An import declaration fee of 3.5% and railway development levy of 2%. Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market. No. LPI 2016 ranks 160 countries on six dimensions of trade -- including customs performance, infrastructure quality, and timeliness of shipments -- that have increasingly been recognized as important to development. 88 to clarify the scope of subheadings under new heading 88.06, New heading 88.07 (Parts of headings 88.01, 88.02 and 88.06). 88 defines the scope of UA, New subheading Note 2 to Ch. The agent should present the physical file at the customs station where the goods are domiciled where physical verification is conducted. Interpretative Rules 3-4 in details 2. How many Amendments Have been made In 2022? 472 (1972)), the Excise Tariff Act (Cap. 1) Mirror Exports is considered for export data 2) All products at HS 6 digits are considered 3) Computation is performed at Country-Product level and aggregated to country level, Annual percentage growth rate of the worlds trade value (export or import), by sector, at market prices in current U.S. dollars, 1) Mirror Exports is considered 2)Growth for a given year is computed with respect to the previous year, Annual percentage growth rate of the countrys trade value (export or import), by sector, at market prices in current U.S. dollars. Kenya is a party to the Harmonized Systems Convention that governs the implementation and enforcement of the Harmonised Commodity Description and Coding System. 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. Classification operates as part of the international Harmonised Commodity and Coding System, under the WCO Harmonised System Convention. 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. Gazetted Points of Entry/Exit into Kenya. 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. Last published date: 2022-08-19 Kenya applies tariffs based on the international harmonized system (HS) of product classification and applies duties and tariffs of the EAC Common External Tariff. 1) All traded products at HS 6 digits are considered for this computation. narcotics, ozone layer depleting chemicals, Remove trade barriers and facilitating the international trade, Two (2) i.e. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. U.S. Department of Commerce U.S. EAC Trade and Investment Framework Agreement (TIFA): The United States signed Trade and Investment Framework Agreements (TIFA) with the EAC in 2008, and with COMESA in 2001. Customs Tariff complete. The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. All rights reserved. Entry Declaration, Payment of Taxes and Processing. 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. For the classification of the goods into a Customs Tariff, there are six (6) fundamental rules, the General Rules of Interpretation (GRI). This appeal shall satisfy requirements of section 229 (1), (2), (3), (4), (5) and (6). The latest EAC Trade Policy Review by WTO was scheduled for March 2019. Describes trade agreements this country is a party to. 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. Kenya is a member of theEACwith a population of approximately 177 million across the countries of Burundi, Kenya, Rwanda, South Sudan and Tanzania. It is also a member of COMESA at https://www.comesa.int/ with a population of approximately 540 million. Economic Policy & Debt: Balance of payments: Current account: Goods, services & income. Data are in current U.S. dollars. To clear any Exported goods requires the engagement of a licensed customs clearing agent. Clicking on a link will load the corresponding Adobe .pdf file. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. 1) Product 'Total' is used for this computation. For a better picture of trade patterns, Food and Agriculture Organization (FAO) requested that coffins be specifically provided for under the HS 2022. applies duties and tariffs of the East African Community (EAC) Common External Tariff. Tariff rates can be estimated by visiting, Foreign Safeguard Activity Involving U.S. Exports, 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. The sensitive items are listed in the schedule 2 of the EAC Common External tariff. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP. Creation of new Note 5 to Chapter 85 to define the scope of Smartphones, One-dash subheadings 8704.2 and 8704.3 have been amended and new subheadings 8704.4 to 8704.60 have been created to provide separately for certain electric vehicles. Waterproof footwear with outer soles and uppers of rubber or of plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes. Under Which Section Of The Customs Law Are The Appeals Provided? 10 of 2020 (the Gazette).1 The Gazette highlights changes to the EAC Customs Management Act, 2004 (EACCMA) and the EAC Common External Tariff (EAC CET) with effect from 1 July 2020. What Are The New Categories Of Goods Appearing For The First Time In Hs 2022? Cameras and accessories for filming outside the country. the period between 1 January 2020 to 30 June 2021 to . Estimate Customs Duties using the Duty Estimator. Amendment of the exemption of relief goods imported for emergency use in specific areas where natural disaster/calamity has occurred to include any supplies for diagnosis, prevention, treatment, and management of epidemics, pandemics and health hazards as recommended by the competent authority in the Ministry responsible for Health. No. The tariff follows the introduction of nine quality standards by the Kenya Bureau of Standards ( KEBS) in December 2020 to help curb the import of fake leather footwear and inferior leather products into the country that do not comply with East African Community ( EAC) standards. No. Changes to the CET rate are scheduled to be implemented following a comprehensive review of the EAC CET regime adopted by the Council. Kenya qualifies for duty free access until 2025 to the U.S. market under theAfrican Growth and Opportunity Act. 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. The current HS codes do not adequately reflect the technological developments in 3D printing. PDF | On May 18, 2020, Felix Bukachi published Effect of Customs Tariffs on the Financial Performance of Textile and Apparel Firms in Kenya. Economic Policy & Debt: National accounts: Shares of GDP & other. How Many New Headings Have Been Introduced In The HS 2022? Motor Cycle Import Duty. There is an insertion in the Nomenclature of Smartphones , showing the importance of Smartphones in trade, as well as the society as a whole. Additional information is available atAfrican, Caribbean, and Pacific Group of States (http://www.acp.int/). Kenya 2020 128 10 16 27.1 50.7 50.7 100.0 100.0 3. Please check the, Latest trade data available from various sources, The data from various sources are not from the same year, For viewing trade, tariff data for country or region by year click here, Top 5 Products exports imports at HS 6 digit level, Overall Trade Restrictiveness Index (OTRI), Services Service Policy Restrictive Database (SPRD), Country Policy and Institutional Assessment (CPIA), GNI per capita, Atlas method (current US$). Upon stuffing/Verification, all compliant declarations are cleared and released. Official websites use .gov It is likely that the need to broaden the tax base will continue in the foreseeable future until countries become less reliant on borrowed funds to finance their budgets. In general, Customs duty is levied at rates between0%and100%, with an average rate of25%. The initial L.N. The Harmonized Commodity Description and Coding System, commonly referred to as the Harmonised System (HS), is a multipurpose international product nomenclature developed by the World Customs Organization (WCO). What is the East African Community Common External Tariff (EAC- CET? In general, Customs duty is levied at rates between 0% and 100%, with an average rate of 25%. Black tea (fermented) and partly fermented tea, Petroleum oils, etc, (excl. A bond may be suspended due to various reasons for example, due to failure to account for the transactions covered by the bond. You can read further information on the GRI here. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments. Overview In 2021, Kenya was the number 59 economy in the world in terms of GDP (current US$), the number 109 in total exports, the number 81 in total imports, the number 142 economy in terms of GDP per capita (current US$) and the number 83 most complex economy according to the Economic Complexity Index (ECI) . 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. The appeal shall be lodged within forty-five days after being served with the decision, and shall serve a copy of the appeal on the Commissioner. Customs Tariff by chapter. International Trade Administration 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. This exemption now requires the involvement of the Ministry of Agriculture to get a recommendation and approval of the exemption. Prepared by our U.S. Embassies abroad. 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. 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. For India NTM's in Chapter A and B are not covered. Harmonized System 1988/92, SITC Revision 2. About Harmonized Tariff Schedule. 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. Polymers of vinyl acetate or of other vinyl esters, in primary forms; other vinyl polymers in primary forms Others: Copolymer. Secure .gov websites use HTTPS 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. Facing a Foreign Trade AD/CVD or Safeguard Investigation? an import standards mark (ISM) when applicable; Valid Commercial Invoice from the exporting firm. Times Tower Building Haile Selassie Avenue P. O. 1999 - 2022 East African Community. However, sensitive items attract duty higher than 25% (the sensitive items are listed in the schedule 2 of the EAC Common external tariff). East Africa Community Common External Tariff 2022. It measures the uniform tariff equivalent of the country tariff and non-tariff barriers (NTB) that would generate the same level of import value for the country in a given year. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. The Council has approved various stays of application of CET duty rates on select items in Burundi, effective for the one-year period from 1 July 2018. (https://ustr.gov/). The new rates became effective on 1 July 2020. 23 dated 20 June 2014 and L.N. 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. 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. In iCMS (Integrated Customs Management System), a bond reinstatement notice is send to the bond applicant. 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. 14%. 351 sets of amendments were made divided as follows: How many Chapters of the HS have been Affected? Kenya applies tariffs based on the international harmonized system (HS) of product classification, and applies duties and tariffs of the East African Community (EAC) Common External Tariff. This was further amended through L.N. Motorcycle kits imported by gazetted assemblers, Country specific stays of application of the CET. To Export means to take or cause to be taken out of the Partner State. 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. 473 (1962)), the Customs and Excise Department Act, 1977 (No. Tariff rates can be estimated by visiting Kenya Revenue Authority. EAC Member States have signed a Protocol to establish a common Customs Union. To smooth fluctuations in prices and exchange rates, a special Atlas method of conversion is used by the World Bank. Whereas higher tax rates are introduced to protect local industries, other new taxes are introduced to broaden the base. The Excise duty rates are prescribed under the Excise Duty Act 2015. Tariff rates can be estimated by visiting Kenya Revenue Authority. 39 dated 30 June 2016 to provide further clarification on which items are exempted under this provision. They are normally the importers or their agents. Excise Duties 10 of 1977), the Local Industries (Refund of Customs Duties) Act Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. The new rate affects at least 31 products, including juices, wines and spirits, some imported chocolates, beer, bottled water, imported sugar confectionery, cigarettes and fuel. The East African Community (EAC) is a regional intergovernmental organisation of seven (7) Partner States: the Republic of Burundi, the Democratic Republic of Congo, the Republic of Kenya, the Republic of Rwanda, the Republic of South Sudan, the Republic of Uganda, and the United Republic of Tanzania, with its headquarters in Arusha, Tanzania. This applies a conversion factor that averages the exchange rate for a given year and the two preceding years, adjusted for differences in rates of inflation between the country, and through 2000, the G-5 countries (France, Germany, Japan, the United Kingdom, and the United States). ; human hair, nes, Butter and other fats and oils de-rived from milk; dairy spreads, Mixes and doughs for the preparation of bakers' wares of heading, New pneumatic tires of rubber, of a kind used on motorcycles, Flat rolled products of iron or non-alloy steel products of iron or non-alloy steel, Flat rolled products of iron or non-alloy steel, Jacquard material for making spring mattresses (printed with Logo, Poly cotton material for making mattresses, Soap and organic surface-active products for use as soap, Cartons, boxes, cases, bags and other packing containers of paper, Doors, windows and their frames and thresholds for doors of iron and steel and Plastic/polymers, Iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, Motor vehicles for transport of goods with gross vehicle weight exceeding 5 tons but not exceeding 20 tons, Motor vehicles for transport of goods with gross vehicle weight exceeding 20 tons, EFD, cash registers, point of sale (POS), cashless machines, Clothes-dryers imported by licensed hotels, Other toughened (tempered) and laminated safety glass. Footwear incorporating a protective metal toecap. On 30 June 2020, the East African Community (EAC) Secretariat released EAC Gazette Notice No. 12 dated 30 June 2006 applied the exemption on solar power which was amended in 2010 to include wind energy. Imports into Kenya are subject to a standard VAT rate of16%, levied on the sum of the CIF value, duty, and other applicable taxes. These measures, effected to address specific economic needs, have a two-fold effect; either an increase or a decrease in duty rates as follows: Containers for compressed or liquefied gas, of iron or steel liquid gas cylinders (LPG), Containing added flavoring or coloring matter, 25% for one year for imported sugar up to 70,000 MT quota limit, Leather further prepared after tanning or crusting, including parchment-dressed leather, of bovine (including buffalo) or equine. Number of distinct NTM measures in effect in a country in a particular year. 1 The Gazette highlights changes to the EAC Customs Management Act, 2004 (EACCMA) and the EAC Common External Tariff (EAC CET) with effect from 1 July 2020. Share sensitive information only on official, secure websites. 07 (Cadmium) and 88.03 (Parts of aircrafts), The Liquids used with electronic cigarettes: 2404. What Is The Time Period for Lodging Appeal at The Tax Appeals Tribunal (TAT)? In doing so, we aim to address both tariff and non-tariff barriers and to achieve fairer, more balanced trade. A lock ( A locked padlock ) or https:// means youve safely connected to the .gov website. - Ensure that Kenya administers customs penalties in . These measures, effected to address specific economic needs, have a two-fold effect; either an increase or a decrease in duty rates as follows: Sacks and bags, of Jute or other textile-based fibers of heading 53.03, Cocoa powder, not containing added sugar or other sweetening matter, Flat-rolled products of other alloy steel, of a width of 600 mm or more, Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, clad, plated or coat-ed for one more year, Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm (clad), cross-sectional dimension exceeds 1 mm, rods, sticks and profile shapes whether or not surface worked but not otherwise worked of plastics. T2020-2 Effective date: 2020-07-01. Economies are ranked on their ease of doing business, from 1189. Calculate Tax /. Economic Policy & Debt: National accounts: Atlas GNI & GNI per capita, Difference between Exports of goods and services (current US$) and Imports of goods and services (current US$), Indicator codes: NE.EXP.GNFS.CD, NE.IMP.GNFS.CD, Difference between Exports of goods and services (% of GDP) and Imports of goods and services (% of GDP), Indicator codes: NE.EXP.GNFS.ZS, NE.IMP.GNFS.ZS. 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. Total number of products exported by a country at the Harmonized System six digit level in any given year. Protection of Society and Fight Against Terrorism, Goods Specially Controlled under Various Conventions, Levying Customs duty on imports and exports, Provide reliable statistics on international trade, Classifying goods for international Trade in a uniform and consistent manner eliminating the need to reclassify the goods. Excisable depending on the specific tariff. The Importer will need to acquire the services of a licensed customs clearing agent. Kenya Part A.1 Tariffs and imports: Summary and duty ranges Total Ag Non-Ag WTO member since 1995 . Other EAC members are Burundi, Rwanda, South Sudan, Tanzania, Uganda, and since 2022, the Democratic Republic of the Congo (DRC). - Quilts, bedspreads, eiderdowns and duvets (comforters). How Many New Subheadings Have Been Introduced In Hs 2022? The goods declared shall be exported within thirty days from the date of entry. View/ Open. Customs Tarrif Classification II . The importer on obtaining the pro-forma invoice shall engage a licensed clearing agent to lodge an import declaration form. 1401 Constitution Ave NW Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. New subheading 9404.40 has been created to provide separately for quilts, bedspreads, eiderdowns and duvets (comforters) to simplify their classification. Contract executed under seal whereby the party or parties entering into it bind themselves to pay to The Commissioner of Customs a specified sum of money, referred to as the penalty to the bond, if any of the conditions of the bond are not satisfied. Articles like Safety Gumboots. 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. The EAC has over time revised several times the duty exemption policy relating to renewable energy, moreso, specialized solar and wind equipment. applies duties and tariffs of the East African Community (EAC) Common External Tariff. Some of Kenyas major products that qualify for export under AGOA include textiles, apparels, and handicrafts. 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. Facing a Foreign Trade AD/CVD or Safeguard Investigation? If a remission regime is applied across all the EAC countries (i.e., favoring all EAC manufacturers), the restriction above would not apply. This is a tariff classification decision by the commissioner of customs. 1999 - 2022 East African Community. Additionally, the United States and Kenya agreed on a Strategic Cooperation Framework to provide technical assistance and trade capacity building in Kenya with the aim of maximizing Kenyas utilization of the AGOA trade benefits for the remaining years of the preference program, which is scheduled to expire in 2025.
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