The Kenya Revenue Authority (KRA) has defended requirements for export declarations in the clearance of imported goods following concerns raised by clearing agents, motor vehicle dealers and other stakeholders over cargo clearance procedures.
The dispute comes amid wider concerns within Kenya’s freight and motor vehicle importation sector over customs clearance processes and their potential impact on the movement of goods and business operations.
Clearing agents and other industry players have raised concerns about requirements they say could create operational difficulties, prompting KRA to issue a clarification on the legal basis of the procedures.
In a press statement issued on Monday, September 7, KRA said it had taken note of concerns raised by the Kenya International Freight and Warehousing Association (KIFWA), clearing agents, motor vehicle dealers and other stakeholders involved in cargo clearance.
The Authority said the requirement for an export declaration when clearing imported goods is not a new administrative measure outside the law, but is anchored in the Tax Procedures Act.
“KRA wishes to clarify that the requirements for an export declaration in the clearance of imported goods is anchored by law under Section 23B of the Tax Procedures Act,” the Authority said.
KRA was required to implement and administer legislation enacted by Parliament while also ensuring that legitimate businesses and trade activities were not unnecessarily disrupted.
The revenue authority acknowledged the concerns raised by stakeholders and said it would continue engaging with those affected to find ways of implementing statutory requirements without creating unnecessary obstacles to legitimate commerce.
“KRA is committed to working closely with affected stakeholders to ensure that the implementation of statutory requirements promotes compliance while minimising unnecessary disruption to legitimate business activities.”
The statement also addressed a separate dispute involving the valuation of imported motor vehicles, an issue that has attracted attention from dealers and other players in the motor vehicle importation industry.
KRA, however, declined to discuss the details of the valuation methodology, saying the matter is currently before the courts.
“With regard to motor vehicle valuation, KRA notes that the matter is currently before the Court. The Authority therefore refrains from commenting on the specific merits of the valuation methodology in accordance with the principle of sub judice, pending the direction and determination of the court,” it said.
The sub judice principle limits public discussion of matters that are actively before the courts, particularly where such commentary could affect or appear to interfere with judicial proceedings.
KRA would continue discussions with freight forwarders, clearing agents, motor vehicle dealers and other stakeholders as it seeks to address operational challenges while remaining within the law.
“KRA remains committed to continuous and constructive engagement with freight forwarders, clearing agents, motor vehicle dealers, and other relevant stakeholders,” the Authority said.
It added that consultations would focus on finding practical solutions to challenges affecting the movement and clearance of cargo.
“Through ongoing consultation and dialogue, KRA will continue to explore practical and lawful solutions to operational challenges affecting cargo clearance and trade.”
The clarification was issued by the Commissioner, Customs and Border Control, with KRA maintaining that compliance with statutory requirements and the facilitation of legitimate trade should continue alongside efforts to resolve concerns raised by industry stakeholders.