The Effect of Customs Procedures on Cross Morder Maize Trade (Research Paper Sample)

THE EFFECT OF CUSTOMS PROCEDURES ON CROSS BORDER MAIZE TRADE: A CASE STUDY OF NAMANGA BORDER POST
BY
JOSHUA MASINDE
A research Project submitted to the Institute for Development Studies in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Arts in Development Studies, University of Nairobi.
November 2015
DECLARATION
This research project is my original work and has not been submitted for the award of a degree in any other university or institution.
____________________________ Date: _____________________________
Joshua Masinde
T50/69843/2013
This report has been submitted for examination with our approval as University Supervisors.
_____________________________Date: _____________________________
Dr. Paul Kamau
Institute for Development Studies
University of Nairobi
_____________________________Date: _____________________________
Prof. Dorothy McCormick
Institute for Development Studies
University of Nairobi
Declaration Form for Students
UNIVERSITY OF NAIROBI
Declaration of Originality Form
This form must be completed and signed for all works submitted to the University for examination.
Name of Student: JOSHUA MASINDE
Registration Number: T50/69843/2013
College: HUMANITIES AND SOCIAL SCIENCES
Faculty/School/Institute: INSTITUTE FOR DEVELOPMENT STUDIES
Course Name: MA IN DEVELOPMENT STUDIES
Title of the work: THE EFFECT OF CUSTOMS PROCEDURES ON CROSS BORDER MAIZE TRADE: A CASE STUDY OF NAMANGA BORDER POST
DECLARATION:
I understand what Plagiarism is and I am aware of the University’s policy in this regard.
I declare that this Project (Thesis, project, essay, assignment, paper, report, etc) is my original work and has not been submitted elsewhere for examination, award of a degree or publication. Where other people’s work or my own work has been used, this has properly been acknowledged and referenced in accordance with the University of Nairobi’s requirements.
I have not sought or used the services of any professional agencies to produce this work.
I have not allowed, and shall not allow anyone to copy my work with the intention of passing off as his/her own work.
I understand that any false claim in respect of this work shall result in disciplinary action in accordance with the University’s Plagiarism Policy.
Signature:
Date:
DEDICATION
I dedicate this research to my loving wife Caroline Wawira and son William Masinde for the patience, support and the love they showed me in the course of my studies. And, to my parents who have always been supportive of me and have been a source of inspiration to me, thank you. I pray that God Almighty blesses you all abundantly.
ACKNOWLEDGEMENT
I would like to express my sincere and utmost gratitude to my research supervisors, Prof. Dorothy McCormick and Dr. Paul Kamau for the invaluable guidance, support, patience and encouragement they accorded me from project conception to the end. Prof. McCormick’s and Dr. Kamau’s useful comments, remarks, assistance and dedication throughout the research process made the execution of this project possible and bearable. My gratitude also goes to Dr. Radha Upadhyaya who offered valuable insights on research material and potential respondents.
I would also like to extend my appreciation to traders, transporters, clearing agents and officials of Kenya Revenue Authority, Kenya Plant Health Inspectorate Service, Kenya Bureau of Standards and Port Health at the Namanga border for setting aside valuable time for interviews. Special thanks also go to the members of the Institute for Development Studies and my classmates for the support and encouragement they extended to me in many ways throughout my MA course. I must also thank Wachira Kang’aru, the business editor at Daily Nation who granted me a flexible schedule at work. This enabled me to attend class. Likewise, sincere thanks go to all the Nation Media Group colleagues for the support and encouragement they gave me in the course of my MA studies.
Finally, I extend sincere gratitude to my family for the support and care they bestowed upon me throughout the research process. Their encouragement motivated me to soldier on and aim high.
I profoundly acknowledge the priceless input made by different people in this research. However, the views expressed therein are solely mine. I am therefore responsible for any errors and/or omissions in the report.
ABSTRACT
Traders who use formal trading routes across national borders are required to comply with laid down customs procedures. Such procedures often consist of documentary and administrative processes, which traders have to follow whether they understand them or not if they are to be allowed to participate in cross border trade. These procedures are said to affect both the volume of trade and the choice of route taken by some traders. This research looks at traders’ perceptions regarding customs procedures and how these affect their participation in cross border maize trade.
Carried out at the Namanga border post in Kenya, the research took a qualitative approach, which enabled the researcher to gain deeper understanding of how customs procedures affect cross border maize trade. Cross border maize traders were the key respondents. They are directly affected by customs procedures irrespective of their understanding of such processes. The researcher used a purposive sampling approach in identifying the respondents and other key informants that were interviewed. Apart from traders, a number of other key players in cross border trade were interviewed. These included clearing agents and officials of Kenya Revenue Authority, Kenya Plant Health Inspectorate Service, Kenya Bureau of Standards and Port Health. These were interviewed to gauge their understanding of the effect of customs procedures on cross border maize trade.
Traders consisted of a mix of small and large ones depending on the volume of maize they dealt in at any given time. Of the eleven traders that were interviewed, two were women. Of the two women, one was involved in formal cross border trade.
Findings are presented in thematic areas such as nature of cross border trade, characteristics of cross border maize traders, trade facilitating agents, customs procedures as well as formality and informality of trade.
Some of the key findings included the discovery of traders’ diverse understanding of customs procedures. A number of the traders said their understanding of customs of procedures was little while others portrayed good understanding of these procedures. All the traders interviewed but one said they hired clearing agents to handle the customs clearance processes on their behalf. The traders are subjected to similar procedures apart from those with previous customs offences. These are subjected to very rigorous and lengthy verification processes.
These findings enlarge the basket of knowledge available on formal cross border maize trade in East Africa. Equally, it is anticipated that policy makers would refer to such findings when planning to put in place policies or measures to support cross border maize trade in East Africa.
TABLE OF CONTENTS
 TOC \o "1-3" \h \z \u  HYPERLINK \l "_Toc435645868"
DECLARATION  PAGEREF _Toc435645868 \h
ii
 HYPERLINK \l "_Toc435645869"
Declaration Form for Students  PAGEREF _Toc435645869 \h
iii
 HYPERLINK \l "_Toc435645870"
DEDICATION  PAGEREF _Toc435645870 \h
iv
 HYPERLINK \l "_Toc435645871"
ACKNOWLEDGEMENT  PAGEREF _Toc435645871 \h
v
 HYPERLINK \l "_Toc435645872"
ABSTRACT  PAGEREF _Toc435645872 \h
vi
 HYPERLINK \l "_Toc435645873"
TABLE OF CONTENTS  PAGEREF _Toc435645873 \h
vii
 HYPERLINK \l "_Toc435645874"
LIST OF TABLES  PAGEREF _Toc435645874 \h
ix
 HYPERLINK \l "_Toc435645875"
LIST OF FIGURES  PAGEREF _Toc435645875 \h
x
 HYPERLINK \l "_Toc435645876"
CHAPTER ONE  PAGEREF _Toc435645876 \h
1
 HYPERLINK \l "_Toc435645877"
INTRODUCTION  PAGEREF _Toc435645877 \h
1
 HYPERLINK \l "_Toc435645878"
1.1 Background  PAGEREF _Toc435645878 \h
1
 HYPERLINK \l "_Toc435645879"
1.2 History of The East African Community  PAGEREF _Toc435645879 \h
11
 HYPERLINK \l "_Toc435645880"
1.3 Research Problem  PAGEREF _Toc435645880 \h
13
 HYPERLINK \l "_Toc435645881"
1.4 Research Objectives  PAGEREF _Toc435645881 \h
14
 HYPERLINK \l "_Toc435645882"
1.5 Research Questions  PAGEREF _Toc435645882 \h
14
 HYPERLINK \l "_Toc435645883"
1.6 Justification of The Study  PAGEREF _Toc435645883 \h
14
 HYPERLINK \l "_Toc435645884"
CHAPTER TWO  PAGEREF _Toc435645884 \h
16
 HYPERLINK \l "_Toc435645885"
LITERATURE REVIEW  PAGEREF _Toc435645885 \h
16
 HYPERLINK \l "_Toc435645886"
2.1 Theoretical Literature Review  PAGEREF _Toc435645886 \h
16
 HYPERLINK \l "_Toc435645887"
2.2 Empirical Literature Review  PAGEREF _Toc435645887 \h
20
 HYPERLINK \l "_Toc435645888"
2.3 Theoretical Framework  PAGEREF _Toc435645888 \h
24
 HYPERLINK \l "_Toc435645889"
2.4 Conceptual Framework  PAGEREF _Toc435645889 \h
25
 HYPERLINK \l "_Toc435645890"
CHAPTER THREE  PAGEREF _Toc435645890 \h
27
 HYPERLINK \l "_Toc435645891"
METHODOLOGY  PAGEREF _Toc435645891 \h
27
 HYPERLINK \l "_Toc435645892"
3.1 Research Design  PAGEREF _Toc435645892 \h
27
 HYPERLINK \l "_Toc435645893"
3.2 Study Site  PAGEREF _Toc435645893 \h
28
 HYPERLINK \l "_Toc435645894"
3.3 Unit of Analysis and Sampling  PAGEREF _Toc435645894 \h
28
 HYPERLINK \l "_Toc435645895"
3.4 Data Sources and Collection Methods  PAGEREF _Toc435645895 \h
30
 HYPERLINK \l "_Toc435645896"
3.4.1 Interview Guides  PAGEREF _Toc...