Sudan: Advance Cargo Declaration System Raises Import Costs

• Sudan has implemented a new Advance Cargo Declaration (ACD) system, requiring pre-arrival data submission for imports, initially at Port Sudan and expanding nationwide.
• Importers and experts criticize the system for increasing costs, raising consumer prices, and involving a foreign UAE-based company in collecting fees and handling sensitive data.
• Concerns include the collection of fees in US dollars, which is seen as weakening the national currency, and potential national security risks from sharing commercial information with a foreign entity.
• Critics argue the system is ill-timed amidst Sudan's wartime conditions and economic struggles, pointing to existing port inefficiencies and the country's use of the ASYCUDA pre-clearance system.
• The new policy is expected to further increase import costs, potentially impacting agricultural production and reducing the competitiveness of Sudanese exports.

The decision to expand the Advance Cargo Declaration system is described as “ill-timed” by Muawiya Abazid, especially given Sudan’s ongoing wartime conditions and severe economic deterioration.

Sudanese authorities have initiated a new Advance Cargo Declaration (ACD) system, which mandates the submission of cargo data and associated documentation prior to the arrival of shipments. This procedural shift, introduced initially at Port Sudan’s Southern Port in Red Sea state, was expanded to encompass other ports and customs crossings across the country in early October. The stated objectives behind the implementation of the Sudan Advance Cargo Declaration system include streamlining customs clearance processes, mitigating waiting periods and storage expenses, fostering digitalization, and generally facilitating international trade.

However, the rollout has been met with significant opposition from Sudanese importers and customs experts. They argue that despite its stated goals, the system is poised to escalate import costs and, consequently, consumer prices for imported goods. A central point of contention revolves around the involvement of a foreign, UAE-based company in collecting the associated fees, a task previously handled by a dedicated department within the customs police.

Critics of the new ACD system express deep concern over the financial implications for businesses and consumers. They highlight that the system imposes additional Sudan customs import fees, which are collected in US dollars. Businessman Muawiya Abazid, a member of the Importers’ Chamber, warned that this practice would further destabilize the national currency, questioning why charges could not be levied in Sudanese pounds. He also pointed out that Sudan is currently struggling to secure essential and strategic goods, making the timing of these new financial burdens particularly problematic.

Beyond the direct fees, the involvement of a UAE company in handling Sudan customs data has raised national security concerns. Opponents fear that providing a foreign entity with sensitive information regarding imported goods, including their origins, pricing, and delivery schedules, could compromise national interests. Customs expert Dafallah Abdullah Yousif, a former member of the Importers’ Chamber, further noted that Sudan already utilizes the ASYCUDA system, a customs management platform implemented under the World Customs Organization, which already incorporates a pre-clearance stage for importers to submit documents.

The decision to expand the Advance Cargo Declaration system is described as “ill-timed” by Muawiya Abazid, especially given Sudan’s ongoing wartime conditions and severe economic deterioration. He highlighted that the dollar exchange rate has surged from SDG2,700 to SDG8,300, exacerbating the financial strain on importers. Abazid also criticized broader economic policies, noting that restrictions imposed by the UAE on shipping and transit through regional ports have already caused container costs to skyrocket from 15,000 to 50,000 dirhams, severely impacting Sudanese trade.

Operational inefficiencies at Sudanese ports, such as Port Sudan import delays, are also a significant concern. Abazid pointed out that customs stations in Sudan often operate for only 25 hours per week, leading to the accumulation of shipments and goods at ports. These delays incur additional charges from shipping companies and the Sea Ports Corporation, further increasing costs for importers. He argued that authorities should prioritize improving existing customs clearance processes, enhancing security at customs stations, protecting property, and conducting regular inspections to address fundamental operational issues, rather than introducing new Sudan trade policy changes that add to the financial burden and risk undermining the competitiveness of Sudanese exports.

Lawyers and compliance officers advising clients on Sudanese trade should be aware of the new Advance Cargo Declaration (ACD) system's controversial implementation, which is increasing import costs and raising data security concerns. They need to understand the new procedural requirements and potential financial burdens for importers, and advise on strategies to mitigate these impacts or engage in advocacy against the system.

Source: Original reporting via Radio Dabanga