Taxman cuts Mombasa port clearance time by 50%
The average time it takes to release goods at the Port of Mombasa has dropped to two days compared to over four days two years ago in a move that the Kenya Revenue Authority (KRA) attributes to increased efficiency.
In an update shared on Wednesday, the taxman said importers are now spending an average of 51.43 hours to get their goods compared to 112.6 hours experienced in 2021/22 period.
Overall, KRA said it has recorded a 54 percent reduction in the time taken to release goods from Port of Mombasa, Inland Container Depots and at Kenya Railways Corporation Sheds over the last three years.
The time efficiency enhancing measures effected by KRA resulted in a 4.9 percent increase in customs revenue to KES791.368 billion during the 2023/2024 financial year, compared to the same period in FY2022/2023.
KRA’s customs revenue collections comprised revenues from oil taxes, which grew by 10.3 percent to stand at KES300.77 billion and non-oil taxes which stood at KEs490.6 billion.
The authority said increased adoption of pre-arrival cargo processing boosted operations, enhancing systems capabilities of the Customs Integrated Customs Management System (iCMS) that now allow for the declaration of customs entries using the bill of lading as the base document. This allows processing to commence even before the cargo arrives.
Furthermore, all goods arriving at the Port of Mombasa must now be inspected at the port of origin. This ensures compliance through the issuance of a pre-export certificate of conformity by licensed inspectors appointed by the Kenya Bureau of Standards (KEBS).
Read also: KPA tips Kisumu Port to cross 200,000MT of cargo this year
KenTrade’s Trade Facilitation platform
Additionally, KRA system’s integration with KenTrade’s Trade Facilitation platform has been instrumental in streamlining the customs clearance process, enhancing the efficiency of service delivery.
This integration allows seamless sharing of critical information, such as import declarations and supporting documents, among Partner Government Agencies, thereby unlocking the issuance of licenses and permits on time with reduced human interaction. This helps eliminate the need for unnecessary office visits by importers and customs clearing agents alike.
Taxman said the customs department realized an 11.7 percent rise in import values being the value of goods specified in the schedule as ascertained from the original invoice and includes the charges paid or payable for insurance, excise duty, freight charges and all other charges incidentally levied on the purchase of such goods.
Despite the rise in overall import values, oil and non-oil taxes performance were in part affected by growth in exemption and remissions, which grew by 23.8 percent, driven by special exemptions accorded to some food commodities to mitigate against adverse effects of drought and reduce the cost of living.
