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KRA boss John Njiraini says this will see the EAC community have one customs union. Photo/ FILE

Kenya

EAC customs territory enters phase II

KRA boss John  Njiraini says this will see the EAC community have one customs union. Photo/ FILE

KRA boss John
Njiraini says this will see the EAC community have one customs union. Photo/ FILE

NAIROBI, Kenya, Jan 28 – The second phase of the Single Custom Territory (SCT) will be rolled out on June 1, 2014.

Speaking during the International Customs Day, Kenya Revenue Authority (KRA) Commissioner General John Njiraini said the phase will incorporate the republics of Tanzania and Burundi and will fully realise the envisaged East African Community (EAC) Union.

Njiraini says this will see the EAC community have one customs union.

“Under the provisions of the SCT, tax on incoming goods is to be collected at a single point of entry,” Njiraini said.

This will ensure that revenues are collected effectively and will allow faster clearance of goods for traders from the EAC.

“One of the serious problems we have been dealing with in customs is the question of the diversion of transit goods, somebody brings their goods in the country from Mombasa and says that they are going to Uganda and as soon as we release them to Uganda, they dump their goods in the country this will help greatly in this,” he said.

He says that it will allow faster and free movement in the EAC.

Kenya, Rwanda and Uganda rolled out SCT from January 1 as part of an accelerated programme for regional integration.

The authority also notified oil marketing companies and clearing that effective from February 3, 2014, oil products destined to Uganda shall not be cleared under the transit regime.

The taxman says all such products will be cleared under the Single Customs Territory after payment of taxes to Uganda Revenue Authority (URA) via their customs system.

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He said that customs has continued to invest in modern tools to help in the communication improvement drive.

“The ongoing technology investments both within and outside KRA will see significant changes in the way customs does business in Kenya over the next 18 years,” he said.

He says that the new custom management system whose tendering process commenced in early January 2014 when fully implemented will replace the current SIMBA system and will have superior features that will aid better practices in risk management security targeting and valuation of cargo.

“The system will also provide solutions that will enhance governance in hitherto problematic areas such as customs auction through the creation of an online virtual auction platform,” he stated.

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