Kenya Customs Benchmark Value Delayed After Industry Pressure

• The Kenya Revenue Authority has delayed the implementation of higher customs benchmark values until August 21.
• The current benchmark value of Sh2.5 million will remain in force until August 20.
• Importers who believe their consignments attract lower duties can request customs verification and valuation.
• Traders are urged to clear cargo held at ports before August 20 to benefit from the lower benchmark and storage fee waiver.

The agreement between KRA and industry stakeholders has shifted the focus towards predictability, fairness, and a supportive business environment.

The Kenya Revenue Authority (KRA) has agreed to delay the implementation of higher customs benchmark values, giving importers more time to adjust to the changes. This compromise was reached after consultations between KRA, consolidators, clearing agents, and other industry stakeholders over a customs directive prescribing benchmark customs values. The current benchmark value of Sh2.5 million will remain in force until August 20, after which a revised benchmark of Sh3.2 million will take effect from August 21. This delay is expected to provide relief to traders who were affected by the earlier directive issued on July 9.

The agreement between KRA and industry stakeholders has shifted the focus towards predictability, fairness, and a supportive business environment. The parties have agreed to implement a number of resolutions aimed at ensuring that businesses operate with certainty. Importers will be allowed to request customs verification and valuation if they believe their consignments attract lower duties. This move is expected to promote transparency and equity in the payment of taxes.

The Kenya National Chamber of Commerce and Industry (KNCCI) has urged traders to clear cargo currently held at ports before August 20. This is to enable them to benefit from the lower benchmark value and the storage fee waiver. The revised customs benchmark value will take effect on August 21, and traders who fail to clear their cargo by then may face higher costs. It is essential for importers to plan ahead and ensure that they comply with the new regulations to avoid any potential losses.

Lawyers advising importers should note that the revised customs benchmark value of Sh3.2 million will take effect from August 21, and traders are urged to clear cargo held at ports before August 20 to benefit from the lower benchmark and storage fee waiver.

Source: Original reporting via Capital FM