Enhancing Port Efficiency and Revenue In Djibouti

In a groundbreaking move to revolutionize their port operations and financial integrity, the Djibouti Port Authority collaborated with our firm to implement the Electronic Cargo Tracking Note (ECTN) certification. This initiative has significantly improved operational efficiency, revenue collection, and regulatory compliance. Below, we delve into the critical aspects of this transformation:

Objectives and Requests:

The primary goals were to:

• Assist in increasing import tax revenue collection.
• Reduce underdeclaration of goods significantly.
• Provide accurate forecasts of incoming shipments and their contents.
• Stop all unwanted goods at the port of loading. 

Key Contributions and Developments:

• Enhanced Revenue Collection: The implementation of ECTN has played a pivotal role in assisting the Djibouti Port Authority in elevating its tax collection efforts. This has been achieved through more accurate valuation of imported goods, leading to fairer and more systematic customs duties collection.
• Reduction in Underdeclaration: The accurate tracking and verification of cargo through ECTN have drastically cut down instances of underdeclaration. This ensures that the declared value of goods is more aligned with their actual value, fostering a more transparent import process.
• Improved Forecasting and Planning: With ECTN, the port authority can now precisely predict the volume of incoming shipments. This foresight allows for better planning of container unloading and imports, enhancing overall port efficiency.
• Streamlined Inland Transportation: Knowledge of exact cargo volumes ahead of time enables the port authority to optimize inland transportation schedules, reducing wait times and expediting cargo movement.
• Reduced Port Congestion: By facilitating more efficient cargo handling and documentation processes, ECTN has significantly contributed to alleviating port congestion.
• Investments in Port Infrastructure: The increased revenue from more accurate duty collection and the direct income from ECTN certification fees have enabled the Djibouti Port Authority to reinvest in enhancing port infrastructure.

Accurate Import Documentation: A notable advantage of the ECTN system is the collection of more accurate import documents. Since the certification process includes obtaining export declarations from the country of origin, the value of goods declared by the exporter is considered the actual value. This has led to more accurate customs duties based on real values rather than underdeclared amounts.

Incentivizing Accurate Declarations: Laws in various countries incentivize exporters to declare the true value of their goods. With ECTN, the incentive for under-declaration is significantly reduced, as exporters are generally reluctant to under-declare due to legal and financial implications. This shift ensures that customs duties reflect more realistic values of imported goods.

With our collaboration, this initiative by the Djibouti Port Authority has set a benchmark in port management and operations, showcasing the profound impact of adopting digital solutions like the ECTN certification in enhancing efficiency, transparency, and revenue generation in port and customs operations.