Transit Customs Regime Diagnosis and Recommendations ... - MCLI

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Draft Report for SSATP –MCLI Mozambique Transit Regime Project 3.2.2 Transit Export Transit Time Exporting via Maputo instead of Durban has transit time advantages, especially for companies closer to Maputo than Durban. However, while rail has been indicated as a comparison, the reality is that there is no reliable rail service yet for containerised cargo between Johannesburg and Maputo. This can also be attributed as one of the reasons why there is hardly any bi-directional flow of traffic. TABLE 15: Transit Export Transit Time Comparison TASK DESCRIPTION DURBAN MAPUTO MPO vs DUR Days Days Days Mode Rail Road Rail Road Rail Road TRANSPORT TIME Container Terminal Order 0 0 0 0 0 0 Rail Stack Time 0 0 0 0 0 0 Transit 2 1 3 2 1 1 TRANSPORT TIME 2 1 3 2 1 1 CLEARING TIME Port Transit Clearance 0 0 3 3 3 3 Border Transit Clearance 0 0 1 1 1 1 CLEARING TIME 0 0 4 4 4 4 PORT TIME Security Scanning Time 0 0 1 1 1 1 PORT TIME 0 0 1 1 1 1 LINE - LOCAL TIME Export Release 0 0 0 0 0 0 LANDSIDE TIME 0 0 0 0 0 0 LINE - FREIGHT TIME Ocean Transit Time 32 32 31 31 -1 -1 FREIGHT TIME 32 32 31 31 -1 -1 TOTAL TRANSIT TIME 34 33 39 38 5 5 3.2.2.1 Top 3 Export Time Barriers No Pre-clearance of Cargo Only once containers arrive in port can the clearance process begin. Clearance takes up to 3 days to obtain. Security Scanning Process The scanning of cargo for security purposes is a separate process and only cash payments are accepted. Agents have to pay and get a stamp for every container scanned prior to release taking place. P a g e | 39
Draft Report for SSATP –MCLI Mozambique Transit Regime Project At present, no agents are allowed to operate on account so it is a physical process and a cash transaction per container... Having the payments automated through electronic bank payments, even possibly through the SeWS or having accounts with large agents to facilitate the process is recommended. Border Transit Time An additional day has to be allowed in the process for transit clearance and border processes. This is further hindered by border opening and closing times. Many of these challenges will be addressed once a one stop, 24 hour border is operational which will reduce time needed significantly. 3.2.3 Transit Export Complexity In the table below, where a process or function is not complex a 0 value has been used and a complex process a value of 1 has been used. In terms of exports, even though there are inherent transit processes that require additional time and add complexity, the small difference is out-weighed by cost factors such as the road transport costs for companies where Maputo is much closer in terms of distance. Rail in itself immediately makes the process much longer and adds complexity and risk as the service is still irregular and unreliable. There is a change of operators and locomotives on the Maputo Corridor at the border between Transnet to CFM and vice versa. Furthermore, customs procedures required for empty container movements between countries adds delays in terms of time when placing containers from Maputo to South Africa . TABLE 16: Transit Export Complexity Indicator P a g e | 40
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