1. DEFINITION

Bonded Warehouse

Section 2 of the East African Customs Management Act 2004, states;

“A Bonded Warehouse means any warehouse or other place licensed by the Commissioner for the deposit of dutiable goods on which import duty has not been paid and which have been entered to be warehoused”.

2. 2. LEGAL PROVISIONS

The licensing conditions for a bonded warehouse are spelt out under Section 62-69 of the East African Community Customs Management Act, 2004 as read together with Regulation 74-81 of the East African Community Customs Management Regulations, 2010.

3. PROCEDURE FOR LICENSING A BONDED WAREHOUSE

Any person seeking to operate a bonded warehouse shall make an application in writing to the Commissioner of Customs and Border Control highlighting the goods proposed for warehousing. The application will be reviewed alongside the following: -

    Documentary Requirements;

  Structural Requirements;

1.        Location

-The facility must be accessible from the highway through an all-weather road

2.        Construction Standards

-Have its entire surface area properly paved and fully compacted with suitable materials, preferably paving blocks (Cabro)

-Provide adequate parking space commensurate to the operations as the Commissioner may deem fit

3.        Security

-Have its entire area enclosed with a perimeter stone wall of a height not less than three (3) meters from the ground with an electric fence

-Have floodlights installed to light up its entire area

-Provide surveillance cameras (CCTV) covering the entire facility which is accessible to Kenya Revenue Authority

-Provide round the clock security services from a reputable security firm

4.        Safety and Comfort

-Have fixed or mobile firefighting equipment

-Have assured water supply

-Enforce strict fire prevention measures

5.        Storage Capacity

-Provide adequate space for the storage of the goods

6.        Handling Capacity

-Provide loading and offloading facilities

7.        Office Accommodation

-Provide suitable and adequate Customs office with furniture, computer, printer network connectivity and other office requirements

-Provide computer software compatible with that of Kenya Revenue Authority systems

4. ALLOCATION OF BONDED WAREHOUSE LICENCE

Upon approval of the application by the Commissioner of Customs and Border Control, the applicant shall be notified to submit the application on iCMS for generation of a bonded warehouse number and proceed with execution of the customs security bond(CB6) to cover taxes for the goods while in the warehouse.

5. ISSUANCE OF THE LICENCE

Upon bond execution, the iCMS will generate the e-slip for payment of the bonded warehouse fee and the license generated for activation of the warehouse operations.

6. PROCEDURE FOR DE-BONDING A BONDED WAREHOUSE

The bonded warehouse operator shall submit a formal application to the Commissioner expressing the intention to close down the facility.

A comprehensive audit will be conducted to confirm that there are no outstanding tax obligations and that all goods have been properly accounted for before an approval to de-bond the warehouse is granted.

Where outstanding issues have been identified, the bonded warehouse operator shall be notified to account for any revenues, loss or discrepancy relating to the goods. If there are no outstanding customs issues, or if such issues have been resolved, an approval letter will be issued to the operator. He will then apply for a de-bonding certificate in iCMS.

Upon issuance of the de-bonding certificate, the Customs Bonds Management Unit will facilitate the cancellation of the Security Bond (CB6) in the system.

NOTE:

• The licence fee for a bonded warehouse shall be one thousand five hundred dollars, which expires every thirty first day of December every year.
• Where a licence is issued in the course of a calendar year, the licence fee shall be computed on a pro rata basis.

For further inquiries, you can reach out to our Call Centre on Tel: 020 4 999 999; 0711 099 099; 0709013067 or Email: CBClicensing@kra.go.ke