Effects of the East African Community Single Customs Territory (EACSCT) on the Movement of Goods along the Rwandan Customs Posts

Abstract

Despite the factors making cross-border movement of goods complex and unpredictable, the latter plays a critical role in international trade. However, the EAC has introduced single customs territory to respond to the factors affecting the movement of goods and enhance trade within the region. This study then assesses the extent to which EACSCT affects the movement of goods across the Rwandan customs posts. The study used primary data collected on the perceptions of various trading agents on the implementation of the EACSCT, aspects of trade facilitation and movement of goods. Descriptive statistics and Multi-Level Model were used to analyse data and for estimates. The findings indicate that the EACSCT is successfully implemented along the Rwandan customs posts as rated good by various groups of trading agents. The level of trade facilitation is rated very high and the movement of goods has, to a large extent, been facilitated along the Rwandan customs posts. The findings also reveal that the EACSCT has significantly and positively affected the movement of goods along the Rwandan customs posts. These findings give an understanding that the EACSCT has significantly reduced or removed the barriers to the movement of goods by enhancing the level of trade facilitation. It is expected that 1-unit increase in the level of trade facilitation will make the barriers to the movement to fall by 1.133 points. Hence, calling for all border crossing agencies and stakeholders to work in synergy to continue streamlining the level of trade facilitation.