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Cost of clearing cargo at Mombasa port down 30%

10 August 2015, 15:17 Mike Munga

Nairobi - Reduced time of transit of goods from the port of Mombasa to various destinations within the EAC and the cost of transacting custom duties are major achievements made since the inception of Single Customs Territory (SCT) implemented by EAC two years ago, KRA Commissioner General John Njiraini has said.

The commissioners who met to discuss risks of SCT said the cost of clearing cargo at the port of Mombasa and of transport along the Northern Corridor has gone down by 30 percent since the implementation of the East African SCT.

Njiraini, in a joint press conference held in Nairobi said they will continue deliberating on how to improve the single custom territory in order to improve business in the member countries.

"The East African Community, Single Customs Territory has addressed revenue leakages and none of its member states has made a loss since its inception two years ago," he said.

He added that they are ensuring that custom bonding system is put in place to ensure that goods that do not reach the intended destinations are retrieved to avert losses.

Read Also: CBK holds rates against market expectations

Rwanda Commissioner General, Richard Tusabe said trading across borders has been a problem because of the time and cost of moving the goods.

"We are here to see how to enhance what we have achieved so far and how to improve trading in the respective countries," he said, adding that they are currently using one bond rather than the three that were in place before the introduction of SCT.

Some of the major challenges experienced is integration of the separate policies of member states.

Also, traders have not been fully synthesized to take advantages that are available.

Other commissioners who spoke at the meeting are Uganda and Tanzania Commissioner Generals, Doris Akol and Lusekelo Mwaseba, Burundi Deputy Commissioner General Edmond Bizabigomba and Director of Customs Kenneth Baga Muhunda.

The EAC single custom territory was put in place in order to have a common law and ensures the region has uniform rates and administration system for internal taxes.

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