A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. In its official release, the KRA confirmed that the new tariff amounts have taken effect from 1 October 2020 under Legal Notice No.194 of 2020. East Africa Community Common External Tariff 2022. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. 14%. Online Tariff Book. Whereas higher tax rates are introduced to protect local industries, other new taxes are introduced to broaden the base. The person who undertakes to pay the bond if the principal fails not only to fulfill the conditions but also to pay the penalty to bond. How you import from and export to Kenya. Effective 1 July 2020, the Gazette introduced amendments to general exemptions from import duty under the Fifth Schedule of the EACCMA covering the following: The current amendment has provided additional clarification as follows: The EAC duty remission scheme allows waiver of duty or refrainment from exacting of duty on Gazetted inputs imported by Gazetted users (inputs and users set forth under the Gazette). What Is The Time Period for Lodging Appeal at The Tax Appeals Tribunal (TAT)? All import and export commercial transactions require commodities or products on Customs Declarations to be classified according to an appropriate Customs Tariff Code. Includes resources where U.S. companies can get information on how to take advantage of these agreements. Copyright 1996 2023, Ernst & Young LLP. Kenya was among nearly 50 African nations signed a deal to create the AfCFTA in Kigali, Rwanda, on March 21, 2018, marking a historic milestone in the economic integration of the continent. an import standards mark (ISM) when applicable; Valid Commercial Invoice from the exporting firm. (https://ustr.gov/). This site contains PDF documents. GNI per capita (formerly GNP per capita) is the gross national income, converted to U.S. dollars using the World Bank Atlas method, divided by the midyear population. Tariff lines and import values (in %) Fruit, vegetables, plants Coffee, tea Cereals & preparations Other agricultural products Dairy products Product groups Animal products MFN applied duties Imports Summary TheInternational Trade Administration,U.S. Department of Commerce, manages this global trade site to provide access to ITA information on promoting trade and investment, strengthening the competitiveness of U.S. industry, and ensuring fair trade and compliance with trade laws and agreements. Under HS 2022 there is a Clarification of the scope of napkins and napkin liners to include all napkins and napkin lines. 1) AllDoing Business 2018rankings have been recalculated to reflect changes to the methodology and revisions of data due to new information. In iCMS (Integrated Customs Management System), a bond reinstatement notice is send to the bond applicant. The agent should present the physical file at the customs station where the goods are domiciled where physical verification is conducted. Under the Harmonized System, goods of international trade are categorized into groups of Chapters, Headings and Subheadings which are identified by specific codes. Valid appeal shall be lodged in writing within thirty days of the date of the decision or omission lodge an application for review of that decision or omission and shall clearly state the grounds of appeal. Other footwear with outer soles and uppers of rubber or Plastics. To Import means to bring or cause to be brought into the Partner States from a foreign country; In accordance with the provisions of Sec.34 of the EACCMA 2004, goods for importation shall be entered (declared) within twenty-one days after the commencement of discharge or in the case of vehicles, on arrival. PDF | On May 18, 2020, Felix Bukachi published Effect of Customs Tariffs on the Financial Performance of Textile and Apparel Firms in Kenya. Search for public Customs Duty Remissions that have been issued. For additional information with respect to this Alert, please contact the following: The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. Customs Tariff by chapter. Some domestically sensitive products in Kenya are excluded from tariff . All import and export commercial transactions require commodities or products on Customs Declarations to be classified according to an appropriate Customs Tariff Code. In accordance with the provisions of Sec.73 of the EACCMA 2004, goods for Exportation shall be entered (declared) in the prescribed manner and the owner furnish customs with the full particulars, supported by documentary evidence, of the goods referred to in the entry. Customs duties can be levied at rates between 0% and 100%, with an average of 25%. To clear any imported goods such as a car, machinery or general merchandise requires the engagement of a licensed customs clearing agent. Foreign Direct Investment Attraction Events, Services for U.S. Companies New to Exporting, Services for U.S. Companies Currently Exporting, Leading Sectors for US Exports & Investments, Information, Communications and Technology (ICT), Licensing Requirements for Professional Services. EAC-CET-2022-VERSION-.pdf (4.132Mb) Title Page (2.142Mb) . Kenya qualifies for duty free access until 2025 to the U.S. market under theAfrican Growth and Opportunity Act. Box 48240 - 00100, The Alternative Dispute Resolution Framework, Taxation for Companies & Partnerships / , International Capacity Development Program (ICDP). Hirschman Herfindahl index is a measure of the dispersion of trade value across an exporters partners. Browse the Customs Tariff Book by Section and Chapter and view all the legal notes. KRA_KESRA (Kenya School of Revenue Administration, 2022-12) Imports into Kenya are subject to a standard VAT rate of 16%, levied on the sum of the CIF value, duty, and other applicable taxes. The Framework will also support the development and competitiveness of key agricultural value chains in Kenya. It is a legal contract executed under a seal whereby the person or persons entering into it bind themselves to pay a specified amount of money if any of conditions of the contract are not satisfied. How much would it cost to import a vehicle when you include import duty, excise tax and customs clearance fees? Merchandise Trade statistics data for Kenya (KEN) including exports and imports, applied tariffs, top exporting and importing countries, effectively applied and MFN tariff along with most exported and imported product groups, along with development indicators such as GDP, GNI per capita, trade balance and trade as percentage of GDP for Most Recent Year. Facing a Foreign Trade AD/CVD or Safeguard Investigation? Official websites use .gov All measures granted to Burundi were decreases in applicable duty rates as follows: Buses for transportation of more than 25 persons and not exceeding 50 persons for one year, Buses for transportation of more than 50 persons for one year. The HS 2022 and the EAC CET 2022 are the latest editions of the HS and EAC CET that are coming into force on 1st of July 2022. Kenya monthly trade data, Please note the exports, imports and tariff data are based on reported data and not gap filled. Kenya is a member of theEACwith a population of approximately 177 million across the countries of Burundi, Kenya, Rwanda, South Sudan and Tanzania. Motor Vehicle Import Duty. The normal rate of VAT is 16%. MC03: Customs Tariff Classification II Programme Objectives Determine tariff codes Utilize the tariff codes in determining tax rates Settle tariff disputes Focus areas for Customs Tariff Classification I include: 1. Times Tower Building Haile Selassie Avenue P. O. Excisable depending on the specific tariff. Footwear incorporating a protective metal toecap. This is the Common External Tariff for the East African Community partner states established under the Article 12 of the Protocol on the Establishment of the East African Community Customs Union (EAC, CU). New Note 1 to Ch. Additional information is available atAfrican, Caribbean, and Pacific Group of States (http://www.acp.int/). Articles like Safety Gumboots. Imports into Kenya are subject to a standard VAT rate of 16%, levied on the sum of the CIF value, duty, and other applicable taxes. Kenya is a party to the Harmonized Systems Convention . - Ensure that Kenya administers customs penalties in . Imports 2020 32.8 0 5.2 0 16.1 30.9 14.1 0 21.8 Non-agricultural products Final bound 0 0 0 0 0.1 0.3 2.3 0 0 . The importer makes the payment to the bank and issues the agent with the official bank slips. It is reviewed every five years in order to reflect changes in technology and international trade patterns. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. This site contains PDF documents. ACP/Cotonou Partnership Agreement Exports from Kenya entering the European Union are entitled to duty reductions and freedom from all quota restrictions. Tariff lines and import values (in %) Fruit, vegetables, plants Coffee, tea Cereals & preparations The current HS codes do not adequately reflect the technological developments in 3D printing. TheInternational Trade Administration,U.S. Department of Commerce, manages this global trade site to provide access to ITA information on promoting trade and investment, strengthening the competitiveness of U.S. industry, and ensuring fair trade and compliance with trade laws and agreements. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. Its validity depends on the use. This system of commodity coding entered into force on the 1st January, 1988. In Kenya, the involvement of the Ministry of Agriculture is now aligned with "Guidelines/framework for requesting, processing and granting of tax exemption/waiver/variation/remission on a national tax, a fee or a charge," issued on 18 October 2019. The person who undertakes to fulfill the conditions of the bond and pay the penalty of the bond if any of the conditions of the bond are not satisfied. USA.gov|FOIA|Privacy Program|EEO Policy|Disclaimer|Information Quality Guidelines |Accessibility, Official Website of the International Trade Administration, Comply with U.S. and Foreign Export Regulations. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. From 2001, these countries include the Euro area, Japan, the United Kingdom, and the United States. In doing so, we aim to address both tariff and non-tariff barriers and to achieve fairer, more balanced trade. 10 of 1977), the Local Industries (Refund of Customs Duties) Act Amendment of the exemption of horticulture, aquaculture, agriculture and floriculture inputs: The new amendment has included agricultural implements and fertilized eggs for incubation as part of imported goods qualifying for exemption from import duty. Estimate Customs Duties using the Duty Estimator. These measures, effected to address specific economic needs, have a two-fold effect; either an increase or a decrease in duty rates as follows: Other of polymers of styrene (Printed plastic labels), Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes of plastics, whether or not in rolls. Full Plastic footwear. 1999 - 2022 East African Community. Exports of goods and services represent the value of all goods and other market services provided to the rest of the world. Application of the GIRs in the following industries: a) Agricultural and food . A bond may be suspended due to various reasons for example, due to failure to account for the transactions covered by the bond. However, the Items exempted from VAT as provided by the VAT Act of 2013 attract a rate of 0%. The latest EAC Trade Policy Review by WTO was scheduled for March 2019. Tariff rates can be estimated by visiting, Kenya - Using an Agent to Sell US Products and Services, Kenya - Agricultural Machinery and Chemicals, Kenya - Information, Communications and Technology (ICT), Kenya - Import Requirements and Documentation, Kenya - Prohibited and Restricted Imports, Kenya - U.S. Banks and Local Correspondent Banks. Personal or Taxpayer Identification Number (PIN certificate), A Certificate of Conformity (CoC) from the. Changes to the CET rate are scheduled to be implemented following a comprehensive review of the EAC CET regime adopted by the Council. United States of America 2020 71 4 6 3.5 0.3 0.3 100.0 100.0 . application of the CET on certain items to allow Kenya apply higher import duty rates (generally) for a period of one year. Motor Cycle Import Duty. Official websites use .gov In July 2020, the United States and Kenya entered negotiations to seek a high standard agreement that will also complement regional integration efforts within the EAC and AfCFTA. Customs Tarrif Classification II . 88 defines the scope of UA, New subheading Note 2 to Ch. Upon stuffing/Verification, all compliant declarations are cleared and released. View/ Open. An import declaration fee of 3.5% and railway development levy of 2%. Tariff rates can be estimated by visiting Kenya Revenue Authority. Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market. How much would it cost to import a bike when you include import duty, excise tax and custom clearance fees? Insulated (including enameled or anodized) wire, cable (including co-axial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled. Heading 38.22 has been amended to cover all types of diagnostic test kits with a view to facilitating the classification and cross-border transportation of such priority medical goods. GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. The changes to the Nomenclature, HS 2022, create a new heading for machines for additive manufacturing (3D printing). Share sensitive information only on official, secure websites. However, sensitive items attract duty higher than 25% (the sensitive items are listed in the schedule 2 of the EAC Common external tariff). Kenya has signed bilateral trade agreements with many countries: Argentina, Bangladesh,Bulgaria, China, Comoros, Congo (DRC), Djibouti, Egypt, Hungary, India, Iraq, Lesotho, Liberia, Netherlands, Nigeria, Pakistan, Poland, Romania, Russia, Rwanda, Somalia, South Korea, Swaziland, Tanzania, Thailand, Zambia, and Zimbabwe. Kenya is a party to the Harmonized Systems Convention that governs the implementation and enforcement of the Harmonised Commodity Description and Coding System. GNI is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad. CUSTOMS HAND BOOK 1(DepartingDEPARTURE INFORMATION passengers from Kenya) Know Before You Leave The following items require a Temporary Importation Form - P45 Items you are taking for repair or alteration. Leather further prepared after tanning Leather further prepared after tanning or crusting, including parchment-dressed leather, of other animals, without wool or hair on, whether or not split, other than leather of heading 41.14. An import declaration fees of 3.5% and Railway development Levy of 2% are levied on value of imports as provided by the miscellaneous Fees and Levies Act of 2016. Goods imported for the use by Armed Forces Shop (AFOS)Rwanda, Clothes dryers imported by licensed hotels, Other tanker trailers and tanker semi-trailers, Other trailers and semi-trailers for the transport of goods, Buses for transportation of more than 25 persons not exceeding 50 persons, Goods imported for use by the Armed Forces Shop (AFOS) for Rwanda. EAC Member States have signed a Protocol to establish a common Customs Union. This is a tariff classification decision by the commissioner of customs. Total population is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship. Inputs of tariff codes 2517.49.00, 7210.61.00 and 3906.90.00 used in the manufacture of roofing tiles The stays of application that aim at increasing duty rates of imported items are geared towards protection of local industries from competing similar imports. All Rights Reserved. Tariff rates can be estimated by visiting Kenya Revenue Authority. Tool box(es) you require for repair work abroad and you intend to bring it back. | Find, read and cite all the research you need on . Each of the EAC Member States, just like any other economy, is challenged every year to broaden the tax base and increase its tax to GDP ratio. 23 dated 20 June 2014 and L.N. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. Foreign Direct Investment Attraction Events, Services for U.S. Companies New to Exporting, Services for U.S. Companies Currently Exporting, Leading Sectors for US Exports & Investments, Information, Communications and Technology (ICT), Licensing Requirements for Professional Services. Economies are ranked on their ease of doing business, from 1189. Number of distinct NTM measures in effect in a country in a particular year. Tariff rates can be estimated by visiting Kenya Revenue Authority. This is a contestation by any person on any decision of the commissioner or his/her representative undertaken in line with the provisions of East African Community Customs Management Act. No. To clear any Exported goods requires the engagement of a licensed customs clearing agent. Other switches for a volt not exceeding 1,000 volts. LPI Score demonstrate comparative performancethe dimensions show on a scale (lowest score to highest score) from 1 to 5 relevant to the possible comparison groupsof all countries (world), region and income group. . However, Sensitive items Attract duty higher than 25%. The Council has approved various stays of application of CET duty rates on select items in Rwanda, effective for the one-year period from 1 July 2020. The formation of a free trade area spanning Africa creates a single market of 1.2bn people with a combined gross domestic product of more than $2 trillion (UNCTAD). Taxes are payable depending on the value of the imported item(s) and the duty rate applicable outlined under different legal documents as given below. On 11 September 2020 the SCTIFI held an extraordinary meeting where it noted there were challenges encountered while undertaking the amendment procedures to Section 112 (2) of EACCMA, and recommended for a mechanism that would enable the Partner States grant Preferential tariff treatment for goods originating from COMESA and SADC. In general, Customs duty is levied at rates between0%and100%, with an average rate of25%. The Council has approved various stays of application of CET duty rates on select items in Uganda, effective for a one-year period from 1 July 2020. PDF format [51.9 MB] Microsoft Access format [zip file - 755 KB] CADEX-formatted. There were no amendments to the existing CET import duty rates. 1401 Constitution Ave NW
Under the Generalized System of Preferences, a wide range of Kenyas manufactured products are entitled to preferential duty treatment in the Australia, Austria, Canada, Finland, Japan, New Zealand, Norway, Sweden, Switzerland, other European countries, and the United States. 
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