Bonded warehouses being closed for small traders

id : 101 Customs   
posted by : Admin
 DOQ : 2020-05-22 12:06:46

Independent importers of wines and spirits, cigarettes, motor vehicles and spare parts are set to be hit hard as KRA effects tough new rules to prevent them from using bonded warehouses.

Bonded warehouses allow such importers to hold goods in KRA Customs controlled premises without paying duty until they are ready to sell them in the local or export markets. It also allows them to sell in smaller quantities to customers and pay tax on only what they have sold.

From 12 August 2020, such goods will no longer be warehoused and will attract full custom duty at the time of entry into the country.

Only large manufacturers such as EABL will be allowed to use custom bonded warehouses for wines, spirits and other alcohol related products.

The net effect is that small independent importers, who have provided thriving competition for local brewers in supplying the bar and restaurant industry will technically be knocked out of the market.

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