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Import vehicles into Kenya - RHD

Kenya - RHD

Kenya is another Right Hand Drive country. Port Of Entry is Mombasa. You can import any vehicle that is less than eight years old, but it is required to have a Pre Inspection Certificate & SGS inspection. Reportedly, an exception is made for Thailand origin vehicles and an inspection can be arranged upon arrival in Kenya.

Kenya used to have a 10 year old rule and you were not allowed to import a vehicle older than that. Last year, the Kenyan authorities have started banning vehicles that are eight years old. The Kenya Bureau of Standards is using the K21515 2000 standard clause stating that vehicles above eight years should not be allowed in Kenya. After protests by the Kenya Auto Bazaar Association, the government agreed to clear all vehicles imported before the ban was implemented. They agreed that vehicles lying at Mombasa port and over eight years but below ten, would attract a new duty of Sh. 6,000 while those above ten years a new fee of Sh. 10,000. But from now we are only exporting 8 year old vehicles.

Pre-export inspection is required which we can arrange. We are working with Kenyan dealers both directly and through our Gold Partner in South Africa and our dealership in Dubai.

In July 2005, a request by car importers to nullify importation documents was rejected by the High Court. Recently Francis Thuranira, the Kenyan Customs Commissioner had issued routine orders to customs' officers giving guidelines on how to undertake valuation of imported secondhand vehicles. The Association of Clearing Warehouse and Freight Forwarders of Kenya had sought orders to quash the introduction of the routine orders but the High Court rejected their plea in July of 2005. The Association had argued that the orders were illegal while KRA maintained that the routine orders were internal documents of the authority. They asserted that the orders guided customs officials on the value of imported motor vehicles and therefore did not affect the association.

Mr Justice Maraga ruled that the Kenya Revenue Authority (KRA) was obeying the law in introducing the routine orders and calculating value added tax to impose on the imported vehicles. He also said that the instructions, also known as "routine orders", were issued according to the East African Customs Management Act and the Customs and Excise Act.

No local content regulations exist, but components manufactured locally may not be imported. There are no export requirements. An import license accompanied by a 100 percent refundable prior import deposit is required. Importing medium and heavy-duty commercial vehicles with a 3-ton or more load capacity is prohibited unless they are completely dismantled and contain no components that may be produced locally. The import duty on assembled passenger cars is 50 percent on the C.I.F. value in addition to a 40 percent sales tax. The duty on components for assembly is 25 percent. Importers have been directed to seek 90 to 180 days credit overseas. Import protection is accorded to local producers of the following automotive components: sealers, adhesives, batteries, tires, tubes, paints, flat glass, canvas, soft trim, upholstery, insulation, radiators, exhaust systems, leaf springs, spare wheel carriers, seat frames, wiring harnesses, and brake linings.

Tanzania Kenya Malawi top auto dealer importer exporter car 4x4 Soni Motors shipping Mombasa Dar es Salaam Whether your choice is Dar-es-Salaam port or Mombasa port, please note that our rates to either of these ports are the cheapest when compared to other vendors. Since 80% of all special vehicle exported out of China are shipped by us we have a lot of clout with shipping companies and this results in reduced costs for our custmers. Since our cars are priced the lowest customers get huge overall savings.www.dtatruck.com www.szdtruck.com tomking@dtatruck.com

The three main regulations when considering importing/exporting cars to Kenya are:

Age Limit: Vehicles manufactured less than 7 years are not allowed. Law says eight year but in practice only seven year old vehicles are allowed in. From 2010 they will allow 2003 onwards
Left Hand Drive Vehicles: All left hand drive vehicles are not allowed for registration unless they have a special purpose e.g. Ambulances etc
Road Worthiness: All used vehicles imported into Kenya must be inspected to ensure road worthiness, safety and other requirements.

The Duties and Taxes Payable are derived as follows:-

Import duty at 25%, Excise duty at 20% and VAT at 16% are payable cumulatively and in that order. Therefore:

Import duty is 25% of the Customs value (CIF) of the vehicle i.e. 25% of (Invoice value + Insurance + Freight charges)
Excise duty is 20% of (Customs Value + Import Duty)
VAT is 16% of (Customs Value + Import Duty + Excise Duty)

Further, an Import Declaration Fee (IDF) of 2.25% of the CIF is also charged subject to a minimum of Ksh. 5,000 payable in advance on application.

*CIF - Cost, Insurance and Freight

Used vehicle must also have an Inspection Certificate which we will be glad to obtain on your behalf.

Duty Exemptions

Returning Residents

If you have bought a vehicle outside Kenya and would like to ship it home, an importer will do all pre-shipment documentation, clearance through the port and registration. As per the current import regulations, they will also require copies of your National ID/Passport and PIN certificate.

A returning resident is defined as: A person changing residence from a place outside Kenya to a place within Kenya where that person has been residing outside Kenya for a period of at least two years and has not resided in Kenya for a period(s) amounting in aggregate to ninety days or more within the two years immediately before this return to Kenya.

A returning resident may import one exempt motor vehicle (excluding buses and minibuses of seating capacity of more than 13 passengers and load carrying capacity exceeding two tonnes) Provided that:

The person has attained the age of eighteen years
The vehicle was used by him and owned by him outside Kenya for a continuous period of 12 months (excluding the period of voyage in the case of shipment)
The vehicle is owned and registered in his name and/or his spouse. Where the motor vehicle is purchased on hire purchase terms, the first installment in respect thereof was paid and delivery taken at least three hundred and sixty days prior to importation

However, vehicles belonging to returning residents must abide to the Kenyan standards as stipulated by the Kenya bureau of standards (K.B.S). The importation of Used Motor Vehicles into Kenya is covered under the Kenya Standard Code of Practice for Inspection of Road Vehicles KS03 1515:2000.The Standard spells out three major criteria for acceptances of the Vehicles for importation.

These are:

Age Limit: All road vehicles, which are more than eight years old from the year of manufacture, shall not be allowed for importation. Currently we are exporting cars manufactured in 2001 and after.
Left Hand Drive: All left hand drive vehicles are not allowed for registration unless they are for special purpose i.e. Ambulances, Fire Tenders and large construction vehicles imported for projects and to be eventually donated the Kenya Government.
Road Worthiness: All used vehicles imported into Kenya shall be inspected for Road Worthiness, safety and other requirements.

Other Parties:

Vehicles for diplomatic or consulate missions, Vehicles for the United Nations or its specialized agencies, Vehicles for Foreign Embassies, Donor Agencies, Specifically designed vehicles to be used by the blind, disabled and physically handicapped persons, rally drivers - certain exemptions, vehicles for aid funded projects etc

Fact and Figures about Importing to Kenya

Excise duty on all vehicles is now 20% irrespective of engine size
20% dumping fees on all vehicles has been removed
Cumulative taxes on all vehicles has been set at 76.75% of dutiable value
Import duty is 25% of dutiable value.
Excise Duty 20% of Excise Duty Value.
VAT is 16% of VAT value.
Import Declaration Form (I. D. F.) processing fees is 2.75% with a minimum of shs 5,000 that is paid in advance on application.
Calculated cumulatively, Import Duty+ Excise Duty + V.A.T+IDF will work out to 76.75% on all vehicles irrespective of engine size.
AGE LIMIT - In Kenya Importation of used vehicles is limited to eight years. All used motor vehicles originating from Japan and the United Arab Emirates (U.A.E) -Dubai, will be subject to destination inspection. Importers of vehicles from Japan and the U.A.E will be expected to present their motor vehicles to Japan Auto Appraisal Institute (JAAI) in Japan and JAAI/ CAAC in Dubai who will inspect the motor vehicles and issue a certificate of roadworthiness, which shall be presented for clearance purposes.
Pre-shipment inspection by Cotecna and Bivac International is no longer a requirement from 1st July 2005. Dutiable values will now be determined by custom authorities at Mombasa Port.
Import Declaration Forms (IDFs) will be processed by KRA-customs services.
Import duty, excise duty, VAT and I. D. F fees are calculated based on dutiable value which is not necessarily the purchase price.

More facts

50% import duty on motor vehicles, based on the C.I.F. value
40% sales tax
25% import duty on components for vehicle assembly
No local content requirements exist, but components manufactured locally may not be imported.
No export requirements
An import license accompanied by a 100 percent refundable prior import deposit is required
Importing medium and heavy-duty commercial vehicles with a 3-ton or more load capacity is prohibited unless they are completely dismantled and contain no components that may be produced locally.
Importers have been directed to seek 90 to 180 days credit overseas.
Import protection is accorded to local producers of the following automotive components: sealers, adhesives, batteries, tires, tubes, paints, flat glass, canvas, soft trim, upholstery, insulation, radiators, exhaust systems, leaf springs, spare wheel carriers, seat frames, wiring harnesses, and brake linings.

Import Declaration Form (IDF)

An IDF must be applied for and obtained from the Kenya Revenue Authority for any Commercial Importation. The Importer is responsible for applying for the IDF but may consult us for purposes of Customs Classifications which form the backbone of the information drawn from the Pro-Forma Invoice.

The IDF Fee is 2.75% of the CIF Value of the goods. A minimum payment of Ksh.5000/= is payable for the IDF to be issued, while the difference if any, will be paid alongside the Import Taxes.

The IDF may set Conditions such as the following:

Value - The IDF gives the indication as to whether the Values declared thereon are final. If not final, then an Appraisal of Value must be sort with the Valuation Section of the Customs Services Department. In this case, a complete set of the Shipping documents will be attached to the Appraisal Of Value Request Form following which a Value Certificate is issued. The process could involve physical verification of the goods.
Quality/Quantity – Other control bodies such the Kenya Bureau of Standards, Public Health Department, Department of Agriculture (Kephis) and Mines & Geology Department may be asked to determine if the expected standards have been met. Incase of suspicion, Tests may be carried out and Certificates/Permits issued. Under this criteria, test Certificates from accredited bodies may be required.
Classification – The Customs Services Department may be asked to determine the correctness of the classification for purposes of collection of the correct Taxes. This may involve Physical verification and/or Computer Scanning.
Pre-Verification – All Items originating from Dubai, Hong Kong and China including Textiles, Electronics, Motor Vehicles & Spares will be subjected to Pre-verification by the Customs Valuation Section who will accordingly issue a Certificate to the effect.

Quality Inspections

The Kenya Bureau of Standards has appointed two agents namely INTERTEK and SGS for the Preexport Verification of Conformity inspection of the commodities listed on the Guidelines referred bellow. These agents will issue to the Shipper/Supplier a Certificate of Conformity and the Test Results. An IDF will be required before any Inspection can be performed.

See attached Guidelines from The Kenya Bureau of Standards which is self explanatory. Please also be advised that these guidelines are being updated by KBS without any alert. You can also visit their website at www.kenyapvoc.com/guidelines.pdf to get the current version.

A customer has told us that Kenya Bureau of Standards has given him the following information: "Currently vehicles from Thailand are not subject to a mandatory pre-shipment inspection. Instead, they are inspected locally. Provided the vehicles are under 8 years old and Right Hand drive, they are allowed into the country. The importer then pays an inspection fee of 15,000 Kenya Shillings at point of entry and then later takes the vehicle to Ministry of Roads for inspection."

Customs Import Entry

The following documents are required for Customs Import Entry Purposes
1. Original Commercial Invoice
2. Packing List
3. Original Bills of Lading – Two Original
4. Original Certificate of Conformity
5. Original Test Result/Report/Analysis
6. Original Certificate of Origin for Preferential Trade Area Partners e.g. COMESA.
7. Import Declaration Form and the Receipt
8. Insurance Debit Note
9. Importers Declaration(C52)

These documents will enable Electronic Registration of The Customs Entry. The registered entry will be passed for eventual release of the goods upon:
· Payment of Import Taxes
· Providing a Security Bond

Import Taxes are payable to the appointed Bank upon confirmation of the Registration of the Entry. The Banks Electronic Confirmation of Receipt of Payment of Import Taxes enables the Customs Entry to be passed for further processing at the Port of clearance.

Security Bonds are executed and put in force against the Entry as an Undertaking or Guarantee to settle the Import Taxes at a later date as per the provisions of the relevant section of the Act.

Bonds

Some Importations can be entered under a Security Bond instead of payments of Taxes. The Bonds could be provided to cover:

The movement from the Port of clearance into a Customs Bonded Warehouse
The movement from the Port of clearance into a Customs Export Processing Zone Bonded Warehouse
The movement from the Port of clearance into a Customs Manufacture Under Bond Warehouse
Temporary Importations
Foreign Aided or Government Funded Projects

The above are governed by the guidelines provided under the Customs Act

Exemptions

The Customs Act has provided privileges of exemptions from Import Taxes to a number of institutions and people but within set guidelines. The guidelines are either under the category of:

Special Exemptions
General Exemptions

There are Special Permits obtained from the related authority to support the exemptions.

Shipping/Carriers Release

One Copy of the Bill Of Lading dully endorsed by the Importers and Bankers will be presented to the Shipping/Carriers local Agent who will issue a Delivery Order (D/O) upon the following conditions:

Payment of Freight Charges if not Pre-Paid
Payment of Container Deposit and/or Demurrages if FCL
Signing of a Container Guarantee
Payment of Other Charges e.g. Stripping of LCL

The Delivery Order then forms a part of the Cargo Clearance Documents including the Approved Customs Entry and the Mombasa Port Release Order.

Bringing Vehicle while moving to Kenya

DOCUMENTS REQUIRED

Passport (original) – (If issued within last two years the old passport is also required)
Work Permit for non-Kenyan citizens
Baggage Declaration Form C-18 signed by customer
Bank Release
Inventory in English, valued and detailed showing the number of packages and in triplicate
Insurance Certificate
Invoices for electrical items and serial numbers
Certificate of change of address

CUSTOMS REGULATIONS

CUSTOMER MUST BE PRESENT AT CUSTOMS CLEARANCE
Goods are subject to 100% Customs verification
Used household goods and personal effects are duty-free for returning Kenyan citizens provided they have resided outside Kenya for a minimum of two years and effects are imported within three months of owner's arrival
Non-Kenyan citizens (first time arrivals) are permitted to import used household goods and personal effects duty-free within three months of Work Permit being issued
Kenyan citizens who have resided for more than two years outside Kenya are not entitled to import used household goods and personal effects duty-free
Household goods must have been in owner’s possession for at least one year prior to import. If new, duty will be charged at the current rates.

MOTOR VEHICLES

Importation highly restricted and time consuming
First time arrivals to Kenya and returning Kenyan citizens residing outside Kenya for a minimum of two years are permitted to import ONE auto duty-free provided:
- Auto is more than three months old and has been registered in owner's name for more than three months
- Auto is less than 2,500 cc
- Auto is not sold within 12 months of import
- Owner's Work Permit has been approved for first time arrivals to Kenya
- Owner is 18 years of age or older

Documents required:

Import Declaration Form (IDF), Clean Report (IDF) and Clean Report Finding (CRF)
Authority to import vehicle letter
Log Book
Certificate of Registration (indicate engine and chassis number, first date of registration and engine capacity)
Certificate of local value
Passport (if issued within last two years, the old passport is also required)
Customs C15 Form
New autos require invoice bearing engine and chassis number
Work Permit

Regional Agreements

The Common Market for East and Southern Africa

The Common Market for East and Southern Africa (COMESA) has been operating, in one form or another, since 1981. COMESA aims to promote economic integration via the removal of barriers to trade and investment among COMESA member states. Moreover, COMESA aims to advocate for infrastructure development, and development in science and technology. Economic integration is envisaged to progress from the Free Trade Area (FTA) to an economic monetary union. The FTA became operational on 1st November 2000 with nine participating countries initially. The nine member countries that are implementing zero tariffs are Egypt, Sudan, Djibouti, Malawi, Madagascar, Mauritius, Zambia and Zimbabwe. However in January 2004, Burundi and Rwanda joined the FTA, bringing the total number of participating countries to eleven.

The COMESA FTA is an agreement among members not to apply customs duties or charges on goods traded amongst themselves. The eligible goods for duty-free treatment must meet the agreed upon Rules of Origin. Members also agree to eliminate all non-tariff barriers to trade between them.

A COMSEA Certificate of Origin is required for each consignment of goods and is obtained from the Revenue Authority in respective member countries.

The Southern Africa Development Community

The Southern Africa Development Community (SADC) aims to promote regional integration and sustainable development in the regional community.

Members of the Southern African Development Community (SADC), comprising 14 countries, signed a Trade Protocol, which calls for the implementation of a Free Trade Area. Each country has negotiated two reduced tariff schedules. One schedule is applicable only for South Africa, and another schedule for all other SADC members. Zambia's implementation of her offer, effective 30th April 2001, is provided to those countries that provide Zambia with the SADC reduced tariff schedule.

The reduction of tariffs to South Africa provide for delayed liberalization, while the schedule to other members provide for broader and faster access to the South Africa market. The tariff schedule applicable to SADC members, with the exception of South Africa, has three categories. Category A products are those products which go to zero-duty immediately upon implementation. The tariff for Category B products gradually goes down to zero-duty over a period of eight years, and the tariff of Category C products reaches zero-duty twelve years after implementation. Category C products are known as sensitive products, and include for Zambia meat and dairy products, tea, some flours, raw sugar, cement, textiles and clothing, and motor vehicles.

Plans are currently underway to establish a Free Trade Agreement by 2008, and a SADC Customs Union by 2010.

A SADC Certificate of Origin is required for each consignment of goods and is obtained from the Revenue Authority.

Mombasa Port

Kenya's second largest city, the ancient Muslim Indian Ocean port of Mombasa, serving Uganda, Rwanda, Burundi and Zaïre, is one of the most important platform in the Eastern Africa but it is not equipped enough for large traffic. Therefore a rehabilitation program is being undertaken. All of Soni Motors exports to Kenya are routed through Mombasa port and many of our vehicles heading for Uganda, Rwanda, Burundi, Southern Sudan, Malawi and Zaire are routed through Mombasa as well.

Kenya enjoys an extensive, if deteriorating, infrastructure, a generally well-educated population and a strong entrepreneurial tradition.

Mombasa is the best and most important deep-water port in the region, despite deteriorating equipment and problems with inefficiency and corruption. Nairobi and Mombasa, Kenya's main trading cities, have sufficiently large warehousing facilities. Most of the warehouses are for private warehousing; however, some specialized ones provide bonded warehousing services.

The Port of Mombasa, with a rated annual capacity of 22 million tons, is Kenya's main seaport and serves most East and Central African countries. It is a deep-water port with 21 berths, two bulk oil jetties and dry bulk wharves that can handle all size ships. The port offers specialized facilities, including cold storage, warehousing, and container terminal. It serves most international shipping lines and has an average annual freight throughput of about 8.1 million tons, of which 72 percent are imports.

Kenya Ports Authority (KPA) manages the port operations. There are plans to replace or refurbish some of the equipment at the port. A private international firm has been contracted to manage and operate the container terminal in Mombasa. Inland container depots, managed by KPA, exist in Nairobi, Eldoret, and Kisumu.

Corruption is pervasive in most sectors, particularly in government procurement and dispute settlement. A police unit was recently established at the Kenya Revenue Authority to tackle tax evaders, including scandals involving duty evasion at the Port of Mombasa.
Uganda's most troublesome infrastructure problems lies in Kenya - the corrupt and inefficient port of Mombasa and the poor condition of the road between Mombasa and Kampala. The vast majority of Uganda's exports and imports travel through this port and road. Generally, transporting a container of goods between Mombasa and Kampala will take twice the time and expense as transporting that same container between London and Mombasa.

Kenya has a reasonably well-developed international and domestic air transport infrastructure. The country has three international airports: Nairobi's Jomo Kenyatta International Airport (JKIA), Mombasa's Moi International Airport and Eldoret International Airport which became operational in April 1997.