question.
Pertaining to Administrations who may be ready to successfully implement the
agreement, 36% of respondents, indicated that they would have been ready by the 1st of
January 2021. Of concern, relevant to systems is that, most of the countries surveyed will be
latecomers to the AfCFTA implementation dates, as envisaged.
The resultant predicament is that those countries who have made an effort to be ready at the
outset are now limited to Trade with only a few State Parties. Customs Leaders should be
made aware that the AfCFTA does indeed make mention of electronic certification.
The use of the e-CoO in the AfCFTA is highly recommended as this will eliminate considerable
trade costs ordinarily incurred under a manual environment. Delays resulting from repetitive
manual completion of CoO by Exporters each time an export is being done can be eliminated.
It is recommended that AfCFTA State Parties adopt a single common digital CoO System as a
standard platform which can easily be accessed by all Exporters and Administrative Agencies
in all State Parties. The “Approved Exporter” provisions will however, also go a long way in
lifting the burden of the manual paper processes.
Recommendations
The proposal in this regard will be for the AUC to guide the AfCFTA Secretariat, to make a
concerted effort to engage those countries who are not system-ready, and to provide the
necessary support and assistance needed.
As the question is system-related, an internal team engagement must take place within the
Customs Authority, to ensure that all system issues give effect to the AfCFTA provisions in
Annex 2 allowing for Electronic Certificates of Origin. Serving this objective, will be reliant
upon the Customs system to measure the flows of Trade for economic, strategic, Trade
Facilitation and monitoring purposes.
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It is recommended that AfCFTA State Parties adopt a single common digital CoO System as a
standard platform which can easily be accessed by all Exporters and Administrative Agencies
in all State Parties, which platform can also serve to giving effect to Invoice Declarations.
It is further recommended that trial tests should be conducted to ensure that data is indeed
being captured correctly in the system for future reporting and evaluation. A complete focus
area recommended for the AUC, is to seek remedies to empower all Customs Authorities to
be able to interact electronically by a given deadline. In fact, this system solution is considered
a high priority to avoid contraventions, and to facilitate Trade.57 This will also be relevant in
implementation of the provisions of Annex 3.
5.1 (d)
Q 19.G8 (D) Does your Administration Clearance System,
collect Trade Statistics data?
86 14
90 NO
80
70
60
50
40
30
20
10
0
YES
The capturing of and determination of data requirements pertaining to Customs
Declarations must comply with WCO Data Model requirements, which prescribe standard
unit values, minimum data sets, which need to be captured for purposes of International
Merchandise Trade Statistics. This data forms the basis on which world Trade is monitored.
This allows for Individual countries to provide protection to local industries, determine Trade
imbalances, etc. As other Annexes are implemented, such data sets are important to
facilitate Single Window Border Cooperation and the like. The successful implementation of
the AfCFTA must be measurable, which will require Trade Data to be available.
Findings
86% of respondents notified that they indeed comply with this requirement. However, 14%
of respondents indicated that their Customs clearance systems do not collect data for
purposes of Trade Statistics.
57 The study has used open-source materials complemented with information obtained through electronic communication
and participation in meetings.
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It is also not known what the situation is with the 10 countries who did not respond to the
survey. This should be of great concern to all State Parties who were involved and who were
invited to reply, as well as to the requirement and ability to report correctly and
comprehensively.
Recommendations
The AUC together with associating implementation Authorities, will ultimately be in the
position of monitoring Trade Statistics and encouraging growth in intra Africa Trade. They
should conduct a programme of verification of Customs clearance and Administration
systems, monitor the capturing of data for authentication and assist where gaps in the
process may be evident. Data collection and correctness is mandatory in most Countries
Globally, certainly for WTO and WCO Members. Customs Authorities need to be
sensitised about their role in the setting of and complimenting the overall macro-
economic policy of their country, and how statistical data contributes to the input thereof.
The measured objectives and status of Trade must thus be captured and monitored. Traders
will seek information to identify trading opportunities, for AfCFTA ultimate objectives to be
reached.
5.1 (e)
Q 20.G8 (E) If yes, Please indicate which statistical details
are captured? Such as, HS Code, Date, Value, Volume,
Country of Origin etc.
100 93 93 93 93
90
80 71
70
60
50 43 36 36
40
30
20
10
0
Most countries, 93%, indicated that they do capture the required data set which will enable
them to monitor Trade. To a lesser degree, some countries have indicated that they do not
capture Importer/Exporter details, description of goods, volumes/quantities, and country of
Export/Origin.
Findings
Unfortunately, it is not known what the situation is of the 10 Customs Administrations who
did not respond to the survey.
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One Customs Administration who did respond to the survey, had indicated that they do not
capture statistics. Some Customs Administrations had also not responded to this question.
Recommendations
As mentioned, Customs is the collection point of Trade data. Any anomaly in this regard
should be of concern to all as the exchange of Trade-related information between
countries must be compared to monitor Trade.
Mutual cooperation and Trade Facilitation under the other Annexes to the Protocol on Trade,
will also require data collection to engage and correctly implement provisions as relevant.
Customs Authorities may consider simplified penalties58 to ensure data integrity. An
awareness of the importance thereof in the other Annexes is crucial, as the Customs Authority
is Globally considered to be the data-collection point in Countries.
A specific budget may be required to address any gaps in this crucial area for implementation.
The AUC should consider that, as most Customs Administrations utilise similar Software, the
developers be approached to incorporate any modular upgrades which are AfCFTA oriented.
WCO instruments relevant to measurement of time in Customs Processes, is prescribed on
receipt of data.
5.1(f)
Q51.TR1 Has your Authority developed Standard Operating
Procedures, Guidelines and Manuals for Transit procedures?
60 57
50 29
40
30 NO IN PROGRESS
14
20
10
0
YES
58 An example of legislation relevant to Origin Contraventions from the RSA Customs Act is an example - Section 44 (12) Any
person who makes a false statement concerning the origin of goods or who makes use of any declaration or document
containing any such statement as a result of which such person obtains entry of imported goods at a preferential rate of
Duty as specified in Part 1 of Schedule No. 1 in accordance with the provisions of any agreement contemplated in section
49 or 51 shall, for a period of three years prior to the date on which such false statement was made or made use of, in
addition to any other liability incurred in terms of this Act, be liable for the payment of duties at the general rate specified
in Part 1 of Schedule No. 1 in respect of the goods at the time of entry: Provided that the Commissioner may on good
cause shown reduce such period.
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The training of officials by Competent Authorities in the obligations and requirements of free
Trade arrangements are central to the success thereof, specifically as data is also utilised in
Risk Management Strategies.
One of such obligations is to facilitate the movement of goods and means of transport
between State Parties in order for Trade to flow. Reference in this regard is made to
Annex 8 on Transit which provide for the facilitation of goods and means of transport through
Border posts. Congestion at Border posts generally result in delays and adds to the final costs
of goods.
Reference is made to Article 42(1)(f) of Annex 2 which alludes to the outstanding matter of
the drafting of manuals and guidelines for Rules of Origin. This would equally apply to the
drafting of manuals and guidelines to facilitate the Transit of goods and means of transport.
NB!! Kindly note the following observance in a study directed at the achievement of a
Continental Free Trade Area on the African Continent:
Domesticating regional transit management system. The majority of RECs and their State
Parties are moving quickly to modernize and apply international best practices in transit
management systems reflecting greater regional integration. State Parties have incorporated
in their national legislations various provisions for transit-related regional customs
documentation, regional transit bond, regional risk management tools and regional ICT
support for data exchange and management information system to allow for their
implementation. Other RECs and their State Parties are lagging behind and are likely to pause
a challenge for the speedy implementation of, and realization of the potential benefits from
the CFTA. Differences in the range of transit management system measures and provisions
recommended and implemented across different RECs show differences in the stages of
development and/or state of transit management systems in the AU.
This AUC recommends study working closely with all RECs to facilitate sharing of experiences
and providing or arranging for interventions to support RECs and State Parties needing such
support (e.g., institutional reforms, modernisation of relevant legislation, inter alia). Source -
African Union CFTA Unit - Situational Analysis of Customs Procedures and Cooperation, Trade
Facilitation and Transit Instruments in the AU State Parties and RECs STUDY (REF:
AUC/CFTA/STUDY Nr. 01 / 2017).
Findings
For the future success in implementation of the AfCFTA, it should be appreciated that the first
line of defence is the Original issuing Authority. 14% of respondents indicated that they do
have such Standard Operating Procedure Guidelines and Manuals, 57% indicated that they
do not have such documents, whereas 29% of respondents indicated that they are still in the
process of developing such documents.
It must be borne in mind, that Annex 8 only applies to road transport, which may not apply
to some State Parties. It should be noted that Trade arrangements under the REC’s generally
include arrangements for Transit Facilitation, which is remarkably similar to that of Annex 8
to the AfCFTA Protocol on Trade.
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In this regard, some State Parties may already apply similar provisions, and should therefore
not have much difficulty in adapting to those required for the AfCFTA.
Recommendations
It is proposed that this matter be tabled by the AUC, in the Sub-Committee on Customs and
Trade Facilitation, for State Parties to share information and assist each other. Unfortunately,
African State Parties are renowned for Border congestions and an awareness by Customs
Authorities via Capacity Building initiatives directly focused on the respective Annexes, is
crucial to implementation success.
By way of example, Annex 8 deals with sealing provisions, markings, and licensing of vehicles
etc. A mindset of priority Trade Facilitation of goods traded under AfCFTA is paramount and
consideration must be given to State Parties which are landlocked.
5.1 (g)
Q 58.CL1 In your opinion, what criteria does your Customs Administration
Leadership consider most important, in order of priority, to
implement the AfCFTA? a) Capacity Building, b) Cross-Border
cooperation, c) Addressing resistance to Change, d) Legislative
implementation, e) Implementation monitoring, and planning
teamwork.
Q58 CL1 - Capacity Q58 CL1 - Cross Q58 CL1 -
Building Border Cooperation Resistance to
18% 18% 27% change
9% 9%
55% 27% 27%
18%
46% 46%
Q58 CL1 - Q58 CL1 -
Legislative Monitoring
implementation
18% 55%
9% 9%
18% 37%
18%
36%
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Findings
i. 55% indicated Capacity Building as the highest priority.
ii. 46% indicated that Cross Border cooperation as a second priority.
iii. 46% reflected Resistance to Change as 3rd priority.
iv. 37% reflected Legislative implementation as 4th Priority.
v. 55% reflected Monitoring as their final critical area.
Observation
The Questions pertaining to the above were raised and phrased in a manner to identify the
key high-level critical areas of implementation and how they were prioritised by the
responding State Parties.
Of key observation was that 55% reflected Capacity Building as their highest priority, and of
those their second priority concern area was mostly reflected as resistance to change.
Of comfort, however, is the fact that a grading of priorities was provided by all, as to the
choices criteria. The respondents are again reminded of the Leadership Priority
Implementation Checklist that they should draft to meet these implementation objectives. A
previous EU/SADC countries as related to the main priority Capacity Building areas, was
identified as reflected below:
Table 1: EU / SADC STUDY REF: PROJECT NO (9 ACP SAD 009) - Priority Training Needs Rating
by Individual State Parties (Study Table from Gap Analysis)
Percentage: Number of
SADC MS reporting
No. Course/Intervention High (H) Medium
(M) H&M
1 Origin 93% 7% 14
2 Valuation 79% 21% 14
3 Classification 71% 29% 14
4 Risk Management (Operational) 43% 57% 14
5 Management of Risk (Management) 36% 64% 14
6 Post Clearance Audit 36% 64% 14
7 Flexible Risk Teams (FAST’s) 7% 93% 14
8 Investigation Techniques 7% 93% 14
9 Risk Profiling 14% 79% 13
10 Resourcing by Risk 7% 86% 13
11 Senior M D P 14% 71% 12
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Percentage: Number of
SADC MS reporting
No. Course/Intervention High (H) Medium
(M) H&M
12 Management Development 7% 79% 12
Programme
13 Report Writing and Drafting 7% 57% 9
14 Vessel Rummage 14% 29% 6
15 WCO / Authorised Economic Operator 14% 29% 6
16 Train the Trainers (Course 7% 21% 4
Development)
17 Integrity 21% 0% 3
18 Excise / Duty at Source 14% 7% 3
19 Trade Facilitation & Security of Society 14% 7% 3
20 Image Interpretation (Scanners) 14% 0% 2
21 Research Skills 7% 7% 2
22 Computer Skills 0% 14% 2
23 Exchange Programmes 0% 14% 2
24 Investment Promotion 0% 14% 2
25 Litigation 0% 14% 2
26 Training Skills 0% 14% 2
27 Data Mining (e.g., Analysts Notebook) 0% 7% 1
28 Drug Dog Training 0% 7% 1
29 Regionalisation / SADC 0% 7% 1
Only one State Party reflected the concern of legal implication and implementation as the
highest priority and main area of concern. AfCFTA trading simply cannot take place in an
environment of uncertain legal predictability and compliance.
Compliance in, and under the AfCFTA, is critical, not only for Traders, but also to the Customs
Authorities themselves. Legal implementation must cover the scope of ALL the Annexes of
the Protocol on Trade.
Legal framework provision in and implementation will reflect the complete state of readiness
of such State Parties to delivery under the objectives and should cover all the aspects of the
respective Annexes.
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Recommendations
Capacity Building initiatives, as may be considered by Leaders and the AUC, is a high-focus
barrier area in implementation. Capacity Training should also, as mentioned, be aligned to
knowledge level outcomes in assisting legislative implementation across all Annexes. The
authors wish to distinctly draw focus to the numerous WCO, and WTO instruments and other
Customs Programmes, which have been embarked upon Globally, such as AEO, Single
Window etc., and invite specific attention to the fact that the AfCFTA, through its respective
Annexes provides the opportunity for such to be implemented on a grand scale across Africa.
It is futile to pursue an increase in Intra-Africa Trade, if the costs will simultaneously not be
addressed to achieve a drastic reduction through Customs Trade Facilitation under the
AfCFTA. Therefore, Capacity Building solutions must be directed at E-Learning methodology
which is affordable to all nations.
5.2 (a) Capacity Building
Q 14.G6 With Reference to Annex 2, is your Administration
aware of how to verify the actual Origin compliance rules,
applicable in all other 8 Regional Economic Communities
(REC) example: SADC, COMESA etc.?
79
80
70
60
50
40
30
20 14
7
10
0 NO NOT SURE
YES
Article 42 of Annex 2 indicates that, in the absence of the product specific rules under the
AfCFTA, which are still being negotiated and finalised, countries must apply the rules
applicable under the REC which they are a Party to, e.g., SADC countries would apply the SADC
rules, ECOWAS countries the ECOWAS rules, etc.
Issuing Authorities in exporting countries would therefore certify “Origin” of goods in Trade
under the AfCFTA in accordance with the rules applicable in their REC.
This is likewise the case in Origin verification assistance afforded through Customs-to-
Customs Cooperation where required. Customs Authorities should be able to explain to
counterparts in Importing countries outside their REC, the applicable rules and interpretation
of same.
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Understanding your Customs Authority REC rules, and the impacts on other State Parties in
other REC’s, and vice versa, it is therefore of paramount importance, especially for Trade
opportunities to be identified.
For instance, where a State Party is a Party to one or more than one REC, it is understood that,
should there be different rules applicable, and that those, which are more beneficial to their
Trader, would/could apply.
Naturally, once all negotiations on the actual Rules of Annex 2 are concluded, there will be a
clearer understanding of the only Rules that would be applicable to AfCFTA Trade
transactions.
Findings
79% of responding Countries indicated that they are aware of the RoO as contained in other
REC’s, while 14% indicated that they were not sure, and 7% indicated that they are not aware.
The concern is whether all Customs Administrations have understood the relevance of the
question in resonation to the criteria provisions of Article 42 of Annex 259.
Countries will now be required to accept CoO from other REC’s, of which there will be RoO,
which they may not be fully familiar with, and if compliance verification to the RoO in those
REC’s is raised, then a prior understanding of these RoO’s will be required, to engage with
issuing Customs Authorities and prevent possible exploitation and circumvention.
Recommendations
The impact of the interim application of REC’s RoO must be imparted via Capacity Building
initiatives and throughout in each State Parties’ Customs Administration.
Traders too, will wish to seek their own Customs Administration’s assistance to interpret and
seek business opportunities.
It is again stressed that there is a phasing-in factor that all Customs Administrations must be
aware of. Successful implementation of the AfCFTA can be considered WIP (Work-In-
Progress).
Monitoring and interpreting of Trade Offers, as they are submitted, as well as the
developments in inconclusive negotiations, are all factors that require constant monitoring.
The AUC is recommended to ensure constant updated information in guidance and provide
consistent visibility to developments.
Customs Leaders will be required to comprehend the phases through Capacity Building
initiatives, as reflected in the diagram below.
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The report analysis, especially observed during the final Webinar engagement, finds, and
highlights the need of Customs Administrations requirements for Capacity Building. It is
recommended however, as this report does not deal specifically with types and areas of such
Capacity, that the GFC report AUC/CFTA/Study No 4.1.9/2020 be consulted, as this study
specifically addresses Capacity Building for Customs Administrations for the African
Continental Free Trade Area. Therefore, a specific strategy, within the plan for
implementation will be informed and enhanced by a review of the GFA report, as to the
complete framework and focus areas on Capacity Building as was determined in that report.
5.2 (b) Q 35.OC2 (A) Is your organisation aware of, and able to apply,
all the technical criteria and elements, of the concept of
"Originating Products" in AfCFTA?
71 29
80 NO
70
60
50
40
30
20
10
0
YES
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The certification of Origin and correct interpretation and application of the Rules or Origin is
conducted on the basis of the Customs Authority in the importing country, relying on
the competency on the Customs Authority in the exporting country.
This is to verify that products traded, do qualify as “originating”, for the purposes of
the Agreement, in order to qualify for preferences.
It is therefore incumbent on the competent Customs Authority in the exporting country to
be vigilant in the due diligence, and verification process, as this will, or could have an impact
on the potential revenue that is forgone, as a result of irregular preferential Customs Duty
attainments, at the time of importation.
Similarly, allowances of value thresholds not requiring origin certification60 and other
tolerance’s, must still be clearly interpretated and monitored in order that the goods must
still be of AfCFTA State Party origin to be accorded the preferences.
This is also a potential risk management area.
As a general rule, the Customs Authority in the Importing country will accept such
certification of Origin, issued by the Competent Authority in the Exporting country, provided
the Certificate of Origin is made out correctly61, and fully compliant in all respects, and that
there is no reason to doubt the correctness thereof.
Customs Authorities may, in cases of doubt, request the competent Customs Authority in the
exporting country, to conduct a thorough verification, and to provide supporting references
and documentation to its findings, as to Origin preferential admissibility.
Findings
On the question of whether the targeted State Parties are aware of and able to apply Origin
Application criteria properly, 71% indicated that they are aware and able, and 29% of
respondents indicated that they are not aware, nor in a position to do so. Not only does this
point to the risk that they hold for other State Parties, but also that they are ill equipped to
advise their Traders on key matters of the agreement.
Those countries that responded with a “NO” answer could further be jeopardising the Trade,
relevant to their current REC and future opportunities.
Recommendations
This clearly calls for a training and Capacity intervention, together with Private Sector and
other Governmental Stakeholders engagements, in the relevant countries lacking in this
Capacity.
60 A value of US$5000.00 is reflected in the Articles as the threshold when a Certificate of Origin will not be required to be
submitted.
61 Important to view the exact format in the relevant Appendices.
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5.2 (c)
Q 36.OC2 (B) Has your organisation undertaken
Operational Capacity Building in Annex 2, on AfCFTA (Rules
of Origin)?
50 50
45
40 36 14
35 NO DON'T KNOW
30
25
20
15
10
5
0
YES
Competent Customs Authorities need to ensure the correct application of Origin criteria, as
provided in Annex 2 to the Protocol on Trade, before Certificates of Origin can be issued or
verification of Origin can be determined.
It is important for this purpose that employees in the Customs Authority and within Traders
involved in these activities, receive the required training and that the necessary Capacity be
created on an ongoing basis.
Findings
On the question, whether the organisation has undertaken the necessary steps in Capacity
Building, 36% of respondents indicated that they have done so, 50% of respondents indicated
that they have not done so, and 14% indicated that they did not know if this has been
concluded.
Given the provision of outstanding issues provided in Article 42 of Annex 2, this also raises a
major concern which, in response, needs serious training and capacity interventions, on the
part of the Customs Administrations, possibly in tandem with guidance and assistance of the
AUC.
As the study focus was specifically directed at implementation challenges of Customs
Authorities, it has been observed that in April 2019, UNECA published Guidelines for
developing African Continental Free Trade Area national strategies to assist requesting AU
Member States to overcome the potential challenges of implementing the Agreement, and
seize the opportunities offered by integrated markets.
UNECA thus identified national trade facilitation strategies of which focus was amongst others
on key components and one being constraints to overcome and strategic actions required:
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o Current constraints and potential impediments, especially non-tariff barriers that can
undermine countries competitiveness and their ability to make the most of AfCFTA, with
regard to the priority sectors and products.
o Identification of actions to address identified constraints.
o Identification of institutional and policy weaknesses and skills gaps needed to boost
priority sectors.
o Identification of actions required to address existing and potential constraints, enhance
productive capabilities, foster an enabling macroeconomic environment, boost
competitiveness, promote Regional value chains and accelerate value addition and
industrialisation, among others.
o Identification of key macroeconomic challenges and risks.
Recommendations
According to a recent Global study conducted through the AUC, as funded by the European
Union, and implemented by a GFA Consulting Group led Consortium, which is titled:
“Capacity Building for Customs Administrations for the AfCFTA Area, the following important
findings were cited, specifically in relation to Capacity Building”:
“Administrations that have not created or designated a Team with the responsibility for
monitoring the implementation of the AfCFTA, should do so as a matter of urgency, and ensure
that such a Team, has a budget, adequate staff, and equipment, required to function
efficiently.
Twenty-nine (29) out of the thirty-two (32) Administrations (91%), who responded to the
previous Survey, have National facilities for the training of Customs Officers, reflecting the
priority accorded to the training of Customs Officers at the National level. “
Such facilities in cooperation with the ROCB Offices could, on provision of updated AfCFTA
curriculum training material, provide desired Capacity Building solutions.
The WCO has designated various of these facilities as Regional Training Centres, of which we
have four (4) in the East and Southern Africa Region (Kenya, Mauritius, South Africa, and
Zimbabwe), three (3) in the West and Central Africa Region (Burkina Faso, Congo Republic,
and Nigeria) and two in the North African Region (Egypt and Tunisia).
Most of these facilities are designed for face-to-face learning, which now poses challenges
due to the COVID-19 requirements for social distancing and hygiene requirements. It is
suggested and supported by the GFA Study that Customs Administrations should be in
cooperation with the above.
• Develop a training curriculum. (Modelled upon provision of accredited recognised NQF
Certification.) It is strongly recommended however, in line with a formal recognised and
accredited Qualification by the NQA.
• Prepare training materials, including a Manual on AfCFTA Rules of Origin.
• Training of Trainers.
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The gaps and solutions via these recommendations are fully supported and the AUC target,
without doubt, is also for Capacity of Traders themselves? Distance Learning Products and
methodologies are key in a new COVID-restricted world.
These should be developed or identified as may be available from African Training Experts.
The AfCFTA goes further in that, many Annexes require a constant awareness and fulfilment
of objectives, in the nature of its progressive and development moving status.
The AUC is recommended to consider the drafting of special Risk Management criteria and
strategies as there exist definite areas of opportunity for non-compliance and contraventions.
A continental objective must be, to formulate and delivery, recognised and accredited
Customs competency qualifications, through each nation’s NQF (National Qualification
Authority).
As such lifelong serving Customs Officers and such employees in Traders alike, will be duly
recognised in competency, and their skills transferable and transportable.
Of many recommendations in this report, this one, under AUC guidance with professional
assistance, may be considered as the highest priority.
5.2 (d)
Q 45.POO4. Has your Authority provided training to Post
Clearance Audit Teams, on AfCFTA Origin compliances, to audit
and verify compliance?
86
90 NO
80
70
60
50
40
30 14
20
10
0
YES
The acceptance of Customs Declarations at the time of importation are in accordance with
RKC Guidelines and handled on a risk evaluation basis. It therefore stands to reason that, in
application of risk-based targeting methodology, Customs interventions are restricted to a
minimum and that the bulk of Declarations pass through the clearance process without any
challenges.
Customs Administrations are therefore heavily reliant on post clearance audits (PCAs), to
ensure compliance with legislative requirements and to monitor granting of preferences. It is
therefore important that the Customs Administration provide their post clearance audit
teams with the necessary Capacity and skills to perform this task. Very few countries have
given any attention to this.
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Findings
Only 14% of respondents indicated that they have provided such training, while 86% of
respondents indicated that they had not provided such training to PCA Teams. This again
points to a shortcoming in Capacity Building and a training area which may not be considered
a priority.
NB!! PCA Teams are in fact a Risk Management solution towards facilitating Trade.
Recommendations
Customs Administration must be made aware of the benefits of professionally trained and
capacitated employees, particularly in PCA to ensure the integrity of the overall Risk
Management Strategy Plan.
Preferential Rules of Origin define the conditions that a product must satisfy to be deemed as
originating in a Country that is eligible for preferential access to a Partner’s market.
Verification is crucial that goods have not simply been transhipped from a non-qualifying
Country or been subject to only minimal processing.
5.2 (e) Q 37.OC2 (C) Has your Administration considered joint
AfCFTA & Origin training programmes with other
Administrations?
60 57
50 14
NO NOT SURE
40
29
30
20
10
0
YES
Findings
In the main, it is highly evident that each Country has its own challenges and limitations in the
implementation of the AfCFTA, which can be understood. As Capacity Building of a
sustainable nature is key to the implementation success, and with a view to provisions of the
Mutual Cooperation Annex, 29% responded that they have considered joint Origin Training,
57% of the State Parties responded that they have not considered joint Origin Training
Programmes with other State Parties, and 14% advised that they are not sure of the status of
such Considerations. Cooperation and Capacity for Leaders to drive this initiative in
cooperation with the ROCB’s, is naturally also key to the successful implementation of the
AfCFTA.
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A further concern is revealed by the 79% “NO” responses to the question relevant to
“Electronic Data Interchange” and Cooperation between State Parties had been considered,
and that 50% have not considered Electronic Interface to Traders, which equates to the
potential negative that the majority of AfCFTA Customs Administrations, may not be ready
for Electronic Commerce and Processing.
Recommendations
AUC Capacity Building undertaken should be uniform and recognised according to standards
of a Continental NQA recognition matrix. Capacity in all State Parties must be uniform,
consistent, and assessed by the same standards. It is mooted that, through such initiative, on
a consolidated approach basis, even a Certificate Qualification Programme recognised by all
of the Educational National Qualification Authorities (NQA) in all State Parties should be
adopted with the AUC, as Key Stakeholder.
Once Continental Capacity is assured, only then it is certain that the objectives of the AfCFTA,
and all of its respective Annexes will be achieved. A uniform accredited and recognised
curriculum must be developed by a Competent African Training Institution to support the AUC
and all Administrations.
5.2 (f) Q 52.TR2 (A) Is your Administration already familiar with
the issuing of required Certificate confirming transit
information?
70 64
60 NO
50 36
40
30
20
10
0
YES
Observation
36% responded that they are familiar with the issuing of Certificates, and 64% responded in
the total negative to this question. 5 of these responses are from landlocked countries.
Landlocked countries must be aware that, besides the CoO, that additional documents, such
as “Movement Certificates”, and the like, are also required in terms of AfCFTA, and they
should be the main drivers of discussions to facilitate Transit to their respective nations. The
Annexes relating to Transit, Trade Facilitation, and Mutual Cooperation, are key to the
successful implementation of the AfCFTA. Annex 2 relating to the issue of Certificates, Rules
of Origin, Control, and Administration, cannot be considered in isolation, due to the many
overlapping interactions of concepts and procedures.
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For instance, the “One-Stop-Border-Port” issue has been a topic in Global Customs for a
substantial time, having its origins in a WCO instrument titled: “Coordinated Border
Management”62. Whilst Customs Authorities should appreciate that, in approaching
implementation, they should obviously first be in a position to comply to the RoO Articles in
Annex 2. They should realise, at the commencement of the planning roadmap, that the
compliance and implementation of all the Annexes will indeed be the ultimate final goal and
objective.
Obstacles that may further be found are the duplication of legislative frameworks that control
Border Trade.
These may even be identified as NTB’s as clearly, the Authorities responsible for those
legislative frameworks, may be distant from the Customs Authority in operational and at
Capacity level, particularly when it comes to interpretation of the AfCFTA. The Chirundu OSBP
serving Zambia and Zimbabwe, is considered to be the first OSBP, yet emerging between two
landlocked countries.
OSBP will also lead to economic solutions in resources, and the like, and thus promote
efficiencies in these critical areas leading to Transit and cost savings in Trade.
Recommendations
Concerns relating to execution divergent from planning will be frustrated by duplicating
controls and Border Authorities. Customs Authorities, as guided by the AUC, must be aware
of the benefits of the full implementation of all the Annexes, and to sensitise Governments
respectively, of the dangers of duplication of Border Controls which will clearly not achieve
the benefits of Trade Facilitation. At the very least, such duplication Agencies, should then
also submit to the necessary Capacity Building undertaken by Customs Authorities to be
abreast of higher-level Continental initiatives, such as the AfCFTA.
From a NTB point of view, and with concern to negative impacts in Transit Annex objectives,
a far-reaching sensitisation will be required, especially in additional Capacity Building. Once
again, Private Sector consultation surfaced as a question. Has this been performed and to
what extent, given that Traders are best informed as to the negative impacts encountered, as
well as where Trade initiatives are being driven towards, and technology improvements?
SMART Borders and Electronic Commerce can work hand-in-hand, in achieving Trade
Facilitation. The absence of E-Commerce planning can be to the detriment of a nation’s
Trade, including future negative impacts to its technology limitation in processing and
Customs Control. Customs Administrations must consider the AfCFTA as an opportunity and
not a burden. Positive Transit considerations have a multitude of benefits, such as scanning
equipment sharing, and the like. The AfCFTA must be approached from a wide-lens
viewpoint. The AUC should continue to draw focus to NTB’s and ensure Capacity to be
delivered to all negative criteria that are impacting Border Facilitation.
62 http://www.wcoomd.org/en/topics/facilitation/activities-and-programmes/coordinated-border-management.aspx
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5.2 (g) Q 55.TR3 (A) Has your Administration put into place transit
procedures for compliance with Annex 8? Annex 8, Article 6,
40 provides that all transit traffic operations, under cover of the
35
30 AfCFTA, shall be under the AfCFTA Transit document and
25 covered by Cu
20
15 36
10
29
5
0 21
14
YES NOT SURE IN PROGRESS NONE
In response to the question: “Has your Administration put into place Transit procedures for
compliance with Annex 8?” Annex 8, Article 6, provides that all Transit traffic operations,
under cover of the AfCFTA, shall be under the AfCFTA Transit document and covered by a
Customs Bond and Surety arrangements?
Observation
Only 36% of the responses were in the affirmative, and 21% indicated “in progress, while 14%
were not sure, and 29% indicated “None”. The Customs scope for AfCFTA of only addressing
competency in Annex 2, is clearly not the solution.
In a related study on implementation of a “Continental Free Trade Area”, the following
observation was made:
Almost half of the State Parties in the survey have/do not have agreements or Memoranda
of Understanding (MoUs) with other Customs administrations to monitor or control transit
goods. The study recommends that the CFTA should encourage State Parties to reach
agreements or have MoUs for enhanced Customs control of transit goods and in compliance
with international best practices set in international agreements, e.g., the WTO TFA.
Recommendations
The AUC and respective Customs Authorities within need to emphasise a wider focus on the
scope of application that will be required for successful implementation of the AfCFTA.
The lack of focus in matters relating to Transit can be a fundamental negative and requires
perhaps even a standard of equal securities and central financial depository for same, by way
of one example.
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5.3 Lack of Key Stakeholder and Trader Engagement
Q 13.G5 Has your Administration engaged with both Trade
and Private Sector Stakeholders, to inform them of
Customs Compliances under the AfCFTA?
40 36 36
35 28 NO IN PROGRESS
30
25
20
15
10
5
0
YES
The fundamental principles of modernised Customs Authority are founded on Trader
engagement and Trade Facilitation.
The lack or absence of Trade engagement, being the objectives of the Agreement, would point
towards either, the lack of Capacity in this regard, or that the Authority responsible, is not
appreciating the macro-economic picture. These principles of awareness and engagement
are established under the WTO Agreement on Trade Facilitation, as well as alluded to in the
Revised Kyoto Convention. Without the involvement of Trade, the FTA will be meaningless.
Findings
Of the respondents, 36% (5) indicated that they have not engaged with Traders, 36% (5)
indicated that they are in the process and 28% (4) indicated that they have considered this
requirement and are in the process of engaging with Traders. Thus, the conclusion is that at
the time of submissions of responses to the survey, that, minimal external Stakeholder
engagement had taken place by the Customs Authority. It may well be that Customs Leaders
are of the view that National Trade Authorities have the responsibility to engage with Traders.
However, numerous Customs measures such as legislative amendments and the like are
definitely within the direct realm of the Customs Authority and they need to sensitise and
engage with the Private Sector.
State Parties should acknowledge, through their Customs Authorities, that training and
sensitisation of Customs Officials on the AfCFTA at the National level should go in tandem
with relevant training and sensitisation of Stakeholders (clearing and forwarding agents,
manufacturers, Producers, importers, Exporters, and relevant government ministries,
departments, and agencies).
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However, a comparatively lower percentage (56%) of countries have conducted such
Stakeholder sensitisation compared to the percentage that have conducted sensitisation for
Customs (72%). Source: Extract from GFA report63
Therefore, the view is that Stakeholder sensitisation seems to have a lower priority in
Customs, though most of the respondents (63%) have indicated that they do not require AUC
support in carrying out such sensitisation. Our view is that it is incorrect to assume by such
Customs Authorities that they do not require AUC continued support, especially in this area.
Recommendations
This again points to concerns as to the readiness of Customs Authorities to enable Traders to
benefit from trading under the AfCFTA. The conclusion under this survey question is that
much effort, work, and planning are still required to be concluded in this area, bearing in mind
in terms of the RKC and WTO ATF, that Trade collaboration is key to Trade Facilitation. The
question resonates to an action plan addressed originally, as to the implementation plan of
action requirement, where 64% of State Parties who responded indicated a plan of partial
engagement during implementation.
In this report, is can be noted that 36% of customs Administrations in accordance with this
response, had only partially engaged Trade. It can be further pointed out that Annex 4 of the
Protocol on Trade deals specifically with Trade Facilitation and emphasises the need to
consult with the Private Sector.
State Parties should adopt a collaborative partnership approach64 for the purpose of
engagement, Capacity Building, training, and sensitisation on the AfCFTA, so that Customs,
relevant government agencies and Private Sector personnel, work together in the
development of curricula, preparation of training material, training of trainers and delivery of
training.
This is even recommended to be a recognised formal certification within the respective State
Parties NQA (National Qualification Authority) and to engage experts for this purpose of
attaining this highly strategic objective. Capacity Building is a cost, irrespective of delivery to
Public or Private sector.
With that conclusion and based on modernised Customs Authority collaboration with Trade,
why is it that we consider funding and conducting independent training initiatives? The WCO
SAFE Framework of Standards is an alternate Global instrument that clearly suggests such
type of collaboration to be led at the initiative of the Customs Authority.
63 Capacity Building for Customs Administrations for the African Continental Free Trade Area-REF (AUC/CFTA/STUDY
4.1.9/2020)
64 GFA survey Finding 3&11: State Parties acknowledge that training and sensitisation of Customs Officials on the AfCFTA
at the National level should go in tandem with relevant training and sensitisation of Stakeholders (clearing and
forwarding agents, manufacturers, Producers, importers, Exporters, and relevant government ministries, departments,
and agencies). However, a comparatively lower percentage (56%) of countries have conducted such Stakeholder
sensitisations compared to the percentage that have carried out sensitisation for Customs (72%). Therefore, Stakeholder
sensitisation seems to have a lower priority in Customs.
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Furthermore, it would encourage State Parties to conduct sensitisation to Trade, if
compulsory, reporting of such objectives is required in the Sub-Committee of Customs
Cooperation, Trade Facilitation, and Transit. The strategic continued guidance of AUC in
ensuring Capacity for all Stakeholders is certainly recommended.
Finally, elimination of duplication in resonation to Annex 4, and other Annexes, may be
engineered to avoid such, and will address the absences of such facilitation and cooperation
as may be found currently.
The AUC is thus requested to consider a strategy, which guides Customs Authorities towards
implementation of the additional Annexes, within the Protocol on Trade, as it has become
clear that the initial focus is currently mainly directed at Annex 2, dealing with the Rules of
Origin only.
The observation is thus that continued implementation will be required by Customs
Administrations who can be guided through the additional Annexes, towards attainment of
other Globally Customs-related Cooperation instruments, example:
The “Approved Exporter” can be accommodated within existing or future AEO Programmes.
The participation with the Private Sector thus far is concerning, considering this response
observation.
5.4 (a) Overlapping REC Memberships
Q 15.G7 Which Regional Trade Agreement is your country a
party to?
79 79 29 14
80 COMESA EAC TFT
70
60
50
40
30
20
10
0
SADC
Numerous overlapping REC Memberships are observed. As the REC’s are the foundation to
AfCFTA, an awareness of this is necessary for Customs Administrations.
Kenya, for example, indicated that they are a Member of COMESA and the EAC. Similarly,
most SADC countries are also Members of either COMESA, the EAC or the TFT.
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The extent to which the Rules of Origin under the various REC’s may differ, must be analysed,
and understood. It could be that where different rules apply, this may be confusing to issuing
Authorities and Traders alike.
Findings
Until the AfCFTA rules are finalised, (again under the interim provisions of Article 42), it must
be considered and pointed out that, when such Exporting countries certify or verify Rules of
Origin to countries in other REC’s, (if they have different rules), the more beneficial rule
should apply. However, the rule applicable in Trade within an existing REC must be applied
between such Member countries.
Recommendations
Capacity to understand and have the foundational knowledge for application of the final Rules
and interim Rules of Origin, and the communication channels subject to, and supporting
verification, is key to the success of the AfCFTA in the short-term, and long-term.
Leaders in Customs must take cognisance of the progress during implementation
developments. Whilst existing REC’s are building blocks to the AfCFTA, Customs Authorities
will face challenges in required competence for application of numerous Rules. This again,
points to Capacity Building Key outcomes and requirements.
5.4 (b)
Q 23.G9 (B) Has your Administration appointed mentors
to assist Operational Branch Leaders?
45 43
40 36 21
35
30 NO DON'T KNOW
25
20
15
10
5
0
YES
Initial support strategies to Customs Officers directly involved with Certification of Origin,
control, and allowing for preferences are crucial.
Customs Administrations must identify a champion who will oversee the successful
implementation of the Free Trade Agreement and take ownership thereof. This person must
be held accountable to ensure that the deliverables of the implementation project are met.
Such Leaders will require Capacity and the AUC is developing the Module as alerted.
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At Branch Office level, Customs Officers must be made aware of the implications of non-
compliance for the country as a whole, and for them to grasp the seriousness thereof. It is
therefore of utmost importance that continuous communication and training take place from
the onset. Leaders must appoint Mentors and Coaches at Middle Management and Branch
Levels to be instrumental in guidance of Operations, which, will deliver the capacity
compliances to achieve the AfCFTA implementation.
Findings
At the time the survey was conducted, with less than a month to go before the
implementation date, 36% of the respondents indicated that they have put the necessary plan
of action in place for coaching and mentoring towards successful implementation of
the AfCFTA, while 43% indicated “No” and 21% indicated that they do not know. This is
similarly also supported by GFA observations65. 64% in that survey thus have not considered
mentor and coaching initiatives.
Recommendations
There could be several reasons why countries would not undertake the
implementation process expeditiously. With the political signoff concluded, this should be a
formality. This could point to shortcomings as far as Capacity and resources are concerned.
Whatever the reason, it is crucial that AUC engagements be held with these countries to
find out the reasons and to provide support where necessary. The AUC module as developed
will be a significant tool to address implementation planning and conclusions. A planning
Team must be identified who will ensure and undertake all responsibilities towards
implementation, according to a strictly documented plan. Leaders will and should be selected
as guided in the Module and must be given, not only Technical Training, but also the skills to
address Change Management and perform mentoring and coaching.
5.4 (c)
Q 61.CL4. Has your Administration considered a
coaching and mentoring strategy to assist internally
with the implementation of AfCFTA?
70 64 29 7
60 NO NOT SURE
50
40
30
20
10
0
YES
65 GFA Finding 5: Twenty (20) of the respondents (62%) have designated a unit within the Customs Administration
responsible for coordinating implementation of the AfCFTA, while a high number of twelve (38%) do not have such a
unit or function. Administrations that do not have units designated to coordinate implementation of the AfCFTA run the
risk of conducting disjointed actions, with the added danger of duplication of resources and related inefficiencies.
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Coaching and mentoring programmes by Leaders, forms the basis on which knowledge and
experience can be shared. In this way, institutions retain the institutional knowledge and
experience which have been accumulated over the years at great costs.
Normally junior and senior staff are paired. This will, as a strategy, greatly assist, particularly
in the case of Free Trade arrangements, which have already been implemented, and where
similar agreements may be entered into, years down the road. It is therefore crucial to have
continuity in Capacity already attained.
Findings
In this regard 29% of respondents indicated that they do not have a coaching or mentoring
programme to assist with the implementation process, whereas 64% indicated that they do
have such a programme. 7% were unsure whether they have such a programme or not.
As an example, the responses to finding in Table 5.4(b) contradicts to an extent 5.4(c). The
AUC is recommended to ensure that there is definite awareness as to the benefits of Coaching
and Mentoring Programmes.
Recommendations
Various training institutions in a number of countries present such courses. It might be
considered to sponsor the costs for a number of such courses for those State Parties who do
not have such programmes. The AUC in collaboration with its Global Stakeholders will, as
mentioned, issue a Module covering scope, relevant for Leaders, to implement such
programmes in alliance to Capacity Building initiatives. The AUC Module will be key to the
focus of Management Capacity to address change and provides Mentoring and Coaching
Leadership skills.
5.5 Dependency on inconclusive negotiations and frameworks.
Q 10.G2 Is your Administration aware if your Trade
Authority, has submitted its final Schedule of tariff
Concessions required per Annex 1 of AfCFTA?
58
60
50
40
30 21 21
20
10
0 IN PROGRESS NOT COMPLETED
COMPLETE
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The Trade offer is central for a State Party to commence Trade under the AfCFTA. This
obligation needs to be finalised before the Agreement is submitted to
Parliament/Government for ratification. Once ratified and notified to the Secretariat, it forms
the basis on which preferential Tariff rates are determined. The Customs Authority cannot
implement without conclusion to this requirement in meeting the objectives of Annex 1 to
the Protocol on Trade.
Finding
At the time responses were received relating to whether the Trade offer was finalised,
ratified, and notified, 64% (9) of 14 countries66, indicated that this was still in process.
Subsequently, this has improved and indicates positive movement towards implementation
readiness. This finding, by majority, resonated to a finding in a related survey conducted by
GFA67.
This predominantly negative response at that juncture, could indicate that the offer is still
being finalised, the ratification process is underway, or the Secretariat had not been notified.
Nevertheless, this indicates in a substantial number of State Parties that the implementation
process had not started, despite the 1st of January 2021 implementation date.
The concern is that only State Parties which have implemented the Agreement are able to
Trade thereunder and accord preferences.
Recommendations
Trade Authorities must conclude and prepare Trade Offers after Consultations. For State
Parties in Customs Unions, this requires additional consultations. This offer will be broken
down per HS Line offer and in accordance with the agreed modalities.
NB!! The modalities68 are not contained within the agreement itself. Customs Leaders
must be provided or secure an update consistently on this status of final
submissions by National and Customs Union Authorities and/or from their Trade
Authorities.
The Secretariat, through the AUC, needs to engage with all State Parties in this regard and
inform other State Parties of the status of each country and its instruments. This obligation
and developing status will indicate when and which countries (State Parties) are ready to
implement and Trade under the AfCFTA Agreement.
66 It must however be noted that South Africa, who had at the time of completion of the survey indicated that they were
“in progress”, have subsequently completed their Schedule of Tariff Concessions and have thus fully implemented the
AfCFTA. They however are in current negotiations with SACU partners.
67 GFA report AUC/CFTA/STUDY No. 4.1.9 / 2020 - While most countries (22) that responded to the survey reported that
they have a National Implementation Strategy for the AfCFTA (69%) and a Customs corporate/strategic/business plan
(69%), only nine (9) of the countries (28%) have plans with measures for implementation of the relevant provisions of
the AfCFTA Agreement, its Protocols and Annexes.
68 State Parties must understand that various State Parties may have challenges to produce their offers of which same has
been addressed. As background to this compromise, it is to be noted that all State Parties are faced with a range of
variant vulnerabilities. The common challenge is to reduce Barriers to intra-African Trade so as to generate robust and
sustained growth that expands job creation to increase welfare and prosperity and eliminate poverty, for domestic and
continental stability. See Modality document provided in appendices of report please.
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The AUC should also guide State Parties as to the structure in the modalities to correctly
interpret same. (The modality document is provided in the report for ease of reference). The
status must be consistently visible to all State Parties and the AUC is recommended to provide
such updated information daily on its information portals.
At this stage it is strategically necessary, as it would apply to Trade conducted outside of the
current REC’s, for trading, which had not been undertaken before, such as potentially say
Egypt to RSA, to take place.
Both those Countries had provided their Schedule of Tariff Concessions and have fully
implemented the AfCFTA. However even these concessions have been heard to be under
review, as both State Parties are members of Customs Unions and need to relay on the Union
members to complete their implementation process.
The Customs Authority is reliant on the responsible National Authority, in finalising the
process of Tariff Concessions before they can start with, and conclude, with full
implementation. Beneficial Provisions relating to retrospective Certificates being issued, may
be pursued by Traders, relating to refunds in Duties, if applicable.
As such, Customs and Traders alike should be aware of the dates of entry into force of
instruments deposited to consider trading compliances and dates governing receipt of
benefits in preferences. The AUC portal can provide Trade Statistics, which can also be
utilised by relevant Authorities who are still in consideration and due diligence of their offers.
The latest information available on the deposit of instruments of ratification is reflected
elsewhere in the report. The deposit of Tariff Concessions, however, is to be considered
crucial and the absence thereof, will inhibit prospective Traders from considering trading
opportunities on the continent. The State of play is ever changing as related to the deposit
of instruments for the AfCFTA. Customs Authorities and Traders are cautioned to keep a
constant vigil on developments. As mentioned, a consideration to bear in mind is the joint
Trade Offers of those State Parties within Customs Unions and the individual members
ratifications, accessions, and Trade offer submissions.
5.6(a) AfCFTA General Obligations
Q 24.G10 (A) Has your Customs Administration
amended your existing exporter registration documents
to provide for Exporters to the AfCFTA States?
57
60
50
36
40
30
20
7
10
0 NO IN PROGRESS
YES
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Q 25.G10 (B) Will all existing registered Exporters, be
required to amend their registration documents, as are
currently lodged with your Customs Authority?
50 42
29
40
29 NO IN PROGRESS
30
20
10
0
YES
As the majority responded to the Survey that the Customs Authority will be the designated
Authority, Annex 2 obligations will need to be addressed and identified by such
Administrations. Objectives of the AfCFTA will serve Exporters and Importers whose trading
seeks to secure and receive preferences. Most Customs Administrations require that
Exporters, through a predetermined process must register with them and receive an Exporter
unique code number.
The AfCFTA goes further, in providing for “Approved Exporters” registration, whose special
benefit would be, to endorse their own commercial invoices and they would not have to
secure a CoO for each shipment exported.
Two separate questions were raised in the survey regarding Exporter registration, as is
relevant under the AfCFTA. Firstly, it was asked whether it will be a requirement to amend
Exporter registration documents for the purposes of the AfCFTA and secondly, if so, whether
such registration documents have been amended to allow Exporters to make the necessary
application for registration as an AfCFTA Exporter.
It is a requirement under SACU legislation, that Exporters be registered for each
agreement under which they conduct Trade, and to make application to have their
registration detail amended. This would apply to all Trade arrangements to which SACU State
Parties are a Party. The reasons why Exporter registration is specifically required are in the
main, to have a complete profile of Traders under the agreements, as well as to control the
issue of Certificates of Origin. In the event of the Exporter not being the Supplier or the
Producer, it will be noted that in the Rules published by South Africa, that it is also a
requirement, for such Suppliers/Producers who issue Origin Declarations, to register with the
SARS Customs Authority. Similar provisions should apply to working or processing done under
“cumulation” in accordance with the Appendices in Annex 2.
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Findings
Of concern is that about 42% of respondents indicated that it will not be a requirement
in their country, for an Exporter to be registered for the purposes of the AfCFTA. This begs
the question of how they would they monitor Exporter Trade under the Agreement, the issue
of Certificates of Origin and the granting of preferences? Some countries even provided
conflicting information to these two questions.
Recommendations
The only solution will be to establish clear Customs Guidelines, which Exporters, must adhere
to.
This again, points to a Leadership plan which considers all risks and Barriers that could arise
in the system. If the Party, wishing to conduct Trade, encounters problems and uncertainties
from the outset, they will be discouraged from trading, which will neutralise the objectives of
the AfCFTA and cause detrimental impacts to the Nation’s Export Economy. The AUC Module
has thus been designed to address the pertinent detail of Customs Compliances under Annex
2. All Customs Administrations must ensure that Traders are facilitated in these compliances.
5.6 (b) Q 26.G11. Regarding Article 2(b) of Annex 3, is your
Administration geared to fully provide, and meet all the
requirements, for Customs Cooperation and Mutual
Administrative Assistance?
64 36
70 IN PROGRESS
60
50
40
30
20
10
0
YES
Customs cooperation and Mutual Administrative Assistance between State Parties in
accordance with Annex 3 of the AfCFTA, should be seen as an added incentive and
opportunity to countries who have not yet concluded such bilateral arrangements with fellow
State Parties.
As this is normally a standard provision in the REC’s Free Trade Agreements, the provisions in
Annex 3 will now apply across all the 8 REC’s. State Parties need to be aware of the
notification which must be made to the Secretariat in this regard.
Besides cooperation in matters of Origin which are covered in Annex 2, Annex 3 provides for
a magnitude of areas for cooperation.
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Think of “Customs-to-Customs” engagement opportunities in the area of the
AEO programmes, the SAFE Framework of Standards, cooperation in the areas of training,
legal disputes, Trade security, etc.
Findings
In general, the response to this question was encouraging as 64% of respondents indicated
that they are geared to put the necessary arrangements in place and the other 36% indicated
that they are in the process of putting the arrangements in place.
Recommendations
Synergy, and awareness thereof, in conformance to other Global Standards, Conventions, and
Instruments, can now also be pursued under the terms of the AfCFTA for resultant continental
cooperation. Customs and Trade Leaders need to appreciate and be aware to avoid
duplication and save on costs for Traders allied thereto. By way of example, even Technical
and judicial cooperation may be advanced under this Annex of the Protocol on Trade.
A further example is exchange of Advanced Information under Article 7 of Annex 3. Leaders
must fully interrogate the mutual recognition cooperation initiatives under this Annex which,
in turn, may also achieve the objectives of Trade Facilitation under Annex 4 and facilitate
Transit.
5.6 (c)
Q 28.G13. Has your Administration provided public "Enquiry
Points" to answer enquiries on AfCFTA State Parties and
Traders?
57
60
43
50
40
30
20
10
0 NO
YES
The Protocol on Trade under the AfCFTA provides for the “Liberalisation of Trade” in goods
between State Parties from Customs Duties, by way of preferences afforded. In accordance
with the Annexes, it is incumbent upon the Customs Administration to put
the necessary measures in place which will allow Traders to engage in the objectives of the
agreement.
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Trader involvement and awareness, engagement, and cooperation, are therefore central as
to whether the objectives of the agreement will be achieved or not69. Without them the
agreement is meaningless. It is crucial that Stakeholder engagements be held on a regular
basis to make Traders aware of the benefits to be attained and where they could source
information in this regard. As recommended before, joint sessions are to be held by the Trade
Authorities and Customs with Traders.
Findings
A supporting Cross-Functional Outcome question was also posed in this regard. Only,
increased Trade, as undertaken, will reflect the successful development towards the goals of
the AfCFTA. 57% of respondents to this question indicated that they have not as yet engaged
with their Traders as to provision of information portals. No indication was received at what
stage they will start with such Stakeholder engagements. 43% indicated that they have
engaged with Traders in provision of information points.
Thus, a similar Cross-Functional question yielded the same observations and concerns of lack
of Trader engagement. Implementation will never be considered complete unless the Traders
have been engaged comprehensively.
This yet again points to Capacity lacking in “Customs-to-Business” awareness.
Recommendations
Capacity for interpretation and careful examination of the Agreement to identify actual
Customs Authority priorities concerning implementation is key. This matter would need to
be explored further, so as to find the reasons for the lack of initiatives undertaken in this
regard.
The AUC and Authorities alike should prioritise this area as relevant to access points for
information impartment to Traders. The study did not extend, to reasoning of limited
Stakeholder engagement. However, the conclusion is that this area requires attention at the
highest levels of AUC.
69 The WTO ATF, Article 1 deals with Publication of information and transparency. As far as internet information it further
states: 2.1 Each Member shall make available, and update to the extent possible and as appropriate, the following
through the internet:
(a) a description1 of its procedures for importation, exportation, and Transit, including procedures for appeal or review,
which informs governments, Traders, and other interested Parties of the practical steps needed for importation,
exportation, and Transit.
(b) the forms and documents required for importation into, exportation from, or Transit through the territory of that
Member; (c) contact information on its enquiry point(s).
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5.6 (d)
Q 33.DEF1. Has your Trade Authority decided who will be
the “Designated Competent Authority” to issue Certificates
of Origin?
79
80
70
60
50
40
30
20 14
7
10
0 NO YES OTHER GOV AUTH
YES CUSTOMS
It is important for Exporters to know where to secure compliancy details, location of
Certificates, process of compliance, etc., for ultimate certification, as well as where they can
obtain information pertaining to trade under the AfCFTA. As the understanding of Rules of
Origin application also includes an in-depth knowledge of the classification of goods, Customs
Valuation, and Customs Procedures, it is preferable that the Customs Administration be the
Competent Authority to deal with such matters. On the question whether their Competent
Authority would be any other than their Customs Authority, one respondent indicated that
their Competent Authority will not be their Customs Authority, whereas two respondents
indicate that they have not decided on the matter.
Findings
79% respondents indicated that the Customs Authority will be designated and 7% indicated
another Government Authority. 14% responses “NO” to the question. Clearly the latter two
did not fully comprehend the question, however a concern is raised regarding the country
whose Competent Authority will possibly not be their Customs Authority.
This raises the question whether any other such Authority will have the Capacity to implement
the Agreement, given the requirement of these special and Technical Customs skills.
Recommendations
In separate Global and Continental studies, it is clear that Capacity, not only in Origin
determination, is required to support the successful implementation and verification of
compliances, driven under the AfCFTA. Capacity and the lack thereof, has again emerged as
one of the key and fundamental risks to the potential unsuccessful implementation of the
AfCFTA by Customs Authorities. The Leadership plan should consider internal Capacity and
Trade Stakeholder Capacity jointly, to ensure success and imparting knowledge,
comprehension, and application. The Authority should identify competent globally
accredited Training providers to impart this knowledge.
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As the foundations of AfCFTA is based on the existing REC’s, the positive verification is that
for most, the role and responsibilities of the designated Authority is sufficiently in place under
the Customs Administration.
5.6 (e)
Q 38.OC3. Will your Organisation be in a position to issue
a “New Movement Certificate” for goods moving in and
out of a designated type Special Economic Zone?
43 43
45 14
40 NO NOT PREPARED
35
30
25
20
15
10
5
0
YES
The issue of goods moving in and out of special economic or free zones are covered and
addressed in Article 9 (the text of which has not been approved) to Annex 2. It should be
noted that the text of Article 9 is in italics. In addition, Article 42(1)(d) states that the drafting
of Regulation for this purpose is still outstanding. This clearly points to unfinished business,
relevant to the Agreement, for which certification of Origin in Trade, through making use of
special economic arrangements/zones will not be taking place as yet. For this purpose, State
Parties would need to continue trading under the provision of the REC’s.
Findings
Although 43% of respondents indicated that they are in a position to issue Certificates of
Origin for such specific Trade, it must be brought to the attention of all members, that the
exact position, as per current status is observed is that, due to the fact that many State Parties
accommodate and have established such Zones, it is highly likely that manufactured products
from such, will be Traded under the AfCFTA.
Thus, SEZ Trade must be accommodated due to the industrialisation solutions as invested on
the continent. As far as the 43% of respondents who indicated a “No”, and the 43% who
indicated that are not prepared, it could be that they either do not have such
arrangements/zones, or that they may not be geared to certify Origin for Trade emanating
from such Zones for the purposes of AfCFTA.
Recommendations
Whatever the situation and status to the respective nations, it is recommended that this
matter be identified as crucial to implementation and be pursued and clarified.
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It is important to bear in mind, that the Origin determination criteria, as applicable to Trade
in general, will also apply to Special Economic arrangements/Zones and products emanating
therefrom. The Rules of “sufficiently worked”, or “processed”, as per Article 5, will be of
distinct relevance. State Parties who seek Zone Investors as sourced globally, will need their
Customs Administrations to understand, analyse, and be compliant with the future Rules
concluded under AfCFTA, with specific reference to “products manufactured” in such Zones.
5.6 (f)
Q 39.OC4. Has your Administration considered
prevention measures and control of products, via third
party AfCFTA countries, or originating from a non-
African country, from misusing the AfCFTA, to evade
Duties (Risk targeting)?
86
90
80
70
60
50
40
30
20 7 7
10
0 NO DON'T KNOW
YES
Findings
86% of respondents indicated that they have indeed considered such risk-based
interventions. 7% of respondents indicated that they have not considered any preventative
measures and 7% of respondents indicated that they are not aware of such risk-based
interventions.
Full implementation compliance will not be attained, if risk, misuse, or revenue evasion,
becomes predominant.
Recommendations
It is recommended that the AUC countries, address these strategic risk interventions, and to
engage with a view to provision of assistance in this regard. Implementation Leaders must
identify risk management key criteria for Customs control, which will address contraventions.
Risk Matrix development will also be an ongoing Leadership focus area. The opportunity thus
for mutual cooperation in terms of Annex 3 becomes relevant.
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5.6 (g)
Q 40.OC5. Has your Administration provided for penalty
provisions in Customs legislation to prevent the abuse of
Concessions under AfCFTA?
86 7 7
90 NO DON'T KNOW
80
70
60
50
40
30
20
10
0
YES
The reason Customs Administrations are tasked to ensure compliance with requirements
under Free Trade Agreements, in the main, is to provide for sanctions in the event of
contraventions. Penal provision in Customs legislation provides a necessary deterrent in
ensuring compliance in this regard.
Article 37 of Annex 2 makes it obligatory for State Parties to provide for penalties through
National legislation.
Findings
86%, have indicated that they have provided for penal provision in Customs legislation,
whereas 7% has indicated that they have not provided for penalties in this regard and 7% has
indicated that they do not know of such provisions. 70
Recommendations
It could be that in the latter two cases that the question was not properly understood,
however, it is recommended that the two countries be engaged i
n the matter.
It is likely that prevailing Customs legislation will address contraventions, however, an in-
depth understanding of potential loopholes evident from a diligent study, of all the Annexes
of the AfCFTA need to be conducted, to establish a risk matrix with priority criteria.
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5.6 (h) Q 43.POO2. Has your Administration addressed the
prescribed specifications for Certificates of Origin and the
80
70 printing and availability thereof.
60 71
50
40 29
30
20 YES NO
10
0
Customs interventions in ensuring compliance in accordance with the WCO RKC, and the WTO
ATF, are recommended to be conducted according to risk management strategies.
However, additional monitoring measures, as a norm, is required to ensure compliance with
Origin criteria, under FTAs. Although inputs from fellow State Parties in the FTA are
encouraged, the risk of inputs from third countries would or could be counterproductive in
achieving the objectives of the FTA.
It is therefore the responsibility of all Administrations to be vigilant in establishing the Origin
of goods and Origin compliant inputs. As an example, documentation provided by Suppliers
or Producers supporting CoO Applications, may need to be verified, when considering
compliance with Origin criteria.
Article 17 (1) (a) provides for a Certificate of Origin, upon submission in Import
Declarations, to be in the format of Appendix I to Annex 2. Appendix I, which provides
detailed notes for completing each box on the prescribed Certificate of Origin, as well as the
two parts of the Certificate, i.e., the front and the back of the Certificate.
Box 12 provides for Origin criteria codes.
Article 18 provides that such Certificate of Origin, may be presented to the Customs Authority
in any of the official languages of the AUC, or to include a translation thereof. Furthermore,
Article 33 provides for the handling of Certificates of Origin in the case of discrepancies and
formal errors.
The specifications for the Certificate, as well as who will be responsible to provide same, must
be verified. In the case of South Africa, pre-printed and numbered Certificates are provided
by Customs to Exporters in accordance with rules published in this regard.
Blank Certificates of Origin are strictly controlled and accounted for in terms of the Rules
drafted to support the implementing legislation.
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Findings
29% of respondents indicated that they have addressed the prescribed specifications and 7
1% of respondents have indicated that they have not addressed the specification, printing,
and availability of Certificates. AfCFTA Certificates of Origin are a requirement, if Trade under
the agreement is to take place across the REC’s. In the absence thereof, preferential
Trade will continue as at present, however only within the REC’ s.
Recommendations
It is recommended that all Customs Administrations be engaged in this regard. This
requirement must be reflected in the priority implementation matrix for Leaders.
Customs Leaders are cautioned to review the prescribed documentary formats in all
Appendices to the respective Annexes, as and where applicable.
5.6 (i)
Q 47.POO6. Has your Authority provided specimen stamps
and signatures to the AfCFTA Secretariat?
90 86
80 NO
70
60
50
40
30 14
20
10
0
YES
Article 34(2) to Annex 2, provides that in order to facilitate verification of Origin by Export
countries, that the designated Competent Authority shall, through the Secretariat, exchange
addresses, specimen stamps and signatures used by their offices for the issuance of
Certificates of Origin. This Secretariat will serve as the link through which Customs
Administrations communicate, for the purposes of Trade, under the AfCFTA.
Findings
At the time of the survey only 14% of respondents have provided the necessary information
to the Secretariat while 86% have not provided same. State Parties should be encouraged to
complete these formalities as soon as possible. Linked to the notification obligation to the
Secretariat, will be the readiness of Competent Authorities in Export countries, to assist with
the verification of Origin compliance.
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It is incumbent upon Competent Authorities to ensure that the necessary arrangements and
skills are in place to be of assistance as is required in terms of Annex 2. This should be seen as
an important link in the line of defence against circumvention of Origin criteria.
Recommendations
From the above responses it is clear that there is room for priority conclusions in this
area. Although this may be considered a simple formality to implement the AfCFTA, it is clear
that in the absence thereof Trade will be negatively impacted.
5.6 (j)
Question 59.Cl2 In your opinion, what criteria, in terms of "Transit" control, does your
Administration consider most important, in order of priority, to implement the AfCFTA?
Q59CL2:(A) Sealing Q59CL2:(B) Trade
UCR Facilitation
10% 10% 11% 33%
10% 11%
30% 22%
40% 11%
11%
Q59CL2:(C) Security Q59CL2:(D) Mutual
Cover Cooperation
10% 10% 20%
20% 20%
30% 20% 20%
20% 20%
10%
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Q59CL2:(E) Single Q59CL2:(F)
Window Reduction in Costs
11% 11% 25% 12%
11%
13% 37%
11% 13%
56%
Findings
The respective graphic information above, is presented according to priority matrix criteria in
transit control, as an aggregate of collective responses. Single Window and Trade Facilitation
are predominant concern areas cited, which is encouraging.
Recommendations
The AUC is to be aware and to bear these responses in mind, when further follow-up
engagements are conducted for attaining the provisions of Annex 8. The ROCB will clearly be
a major driver to achieve Transit Facilitation.
5.6 (k)
Q 62.J1 Please use the space below, to indicate any other
Customs-related or Capacity Building requirements or additional
challenges for implementation of the AfCFTA, that may not have
been included in the questions above.
30 29
25
20 14
15 14
10 3
7
LEGAL PROCESS
5 DELAYS
0 TECHNICAL NO ANSWER TOPIC NOT BEEN TUTORIAL 1 1
OTHER COST
ASSISTANCE PROVIDED PLANNED FOR - MANAGEMENT
DIFFICULT TO CAPACITY
MAP PRIORITIES BUILDING
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This was the last question of the survey. The State Parties were asked about other Customs
or Capacity requirements or challenges they could identify as potential barriers in
the implementation of the AfCFTA.
Recommendations
The solution mooted will be to escalate these findings to a higher level of AUC, in the
institutional framework, for them to provide clear directives for the implementation of
the AfCFTA. The primary areas of challenge thus reflected were: Technical Assistance,
Implementation Planning, Priorities, and Leadership Capacity, whilst the Legal Arena of
Control Frameworks was prevalent. The responses clearly articulated a divergence of areas
of implementation challenges across the scope of responses. Apart from those that have fully
implemented all criteria to perform under the AfCFTA, it was clear that additional and diverse
challenges were, and will continue to be experienced, although varied in nature, on a Country-
to-Country basis.71
6. Concluding Recommendations
The AUC, in cooperation with GIZ have sought to ensure that a comprehensive study would
be conducted to the benefit of African Customs Administration Leaders, to equip them to
identify needs and challenges in the implementation of the AfCFTA Agreement.
The final feedback engagement webinar held on 8th March 2021, was attended by various
Heads of Customs and Senior Officers providing valuable information to support the findings
reflected.
The analysis of key questions and recommendations, previously addressed in this report
should be considered by Customs Leaders when striving for successful AfCFTA
implementation, some of which are re-emphasised hereunder:
1. A priority implementation compliance and obligation check list with performance
management targets and measurement criteria must be compiled, to distribute
urgently to all national customs leaders.
2. The AUC should Implement a Capacity Building programme in tandem with the various
ROCB’s, which should be made available to both Public and Private Sector in all State
Parties. The GFA report alluded to, is of high relevance towards such solutions and
ongoing sustainability.
71 From the GFA report, which focused primarily on Capacity Building, the following finding is a critical relevance.
Finding 10: The State Parties expressed an overwhelming need for technical assistance and training on the AfCFTA Rules
of Origin (Annex 2 of the Protocol of Trade in Goods) using a Training of Trainers Approach.
Recommendation 10: Request AUC to plan training for customs Officials and Stakeholders on the AfCFTA Rules of Origin,
specifically:
• Develop a training curriculum.
• Prepare training materials, including a Manual on AfCFTA Rules of Origin.
• Training of Trainers.
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3. It should be considered by the AUC, Secretariat and national administrations, that such
a Capacity programme is to be accredited by the NQA72 (National Qualifications
Authority) of each Member State, which will serve to achieve mutually recognised
professional competency in implementation, technical command of Principles of Origin,
and the wider scope of Annexes, thereby meeting modernised Global Standards for
Customs Administrations and others, in imparting recognised qualifications to all
receiving such capacity. Same should be WCO certified via cooperation with the
relevant ROCB. Experts in drafting qualifications to be identified.
4. The AUC in cooperation with relevant organisations, must urge that all outstanding
negotiations be concluded as soon as possible and ensure visibility to all Stakeholders.
5. Traders and all relevant Private Sector Stakeholders must be engaged according to AUC
and ROCB programmes. It is recommended that a further research study is conducted
into the readiness and capacity of the Private Sector itself in its implementation
challenges for the AfCFTA.
6. Although the Secretariat73 is in process to undertake its mandate in accordance with
the provisions of relevant Articles in the AfCFTA Agreement, it is apparent that it too
may encounter further delays.
7. Within the recommendations provided, current AUC progress achieved must not be
reengineered, and it must be appreciated that solutions in the customs context, present
an opportunity to achieve Global modernised administrations through full
implementation of all the AfCFTA provisions and obligations. Thus, from a point of view
of continued AUC involvement in terms of Continental Customs solutions, all Parties are
urged to approach these objectives and recommendations from a wider all-inclusive
perspective.
8. Much work has already been done through the AUC and relevant Sub-Committee’s
which must be recognised and sustained. Continued cooperation between the two
organisations is imperative.
9. Although full and comprehensive AfCFTA implementation presents wide and diverse
challenges, it must not under any circumstances be allowed to fail. This is the time for
African leaders to leave a legacy that could position Africa as an economically
sustainable CFTA for all that would reap benefits in the future.
72 An authority that implements a national quality assurance system to ensure that education and training is delivered
according to the standards which are formally recognised.
73 Subsequent to the Assembly meeting 5th December 2020, one of the noted the outcomes of the 3rd Meeting of the
Council of Ministers was to transfer the coordination of the AfCFTA negotiations from the AU Commission to the AfCFTA
Secretariat. The December Decision of the AU Assembly takes matters further. This calls for the following observations:
1. The Secretariat is a permanent AfCFTA institution and has been designed to be more than an administrative centre.
2. The AfCFTA Secretariat needs the necessary resources and mandate for implementing a vast agenda; from developing
technical capacity within the State Parties, the coordination of the activities of the technical bodies to implement the
Protocols and Annexes, to blending the RECs and other existing African trading arrangements into one continental Free
Trade Area.
3. The Secretariat will also play a role in future AfCFTA negotiations. https://www.tralac.org/blog/article/15086-the-
afcfta-secretariat-is-the-action-now-in-accra.html
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10. E-Commerce, digitisation, and enhanced technology solutions must be foundational to
implementation methodologies employed, even to the extent of a uniform Continental
Customs Declaration e-Form.
The complexity in the changing landscape and inconclusive items as identified and relevant
to Article 42, Transitional Arrangements, (Annex 2, Protocol on Trade), may off course
represent potential confusion and discouragement for the Private Sector Traders74. It must
be appreciated that, without them, the AfCFTA is meaningless.
In the perspective of the great Pan-Africanist, Dr. Kwame Nkrumah, “It is clear that we must
find an African solution to Africa’s problems, and that this can only be found in African unity.
Divided, we are weak; united, Africa could become one of the greatest forces for good in the
world.”
Overview of Challenges
74 Such Stakeholders are already looking forward to the future of E-Commerce, Single Window and Digitisation, requiring
a wide-angle lens of implementation focus and consideration to Trade, in which approach the Customs Authority
according to the WCO Economic Competitivity Package (ECP), can foster a climate of prosperity and growth.
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7. Conclusion
The study reveals that there is a vast focus Continentally and Globally on the success of the
AfCFTA. The advance trajectory to bring professional awareness and competency for
successful implementation as conducted by the AUC, ahead of the establishment of the
Secretariat, is highly complimented.
Unfortunately, Trade has not flourished since the commencement date, however if this
current momentum can be sustained through ongoing Customs compliances in
implementation of the Customs-related provisions, then clearly Customs Authorities will be
ready for the expected expansion of Trade under the AfCFTA. This report does not intend to
replace such additional and valuable prior initiatives and research studies, but rather to
compliment same with specific focus on the needs and challenges of Customs
Administrations.
Such Administrations are encouraged to review, this report and the Leadership
implementation Modul as developed. The responses, according to the Survey, assisted to
draw conclusions which reflect six principal areas amongst others, identified as inhibitors to
implementation, which are directly and indirectly under the control of Customs
Administrations:
1. Lack of Implementation Planning.
2. Capacity Building.
3. Lack of Key Stakeholder and Trader Engagements.
4. Leadership Capacity.75
5. Dependency of administrations and traders on inconclusive negotiations and
submissions.
6. Identification, interpretation of customs related AfCFTA general and specific
Obligations.
Obviously, each State Party’s Customs Authority, as evidenced, do have diverse and alternate
challenges, which are also addressed elsewhere in the report.
However, for the main collective, these mentioned above, are the concerning six areas of
focus76. It must be appreciated that, aside from the vast array of incomplete aspects (ongoing
negotiations, meetings and other)77, relevant to the Agreement components itself, that there
75 These concern areas could be listed in alternate priority order, subject to country specific examination and circumstances.
In all however, Leadership capacity is key. The WCO PICARD Standards clearly reflect the requirement of Customs
strategic Leaders to be cognizant of Micro and Marco economic policy and government compliances in meeting
International agreements.
76 Additional obvious considerations are to strengthen the PCA (Post Clearance Audit) and Risk Management functions and
the promotion of integrity in Customs.
77 As communicated by South African Revenue Services (SARS), according to AfCFTA Secretariat revised work Programme,
the following events are still in process. The fourth meeting of the Sub-Committee Trade Facilitation, Customs and Transit
will be held in March 2021. Purpose, to finalise Customs documentations and re-confirm readiness for trading. The first
meeting of the Sub-Committee on Rules of Origin will be held from 29 March to 2 April 2021. Purpose, to continue
negotiations on outstanding issues on Rules of Origin. The third meeting of the Directors-General/Heads of Customs
Authorities will be held from 31 May to 01 June 2021 to consider all documents for trading. The fifth meeting of the
Council of Ministers will be held from 07 – 08 June 2021 to approve final documents for submission to Extraordinary
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