Boost as agency proposes halving consignment fee for local exporters

Workers sort avocados for export at Naivasha-based Vertical Agro Ltd [Kelvin Karani, Standard]

Kenya Trade Network Agency (KenTrade), the state agency mandated to spearhead cross-border trade, has proposed to slash the $10 (Sh1,300) Unique Consignment Reference (UCR) fee by half to increase cross-border trade.

The reduction of the fee, which is charged per Import Declaration Form (IDF), is expected to lower export costs, particularly for businesses dealing with fresh produce.

The announcement to slash the fee was made during a consultative forum in Nairobi last week hosted by the Kenya International Freight and Forwarding Association (Kifwa).

KenTrade Chief Executive David Ngarama said the draft National Electronic Single Window System (Fee Reduction and Exemption) Regulations, developed by the Ministry of Treasury and Economic Planning, would regularise this proposal.

He said the proposal aims to make Kenya's exports competitive and profitable, especially for businesses dealing with flowers and avocados.

The push to reduce the fee came from the Shippers Council of Eastern Africa (SCEA), which sought to have non-tariff barriers to trade addressed. "It is our view that this proposal will address the concerns raised by stakeholders, particularly the Fresh Produce Association of Kenya, the Kenya Flower Council, and the Association of Avocado Exporters of Kenya, on the impact of the $10 UCR fees on their competitiveness and profitability and will positively impact the industry's performance," said Mr Ngarama.

He said the proposal is in line with the government's broader policy on the promotion of exports. The UCR number was introduced in 2020 and became effective March 1, 2020. The initial charge was $7.5 (Sh750).

At the time, KenTrade explained that the fee applies to importers, exporters and clearing and forwarding agents.

"A unique consignment reference number is a reference number that helps in the identification of a specific consignment and the related documents attached to it. One UCR may have multiple permits or certificates attached to it," read the notice by KenTrade dated January 23, 2020. The notice also announced the Impending Arrival Report (IAR) charge of Sh7,500 per vessel and the registration or annual fee at Sh5,000 for companies that intend to use the Single Window System, where UCR is domiciled. The Single Window System was rolled out in 2013, with the said services being offered to businesses at no cost.