KenTrade has withdrawn the proposed user fee indefinitely following a directive from the Treasury according to Mr Amos Wangora, KenTrade Chief Executive Officer. The user fee was introduced last week on the single window platform for clearing goods at Mombasa Port.
“We notify all our stakeholders that following consultations, the recently introduced user fees on the national electronic single window (Kentrade TradeNet System) services have been withdrawn,” KenTrade said in a short public notice.
The agency had directed importers to pay user fee of Sh5,000 for registration, Sh750 for a Unique Consignment Reference number and an arrival notification fee per vessel of Sh7,500, each of the costs attracting VAT at 16 percent.
Kenya Association of Manufacturers (KAM)had complained that the new levies would make Kenya’s good noncompetitive.
On its part, Kentrade intended use revenue from the levy to fill the Sh 400 million annual budgetary gap it faces. The budgetary allocation of Sh 600 million the agency has been receiving from the Exchequer is not sufficient to meet its expanding roles, KenTrade had argued in justifying the levy.
Improved compliance, revenue collection and traceability have increased compliance and ensures correct revenue yield, the agency said. Over US$22.19 million is collected through the system per year with majority of Government agencies recording double digit growth in revenue year on year, according to KenTrade.
With its key mandate as trade facilitation, KenTrade has in the recent years launched a number of other trade facilitation services. For Instance, in 2017, Kenya became the first country in the East Africa Community (EAC) to fulfill World Trade Organization (WTO) Trade Facilitation Agreement that requires member states to publish their trade procedures online. The platform is known as InfoTrade portal.
The portal displays step-by-step procedures to be followed, with contact information on inquiry points, access to forms and other required documents and all relevant trade and customs laws involved in exports and imports.
The development of the InfoTrade Portal was in response to gaps identified in cargo clearance information among the trading community and the need to consolidate all the procedures into one portal accessible to all those involved in International Trade.
Another trade facilitation tool that was launched recently is WatchList Screening System- The i-Screen Kenya system. Watch List Screening system allows traders to quickly identify individuals and entities that present a potential source of risk to their business, territory, or overall safety, and then efficiently manage the risks.
“This will help the importers from a global perspective in identifying the legit suppliers while sourcing for import products. It provides credible information on international businesses, minimizes the chances of traders being swindled by unscrupulous entities, provides a platform for verified transactions and reduces time spent pursuing leads with whom one cannot trade with,” said Wangora.
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