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Somali Business Community: We Are The Target In KRA’S New Valuation Benchmarks

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importBy Our Correspondent
The Association of Somali Clearing Agents and Importers in Mombasa have opposed Kenya Revenue Authority’s new valuation benchmarks citing a possible target of the community’s businesses through introduction of backdoor valuation of imported goods.

“We strongly believe that there is something in it that tells us that we are targeted in these benchmarks. If you look at items that the KRA listed, you will find we are major dealers in all of them” said a statement by the association

“Our rights as business community must be respected at all times, Just like other businesses  .We are now analyzing the situation and we will responds to this legally. We are telling them that we are not a soft target”

In a letter dated 1st of November 2016, signed by commissioner of customs and border control department Mr. Julius Musyoki, the revenue authority said it has renewed revenue yield for specific items such as fabrics, curtain materials, interlining materials, ready-made garments, plastic shoes, speakers, electronics, cooking oil, consolidated cargo, hawkers’ goods and tyres.

Officials of the association said they have now engaged legal and valuation professionals to analyze the legality of the new valuation benchmarks and the impact it will have to their businesses.

“We have constituted a strong team of business and taxation experts including international trade professionals to give us options to deal with this valuation issue”

letterOfficials of the association have also said that they are studying international practice on customs value which they said is primarily based on transaction value.

They said KRA violated Article VII of the General Agreement on Tariffs and Trade which lays down the general principles for an international system of valuation.

According to international customs valuation by World Trade Organization, the transaction value should be the primary means of valuation to determine the amount of duties paid on imports.

“It stipulated that the value for customs purposes of imported merchandise should be based on the actual value of the imported merchandise on which duty is assessed, or of like merchandise, and should not be based on the value of merchandise of national origin or on arbitrary or fictitious values” read part of the article

The association has also taken issue with the way KRA customs officers have been handling them, including unnecessary online targets of their imported goods.

The business community is now pushing for a total overhaul of the way it deals with KRA, while training and advising its members on compliance, professionalism, taxation and positive business ethics.

 

The PLU is Kenya’s Leading Muslim Publication. The PLU stands for Peace. Love. Unity.

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