RCTG-Carnet to reduce cost of doing business for traders

In an effort to spur intra-regional trade and cooperation, the Malawi Revenue Authority (MRA) recently organized a meeting with officials from the Common Market for East and Southern Africa (COMESA) at Msonkho House in Blantyre.
The objective of the meeting was to develop an action plan for the implementation of the Regional Customs Transit Guarantee (RCTG-Carnet) with focus on Tanzania as one of Malawi’s trading partners.

The RCTG Scheme was developed to reduce costs by eliminating the requirement to raise bonds (Customs transit documents) at each border crossing point. This was a follow up meeting to the RCTG Agreement signed by the Heads of State and Government of the Preferential Trade Area (PTA), now COMESA, which was held in Mbabane, Swaziland, in 1990, to which Malawi is party.

During its initial roll out, the RCTG-CARNET faced challenges as two of Malawi’s transit countries, Mozambique and Tanzania which are not members of COMESA, could not embrace the scheme. However, following Tanzania’s agreement to participate in the implementation of the scheme in 2015, the system is now fully operational hence, the meeting.

The RCTG-CARNET is a three-party contract to be used between Principals (importers, exporters, transit operators, freight forwarders and carriers), Customs and Insurance companies. Opening the meeting, the Commissioner Customs & Excise, Mr. Fatch Valeta, said that MRA was ready to implement the RCTG-Carnet as the facility will curtail waiting times.

This is because traders will no longer have to get multiple bonds at every border crossing. He added that security of goods will also be enhanced as the Carnet can be verified any time since it is web based. “In short,’’ he said, “the system will reduce the cost of doing business in Malawi and correspondingly improve on the rank of doing business in the world”.

The meeting drew participants from MRA, Clearing and Forwarding Agents Association of Malawi (CAFAAM) and Indigenous Customs Clearing and Forwarding Association (ICCAFA), the insurance industry and two facilitators from COMESA namely Chris Hakiza and Berlane Giday. The RCTG-Carnet is expected to roll out by January 2017.

VALETA: The system will reduce cost of doing business
BY FUNSANI JOHN SCANDER