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

The Commissioner General of South Sudan Revenue Authority has issued several directives to importers on tax payment procedures to counter allegations of tax fraud and goods smuggling.

This followed reports that bulks of cargo headed for South Sudan is stuck at Port Mombasa due to disagreements between importers and the revenue agency.

According to The Standard newspaper, the standoff between SSRA and importers was over which currency should be used to pay taxes.

It reported that the SSRA is ordering importers to pay their tax in US currency before any cargo heading to South Sudan leaves the port, while the importers wish to pay the taxes in South Sudan pounds.

In a video statement, revenue chief Simon Akuei Deng instructed importers from the international market to raise an invoice at the South Sudan customs office in Mombasa in what it said is a measure to detect fraudulent tax receipts.

He directed importers to present their documents to the revenue office for verification after which they will be issued an invoice to be sent to Juba for payment in banks for the goods to be released from the Kenya port.

“We are telling our people, the business community that is importing from the international market to be able to raise invoices in Mombasa,” he said.

“So I want to make it clear that you raise your invoice in our system there. Once the container comes out from the sea, you present your documents to our team in South Sudan office in Mombasa.”

The other levies to be paid afterwards include custom duties, accreditation permit, sales taxes, excise taxes, side charge and advanced Business Profit Tax (BPT) in accordance with the law.

Mr. Akuei said the new system will also address goods smuggling and dumping.

Kenyan clearing and forwarding agents who have been contracted to clear the goods in question complained that a stand off between the two parties over the currency to be used to pay taxes was the cause of delay in removing the cargo from the port.

In the last two years, South Sudan goods imported through Mombasa had been delayed at the port multiple times over levies related disputes between the revenue agency and importers or clearing agents.

In June 2024, bulks of commercial cargo headed to South Sudan were stuck at Mombasa Port due to a dispute over the mandatory charges on Electronic Cargo Tracking Note (ECTN).

The stalemate came after Kenya customs agents rejected the ECTN introduced by the SSRA for goods bound for the country.