The KRA Green Channel Enhances the Ease of Doing Business

BLOG 11/09/2020

At the Kenya Revenue Authority (KRA), trade facilitation is one of the key mandates of Customs and Border Control that enhances regional trade. Trade facilitation is key in enhancing revenue mobilization.

In order to enhance trade facilitation, KRA has rolled out a faster and efficient cargo clearance process called “Green Channel”. The Green Channel system is based on classification of goods into either low risk or high risk for purposes of hastening their clearance processes without routine and physical examination.

The goods still pass through the non-intrusive cargo scanners, which hastens clearance.

With the Green Channel system in place, cases of delayed payments, non-compliance of imports and lengthy verification processes remain in the past.

This has reduced clearance time to 30 minutes or an hour upon presentation of complete and accurate documents by the Customs agents.

The Green Channel was previously a preserve of importers and exporters of an Authorized Economic Operator (AEO) status. The AEOs were by default, registered for pre-clearance of cargo resulting to expedited cargo clearance processes.

Nonetheless, companies that qualify for the Green Channel treatment must now be compliant, keep appropriate records, meet the security and safety standards, and have no record of fraud-related issues. Passengers who have nothing to declare but are carrying dutiable goods within the prescribed free allowance also qualify for the green channel clearance.

KRA authorizes Green Channel treatment for export of tea, coffee, spices or herbs that meet the criteria below:

  1. Originate from Kenya
  2. Are declared as exports through Kilindini, lodged under exports regime E1/EX1
  3. Classified under tariff (CET,2017) heading 09 (Chapter 9: Tea, Coffee, and spices)
  4. Are transported in a sealed truck
  5. Are scanned (NII) on entry into the port,
  6. The exporters shall be subject to Post Clearance Audit (PCA)

 

Under imports, KRA authorizes Green Channel treatment only for brand new motor vehicle spare parts that meet the following conditions:

  1. Are declared as imports through seaport of Kilindini or Inland Container Deport (ICDN)
  2. Are classified under tariff (CET, 2017) heading 8708 (Parts and accessories of the motor vehicles of headings 87.01 to 87.05),
  3. Are in a 20-tf container,
  4. Are scanned (NII) on entry at the port,
  5. Are subjected to a Post Clearance Audit on reaching the factory/owner’s premises.

 

Cynthiah Kerubo

KRA Tax Education

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