IMPORTING & EXPORTING, AT A GLANCE.
What is Exportation?
To Export means to take or cause to be taken out of the Partner State. 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. The goods declared shall be exported within thirty days from the date of entry.
What is required when Exporting?
Clearing & Forwarding Agent Company.
The Exporter will need to acquire the services of Sheffield Cargo Logistics Limited. A C & F agent is mandated to process the Exportation documents in the customs system and assist in forwarding goods on your behalf.
Some select items attract an export Levy as outlined the First Schedule of the miscellaneous Fees and Levies Act of 2016.
What are the documents required in Forwarding of Exported goods?
To forward any Exported goods requires the engagement of Sheffield Cargo Logistics Ltd. When engaging us as your preferred exporting agent, always provide Exportation documents including but not limited to:
- A valid Commercial Invoice;
- Certificate of origin.
- Permit/License for restricted goods.(KEPHIS, HCDA, ministry of Mining)
- Personal or Taxpayer Identification Number (PIN certificate).
- Purchase Orders/Contracts.
- Packing List.
The Exporting agent is then allowed to declare the goods you are Exporting in the customs system (Create an entry).
What is importation?
To Import means to bring or cause to be brought into the Partner States from a foreign country;
What to know when importing
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 Clearing agent shall capture all the mandatory details required when declaring an import in the customs System.
What is required when importing?
Clearing & Forwarding Agent
The Importer will need to acquire the services of Sheffield cargo Logistics Limited. A clearing agent is mandated to process the importation documents in the customs system and assist in clearing goods on your behalf.
Duties and Taxes Payable:
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.
- Import Duties
Depending with the item to be imported, the Import tax rates vary between 0%, 10% and 25% as provided by the East Africa Community Common External Tariff (CET). However, Sensitive items Attract duty higher than 25%. The sensitive items are listed in the schedule 2 of the EAC Common External tariff.
- Excise Duties
Excise Duty depends on whether the imported item is excisable or not. The Excise duty rates are prescribed under the Excise Duty Act 2015.
- Value Added Tax (VAT)
The normal rate of VAT is 16%. However, the Items exempted from VAT as provided by the VAT Act of 2013 attract a rate of 0%.
- Import Declaration Fees (IDF) & Railway Development Levy (RDL)
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.
What are the documents required in clearance of imported goods?
To clear any imported goods such as a car, machinery or general merchandise requires the engagement of Sheffield Cargo Logistics Limited. When engaging us as your preferred clearing agent ensure you always provide importation documents including but not limited to:
- A Certificate of Conformity (CoC) from the PVoC agent for regulated products;
- Valid Commercial Invoice from the exporting firm
- valid pro forma invoices from the exporting firm.
- 3 Bill of Lading (sea cargo)
- Airway Bill (air cargo)
- Certificate of origin
- Freight invoice for sea cargo
- Logbook and its translation if it is not in English (motor vehicle)
- Permit/License for restricted goods
- Personal or importer Taxpayer Identification Number (PIN certificate)
- Exemption letter (in case goods are exempted)
- Purchase Orders/Contracts, T/T
- Certificate of Roadworthiness for Motor Vehicles
- Packing List
- Letter of Credit (if available)
Sheffield Cargo logistics Ltd is then allowed to declare the goods you are importing in the customs system (Create an entry).
Goods Clearance Process
- IDF Lodgement & Processing
The importer on obtaining the pro-forma invoice shall engage Sheffield Cargo Logistics Ltd to lodge an import declaration form. The importer should then send the IDF to the Supplier for Pre-shipment inspection.
- Entry Declaration, Payment of Taxes and Processing
Sheffield will make a customs declaration and provide the importer with a payment slip. The importer makes the payment to the bank and issues us with the official bank slips. Customs Shall Process all compliant declarations.
- Verification and Other Enforcement Measures
Sheffield will present the physical file at the customs station where the goods are domiciled where physical verification is conducted.
- Clearance and Release
Upon verification, all compliant declarations are cleared and cargo is released.