17th February 2025
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Kenya court upholds South Sudan’s mandatory $350 ECTN levy

Author: Chany Ninrew | Published: July 15, 2024

Shipping containers at Mombasa Port. (Photo: Courtesy).

A High Court in Kenya has declined to suspend the implementation of South Sudan’s mandatory directive to charge a $350 per container to all goods destined to South Sudan as levy for the Electronic Cargo Tracking Note (ECTN).

This was in response to a case filed by Kenya International Freight and Warehousing Association (Kifwa), challenging the levy and seeking for the conservatory orders to be issued pending hearing and determination of their petition.

According to The East African, Justice Olga Sewe ruled that the clearing agents under the umbrella of Kifwa had not made a pre-trial evidence disclosure for the judge to review and determine as sufficient to warrant the trial.

Mr. Olga then granted the doctrine of sovereign immunity, meaning South Sudan cannot be sued there unless the Kenyan government has consented to the lawsuit.

On March 1, 2024, the South Sudan Commissioner for Customs Division, Brigadier General Aduot Ajang wrote a notice to clearing agencies introducing the ECTN.

The mandatory levy was adopted following the signing of an agreement between Juba and Ugandan firm Invesco Uganda Limited.

The implementation of the ECTN system, a digital document used to monitor and track cargo movements to ensure compliance with regulations and enhance security, has resulted in delays in cargo clearance at the port and border points.

In June, Kenyan media reported that bulks of commercial cargo heading to South Sudan were stuck at the Port of Mombasa due to a dispute over the mandatory ECTN charges.

And early this month, it was indicated that the tons of cargo destined for South Sudan ranging from building materials to pharmaceuticals, raw materials and used clothes, has been earmarked for auctioning in Kenya if it is not moved by July 31.

 

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