The Kenya Ports Authority (KPA) has blocked cargo handlers from the East Africa Community that are not registered with it from transacting at the Port of Mombasa even as authorities tightened tax and security surveillance at the gateway facility.

KPA managing director Gichiri Ndua said although some clearing and forwarding agents as well as cargo declarants had been registered by tax agencies in the respective East Africa Community (EAC) partner states, they remain strangers at the port of Mombasa due to non-registration with the authority.

“The personal or tax identification numbers are the basis by which you are identified in the cargo clearance business process in the region,” Mr Ndua said in a notice.

“This is therefore to implore you to register separate partner accounts with Kenya Ports Authority based on the revenue authority personal or tax identification numbers in order to seamlessly execute your partner state transactions with the port of Mombasa,”
EAC countries are currently implementing a seamless tax collection and cargo clearing system known as Single Customs Territory (SCT) to improve flow of goods and reducing dumping.

“Marine cargo delivery is also dependent on the issuance of a delivery order to the port. In this light we implore you to also have your agencies registered with the shipping agents or lines handling cargo for your clients,” Mr Ndua further said.

Under the SCT deal, clearing agents within EAC have been granted rights to relocate and carry out their duties in any of the partner states as part of a strategy to improve flow of goods and curb dumping.

Importers of commodities covered under the SCT are required to lodge the import declaration forms in their home country and pay relevant taxes first to facilitate the export process.

The tax authorities in the respective countries then issue a road manifest against the import documents submitted electronically by the revenue authority of the importing country.

Kenya, Rwanda and Uganda were the first to take up the SCT arrangement starting April 1, 2014 with Tanzania joining the scheme two months later.

Several commodities including steel, edible oils, confectionery and milk are currently traded between Kenya, Uganda and Rwanda under the SCT platform. Cement, cigarettes and neutral spirit were the first products to be handled under the SCT scheme.

Kenya and Tanzania in June expanded the list of items traded between them under the SCT, raising hope for improved flow of goods and reduced dumping.

All motor vehicles, textiles and fabrics and electronics destined for the Tanzanian market from Kenya are now traded under the SCT arrangement since July 6.

Clearing agents

“Only trucks fitted with electronic cargo tracking system (ECTS) shall be allowed under the Single Customs Territory procedure,” Julius Musyoki, Kenya Revenue Authority (KRA) commissioner for customs and border control said in a notice to traders and clearing agents.

The inclusion of the new items brought to six the number of goods traded between Kenya and Tanzania under the SCT system which allows for joint collection of customs taxes by the EAC partners.

Since June 30, 2014, Tanzania and Kenya have traded in cigarettes, neutral spirits and detergents under the SCT platform. The active participation of Tanzania in the SCT arrangement brings to life EAC’s plans to tighten the noose on tax dodgers and stop dumping of goods.

Kenya is currently tightening controls at the port of Mombasa to seal loopholes that allow for revenue leakage and shipment of contrabands.

The US has also proposed deep changes in Kenya’s port cargo handling procedures to help reduce illicit trade and lock out high-risk consignments.

The US government wants Kenya to adopt the Cargo Targeting System (CTS) for cargo processing, the two nations said in a joint communiqué following the recent visit by President Barack Obama.

The revelation came ahead of a visit to Washington by a senior Kenyan delegation to discuss best practices in port management.

“In addition, the United States commits to work with the government of Kenya to explore the possibility of developing a CTS to receive electronic cargo manifest data from shipping lines to target high-risk shipments based on risk profiles,” the document released by the White House read in part.

Reducing levels

The CTS enables port and security authorities to access electronic cargo manifest data in advance and carry out assessment of risks and target high-risk consignments moving through the supply chain.

This has a benefit to the international trade community by increasing supply chain visibility and security, promoting fair and effective revenue collection, reducing levels of illicit trade and allowing better allocation of resources.

Of late, Kenya has been facing security threats from the Somalia militant group, Al-Shabaab, which has been blamed for recent attacks on civilians and security personnel. There has also been concern about the incessant trafficking of small arms, drugs and contraband sugar worth millions of shillings.

Source: Business Daily

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