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Passengers’ complaints at airport call for a review of customs rule
Friday November 10 2023
PHOTO | SHUTTERSTOCK
As globalisation continues to ease the movement of people across borders, governments are grappling with how to plug tax leakages because of people bringing goods into the country as part of their baggage. In Kenya, this issue has gained prominence following complaints that persons coming into the country were being harassed by Customs officials at airports.
In a now-deleted post, the Kenya Revenue Authority (KRA) “All goods, whether new or used, are subject to taxation. Remember when travelling, you will be allowed to carry personal or household items worth $500 (Sh75,600) and below. Anything above the amount shall be subject to tax”.
Through a public notice, the KRA later clarified that personal effects and new imported goods worth $500 and below are exempt from import taxes.
Kenyans are grappling with many questions around this limit in value, the legal basis and whether the collection of taxes for goods valued above $500 can be done in a civil manner.
Customs matters in Kenya are governed under the East Africa Community Customs Management Act, 2004. The import duty rates are prescribed under the East Africa Community Common External Tariff (CET). All imported goods are dutiable as per the CET rates unless exempted under the customs law.
Passengers changing residence are exempted from paying import duties for all items that are considered to have been their personal effects and household items in their former country of residence.
Those travelling into Kenya on a temporary basis have their consumables and non-consumables accepted into Kenya duty-free. However, the quantities are subject to the Customs officer’s discretion.
Kenyan residents who have been outside the country for a few days are entitled to the following concessions besides new imports with an aggregate value of $500 and their personal effects: spirits/ liquors up to one litre or wine not exceeding two litres, tobacco products not exceeding 250g and perfume and toilet waters not exceeding half litre, with the perfume not exceeding a quarter of a litre.
These legal provisions have been in existence since the enactment of the East Africa Community Customs Management Act in 2004. Given that it is now nearly 20 years since the limit of $500 was set, it is time to review this limit to consider the impact of inflation over the period.
Better still, the KRA should come up with a mechanism to differentiate commercial merchandise from items purchased for personal use.
To avoid surprises on the ever-changing tax landscape, it is important that we keep abreast with all legal provisions affecting cross-border travel.
The writer is a Customs and Excise Lead with KPMG Advisory Services Limited. [email protected]
