South Sudan cargo pile up in Mombasa as agents reject levy
Business
By
Willis Oketch
| Mar 24, 2024
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.
READ MORE
Warrant of arrest issued against billionaire Joginder Singh in Sh400m land case
Majority of Kenyans dissatisfied with new CBC curriculum, Infotrak survey
Wetter season expected across Horn of Africa, IGAD Warns
Orphan who benefited from Ebenezer scholarship excels in KCSE
Kenya's 'night runner': How a rural ritual with links to witchcraft became an urban staple
Museveni: still seeking power after 40 years of rule
Phasing out 8-4-4: KCSE exams enter final stretch
Concern over growing inequality as 47,798 candidates score E
Great Wall tenants accuse management of alleged negligence
Parents worry as 8-4-4 learners face neglect amid CBE transition
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.