The Effect Of Customs Clearing Process On Cargo Operation And Logistics Performance In The Case Of Ethiopian Airlines

Customs clearing function plays important role in country development through the planning, implementation and control of processes linked to material, information and financial flows. The main objective of this study was to examine the effect of customs clearing process in cargo operation and logistics performance of Ethiopian airlines cargo section with respect to lodgment of customs declaration, Verification and assessment of documents and Evaluation and release of Goods. Data was collected using observation, interview and questionnaires which is analyzed using SPSS. Descriptive analysis namely percentage, mean and standard deviation; and inferential analysis namely Pearson correlation and multiple linear regression were employed. The study indicated that customs clearing activity strongly affects cargo operation and logistics performance of the airline. The study revealed that lodgment of customs declaration usually started lately for shipments that stayed more than a month in Ethiopian cargo warehouse. The study also showed that there was significant relationship customs clearing activity and warehouse operation through observation and interview results. The study recommended automating customs clearing operation through government bodies and balance cargo operation costs

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