The Kenya Revenue Authority has defended its cargo clearance requirements, insisting that the rules are necessary even as businesses complain about the difficulties they face. The authority says it understands the concerns but has to follow the law.
Clearing agents, motor vehicle dealers, and other players in the logistics sector have been raising complaints about what they say are burdensome procedures. These stakeholders argue that the clearance processes are causing unnecessary delays and making it hard for businesses to operate smoothly.
In a recent statement, KRA acknowledged the issues being raised by the Kenya International Freight and Warehousing Association, clearing agents, motor vehicle dealers, and other stakeholders. The authority says it has been listening to their concerns about how cargo clearance procedures affect their work.
The real issue at the heart of all this is the valuation of imported vehicles. When goods come into the country, customs officials have to determine their value because this directly affects how much tax and duty businesses have to pay before the vehicles can be released. This is why the valuation process matters so much to dealers and everyone else involved in importing cars.
KRA explained that the requirement for an export declaration when clearing imported goods is actually based on the law. Specifically, it is anchored in Section 23B of the Tax Procedures Act. The authority says it is just implementing what Parliament has already put into law.
According to KRA’s statement, as a government body that was created by law, it has a duty to enforce and administer the legislation that Parliament has passed. At the same time though, the authority says it is also supposed to help legitimate businesses carry out their work without unnecessary problems.
The concerns about customs clearance procedures come at a time when both the freight and motor vehicle sectors are worried about how the new rules are affecting their business operations. Many players in these sectors have been asking for clearer guidance on how the clearance process works and what they can do to avoid delays that hurt their business.
KRA says it is committed to working with freight forwarders, clearing agents, motor vehicle dealers, and all other relevant stakeholders to fix the operational problems they are facing. The authority promises that consultations will continue as it looks for ways to solve these practical challenges.
The authority also said it remains committed to balancing the need to enforce tax laws with the need to allow legitimate trade to happen smoothly. It said this is something it takes seriously and that it is working closely with affected businesses to find solutions that comply with the law while reducing unnecessary disruption.
Regarding the specific issue of how imported vehicles are valued, KRA declined to comment on the details since the matter is currently being handled by the courts. The authority said it would hold off on making any further comments until the court has made its decision on the matter.
KRA said it is committed to ensuring that when businesses follow the legal requirements, compliance happens without unnecessary trouble. The authority emphasized that this balance between enforcing the law and supporting business is central to how it operates.
The statement represents KRA’s effort to defend its position while also showing that it understands the real problems facing businesses. It is clear that while the authority is not backing down from its requirements, it recognizes that stakeholders need practical solutions and ongoing dialogue to make the system work better for everyone involved in cargo clearance and trade.
