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EAC calls for AI in customs to boost trade, tackle illicit acts

EAC Secretary-General Veronica Nduva delivers remarks during the International Customs Day at the EAC’s headquarters in Arusha on January 27, 2025. PHOTO | COURTESY


What you need to know:

  • She pointed to the Customs Union, a cornerstone of EAC integration, as essential in reducing trade barriers and strengthening economic ties among Partner States.

Dar es Salaam. The East African Community (EAC) has urged customs authorities across the region to adopt advanced technologies, including artificial intelligence (AI), to modernise procedures, enhance efficiency, and combat illicit trade.

EAC Secretary-General Veronica Nduva made the call on Monday at the community’s Arusha headquarters during her speech to mark International Customs Day.

The event featured virtual addresses from World Customs Organization Secretary-General Dan Saunders, and UN Conference on Trade and Development economic affairs officer Celine Bacrot.

The ceremony was attended by key figures, including the EAC Deputy Secretary-General for Customs, Trade, and Monetary Affairs, Ms Annette Ssemumwemba, Director of Customs, Ms Flavia Busingye, and representatives from partner organisations.

Ms Nduva emphasised the need for simplifying customs processes to make them more accessible to the public and stakeholders. She highlighted that integration efforts should focus on grassroots communities, ensuring they are well informed and engaged.

“Customs procedures must be clarified and explained simply. Customs officers should raise awareness about how the system works,” said Ms Nduva.

“The role of Customs has expanded – they are now key facilitators of trade and policy, not just guardians of security and revenue,” she added.

The Secretary-General also noted that the mandate of customs officers now includes raising public awareness, building capacity, and fostering cooperation across stakeholders.

She pointed to the Customs Union, a cornerstone of EAC integration, as essential in reducing trade barriers and strengthening economic ties among Partner States.

“The Customs Union’s integration efforts have delivered tangible benefits. Eliminating intra-regional tariff barriers has boosted trade and strengthened economic relations,” stated Ms Nduva.

She also noted substantial growth in trade, particularly in agricultural goods, manufactured products, and petroleum.

“In 2023, EAC’s total trade with the outside world reached $80.6 billion, up from $78.7 billion in 2022,” she said, adding that Foreign Direct Investment (FDI) increased from $3.7 billion in 2013 to $12.9 billion in 2021.

These figures, she said, reflected growing confidence in the region’s trade systems.

Ms Nduva further highlighted the importance of the Common External Tariff (CET) in regulating imports and protecting local industries, as well as the Simplified Trade Regime (STR), which facilitates procedures for small-scale traders.

Under the STR, goods valued below $2,000 can now be cleared efficiently with support from customs officers at border posts.

“The EAC has also introduced electronic cargo tracking systems (RECTS) and a Single Customs Territory (SCT) to reduce smuggling and increase tax revenue,” she added.

The region is also working to eliminate Non-Tariff Barriers (NTBs) that have traditionally hindered trade, with an online NTB Monitoring Mechanism now in place to help resolve trade-related challenges.

However, the Federation of East African Freight Forwarders Associations President, Mr Charles Mwebembezi, acknowledged the region’s progress but called for ongoing audits of the customs system.

He also called for further simplification of procedures, reduction of delays, and the elimination of corruption to enhance cross-border trade efficiency.

The Senior Advisor for Trade and Infrastructure at the Tony Blair Institute, Mr Alban Odhiambo, expressed concerns over continued congestion and delays at border posts despite the adoption of new technologies.

He stressed the need for a change in mindset to fully harness the potential of these technologies.