Abstract:
The customs administration is one of the fundamental elements of the international
business cycle. Developing an efficient cross border logistics has been a major
challenge by East African countries. There has been frequent cases of delays, lack of
leadership, low capacity and theft of cargo. The main purpose of the research study
was to establish the effect of customs administration on cross border logistics
efficiency among East African member states. The study was guided by four
objectives: To determine the effect of custom harmonization on cross border logistics
efficiency at the Kenyan borders. To evaluate the effect of customs automation on
cross border logistics efficiency at the Kenyan borders. To assess the effect of
customs cross-border management on cross border logistics efficiency at the Kenyan
borders. To evaluate the effect of capacity improvement on cross border logistics
efficiency at the Kenyan borders. The study was guided by three theories namely;
Theory of Customs Union, Theory of Economic Integration and Trade Theory. The
study used an explanatory research design and the total population for the study was
Uganda and Tanzania borders, These are; Holili, Isebania, Loitokitok, Lunga Lunga,
Namanga, Taveta, Busia, Lokitanyala, Lwakhakh, Malaba and Suam. The study
targeted 51 senior staff, 94 middle management staff and 141 junior staff. The sample
size was 47 senior staff, 92 middle management staff and139 junior staff.
Questionnaires were the major data collection instruments. The data was analyzed
using descriptive and further inferential statistics including correlation and regression
analysis. The findings show a strong and positive relationship between custom
harmonization and cross border logistics efficiency. The relationship is significant (r =
0.330, p<0.01). There was a strong and positive relationship between custom
automation and cross border logistics efficiency. The relationship was significant at (r
= 0.296, p<0.01). There was a strong and positive relationship between cross-border
management and cross border logistics efficiency. The relationship is significant at (r
= 0.468, p<0.01). There was a very strong and positive relationship between capacity
improvement and cross border logistics efficiency. The relationship is significant at (r
= 0.329, p<0.01). The results of multiple regression analysis shows that the value of
R 2 is 0.574, revealing 57.4% variability in factors relating to custom harmonization,
custom automation, cross border management and capacity improvement accounted to
cross border efficiency. This model implies that every per unit increase in custom
harmonization leads to 0.193 increase in cross border logistics efficiency. An increase
in custom automation leads to 0.096 increase in cross border efficiency. A unit
increase in cross border management leads to 0.310 increases in cross border
efficiency. A unit increase in capacity improvement leads to 0.225 increase in cross
border logistics efficiency. The study concluded that there has been little
improvement in cross border logistics efficiency. Automated coding system has
greatly improved cross border logistics efficiency. Centralized customs among the
member countries has made movement of goods more efficient.. The study
recommended that member states should come up with a policy that reduces time of
clearing goods by harmonizing the custom procedures. East Africa member states
should improve on automated system to ensure that it identifies all goods passing
through the border posts. EAC member states should come up with policies that
eliminate gaps in sharing of information. East African member states should regularly
train their staff on emerging trend in cross border logistics management.