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KRA Rant
kimanimsc
#11 Posted : Thursday, May 19, 2016 3:57:11 PM
Rank: Member

Joined: 5/4/2015
Posts: 241
Location: Kahno
mwania wrote:
I am not so sure if this is the right place to post, but let me do it anyway. I would like to know whether the clearing system where merchandise is bought in China, Europe, Dubai, etc and sent to Kenya via Eldoret Airport where the only charges are freight charges per kilo.. No clear NORMAL Customs charges/ IDF declarations are made. The value of the goods is not taken into account, only the weight. Then, the goods are collected in Eastleigh ready for sale. Now, what is KRA's position on this matter? I understand, that the same KRA inspectors visit shops asking for IDF documents for the goods and they have to be given bribes since the documents are non-existent. I believe, we live in a very unfair society because those who clear their merchandise through the traditional customs clearing model end up paying much much more than their "Eastleigh system" counterparts..


That's how the system is beaten. The Emirates lands at Eldoret Airport (is it every week?) with about 20 trucks lined up for loading ... Customs agents are supposed to clear those goods and sometimes they do get the IDF only that the declared value for a whole Emirates can be much much less.
mwania
#12 Posted : Thursday, May 19, 2016 6:59:06 PM
Rank: Member

Joined: 10/29/2007
Posts: 76
Who allows this system of clearing goods? Is it legal?
kimanimsc
#13 Posted : Thursday, May 19, 2016 9:49:04 PM
Rank: Member

Joined: 5/4/2015
Posts: 241
Location: Kahno
mwania wrote:
Who allows this system of clearing goods? Is it legal?


I may not say much on legality, but the taxman knows there were challenges and requirements for importers, consolidators and the general public are highlighted here: March 29, 2016

Julius Musyoki, the KRA commissioner of customs and border control, said clearance documents for the imports through the airport shall include a packing list with details like name of importer or cargo owner, PIN, passport or national ID, phone contact and physical address.

Other details, he said, are a description of goods, stating quantities and values among others.

“Importers who employ the services of cargo consolidators are advised to submit the required information through their consolidator prior to the arrival of the goods to facilitate prompt clearance,” the commissioner said in a notice.

A consolidator is a person or a company that combines different consignments for different importers in to one lot who delivers each cargo to each consignee.

“The importers, consolidators and the general public are further notified that with effect from April 6, 2016, no importation through the Eldoret Airport will be processed by Customs unless all requirements are fulfilled,” he said.

The airport has in recent years become popular with cargo flights seeking to avoid lengthy queues at the busy Jomo Kenyatta International Airport (JKIA) in Nairobi.
mwania
#14 Posted : Friday, May 20, 2016 9:55:41 AM
Rank: Member

Joined: 10/29/2007
Posts: 76
Thanks. It then appears like a KRA allowed tax avoidance loophole.. implying that it is the best route for traders who want to maximize their profits.. with the risks that,, KRA officers can decide to pounce on your shop any time and ask for non-existent importation documents where bribes will have to be given to the same guys who created the problem. In fact, in which country except Kenya and other third world countries, can this system of cargo consolidators work?

Just like building approvals where the planners refuse to approve but take the bribes and allow developers to build, only to denounce you when things go awry.
timizo
#15 Posted : Friday, May 20, 2016 10:40:08 AM
Rank: Member

Joined: 2/3/2015
Posts: 126
Location: Nairobi
The amount of tax that ha been lost through this system for years is unbelievable. Not just Eldoret.... even Mombasa port. What do you think has build Eastleigh. I can tell you this will never be eliminated until the day we will elect clean guys at the top. If KRA, puts too much pressure, which I doubt because of the enticement with huge bribes from the traders, they will approach the political establishment looking for favours in return to political support
Othelo
#16 Posted : Friday, May 20, 2016 10:43:47 AM
Rank: User

Joined: 1/20/2014
Posts: 3,528
KRA has tried to streamline this but the bigwings always have their way. If you cant beat them, join them..............Better be on the table smile
Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
mwania
#17 Posted : Friday, May 20, 2016 11:17:51 AM
Rank: Member

Joined: 10/29/2007
Posts: 76
Thank you. Kenya must have gone to the dogs a long time ago if such serious tax evasion takes place and never reported anywhere.. and even the opposition never mentions it. Joining them on the table is good in the short term, in the long run, you can even go bankrupt when the same KRA people pounce on you and ask you to account.. again serious bribes will have to be given to KRA guys..
Othelo
#18 Posted : Friday, May 20, 2016 2:46:55 PM
Rank: User

Joined: 1/20/2014
Posts: 3,528
mwania wrote:
Thank you. Kenya must have gone to the dogs a long time ago if such serious tax evasion takes place and never reported anywhere.. and even the opposition never mentions it. Joining them on the table is good in the short term, in the long run, you can even go bankrupt when the same KRA people pounce on you and ask you to account.. again serious bribes will have to be given to KRA guys..

If you are on the table, they will never dare ................... smile
Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
mwania
#19 Posted : Friday, May 20, 2016 4:18:42 PM
Rank: Member

Joined: 10/29/2007
Posts: 76
Interesting, if that is the case.. Joining them is the solution
obiero
#20 Posted : Tuesday, May 24, 2016 7:39:23 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,217
Location: nairobi
May God help us

KQ ABP 4.26
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