The Kenya Revenue Authority (KRA) and South Sudan Revenue Authority (SSRA) have teamed up to crack down on the smuggling of goods into their respective countries as part of efforts to combat tax evasion. The two revenue authorities recently signed a memorandum of understanding to enhance cooperation in customs services, with a specific focus on tracking contraband goods and boosting efficiency in customs operations.
KRA Commissioner General Humphrey Wattanga, SSRA Commissioner Africano Mande Gedima, and SSRA board chairman Stephen Dau have pledged to closely monitor the annual trade volume of over 1.5 million tonnes between Kenya and South Sudan. This collaboration aims to strengthen the capabilities of both customs services in detecting and preventing the illegal flow of goods across borders.
The partnership between KRA and SSRA comes on the heels of a directive from the South Sudanese government requiring all cargo bound for the country to be tagged with an electronic cargo tracking note. These tags are intended to provide authorities with real-time information about the nature, value, and destination of each consignment, thereby reducing the risk of diversion and enhancing transparency in cross-border trade.
In a notice issued on August 13th, Dr. Daniel Kon Ater, the South Sudan Commissioner for Corporate Services, informed stakeholders in Uganda, Kenya, and Tanzania about the new tagging requirement. Since then, SSRA customs officers have been working in collaboration with their counterparts in neighboring countries to ensure that all shipments are properly tagged and monitored.
Despite some pushback from traders who viewed the tagging requirement as an additional financial burden, the court upheld the policy, ruling that the electronic cargo tracking system was a necessary measure to combat smuggling and tax evasion. The use of electronic tags, in conjunction with existing tracking systems, such as the Regional Electronic Cargo Tracking (RECT) system, is seen as a crucial tool in safeguarding customs revenue and promoting fair trade practices in the region.
Overall, the joint efforts of KRA and SSRA reflect a commitment to strengthening border security and combating illicit trade activities that undermine the integrity of the tax system. By working together to enhance customs enforcement and information sharing, Kenya and South Sudan are taking proactive steps to protect their economies and ensure compliance with international trade regulations.
