The High Court of Kenya has issued a temporary suspension on the enforcement of a $350 (KES 45,850) levy imposed per container for goods bound for South Sudan.
Justice Gregory Mutai, deeming the case urgent, granted the order pending the hearing of an application by clearing agents represented by the Kenya International Freight and Warehousing Association (Kifwa), who are contesting the levy.
The Kenya International Freight and Warehousing Association (Kifwa) alleges that the Mombasa Monitoring Station-National Revenue Authority of South Sudan directed them to pay a fee to a private company in Uganda, Invesco Uganda Limited, for a mandatory Electronic Cargo Tracking Note (ECTN) system.
Kifwa has been instructed to provide the monitoring station with case documents within three days for an inter-parties hearing scheduled for April 9. Lawsuit Filed by Kenya Shipping Agents Against New Cargo Fees in South Sudan
In its petition, Kifwa says that as clearing agents they are licensed by the Commissioner of Customs Kenya to undertake cargo clearance and collection of taxes and levies due to the government.
“As clearing agents, we operate under Kenyan laws and the East Africa Community Customs Management Act and the regulations made thereunder,” the petition states.
Kifwa is pursuing a declaration that the per-unit levy imposed on all imports destined for South Sudan is unconstitutional.
Additionally, it seeks an order to annul the directive and prohibit the Mombasa Monitoring Station-National Revenue Authority of South Sudan from enforcing it.
He also contends that the Regional Electronic Cargo Tracking System, operated by the customs department in Kenya, is a proficient, mandatory, and cost-free cargo monitoring tracking system within East Africa.
They argue that the South Sudan Electronic Cargo Tracking Note (ECTN) serves no meaningful purpose in cargo tracking, apart from revenue collection, as it channels funds to a private account in Uganda.
