Miscellaneous Feesand Levies 29of 2016 - as Plain Text by MWakili

ISSUE SPECIAL Kenya Gazette Supplement No.

150 (Acts No.

29) REPUBLIC OF KENYA KENYA GAZETTE SUPPLEM ENT ACTS,201 6 NAIROBI, 7 th September, 2016 CONTENT Act- PAGE TheMiscellaneousFeesandkviesAct,2016.

.601 ir Ari,, .;Jsr.:i1 r0RLAIIffi '\i1r L =IVED I5ffiP ffiffi 'i) .'icx 10443-00100 it'-L NAiROBI, KENYA 2='-, 1231 FAX:2112694 PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI 601 THE MISCELLANEOUS FEES AND LEVIES ACT No.

29 of 2016 Date of Assent: 3lst August, 2016 Date of Commencement: 2lst September, 2016 ARRANGEMENT OF SECTIONS PART I_PRELIMINARY Section 1 - Short title.

2-Interpretation.

PART I-ADMINISTRATION 3 -Functions and powers of the Commissioner and other officers.

4-Authorised officers to have powers of police officers.

PART III-IMPOSITION OF FEES AND LEVIES 5 -Imposition of export levy.

6-Exemption.

7 -Import declaration fee.

8 -Railway development levy.

9 -Application of the East African Community Customs Management Act,2004.

10-Customs formalities may be carried out by information technology.

PART V-MISCELLANEOUS 11 - Offence.

12-Regulations.

SCHEDULES FIRST SCHEDULE-Goods subject to export levy SECOND SCHEDULE-Goods exempt from import declaration fee and railway development levy 602 No.29 Miscellaneous Fees and Levies 2016 THE MISCELLANEOUS FEES AND LEVIES ACT,20t6 AN ACT of Parliament to provide for the imposition of duties, fees and levies on imported or exported goods and for connected purposes ENACTED by Parliament of Kenya, as follows- PART I-PRELIMINARY 1.

This Act may be cited as the Miscellaneous Fees shorttitle' and Levies Act,2016.

2.

(1) In this Act, unless the context otherwise Interpntation' requires- "Authority" means Kenya Revenue Authority established uy itre Kenya Revenul Authority Act; ' czp'46e' "authorised officer" means any officer appointed under section 3; "Cabinet Secretary" means the Cabinet Secretary for the time being responsible for finance; "Commissioner" means the Commissioner General appointed under the Kenya Revenue Authority Act, or any cap.46e.

other Commissioner to whom powers or functions have been delegated under that Act; "customs value" for the purposes of ascertaining the value for charging, means- (a) the import declaration fee or railway development levy, the import value of goods as appraised by Customs for use as the basis for assessing the amount of import duty; or (b) the export levy, the export value of the goods; "East African Community Partner States" means the Republics of Burundi, Rwanda, Uganda and the United Republic of Tanzania; "export" means to take or cause to be taken out of Kenya to a foreign country or to an export processing zone; "export processing zone" means an export processing cap' 5r7' zone designafed as sucf, under the Export rrbcesiing Zonetr Act; "importer" in relation to goods, means a person who owns the goods, or any other person who is, for the time 603 2016 Miscellaneous Fees and Levies No.29 being, in possession of or beneficially interested in the goods at the time of importation; "official aid funded project" means a project funded by means of a grant or concession loan in accordance with an agreement between the Government of Kenya and any foreign government, agency, institution, foundation, organization or any other aid agency; and "person" means an individual, company, partnership, association of persotrs, trust, estate, the Government, a foreign government or a political subdivision of the Government or foreign government.

(2) For the pu{pose of this Act, goods shall be classified by reference to the nomenclature set out in Annex 1 to the Protocol on the Establishment of the East African Community Customs Union and in interpreting the Annex; the general rules of interpretation set out therein shall apply.

PART II - ADMINISTRATION 3.

(1) The Commissioner shall be responsible for the Functions and control and collection of, and accounting for, duties, fees powers of the Commissioner and levies paid under this Act and shall, subject to the and other officers.

direction and control of the Cabinet Secret*y, have the superintendence of all matters relating thereto.

(2) The Commissioner shall appoint such officers as may be necessary for the administration of this Act.

(3) The Commissioner may authorize any officer appointed under this section to perforrn any of the functions of the Commissioner under this Act or the regulations, other than the functions under subsection (2).

(4) Every authorised officer appointed under this section shall enforce, and ensure due compliance with, the provisions of this Act and the regulations, and shall make all due inquiries in relation thereto.

(5) Every authorised officer appointed under this section shall, on demand, produce such documents establishing his or her identity as may be approved by the Commissioner.

(6) Every authorised officer shall, in carrying out the provisions of this Act, regard and deal with all documents 604 Miscellaneous Fees and Levies 2016 No.29 and information relating to fees and charges and all confidential instructions in respect of the administration of this Act which may come into his possession or to his knowledge in the course of his duties as confidential.

(7) Any decision made and any notice or communication issued or signed by any authorised officer may be withdrawn or amended by the Commissioner or by the authorised officer concerned, and shall, until it has been so withdrawn, be deemed to have been made, issued or signed by the Commissioner.

4.

For the purposes of carrying out the provisions of Authorised this Act, every authorised officer shall, in the performance officers to have powers of police of his or her duties, have all the powers, rights, privileges officers.

and protection of a police officer.

PART III-IMPOSITION OF LEVIES AND FEES 5.

(1) There shall be paid a levy to be known as the Imposition of export levy, on all goods specified in the First Schedule.

export levy.

(2) The levy shall, where more than one rate is specified, be the higher of the ad valorem or the specific rate specified in the First Schedule and shall be paid by the exporter at the time of entering the goods for export.

(3) The ad valorem rate shall be based on the custom value of the goods.

(4) The Commissioner shall, by notice in the Gazette, adjust the specific rate of export levy annually to take into account inflation in accordance with the formula specified in Part III of the First Schedule.

6.

The provisions of section 5 shall not apply to goods Exemption.

exported to the East African Community Partner States.

7.

(1) There shall be paid a fee to be known as the lmport import declaration fee, on all goods imported into the declaration fee.

country for home use.

(2) The fee shall be at the rate of two per cent of the customs value of the goods and shall be paid by the importer of such goods at the time of entering the goods for home USe.

(3) Despite subsection (1)- (a) import declaration fee shall not be charged on the goods specified in Part A of the Second Schedule 605 Miscellaneous Fees and Levies 2016 No.

29 when imported or purchased before clearance through customs; or (b) goods imported under the East African Community Duty Remission Scheme shall be charged import declaration fee of ten thousand shillings at the time of entering the goods for home use.

(4) An importer of goods other than goods specified in Part A of the Second Schedule shall complete the prescribed import declaration form.

(5) An importer shall present a copy of the import declaration form completed under subsection (4) to the Commissioner at the time of entering the goods for home use.

(6) Out of the fee collected under subsection (2), ten per cent shall be paid into a Fund established and managed in accordance with the Public Finance Management Act, No.

l8 of 2012.

2012.

(7) The monies in the Fund under subsection (6) shall be used for the payment of Kenya's contributions to the African Union and any other international organisation to which Kenya has a financial obligation.

8.

(1) There shall be paid a levy to be known as the Railway railway development levy, otr all goods imported into the development levy.

country for home use.

(2) The levy shall be at the rate of one point five per cent of the customs value of the goods and shall be paid by the importer of such goods at the time of entering the goods into the country for home use.

(3) The purpose of the levy shall be to provide funds for the construction of a standard gauge railway network in order to facilitate the transportation of goods.

(4) The Cabinet Secretary shall, by regulations, establish a railway development levy fund into which all the proceeds of the levy shall be paid.

(5) The fund referred to in subsection (4) shall be established, managed, administered or wound up in accordance with section 24 of the Public Finance Management Act, 2012 and the regulations made under No.

18 of 2012.

that Act.

606 No.

29 Miscellaneous Fees and Levies 2016 (6) No levy shall be charged in respect of the goods specified in Part B of the Second Schedule when imported or purchased before clearance through customs.

9.

The provisions of the East African Community Application of Customs Management Act, 2004, relating to the East African Community determination of value of imported goods, collection and Customs enforcement of the payment of duty shall apply for the Management Act, purposes of assessment, collection and enforcement of the 2004.

payment of import declaration fee, railway development levy and export levy.

10.

( 1) Subject to such conditions as the Formalities may Commissioner shall prescribe, formalities or procedures be carried out by information under this Act may be carried out by use of information technology.

technology in the customs computerized system.

(2) The provisions of the East African Community Customs Management Act, 2004, relating to registration of users, access and use on the customs computerized system shall apply for the purposes of carrying out formalities and procedures under this Act.

PART TV-MISCELLANEOUS PROVISIONS 11,.

(1) A person who contravenes the provisions of Offence.

this Act commits an offence.

(2) A person convicted of an offence under this Act, where no specific penalty is provided, shall be liable to a fine not exceeding five hundred thousand shillings or to imprisonment for a term not exceeding two years, or to both.

12.

The Cabinet Secretary may make regulations for Regulations.

the better carrying out of the provisions of this Act.

607 2016 Miscellaneous Fees and Levies No.

29 FIRST SCHEDULE s.

5( 1) GOODS SUBJECT TO EXPORT LEVY PARTI Tartff No.

Tartff Description Export Levy Rate 4101 .20.00 Whole hides and skins, of a weight per 80Vo or USD0.52 skin not exceeding 8 kg.

when simply per kg.

dried, 10 kg.

when dry-salted, or 16 kg.

when fresh, wet-salted or otherwise preserved.

4102.2I.00 Raw skins of sheep or lambs (pickled, 80Vo or USD0.52 but not tanned, parchment-dressed or per kg.

further prepared), without wool on whether or not split, other than those excluded by Note 1(c) to Chapter 41.

4102.29.00 Other raw skins of sheep or lamb (fresh, SOVo or USD0.52 or salted, dried, limed, pickled or per kg.

otherwise preserved, but not tanned, parchment-dressed or further prepared), with wool otr, whether or not split, other than those excluded by Note (c) to Chapter 41.

4103.20.00 Other raw hides and skins (fresh, or 80Vo or USD0.52 salted, dried, limed, pickled or otherwise per kg.

preserved, but not tanned, parchment- dressed or further prepared), whether or not debarred or split, other than those excluded by Note 1 (b) or (c) to this Chapter, of reptiles.

4103.30.00 Other raw hides and skins (fresh, or 80Vo or USD0.52 salted, dried, limed, pickled or otherwise per kg.

preserved, but not tanned, parchment- dressed or further prepared), but not debarred or split, other than those excluded by Note 1 (b) or 1 (c) to this Chapter, of swine.

4103.90.00 Other raw hides and skins other than of 80%o or USD052 reptiles, switre, goats or kids.

per kg.

4104.19.00 Other tanned or crust hides and skins of SOVo or USD0.52 bovine (including buffalo) or equine per kg.

608 29 Miscellaneous Fees and Levies 2016 No.

Tartff No.

Tartff Description Export Levy Rate animals, without hair on, whether or not split, but not further prepared, in the wet state (including wet - blue).

4301 .60.00 Raw furskins of fox, whole, with or 80%o or USD0.52 without head, tail or paws.

per kg.

4L01 .40.00 Hides and skins of equine animals.

80%o or USD0.52 per kg.

4101 .50.00 Whole hides and skins, of weight 80Vo or USD0.52 exceeding 16 kg.

per kg.

4101 .90.00 Other, including butts, bends and bellies.

80Vo or USD0.52 per kg.

4L02.10.00 Raw skins of sheep or lamb (fresh, or 80Vo or USD0.52 salted, dried, limed, pickled or otherwise per kg.

preserved, but not tanned, parchment- dressed or further prepared), with wool otr, whether or not split, other than those excluded by Note 1(c) to Chapter 41.

4301 .10.00 Raw furskins of mink, whole, with or 80Vo or USD0.52 without head, tail or paws.

per kg.

4301.30.00 Raw furskins of lamb, the following: 80Vo or USD0.52 Astrkhan, broadtail, Caracul, Persian per kg.

and similar lamb, Indian, Chinese, Mongolian or Tibetan lamb, whole, with or without head, tail or paws.

4301 .80.00 Other raw furskins, whole, with or 80Vo or USD0.52 without head, tail or paws.

per kg.

4301 .90.00 Heads, tail, paws and other pieces or 80Vo or USD0.52 cuttings, suitable for furriers' use.

per kg.

4302.11.00 Whole skins, with or without head, tail 80.7o or USD0.52 or paws, not assembled, of mink.

per kg.

4302.19.00 Other whole skins, with or without head, 80Vo or USD0.52 tail or paws, not assembled.

per kg.

4302.20.00 Heads, tails, paws and other pieces or 80Vo or USD0.52 cuttings, not assembled.

per kg.

4302.30.00 Whole skins and pieces or cuttings 80Vo or USD0.52 thereof, assembled.

per kg.

609 2016 Miscellaneous Fees and Levies No.29 Tartff No.

Tartff Description Export Levy Rate 7 L12.30.00 Waste and scrap of precious metal or of 20Vo metal clad with precious metal; other waste and scrap containing precious metal or precious metal compounds of a kind used principally for the recovery of precious metal of ash containing precious metal or precious metal compounds.

7112.91 .00 Other waste and scrap of precious metal or precious metal compounds of a kind )oq^ used principally for the recovery of -\r 'v precious metal of gold including metal clad with gold.

7112.92.00 Other waste and scraps of precious metal or precious metal compounds of a )nq^ kind used principally for the recovery of 2\' tL't precious metal of platinuffi, including metal clad with platinum.

7 rr2.99.00 Other waste and scrap of precious metal or metal clad with precious metal, other ZOVo waste and scrap containing precious metal compounds, of a kind used principally for the recovery of precious metal.

7204.10.00 Waste and scrap of cast of iron.

20Vo 7204.29.00 Waste and scrap of other alloy or steel.

20Vo 7204.30.00 Waste and scrap of tinned iron steel.

20Vo 7204.41.00 Turnings, shavings, chips, milling waste, sawdust, fillings, trimmings and 20Vo stampings, whether or not in bundles, or iron or steel.

7204.49.00 Other waste and scrap or iron or steel.

20Vo 7204.50.00 Remelting scrap ingots.

207o 7205.

10.00 Granules of pig iron, spiegeleisen, iron 20Vo or steel.

7902.00.00 Ztnc waste and scrap.

20Vo 610 Miscellaneous Fees and Levies 2016 No.29 Tartff No.

Tartff Description Export Levy Rate 8002.00.

10 Tin waste and scrap.

20Vo 8L02.94.00 Unwrought molybdenum including bars 20Vo and rods obtained simply by sinterirg; waste and scrap.

8102.97 .00 Waste and scrap of molybdenum.

20Vo 8103.30.00 Waste and scrap of tantalum.

20Vo 8104.20.00 Waste of scrap of magnesium.

20Vo 8105.00.00 Bismuth and articles thereof including 20Vo waste and scrap.

8105.30.00 Waste and scrap of cobalt matters.

20Vo 8107.30.00 Waste and scrap of cadmium.

20Vo 8108.30.00 Waste and scrap of titanium.

207o 8109.30.00 Waste and scrap of zirconium.

207o 8110.20.20 Waste and scrap of antimony.

20Vo 81 12.13.00 Waste and scrap of beryllium.

207o 8112.22.00 Waste and scrap of chromium.

20Vo 8112.52.00 Waste and scrap of thallium.

207o 8112.92.00 Unwrought waste and scrap; powders.

20Vo 6ll 2016 Miscellaneous Fees and l*vies No.

29 PART II Part I shall not apply to exports to Export Processing Zones.

PART ms.5 (4) (1) The specific rates of export levy on goods specified in Part I of this schedule shall be adjusted for inflation at the beginning of every financial year in accordance with this paragraph.

(2) Each rate of export levy specified in column 3 of the table in Part I of this schedule shall be replaced by the rate of export levy computed by reference to the following formula- AxB Where- A is the rate of export levy on the day immediately before the adjusffnent day; and B is the adjustment factor for the adjustment day calculated as one plus annual average rate of inflation of the preceding financial year.

(3) For the purpose of this Part- "adjustment day" means lst July of every year; "inflation" means the average annual inflation rate in a financial year.

"financial year" means the period of 12 months ending on 30th June ofevery year.

612 Levies 2016 No.

29 Miscellaneous Fees and SECOND SCHEDULE PART As.7(3)(a) GOODS EXEMPT FROM IMPORT DECLARATION FEE WHEN IMPORTED OR PURCHASED BEFORE CLEARANCE TIIROUGH CUSTOMS The following goods are exempt from payment of import declaration fee when imported or purchased before clearance through customs- (i) goods destined for approved duty free shops; (ii) goods destined for approved Export Processing Zones enterprises; (iii) goods destined for approved enterprises manufacturing under bond; (iv) accompanied or unaccompanied used personal effects; (v) ammunition, weapons or implements of war imported by the Government; (vi) household and personal effects including motor vehicles, provided such motor vehicles qualify for exemption from duty under the Fifth Schedule to the East African Community Customs Management Act, 2004; (vii) posted parcels, excluding goods imported for ffade; (viii) gifts or donations, excluding motor vehicles, by foreign residents to their relatives in Kenya for their personal use; (ix) samples which in the opinion of the Commissioner have no commercial value; (x) gifts and supplies for diplomatic and consular missions and to the United Nations Missions; (xi) goods destined for official aid-funded projects; (xii) currency notes and coins of current issues imported by the Central Bank of Kenya or by a financial institution with the approval of the Central Bank of Kenya; postage, revenue and excise stamps; (xiii) explosive and pyrotechnic products imported by the Government; (xiv) gifts by foreign Governments or international organizations to charities and foundations; 613 2016 Miscellaneous Fees and Levies No.

29 (xv) aircraft; (xvi) aircraft catering stores for use in an aircraft owned and operated by a designated airline; (xvii) currency notes, coins, travellers cheques and bullion; (xviii) rail locomotives, wagons (86.0 to 86.06) and rail containers (86.0e); (xix) ships weighing 250 tonnes or more; (xx) goods from the East African Community Partner States that meets the East African Community Rules of origin; and (xxi) raw materials for direct and exclusive use in construction by developers or investors in industrial parks of one hundred acres or more located outside the municipalities of Nairobi and Mombasa as approved by the Cabinet Secretary upon recommendation by the Cabinet Secretary responsible for matters relating to industrialisation.

PART Bs.

8(6) GOODS EXEMPT FROM THE RAILWAY DEVELOPMENT LEVY WHEN IMPORTED OR PURCHASED BEFORE CLEARANCE THROUGH CUSTOMS The railway development levy shall not apply to goods imported or purchased before clearance through customs- (i) for the implementation of an official aid funded project; 614 Miscellaneous Fees and Levies 2016 No.29 (ii) for official use by a diplomatic mission, Cap.

l79.

institution or organization gazetted under the Privileges and Immunities Act; (iii) by the United Nations or its agencies; (iv) from the East African Community Partner States provided that they meet the East African Community Rules of origin; and (v) raw materials for direct and exclusive use in construction by developers or investors in industrial parks of one hundred acres or more located outside the municipalities of Nairobi and Mombasa as approved by the Cabinet Secretary upon recofirmendation of the Cabinet Secretary responsible for matters relating to industrralization.

lI.