Zambia guards against goods in transit fraud

ZAMBIA is developing guidelines that will address fundamental causes of inefficiency along transit routes because its geographical area in Africa exposes the country to high risks of transportation fraud, the Zambia Revenue Authority (ZRA) has announced.

ZRA C       commissioner General Kingsley Chanda said high risks of transportation fraud was a threat to efficient collection of the much needed revenue by the Government.

Mr Chanda said the presence of active trade corridors in the region placed a huge responsibility on Zambia to ensure that trade was efficiently facilitated along the transit routes for economic benefits of the destination countries.

He was speaking in a speech read on his behalf by ZRA commission customs, Dingani Banda, at the World Customs Organisation Transit (WCOT) guidelines workshop in Lusaka.

Mr Chanda said it was important for Zambia to focus on developing guidelines that would address the fundamental causes of inefficiency along transit routes while mitigating risks to Government revenue.

“This geographical phenomenon also exposes Zambia to a very high risk of transit fraud which is prevalent in this region and thus proving to be a threat to the much needed revenue collection by Government,” Mr Chanda said.

He said while the primary focus was predominantly on tracking the movement of goods from one customs administration to another, the associated data on goods submitted along the transit routes was not efficiently shared but remained static in each country.

“The use of Information and Communication Technologies (ICTs) such as the Electronic Cargo Tracking System (ECTS) in my view must be a fundamental pillar to complement efficient facilitation of transits,” he said.

And WCOT deputy director (capacity building) Brenda Mundia observed that transits for landlocked developing countries such as Zambia were due to inefficiency of transit systems.

Ms Mundia said it was important to put in place a well-designed guaranteed system that covered payment of import duties, taxes and other charges.

“A well-functioning and ethical customs is essential to the smooth operation of an effective transit regime,” she said.

And senior programme officer for the Least Developed, Landlocked Developing Countries, Gladys Mutangadura, said an effective implementation of the transit guidelines would help to achieve inclusive and sustained economic growth.

She said landlocked developing countries could be transformed into land-linked countries with concrete and enhanced partnerships.