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KIGALI INDEPENDENT UNIVERSITY
(ULK)
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FACULTY OF LAW
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Internship Report
Carried out in Rwanda Revenue Authority
In partial
fulfilment of the requirement for the Degree of Bachelor
of
Law
19th January-6th March 2009
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By KABERA Charles
Supervisor: NIZEYIMANA Christian Head of Compliance and
Enforcement
March, 2009
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Dedication
I dedicate this work to
My children Charlotte and Junior, My Late wife Ruth,
My Dear mother Therese,
My Late father Ladislas,
My sister and brothers,
All Creative Thinkers and Researchers
Acknowledgement
The success and accomplishment of this report stems from
efforts and dedication offered by many RRA staff whose support was either
direct or indirect during my internship. I thank all of them for their devotion
and generosity.
Special thanks also go to my Supervisor during internship
period, NIZEYIMANA Christian, for being so friendly and supportive during my
training.
Above all, I owe much tribute to the Almighty God who gave me
a life worthy living and I thank Him for giving me the strength to accomplish
this work.
KABERA Charles
Preface
This report is an outcome of the exercise I conducted during
my internship period at RRA. This was an opportunity for me to put in practise
the legal knowledge I had acquired during my four years of study at ULK.
The purpose of this report is to put in writing the work
experience performed and the learning attained from performing specific tasks
while working in a professional legal environment.
Abbreviations
Asycuda: Automated System for Customs Data
ADR: Association of Declarants in Rwanda
DFID: Department for International Development
DTD: Domestic Tax Department
EACMA: East Africa Customs Management Act
GOR: Government of Rwanda
JILO: Judicial Investigations Liaison Officer JILU: Judicial
Investigations Liaison Unit L&BS: Legal and Board Secretariat MAGERWA:
Magasins Généraux du Rwanda RBS: Rwanda Bureau of Standards
RIEPA: Rwanda Investiment and Export Promotion agency RPD:
Revenue Protection Department
RRA: Rwanda Revenue Authority
SWOT: Strengths, Weaknesses, Opportunities and Threats ULK:
Université Libre de Kigali
Table of Contents
Dedication ...... ...... i
Acknowledgement ...... ...... ...........ii
Preface iii
Abbreviations iv
Chapter One: General Introduction
..... 1
1.1 Background . ..1
1.2 Objectives of Practical Training 1
1.2.1 General Objective 1
1.2.2 Specific objectives ......
...... ..2
1.3 Methods used in carrying out field work
..... 2
1.3.1 Participation 2
1.3.2 Interviews 3
1.3.3 Observation ........ .. .. 3
1.3.4 Documentation 3
1.3.5 Data Processing and Analysis 3
1.4 Limitations encountered during the internship 4
1.4.1 Delayed feedback from some staff .4
1.4.2 Limited time for internship research ..
4
1.5 Activities done during the internship 4
Chapter 2: Presentation of Customs Services Department 6
2.1 History of taxation in Rwanda 6
2.2 Customs Services Department ....... 7
2.1 Mission Statement .... .... ..8
2.2 Objectives of Customs Services Department 8
2.2.1 General Objective 8
2.2.2 Specific Objectives ....
.... 8
2.3 Customs Services Swot Analysis 9
2.3.1 Strength .... ....
......9
2.3.2 Weaknesses 10
2.3.3 Opportunities ..11
2.3.4 Threats 12
Chapter 3: A diagnostic Study of Anti-smuggling Strategy 14
3.1 Introduction 14
3.2 Current status of Smuggling in Rwanda 14
3.3 Classification of smuggling 15
3.4 Causes of Smuggling in Rwanda 16
3.4.1 High rates of duties and taxes .. 16
3.4.2 Limited resources and capacity 16
3.4.3 Smugglers are not named and published 17
3.4.4 Attitudes and perceptions towards taxation 17
3.4.5 Corruption 17
3.4.6 Low literacy and lack of education 18
3.4.7 Technological developments 19
3.4.8 Unemployment especially in border areas 19
3.5 Impact of Smuggling 19
3.5.1 Introduction 19
3.5.2 Loss of revenue ...
..... 20
3.5.3 Distorts market prices and discourages investment 20
3.5.4 Collapse of local industries 20
3.5.5 Unemployment 20
3.5.6 Harmful products ..20
3.6 The Customs Anti-smuggling measures 21
3.6.1 Introduction 21
Chapter Four: Trade Facilitation by means of Pre-Clearance 22
4.1 Introduction 22
4.2 Background 22
4.3 Definition of Pre-clearance 23
4.4 Legislation ...... ...... ......23
4.5 Advantages of pre-clearance ...23
4.5.1 To the trader 23
4.5.2 To customs ...23
4.6 Conditions for pre-clearance 24
4.7 Type of goods that can be considered for Pre-clearance 24
4.8 Risk management 24
4.9 Cancellations and re-imbursements 25
4.10 Procedure for pre-clearance 25
4.10.1 Documents required 25
4.11 Pre-clearance processing 25
3.9.1 Examiners - Long room .25
4.12 Pre-clearance desk 26
4.12.1 Documents 26
4.12.2 Physical Inspection 26
4.12.3 Manifested goods .26
4.13 Pre-clearance audits/reports ...
27
Chapter 5: Prosecution of Customs Offences 28
5.1 Powers to institute prosecution .. 28
5.2 Responsibility to institute prosecution 28
5.3 The objectives of JILU ...... ...... 28
5.3.1 The Main Objective 28
5.3.2 Specific objectives ...... 28
5.4 Roles of JILU in instituting tax Prosecutions 29
5.5 Principles Underlying Prosecution Policy of RRA 30
5.6 Detailed Procedure in instituting prosecution ....31
5.7 Test for Reliability of Evidence 31
Chapter 6: Recommendations and Conclusion 33
6.1 Recommendations . 33
6.1.1 Amendment of Customs Law 33
6.1.2 Number of JILU Staff 33
6.1.3 Provide Powers of Attorney to JILU . . 33
6.1.4 Put in place Anti-smuggling measures 33
6.2 Conclusion 34
References ... ... ..... 36
Annexes 37
Chapter One: General Introduction 1.1
Background
The practical training is an essential exercise that all the
students are required to undergo during a specified period of compulsory
training in private or public organisations during their studies.
The student performance during the training is assessed and
considered as partial fulfilment of the requirements for award of Bachelor s
degree at ULK. However, industrial training is a complement to the knowledge
acquired in the four years of classroom lessons. The training lasted for a
period of seven weeks from 19th January to 6th March 2009.
1.2 Objectives of Practical Training
This internship training is mainly aimed at making a student
gain professional experience in any activity in the field so that the internee
can be able to understand better what was taught in various courses related to
the functions of the institution.
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