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Shippers seek waivers, extended storage period at port

KPA allows a free cargo storage period of four days

In Summary

•The Shippers Council of Eastern Africa want the suspension of container verification charges and extension of free cargo storage period to 10 days.

•It has also requested KRA to suspend penalties for delayed movement of export cargo in Mombasa .

A pile of containers at the Port of Mombasa. /FILE
A pile of containers at the Port of Mombasa. /FILE

Shippers, transporters, and traders want cargo storage periods and charges at the  Mombasa port reviewed to help mitigate operational challenges occasioned by the government curfew.

They also want the Kenya Revenue Authority to streamline its operations and implement a raft of measures to ease cargo clearance and tax compliance.

Through the Shippers Council of Eastern Africa (SCEA), they want the suspension of verification charges of $80 (Sh8,411) and $120 (Sh12,617 )for 20ft and 40ft respectively, which was to be effected from Wednesday.

 
 

In addition, free cargo storage period should be extended from the current four days to 10 days, a move they say will ease the rush to pick containers before the curfew time, which has led to crowding at the Port of Mombasa and the Inland Container Deport-Nairobi.

SCEA which represents the regional logistics and international trader also wants charges on truck alterations, overnight charges and delay penalties for export products waived.

Importers incur charges of between $30 (Sh 3,154) and $90 (Sh9,463 ) per day for cargo that has stayed beyond the free storage period and more than 24 days, depending on the size of the container.

Containers released by KRA and not collected after 24 hours are charged $100 (Sh10,514 )and $200 (Sh21,029 ) per day for 20ft and 40ft respectively.

“We have also asked the Ships Agents Association to impress upon their members to increase the free period for their containers,” chief executive Gilbert Langat notes in the communique seen by the Star.

Export acceptance period should also be extended, SCEA says in the request tabled before Kenya Ports Authority (KPA) acting managing director Rashid Salim and Kenya Revenue Authority(KRA) commissioner of customs and border control Kevin Safari.

To cushion customers from customs-related challenges, the council has requested the taxman to suspend penalties for delayed movement of export cargo in Mombasa.

 

“To support the reduction and crowding at the ICDN, sending of containers for 100 per cent verification and partial verification be stopped especially for known customers with history of compliance,” Langat said.

KRA has also been asked to extend the export acceptance period from the current four hours, which is said to be restrictive under the current operating circumstances.

There is also a need to streamline delivery of letters for the Exemptions Processing Codes applications for manufacturers whose goods are exempted by the Kenya Bureau of Statistics, SCEA says, and expediting passing of entries at KRA's Document Processing Centre.

This, even as traders push for easier bond cancellation which is currently facing hitches due to controls at Times Towers.

“Gaining access to process bond executions, cancellation are too stringent and causing delays,” Langat said.

On Monday, Long Distance Truck Drivers Association said its members are taking longer to deliver cargo and return empty containers to the ports, as drivers cannot move during the 7pm to 5am curfew.

“Transit time has been altered. We are analyzing the full impact of the curfew ” the association's chairman Nicholas Mbugua told the Star.

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