1.3.5 Data Processing and Analysis
The data collected was recorded in a notebook depending on how
it
was judged important. The data obtained was finally recorded in the
internship book for final review after training. The data
collection went hand in hand with interviews. Clarifications were sought from
my Supervisor whenever controversial and complicated issues were being
analysed.
1.4 Limitations encountered during the internship
The internship was to a large extent successfully carried out
except that there were a few constraints especially relating to the
following:
1.4.1 Delayed feedback from some staff
In some instances, some RRA staff would be much occupied
treating urgent cases and the internee could not get sufficient time to collect
data through interviewing.
1.4.2 Limited time for internship research
In most of the time, the internee was given different tasks
depending on the urgency, necessity and priority. This could make it difficult
for the internee to concentrate on area of study and research work.
1.5 Activities done during the internship
During internship training in Customs, many tasks were
performed in different function in order to have the general knowledge of
Customs Operations. The tour in all Customs divisions was carried out and
practically observed how the work is performed there.
However, special attention was given to: conduct a diagnostic
study to develop the Customs Anti-smuggling Strategy(Chapter Three), analyse
trade facilitation initiatives given by Customs services Department based on
the Law in Force(Chapter Four), and consider the prosecution of Customs
offences in case of non-compliance with the law (Chapter Five).
Finally, recommendations were given in areas where weaknesses
were identified in areas covered during the internship (Chapter Five).
Chapter 2: Presentation of Customs Services Department
2.1 History of taxation in Rwanda
One cannot present the Customs Services without highlighting
on the History of Taxation in Rwanda. This history indicates that the first tax
legislation was inherited from colonial regimes. This legislation included the
Ordinance of August 1912 which established graduated tax and tax on real
property. There was another Ordinance of 15th November 1925 adopting
and putting into application the Order issued in Belgium Congo, on 1st June
1925 establishing a profit tax.
The order was amended several times up to the Order of
25th March 1960, meant for Rwanda's development and cash in-flow.
After independence, the first tax legislation passed was that of 2nd
June 1964 governing profit tax, which was repealed and replaced by Law No 8/97
of 26/06/1997 on the Code of Direct Taxes on Different Profits and Professional
incomes.
This law was amended from time to time in order to keep pace
with time and 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).
Other substantive Law governing Customs was enacted on 17th
July 1968 accompanying Ministerial Order of 27th July 1968, putting into
application the Customs Law.
In addition, 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, Rwanda Revenue
Authority that was established by the law no 15/97 of 8th November 1997.
Consequently in the year 2005, the parliament adopted the law
number N°25/2005 of 04/12/2005 on tax procedures, amending Decree-Law of
December 28, 1973 relating to Personal Tax, law n° 06/2001 of January 20,
2001 on the Code of Value Added Tax, and law n° 9/97 of June 26, 1997 on
the Code of Fiscal Procedures.
Similarly, LAW N° 16/2005 OF 18/08/2005 2005 on direct taxes
on income was adopted reviewing Law n° 8/97 of 26/6/1997 on Code of Direct
Taxes on Different Profits and Professional Income, and Law n° 14/98 of
December 18, 1998 establishing the Rwanda Investment Promotion Agency,
especially in its Articles 30, 31 and 34. Con
The parliament also adopted Law N°. 21 of 18/04/2006
establishing the customs system, reviewing the Law of July 17th 1968 concerning
the Customs system as amended and completed to date.
2.2 Customs Services Department
Customs activities started in early 1940 s. By then Customs
was used by Rwanda, Burundi and Belgian Congo. There were no borders that
existed between these countries. After Rwanda acquiring independence, Customs
offices were launched at all Rwandan border posts and at Kanombe International
airport.
The Customs Department aims to contribute to the achievement
of
Rwanda Revenue Authority s objectives by maximising the collection of
all revenues due on im ports, at minimum cost; and to facilitate
trade through providing a responsive and efficient service to stakeholders.
The Department works to ensure that all legally chargeable
revenues are paid through effective administration of the relevant laws in
order to facilitate both international and national trade such that local and
foreign investment is facilitated while ensuring that local society is
protected from importation of hazardous material/goods.
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