The Influence of Customs Valuation Procedures on Trade Facilitation within Cargo Sheds at Jomo Kenyatta International Airport, Kenya

Abstract

KRA has been missing targets before the 2020/2021 Financial year, which saw KRA surpass the target after 14 years. Customs administrations find themselves increasingly under pressure from national governments and international organizations to facilitate the clearance of legitimate passengers and cargo. Therefore, this study sought to determine the influence of customs valuation procedures on trade facilitation within cargo sheds at Jomo Kenyatta International Airport, Kenya. The theory that guided this study was the new trade Theory and trade facilitation theory. The study adopts an explanatory research design. A population of 366 customs officers and clearing agents was used, out of which a sample of 191 respondents was selected by using the Yamani formula. The study used a primary data method of collection method by using structured questionnaires. Data was analyzed using descriptive statistics and inferential statistics by use of SPSS and presented in tables and pie charts. Customs valuation was found to positively and significantly influence Customs Revenue Collection (β3=0.103, p=0.000<0.05).The policy makers are therefore recommended to use the study findings to prioritize the formulation of comprehensive digital trade facilitation policies that mandate the automation of customs procedures, adoption of electronic documentation, and inter-agency system integration. This study, therefore, suggests that another study could be carried out to investigate the influence of customs procedures and trade facilitation among organizations dealing with customs operations in Kenya.