Gossa Bekele
Gossa Bekele
Gossa Bekele
By:
Gossa Bekele
Advisor:
June 2015
Addis Ababa
Addis Ababa University
College of Business and Economics
Department of Public Administration and Development Management
This is to certify that the thesis prepared by Gossa Bekele entitled Efficiency of Electronic
Service Delivery: A Case Study of Automated Systems for Customs Data (ASYCUDA) in
Ethiopian Revenue and Customs Authority (ERCA), which is submitted in partial
fulfillment of the requirements for the Degree of Master in Public Management and Policy
(MPMP), complies with the regulations of the University and meets the accepted standards
with respect to originality and quality.
Advisor
Internal Examiner
External Examiner
I am greatly indebted to Dr. Elias Berhanu of Addis Ababa University who as my advisor
assisted me with his timely and useful comments in the course of writing the thesis. I
have benefited from his encouragement and keen interest in the purpose of the study. My
discussions with him have been enlightening and they have influenced the formulation of
a consistent and comprehensive perspective.
I would like to thank employees and officials of the Ethiopian Revenue and Customs
Authority, Ministry of Finance and Economics Development (MOFED), National Bank
of Ethiopia (NBE), Commercial Bank of Ethiopia (CBE), Dashen Bank, NIB Bank,
EXPRESS Transit, Ethiopian Transit and Maritime Authority, customers of the ERCA
(importers and exporters) and other clearing agents for providing me the relevant data for
my study.
Above all, my debt is to God, who makes it all possible; and I am also thankful to Ato
Negesse Tefedegn for his moral support and encouragement to write this thesis.
i
TABLE OF CONTENT PAGE NO.
List of Figures--------------------------------------------------------------------------------- iv
List of Tables- ---------------------------------------------------------------------------------v
List of Abbreviations------------------------------------------------------------------------- vi
CHAPTER ONE
1. INTRODUCTION---------------------------------------------------------------- ---------1
1.1. Background of the Study----------------------------------------------------------1
1.2. Statement of the Problem--------------------------------------------------------- 4
1.3. Research Questions---------------------------------------------------------------- 6
1.4. Research Objectives--------------------------------------------------------------- 7
1.5. Methodology of the Study-------------------------------------------------------- 7
1.5.1. Research Methods------------------------------------------------------------ 8
1.5.2. Study Design------------------------------------------------------------------ 8
1.5.3. Data Instrument---------------------------------------------------------------9
1.5.4. Data Analysis Methods------------------------------------------------------ 9
1.6. Scope of the Research------------------------------------------------------------- 10
1.7. Limitation of the Research--------------------------------------------------------10
1.8. Significance of the Study--------------------------------------------------------- 11
1.9. Organization of the Thesis--------------------------------------------------------11
CHAPTER TWO
2. LITERATURE REVIEW-----------------------------------------------------------------12
2.1. Concepts in Public Service Delivery-------------------------------------------- 13
2.2. Electronic Public Service Delivery---------------------------------------------- 19
2.3. Measuring Public Sector Performance------------------------------------------ 23
2.4. Information Communication Technology and Service Delivery
Experiences of Africa------------------------------------------------------------- 30
2.5. Development of Information Technology in Ethiopia------------------------ 37
2.6. Limitations on Information Communication Technology
in Service Delivery---------------------------------------------------------------- 40
2.7. Development of Information Technology in Ethiopian Revenue and Customs
Authority (ERCA) -----------------------------------------------------------------42
ii
2.8. Implementation of ASYCUDA in Ethiopian Revenue and
Customs Authority---------------------------------------------------------------- 43
2.8.1. Direct Trader Input (DTI) ------------------------------------------------44
2.8.2. Selectivity in ASYCUDA++--------------------------------------------- 46
2.8.3. Transit-----------------------------------------------------------------------47
2.8.4. Flexibility in report generation-------------------------------------------47
2.8.5. Connectivity with Other Systems--------------------------------------- 47
CHAPTER THREE
DATA PRESENTATION AND ANALYSIS-------------------------------------------- 49
3.1. Introduction------------------------------------------------------------------------------ 49
3.2. Characteristics of Respondents-------------------------------------------------------- 49
3.2.1. Customers of ERCA-------------------------------------------------------------49
3.2.2. The Staff of ERCA-------------------------------------------------------------- 50
3.2.3. Interviewed Officials------------------------------------------------------------ 51
3.3. Data Analysis---------------------------------------------------------------------------- 51
3.3.1. Challenges in goods clearance activities------------------------------------- 51
3.3.1.1. Delay in goods clearance--------------------------------------------------51
3.3.1.2. Frequent system failure--------------------------------------------------- 52
3.3.2. Performance efficiency of ASYCUDA--------------------------------------- 53
3.3.3. Contrast between ASYCUDA and Manual System ------------------------ 55
3.3.4. Assessment of service delivery quality in ERCA--------------------------- 57
3.3.5. Assessment of Competency of public service delivery in ERCA After
adoption of ASYCUDA-------------------------------------------------------- 63
3.4. Interview Result and Analysis---------------------------------------------------------71
CHAPTER FOUR
CONCLUSIONS AND RECOMMENDATIONS
4.1. Introduction------------------------------------------------------------------------- 73
4.2. Conclusions------------------------------------------------------------------------- 73
4.3. Suggestions and Recommendations--------------------------------------------- 75
BIBLIOGRAPHY
APPENDICES
iii
LIST OF FIGURES PAGE NO.
Figure 1: Four service characteristics-------------------------------------------------15
Figurer 2: Relationships among information technology adoption, service
innovation practices and competitive advantage---------------------- 23
Figure 3: The service quality model---------------------------------------------------- 26
iv
LIST OF TABLES PAGE NO.
Table 1.1: population of the study---------------------------------------- ------------------9
Table 3.1: Type of Goods declared by customers---------------------------------------- 50
Table 3.2: Customers of the Organization-------------------------------------------------50
Table 3.3: Reasons for delay of goods clearance----------------------------------------- 51
Table 3.4: Reasons for system failure------------------------------------------------------52
Table 3.5: ASYCUDA brings quality service---------------------------------------------53
Table 3.6: Work facilitation of ASYCUDA-----------------------------------------------54
Table 3.7: Flexibility of workflows-------------------------------------------------------- 55
Table 3.8: ASYCUDA use less time than the manual----------------------------------- 56
Table 3.9: Differences of ASYCUDA from the manual system----------------------- 56
Table 3.10: Reliability of Service delivery process-------------------------------------- 58
Table 3.11: Responsiveness of employees------------------------------------------------ 59
Table 3.12: Courtesy by employees-------------------------------------------------------- 60
Table 3.13: Credibility of Employees------------------------------------------------------ 60
Table 3.14: Tangibility of the organization----------------------------------------------- 61
Table 3.15: Accessibility of service-------------------------------------------------------- 62
Table 3.16: Efficiency in ERCA after adoption of ASYCUDA------------------------ 64
Table 3.17: Effectiveness in ERCA after adoption of ASYCUDA-------------------- 65
Table 3.18: Accountability in ERCA after adoption of ASYCUDA------------------ 66
Table 3.19: Transparency in ERCA after adoption of ASYCUDA-------------------- 67
Table 3.20: ERCA is less procedural after adoption of ASYCUDA-------------------68
Table 3.21: Consistency in ERCA after adoption of ASYCUDA----------------------69
Table.3.22: Responsiveness in ERCA after adoption of ASYCUDA----------------- 70
Table 3.23: Timely performance of ERCA after adoption of ASYCUDA------------70
v
ABBREVIATIONS AND ACRONYMS
ASYCUDA Automated System for Customs Data
vi
ABSTRACT
This study aims to explore the efficiency of electronic service delivery by taking
Automated System for Customs Data (ASYCUDA) as the case study in Ethiopia
Revenue and Customs Authority (ERCA). To conduct this study descriptive research
method was used. The study tried to describe the efficiency of the system (ASYCUDA)
by triangulating different data from the view points of customers, employees, clearing
agents and other relevant offices which use ASYCUDA processed data in their works.
Survey has been used to collect data from the total sample size of 130.The sample
of this study were chosen using stratified random sampling. Questionnaires, interviews,
data analysis and observation were used to collect necessary data. The research study
involved three categories of sample population: customers of the authority, employees of
ERCA and relevant offices which directly use the report of ASYCUDA driven data. Data
analysis was made by using SPSS version 20 software and other simple statistical tools
like percentage, ratio and tables.
The study finding indicates that even though ASYCUDA is facilitating the import
and export process of the authority, it faces implementation problems. This creates
inefficiency in the maximizations of the benefits expected from implementations of
ASYCUDA. The major technical and institutional problems associated with
implementations of ASYCUDA were also analyzed. Some of the challenges which
created problems in smooth process of implementation of ASYCUDA were: lack of
trained manpower, repeated system failure because of different reasons, frequent electric
power interruptions and frequent network failures. These have created a big problem in
import and export process of the authority.
From the descriptive statistics method of quantitative data analysis and interview
interpretation, study concludes that these factors should be improved by creating
coordination inside and outside of the organization to improve the efficiency of
ASYCUDA which solve the problems of import and export process and make the
revenue collection of ERCA smooth. The study gives recommendations accordingly and
some of the recommendations are: give training to employees regarding ASYCUDA,
using latest versions of ASYCUDA (version four instead of version three), improve
management system of the work process, improve the availability of network by
coordinating with Ethiopian telecommunication (ETC) and Ethiopian Electric Power
Authority regarding electric power failure by using alternative source of energy to reduce
the power interruptions at working hours.
vii
CHAPTER ONE
INTRODUCTION
Pusić (cited in Benazic, 2012, p. 140) indicated that in many cases in the public sector,
effectiveness, which can be defined as capacity to achieve goals, gains a greater
importance than efficiency. Economic actors seek to structure their relationships – their
firms – as efficiently as possible, and the economic system as a whole operates to weed
out those that fail. Political actors, on the other hand, are typically not concerned with
efficiency in the usual economic sense, and the political system clearly does not weed out
the inefficient (Williamson et al., 1995). The political system is oriented primarily to the
achievement of goals defined in the political process, regardless of the cost benefit ratio.
During the last decade, service giving organizations have been undertaking considerable
transformations at macro and micro level, mainly due to the rapid development of
emerging business applications, technological advances as well as the requirements and
implications of the knowledge and experience-based economy. As a result, customers are
becoming less loyal, more price sensitive and discriminating. To address such challenges
and satisfy the dynamically changing customer needs, exploitation of information
technology capabilities, reengineering business processes and creating business value
have become necessary condition (Sigala, 2006).
According to Sigala (2006), current developments are not only required by service
organizations to transform their business operating models, but also it helps to redefine
their strategic scopes and roles. Overall, within this turbulent economic environment,
business competitiveness and performance is currently being related with issues such as
service quality, experiences adding customer value, exploitation of information and
communication technologies, customer relationship management, personalization and
1
customization of services, cross-cultural understanding and – eventually – satisfaction of
customer needs.
It is commonly understood that every government seeks to raise revenue, mainly through
taxation, in order to pay its expenditure on infrastructure development, among others. In
Ethiopia, the responsibility to collect revenue for the federal government rests with the
Ethiopian Revenue and Customs Authority. In addition to collecting revenue, the
Authority is responsible to facilitate the legitimate movement of people and goods across
the border. Simultaneously, the Authority focuses on those people and vehicles that may
involve in the act of smuggling i.e. the act of bringing into or taking out of the country
goods on which customs duty and taxes are not paid and goods of which the importation
or exportation of which are prohibited by law. The Authority conducts investigation,
audit and prosecutes offenders. In the attempt to discharge its responsibility, the
Authority closely works with the Federal Police, Standardization Authority, Ministry of
Health, and Immigration Service and with other stakeholders (www.erca.gov.et, accessed
on 21 November, 2014).
2
Experience suggests that electronic service delivery can provide massive gain in
effectiveness and efficiency for all forms of tax administration. To accomplish its task,
ERCA has come across two stages: Manual and Electronic declaration and data
processing. However, during manual data processing there was not an updated data and
the national reports were not indicated at their up to date conditions. Hence, recently as a
solution to the problem observed on the manual stage the Ethiopian Revenue and
Customs Authority adopted the ASYCUDA and the Standard Integrated Government Tax
Administration System (Tax-paying Number) SIGTAS | TIN systems.
The Automated System for Customs Data (ASYCUDA) is used for customs management
system which covers most foreign trade procedures and activities in goods clearance
process. ASYCUDA is a standardized system that takes into account the international
codes and standards developed by International Organization for Standardization (ISO)
and World Custom Organization (WCO) and they are adaptable to suit the national
characteristics of individual customs regimes and duties of Ethiopia. It all began in 1995
when a group of COMESA delegates came to Ethiopia to introduce ASYCUDA version
2.7 to Higher Customs Officials (www.erca.gov.et, accessed on 21 November, 2014).
The targeted objectives from the implementation of the ASYCUDA system in the
Ethiopian Customs are:
• Trade facilitation
• Effective revenue collection
• MIS and generation of trade statistics
3
1.2. Statement of the Problem
According to Berry (1991), the heart of excellent service marketing is characterized by
service reliability, performing the service consistently and accurately. When a company
performs a service carelessly, when it makes avoidable mistakes, when it fails to deliver
as per promises, it erodes the customer confidence in its capabilities and undermines its
chances of earning a reputation for service excellence. From the customer’s perspective,
the proof of a service is its flawless performance.
In Ethiopia, in most cases, service is provided in manner that suits the administrative
convenience (i.e. provider) rather than compliance to the recipient interest. In relation to
this, inconsistency of regulation and guidelines among governing institutions that provide
related service as well as lack of coordination and cooperation among various
departments within an institution and between related institutions often hinder efficiency
in service delivery (Ministry of Capacity Building (Ministry of Capacity Building
(MCB), 2001:3).
Moreover, the service delivery in public institutions is time taking due to excessive
hierarchal organizational structure. And yet sufficient attention is not given in the
planning process of many governmental institutions to improve their time taking service
delivery system as well as procedure of service delivery. In addition, the human resource
management system and working condition in the civil service do not motivate
employees to provide quality service properly. The service users are also not aware of
their rights and obligations regarding how and when to receive the public service (MCB,
2001:5).
Even though the quality of service delivery has increased the satisfaction of customers,
the efficiency of service giving company highly requires the ability to have a good
service delivery system and efficient professionals who fit that technology. Now it is
impossible to forget the contribution of modern information technologies for efficiency
of service delivery system. Electronic service delivery as a system will benefit the
organization in increasing profit, in decreasing transaction cost and maximizing customer
4
satisfaction and it is one of the best services giving system even thought it may stimulate
stress because of the knowledge gap and change challenging nature of human behavior
between employees (Quinn and Byron, 2006).
A company can achieve a strong reputation for quality service only when it consistently
meets customer service expectations. Customers evaluate service quality by comparing
what they want or expect with what they are getting from the company. To earn a
reputation companies should work as per expectations and requirements of customers
because customers are the sole judge of service quality and if customers disagree with the
quality of the service the organization offers, it can be concluded that the company has
problems and must accept and correct accordingly (Berry, 1991:15)
Service companies are under a constant and dynamic change, everybody is aware of this
and so, proactive action is required. What they have aimed to do is to identify issues that
are relevant to make them fit with the required service delivering system and as such
applicable to all involved in the management and competitiveness of service companies
regardless of their location or national boundaries. Though, this is for private
organization some parts are also extended to public organization and ERCA should watch
its service delivery system as well as its efficiency in this changing situation to facilitate
its revenue collection works.
Electronic service delivery facilitates the work of any organization and to maximize this
opportunity and to get organizational efficiency, Ethiopian Revenue and Customs
Authority (ERCA) adopted an electronic service delivery system called ASYCUDA.
There is a claim that the introduction of information technology based service delivery
system cannot guarantee the development of a country even though it may contribute to
total development; this claim of under satisfaction by the service delivery systems
continues to the introduction of ASYCUDA.
It is the experience of the researcher that Clearing agents feel that the adoption of
ASYCUDA does not bring sufficient facilitation of works in the organization. They also
5
believe that the adoption of it cannot bring adequate change in efficiency, transparency
and effectiveness of service delivery in ERCA. This is due to lack of trained employees
and good management system, frequent system failure, network failure and electric
power failure. This study assesses the service delivery in ERCA and demonstrates the
efficiency of the organization after the adoption of ASYCUDA.
Hence, ERCA applied ASYCUDA system for facilitation of its import and export works
and easy collection of revenues. In this thesis the researcher addresses the following
questions:
6
1.4. Research Objectives
ERCA adopted ASYCUDA to facilitate the import and export process activities in the
organization. Here the main objective of this research is to assess the efficiency of
ASYCUDA in service delivery process of ERCA.
To address the general objective and to fill the knowledge gap, adequate data from both
quantitative (survey questionnaire) and qualitative (in-depth interview) sources are used,
and converge data collected from both sources at the same time to get a comprehensive
analysis of the research problem and interpret the overall result. Therefore, the researcher
used quantitative survey research questionnaire and in-depth interview data gathering
instruments together with documentary analysis. Thus, the researcher used concurrent
mixed approach during the study.
7
1.5.1. Research methods
Research methods are specific techniques/methods of data collection and analysis used to
achieve the broad research objective through addressing the specific objectives of the
study. Consequently, this research used quantitative research methods particularly survey
method and qualitative methods particularly in-depth interview and documentary
analysis.
To address the research problem using a survey method the researcher used semi
structured self-administered questionnaire. The reason to implement self-administered
closed ended questionnaire was because of its low cost requirement and not consume
much time to be answered by the respondents and quicker to administer by the researcher
but, if questions wording is unclear and if respondents are not literate, its response rate is
low. This Survey instrument was prepared in English. The questionnaire had two parts,
the first part was comprised of profile of respondents and the second part is comprised of
the main idea of the study issue.
The other specific method was in-depth interview. In-depth interview is a qualitative
technique designed to draw out a glowing picture of the participant’s perspective on the
research topic. In depth interview is an effective qualitative method for getting people to
talk about their personal feelings, opinions, and experiences. The interviews were made to 6
relevant offices (two officials from each organization). The Offices are Commercial Bank of
Ethiopia (CBE), National Bank of Ethiopia (NBE), purposively selected private banks (NIB Bank
and Dashen Bank), Ministry of Finance and Economics Development (MOFED) and the ERCA
itself. Moreover, with regard to qualitative aspect of the method documentary analysis
was made.
8
Table 1.1: population of the study
Official 24 24 48
Importer/Exporter - - 444
Total 1236
Sample Size
The other element of sample design is determination of sample size, given the limitation
of availability of time and other resources the sample size was determined as follows
even if, there is no single right way for the determination of sample size (Fowler 1984).
Accordingly, the researcher has taken 130 samples that were 10% from the total
employees, 25% from the total officials, 10% from the total importers/exporter, and 10%
from the total clearing agents. Random selection was applied in taking these samples.
Out of this 36, 28 and 16 questionnaires have been properly filled and returned from the
employees, importers/exporters and clearing agents respectively. On the other hand, the
researcher has drawn 12 interviewees from 48 officials to get detailed and clarified
information as they are decision maker in their respective organization.
9
together with documentary analysis. Therefore in this study, Quantitative data from the
questionnaires were analyzed using descriptive statistics. The rational to use this
descriptive statistics is to describe the basic features of the data in a study and to provide
summaries about the sample and statistical package for social science (SPSS) tool was
used.
Ethiopian Revenue and Customs Authority adopted electronic service delivery system
that facilitates its work on tax collection-ASYCUDA and SIGTAS. ASYCUDA deals
with the tax collection on imports and exports activities and SIGTAS deals with tax
collection from all sources at home. However, the researcher focuses on the ASYCUDA
package and assesses the efficiency of the import and export system after the
implementation of ASYCUDA. This study does not cover the ICT application; it rather
concentrated only on the administrative efficiency of ASYCUDA.
10
1.8. Significance of the Study
i. This paper is important for the authority to observe its gaps in service delivery and
to initiate corrective actions.
ii. It instigates other researchers to investigate more about the system which are
not covered by this paper and other studies
iii. It is valuable for other researchers to use it as a source of reference for
comprehensive and thorough study on efficiency of the public organization.
11
CHAPTER TWO
LITERATURE REVIEW
Introduction
This chapter reviews literatures on concepts in public service delivery, electronic service
delivery, its efficiency and measurement in public sector performance. It also discusses
the development of information technology and its service delivery contribution in
Ethiopia. In addition, some limitations on ICT service delivery are discussed. Finally,
development of information technology and implementation of ASYCUDA in Ethiopian
Revenue and Customs Authority (ERCA) are also looked into.
Service- is any work that is done by a person or a group of people that provides a
function to others. Service work can be paid or voluntary. This is to say you provide a
service rather than sell an object.
Service delivery- refers to delivery of work by a person or group for the benefit of
someone else or assistance offered by an organization to its customers.
Public service delivery- is a term usually used to mean services provided by government
to its citizens, either directly (through the public sector) or by financing private provision
of services.
Electronic service delivery- is electronic commerce in services, means the provision of
services with the assistance of telecommunications and telecommunications-based tools
.It is any application program or information resource which make to exploit the potential
electronic service and internet service to facilitate all the activities involved.
12
Information Technology-in the broadest sense, information technology refers to both
the hardware and software that are used to store, retrieve, and manipulate information. At
the lowest level you have the servers with an operating system. Installed on these servers
are things like database and web serving software. The servers are connected to each
other and to users via a network infrastructure. And the users accessing these servers
have their own hardware, operating system, and software tools.
Efficiency: a situation in which a person, company, factory, etc. uses resources such as
time, materials, or labor well, without wasting any(cambridge.org/dictionary/business-
English /efficiency)
Several distinctive characteristics make special the public service delivery system of the
government from the private ones. These distinctive characteristics in combination make
the performance measurement in public sector a challenging practices and it is not easy to
make a comparison between performance of public and private sector organizations. The
occurrence of differing competitive conditions, differing objectives, constraints and data
difficulties makes very difficult to evaluate performance of public sector service
deliveries (Fox, 2002:14).
13
Inseparability of production and consumption: in service industries, usually
the marketers create or carry out the service at the same time as the full or partial
consumption of the service takes place. The high visibility of the conversion
process means that it is not possible to hide mistakes or quality shortfalls.
Moreover, the involvement of the consumer in the delivery process introduces an
additional process factor, the consumer, over which the management has little or
no direct control (Ghobadian et al 1994:44-45).
14
Figure 1: Four service characteristics
Intangibility: Inseparability:
Service cannot be Services cannot be
seen, tasted, felt, separated from their
heard or smelled providers
before purchase
Variability
Perishability: Service (Heterogeneity):
Service cannot be
Quality of service
stored for later sales
depends on who
or uses
provides them and
when, where and how
Modern service delivery, which has been a distinguishing feature of the private sector,
has become a topic issue among government as well as non-government institutions in
their recent effort to transfer good management practices from private to the public
sector. Service delivery basically refers to the systematic arrangement of activities in
service giving institutions with the aim of fulfilling the needs and expectations of service
users and other stakeholders with the optimum use of resources .In short, improvement of
service delivery means increasing the cost effectiveness, coverage and impact as well as
efficiency of service (MCB, 2001:1).
Service companies want to ensure that customers receive consistently higher quality
service in every service encountered. However unlike product manufacturers, who can
adjust their machinery & inputs until everything is perfect, service quality will always
vary depending on the interaction between employees & customers, problems will
inevitably occur. As hard as they may try, even the best companies will have an
occasional late delivery (Kotler and Armstrong 2001:323).
15
However, although a company cannot always prevent service problem, it can learn to
correct the problems immediately. Good service recovery can change angry customers
into loyal ones. Therefore companies should take steps not only to provide good service
every time but also to recover from service mistakes when they do occur. The first step is
to empower front line service employees, to give them the authority, responsibility and
incentive they need, to recognize, care about and tend to customers’ needs. Generally,
they must learn to watch service performance closely and make needed corrections
(Kotler and Armstrong 2001:323).
Improving public service delivery is one of the biggest challenges worldwide. Because,
public services are a key determinant of quality of life while it is very difficult to measure
in per capita income, and also it is very difficult to show its efficiency clearly. They are
also an important plank of poverty reduction strategy in a country. But, it is a particular
challenge in Africa, given the low quality of service provision and the critical needs of
the citizen for quality services from beginning to end by organizing public service
provision is deemed to be a core function of government. These goods and services given
by government have important benefits not captured in market as the reason of they are
subject either to externalities or have equity or minimum service objectives. Given these
features, it is well known that the market provides them as market allocation based on
willingness to pay and the price system does not internalize externalities and mostly
given by the government (Besley and Ghatak 2007:127-128).
In order to bring quality service, service providers can train current employees better or
hire new ones who will work harder or more skillfully. Because it is known that
everything depends on the behavior of staff, if they are empowered they will work for
organizational goal achievements. Empowerment definitely calls for creativity and
enhance employees efficiency. In addition, we can exploit the power of technology
because it saves time and costs, it also has great and often untapped potential to make
service workers more productive and efficient. Hence, companies can differentiate their
service delivery having more able and reliable superior physical environment in which
16
the service products delivered, or by designing a superior delivery process better
customer service (Quinn and Byron, 2006:77-78).
Here, the private sector provides private goods efficiently, and the public sector steps in
to provide public goods and services and uses taxes or subsidies to correct externalities.
People are requesting for quality service which is by government reasoning out they are
tax payers and it has a responsibility to provided as per the requirement of them because
its responsibility is to serve the citizen (Besley and Ghatak, 2007:128).
17
However, before applying quality control methods developed in manufacturing to service
operations, more fundamental questions need to be addressed: How does process
variation in services brings organizational efficiency? How do process variations affect
an organization performance? It is very important to point out that removal of
unnecessary process variation is a necessary, but not a sufficient condition, for improving
service quality as well as for bring efficiency. It is not sufficient because high levels of
inherent difference will continue to exist due to other factors and must be managed, even
in the best of all possible scenarios (Frei, et al, 1997:2).
There are four major factors which contribute to the substantial difference in the delivery
of services, but not all four of these factors apply to all services, nor is this complete list
of variables, but these four factors represent major explanations for the existence of
process variation in services: heterogeneous customers with different service
expectations; lack of precise policies and processes; high employee turnover; and nature
of customization (Frei, et al, 1997:2).
Many organizations want to work for the fulfillment of their goals, but they may not get
the right way of doing a work and intended to move ahead and improve organizational
efficiency. But many activities in service giving organizations require better facilitation
18
as well as skill full employees. Hence, organizations should work to empower employees
to make the service quality as well as to bring organizational efficiency by following
organizational goals as well as implementing better information technology which helps
its performance as well as make an organization efficient and effective in using its
resources.
Electronic services delivery can be performed using a wide range of electronic tools. The
emergence of the Internet and the World Wide Web (WWW) has resulted in a situation
where substantial proportion of recent business activities being focused on that channel.
While electronic commerce can help increase the effectiveness of tax administrations, it
also raises major new issues and challenges established tax systems and laws. The
potential with electronic commerce for avoidance and evasion is major and necessitates
that countries review their tax policies and administration to ensure that tax laws are
applied appropriately (Clarke, 1999:3).
19
citizens. This is achieved through different Service Delivery Channel, which takes into
consideration the information technology infrastructure, ability of a citizen to interact
with the government electronically, and social considerations. It offers considerable
potential to tax authorities to reduce costs, improve efficiency, accessibility,
transparency, and client orientation (Jenkins, 2002:16).
With the increasing awareness among citizens about their rights and the resultant increase
in expectations from the government to perform and deliver, the whole paradigm of
governance has changed. Government, today, is expected to be transparent in its dealings,
accountable for its activities and faster in its responses. This has made the use of ICT
imperative in any agenda drawn towards achieving good governance. It has also led to
the realization that such technologies could be used to achieve a wide range of objectives
and lead to faster and more equitable development with a wider reach (http://arc.gov.in).
20
‘Electronic governance’ is basically the application of Information and Communications
Technology to the processes of Government functioning in order to bring about ‘Simple,
Moral, Accountable, Responsive and Transparent’ (SMART) governance. This would
generally involve the use of ICTs by government agencies for any or all of the following
reasons: (a) Exchange of information with citizens, businesses or other government
departments (b) Speedier and more efficient delivery of public services (c) Improving
internal efficiency (d) Reducing costs / increasing revenue (e) Re-structuring of
administrative processes and (f) Improving quality of services
(http://arc.gov.in/arc_11threport_ch2.pdf).
Electronic governance and web services for citizens will happen only in those countries
that have the infrastructure to support it while some countries have embrace electronic
government, a number of others have not placed enough information or services online,
and are not taking advantage of the interactive features of the Internet. While some
countries have embraced electronic government, a number of others have not placed
enough information or services online, and are not taking advantage of the interactive
features of the internet (Ahmed, 2003:3).
21
government need to know how technology is affecting them and their grantees what they
need, what they could be doing better, whether their IT systems are helping or hindering
them in achieving their missions. But certain knowledge of the impact of technology on
an organization or a program is like a pot of gold at the end of the rainbow: its value is
obvious, and it looks easy to find, but the path toward it is unclear and transient.
Implementations of electronic governance will bring benefit by providing efficiency to
the government service. Improvements in information technology can have dramatic
effects on both the internal and external operations of government internally, improved
IT systems can enhance and strengthen organizational infrastructure and capacity by
increasing the efficiency of client intake; service coordination; information sharing
between departments, staff and board (Fine, 2003:2-3).
Accordingly, as Chen (2007:13) states, Information Technology adoption will help the
organization to maximize external advantage as well as internal advantage that the
technology provides.
22
Figurer 2: Relationships among information technology adoption, service
innovation practices and competitive advantage
It is not easy to standardize and control the characteristic of service delivery and in some
instants what the organization intends to deliver may be completely different from what
the consumer receives. In addition to this the service operations depend on consumers to
communicative their needs or provide information. The accuracy of the information and
the ability of the service provider to understand this information correctly have strong
impact on service delivery. The priority and expectations of the consumer may vary each
time he or she uses the service. Moreover, priority and expectations may change during
the delivery of the service. The variability of service from one period to another and from
consumer to consumer makes quality assurance and control difficult. Service providers
have to rely heavily on the competence and ability of their staff to understand the
requirements of the consumer and react in an appropriate manner (Kotler and Armstrong
2001:318- 319).
Even though it is very difficult to measure the efficiency of public service delivery since
it is involved with many immeasurable factors and its nature makes it difficult to measure
23
easily; Polidano identified some measures to improve public service delivery. They are
summarized as follows:
1. Understanding needs of its customers. These identify all types of
customers or find out what they want and need;
2. Design its service in light of this understanding which means creates or
reforms services to suit its customers and delivering as the way they
requested;
3. Consult with user regularly by gathering information on user expectations
so that service can respond to changing requirements and circumstances;
4. Introduces healthy and well developed arrangements for delivering service
by design and introduces better ways of delivering a service;
5. Employing and motivating capable staff, especially on front line and
recognize the value of its staffs at all level ,appreciate the impact of
motivated frontline employees on service delivery;
6. Monitors service performances and learns lesson so that it can innovate by
establishing suitable and credible performance measurement, regularly
monitors performance and carries out effective analysis, applying lessons
learned to make service improvement;
7. Rectify when things go wrong-recognize sometimes things go wrong and
appreciate efforts and compensation channels that are accessible to all and
efficient to administer;
8. Publicize service and performance levels to all users and communicate
information on service and performance through tried-and-tested methods
and innovative approaches;
9. Balances not overburdening service users with rules and demands for
information with the need to safeguard public money;
10. Deliver and repeatedly deliver to the same high standards service
(Polidano, 1999:7-9).
24
service and difficulties to measure the outcomes of the given services. To evaluate the
role for these bodies and how they should be structured, it needs a set of criteria. Some of
them can be efficiency, accountability, transparency and ease of administration:
• Economic allocation/efficiency: This is achieved within the organization
when all service responsibilities are organized and allocated to get the greatest
possible gain from the use of all resources (inputs) at its disposal;
• Accountability is achieved when the customer or taxpayer is able to identify
who is responsible for what and is able to link the governing unit responsible
for the service directly to its funding which are tax payers;
• Transparency is achieved when citizens or tax payers have access to
information and decision making forums, so that the general public knows that
what is happening and is able to judge whether it is appropriate;
• Ease of administration is an extension of the criteria of efficiency and
accountability. The easiest system to administer is one that is not confusing
and does not require an unnecessary amount of time and effort in
consultations, correspondence and meetings in reaching decisions (Shah,
2005:121-122)
By considering only few factors it is very difficult to measure the efficiency of public
service delivery because it is very difficult and complicated to measure the service
delivery given by the public organization; hence, sometimes it is better to see it from the
angle of private organization to make the service measurable. One of service quality
measurement models that have been extensively applied is the SERVQUAL model
developed by Parasuraman et al. (1985).
25
• Assurance: Knowledge and courtesy of employees and their ability to
inspire trust and confidence;
• Empathy: Caring, individualized attention the service provider gives to its
customers. (Chowdhary and Prakash, 2007:18).
26
0
from their relative importance in actual customer perceptions of the delivered service.
However, an important implication of the service quality model is that the gap between
service performance and customers’ expectations level may lead to dissatisfaction even
when the producer meets the exact design specifications (Nakhai and Neves, 2009).
Overall performance is divided into two components: (i) efficiency, which describes how
well an organization uses resources in producing services; that is, the relationship
between the actual and optimal combination of inputs used to produce a given bundle of
outputs, and (ii) effectiveness, the degree to which a system achieves its program and
policy objectives. In turn, effectiveness encompasses a number of different desired
aspects of service linked to program outcome objectives. These are: (i) appropriateness
(matching service to client needs); (ii) accessibility (aspects such as affordability,
representation amongst priority groups and physical accessibility); and (iii) quality (the
process of meeting required standards or incidence of service failures) (Worthington and
Dollery, 2000).
27
customers dissatisfied with a service will disclose their experiences to more than three
other people. Positive word of mouth can be a very powerful tool for attracting new
customers. Negative word of mouth can have a devastating impact on the credibility and
effectiveness of organizations’ efforts to attract new customers. In addition, customers’
service expectations are constantly rising, while their tolerance for poor service is
declining (Ghobadian, et al, 1994: 44).
The obstacles to service quality improvements are identified and discussed below:
1. Lack of visibility. Service quality problems are not always visible to the
provider. This places greater responsibility on the service provider to be
proactive in the identification of quality problems.
2. Difficulties in assigning specific accountability. The consumer’s overall
perception of service quality is influenced by experience at different stages
of service delivery. However, it is hard to attribute quality problems to a
particular stage of service delivery.
3. Time required improving service quality. Service quality problems often
require major effort over a long period of time to resolve. This is because
service quality is more dependent on people than systems and procedures.
Attitudes and beliefs take longer to change than procedures. It is difficult
for managers to keep their attention focused on the problem and remove the
root causes of the quality shortcomings.
4. Delivery uncertainties. Control of service delivery and quality is
complicated by the individual and unpredictable nature of people. The
people element encompasses both customers and frontline staff of the
service organization (Ghobadian. et.al, 1994:46).
According to Ghobadian et al, (1994), the attainment of service quality requires a lot of
performances through different directions, some of them are:
28
• Market and customer focus. “Service quality” problems are more likely
to arise in organizations that are not focused on identifying and acting on
the customer’s needs and expectations. A quality organization should put
itself in the “customer’s shoes” and build its policies from the customer’s
vantage point (Ghobadian et al, 1994:46).
29
2.4. Information Communication Technology and Service Delivery
Experiences of Africa
In the continuum of human development five overlapping phases can be identified: the
nomadic/agrarian, agrarian, industrial, service, and knowledge. In the latter stages, Africa
has lagged behind the rest of the world. During the industrial phase, this lag was
attributable to the colonial experience, which denied most of this continent its
sovereignty over decisions and policies affecting its development and imposed on it
activities that contributed to the development of the colonial powers. The colonial period
was one during which Africa lost control over its political, economic, administrative and
technological destiny (Kwankam and Ningo, 1997: 2).
Information technology penetration in Africa began just after the wider introduction of
mainframe computers in the developed world by the end of 1960s. Later microcomputers
spread widely in the region through direct purchase and by donor development aid
programs. The initial stages of microcomputers introduction into Ethiopia were
characterized by inadequate literacy and irregular understanding of the technology by
potential users. Full adaptation of the technology had been difficult due to conditions like
cultural and literacy problems, languages barriers, in existence of scripts and limited
access to software and training materials. Still most users are still not aware of the
potential of the technology. The original resistance, due to fear and dislike is, however,
replaced by intensive application of word processing, transaction and data processing
(Julie, 2007:1)
If the delay in development in the past can be attributed to the loss of sovereignty, it will
be difficult to explain the continuing lag in this era of political and administrative
independence. Africa must avoid the specter of a new form of colonialism based on the
generation, storage, processing, retrieval, transmission, and distribution of information.
Many African countries are burdened with inadequate communications infrastructure.
The development of IT in African countries will be influenced by answers, if any, to
questions concerning the economic benefits of IT, IT policy, and its impact on
government, society, business, and the security of the state. It is not clear how these
30
concerns will be handled, given the limited experience of other societies. Nevertheless,
they deserve consideration because acceptance of IT will depend on its perceived benefits
in solving some of society's pressing and anticipated problems in education, health-care,
business, government and sustainable rural development (Kwankam and Ningo, 1997:2).
African countries, by virtue of their potential market size, should not be obligated simply
to react to trends in the IT industry, but should play an active part in their determination.
A proactive rather than a reactive approach should be adopted in the development of IT
in Africa. This means anticipating problems and designing strategies to resolve them
before they occur. Our vision should not be limited to catching up with what exists in the
developed world. This will simply guarantee the propagation of the gap between them
and us. Secondly, it will perpetuate problems of appropriateness, adaptability, etc.
perennial issues which will continue to eat up our meager resources (Kwankam and
Ningo, 1997: 2).
With the rapid spread of Information and Communication Technologies (ICTs), new
opportunities have been opened for a revival of public discourse and improved
governance efficiency. ICTs offer concrete opportunities for local and national
governments to improve their performance in terms of transparency, participation and
decentralization. The “mainstreaming” of ICTs within planning and design of
development strategies help to strengthen the establishment of efficient, effective and
transparent governance systems. On-line tools can significantly improve the rendering of
services and information flows from administrations to their constituencies;
communication among administrations and citizens can be enhanced and, lastly, ICTs
offer unique opportunities for broadened citizen involvement and participation in the
decision-making process (Gucheteneire and Mlikot, 2009:3).
Ethiopia faces a number of developmental challenges including those that posses barriers
to the development and roll-out of e-government systems. Unlike in the case of the
developed countries whose systems (government administrative systems, etc) are in an
advanced stage of development and hence can be described as ‘e-government system
31
deployment and exploitation ready,’ Ethiopia currently faces a number of e-government
development and implementation barriers and challenges. A number of these barriers and
challenges need to be addressed within the context of developing and implementing a
suitable strategy for facilitating and mapping out how Ethiopia is to roll-out its e-
government program. (Dzidonu, 2006:32)
According to European free trade association, from the beginning of trade, the exchange
of goods, services and money between two parties, has existed. The exchange of one
merchandise for another between two persons or villages, that is barter, is an example of
an early form of trade. It eventually led to persons or villages specializing in certain
products with the sole aim of delivering them to other parties in exchange for
commodities which the first did not have (the delivery of woolens from one village to
another in exchange for cooking equipment produced by the latter, for instance) (EFTA,
1999:12)
Due to the fact that participants in free trade arrangements adopt separate external
customs duties, they run the risk that third countries circumvent these duties by
channeling exports into the free-trade area via the state with the lowest tariff.
Consequently, for a product to qualify for regional preferences and in order to assure free
circulation of goods and services within the free trade area, trade operators are required to
prove by documentation that the traded product has been wholly obtained or sufficiently
processed within the free-trade area. Within a Customs Union there is no need for rules of
origin for internal trade because the Member States have harmonized tariffs and trade
policy with regard to third countries. With regard to preferential trade in services, in the
context of economic integration, the nationality of the service supplier is relevant to
determine whether or not preferential treatment can be granted (EFTA, 1999:26)
With the emergence of money, which is defined as a good that can be exchanged for any
other good, exchange became more and more complex. Indeed, with the development of
institutions that specialised in lending and borrowing money, including gold, and with
revolutions in transport and technology, trade has evolved from exchange within a
32
limited area to a global network of transactions in which, in the 1990’s, orders which are
instantly delivered by fax or e-mail allow a company in Hungary, for instance, to
immediately supply made-to-order merchandise to a company in Germany.
Technology can be most broadly defined as the entities, both material and immaterial,
created by the application of mental and physical effort in order to achieve some value. In
this usage, technology refers to tools and machines that may be used to solve real-world
problems. It is a far-reaching term that may include simple tools, such as a crowbar or
wooden spoon, or more complex machines, such as a space station or particle accelerator.
Tools and machines need not be material; virtual technologies such as computer software
and business methods fall under this definition of technology.
The word technology can also be used to refer to a collection of techniques. In this
context, it is the current state of humanity's knowledge of how to combine resources to
produce desired products, to solve problems, fulfill needs, or satisfies wants; it includes
technical methods, skills, processes, techniques, tools and raw materials. When combined
with another term, such as "medical technology" or "space technology", it refers to the
state of the respective field's knowledge and tools. "State-of-the art technology" refers to
the high technology available to humanity in any field. Technology can be viewed as an
activity that forms or changes culture. Additionally, technology is the application of
math, science, and the arts for the benefit of life as it is known. A modern example is the
33
rise of communication technology, which has lessened barriers to human interaction and,
as a result, has helped spawn new subcultures; the rise of cyber cultured has, at its basis,
the development of the Internet and the computer. Not all technology enhances culture in
a creative way; technology can also help facilitate political oppression and war via tools
such as guns.
One of the greatest challenges facing public authorities today is to reconcile the
apparently contradictory objectives of enforcing government regulations while at the
same time posing the minimum obstacle to legitimate trade. Enforcement with a
minimum of obstacles is a very good summary of the aim of trade simplification,
facilitation and efficiency. With regard to this area, simplification of procedures is a key
tool to facilitate trade and to increase trade efficiency. In fact, these approaches address
the same goal: if enforcement is needed, then with minimum interference (Dzidonu,
2006:35).
With the lowering of tariffs across the globe, the cost of complying with customs
formalities has been reported to exceed, in many instances, the cost of duties to be paid.
In the modern business environment of timely production and delivery, traders need fast
and predictable release of goods Clearly, this definition relates to a wide range of
activities including but not limited to import and export procedures (for example,
customs or licensing procedures), transport formalities, payments, insurance, and other
34
financial requirements. However, recently, the definition of trade facilitation has been
broadened to include the transparency and professionalism of customs authorities,
harmonization of various standards and conformity to international or regional
regulations. In a narrower sense, trade facilitation concerns the movement of goods in
cross-border trade (Buyonge and Kireeval, 2008:4).
The main reason for the initial unwillingness of African developing or least-developed
countries to negotiate on trade facilitation was the understandable fear that
implementation of any such agreement would require considerable investment of the
governments of these countries in infrastructure, change of operational procedures and
human resources. It is at the same time unlikely that the developed countries would need
to change anything for implementing any of the trade facilitation measures to be included
in such a multilateral trade facilitation agreement. African countries are now very keen to
explore the possibilities provided by trade facilitation whether in the context of the WTO
negotiations, regional or country-specific initiatives. New trade facilitation initiatives in
Africa address both physical infrastructure (roads, ports, telephone connectivity, etc.) and
administrative hurdles (Buyonge and Kireeval, 2008:3).
Automated systems in Customs provide one of the most important tools for facilitation of
trade procedures. Customs automation results in increased transparency in the assessment
of duties and taxes, substantial reduction in customs clearance times, and predictability,
all leading to direct and indirect savings for both government and traders. The higher the
level of automation of customs procedures in a country is, the greater the possibility of
detailed inspections, detection of fraud, and firm action including prosecution in court.
Early versions of ‘ASYCUDA’, the preferred customs IT system in Africa, have limited
functionality compared to contemporary versions such as ‘ASYCUDA++’.
Most of the employees of the clearing agents’ organizations did not have the knowledge
and ability to use computers and technology efficiently. So understandably it was quite a
challenge for most of the clearing agents to comply with the requirements for exchange
of electronic information with Customs while learning basic IT skills. An important
35
lesson that should be learned is to invest in developing the IT skills of the staff of
companies if customs technological developments are to lead to improved levels of trade
facilitation. (Buyonge and Kireeval, 2008:3).
Customs administrations in Africa are going through a period of rapid change, which
requires a paradigmatic shift in customs operation. There are ongoing positive
developments by Customs to reform and modernize procedures and processes, as well as
commendable initiatives by the private sector to take a more proactive approach to
improve customs administration for the benefit of governments and business. The
increasing positive engagement of business with Customs has helped identify major trade
facilitation weaknesses that if addressed, can help reduce transaction costs in Africa.
These include the lack of a service ethos across all customs management levels,
adversarial relationship between Customs and business, insufficient or inefficient
supporting infrastructure, lack of a facilitation culture in other government departments,
corruption and illicit trade. The challenges present opportunities for businesses to engage
with Customs to bring about the desired change (Buyonge and Kireeval, 2008:5).
36
2.5. Development of Information Technology in Ethiopia
The world economy is experiencing the effects of rapid globalization and liberalization as
well as the impact of the emerging information age. The prediction is that this will bring
about a new global economic order to be dominated by information and information age
knowledge-based economies. Like other developing countries, Ethiopia is facing new
challenges to her socio-economic development as a result of the emerging information
age characterized by information and communication technologies (ICTs). The crucial
role that ICTs can play in facilitating and accelerating socio-economic development has
been recognized worldwide. And Ethiopia like other countries is equally placed to take
advantage of these technologies to facilitate her socio-economic development process
(UNPAN, 2006:6)
According to Adam (1999) awareness about of information technology has been greatly
growing among users in the field of academics and research, among workers of
international organizations and in international business organizations. This has resulted
in a growing recognition of the importance of networking and expansion of the
technology. The Ethiopian Telecommunications Corporation has made huge investment
in the development of the network infrastructures.
Technology has affected society and its surroundings in a number of ways. In many
societies, technology has helped develop more advanced economies (including today's
global economy) and has allowed the rise of a leisure class. Many technological
processes produce unwanted by-products, known as pollution, and deplete natural
resources, to the detriment of the Earth and its environment. Various implementations of
technology influence the values of a society and new technology often raises new ethical
questions. Examples include the rise of the notion of efficiency in terms of human
productivity, a term originally applied only to machines, and the challenge of traditional
norms (http://en.wikipedia.org/wiki/Technology assessed 16 January, 2015).
Information Technology (IT) is not a luxury for the poor: rather it is an essential tool for
poverty alleviation as per Asian Pacific Newsletter. The impact of IT is pervasive both on
37
an organization and on society as a whole and it offers opportunities of break through
changes. The ongoing innovation in the IT the Internet is growing with accelerating pace
(Mesfin, 2005:7).
Coupled with lack of national guidelines, a weak education infrastructure and a restrictive
information seeking culture have remained the stumbling blocks to diffusion of
information and communication technologies in Ethiopia. On the positive side,
international organizations and development aid agencies have played a significant role
in information technology diffusion in the country. The existence of many international
38
organizations in the capital city has created opportunities for demonstrations of key
information technology, transfer of ideas, sponsoring structural development projects and
a potential market segment for emerging small and medium enterprises in the field. The
number of international organizations recognizing the importance of information
technology for the development of local capacity has been increasing (Teferi, 2004:13).
The application of information and communication technology does not just encompass
technology_ hardware, radios, computers, telephones and software and the content or
data, but also needs organization, incentives, procedures and people. Without enabling
policies environment for vibrant private sector development, and the human resources,
telecommunications, energy and social infrastructure development, ICTs application will
remain fragmented. The ability to participate in information and communication
technologies requires participation, partnership, understanding of social implication of
new technologies and management of changes at national level. As an industrial activity,
electronics has yet to start in Ethiopia, though some efforts have been initiated towards
assembling radio receiver sets. Sophisticated systems are in operation in the fields of
mass media, radio communication, telecommunication, and communication and
navigational aids for civil aviation. The data-processing sector, which was practically
nonexistent about 30 years ago, is now within reach of many operational areas. The
earliest use of electronics in Ethiopia was in the mass communication sub sector,
followed by telecommunication and radio communication (Julie, 2007:9).
39
management), and management information system. An efficient and effective customs is
essential to the welfare of the country. It provides the statically information on foreign
trade transaction essential for the economic planning.
Such guidelines must have the backing of government in order to be effective, and should
cover:
• Acquisition of information technology,
• Use and application of the technology,
• Human resource development, and
• Regulation/deregulation and management.
40
The most pressing needs are for:
• Government policies and legislation to support IT development;
• Informatics policy and management infrastructure;
• Establishment of financing mechanisms, with adequate financial analysis,
controls, and accounting;
• A clear position on the level of control to be exercised locally and a desired level
of dependency on foreign sources; and
• Coordination and integration of the needs of the public and private sectors'
continuing awareness of the state of the art in IT.
Faced with such challenges, many nonprofits find the evaluation of technology an
intimidating task. How can nonprofits effectively evaluate the impact of technology on
their work? Innovation Network’s information technology evaluation efforts over the past
41
five years have provided some key lessons for improving the use and measuring the
impact of information technology within nonprofit organizations.
Under the civil service reform program, Ethiopian customs authority recently has made
an effort to introduce the new customs transit and clearance control manual to meet its
establishment objectives. But this is not an end by itself; rather, customs has always to be
in reform. In reforming existing customs practices to farther facilitate the movement of
42
goods, customs should adopt modern business process re-engineering (BPR) techniques
to identify inefficient and/or redundant activities for streamlining or elimination.
The main objective of the new manual is to enable customs authority render efficient and
effective service to importers and exporters and ensuring effective customs control in line
with national, regional and international laws and, conventions by shortening both transit
and clearance time of imported and exported goods and reducing document requirement.
Delays in the release of goods are caused by a number of factors including inefficiency
and lack of professionalism on the part of some shipping agents, freight forwarders and
customs clearing agents/brokers. According to the recommendation given by Customs
Co-operation Council on draft guideline on key sectors for trade efficiency, to overcome
this program, government should set minimum standards for these professions and
closely regulate performance (www.erca. gov.et accessed on 2015/02/05).
43
To meet the demands of modern international trade with the change in technology and
advancement and be in line with internationally accepted standards the ECUA has started
implementing the advanced system ASYCUDA++. The business people users of the
customs computer system are more interested in being served expect to save time and
reduce costs. Therefore the main changes and benefits that come with this ASYCUDA++
implementation are aimed at meeting these objectives. The main features and benefits
expected with ASYCUDA++ migration are:
44
Advantages to Customs
i. DTI reduces the cost of declaration processing (since printing of declarations
copies goes to the declarant).
ii. Rationalizes on manpower utilization as personnel initially deployed for face
examine and data capture can be re-assigned to other needy areas of important
customs work.
iii. Help customs in realizing the objectives of quicker clearance for trade facilitation.
45
2.8.2. Selectivity in ASYCUDA++
The introduction of ASYCUDA selectivity is an important component in the package of
procedural reorganizations that should be included in the introduction of ASYCUDA++.
The concept and practice of risk based controls is already in practice and seems to be well
emphasized in the revision of procedures currently going on. At the previous system due
to the limitations of ASYCUDA version 2, these processes are performed manually with
little or no formal risk profiling being used. This approach is not sustainable if the use of
the ASYCUDA++ selectivity module is to be successfully introduced. At present a
structure exists in the Ethiopian Customs Authority (ERCA) that could take up the
responsibility of managing selectivity at a national level. However, its effectiveness in
this area has yet been established as the unit is said to be in its infancy and the team
members have not yet acquired the necessary skills required for this task (UNCTAD,
2000:23)
Using MODSEL many different pieces of data, input as declaration details, can be used
by Customs to select particular declarations for special treatment before any assessment
is made. This provides the means of implementing decisions on processing channels,
which are named 'Red', 'Yellow', 'Blue' and 'Green'. Control over the rates of random
selections and ‘expected rates’ means that Customs Office management or supervisors
have the means to match daily workload, the numbers and levels of declarations selected
for check, to the capacity of the Office to cope with those checks bearing in mind the
existing priorities.
46
Green Lane- All declarations other than those selected Red, Yellow or Blue. This
contains an option to 'delay' the automatic assessment of Green Lane declarations. A
delay can be set to allow Customs time to 'manually' examine details of the declaration,
with the option to re-route to Red, Yellow or Blue if a higher level of check is thought
necessary for those particular goods.
2.8.3. Transit
The system has a facility that manages the transit risks and enforces adequate controls.
The main problems of transit that are related to lack to timely information and system
controls for intervention are adequately addressed. This facility will be deployed between
Djibouti and Inland offices in Ethiopia to facilitate the quick movement of transit data
and goods. This is expected to help in trade facilitation (UNCTAD, 2000: 27).
47
Formation of Revenue Net
a. This encompasses the key sectors of tax collection that is the Banks, Ministry of
Trade and Industry, the Ethiopian telecommunication corporation. The main aim
is to use the technical expertise in all these sectors and interconnect the systems to
exchange information thereby maximizing the use of resources and offer
improved service
b. Implementation of the Wide Area Network (WAN) to interconnect all the
computerized customs sites to ensure timely availability of data at the central
point and simplified system support for distant areas form the capital city.
48
CHAPTER THREE
DATA PRESENTATION AND ANALYSIS
3.1. INTRODUCTION
This chapter primarily deals with the presentation of the detail analysis of primary and
secondary data gathered from the distributed questionnaires to customers and
employees of the ERCA, the interview conducted to officials from different relevant
institutions as well as the analysis of available relevant documents. For the purpose of
obtaining data in this study, semi structured questionnaires were distributed to
customers and officers of ERCA in the airport branch office and Kality branch office.
The other technique for collecting data is interviews from relevant offices like private
and government owned banks, the MOFED, the Information Technology (IT)
department and the Head office of ERCA. In connection with this, the chapter
explains the opinion of customers and officers concerning the efficiency of
ASYCUDA, the problems ERCA is facing while applying the ASYCUDA and the
overall efficiency of ASYCUDA. Moreover, the analysis of this chapter provides the
ground to forward recommendations for implementation where ERCA can improve
the efficiency of the ASYCUDA.
49
Table 3.1: Type of goods declared by customers
Frequency
Reponses Import Export Total Percent %)
Commercial goods 7 8 15 34
Project goods 15 - 15 34
Investment goods 10 - 10 23
Diplomatic goods 4 - 4 9
Total 36 8 44 100
Source: Own survey 2015
According to this survey, as shown in Table 3.2, it is known that 36 out of 44 (82
percent) of customers are importers, while 8 out of 44 (18 percent) are exporters and
15 out of 44 (34 percent) are both importers and exporters. Since these customers
have working experience in relation to importing and exporting from 2 years up to 10
years, it is safe to conclude that they have the ability to explain concerning the study
at hand as well as to have a say on the performance of ASYCUDA as comparing to
the manual practices of the offices.
50
3.2.3. Interviewed Officials
Supplementary to questionnaires distributed to customers and employees, interviews
were conducted with relevant officers who are directly related to the application of
ASYCUDA driven data which they use as an input as well as in reports. A total of 12
officials from Commercial Bank of Ethiopia, National Bank of Ethiopia, NIB Bank,
Dashen Bank and Ministry of Finance and Economics Development and the ERCA
were selected (2 from each organization) and interviewed. Generally from 130
targeted sample respondents of the written questionnaires and interviews, only 80 of
them were returned and 12 officers were interviewed. Hence, the analysis deals with
the opinions of 92 out of 130 (71 percent) respondents.
However, as table 3.3 shows, customers give many reasons for delay of clearance of
goods about 2 out of 44 (4 percent) customers associated the reason for delay with
less working habit of workers, while 11 out of 44 (25 percent) stated that with
frequent system failures cause the delay, 6 out of 44 ( 14 percent) associated the delay
51
with extended price checking and 5 out of 44 (11 percent) agreed that less
transparency in work process of the organization is the reason for delay, the other 6
out of 44 ( 14 percent) associated the reason for delay with un updated database while
about 3 out of 44 ( 7 percent) of customers associated the delay in goods clearance
with shortage of cargo space, 7 out of 44 ( 16 percent ) related the delay with electric
power failure, while 4 out of 44 (9 percent) attributed with network failure as the
cause for delay. This implies that, different reasons cause the delay in goods clearance
and the existence of delay in goods clearance by itself is an indication of a gap to
which the organization has to respond.
As Table 3.4 shows, with regard to the reasons why the system fails, 13 out of 44 (30
percent) customers stated that it is due to network connections problems , 13 out of 44
(30 percent) said the reason for system failure is frequent electric power interruptions,
8 out of 44 ( 18 percent) customers associated the reason with unskilled manpower
and low competency of employees for the work, 4 out 44 (9 percent) associates the
reason of system failures as server problem while 6 out of 44 (13 percent ) of them
associated the reason of system failure as absence of system supervisor. In relation to
this, most of the respondents stated that whenever system failure happen, it is not
customary that the organization immediately takes corrective measures to maintain
the system and ensure its operational continuity.
52
3.3.2. Performance Efficiency of ASYCUDA
The main objective of the implementation of ASYCUDA is to improve the delivery of
service to the public and thereby to attain an efficient revenue collection mechanism.
Intending to assess the materialization of this objective, the researcher asked the
customers as well as the employees of the organization to express their opinion
regarding the service quality improvement as a result of the adoption of ASYCUDA.
As shown in Table 3.5, most of the respondents 33 out of 44 (75 percent) agreed that
there exist service improvement on quality of service delivery system after adoption
of ASYCUDA, while the remaining respondents 11 out of 44 (25 percent ) did not
agree that there exist service improvement as a result of the adoption of ASYCUDA.
There is of course a change towards bringing quality service delivery process in the
organization , even if the system has big potential to bring more efficiency and quality
service system to the organization ; the complaint given by 25 percent of the
respondents is significant enough to retard the move of the organization for efficiency
and can be a sign for some correction at some point of the clearance process .The
study implies that the ERCA is not in a position to provide full quality and efficient
service delivery system because of the reasons explained above and this in return
hinder its overall efficiency of the service delivery process of ASYCUDA.
53
Table 3.6: Work facilitation of ASYCUDA
Response Frequency Percent (%) Rank
Minimize time 7 16 III
Increased speed 12 27 I
Reduce procedure 10 23 II
Reduce cost 3 7 VI
Reduce paper work 4 9 V
Facilitate paper work 5 11 IV
High accuracy 3 7 VI
Total 44 100 -------
Source: Own survey 2015
Customers were requested to explain how ASYCUDA brings quality service delivery
system and as Table 3.6, shows, respondents mention different reasons, 7 out of 44
(16 percent) of customers indicated that the ASYCUDA facilitates work and
minimize processing time, 12 out of 44 ( 27 percent) of respondents stated that
ASYCUDA increased processing speed, 10 out of 44 (23 percent) of them agreed that
it reduced procedure, while 3 out of 44 ( 7 percent) indicated that ASYCUDA reduced
cost, 4 out of 44 ( 9 percent ) of respondents confirmed that the system reduced paper
works, 5 out of 44 ( 11 percent) them stated that ASYCUDA facilitate paper works
and the remaining 3 out of 44 ( 7 percent) them indicated that high accuracy was
achieved as a result of the application of the ASYCUDA. Efficiency is composed of
speed of activities, reduced service delivery cost, decreased in human involvement
and shortening of work process. The adoption of ASYCUDA in Ethiopia Revenue
and Customs Authority service delivery has yielded these benefits at least partly to
users. Customers are able to declare their goods within short period of time, enjoy the
benefit from the speed of activities in the comparison to the manual custom service
delivery system.
As the Table 3.6 shows, when comparing the rating of customers, ASYCUDA has
brought quality service delivery system minimizing processing and service delivery
time ranks III, increasing speed of all the process of goods clearance ranks I, reducing
cost of goods clearance process ranks II, Reduce cost ranks VI, Reduce paper work
ranks V, facilitating paper work ranks IV and by bringing high accuracy in the
process of goods clearance generally ranks VI.
54
3.3.3. Contrast between ASYCUDA and Manual System
Comparing the manual system with ASYCUDA, the later reduced human
involvement as well as unnecessary extended procedures that would have been
inevitable in the manual system and increase processing speed and efficiency.
However, the increased processing speed and efficiency as a result of the ASYCUDA
has not yet reached its optimal level, given the fact that the system frequent fails. The
fact that, most of the respondents agreed on the existence of frequent failure of
ASYCUDA for different reasons. While the respondents agreed to the frequent failure
of ASYCUDA because of different reasons, almost half of the respondents agree on
there are no immediate maintenances of system failure in the organization which
stakes the overall process of goods clearances.
The study on Table 3.7 shows that, most of the respondents 33 out of 44 (75 percent)
indicated that the adoption of ASYCUDA brought more flexible workflows in goods
clearance while the remaining 11 out of 44 (25 percent) the respondents not agree on
the work flexibility because of the adoption of ASYCUDA because there still high
work procedures in ERCA in process of goods clearances and the officers at the front
desk are not flexible enough to facilitate works.
In addition to this, respondents were requested about the ease of access to information
about their status of goods; and 50 percent of the respondents agree that they receive
immediate information about status of their goods and if there is no system failure
they received timely service from the organization. Since there is frequent system
failure and there is no immediate correction and maintenance of the system. Then it
implies that mostly there is no immediate access to information by the customers as
per their request which reduce the efficiency of the work process generally.
55
Table 3.8: ASYCUDA use less time than the manual
Responses Frequency Percent (%)
Yes 37 84
No 7 16
Total 44 100
Source: Own survey 2015
According to the report issued by Ethiopian Customs Authority (ECuA: 2004), the
introduction of ASYCUDA brought a remarkable improvement by reducing the
number of time consuming steps. What is more is that, as Table 3.8 shows, 84 percent
of the respondents agreed that ASYCUDA uses less time than the manual system. For
instance before the adoption of the system import process was taking from 3 to 8 day
while export was taking from 2 to 4 days. After adoption of ASYCUDA import
process takes from1 to 3 days while export takes from half day to maximum 2 days.
Even though there is progress after adoption of the system still there will be delay
when system fails because of different reasons. In the previous manual system,
collection and work process of duty and taxes and other controlling activities were
carried out one after the other. In the new system after adoption of ASYCUDA, each
activity can be undertaken simultaneously without waiting for the completion of the
preceding tasks.
In relation to this, 36 employees were requested to differentiate (see Table 3.9) about
the difference of ASYCUDA from the manual system, 10 out of 36 (28 percent) said
ASYCUDA is different from the manual that is, the manual has poor performance
compared to ASYCUDA while 7 out of 36 (19 percent) of employees related the
difference with slow processing of documents by the manual system, about 13 of 36
56
(36 percent) of employees believed the manual operation and computerized operation
of ASYCUDA is the main difference while about 4 of 36 (11 percent) related the
difference of as the manual is very procedural while ASYCUDA is not procedural
compared to the manual system and about 2 of 36 ( 6 percent) related with the work
load on the manual system while in ASYCUDA works are more easy because it is
helped by the computerized system.
The ASYCUDA is far better than the manual system in that it is easier to use,
generate and share information. Furthermore, ASYCUDA is faster and more accurate
compared to the manual system. Generally, it achieves better performance of the
organization. Most of the respondents agree that, there was need to change from the
manual to IT based system ASYCUDA.
As the data show, the organization is in good progress after the implementation of
ASYCUDA. However, ERCA is not in the position to maximize the benefits of
ASYCUDA. The research shows, there are fluctuations in perception of the changes
brought by the adoption of ASYCUDA by the organization, but most of the data
gathered from the respondents implies the organization is not efficient enough in
maximizing the benefits expected from the adoption of ASYCUDA.
57
collection system from import and export process. Based on this objective, the
researcher asked the customers of the organization to express their agreement or
disagreement with respect to different dimensions of service efficiency as well as
quality of service delivery of the organization. Hence, customers have indicated the
following responses as the factors that contribute to the efficiency and reliability of
service delivery in the organization: reliability, responsiveness, competency of
employees, courtesy, credibility, Tangibility and Accessibility of service.
58
organization. Form this data 64 percent of respondents strongly disagreed or disagreed
on service delivery improvement in the organization and reliability of the service,
which is given by the organization.
59
Table 3.12: Courtesy by employees
Courtesy by Responses
employees Strongly Agree Disagree Strongly Total
Agree disagree
FR % FR % FR % FR % %
FR
Employees have
good manner 1 3 7 15 4 10 32 72 44 100
They respect
Customers 1 3 5 12 7 15 31 70 44 100
Employees are
Friendly 1 3 5 11 9 20 29 66 44 100
They care for
Customers 3 7 6 14 5 11 30 68 44 100
property
Source: Own survey 2015
As the data shows in Table 3.12 customers rated very low the courtesy of employees
of the organization and they rate more than 79 percent to strongly disagreed or
disagreed regarding the questions requested about the employees have good manner,
whether they are caring and polite, whether employees respect customers, whether
they care for customers property, whether they are friends to customers .This implies
customers are not happy or not satisfied by the care given by the employees of front
desk officers who are at front desk. Thus the organization has a gap on the employee
and customer relationship which shows the customers who are more than 79 percent
of the respondent are not happy with the front desk officers who work in the goods
clearance processes.
60
Respondents were requested to speak about credibility of ERCA and 40 out of 44 (91
percent) of the respondents strongly disagreed or disagreed about employees’
trustworthiness, honesty and loyalty to customers. While 11 out of 44 (9 percent) of
the respondents strongly agreed or agreed about employees’ trustworthiness, honesty
and loyalty to customers .This implies that the organization do not have a very good
image which is a very big problem for the organization.
The respondents were requested to rate the organization on its facilities, technologies
on use, skill of employees as well as the convenient of the office, accordingly 91
percent respondents strongly disagreed or disagree on the organization having the
good facilities, in addition 82 percent of the respondents strongly disagreed or
disagreed on the organization having modern technologies as well as having skillful
employees. 86 percent of the respondents were strongly disagree or disagree on
convince of the office to customers. The organizations tangibility is very important
matter which make the customer to feel comfortable towards requesting service as
well as to stay in the office; in addition the modern facilities and technologies the
organization acquired made the customers to trust the organization, and believed their
works are made at the maximum best technologies as well as best efforts .The
respondents showed, except the adoption of ASYCUDA, the organization do not have
best facilities, modern technologies, skill full employees and the office is not
convenient to the customers. Thus the organization does not have good image in the
eyes of the customers.
61
Table 3.15: Accessibility of service
Accessibility Responses
of service Strongly Agree Disagree Strongly Total
Agree disagree
FR % FR % FR % % FR %
FR
The service is
easily 3 7 1 2 11 25 29 66 44 100
Accessible
Waiting time
for service is 3 7 4 9 10 23 27 61 44 100
short
Convenient
working hours 3 7 5 11 10 23 26 59 44 100
Convenient
locations of 3 7 2 4 11 25 28 64 44 100
service facility
Source: Own survey 2015
Facilitating easy access gives better opportunity to all service users to benefits from
the available services. These promote equity and enhance effectiveness by widening
coverage of the service. 91 percent of the respondents strongly disagreed or disagreed
about the service is easily accessible; 84 percent of the respondents were strongly
disagreed or disagreed on the waiting time for service is short; 82 percent of the
respondents were strongly disagree or disagree on the convenient working hours; 89
percent of the respondents were strongly disagree or disagree on the convenient
locations of service facility. Service users with full, accurate and up to date
information about the public institutions will have better understanding of what and
where service is provided and thus will be a better position to benefit from the
available services. This could also contribute to gains in efficiency by minimizing the
cost (time, effort and resources) of dealing with uninformed service users as well as it
enables stakeholders to hold institutions accountable in case of failures.
As table 3.15 shows the accessibility of service in the organization is not easy and as
we see about 91 percent of the respondent of this study believed that accessibility of
service is very difficult because of many reasons. The effect of ASYCUDA to
maintain up- to- date data is considered to be very low. Close to 91percent of the
respondents is disagreed as to whether the implementation of ASYCUDA resulted in
the availability of updated information. Similarly around 84 percent of respondents
62
were strongly disagreed or disagreed on the waiting time for service is minimal.
Given the status of the ICT infrastructure availability in Ethiopia, it is not surprising
to note that access and communication for service delivery received the lowest
ranking in agreement of customers while requiring about the service delivery of
ERCA.
It has been pointed out that flexibility on generation of reports as one of the benefits
of adopting ASYCUDA data entered into a computerized system not only be easily
connected but also in different formats at any point of the work process help to be
accessed and can be used. There is no need to wait for summation, accumulation or
clearing to get a data about transaction. The data storing mechanism enables to access
information perpetually.
In this part, the researcher tried to assess the competency of public service delivery in
ERCA in the process of import and export processes after adoption of ASYCUDA
63
based on the efficiency, effectiveness, accountability, transparency, timely and ease of
administration bases of service delivery process of the organization.
As can be seen from table 3.16, 15 out of 44 (34 percent) of the respondents from
customers strongly agreed or agreed about the efficiency of ERCA after adoption of
ASYCUDA, but most of the respondents that is 29 out of 44 (66 percent) form
customers were strongly disagreed or disagreed about the efficiency of ERCA after
adoption of ASYCUDA. In relation to this, about 31 out of 36 (86 percent) of
employees were strongly agreed or agreed about the efficiency of the performance the
organization because of the adoption of AYCUDA while 5 out of 36 (14 percent ) of
them were disagreed about this idea.
64
Efficiency is a joint effect system of the operation of different parts of a system .The
excelling of service provision in few parts the whole institutions might hinder the
right functioning of the other. The efficiency aspect is satisfactory only if it is
compared to the manual system; otherwise, the failure of computers printers and
internet connection as well as electric power failure are persistent after
implementation of ASYCUDA in providing customs service. As a result, it becomes
impossible to commutate with the server of ASYCUDA in providing up to four days
in a week on average indicated by many of the respondents including customs officer,
the discontinuity causes an accumulation of unprocessed document and created
backlog. Therefore the general ICT aided customs service delivery will not work
better while each of its subsystems are not working in proper conditions.
As it can be seen from table 3.17, more than half of the respondents of customers
expressed their disagreement on the effectiveness of the performance of ASYCUDA.
61 percent of the respondents from customers strongly disagreed or disagreed about
the effectiveness of the performance of the organization because of the adoption of
ASYCUDA while 39 percent of the respondent from customers strongly agreed or
agreed about the effectiveness of the performance the organization because of the
adoption of ASYCUDA. In relation to this, 83 percent of the respondent from
employees strongly agreed or agreed about the effectiveness of the performance of the
organization because of the adoption of ASYCUDA while 17 percent of the
respondent from employees strongly disagreed or disagreed about the effectiveness of
the performance the organization because of the adoption of ASYCUDA.
65
Table 3.18: Accountability in ERCA after adoption of ASYCUDA
Accountability in ERCA Responses
after adoption of Customers Employees
ASYCUDA Frequency Percent (%) Frequency Percent (%)
Strongly agree 3 7 11 31
Agree 14 32 16 44
Disagree 11 25 4 11
Strongly Disagree 16 36 5 14
Total 44 100 36 100
Source: Own survey 2015
As it can be seen from table 3.18, most of the respondents which are customers
express their disagreement on the accountability of the organization, 27 out of 44 (61
percent) of the respondent from customers strongly disagreed or disagreed about the
accountability of the performance the organization while 17 out of 44 (39 percent) of
the respondent from customers strongly agreed or agreed about the accountability of
the performance of the organization. In the opposite to this, 27 out of 36 (75 percent)
of the respondents from employees strongly agreed or agreed about the accountability
of the performance the organization, while 9 out of 36 (25 percent) the remaining of
the respondent from employees strongly disagreed or disagreed about the
accountability of the performance of the organization because of the adoption of
ASYCUDA.
66
Table 3.19: Transparency in ERCA after adoption of ASYCUDA
Transparency in ERCA Responses
after adoption of Customers Employees
ASYCUDA Frequency Percent %) Frequency Percent (%)
Strongly agree 10 23 10 28
Agree 5 11 13 36
Disagree 15 34 4 11
Strongly Disagree 14 32 9 25
Total 44 100 36 100
Source: Own survey 2015
Besides, Table 3.19 also shows, more than half of the respondents which are
customers express their disagreement on the transparency of the organization, 66
percent of the respondents from customers strongly disagreed or disagreed about the
increase in transparency of the performance the organization after the adoption of
ASYCUDA by ERCA but 34 percent of the respondents from customers strongly
agreed or agreed about the transparency of the performance the organization because
of ASYCUDA. In this relation, 64 percent of the respondents from employees
strongly agreed or agreed about the transparency of the performance of the
organization, while about 36 percent of the respondents from employees strongly
disagreed or disagreed about the transparency of the performance of the organization
because of the adoption of ASYCUDA.
The level of transparency that ought to be reflected in public service delivery has not
yet been achieved in customs. The means to follow the route of documents once the
declaration is submitted to declaration receiving and data capturing section is hardly
transparent. In case, the declaration and /or its accommodating documents are missed,
there is no enough means to find them back. The degree of transparency in the
67
classification of goods for tariff payment is also very much low, the duty that should
be paid on the same goods differs from one officer’s assessment to another.
As it can be seen from table 3.20, most of the respondents which are customers
express their disagreement on whether the organization is less procedural. 27 out of
44 (61 percent) of the respondents from customers strongly disagreed or disagreed
about less procedural performance of the organization, while 17 out of 44 (39
percent) of the respondents from customers strongly agreed or agreed about less
procedural performance of the organization. In the opposite to this, 21 out of 36 (59
percent) of the respondents from employees strongly agreed or agreed about less
procedural performance of the organization, while 15 out of 36 (41percent) of the
respondents from employees strongly disagreed or disagreed about less procedural
performance of the organization after adoption of ASYCUDA.
68
Table 3.21: Consistency in ERCA after adoption of ASYCUDA
Consistency in ERCA Responses
after adoption of Customers Employees
ASYCUDA Frequency Percent (%) Frequency Percent (%)
Strongly agree 3 7 5 15
Agree 18 41 13 36
Disagree 4 9 2 5
Strongly Disagree 19 43 16 44
Total 44 100 36 100
Source: Own survey 2015
ASYCUDA is too rigid to accommodate the ever needed changing information and
correction of errors. Every decisions concerning correction should be approved by
both the supervisor and branch manager. Unless some kind of flexibility is available
for the desk officers, the ICTs are not to facilitate the efficient service rendering by
themselves because ITC and centralization of authority could not go side by side,
hence requiring the approval of the authorities to each of the changes in the service
delivery system. The case would become deterring for customs officers who are
required to attend many other tasks.
69
Table 3.22: Timely performance of ERCA after adoption of ASYCUDA
Timely performance of Responses
ERCA after adoption of Customers Employees
ASYCUDA Frequency Percent (%) Frequency Percent (%)
Strongly agree 10 23 7 19
Agree 6 14 9 25
Disagree 4 9 5 14
Strongly Disagree 24 54 15 42
Total 44 100 36 100
Source: Own survey 2015
Table 3.22, shows, more than half of the respondents who are customers express their
disagreement on the timely response of the organization on its work performances, 37
percent of the respondents from customers strongly agreed or agreed about the timely
performance the organization, while about 63 percent of the respondent from
customers strongly disagreed or disagreed about the timely performance the
organization. On respecting time, 44 percent of the respondents from employees
strongly agreed or agreed about the timely performance of the organization, while
about 56 percent of the remaining respondents of the employees strongly disagreed or
disagreed about the timely performance of the organization because of the adoption of
ASYCUDA.
This implies, regardless of the respondents inconsistency more than 50 percent of the
respondents from customers as well as employees agreed that ERCA is less timely in
its performance after adoption of ASYCUDA. Thus, though it may have different
reasons, this study show is that the organization is not timely to exploit the potential
of AYCUDA in bringing performances efficiency and process facilitation of the
revenue collection and goods clearance processes.
Table 3.23: Concern about customers in ERCA after adoption of ASYCUDA
Concern about customers Responses
in ERCA after adoption Customers Employees
of ASYCUDA Frequency Percent (%) Frequency Percent (%)
Strongly agree 9 20 4 11
Agree 7 16 10 28
Disagree 14 32 4 11
Strongly Disagree 14 32 18 50
Total 44 100 36 100
Source: Own survey 2015
70
Table 3.23 shows, that more than half (64 percent) of the respondents who are
customers express their disagreement on the concern about customers of the
organization. 36 percent of the respondents from customers strongly agreed or agreed
about the concern of ERCA for its customers after adoption of ASYCUDA, while 64
percent of the respondents from customers strongly disagreed or disagreed about the
concern of customers about the performance of the organization. In relation to this, 39
percent of the respondents from employees strongly agreed or agreed about the
concern of customers about the performance of the organization, while 61 percent of
respondents from employees strongly disagreed or disagreed about the Concern of
customers about the performance of the organization because of the adoption of
ASYCUDA.
Firstly, the BPR study which facilitated the restructuring of the organization is the
base or benchmark for the improvement. Secondly, shifting from manual to full
automated system (ASYCUDA++) is the most decisive measure which serves as a
vital input for the change. This in turns furnished the clearing agents and/or importers
on line declaration services, using the direct trader input (DTI), and it also allows the
access of electronic procedures. Thirdly, the recruiting of graduate employees, has
71
contributed in upgrading the capacity of the authority in performing modern customs
clearing process. Finally, based on the BPR study, time taken for a document based
on level of risk has been specified as a standard, and every employee is expected to
deliver Customs clearance service within or below the presented time indicated on the
manual. However, the officials agreed that, the Customs clearance process and the
presented time length for a document didn’t achieve as expected.
The interviewees extend that, the major causes for the failures of the planned outputs,
are shortage of skilled manpower (in terms of number), interruption of system
network (ASYCUDA++), employee’s insufficient knowledge of the ASYCUDA’s
function, lack of standard training center to equip employees with technical
knowledge of the clearing process and to upgrade their knowhow and create
awareness about the nature of imported goods, so that they can develop self
confidence in classification of goods accordingly.
Meanwhile, in the discussion, the officials added that beside to the listed problems in
the preceding paragraph, the clearing agents and/or owners have a significant negative
role on the Customs clearance process. They argued that, most of the agents do have
no professional ethics even they facilitate to corrupt and are smart enough in cheating
officers. At the same time, importers provide undervalued invoice, wrong certificate
of origin and other forged documents. As the result of these and other related
problems, Customs clearing time for a document/declaration became longer than the
standard.
72
CHAPTER FOUR
4.1. INTRODUCTION
This study investigates the adoption and efficiency of ASYCUDA in ERCA. The primary
and secondary data collected from 44 customers and 36 employees at ERCA and 12
officials from six relevant organizations as well as studying the available documents and
observations on the practice are the basis for my conclusions and recommendations for
the performance of ASYCUDA in ERCA.
In addition, the study explores the application of ASYCUDA compared to the manual
system that has been used by ERCA. Consequently, based on the theoretical frame work
discussed in chapter two, the study attempts to describe and analyze the performance
efficiency of ASYCUDA and suggests possible solutions by which ERCA can improve
the performance of ASYCUDA.
4.2. Conclusions
From the findings of this study, ASYCUDA improves the goods clearance activities by
reducing waiting time for service delivery even though the stoppage of the system due to
system failure has taken more time to maintain and start the work process again.
There is a delay in goods clearance even though the reasons given for goods clearance are
different among respondents. The study found out that; poor working habits of the
employees of the organization, frequent system failures because of network failure as
well as electric power failure, less transparency and un-updated data bases are the most
common reasons for the occurrence of delay in goods clearance.
73
The study explores the major problems ERCA is facing with regard to its way of service
delivery.
• Facilities: The cargo places are crowded and in adequate that creates delays in
over all processing of goods clearance.
74
• Man power: According to the study, there is no adequate skilled manpower that
immediately maintain whenever the system fails .As a result of this, delay in
service delivery process is occurring which makes the customers to lose a lot of
business opportunity. Besides, this will make it difficult for ERCA to efficiently
collect tax from its customers.
While processing on ASYCUDA ++ system, ERCA does not consider the interest of
banks because it evaluates all information from the point of view of revenue generation.
Moreover other important information like invoice number is likely to be forgotten while
registering in the declaration. The assessment must be from different angles and it must
consider the interests of other interrelated organizations like Banks and MOFED.
The ASYCUDA ++ system is excellent in tracing information and security for the
system in the cross checking but still there are some gaps in checking and correcting
some un given numbers used by some importers and exporter intentionally to cheat (take
advantage of) the system and pass the banking processes but generally ASYCUDA brings
efficiency and security
The ASYCUDA ++ frequently encounter errors and interruptions for different reasons
due to electric power failure, network failure, lack of additional features of ASYCUDA
++ system which create inefficiency in ERCA in exploiting the potentials of ASYCUDA.
From the above discussions, the following suggestions and recommendation are
provided:
75
1. Hard ware and infrastructure facilities such as high capacity printers, computers
telephones, fax machines as well as good internet connection and uninterrupted
electric power by using other means like generators have to be availed /equipped/, so
that unnecessary delay due to the unavailability of these facilities can be
eliminated
2. The level or degree of transparency must be increased by giving clear and complete
information about the status of every document that is lodged and assessed in
customs to eliminate corruption, manipulation and intentional bias
3. The lack of adequate electricity and telecommunication facilities not only make the
system fail which create very big problem in goods declaration process but also it
deprived the organization to maximize the full potential of ASYCUDA. Hence,
ERCA must create a mechanism by which electricity and telecommunication
facilities can be available.
The study has shown both the strength and weakness concerning the application
ASYCUDA by ERCA. To improve the performance of ASYCUDA, it will be useful to
implement the interventions listed below:
1. As this study showed an effort has not been made to fully exploit the potential of the
ASYCUDA ++ system by ERCA and there is no consistency in goods clearance
process in the organization. These shows there are incorrect records which are
mostly kept that reduce the reliability of tasks performed in the organization. Hence,
ERCA must work for the organizational efficiency by making the work process very
consistent and accurate. In addition, ERCA must make the necessary modification
and adoption of ASYCUDA world which is the latest versions of the customs system
than using ASYCUDA ++ system.
76
i. Develop and implement a standard training program for all customs personnel
and expand the skill sets of the customs officers, continuously schedule
training, develop and implement a communications process to provide up-to-
date information.
iii. Supervisors and front line officers should undergo mandatory training on how
to operate computers and track operations on them
3. This study showed that there is poor compliant management system in ERCA and
the customers do not know where to go if they face problems. Hence, ERCA must
establish independent compliant management system, which in turn provides an
input for further service improvement mechanisms.
4. ERCA faces electric power interruption frequently which made the work process of
ASYCUDA to stack and be very slow. Hence ERCA must work with Ethiopian
Electric Power Authority to solve the problem and also must arrange other means
of power supply like availing generator to solve the power interruption in working
hours of the organization
77
Thus, ERCA Implement a simplified and standardized process model, eliminate
redundant and manual processes, eliminate unnecessary steps, and develop a more
automated processing model. Incorporate existing systems into ASYCUDA
software, Review existing systems functionality in ASYCUDA and develop
interfaces or incorporate functionality.
6. Work for efficiency, the organization is not efficiently working with ASYCUDA,
and it must give timely service to its customers. If ERCA is to continue to give the
service, it must give proper concern to serve its customers. Hence, ERCA must
change its service delivery system so as to provide timely and efficient service for
its customers.
8. The organization must work for the development of skill of employees specially
who are implementing ASYCUDA and should given related training that can help
them to cope with the service delivery system.
78
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APPENDIX
Addis Ababa University
School Of Graduate Studies
Departments of public administration and development management
Dear Respondents:
The objective of this questionnaire is to secure the necessary and relevant first-hand information
that may be useful to conduct a Thesis regarding “Efficiency of Electronic Service Delivery: A
case study in Automated Systems for Customs Data (ASYCUDA) in Ethiopian Revenue and
Customs Authority (ERCA)” which will be used to prepare a Thesis required for my MPMP
degree in Public management and Policy. Therefore, your response in this regard helps a lot to
undertake the study. The result of this survey will be treated with at most confidentiality and will
be strictly used for academic purpose only. The researcher thus appreciates in advance your
cooperation and sparing your valuable time in filling this questionnaire (by customers).
1. What kind of business are you engaged in now?
a) Importer b) Exporter c) Both
2. What kind of goods do you declare?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
3. For how many years have you been engaged on this work?
a) Up to 2 years b) From 3 to 5 years c) From 6 to 10 years
d) Above 10 years
4. Do you face delay for clearance of goods because of Ethiopian Revenue and Customs
Authority (ERCA)?
a) Yes b) No
5. If your answer is yes for No. 4, what do you think are the reasons of delay for clearance of
goods?______________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
6. Do you know about the Automated System for Customs Data (ASYCUDA)?
a) Yes b) No
7. What is the difference between the ASYCUDA based system and the manual system for you?
______________________________________________________________________________
______________________________________________________________________________
8. Do you think ASYCUDA is facilitating the workflows in clearance of goods?
a) Yes b) No
9. If your answer for the No.8 is YES how?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
10. Is there a place to go and ask about the delay of your goods?
a) Yes b) No
11. Do you think ASYCUDA reduces the procedures required for goods clearance?
a) Yes b) No
12. Do you think quality service is given for customers by the organization?
a) Yes b) No
13. Do you think ASYCUDA brings quality service delivery system?
a) Yes b) No
14. If your answer for No.13 is YES, how ASYCUDA brings quality service delivery system?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
15. Does the ASYCUDA system fail sometimes?
a) Yes b) No
16 What are the reasons of the system failure? If your answer is YES for No.15
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
17. How frequently the system fails, if your answer is YES for No.15?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
18. What changes does the adoption of ASYCUDA have brought in the following? (Please put
Marks as per your perception of the service delivery system of ERCA.)
S.N Description Strongly agree Agree I do not know Disagree strongly
disagree
1 Efficiency
2 Effectiveness
3 Accountability
4 Transparency
5 Less bureaucratic
6 Consistency
7 Responsiveness
8 Timely
9 Concern about
customers
19. Do you think ASYCUDA requires less time than the manual system?
a) Yes b) No
20. How much time do you take on average to clear the goods before adoption of ASYCUDA?
a) Import__________________________________________________________________
b) Export__________________________________________________________________
21. How much time do you take on average to clear the goods after adoption of ASYCUDA?
a) Import__________________________________________________________________
b) Export__________________________________________________________________
22. Does ASYCUDA make the work flow more flexible?
a) Yes b) No
23. Do you get information immediately about the status of your goods when you requested?
a) Yes b) No
24. Does Staff provide timely service to you?
a) Yes b) No
25. Is there a place to go to complain about a delay of you goods?
a) Yes b) No
26. Do you think the need from manual to ASYCUDA IT based system was important?
a) Yes b) No
27. Does the organization have trained man power that facilitates the new system?
a) Yes b) No
28. Do you think the failure in the ASYCUDA system immediately maintained?
a) Yes b) No
29. Do you have any experience of immediate correction of ASYCUDA system failure in
clearance of goods?
a) Yes b) No
30. How do you rate the following as per the service delivery of ERCA? (Put marks as per
your perception of the service delivery system of ERCA.)
1 Reliability
Accuracy in performance
Consistency in performance
2 Responsiveness
Consistency in performance
3 Competency
4 Courtesy
5 Credibility
ERCA is trustworthy
6 Tangibility
7 Access
31. Is there anything you want to add about ASYCUDA’s performance in ERCA?
__________________________________________________________________________
____________________________________________________________________
Addis Ababa University
School Of Graduate Studies
Departments of public administration and development management
Dear Respondents:
The objective of this questionnaire is to secure the necessary and relevant first-hand information
that may be useful to conduct a Thesis regarding “Efficiency of Electronic Service Delivery: A
case study in Automated Systems for Customs Data (ASYCUDA) in Ethiopian Revenue and
Customs Authority (ERCA)” which will be used to prepare a Thesis required for my MPMP
degree in Public management and Policy. Therefore, your response in this regard helps a lot to
undertake the study. The result of this survey will be treated with at most confidentiality and will
be strictly used for academic purpose only. The researcher thus appreciates in advance your
cooperation and sparing your valuable time in filling this questionnaire (by employees).
1. Customs station ______________________________________________________________
2. Age________________________________________________________________________
3. Educational background a) certificate b) Diploma c) Degree d) Masters e) PhD.
4. Service year__________________________________________________________________
5. Does your work relate directly to Automated System for Customs Data (ASYCUDA)?
a) Yes b) No
6. If your answer is YES, how many years have you worked on implementation of ASYCUDA?
______________________________________________________________________________
7. Do you think there is a delay in clearance of goods in your organization before adoption of the
system? a) Yes b) No
8. What are the reasons /factors/ of delay in clearance of goods if your answer for No.7 is YES?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
9. What are the differences between the new system and the old procedure for you?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
10. Do you think ASYCUDA is facilitating workflows in clearance of goods?
a) Yes b) No
11. How ASYCUDA is facilitating workflows if your answer for No.10 is YES?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
12. Do you think there was importance to change form manual to IT based system
(ASYCUDA)?
a) Yes b) No
13. Do you ever face system failure the implementation of ASYCUDA?
a) Yes b) No
14. Does the system fail frequently at high working time?
a) Yes b) No
15. Do you inform the customers the reasons of the delay of their goods?
a) Yes b) No
16. What is the reason if your answer is NO for question No. 15?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
17. Is there a place to go for to customers compliant about a delay of their goods?
a) Yes b) No
18. Do you think ASYCUDA reduce the bureaucratic procedures required for goods clearance?
a) Yes b) No
19. Do you think quality service is given for customers?
a) Yes b) N o
20. Do you think ASYCUDA brings quality service delivery system?
a) Yes b) No
21. Is there frequent ASYCUDA system failure during customer service delivery at ERCA?
a) Yes b) N o
22. What are the reasons for system failure if your answer is YES to question number 21?
______________________________________________________________________________
______________________________________________________________________________
23. Do you think ASYCUDA uses less time than the manual system?
a) Yes b) No
24. Do you think ASYCUDA is efficient than the manual system?
a) Yes b) No
25. Do you think ASYCUDA reduce the cost involved in the transaction than the manual
system?
a) Yes b) No
26. Do you think the need from manual to IT based system was important (from Manual system
to ASYCUDA)?
a) Yes b) No
27. If your answer is YES what is your reason to question 26?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
28. What changes does the adoption of ASYCUDA have brought in the following? (Please put
marks as per your perception of the service delivery system of ERCA.)
1 Efficiency
2 Effectiveness
3 Accountability
4 Transparency
5 Less bureaucratic
6 Consistency
7 Responsiveness
8 Timely
9 Concern about
customers
29. Do you think ASYCUDA make the work flow of goods clearances more flexible?
a) Yes b) No
30. Does the organization have trained man power to facilitate the new system?
a) Yes b) No
31. Do you think the failure in the system immediately maintained?
a) Yes b) No
32. Do you have any experience of immediate correction of system failure in clearance of goods?
a) Yes b) No
33. If your answer is No how long it take them to maintain the system?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
34. Any thing you want to add about the ASYCUDA performance?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________