The lack of the seals has forced trucks to wait for long hours before leaving the port, incurring more costs.
KTA chairman Newton Wang’oo urged the government to intervene and remove the charges to allow more transporters and traders use the port.
KTA chairman blamed the overnight fee at the port on inefficiencies in government institutions that are meant to facilitate trade.
Transporters hauling cargo from the Port of Mombasa have raised concern over the shortage of Regional Electronic Cargo Tracking Seals (RECTS) that are exclusively owned and operated by the Kenya Revenue Authority (KRA).
The lack of the seals has forced trucks to wait for long hours before leaving the port, incurring more costs.
The Kenya Transporters Association (KTA) said they are paying delay charges levied by the Kenya Ports Authority (KPA) for any truck staying at the port past midnight, attracting charges.
KTA chairman Newton Wang’oo urged the government to intervene and remove the charges to allow more transporters and traders use the port.
“KRA has insisted that all cargo under customs control must be tagged with RECTS that are exclusively owned and operated by KRA. These seals are not enough as a result crippling business due to delay in loading of cargo at border points. Due to the shortage, loaded trucks have to wait for these seals for a period ranging from six hours to 24 hours to be available before tagging to exit,” said Mr Wang’oo.
“KPA imposes overnight charges if trucks do not exit before midnight irrespective of the reasons for not exiting”
Mr Wang’oo noted that the process of applying for waivers on overnight charges “is long, tedious and in fact causes more delay that is why we want respective agencies to work together to resolve the matter”.
KTA chairman blamed the overnight fee at the port on inefficiencies in government institutions that are meant to facilitate trade.
“Delivering essential goods on time is an important component of the economy. It is actually fraudulent for KPA to then impose and demand overnight charges and storage from a transporter who was ready to exit but couldn't due to reasons beyond their control,” said the chairman.
In its statement to KPA and KRA, transporters said there is need to at least double issuance of Rects seals and the waivers should be automatic once the shortage of seals has been confirmed.
KTA also suggested that KRA should allow transporters to use vendors’ seals, or KRA to sell the seals to individual transporters at competitive market prices. The lobby added that the taxman should just control the platform and let vendors operate seals.
“Whenever there is a system that depends on human intervention and a shortage due to demand exceeding supply, there will always be potential for corrupt practices emerging especially if government institutions/corporations are involved. KRA should control the platform and let vendors operate seals,” read part of the KTA statement.
In the meeting held with different stakeholders last week, KPA and KRA promised to intervene to ensure efficiency at the port and different exit points are resolved by providing adequate seals.
According to customs management laws, a truck loaded with goods cannot exit KPA without being tagged with the seal.
At least 1,300 containers leave the Port of Mombasa every day either through standard gauge railway or through road.
