LEGAL NOTICE NO.172

THE CUSTOMS AND EXCISE ACT

(Cap. 472)

 
 

IN EXERCISE of the powers conferred by section 234 of the Customs and Excise Act, the Minister for Finance makes the following Regulations:-

THE CUSTOMS AND EXCISE (AMENDMENT) REGULATIONS.
2006

  1. These Regulations may be cited as the Customs and Excise (Amendment) Regulations, 2006 and shall come into operation on the 1st January, 2007.
  2. The Customs and Excise Regulations, in these Regulations referred to as “the principal Regulations” are amended in regulation 188 by renumbering the existing provision as sub regulation (1) and by inserting the following new sub regulation (2):

2). (a)   Every bottle or container of wine or spirits manufactured in or imported into Kenya shall have affixed thereon an excise stamp in the manner specified in paragraph (c).
(b)  Every Excise stamp shall-

  1. be of such size as the Commissioner may prescribe;
  2. be serially numbered;
  3. bear an ultraviolet working;
  4. bear the words “Kenya Revenue Authority” and the logo thereof;
  5. bear letter “W” in the case of wine, letter “S” in the case of spirits;
  6. bear the expression “<0.750ml” or ≥ 0.750 ml; to indicate the volume;
  7. be printed using inks that do not fade when exposed to sunlight for one year or more;
  8. be printed using materials that are water fast scuff resistant;
  9. be distinguished by the following colours-
  1. orange in the case of spirits locally manufactured or imported into the local market;
  2. green in the case of wines locally manufactured or imported into the local market;
  3. maroon in the case of wines or spirits for Navy, Army, Air Force Institute (NAAFI) and Armed Forces Canteen Organisation stores (AFCO), Duty-Free shops and Diplomatic shops.

(c) The price of the stamps shall be prescribed by the Commissioner.
(d) The stamp referred to in (b) shall be fixed in tearing joint of all bottles or containers of wines and spirits in such a manner that it shall be-

  1. clearly visible when the bottle or container is displayed for sale;
  2. damaged when the stamp is removed from the bottles or containers or torn upon opening of the bottle or container.
  1. The principal Regulations are amended by inserting the following new regulations immediately after regulation 188:

                 
188A (1) No person may import wine or spirits for sale or for distribution free of charge, or for any other purpose in Kenya unless such person is registered with Commissioner .

(2) Any person may import wine or spirits shall make an application for excise stamps to the Commissioner in Form ES 2A at least sixty days prior to the date of importation, and shall submit payment for such stamps as prescribed by the Commissioner.

(3) The Commissioner shall appoint a suitably qualified person as a printer to print and deliver stamps to the foreign manufacturers and suppliers of wines or spirits intended for importation into Kenya, and such a printer shall not print any stamps except upon the request of the Commissioner.

(4) The stamps may, with the authority of the Commissioner, be affixed to the containers or bottles in bonded warehouse or an approved place in Kenya.

(5) The printer shall notify the Commissioner of the number and nature of excise stamps supplied to the manufacturers within seven days of delivery thereof.

(6) Any person intending to manufacture wines or spirits for sale in Kenya shall apply to the Commissioner, for excise stamps Form ES 2B not less than sixty days before the date of such manufacture.

(7) Where the Commissioner approves the application submitted under sub-paragraph (a) the manufacturer shall submit payment for the stamps.

(8) A manufacturer or importer shall keep a daily register indicating the usage of the various types of stamps and such record shall be produced on demand by the Commissioner.

(9)   The Commissioner may require an importer or a manufacturer to furnish        him with any record kept by him regarding excise stamps and such record shall be produced on demand.

(10)   Every importer and manufacturer shall submit to the Commissioner a monthly reconciliation statement in such a manner as may be prescribed by the Commissioner showing but not limited to the following-

    1. a summary of the usage of excise stamps issued during the month, including the stamps brought forward from the previous month;
    2. stamps in stock on the last day of the previous month and brought forward for use during the month;
    3. stamps applied to wines or spirits manufactured or imported during the month;
    4. stamps spoiled or damaged during the process of affixing and certified as so damaged or spoiled by the proper officer.

 

(11)  The monthly reconciliation shall be furnished on or before the twentieth day of the month succeeding the month in which excise duty becomes due and payable, and if the twentieth day falls on a weekend or a public holiday, then the reconciliation shall be submitted on the last working day prior to the twentieth day.
(12)   An importer or manufacturer who fails to submit a monthly reconciliation statement in accordance with sub regulation  (10) or within the period prescribed in sub regulation (11) shall be guilty of an offence and liable to a fine of ten thousand shillings or five percent of the total excise duty due, whichever is the higher.

(13)   The Commissioner may require an importer or manufacturer to furnish evidence of payment of duty in respect of-

  1. stamps supplied to locally manufactured wines or spirits;
  2. stamps affixed to imported wines or spirits;
  3. stamps in excess of one per centum of the total issued not accounted for in the monthly reconciliation before authorizing the issue of fresh stock of excise stamps.

 

(14)   Where wines or spirits are imported as passenger’s baggage, all spirits in excess of one litre or wines in excess of two litres which do not bear excise stamps shall be subject to excise duty or be forfeited or be dealt with as the Commissioner may deem fit.

(15)   In the event of unavailability of stamps for any reason the Commissioner may, with the prior approval of the Minister, and upon prior payment of all duties, allow wines or spirits manufacturers and importers to sell or import wines or spirits without excise stamps.

(16) Any person who-

  1. imports wines or spirits without having registered with the Commissioner as provided for in these Regulations;
  2. fails to maintain such monthly excise stamp register or record as the Commissioner may require;
  3. fails to affix an excise to a wine or spirit bottle or container in accordance with these regulations manner as may be prescribed by the Commissioner;
  4. prints over or defaces an excise stamp fixed on a bottle or container;
  5. knowingly submits a return which is incorrect in any manner;
  6. fails to furnish any information that the Commissioner may require;
  7. has possession of wines or spirits in respect of which the excise stamp has not been affixed and which are not destined for export;
  8. attempts to acquire or acquires an excise stamp without prior authority from the Commissioner; or
  9. prints, makes or in any way creates an excise stamp without the authority of the Commissioner;

 

Shall be guilty of an offence and liable to a fine not exceeding one million five hundred thousand shillings.

(17) Any wines and spirits in respect of which an offence is committed under these Regulations shall be forfeited and disposed of in such manner as the Commissioner may deem fit.

(18) The value of imported stamps for the purposes of calculating import duty shall be calculated in accordance with section 127 and Seventh Schedule to the Act.

188B. The material wrapping the container for wholesale purposes has to be printed thereon the words   “FOR EXPORT ONLY”, if the wines or spirits are for export or “FOR USE IN KENYA”, if the wines or spirits are for sale in Kenya or “DUTY FREE” if the wines or spirits are for sale to “Duty-free shops, Navy, Army, Airforce Institute (NAAFI), Armed Forces Canteen Organization (AFCO) or Diplomatic shops”.

 

 

 

 
 
 
 
Copyright © 2005, Kenya Revenue Authority. All Rights Reserved.