Containers at the Mombasa Port, Kenya on March 6, 2024. The E-Petroleum Accreditation Permit fee on petroleum exports to Juba has led several stakeholders to argue that the levy is illegal and contributes to South Sudan's struggling economy.
South Sudan Revenue Authority (SSRA) has suspended a controversial levy imposed on petroleum products destined for Juba from Kenya, barely seven months after the start of its enforcement, after complaints from businesses and NGOs.
The implementation of the E-petroleum Accreditation Permit fee on petroleum exports to Juba, which started in March this year, sparked an outcry from multiple stakeholders, including truckers, fuel importers and international aid organisations, arguing that the levy is not only illegal but also adds to the financial burden on an already struggling South Sudanese economy.
The added costs are directly impacting fuel prices, and international aid groups fear that the rising fees will disrupt the flow of essential humanitarian supplies into South Sudan.
At the centre of this controversy is a private joint venture involving Crawford Capital International Ltd and its Juba-based subsidiary Capital Pay Ltd contracted by the South Sudanese government to collect the levy from fuel importers at the Kenyan points of exit in Eldoret, Nakuru, Kisumu and Mombasa.
The firms, owned by Kenyan and South Sudanese nationals, are accused of exploiting importers and exporters by imposing high fees for the E-petroleum Accreditation Certificate and fuel marking on trucks headed for South Sudan from Kenyan ports.
As a result, the SSRA on October 5, 2024 wrote to the Ministry of Information, Communication, Technology & Postal Services ordering the removal of all charges and fees related to the Trade Accreditation Permit Certificate.
“The South Sudan Revenue Authority (SSRA) would like to request the removal of all charges and fees related to the Trade Accreditation Permit with immediate effect. However, the certificate should remain mandatory free of charge as mentioned. The reason being the negative impact it is creating against commodity prices in the market,” said Daniel Kon Ater, SSRA Commissioner for Corporate Services.
Dr Ater added that the government of South Sudan would “cater for the cost of the service” as per the agreement signed in March 2024 between the Ministry of Trade, SSRA, electronic cargo tracking firm BSMART and Ramciel for the supply of food items to South Sudan.
The contentious charges comprise $0.03 per litre of fuel for E-petroleum Accreditation Permit and $0.024 per litre for fuel marking.
Cumulatively, these two charges amount to $1,944 for a single fuel truck of 36,000 litres,
The proceeds of these levies are however channelled to sustain operations and maintenance of Crawford Capital Ltd, the South Sudan e-government systems provider, according to details of a civil suit E007 of 2024 filed in Eldoret to challenge the levy in April this year.
The High Court, in a decision on May 3, declined to stop the implementation of the levy.
Crawford had indicated in its submissions in the court that it had been appointed by the government of South Sudan as its customs agent to carry out its clearing procedures, customs control and collect fees related to fuel imports to Juba.
The Kenya Revenue Authority also reiterated that the government of South Sudan had appointed Crawford Capital as its systems provider for the government e-services and that the company had been deployed in oil deports to support the system rollout.
Initially, Crawford Capital demanded an E-petroleum Accreditation Permit fee of $0.05 per litre of export petroleum products from every exporter, but the amount was later revised to $0.03 per litre in April.
This levy was supposed to be paid before the product is loaded at the first point of departure as per the EAC Single Customs Territory guidelines and the KRA was expected to ensure all duties were paid before it could allow the release of the cargo.
Kenya Pipeline Company Ltd said the new levies have the potential of impacting its business.
"I agree that any additional levies will definitely hurt the business if the uptake is impacted,” said Pius Mwendwa, KPC general manager in-charge of finance.
