Clearing agents in Kenya have filed a petition in the High Court in Mombasa, challenging a directive issued by the Mombasa Monitoring Station-National Revenue Authority of South Sudan. The directive requires clearing agents to pay $350 per container of cargo destined for South Sudan to a private company in Uganda, Invesco Uganda Limited, for an Electronic Cargo Tracking Note (ECTN) system.
The clearing agents, represented by the Kenya International Freight and Warehousing Association (Kifwa), argue that they are licensed by the Commissioner of Customs in Kenya and are responsible for clearing cargo and collecting taxes and levies. They contend that the directive is unconstitutional and violates their rights to earn a living and to economic empowerment.
Kifwa also argues that the ECTN system is unnecessary and ineffective, as there is already a cargo tracker monitored by the customs department in Kenya, the Regional Electronic Cargo Tracking System, which is efficient and free within East Africa. They allege that the ECTN system is merely a way to collect money and direct it to a private account in Uganda.
The directive has caused delays in the release of goods headed to South Sudan from Mombasa, as trucks are not allowed to leave the port or other border points until the levy is paid. Kifwa claims that these delays are resulting in high demurrage and truck detention charges, which will be borne by Kenyan agents.
Kifwa is seeking a declaration that the directive is unconstitutional and a prohibition on the Mombasa Monitoring Station-National Revenue Authority of South Sudan from enforcing it. They are also seeking an order to quash the directive and a declaration that the ECTN system is inconsequential and illegal.