South Sudan cargo pile up in Mombasa as agents reject levy

Business
By Willis Oketch | Mar 24, 2024
Importers and freight forwarders protest near Kenya Ports Authority's gate in Mombasa County on October 7, 2022. [File, Standard]

Cargo heading to South Sudan is piling up at the Port of Mombasa due to a dispute over a new mandatory tax.

This is after Kenya customs agents rejected the electronic cargo tracking note (ECTN) introduced by the South Sudan Revenue Authority Commission last week.

On Saturday, Kenya International Freight and Warehouse Association (KIFWA) said the new levy has led to the delay in the clearing of cargo destined for South Sudan and could lead to congestion at the Port of Mombasa.

KIFWA chairman Roy Mwanthi said since its introduction, more than 1,000 containers destined for South Sudan are lying at the port.

Mwanthi said the local customs agents were being forced to collect the prerequisite service charges of Sh46,375 ($350) on behalf of the South Sudan Revenue Authority. He insisted that his members had declined to implement the order because it was against Kenyan laws.

The clearing and forwarding agents were reacting to South Sudan Commissioner for Custom Division Brigader General Aduot Ajang Aduot's notice dated March 1 this year to clearing agencies.

The notice says; "I am honored to introduce to you an initiative by the government of South Sudan to roll out to a mandatory Electronic Cargo Tracking Note (ECTN) for all imports to South Sudan and exports from South Sudan.

"Following the signing of a memorandum of understanding between the Government of South Sudan through the Ministry of Finance and Planning and Invesco Uganda Limited, an Electronic Cargo Tracking Note will be mandatory for all goods destined to South Sudan and all goods leaving South Sudan with immediate effect," said part of the notice.

All clearing agencies have been instructed to enforce these regulations through partner Invesco Uganda company to ensure that goods comply with the new regulation.

"Therefore, all importers and exporters must comply and in addition, pay the mandatory service charge of 350 us dollars accordingly," states part of the notice.

Share this story
NSE defies unrest, economic hardships to post huge rebound
NSE has implemented reforms aimed at enhancing market depth, efficiency and transparency, generally improving the investment climate and restoring investor confidence.
How wearable technology is revolutionising transactions
As demand for wearables continues to grow influenced by modern lifestyle, culture and technology, as consumers embrace more frictionless transactions.
Kenya's growing dilemma between job creation and labour export
The number of young people being churned out of the education system is not equal to the number of job opportunities being created.
Firms in fresh fight with KAA over airport parking tender
Two private companies have moved to court over the parking fee collection contract at JKIA worth over Sh2 billion, citing defiance of court orders by Kenya Airports Authority.
Tea exports dropped by almost 5 million kilos in April
In April, the country exported 33.91 million kilos against the production of 51.78 million kilos by the growers across the country.
.
RECOMMENDED NEWS