• Tuesday, 15 October 2024
KRA cuts goods clearance time to two days from four

KRA cuts goods clearance time to two days from four

 Kenya Revenue Authority (KRA) has cut good clearance by 61.17 hours to 51.43 hours (around two days) over the last three years.

In the 2021/2022 fiscal year, good clearance at the Port of Mombasa, Inland Container Depots, and at Kenya Railways Corporation Sheds stood at 112.6 hours (average four days).

The taxman links the improvement to increased adoption of pre-arrival cargo processing, which grew from 25.28 percent in 2021/2022 fiscal year (FY) to 40.55 percent in 2023/2024 FY.

“Enhanced systems capabilities of the Customs Integrated Customs Management System (iCMS) now allow for the declaration of customs entries using the bill of lading as the base document, enabling processing to commence even before the cargo arrives,” KRA said in a statement.

“To further strengthen risk management, all goods arriving at the Port of Mombasa must now be inspected at the port of origin,” it added.

“This ensures compliance through the issuance of a Pre-Export Certificate of Conformity by licensed inspectors appointed by the Kenya Bureau of Standards (KEBS).”

Improved efficiency resulted in a 4.9 percent growth in customs revenue to Sh791.368 billion in the review period.

KRA’s customs revenue collections comprised revenues from oil taxes, which grew by 10.3 percent to stand at Sh300.77 billion, and non-oil taxes that stood at Sh490.6 billion.

“The KRA’s integration with KenTrade’s Trade Facilitation Platform has been instrumental in streamlining the customs clearance process,” KRA continued.

“Seamless sharing of critical information, such as import declarations and supporting documents, among Partner Government Agencies (PGAs) has facilitated the issuance of licenses and permits with reduced human interaction, eliminating the need for unnecessary office visits by importers and customs clearing agents.”

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