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Home Customs & Border Control About Customs Tax Remission for Export Office


Tax Remission for Export Office PDF Print

Tax Remission for Export Office

The government of Kenya through the Tax Remission for Exports Office encourages local manufacturers to export their products. This is achieved by remitting duty and VAT on raw materials used in the manufacture of goods for export.

For the purposes of this scheme, to manufacture includes any process by which a commodity is finally produced. This includes assembling, packing, bottling, repacking, mixing, blending, grinding, cutting, bending, twisting, joining or any other similar activity. This remission is, however, not granted for the importation of plant, machinery, equipment, fuel and lubricants, or in respect of suspended or dumping duty.

There are two types of exporters:

i) Direct exporters - manufacturers who import raw materials, manufacture, then export the finished product.
ii) Indirect exporters - a manufacturer /producer who imports goods for use in the production of goods for supply to another manufacturer for use in the production of goods for export.

An application of remission (C 56) under this programme must be supported by-:

A bonafide export order/contract for specified export goods or a letter of credit.

A detailed production plan.

A list of goods imported including description,

Tariff classification, quantity, value and amount of duty/VAT to be waived.

The value of imported goods for which remission is being requested must exceed one million Kenya shillings. Remission of duty under the scheme is conditional on the applicant undertaking in Form C56 to pay duty on any imported goods that have not been used in the production of approved exports or indirect exports. Goods imported under this scheme shall be entered on Form C15 and shall have security bond posted, covering the taxes, on form CB13. This security bond shall be cancelled only after:

The reconciliation declaration (C 57) has been verified and approved by EPPO, and any unused imported goods have been re-exported.
b) Duty has been paid.

A reconciliation declaration (C57) shall be submitted to EPPO in 3 copies within 9 months from approval date. Relevant certified copies of all C15s, C29s, Shall support this reconciliation; export transfer invoices for exported goods incorrect exports and or domestically sold goods as the case may be. The remission from duty may be renewed for another 9 months where:-

(a) Fulfilment of an export or domestic sales order has been delayed or partially achieved.
(b) Where production delivery for export can be established to be regular or ongoing.

Any queries on TREO matters should be addressed to :

Ministry of Finance
TREO
P.O. BOX 30007
NAIROBI
Or Tel. 338111 extension 33140 Mr O Ajumba

 



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