By Martin Masinde
Consolidated cargo traders and consolidators have welcomed President William Ruto’s intervention in the ongoing dispute over taxation and clearance of consolidated cargo, saying the measures agreed with the Government will provide relief to an industry that plays a critical role in Kenya’s import and trading sector.
The traders, under the Kenya Association of International Cargo Consolidators (KAICC), thanked the President for what they described as his personal intervention in addressing concerns surrounding the taxation and clearance of consolidated cargo.
KAICC Chairman Mohamed Sheikh Abdirahman said the industry appreciated the President’s decision to review several of the measures that had raised concern among consolidators and traders.
“We thank the President for listening to the consolidated cargo community and for his intervention in addressing the concerns that had been raised over taxation and clearance,” Mr Abdirahman said in a statement issued in Nairobi on Thursday.
Among the measures announced is the reduction of the benchmark rate for consolidated sea freight from Sh3.2 million to Sh2 million.
The Government has also retained the previous benchmark rates applicable to ready-made garments, shoes and consolidated air cargo, a move expected to ease pressure on traders dealing in the affected categories.
The association further welcomed the decision to rescind the Advance Cargo Declaration requirement, which had been a major concern for players in the sector.
The Government has also agreed to reduce the transport rate for cargo moving from the Inland Container Depot (ICD) Nairobi to the Bomaline De-consolidation Centre.
According to the consolidators, the Government has also committed to introducing additional de-consolidation centres as part of efforts to improve the efficiency of cargo clearance and distribution.
The measures were reached following consultations between Government officials and representatives of the consolidated cargo industry.
The association specifically recognised the role played by National Assembly Majority Leader Kimani Ichung’wah, Kenya Revenue Authority Commissioner-General Adan Mohamed and Principal Secretary for Trade Dr Juma Mukhwana, alongside other Government officials involved in the engagement.
The traders said they were encouraged by the decision to establish a multi-sector committee to oversee implementation of the agreed measures and address emerging challenges.
The committee is also expected to provide a platform for continued engagement between the Government and industry stakeholders as the new framework takes effect.
Another key undertaking is for the Kenya Revenue Authority (KRA) to prepare a list of items that will be excluded from the classification of consolidated cargo.
The association said this would help bring greater clarity and certainty to traders and consolidators by defining the categories of goods subject to the new framework.
The Government has also agreed to vet and re-register all consolidators, a process the association said would help promote accountability and ensure that legitimate operators remain within the sector.
The industry has, in turn, called on all consolidators and traders to comply fully with the new registration and disclosure requirements.
Mr Abdirahman urged operators to conduct their businesses transparently and within the agreed regulatory framework, saying compliance would be critical to the success of the new arrangements.
“We call on all consolidators and traders to comply fully with the new registration and disclosure requirements, operate transparently within the agreed framework and remain engaged through their associations as implementation proceeds,” he said.
The association said it would continue engaging the Government on the commitments made during the consultations while keeping its members informed of developments through the multi-stakeholder committee.
The statement comes amid heightened attention on the taxation and clearance of consolidated cargo, with traders seeking greater predictability in the cost and procedures involved in importing goods.
Consolidation allows cargo from different traders to be combined for transportation and subsequently separated at a designated de-consolidation centre before reaching individual owners.
For small and medium-sized traders, the system can be an important avenue for accessing international markets without having to ship full containers individually.
The consolidators said they were looking forward to a new working relationship with the Government based on consultation, compliance and mutual accountability.
Mr Abdirahman expressed appreciation to President Ruto for engaging directly with the industry and said the association remained committed to working with Government agencies to ensure the agreed measures are implemented effectively.
“We thank the President once more for listening to the consolidated cargo community and look forward to a partnership built on consultation, compliance and mutual accountability,” he said.
The association said continued dialogue would be essential in resolving any challenges that may arise during implementation and ensuring that the new framework supports both revenue collection and legitimate trade.
END
Comments