(DTIS) Update, Volume 1 – Main report - Enhanced Integrated ...

Transport Price (US c/tkm)1612840Figure 5.15: Average road transport prices -comparison with other routes in Africa156 7 811Source: Author’s estimates, based on Teravaninthorn and Raballand (2009)The Tripartite Agreement on Road Transport, which in essence is the governing framework forroad transport services between the EAC countries, provides for equal treatment of serviceproviders registered in the different countries. Operators are required only to register with thecompetent authorities in their state of registration before they can provide international services. There istherefore no restriction embedded in the agreement that prevents Burundi operators from providingservices on the Dar es Salaam route or any other regional route. Rather, restrictions are found in thevarious charges that individual countries levy at their borders. In the case of Burundi, operators payapproximately $500 more per return trip to and from the Port of Dar es Salaam than their Tanzaniancompetitors. Tanzania operators have in general lower charges to operate their transport activities. As aresult, the latter have a comparative advantage on the Central Corridor road route. There are alsodifferences in axle load limits between the two countries, but these are being addressed following therecent adoption of EAC limits.Burundi would benefit from a stronger domestic trucking sector. In the past the Government ofBurundi has tried to encourage the development of local participation in international trucking byallowing the payment of transport costs in local currency. However this is no longer feasible after therelaxation of currency controls, so other measures would have to be taken to develop domestic truckingcapacity. Burundi is a landlocked country which has suffered from considerable disruption to its externaltrade routes. A locally based international trucking or forwarding industry could be one means ofproviding transit flexibility, and security. Burundi could thus promote this industry by giving specificincentives, such as tax free import of heavy haulage equipment.7.2 Customs and border managementOne of the areas where there has been the most progress in trade facilitation in Burundi since theoriginal DTIS is in customs and border management. The Office Burundais des Recettes (OBR) wasestablished in July 2009 as the agency for revenue collection responsible for registering, checking andcollecting all taxes and duties on import and export flows. In fact, the introduction of OBR was one ofthe recommendations of the DTIS to address the concerns and needs of trade integration. Theestablishment of OBR was arguably the most significant change in public administration in Burundi afterthe liberalization of foreign exchange for trade facilitation since the 2004 DTIS. OBR’s overall goal is toreduce poverty through improved revenue collection service and an improved business environment inBurundi. It was created also to promote the economic integration of Burundi in the East AfricanCommunity (EAC).106 / 153