The Kenya Revenue Authority (KRA) has defended its cargo clearance requirements amid concerns raised by clearing agents, motor vehicle dealers and other players in the logistics sector over what they say are challenges affecting the clearance of goods.
In a statement, KRA acknowledged concerns raised by the Kenya International Freight and Warehousing Association (KIFWA), clearing agents, motor vehicle dealers and other stakeholders regarding cargo clearance processes.
The Authority said the requirement for an export declaration in the clearance of imported goods is anchored in law under Section 23B of the Tax Procedures Act.
“As a statutory institution, KRA is mandated to implement and administer legislation enacted by Parliament, while at the same time facilitating legitimate trade and business operations,” the Authority said.
The statement comes amid growing concerns within the freight and motor vehicle sectors over the impact of customs requirements on cargo clearance and business operations.
Clearing agents and dealers have raised concerns over procedures they consider burdensome, with stakeholders seeking clarity and practical solutions to prevent delays and disruptions in the movement of goods.
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KRA, however, said it was committed to balancing enforcement of tax laws with the need to facilitate legitimate trade.
“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,” it said.
The Authority also addressed concerns surrounding the valuation of imported motor vehicles, but declined to comment on the substance of the dispute because the matter is currently before the courts.
KRA said it would refrain from commenting on the specific merits of its valuation methodology in line with the principle of sub judice.
The Authority said it would await the direction and determination of the court before making further comments on the matter.
The valuation of imported vehicles is a significant issue for dealers because customs valuation directly affects the taxes and duties payable before vehicles can be released.
Stakeholders have therefore been seeking clarity over valuation practices and their implications for the motor vehicle import business.
KRA said it remains committed to engaging freight forwarders, clearing agents, motor vehicle dealers and other relevant stakeholders to address operational difficulties.
The Authority said consultations would continue as it seeks solutions that comply with existing laws while addressing practical challenges encountered during cargo clearance.
“Through ongoing consultation and dialogue, KRA will continue to explore practical and lawful solutions to operational challenges affecting cargo clearance and trade,” the statement said.