They say it will also increase the cost of doing business and delay movement of goods. Shippers Council of Eastern Africa CEO Agayo Ogambi/ HANDOUT Importers, exporters and logistics firms are opposed to the Kenya Revenue Authority's planned rollout of the Advance Cargo Declaration system, warning that the new requirement will disrupt supply chains.
The system, they say, will also increase the cost of doing business and delay movement of goods. The tax authority is set to launch the digital platform on August 3, requiring all containerised cargo destined for Kenyan ports to be declared online before loading at the port of origin.
However, the Shippers Council of Eastern Africa (SCEA), which represents importers, exporters and logistics players, is calling for the implementation to be postponed until October, saying businesses are unprepared and critical operational concerns remain unresolved.
SCEA chief executive Agayo Ogambi said while the objective of enhancing customs risk management is commendable, the implementation timeline is impractical and risks disrupting trade. "The objective of the ACD may be noble, but the way it is being implemented raises more questions than answers," Ogambi said on Thursday.
He questioned why suppliers overseas are being burdened with additional compliance requirements and costs that were not part of existing commercial contracts, and which will end being passed on to consumers, increasing final commodity prices and ultimately the cost of living.
"Suppliers already have performance contracts and responsibilities with Kenyan importers. Varying these requirements at this stage is creating serious frustration and fears," he said. Under the new framework, exporters must apply for a 15-digit ACD reference code through the KRA online portal before cargo is loaded for shipment.
To obtain the code, exporters are required to upload a draft Bill of Lading, commercial invoice, freight invoice and export declaration, after which the ACD reference must be endorsed on the Bill of Lading before cargo is shipped to Kenya.