Clearing agents want rules for licence renewal

The Kenya International Freight and Warehousing Association (Kifwa) wants the Kenya Revenue Authority (KRA) to provide guidance on the procedure for renewing customs licence.

Kifwa said since 2016, there has been no proper public guidance on the procedure to renew and apply for new customs agents’ licence in Kenya.

“We have about1,000 clearing agents in Kenya licensed by the customs department of KRA under EACCMA 2004 section 145. There has been no proper guidance on the procedure to renew and apply for new customs agents’ licence in the country since 2016,” said Mr Ojonyo in a letter dated October 3 and addressed to KRA Commissioner General John Njiraini.

Although agents applied for licence renewal from 2016, the chairman said only a few were invited for vetting, an exercise which was terminated before all agents went through the process.

“Although all customs agents remained in practice, in 2017, some companies had Simba access passwords withdrawn while other remained in practice without clear guidelines by KRA which culminated to individual companies maneuvering with KRA officers to remain in operation,” the letter said. Mr Ojonyo said that this year, some few companies were selected to pilot on various platforms namely SCT and ICMS.

“Kifwa is concerned by the continued selective approach taken by KRA to Kifwa members negating the principle of fair competitiveness for better quality service and opportunity,” said Mr Ojonyo in the letter copied to the Commissioner for Customs and Border Control Mr Julius Musyoki.

The letter is also copied to Competitions Authority of Kenya Director General Francis Kariuki and Treasury CS Henry Rotich

Kifwa has called for a meeting with the KRA to address the issue

“It is in this regard that Kifwa wishes to request for a meeting with KRA at times tower to share the frustration by agents in regard to customs license renewal and the procedure therein for onward sharing the outcome with Kifwa members for information.

It is therefore to request the office of the Commissioner General, KRA to take lead to meet the leadership of Kifwa on Thursday October 11 to come up with a clear process for customs license renewal to be communicated publicly,” he said.

This is not the first time Kifwa is engaging KRA on the issue of license renewal.

Although a case is pending over the same, the chairman last month wrote to the Commissioner for Customs and Border Control seeking an out of court settlement over the same.

The letter dated September 20 said in part ‘I wish to draw to your attention to the case court No JR MISC.APPLICATION NO.204 OF 2017, that you must be aware of since KRA and customs are part to it,”

Mr Ojonyo said the court case was time consuming and expensive and that was a policy matter that can be addressed.

“Taking into account the expense and time consumed in court corridors and considering that the matter at hand is based on policy and compliance for that matter it is my honest opinion that you consider the option of the Alternative Dispute Resolution (ADR).

I am the current chairman of Kifwa and would consider it unwarranted to engage in legal battle if the same can be addressed within the parameters of the existing MOU between Kifwa and KRA with emphasis to EACCMA and the consent order of May 30, 2017,” Mr Ojonyo said in the September 20 which was received at KRA on September 21.

Mr Ojonyo said there are companies that that have continued to be adversely affected by the continued hard stand by KRA and by extension Customs department.

“It is my undertaking that all companies under my watch must be compliant and should be treated equally.

The case is due for hearing on November 20 and your prompt response on my suggestions will be of importance to our next course of action in moving forward,” Mr Ojonyo said.