Time, an obstacle for trade

Studies show that every additional day of delay in trade and getting the product to its destination, it has a cost of approximately equivalent to one percent of the good’s original value.

Studies from 2012 shows that the time taken to complete the procedure of foreign trade, mostly takes up to 30 days. Whereas in other countries like Singapore and the U.A.E, the process only takes up to 3 to 5 days overall.

It is noteworthy that there is also a shorter method to this procedure, and that is smuggling. In this way, cutting costs to a great amount is made possible. In this way, the process of import and export of goods is done more efficiently and also with less hassle. This way also lets the importer/exporter to implement cuts on legal fees.

One of the main reasons of smuggling, is the long time that the customs office takes to control the process of clearance due to the long time taken to control the goods.

In this regard, statistics provided by the organization in charge of combating smuggling, shows that the rate of smuggling is increasingly high. The amount of smuggled goods in the year 2013 for instants, was estimated to about 20 billion dollars, in other words, this rate is equivalent to 35% of the volume of the legal trade.

Therefore, it is vital to speed up the custom process.

In order to reduce the dwell time in ports and customs, the government’s cooperation is needed to combat the collusion between government officials and the private sector. It is important to remember that trade reduces dramatically when shipping times increase.

Export-based assembling of goods is simply impossible without a quick import process.

Delays and the unpredictability in custom’s clearance process, results to the increase of cargoes being stored in the warehouses for a long time, and prevents the country from joining the global trade network.

Reducing, or even preventing the increase of the processing time on such a short-term requires precise planning.

Reducing the average stopping time of cargoes in the customs; is one of the main objectives of Irica’s managers.

With the launch of a comprehensive system for Irica, we have been able to decrease the time spent for the custom clearance progress, from 30.3 days to just only 8.76 days. Thus, we have an immense role in reducing customer spending by more than 20%.

The Old system

 Red Yellow Green
65.07 33.25 1.67 Percentage of custom clearance
32.81 26.35 11.13 Discharge time (In Days)
30.3 The average clearance time

The new system

 Red Yellow Green
15.78 63.55 20.67 Percentage of custom clearance
9 9.7 5.66 Discharge time (In Days)
8.76 The average clearance time

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