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Customs & International Trade

ICPAK Seminar on Indirect Taxes &

Emerging Issues in Tax

16 May 2017

Presenter: Emmanuel Makheti

Topic: Customs & International Trade

Presenter: Emmanuel Makheti

Content

► Introduction

► Customs Valuation

► Tariff Classification

► INCOTERMS

► Duty Saving Measures

► Export Procedures

► Emerging Trade Issues/ Budget Changes

► Managing Customs Post Clearance Audits

ICPAK Seminar on Indirect Taxes and Emerging Issues in Tax

Introduction


General Customs Compliance and

Reporting

Registration, licensing and

surety management

Tariff Classification

and determination of duty liability

Inward, outward and other relief or

deferment facilities

Valuation and supplier contract

management

Information and Records Management

Focus areas to address customs compliance

o Monitoring of registrations and licences

o Determination of registration,

licensing and surety requirements

o Assess and determine

non-tariff barriers,

duties, levies or controls

o Determine customs

or excise duty liability

o Determine classification

of goods in Harmonised

System

o Manage and monitor use and

compliance with relief

mechanisms

o Assess compliance requirements

for relief mechanisms

o Determination of Relief

mechanisms available

Assess and evaluate supplier

relationships


costs, charges and expenses


or agent’s contracts

Align information and

records management

strategy with tax

compliance requirements

Review and manage

effective retention and

maintenance of records

Analysis and review of surety

and guarantee limits

,

Customs

Origin & Preference

ClassificationValuation

Special Procedures

Determine baseline duty / risk

Reduces / Remove Duty

Strategic overview of Customs

Stakeholders in customs compliance

Traders

Revenue Authorities

Professional advisors

WTO and WCO

Shipping Agents,

Airlines and Carriers

Policy Makers and Regulatory

Bodies

Ports, terminals and LSPs

Financial Services Providers

Clearing Agents


Customs Valuation


Legal Framework

► Section 122 (1), EAC Customs Management Act (EAC

CMA)

“…where imported goods are liable to ad valorem duties,

then the value of such goods shall be in accordance with the

Fourth Schedule and import duties shall be paid on that

value.”

► WTO Agreement on Customs Valuation

► Binding WTO Rulings

► Non binding WCO Rulings


Customs

Value

Freight

• Cost of transport of the

imported goods to port of

importation

• Air cargo – no freight cost

Goods Value

(Normally FOB)

• Price actually

paid or payable

• Adjustments

Insurance

• Actual insurance cost

• Recommended 1.5% of

FOB (+Freight)

Components of customs value


Valuation models at a glance

► Starting point is the Transaction Value Method –Method 1

► Arms length price as indicated on invoice

► Majority of transactions will fall under this method

► Where Transaction Value Method cannot apply, a hierarchical sequence of valuation methods must be adopted until an acceptable alternative method is established

1. Transaction

Value Method

2. Identical Goods Method

3. Similar Goods Method

4. Deductive

Value Method

5. Computed

Value Method

6. Residual / Fall-Back

Method


Valuation Method #1: “Transaction Value”

► “Transaction Value Method” is the default and used for

greater than 95% of trade

► Starting point is the “price actually paid or to be paid

against the sale of the goods for export”

► Normally this is the value as per the commercial invoice

► But be careful

► Transaction Value is subject to mandatory additions and

/ or can be offset by some recognised deductions (e.g.

post importation charges, finance costs etc.)


► The price paid or payable for the imported goods

when sold for export to the customs territory of the

home jurisdiction

Transaction value

Price paid or payable

Sold

For export

Transaction Value: Definition


► The total payment made by the buyer to or for the benefit

of the seller for the imported goods

► Includes all payments made as a condition of the sale of

the imported goods by the buyer

(a) to the seller or

(b) to a third party to satisfy an obligation of the seller

Transaction value: definition


Transaction value: related party transactions

► Transaction value between related parties is acceptable if

► An examination of the circumstances of sale indicates that the

relationship between buyer and seller did not influence the price =

“qualitative approach”► Acceptable are prices set according to industry standards;

► set as for prices to unrelated buyers; or

► adequate to cover all costs plus a profit representative of the firm’s overall profit on

sales of goods of the same class or kind

► The transaction value closely approximates a test value previously

accepted by Customs = “quantitative approach”► TV in sales of identical or similar goods between unrelated parties (~ comparable

uncontrolled pricing)

► !Remark Test values can be adjusted for commercial differences and are

benchmarks only, not substitute values

► The value is also acceptable if it equals or exceeds a computed or deductive value


Valuation Method #1: related parties –summary

Transaction value between related parties is acceptable where:

Qualitative approach

Circumstances of sale indicate that price has not been influenced

Set prices according to industry standards

Set prices as if to an unrelated buyer

Set using a cost plus method

Quantitative approach

Transaction value does not indicate that price has been influenced

Compare to sales price between unrelated parties

Compare to customs value of identical goods


Transfer Pricing and Customs

► For customs purposes, the transfer price has a direct

impact on the determination of customs value.

► WTO Customs Valuation Agreement – set of rules to

determine the customs value

► Customs Authorities focus on potential undervaluation

► Low TP ~ low taxable base for customs valuation ~ low

duty revenue

► For tax purposes, transfer pricing determines the amount

of income that each party earns and thus, the amount of

income tax that is due in both countries of import & export.

► High TP ~ high tax deductible amount ~ low taxable

profit ~ low income tax


Transfer Pricing and Customs Vs Duty uplifts

► Current trend regarding duty uplifts on imports into Kenya.

► Is it mostly based on related parties (i.e Transfer Prices)

and industry comparisons


Valuation Method #1: “Transaction Value”

a. Price paid or payable

B. BUYER OUTLAY

c. “Assists”d. Royalty or Licence

Feee. Proceeds

Transaction Value

Invoice Price

Commission and brokerage

(but not buying

commissions) Cost of

container and packaging

(labor and materials)

The value of goods / services supplied

directly or indirectly by buyer FOC or at

reduced rates for use in connection with the

production / export of the goods

• Materials / component parts

• Tools / dies / moulds

• Engineering, development, artwork,

design work, plans & sketches

“Royalties and licence fees”

• related to the goods

• that the buyer must pay

• either directly or indirectly

as a condition of sale of

the good

“The value of any part of the

proceeds of any subsequent

resale, disposal or use of

the imported goods that

accrues directly or indirectly

to the seller”


Only if Method

#1 cannot be

used

Is there a price for

identical goods?

Is there a price for

similar goods?

Apply Method #3

Similar Goods

(comparable)

Apply Method #4

Deductive Value

(resale minus)

Apply Method #5

Computed (cost

plus)

Fallback Method

#6: Variation of #1

to #5 (reasonable

means)

No No

No

No

Yes Yes

Normally an Option

Alternative valuation methods

Apply Method #2

Identical Goods

(comparable)


Alternative valuation methods:

► Method #2: Transaction value of Identical Goods

► Must be identical merchandise

► Sold for export to the same country of importation, and

► Exported at about the same time

► Adjustments can be made for differences in commercial

level (wholesale vs. retail) and quantity

► Method #3: Transaction value of Similar Goods

► Must be similar merchandise

► Sold for export to the same country of importation, and

► Exported at about the same time

► Adjustments can be made for differences in commercial

level (wholesale vs. retail) and quantity


Alternative valuation methods: deductive/computed methods

► Method #4: Deductive value

► Resale price in the country of importation, less:

► Commissions/profit level

► Transportation and insurance costs

► Customs duties and import taxes

► Value of any port-import processing

► Method #5: Computed value

► Sum of:

► Materials, fabrication and other processing costs

► Profit and general expenses expected in the production of similar

goods

► Normal additions to the transaction value (e.g. commissions, assists,

packing costs)


Alternative valuation methods: fallback method

► Final method used in cases where no sale takes place but

items still move cross border

► Could occur when goods are given away free, such as samples or

items on a trial basis

► Could also occur with leases

► It is essentially deriving the value by any reasonable

means (usually loosely based on the previous methods)

► Typically based on net present value of payments, book

value of assets or independent appraisal for leases


Customs Tariff Classification


► Customs laws require that all imports are “classified”

according to the type of good

► This aids with:

► Assessment of the proper duty to be paid

► Determining whether permission is needed to import the good

► Whether any reduction in duty rates is applicable

► Incorrect classification may result in:

► Over/underpayment of customs duties

► Breaches of import restrictions

► Fines and penalties

Why is proper classification important


Legal Framework

► The HS is structured as follows:

► General Rules for the interpretation of the Harmonized System

► Section Titles and Section Notes

► Chapter Title and Chapter Notes

► Heading (4 digit)

► HS Code (6 digit)


► Integrated part of HS/CN

► Indicate the hierarchy of the available material

► Widen the scope of the headings

► Rules in case different headings apply

The General Interpretative Rules

Manufacturing and Agriculture Sector Training

Case study: Smart phones

► How should an iPhone be classified?

► Mobile telephone

► 8517.11

► Other apparatus for the transmission of

voice, images and data

► 8517.61

► Portable music player

► 8527.13

► Camera

► 8525.80

► Apply the GRIs to these headings


INCOTERMS


INCOTERMSWhat are INCOTERMS?

► Internationally accepted terms defining the responsibilities

of exporters and importers in the arrangement of

shipments and the transfer of liability involved at various

stages of the transaction.

► Incoterms do not cover ownership or the transfer of title of

goods.

Purpose of INCOTERMS:

► Standardization of terms of sales to manage trade

► Describing mainly tasks, costs and risks involved

► Carriage and insurance contractual arrangements

► Reducing uncertainties relating to different interpretations


Incoterms 2010

► 2 distinct classes, according to means of transport

► For any mode or modes of transport

► EXW – Ex Works

► FCA – Free Carrier

► CPT, CIP – Carriage Paid to, Carriage and Insurance Paid

to

► DAT, DAP, DDP – Delivered At Terminal, Delivered At Port,

Delivered Duty Paid

► For sea and inland waterway transport (@named port)

► FAS, FOB -Free Alongside Ship

► CFR – Cost & Freight

► CIF – Cost Insurance Freight


Incoterms 2010

► Why are INCOTERMS important for customs

purposes?


Duty Saving Opportunities


Customs Procedure Codes

Type Description

W700 Warehousing of goods

W701 Approximate warehousing declaration

W703 Warehousing of goods for regional market

W708 Warehousing of line fill for petroleum products

C400 Importation for home use duty/tax fully paid

C403 Importation for home use tax free

C410 Ex-warehouse home use duty/tax fully paid

C411 Ex-warehouse home use, duty/tax paid on goods for regional market

C420 Ex-warehouse home use duty/tax free

C421 Ex-warehouse home use duty/tax exempt

C424 Ex-warehouse home use duty/tax exempt (Project goods)

C425 Ex-warehouse home use tax remitted under inward processing

C430 Home use after temporary importation in un-altered state

C460 Ex-EPZ home use


1. Customs Warehousing

► Enables goods to be stored without payment of import duty for a period

of three to six months

► Public and private warehouses

► Warehouses may be physical premises or a system (“virtual

warehouses”)

► Cost of warehousing excluded from customs value of imported goods

► Goods may be temporarily removed or permanently transferred

► Benefits:

► improved cash flow and

► commercial flexibility

► What is the current situation on Customs bonded warehouses,

Transit sheds and transit go downs?


2. Export Processing Zones

► Governed by the EPZ Authority and EPZ Act

► Goods may be sold locally but duty will be paid. This is on

application and approval by EPZ Authority.

► EPZs have to be approved. Different types of licences

issued:► EPZ developer/operator licenses

► EPZ enterprise licenses

► manufacturing/processing

► commercial activities-bulk breaking, re labelling, trading (100% export)

► export oriented services i.e. Brokerage, consultancy, repairs

► EPZ business service permit for services not eligible for a license but

performed within EPZ

► No minimum level of investment

► Cannot have both manufacturing and commercial license


3. Special Economic Zones► Enacted in Sept 2015 into the laws of Kenya to become

operational on 15 Dec 2015 (Current situation in 2017?)

► Licenses can be issued to:

► Developers

► Operators

► Enterprises

► The types of SEZs that can be established under SEZA

will include:

► business service parks, free port zones, free trade zones,

industrial parks, information communication technology parks,

regional headquarters, science and technology parks, and tourist

and recreation centres.


Cont’ Special Economic Zones

Benefits of SEZs :

► Exemption from all taxes and duties payable under the:

► Excise Duty Act,

► Income Tax Act,

► East African Community Customs

► Management Act

► Value Added Tax Act,

► Stamp duty on the execution of any instrument relating to the

business activities


4. Duty Drawback

► On importation of the raw materials taxes are paid and a

refund is obtained when proof of export and use of the

items is confirmed

► Input / output coefficients may be applied to compute the

refund

► Refund of duty on finished goods imported and later re

exported after taxes / duty has been paid.

► An application is made and approval is received when the

goods are being imported.

► The goods are to remain under Customs Control

► What constitutes Customs Control?


5. EAC Duty Remission Scheme

► Based on EAC Duty Remissions Regulations, 2008. The

following are goods on which duty remission may be

granted upon application to the EAC council of Ministers:

(a) goods imported for use in the manufacture of goods for

export;

(b) such goods imported for use in the manufacture of

approved goods for home consumption as the Council

may, from time to time, by notice in the Gazette,

determine.

► Duty remission is granted for 12 months with an

approved extension of 6 months


Cont’

► Refund of duty on raw materials used in manufacture of

goods for export and selected goods for home use.

► An application is made to National Treasury through KAM

and approval is given via an EAC legal notice.

► Gazetted manufacturers prepare a control application

C56/C60 and have the control approved by National

Treasury.

► A customs bond is executed against an approved control

and a preference exemption code issued.

► The bond is cancelled upon fulfilment of its conditions.


6. Duty Exemptions

► Duty exemptions listed in:► the fifth Schedule of the EACCMA, and

► in the Common External Tariff book / Duty rate at 0%


► Goods can be imported on application for one year and re

exported thereafter.

► Goods must be uniquely identifiable and a bond must be

executed equivalent to the taxes payable.

7. Temporary Importation


Export Procedures


Export Procedures

► Export means to take or cause to take out of a Partner State. This

can happen in different ways:-

Direct Export

Re – Export

► Generally exports are not taxed. A few have export duty.

► Direct Exports

These are locally made from Kenya or originate from Kenya e.g. export of

maize grown in Kenya

An export certificate may be required

► Re exports

First imported then later exported out of Kenya


Exports under the EAC Customs Union

Intra regional Exports and goods from overseas

► With the full implementation of the EAC Customs Union ALL five

EAC member states will become One.

► Entry into the EAC territory using any of the frontiers will be

considered as entry into the community- Single Customs Territory

► Goods moving from one partner state to another will be considered

local and NOT Exports

► No border taxes will be paid and rules of origin will not be necessary

► When export related incentives are approved for manufacturers the

definition of export excludes EAC member states


EAC EMERGING TRADE ISSUES


Issues to consider

► Authorized Economic Operator (AEO status)

► Integrated Customs Management System

► Pre-arrival Clearance (PVAC)

► Import Standardization Marks (ISMs) – Exemptions exist

► Pre Export Verification of Conformity (PVoC) – Exemptions exist

► EAC-COMESA-SADC FTA

► Non Tariff Barriers – implementation of NTB law


1. AEO

Def: party involved in international movement of goods that has been

approved by or on behalf of customs administration as complying with

WCO or equivalent supply chain security standards.

Operators: manufacturers, importers/exporters, brokers, carriers, consolidators, warehouses and distributors.

AEO in Kenya & EAC:

► Kenya: piloted in 2007/08, full rollout in Dec 2010. 109 AEOs (65

importers/exporters, 44 Clearing Agents)

► EAC: piloted in 2011, full rollout in 2015. 9 Regional AEOs from

Kenya including Haco Tigerbrands and Freight in Time.


Clearance Intervention Channels

► Red Channel – 100% cargo examination/document verification

► Yellow Channel – Partial physical verification and scanning

► Green /Blue Channel – Expedited document clearance

► Purple Channel – Pre-Clearance

► First consideration for participation in any new customs initiatives

e.g. pre-arrival clearance and regional AEO programme

► Expedited payment of refund claims

► Client relationship management

Benefits of AEO

Cont’ Benefits of AEO

► Reduced Customs security wherever applicable. Subject to relevant

provisions of law/regulations, consideration for a lower Customs

Security on a case-to-case basis will be for an AEO.

► Guaranteed renewal for customs agent licence in case of clearing

agents. The renewal period is three years instead of current one.

► AEO Importer/Exporter + AEO Clearing agent = AEO transaction

► AEO Importer/Exporter + Non-AEO Clearing agent = Non-AEO

► Non-AEO Importer/exporter + AEO Clearing agent = Non-AEO

Valid AEO Transaction


AEO Accreditation Criteria

Before being accredited to the programme operators must meet the

following minimum requirements;

► Demonstrated Compliance with Customs Requirements: Should not

have any outstanding queries with KRA or any regulatory Agencies

► Satisfactory systems of management of commercial records: Ability

to maintain timely, accurate, complete and verifiable commercial

records

► Financial viability: Financial standing sufficient to fulfil commitments

► Information exchange, access and confidentiality: comprehensive

strategy to secure sensitive information against misuse and

unauthorized access and/or alteration.


AEO Accreditation Criteria

► Security and safety requirements:

► security of cargo, premises, personnel and means of conveyance;

► measures put in place to ensure that the integrity of cargo is maintained

and that premises access controls are at the highest appropriate level;

► established safeguards against unauthorized access to facilities,

conveyances, loading docks and cargo areas that may reasonably affect

the security of those areas in the supply chain under their responsibility.

► Measurement analysis and improvement: ability to measure, analyze

internal processes and be ready to improve on them.

► Education, training and awareness: Existence of staff with Customs

knowledge and operation of AEO Program.


Many Customs systems working

together with Simba to facilitate

clearance of cargo and border

control.

2. Integrated Customs Management System


What is iCMS? New integrated customs management system for automated

clearance of goods. It consolidates all the existing customs systems

under one access point.

ICMS functions will be available through KNESWS

Stakeholder participation informed system requirements.

Need for a Change

► Efficiency in the Cargo Clearance Process

► Re-engineer Customs Processes (best practice)

► Reduce the Complexity associated with Several Systems

► Current System Challenges: Performance, Security


New Scenario

Manifest

Exemptions LicensingDeclaration

Valuation

Bonds

Border

Gates

Risk Mgt

Tariff

All Customs procedures/

modules integrated in one

system for the clearance of

cargo and border control.


Expected Changes Manifest

Declaration/Advance Manifest

(Partial)

Automatic Approval of Manifest.

Export Manifest (COE).

Declaration

Online appointment of clearing

agents by importers.

Online Importer/Exporter Relationship

declaration.

Automatic pass for declarations.

IDF declarations reconciled with the

declarations.

Simplified Declaration (Direct Assessment,

PPO).

Gate/Border Process

Smart Gates.

Licensing

Application of licenses shall be done

online

Approval and processing of the

licenses will be in the system

System Generated licenses to be

sent to the licensees via email

Other Business Areas

Tariff Management: Application for

tariff ruling, Viewing of previous tariff

rulings.

AEO Management: Online

application for accreditation

Refunds Management: Online

Application for refunds, System

processing of refunds

Customs warehouse Management:

Online Auction of goods


3. PAC

Def: Pre-arrival Clearance (PAC) is a customs process which

entails import document processing at the port of importation prior

to the arrival of the vessel.

PAC is a trade facilitation measure in line with Port Charter 2013

incorporating customs procedures to expedite clearance and

release of goods by allowing advance lodging of information

(electronic format) before cargo arrival at the Mombasa Port.

Stakeholders:

• Shipping agents – manifest lodgment

• Clearing agents – entry lodgment

• Taxpayers – payment of taxes

• Transporters – carriage of the goods

• Partner Government Agencies key KPA, KEBS & KENTRADE


Current Process

► Importer informs Prearrival clearance office of their intention to clear

under PAC by forwarding BL details prior to vessel arrival.

► The same is communicated to KPA and an approval for port

clearance is granted.

► Importer/Clearing Agent informs the shipping Agent to amend the BL

for port clearance in case port nomination has not already been done.

► Upon manifest lodgment/approval an entry is lodged and paid for

prior to arrival of the vessel

► Cargo under PAC will be released at the CNT. The removal must

be done within 24 hours after the release.


Cargo Processing under the Pre-Arrival clearance Process

SA

/KN

ES

WS

KR

AC

AK

PA

Start

Vessel

Scheduling(14

days)

Submission of

Baplie/CDL Manifest(5 days)

Manifest

Approval (4

days)

Entry

Lodgement(3

days)

Sight & Customs

Release

DPC pass(2

days)

Direct Delivery

Submission of

Folder(2 days)

Payment of KPA

charges

Payment of

DutiesPick up order Truck Booking

End

Vessel Booking/

IAR(14 days)

Planning

Delivery Order

Vessel Arrival &

Discharge


Some 2017/18 Budget Changes


Customs Import Duties

► Several proposals regarding matters relating to customs have been

submitted to EAC Ministers for Finance aimed at

► promoting industrialization,

► encouraging local investments and

► creating incentives in the agricultural and manufacturing sectors

► Pre-budget consultations will be held in May 2017 after which they will

be communicated through the EAC Gazette and implemented from

1st July 2017

► EAC Common External Tariff is undergoing a comprehensive review

and the final outcome will be released once adopted by the EAC

Council of Ministers


Other Customs DutiesExemption from Duty

► Exemption of Import Declaration Fees for goods imported by an

enterprise licenced under the Special Economic Zones Act

► Exemption from export duty for goods exported by an enterprise

licenced under the SEZ Act

► Importation of White maize will be exempted from import duty for a

period of four months

► Importation of dates during the period of Ramadhan will be done free

of taxes

Others

► Ban on the use, manufacture and importation of all plastic bags for

commercial and household packaging beginning September 2017.

► Proposal to reduce port charges for fisheries vessels by 50%


Implemented Budget ChangesGAZETTE NOTICE NO. 3574 and 2356

Item Date of Importation Importer Treatment

Yellow Maize in

quantities

On or before 31st August

2017

Animal feed

manufacturers

Exempted for use in

animal feed manufacture

White Maize On or before 31st July 2017 Any person Exempted

Dates During month of Ramadan

(May 27 – June 25)

Any person Exempted

Plastic carrier and flat

bags

On or after 28 August 2017 Any person Banned.

Maize importation conditions

► genetically modified in accordance with EU standards;

► moisture content not exceeding 14.5%;

► it’s aflatoxin levels shall not exceed 10 parts per million;

► certificate of conformity


Managing Customs Post Clearance Audits


Introduction

The Customs Post Clearance Audit is conducted by

revenue authority officials pursuant to the provisions of

Sections 235 and 236 of the East African Community

Customs Management Act, 2004

It is conducted on a company’s customs transactions for a

given period of time, with a view to ascertaining

compliance with customs legislation.


Relevant documents for audit

► Audited Financial Statements

► Import & Export entries and supporting documents

► Commercial Invoices

► Packing lists

► Bill of lading/airway bill

► Insurance and freight invoices

► Export documents from country of export

► Evidence of payments to suppliers, customs, shippers, insurance

port authorities, etc

► Bank statements, deposit slips, transfer slips, cheque counterfoils


How to prepare for a Customs audit

► Understand the regulatory audit environment in the

Country

► Kenya has a mixture (Post Clearance Audits, Investigative

Audits, Issue Audits, Audits during Customs Clearance)

► What do audits normally test in Kenya?

► How are audit “candidates” chosen/picked?

► Does the company have a risk control framework to

manage audit risks

► How is your document retention system?ICPAK Seminar on Indirect Taxes and Emerging Issues in Tax

What the audit verifies

Tariff classification

Origin of goods

Exports and re-exports

Customs Valuation

Temporary imports

Temporary exports

Application & use of incoterms


Key issues identified during audits

1. Undervaluation – Additions to Customs value

Declaration to customs authority the value of goods without

adding the listed adjustments to customs value

2. Wrong Classification of goods

Intentionally or unintentionally

3. Wrong declaration of origin of goods or lack of certificate of origin

4. Lack of proof of exports

Export confirmation in Customs ASYCUDA system or lack of

stamped bill of entry at exit point

5. Temporary imports

Not retiring bonds/ returning goods imported

6. Use of INCOTERMS


Customs Offences

Offence Penalty

Removal of a customs seal from a mode of transport

without authority of a proper officer (S.195)

Up to 3 years imprisonment

and/or fine up to USD 2,500

Uncustomed goods Up to 5 years imprisonment

and/or a fine of 50% of dutiable

value

Concealed goods, packaged to deceive or

entry/application for shipment does not correspond to the

goods

Up to 5 years imprisonment or

a fine of 50% of the value of the

goods

False documents Up to 3 years imprisonment or

USD 10,000 fine

General penalty USD 5,000 penalty


► Best way to resolve a customs dispute is to resolve it

before it occurs. At core controversy may involve:

► Where an importer or exporter does not follow clearly established

law

► Where customs law is ambiguous

► Taxpayers can avoid controversy by:

► Actively knowing and clarifying which customs laws apply to their

activities

► Ensuring that you maintain accurate customs documentation and

adopt robust control processes

Guidance on how to avoid and resolve customs disputes


Steps for managing customs controversy:

► Get local assistance from technical teams

► Understand the KRA administrative procedures

available to resolve the dispute

► Weigh the advantages and disadvantages of

each procedure

► Monitor the applicable timeframes and deadlines

► Determine what KRA customs expects in terms of

details and data to be submitted.

Guidance on how to avoid and resolve customs disputes – Cont’d


Questions [email protected]

THANK YOU!


customs & international trade - icpak · customs & international trade ... or excise duty...

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