Summary:
The Mombasa Monitoring Station-National Revenue Authority of South Sudan clarified that only exporters and importers, not clearing agents, must pay the $350 levy per unit on goods destined for South Sudan. This comes after clearing agents challenged the levy in court, claiming it should not be their responsibility. The authority insists the levy is solely for importers and exporters and is required for the Electronic Cargo Tracking Note system.
In the latest development regarding the contentious $350 (Ksh46,000) levy imposed on goods destined for South Sudan, the Mombasa Monitoring Station-National Revenue Authority of South Sudan has issued a clarification. According to the authority, the obligation to comply with this levy falls solely on exporters and importers, relieving clearing agents of this financial responsibility.
Responding to a petition by clearing agents, the Authority emphasized that the burden of paying this service charge should not fall on clearing agents themselves. “The payment of this service is at all times to be paid by the importer or exporter of cargo into and out of South Sudan respectively,” reads the response filed in court by the Mombasa Monitoring Station-National Revenue Authority of South Sudan.
This clarification comes amidst legal action initiated by clearing agents, represented by the Kenya International Freight and Warehousing Association (Kifwa), who have contested the imposition of the levy. Kifwa alleges that the directive issued by the Mombasa Monitoring Station-National Revenue Authority of South Sudan requires them to channel the funds to a private entity in Uganda, Invesco Uganda Limited, for the Electronic Cargo Tracking Note (ECTN) system.
However, the authority asserts that the ECTN certificate is mandatory for importers, consignees, and exporters of cargo into and from South Sudan. “It is therefore obvious that those who must obtain the ECTN certificate are citizens or companies that are resident in South Sudan,” the response stated.
According to the Mombasa Monitoring Station-National Revenue Authority of South Sudan, the service charge impacts importers and exporters specifically, excluding non-South Sudanese entities. Importers and exporters utilizing clearing agents in any partner state are instructed to remit or pay the levy to the agent for obtaining the ECTN certificate on their behalf.
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South Sudan Cargo Levy: Exporters, Importers to Foot the Bill, Not Clearing Agents
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