Shipping & Logistics

KRA to auction overstayed goods at port

auction

Car dealers view the more than 300 vehicles scheduled for auction by the Kenya Revenue Authority (KRA) at the Port of Mombasa on 21st June 2021. PHOTO | KEVIN ODIT | NMG

Summary

  • The exercise to auction 243 lots, according to the gazette notice issued by the authority, will help the taxman to meet its revenue target before the end of 2021.
  • The taxman in the notice has invited interested bidders to view the goods with full details being listed in a public notice published in a gazette notice dated 29th October this year.
  • Goods imported for domestic use and transit cargo to Uganda, South Sudan and Rwanda are among those gazetted for auctioning today.

The Kenya Revenue Authority (KRA) will auction assorted goods which have overstayed and whose owners have failed to pay the required tax.

The exercise to auction 243 lots, according to the gazette notice issued by the authority, will also help the taxman to meet its revenue target before the end of 2021.

The taxman in the notice has invited interested bidders to view the goods with full details being listed in a public notice published in a gazette notice dated 29th October this year.

In the notice, the taxman intends to auction different types of goods ranging from electronic, cars, household items among others imported goods which have overstayed in different customs warehouses in the port city.

“Pursuant to the provisions of section of the 42 of the East African Community Customs Management Act, notice is given that unless the undermentioned goods are entered and removed from the custody of the Customs Warehouse Keeper, Kilindini within 30 days of this notice, they may be sold by public auction on 1st December 2021,” read part of the gazette notice.

KRA in its notice urged interested buyers to view the goods at eleven warehouses in Mombasa on November 29 and 30 during office hours ahead of the auction day.

Goods imported for domestic use and transit cargo to Uganda, South Sudan and Rwanda are among those gazetted for auctioning today.

Southern regional coordinator, Joseph Tonui said the auction will be held in an environment where all Covid-19 protocol measures will be adhered to.

“The auction will be open to all Kenyans and the process will be transparent where we expect to auction goods including cargo which were meant for transit,” said Mr Tonui.

The majority of traders importing cargo through the port of Mombasa are facing economic difficulties as witnessed by their failure to clear cargo on time forcing the taxman to conduct the fifth auction of goods this year to decongest the facility.

Importers have been urging the government to consider giving them more time to clear the goods or offer them special rates during this pandemic period to avoid their goods being auctioned.

KRA auctions goods and vehicles which have overstayed after owners fail to pay taxes or have been mis-declared to decongest port facilities.

But before the auction, the Commissioner for Customs and Border Control gives notice by publication in the gazette and if they are not removed within 30 days from the date of the notice, the commissioner assumed the goods as abandoned to customs hence they were announced for auction.

During the auction, prices are determined by a number of expenses including duties, the expenses of removal and sale, the rent and charges due to the custom, the port charges, freight and any other charges.

The reserve price of goods offered at an auction is set by the Commissioner which includes duties, expenses, rent, freight and other charges and goods cannot be offered at a price below the reserve price.

During the last auction, the taxman collected a total of Sh201,398,000 of revenue where Sh138,378,000 was collected from consolidated cargo, Sh27,531,000 of revenue obtained from motor vehicle sales and Sh35,489,000 from re-offers.

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