taxNews
Konnectplus
Kenya

Bonded warehouses being closed for small traders

id : 101 Customs   
posted by : Admin
 DOQ : 2020-05-22 12:06:46
   Admin
  
101_20051156.jpg

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.


You may also like...

WHAT HAS CHANGED? HMRC has changed its approach to VAT on deposits. The change affects situations w

104_20051119.jpg

The Kenya Revenue Authority has turned its guns on hundreds of Container Freight Stations (CFSs) on

103_20050450.jpg

Goods can be stored in a Custom Bonded Warehouse up to nine months without having to pay VAT or othe

102_20051257.jpg

102_20051257.jpg

Kenya’s Taxman will introduce an amnesty programme for income tax, VAT and Excise Duty once the Fi
In Summary The powers to search any premises and seize goods, documents or storage device are don

96_20040624.jpg

96_20040624.jpg

Kenyans have until 5pm Monday to submit their views in writing on the Value added Tax (Amendment of

my Views
(0)
taxBaddy.com @2014-2020 All rights reserved
Powered by : gravityworks@taxbaddy.com