Clearing agents oppose new cargo valuation system

By Patrick Beja

Even though the average cargo stay at the port of Mombasa has significantly been cut, some importers and clearing and forwarding agents have a different story.

They are opposed to the new cargo valuation claiming that it will keep their goods longer at the private Container Freight Stations (CFSs) that are meant to free the port of congestion.

Kenya Ports Authority (KPA) says the average container dwell time stands at 7.3 days in this year against 13.1 days last year, reflecting an improvement of 44.3 per cent or 5.8 days.

"This is mainly attributed to entrenchment of 24/7 working schedule and embracing of more CFSs," says KPA managing director Mr James Mulewa.

Container vessels turnaround time recorded a significant improvement of 3.0 days in the second quarter of this year from 4.5 days recorded same period last year.

warehouse rent

KRA this week reiterated that it was mandatory that a certificate of value (C52) duly signed by importers should be submitted together with other relevant supporting documents for customs clearance.

In public notices in the dailies, Commissioner of Customs Services Wambui Namu said failure to provide the C52, clearance of imported goods would not be possible.

At the same time, she noted that there has been a delay by importers and clearing agents in removing cargo from the various release points and warned that KRA would not waiver of warehouse rent.

"In line with the provisions of the East African Community Customs Management Act 2004, any cargo that remains uncleared after 21 days will automatically attract customs warehouse rent, for which Kenya Revenue Authority will not grant waiver," she said.

Meanwhile, the port users warned that higher valuations of imported containers and vehicles may scare away importers from Mombasa port.

Clearing and forwarding agents say importers cannot budget for profit margins and benefits of reduced prices in the international market cannot trickle down to consumers following uplifted values of goods to raise duties.