Companies

Job loss fears as 33 firms lose import permits

kebs

Kebs managing director Charles Ongwae. FILE PHOTO | NMG

The taxman and the bureau of standards have rejected applications for import licences from 33 firms in an ongoing bid to improve inspection of foreign goods.

The move puts tens of jobs at risk as the State agencies seek to seal loopholes that have been used to smuggle in sub-standard goods and evade tax.

All importers of consolidated cargo through both air and sea ports are required from March this year to register with the Kenya Bureau of Standards (Kebs) and the Kenya Revenue Authority (KRA).

Kebs head of inspection Eric Ochieng said in a statement yesterday only 20 firms had been cleared after meeting all the procedures laid out by the KRA and the standards watchdog.

A total of 53 firms had applied to be considered as consolidated cargo importers.

ALSO SEE: Kebs to destroy substandard goods worth Sh250 million

“Only 20 firms have been approved to import as consolidators,” he said.

The Business Daily could not immediately establish how many workers are on the affected firms’ payroll.

Consolidated cargo refers to a wide range of products or general merchandise imported in small quantities or parcels belonging to several traders who have pooled or assembled together with their parcels to form one consignment.

The new regulation will see the KRA and Kebs appointed agents to inspect all consolidated cargo at the port of origin. According to the new rule, all consolidated cargo must be inspected in the country of supply by the Kebs appointed inspection agents and issued with a Certificate of Inspection before importation into Kenya.

The Kebs has contracted five agencies to inspect on its behalf goods destined to Kenya from across the globe under the Pre-Export Verification of Conformity programme.

The licensed inspection agencies include Socie’te’ Ge’ne’rale de Surveillance SA, Intertek International Ltd, China Certification and Inspection (Group) Co. Ltd and Bureau Veritas.

“Consolidated cargo will only be managed by registered consolidators who will liaise with Kebs-licensed cargo inspectors across the world to have goods audited at the port of origin before packing into containers,” said Kebs managing director Charles Ongwae (pictured above) earlier.

“No other inspection will be conducted upon arrival but the handling of clearance via our online single window.”

ALSO SEE: Kebs allowed time to file response in Sh540m stickers case