Press Center | Freight Shipping Logistics News
Dec 1, 2009
General
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Kenya Revenue Authority (KRA) has announced additional import measures in a bid to seal loopholes exploited by unscrupulous clearing and forwarding agents to defraud the government of revenue.
Kenya Revenue Authority (KRA) has announced additional import measures in a bid to seal loopholes exploited by unscrupulous clearing and forwarding agents to defraud the government of revenue.
The taxman called on clearing agents and importers to properly and accurately complete their customs declarations to facilitate efficient processing and clearing of cargo.
“It is important that the goods description in form C17B adheres to the standard template,” the authority said on Tuesday.
Must be supported
In an advertisement in the dailies, KRA announced that effective Tuesday, all import declaration form (IDF) applications must be supported by a commercial invoice and not a proforma invoice. One cannot import goods without an IDF.
“Importers are duly notified that with effect from December 1, 2009, all IDF applications must be supported by a commercial invoice and not a proforma to avoid any inconveniences,” said the notice.
This is in response to alleged claims of fraud and under-declaration of imports running into millions of shillings by the agents.
Reacting to the KRA’s announcement, the Kenya International Freight and Warehousing Association (Kifwa) dismissed the regulations as unworkable.
“The regulations go against international rules on imports that allow importers to use proforma invoices to apply for IDF,” Kifwa national vice chairman Peter Mambembe told Nation in a telephone interview.
True value
Suppliers issue commercial invoices which show the commercial (true) value of the imports, after the importer has paid for the goods.
Before KRA announced the new regulations, suppliers were issuing proforma invoices, which show the approximate value of the imports, to importers or clearing agents to enable them apply for the IDF.
According to authority officials, some agents are even obtaining money from importers but remitting only a fraction.
Hardest hit are machinery and equipment imports which are on top tax deductible.
Importers only learn of the fraud on going to make claims from KRA.
The taxman called on clearing agents and importers to properly and accurately complete their customs declarations to facilitate efficient processing and clearing of cargo.
“It is important that the goods description in form C17B adheres to the standard template,” the authority said on Tuesday.
Must be supported
In an advertisement in the dailies, KRA announced that effective Tuesday, all import declaration form (IDF) applications must be supported by a commercial invoice and not a proforma invoice. One cannot import goods without an IDF.
“Importers are duly notified that with effect from December 1, 2009, all IDF applications must be supported by a commercial invoice and not a proforma to avoid any inconveniences,” said the notice.
This is in response to alleged claims of fraud and under-declaration of imports running into millions of shillings by the agents.
Reacting to the KRA’s announcement, the Kenya International Freight and Warehousing Association (Kifwa) dismissed the regulations as unworkable.
“The regulations go against international rules on imports that allow importers to use proforma invoices to apply for IDF,” Kifwa national vice chairman Peter Mambembe told Nation in a telephone interview.
True value
Suppliers issue commercial invoices which show the commercial (true) value of the imports, after the importer has paid for the goods.
Before KRA announced the new regulations, suppliers were issuing proforma invoices, which show the approximate value of the imports, to importers or clearing agents to enable them apply for the IDF.
According to authority officials, some agents are even obtaining money from importers but remitting only a fraction.
Hardest hit are machinery and equipment imports which are on top tax deductible.
Importers only learn of the fraud on going to make claims from KRA.
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