Clearing and forwarding agents at the Port of Mombasa have raised concerns over a new export declaration (ED) requirement they say is stalling cargo release, which has prompted the Kenya Revenue Authority (KRA) to issue a clarification on the legal basis of the rule.

The ED was launched on August 3 and enforced from September 1, but agents say it has been applied even on cargo shipped before its launch, which has left thousands of consignments piling up at the port and container freight stations (CFSs).

Speaking on behalf of the agents, Umulkhair Said noted motor vehicle importers already hold an export certificate, which should suffice without additional paperwork.

“We request the commissioner to give an order to release all pending cargo to be cleared as soon as possible, and to withdraw the requirement of the ED,” Said pointed out.

Peter Wambua – a clearing and forwarding company director – said the sector supported KRA’s regulatory role but wanted new policies introduced with consistency and adequate notice.

“Policies introduced should be consistent with the practical work in progress. If today they say, ‘You do this,’ we do it. Tomorrow, they come with a new thing again. It becomes very difficult for us to facilitate trade,” Wambua said.

He added that roughly 5,000 units were accumulating daily across the port, CFSs and inland container depots, with mounting demurrage costs.

“The cost of demurrage…is difficult to estimate. If you are charged about Ksh6,000 per day, you can imagine what that amounts to over two weeks, particularly when you are dealing with about 10,000 units,” Wambua said, warning that the burden would ultimately be passed on to ordinary Kenyans through higher business costs.

Kevin Oluoch, another clearing agent, said the sector’s grievances extended to unclear valuation guidelines for motor vehicles, which he said left agents caught between KRA’s assessments and frustrated clients.

“Clients keep frustrating us, they jump from one place, one clearing agent to the other, thinking that we are cheating them,” Oluoch said.

Responding to the concerns, KRA’s Commissioner for Customs and Border Control Lilian Nyawanda said the export declaration requirement is anchored in law.

“KRA wishes to clarify that the requirement for an export declaration in the clearance of imported goods is anchored in law under Section 23B of the Tax Procedures Act,” Dr Nyawanda explained, noting that as a statutory institution, KRA is obligated to implement legislation by Parliament while facilitating legitimate trade.

On the valuation dispute raised by Oluoch and other agents, Nyawanda said the matter is currently before the courts, and KRA would therefore refrain from commenting on its merits in line with the sub judice principle, pending the court’s determination.

She said KRA is committed to working with stakeholders to ease disruption caused by statutory requirements and would continue consultations with freight forwarders, clearing agents and motor vehicle dealers to find lawful solutions.

• A Tell Media / KNA report / By Ramadhan Najib