Country Report Djibouti November 2006

Foreign trade and payments: Customs revenue shows strong growth

Djibouti's customs revenue grew by 31% between September 2005 and September 2006 under new management arrangements with Dubai Customs World (DCW), a subsidiary of Dubai World. Under the agreement, DCW supervises and develops all customs operations and customs-checking procedures at Djibouti's main entry points. The Djibouti Customs Strategic Development Project aims to modernise and simplify customs procedures, applying international inspection standards and monitoring movement of goods in order to increase customs revenue. DCW is installing state-of-the-art IT systems and conducting training programmes for all categories of employees of Djibouti customs. Djibouti has been under pressure from both the World Trade Organisation and the IMF to improve its customs procedures to make trade fairer and to increase its low rate of government revenue generation in order to tackle its fiscal deficit (May 2006, Foreign trade and payments; November 2005, Economic policy). Privatisation has resulted in a major reorganisation of customs operations, and the large increase in revenue in the first full year of the new arrangements is encouraging.

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