Customs to roll out SIGMAT system for transit trade by Q1 2023

The Customs Division of the Ghana Revenue Authority (GRA), in the first quarter of 2023, is expected to begin the use of the SIGMAT, an ECOWAS Customs interconnection project that aims to improve regional integration by automating transit procedures in the West African Sub-Region. SIGMAT, the Regional Customs Network for Transit Trade began pilotage in 2019, and in December 2021, the various heads of state within ECOWAS adopted a supplementary Act on ECOWAS Community Transit, which binds all member-countries to implement the system. The SIGMAT system, which is already being operated in some Francophone countries, is expected to enhance custom-to-custom communication, improve data collection, facilitate trade and secure revenue. The Principal Programme Officer and Head of Division, Tariff and Customs Procedures, ECOWAS Commission, Felix Kwakye, said the SIGMAT system is an improvement over the Interstate Road Transit System which was a paper-based manual system used in ECOWAS countries. Speaking on the Eye on Port programme, Mr. Kwakye said: “For quite a while, ECOWAS has been looking at leveraging ICT to reform the transit regime within West Africa to improve and make it more efficient. It will improve the exchange of messages between customs administrations based on the interconnectivity of the national customs IT systems. ECOWAS wants all 15 member-states to roll unto the system”. He averred that the transit trade has led to a lot apprehension and sense of insecurity for many countries and as such, those countries have historically put in place several measures to secure revenue and maintain security. As a result, a lot of cost and delay is incurred in the transit trade for which the ordinary consumer at the country of destination suffers. According to the ECOWAS official, in order to ensure that international conventions for trade are followed, and trade facilitated as efficiently as possible, SIGMAT is one of the interventions introduced. “At the end of the day, what SIGMAT does is to generate confidence in the transit trade and secure revenue,” he stated. Mr. Kwakye revealed that feedback on revenue generation and trade facilitation has been very possible from countries that have begun the use of the system. According to the Assistant Commissioner in charge of Transit at the Customs Division of GRA, Peter Antobre Ofori, Ghana’s Customs Administration has taken advanced steps to enrol unto the SIGMAT system. “ECOWAS requires all customs administrations to automate their systems. There are some countries – such as Liberia, Sierra Leone and Gambia – yet to automate their systems. Ghana and Nigeria have done that; but we changed our systems, which requires us to restart our networks. Presently, we haven’t been able to roll unto the SIGMAT, but we are in the process. We have established a limited communication with Togo and designed a road map with Côte D’Ivoire, and we are constantly meeting to ensure we roll on.” The Head of the Division, Tariff and Customs Procedures at the ECOWAS Commission, Felix Kwakye, revealed that processes have been undertaken for a ‘community guarantee mechanism’ under the SIGMAT system. He explained that the bonds issued to cover cargoes on transit will have to be valid in every country throughout the entire transit corridor. Again, the guarantor which is selected will have to be represented in all of those countries. The officials indicated that this measure and more, taken under the new ECOWAS regime, are all geared toward checking cargo diversion. The SIGMAT system, according to customs, will come at no extra cost to importers and exporters in the sub-region.