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NATIONAL UNIVERSITY OF RWANDA
FACULTY OF ECONOMICS AND MANAGEMENT
DEPARTMENT OF
ECONOMICS
OPTION: MONEY AND BANKING
THE REPORT FOR INTERNSHIP CARRIED OUT IN
RWANDA
REVENUE AUTHORITY, CUSTOMS
SERVICES DEPARTMENT
PERIOD: 8th
JUNE - 8th JULY 2009.
PRESENTED BY: NSENGIYUMVA Samson
SUPERVISOR: GAHUTU Emmanuel
Done at KIGALI, 21st July 2009
FOREWORD
The National University of Rwanda and the Faculty of Economic
and Management in particular envisaged the program of a training course for
finalist students in order to familiarize the students with the professional
environment and to supplement the acquired theory by practices. It is within
this framework that we carried out our one month training course in Rwanda
Revenue Authority (RRA), customs services department.
ACKNOWLEDGEMENT
This report is the fruit of combined efforts of several people
who have manifested their will for the realization of it.
Firstly, we thank the Almighty God for his love manifested in our
life,
We make acknowledgement to the administration of Rwanda
Revenue Authority (RRA), the customs services department which has made the
agreement by welcoming us during this training course and its personnel for the
collaboration and assistance expressed to us.
We thank the academic authorities of the NUR whose concern is
to help us to become able to contribute to the sustainable development by
giving us a qualified education.
Finally, we express our gratitude for all those people who
have contributed morally or materially to the success of this training
course.
LIST OF ABBREVIATIONS
ASYCUDA: Advanced/Automatized System for Customs Data
BCR: Banque Commerciale du Rwanda
CET: Common external tariff
CIF: Cost Insurance and Fret
COMESA: Common Market for Eastern and Southern Africa
D/R: Déchargement/Rechargement
DAD: Déchargement A Domicile
DDCOM: Déclaration Douanière COMESA
DSC: Déchargement Sur Camion
DTD: Domestic Tax Department
DTI: Département de Technologie et Information
EA: Entrepôt agricole
EAC: East African Community
EARA: East African Revenue Authorities
EDA: Entrepôt Douanier A
EDB: Entrepôt Douanier B
EDC: Entrepôt Douanier C
FOB: Free On Board
GATT: General Agreement on Tariff and Trade
I.D: Importation Duties
ICHA: Impôt sur le Chiffre d'Affaires
IT: Information Technology
MAGERWA: Magasins Généraux du Rwanda
MINECOFIN: Ministère des Finances et de la
planification Economique
MINADEF: Ministère de la Défense
NUR : National University of Rwanda
RBS: Rwanda Bureau of Standard
RPD: Revenue Protection Department
RRA: Rwanda Revenue Authority
SDV: SCAC, DELMAS and VIELJEUX
T.C: Tax on Consumption
iv
T1: Transit document VAT: Value Added Tax WHT: Withholding tax
v
TABLE OF CONTENT
FOREWORD i
ACKNOWLEDGEMENT ii
LIST OF ABBREVIATIONS iii
TABLE OF CONTENT v
CHAPITRE I. THE GENERAL HISTORICAL VIEW ON TAXES IN
RWANDA 1
I.2. Introduction 1
I.2. Presentation of «Rwanda Revenue Authority» 2
I.2.1. The Objectives of Rwanda Revenue Authority 2
I.2.2. The Missions of Rwanda Revenue Authority 3
I.2.3. The Vision of Rwanda Revenue Authority 3
I.2.4. Rwanda Revenue Authority core strategic values
3
I.2.5. The Organizational Structure of Rwanda Revenue
Authority 4
I.2.6. The Partners of Rwanda Revenue Authority 4
I.3. The Departents of Rwanda Revenue Authority 5
I.3.1. Operational Departments 5
I.3.1.1. Customs and Excise Department 5
I.3.1.2. Domestic Taxes Department 5
I.3.2. Support Departments 6
I.3.2.1. Revenue Protection Department 6
I.3.2.2. Quality Assurance 6
I.3.2.2.a. Mission 6
I.3.2.2.b. Strategic objectives 6
I.3.2.3. Taxpayer Services 7
I.3.2.3.a. Mission Statement 7
I.3.2.3.b. Strategic objectives 7
I.3.2.3.c. Specific Objectives 8
I.3.2.4. Planning and Research 8
I.3.2.4.a. Mission Statement 8
I.3.2.4.b. The Department Strategic Objectives 9
I.3.2.5. Legal and Board Secretariat 9
I.3.2.5.a. Mission Statement 10
I.3.2.5.b. Strategic Objectives 10
I.3.2.6. Human Resources & Administration 10
vi
I.3.2.7. Information Technology 10
I.3.2.7.a. Mission 10
I.3.2.7.b. Strategic Objectives 11
I.3.2.8. Finance Department 11
I.3.2.8.a. Departmental Mission 11
I.3.2.8.b. Objectives 11
I.3.2.8.c. Responsibilities 12
CHAPTER II. RWANDA REVENUE AUTHORITY, CUSTOMS SERVICES
DEPARTMENT 13
II.2. Customs Offices 13
II.2.1. Attributions 15
II.2.2. Objectives of the customs services
department 15
II.3. Organizational Structure of customs services
department 16
CHAP III: PERSONAL EXPERIENCE DURING THE INTERNSHIP IN
17
CUSTOMS SERVICES DEPARTMENT
III.1. Gikondo service unit (long room) and cargo
management unit 17
III.2. Archive Unit 17
III.3. Formality of Clearing 18
III.3.1 Orientation of the goods 18
III.3.2. The Manifest 21
III.3.3. The arrival note 22
III.3.4. Declaration of the goods 22
III.3.5. Preparation and deposit of the declaration
in customs offices 22
III.3.6. The control of the declaration
23
III.3.7 validation of the declaration
23
III.3.8 The verification of the declaration
24
III.3.9. The documentary verification
25
III.3.12 The physical verification
26
III.3.13. Counter-verification 27
III.4. Duties and taxes in Customs services
27
III.5. Encountered constraints and difficulties .
29
IV. CONCLUSION AND RECOMMANDATIONS 30
REFERENCES 32
1
CHAPITRE I. THE GENERAL HISTORICAL VIEW ON TAXES
IN
RWANDA
I.2. Introduction
The history of taxes in Rwanda indicates that the first tax
legislation was inherited from colonial regimes. This tax legislation included
the Ordinance of August 1912, which established graduated tax and tax on real
property. There was another Ordinance on 15th November 1925 adopting and
putting into application the Order issued in Belgian Congo on 1st June 1925,
establishing a profits tax.
This law was amended from time to time in order to comply with
the changing economic environment. Such other legislative instruments include
the 1973 law governing property tax, the tax on license to carry out trade and
professional activities, the law N°. 29/91 of 28th June 1991 on sales tax
/turnover tax (now repealed and replaced by the law N°. 06//2001 of
20/01/2001 on the Code of Value Added Tax (VAT).
A substantive Law governing Customs was enacted on 17th July
1968 accompanying the Ministerial Order of 27th July 1968, putting into
application the Customs Law.
The administration and accountability of taxes and duties in
Rwanda was initially under the Ministry of Finance and Economic Planning. This
was later vested into an independent body - the Rwanda Revenue Authority - that
was established by law no 15/97 of 8th November 1997.
The Rwanda Government announced the idea of setting up the
Rwanda Revenue Authority in February 1997 as a major tax modernization
initiative to try and redress the detrimental impact on the revenue collecting
capacity of the Departments of Tax and Customs shattered by the events of the
1994 war. Rehabilitation of these, therefore, is the background to the
formation of the RRA in the quest to restore procedures and controls by the
Government of Rwanda. Parliament, having reviewed changes to fiscal policy in
1997, made
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preparations, and on 1st January 1998, the autonomous Rwanda
Revenue Authority was launched. The RRA is a central body for the assessment
and collection of specified tax revenue, for administration and enforcement of
the laws relating to such revenue, as well as accounting for all the revenue to
which those laws apply. The RRA is also required to advise the Government on
policy matters relating to revenue whether specified or not.
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