South Sudan-Uganda border post closed over tax disputes

October 16, 2014 (JUBA) – South Sudan temporarily closed its main Nimule border post with Uganda on Thursday over disputes that arose among the different clearing and forwarding companies.

Customs and migration officials told Sudan Tribune on Thursday that an impromptu decision by authorities to allow only 10 of the 163 registered companies in Nimule operate prompted angry employees to block the border crossing point in protest.

“The clearance agents blocked the road. Police and armed soldiers had to intervene and closed the customs and migrations offices this [Thursday] morning,” said a customs officer who preferred anonymity.

“No truck or passenger vehicle was able to cross from Uganda into South Sudan,” he added.

The deputy minister for internal affairs and his finance counterpart are currently in Nimule as part of ongoing efforts to implement a government directive to reduce numbers of clearance agents at the border.

Officials say only 100 of the over 160 registered companies currently operate.

A recent cabinet resolution demanded that only five companies be allowed to operate in clearing and forwarding business met stiff resistance from hundreds of people involved in it.

About a million South Sudanese pounds is collected daily in customs duties and migration fees, with Nimule border accounting for up to 80% of all imports, officials say.

The government has over the years accused border agents of facilitating fraud between customs officers and wealthy businessmen, causing several losses to its national treasury.

(ST)