The South Sudan government has relaxed its tax payment demand for importers to facilitate the movement of goods out of the port of Mombasa.

The new directive came in the wake of a standoff between businesses and the South Sudanese taxman over a demand that all payments be done at the port of entry in dollars before goods are moved, a stance that saw Juba-bound cargo stuck at customs bonded warehouses.

South Sudan Revenue Authority (SSRA) commissioner-general Simon Akuei Deng, who defended the move as a way to combat tax fraud and smuggling, has now directed that importers raise invoices at the country’s customs offices in Mombasa and make payments in Juba.“Raise your invoice in our system in Mombasa to detect any form of illegal transaction, while other levies are to be paid afterwards -- which include custom duties, accreditation permit, sales taxes, excise taxes, surcharge and advance business profit tax (BPT) -- in accordance with the law,” Mr Deng said.

On Monday, clearing agents and container freight station owners met with the Kenya Ports Authority (KPA) management to address the delays in clearing of the South Sudan-bound cargo after a week of hardline stances by both sides.

Last week, importers said dozens of containers were stuck at the Port of Mombasa and warehouses as traders and SSRA differed over the mode of clearing cargo.

The traders were protesting against the requirement to pay customs duty at the port entry in dollars instead of South Sudanese pounds, saying it increased the cost of doing business.

Kenya International Freight and Warehousing Association (Kifwa) said pharmaceuticals, food and other goods were stuck among thousands of containers and vehicles since November 20 due to the directive.

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