Non-Tariff Barriers

Complaint

Complaint number

NTB-001-078  

NTB Type

1.2. Government monopoly in export/import  

Complaint

The government of South Sudan through the Ministry of Transport on 25 Feb 2022 had request the government of Kenya through the Ministry of Transport to facilitate the clearing of all South Sudan cargo at Nairobi Dry Port by moving all containerize cargo by rail and to be cleared at a Private Container Freight Stations (CFS) Autoport Freight Terminals Ltd. When the directive was implemented on 13 June 2022, Stakeholders and the private sector in particulars did not appreciate the move and it see as monopolistic in nature and it did increase the cost of doing business for South Sudan importers, This was brought to the attention of the Ministry of Trade and Industry South Sudan which is the line ministry, The ministry of trade communicated to ministry of transport South Sudan on the implication raise by the private on the cost of import and the monopoly fact, after the consultation between the two ministry in South Sudan, The minister of Trade and Industry wrote two communication letters to the Ministry of Trade Kenya on 23rd May 2022 and Ministry of Transport Kenya on 13 June 2022. However, all the communication had not been responded to from Kenya ministries mention, on 28 July 2022 Members of Parliament summon the ministries of Trade and Transport and resolve to Suspend relocation of South Sudan Cargo via Nairobi to protect South Sudanese and the Minister of Transport South Sudan was requested to revoke his letter to the Ministry of Transport Kenya to allow South Sudanese cargo owner to clear their goods directly from the Port of Mombasa. On 28 July 2022 the Ministry of Transport South Sudan wrote to his counterpart in Kenya requesting the suspension of his previous letter dated 25 Feb 2022. All those communications did not bear fruit on trade facilitation update. Unfortunately on 4th October 2022 the Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works. Wrote a letter to the National Treasury and Planning Kenya informing the Cabinet Secretary on not receiving any formal communication from South Sudan Government and for his guidance all South Sudanese cargo is to be rail and cleared at Nairobi.
 

Status note

The 42nd SCTIFI noted that Kenya reiterated Her commitment to facilitating the transportation of RSS people and cargo through a letter dated 13th December 2022 addressed to the Minister for Transport South Sudan informing him of a presidential directive on clearance of goods and other attendant operational issues at the port of Mombasa copied to all concerned MDAs of Kenya which is being followed to date. Hence the NTB is resolved.  

Progress update note

1. The Republic of South Sudan informed the meeting that, on 25th February 2022, the Republic of South Sudan requested the Republic of Kenya to clear cargo at Nairobi but then realized that the costs were higher in Nairobi than Mombasa by USD 500 - USD 780; the containers are supposed to be dropped back to Mombasa after clearance and drive back an empty truck to pick the cargo. It increases the cost of doing business.
It also causes delay as the RSS felt that SGR doesn’t give priority to RSS cargo. Hence, on 23rd of May, and 28th of July 2022 respectively the RSS requested the Republic of Kenya to revert to the original clearance plan of clearing in Mombasa. Kenya has since not responded to the letters from RSS. The Republic of South Sudan submitted evidence of the letters to the Republic of Kenya.
The Republic of Kenya informed the meeting that the letters had not been received and hence could not take any action. The Republic of Kenya received the copies of the letters as evidence during the RMC meeting.
The meeting agreed that the Republic of Kenya consults and revert clearance of RSS cargo from Nairobi to Mombasa.
2. The Republic of South Sudan informed the Regional meeting that, on 25th February 2022, the Republic of South Sudan requested the Republic of Kenya to clear cargo at Nairobi but then realized that the costs were higher in Nairobi than Mombasa by USD 500 - USD 780; the containers are supposed to be dropped back to Mombasa after clearence and drive back an empty truck to pick the cargo. It increases the cost of doing business. It also caused delay as the RSS felt that SGR doesn’t give priority to RSS cargo. Hence, on 23rd of May, and 28th of July 2022 respectively the RSS requested the Republic of Kenya to revert to the original clearance plan of clearing in Mombasa. Kenya has since not responded to the letters from RSS. The Republic of South Sudan submitted evidence of the letters to the Republic of Kenya. The Republic of Kenya informed the meeting that the letters had not been received and hence could not take any action. The Republic of Kenya received copies of the letters as evidence during the RMC meeting. The meeting agreed that the Republic of Kenya consults and revert clearance of RSS cargo from Nairobi to Mombasa. During the 41st SCTIFI the Republic of Kenya agreed to address the matter by 30th December 2022.
3.The 34th RMC noted that Kenya reiterated Her commitment to facilitating the transportation of RSS people and cargo. The Republic of Kenya issued a letter on that matter following a Presidential directive.The Republic of South Sudan informed that half of the RSS cargo was being cleared at the Port of Mombasa while the other half is cleared at the dry port in Nairobi. This practice of dividing the cargo is still affecting RSS trade and Kenya is requested to clear all the goods in Mombasa as per the Presidential directives. RSS Requests Kenya to share the Presidential Order and also to implement the Presidential Directives and clear all RSS the Cargo in Mombasa.  

Policy or regulatory NTB

Yes 

Location

Kenya: Mombasa sea port (Seaport)  

Reporting Country or Region

 

Country specific trade issue

No  

Date of incident

2022-06-13  

Status

Resolved  

Date of resolution

2023-07-03  

Product Description

Computer-assisted translation

• Arabic
• French
• Portuguese

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Total value

0  

Date reported

2022-10-18 15:16  

Modified

2023-07-03 21:46