South Sudan says exporters of cargo into, or out of its territory must tag it with special seals it will provide, overriding a court challenge mounted by traders to oppose the move.
The new directive came five months after Kenyan clearing and forwarding agents moved to court to compel South Sudan authorities to suspend introduction of a second cargo tracking seal.
Now, Juba has directed East African countries to comply with immediate effect.
In a notice issued on August 13, Dr Daniel Kon Ater, the South Sudan Revenue Authority (SSRA) Commissioner for Corporate Services informed all stakeholders in Uganda, Kenya and Tanzania to tag goods destined to their country, alongside the requisite Electronic Cargo Tracking Note (ECTN).
SSRA said all taxpayers, clearing and forwarding agents and transporters, including non-governmental organisations involved in moving cargo destined to and from South Sudan, should attach South Sudan regionally recognised electronic cargo tracking seal.
“We are asking all involved in cargo handling for both dry and wet ports transit cargo destined to and from South Sudan to comply; failure to do so will result in a fine at the border entry points by the SSRA division office,” said Dr Ater.
In March this year, the SSRA introduced its tags on top of those offered by the Regional Electronic Cargo Tracking (RECT), at $350 per consignment. It caused protest among stakeholders, and the Kenya clearing and forwarding agents to move to court. However, the High Court sitting in Mombasa declined to stop the authority from implementing the order.
This week, Kenya International Freight and Warehouse Association Chairman Roy Mwanthi said: “We negotiated for collection of the funds at Nimule instead of Mombasa. It was a relief to clearing and forwarding agents.”
Juba argues the seals help to monitor how cargo is moved as it gives the authorities quick and clear details about what the cargo is, how much it’s worth and its destination, thus helping to stop illegal activities like under-reporting the value of goods and smuggling.
Kenyan clearing and forwarding agents had blamed the introduction of the ECTN for delayed cargo clearance. They were often required to pay ECTN fees alongside clearance charges. But they also protested the payment of $350 to a private firm appointed by SSRA for the seals.
