NXrI0NAL COUNCIL FOR LA",'REPORFING 1,113RARY SPECIALISSUE Kenya Gazette Supplement No. 81 (National Assembly Bills No. 30) 14 1 ^ 70 1 REPUBLIC OF KENYA KENYA ^GrAVZETTE SUPPLEMENT NATIONAL ASSEMBLY BILLS, 2015 NAIROBI, Ilth June, 2015 CONTENT Bill for Introduction into the National Assembly — PAGE The Miscellaneous Fees and Levies Bill, 2015 ........................................... 2085 P6UNCIL FOR LAW REPOf ECEIVED P4. A9X 1940r9§409 'FEL.,274 PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI
Transcript
NXrI0NAL COUNCIL FORLA",'REPORFING
1,113RARYSPECIALISSUE
Kenya Gazette Supplement No. 81 (National Assembly Bills No. 30)
14
1 ^ 701
REPUBLIC OF KENYA
KENYA ^GrAVZETTE SUPPLEMENT
NATIONAL ASSEMBLY BILLS, 2015
NAIROBI, Ilth June, 2015
CONTENT
Bill for Introduction into the National Assembly —PAGE
The Miscellaneous Fees and Levies Bill, 2015 ........................................... 2085
P6UNCIL FOR LAW REPOf
ECEIVED
P4. A9X 1940r9§409
'FEL.,274
PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI
2085
THE MISCELLANEOUS FEES AND LEVIESBILL, 2015
ARRANGEMENT OF CLAUSES
PART I—PRELIMINARY
ClauseI—Short title and commencement.
2—Interpretation.
PART 11—ADMINISTRATION
3—Functions and powers of the Commissioner and otherofficers.
4—Authorised officers to have powers of police officers.
PART 111—IMPOSITION OF FEES AND LEVIES
5—Imposition of export levy.
6—Exemption.
7—Import declaration fee.
8—Railway development levy.
9—Application of the East African Community CustomsManagement Act, 2004.
10--Customs formalities may be carried out byinformation technology.
PART V—MISCELLANEOUS
I I—Penalty.
12—Regulations.
SCHEDULES
FIRST SCHEDULE—Rates of export levy
SECOND SCHEDULE—Goods exempt from importdeclaration fee and railwaydevelopment levy
2086 The Miscellaneous Fees and Levies Bill, 2015
THE NUSCELLANEOUS FEES AND LEVIES
BILL, 2015
A Bill for
AN ACT of Parliament to provide for the
imposition of duties, fees and levies on importedor exported goods and for connected purposes
ENACTED by Parliament of Kenya, as follows-
PART I—PRELIMINARY
1.This Act may be cited as the Miscellaneous Fees slo^lill^
and Levies Act, 2015.
2. (1) In this Act, unless the context otherwise Interpretation.
requires-
"Authority" means Kenya Revenue Authority Cap. 4 ;69
established by the Kenya Revenue Authority Act;
"authorised officer" means any officer appointed
under section 3;
"Cabinet Secretary" means the Cabinet Secretary for
the time being responsible for finance;
"Commissioner" means the Commissioner Generalappointed under the Kenya Revenue Authority Act, or anyother Commissioner to whompowers or functions have
been delegated under that Act;
"customs value" for the purposes of ascertaining thevalue for charging, means-
(a)the import declaration fee or railway developmentlevy, the import value of goods as appraised by
Custornsfor use as the basis for assessing theamount of import duty; or
(b)the export levy, the export value of the goods;
"East African Community Partner States" means theRepublics of Burundi, Rwanda, Uganda and the UnitedRepublic of Tanzania;
16export" means to take or cause to be taken out ofKenya to a foreign country or to an export processing zone;
"export processing zone" means an export processing Cap. 5 17
zone designated as such under the Export Processing Zones
Act;
The Miscellaneous Fees and Levies Bill, 2015 2087
"importer" in relation to goods, means a person who
owns the goods, or any other person who is, for the timebeing, in possession of orbeneficially interested in the
goods at the time of importation;
"official aid funded project" means a project funded
by means of a grant or concession loan in accordance with
an agreement between the Government of Kenya and anyforeign government, agency, institution, foundation,
organization or any other aid agency;
"person" means an individual, company, partnership,
association of persons, trust, estate, the Government, aforeign government or a political subdivision of the
Government or foreign government.
(2) For the purpose of this Act, goods shall be
classified by reference to the nomenclature set out in Annex
I to the Protocol on the Establishment of the East African
Community Customs Union and in interpreting the Annex;the general rules of interpretation set out therein shall
apply.
PART 11—ADNHNISTRATION
3. (1) The Commissioner shall be responsible for the Funcfion, and
pow , ol le
control and collection of, and accounting for, duties, fees Ccaoomissian^, and
and leviespaid under this Act and shall, subject to the olb- -fr--.
direction and control of the Cabinet Secretary, have thesuperintendence of all matters relating thereto.
(2)The Commissioner shall appoint such officers as
may be necessary for the administration of this Act.
(3) The Commissioner may authorize any officer
appointed under this section to perform any of thefunctions of the Commissioner under this Act or theregulations, other than the functions under subsection (2).
(4) Every authorised officer appointed under this
section shall enforce, and ensure due compliance with, theprovisions of this Act and the regulations, and shall make
all due inquiries in relation thereto.
(5) Every authorised officer appointed under this
section shall, on demand, produce such documentsestablishing his identity as may be approved by the
Comirrissioner.
2088 The Miscellaneous Fees and Levies Bill, 2015
(6) Every authorised officer shall, in carrying out the
provisions of this Act, regard and deal with all documents
and information relating to fees and charges and all
confidential instructions in respect of the administration of
this Act which may come into his possession or to his
knowledge in the course of his duties as confidential.
(7) Any decision made and any notice orcommunication issued or signed by any authorised officermay be withdrawn or amended by the Commissioner or bythe authorized officer concerned, and shall, until it has been
so withdrawn, be deemed to have been made, issued orsigned by the Commissioner.
4. For the purposes of carrying out the provisions of Authonsed.flicers
to hnx, p.we,, ofthis Act, every authorized officer shall, in the perforinance police offiecrs.
of his duties, have all the powers, rights, privileges and
protection of a police officer.
PART 111—IMPOSITION OF LEVIES OR FEES
5. (1) There shall be paid a levy to be known as the Impos iti on ofexport levy, on all goods specified in the First Schedule.
expoi-t fc^y.
(2) The levy shall, where more than one rate is
specified, be the higher of the ad valorem or the specificrate specified in the First Schedule and shall be paid by theexporterat the time of entering the goods for export.
(3) The ad valorem rate shall be based on the customvalue of the goods.
(4)The Commissioner shall, by notice in the Gazette,adjust the specific rate of export levy annually to take into
account inflation in accordance with the formula specifiedin Part III of the First Schedule.
6. The provisions of section 5 shall not apply to goods Exemption.
exported to the East African Community Partner States.
7. (1) There shall be paid a fee to be known as the Impo. declaration
import declaration fee, on all goods imported into the fic
country for home use.
(2) The fee shall be at the rate of two percent of the
customs value of the goods and shall be paid by theimporter of such goods at the time of entering the goods forhome use.
(3)Despite subsection (I)—
(a) import duty shall not be charged on the goods
The Miscellaneous Fees and Levies Bill, 2015
2089
specified in Part A of the Second Schedule whenimported or purchased before clearance through
customs; or
(b) goods imported under the East African
Community Duty Remission Scheme shall becharged import declaration fee of ten thousandshillings at the time of entering the goods for home
use.
(4)An importer of goods other than goods specified in
Part A of the Second Schedule shall complete the
prescribed import declaration form.
(5)An importer shall present a copy of the import
declaration form completed under subsection (4) to theCommissioner at the time of entering the goods for home
use.
8. (1) There shall be paid a levy to be known as therailway development levy, on all goods imported into the
country for home use.
(2) The levy shall be at the rate of one point five
percent of the customs value of the goods and shall be paid
by the importer of such goods at the time of entering the
goods into the country for home use.
(3)The purpose of the levy shall be to provide fundsfor the construction of a standard gauge railway network inorder to facilitate the transportation of goods.
(4) The Cabinet Secretary shall, by regulations,
establish a railway development levy fund into which allthe proceeds of the levy shall be paid.
(5) The fund referred to in subsection (4) shall be
established, managed, administered or wound up inaccordance with section 24 of the Public FinancialManagement Act, 2012 and the regulations made under that
Act.
(6)No levy shall be charged in respect of the goods
specified in Part B of the Second Schedule when importedor purchased before clearance through customs.
9.The provisions of the East African CommunityCustoms Management Act, 2004, relating to thedetermination of value of imported goods, collection andenforcement of the payment of duty shall apply for thepurposes of assessment, collection and enforcement of the
Railwaydevelopment levy.
No 18 of 2012.
Applieation of Ea^t
African CommunityCu^tmas
Management Aet,2004.
2090 The Miscellaneous Fees and Levies Bill, 2015
payment of import declaration fee, railway developmentlevy and export levy.
10. (I)Subject to such conditions as the Commissioner lonradides may beearned out by
shall prescribe, formalities or procedures under this Act informatio.
may be carried out by use of information technology in the wltudo,.
customs computerized system.
(2) The provisions of the East African CommunityCustoms Management Act, 2004, relating to registration ofusers, access and use on the customs computerized systemshall apply for the purposes of carrying out formalities andprocedures under this Act.
PART TV—NIISCELLANEOUS PROVISIONS11. (1) A person who contravenes the provisions of Offence.
this Act commits an offence.
(2) A person convicted of an offence under this Act,where no specific penalty is provided, shall be liable to afine not exceeding five hundred thousand shillings or toimprisonment for a term not exceeding two years, or toboth.
12. The Cabinet Secretary may make regulations for Regulations.
the better carrying out of the provisions of this Act.-------------------
FIRST SCHEDULE s.5(t)GOODS SUBJECT TO EXPORT LEVY
PART I
Tariff No. Tariff Description Export Levy Rate
4101.20.00 Whole hides and skins, of a weightper skin not exceeding 8 kg. whensimply dried, 10 kg. when dry-salted, or 16 kg. when fresh, wet-salted or otherwise preserved.
4102.21.00 Raw skins of sheep or lambs(pickled, but not tanned, parchment-dressed or further prepared), withoutwool on whether or not split, otherthan those excluded by Note l(c) toChapter 4 1.
4102.29.00 Other raw skins of sheep or lamb(fresh, or salted, dried, limed,pickled or otherwise preserved, but
80% or USDO.52 perkg.
80% or USDO.52 perkg.
80% or USDO.52 perkg.
The Miscellaneous Fees and Levies Bill, 2015 2091
Tariff No. Tariff Description Export Levy Rate
not tanned, parchment-dressed orfurther prepared), with wool on,whether or not split, other than thoseexcluded by Note (c) to Chapter 4 1.
4103.20.00 Other raw hides and skins (fresh, orsalted, dried, limed, pickled orotherwise preserved, but not tanned,parchment-dressed or furtherprepared), whether or not debarredor split, other than those excluded byNote I (b) or (c) to this Chapter, of
80% or USDO.52 perkg.
reptiles.Other raw hides and skins Iffresh, orsalted, dried, limed, pickled orotherwise preserved, but not tanned,parchment-dressed or furtherprepared), but not debarred or split,other than those excluded by Note 1(b) or I (c) to this Chapter, of swine.Other raw hides and skins other thanof reptiles, swine, goats or kids.Other tanned or crust bides and skinsof bovine (including buffalo) orequine animals, without hair on,whether or not split, but not furtherprepared, in the wet state (includingwet — blue).Tanned or crust skins of sheep orlambs, without wool on, whether ornot split, but not further prepared, inthe wet state (including wet-blue).Tanned or crust skins of sheep orlambs, without wool on, whether ornot split, but not further prepared, inthe dry state (crust).Tanned or crust bides and skins ofgoats or kids, without wool on orhair on, whether or not split, but riotfurther prepared, in the wet . state(including wet-blue).
4103.30.00
4103.90.00
4104.19.00
4105.10.00
4105.30.00
4106.21.00
80% or USDO.52 perkg.
80% or USDO.52 perkg.80% or USDO.52 perkg.
80% or USDO.52 perkg.
80% or USDO. 5 2 perkg.
80% or USDO.52 perkg.
2092 The Miscellaneous Fees and Levies Bill, 2015
Tariff No. Tariff Description
4106.22.00 Tanned or crust hides and skins ofgoats or kids, without wool on orhair on, whether or not split, but notfurther prepared, in the dry state(crust).Tanned or crust hides and skins of
4106.31.00 swine, without wool on or hair on,whether or not split, but not furtherprepared, in the wet state(includingwet-blue).
4106.32.00 Tanned or crust hides and skins ofswine, without wool on or hair on,whether or not split, but not furtherprepared in the dry state (crust).
4106.40.00 Tanned or crust hides and skins ofreptiles, without wool on or hair on,whether or not split, but not furtherprepared.
4106.91.00 Tanned or crust hides and skins ofreptiles, without wool on or hair on,whether or not split, but not furtherprepared.
4301.60.00 Raw furskins of fox, whole, with orwithout head, tail or paws.
4101.40.00 Hides and skins of equine animals.
4101.50.00 Whole hides and skins, of weightexceeding 16 kg.
4101.90.00 Other, including butts, bends andbellies.
4102.10.00 Raw skins of sheep or lamb (fresh,or salted, dried, limed, pickled orotherwise preserved, but not tanned,parchment- dressed or furtherprepared), with wool on, whether ornot split, other than those excludedby Note I (c) to Chapter 4 1.
4104.11.00 Full grains, unsplit; grain splits, inthe wet state (including wet- blue).
Export Levy Rate
80% or USDO.52 perkg.
80% or USDO.52 perkg.
80% or USDO.52 perkg.
80% or USDO.52 perkg.
80% or USDO.52 perkg.
80% or USDO.52 perkg.80% or USDO.52 perkg.80% or USDO.52 perkg.80% or USDO.52 perkg.80% or USDO.52 perkg.
80% or USDO.52 perkg.
The Miscellaneous Fees and Levies Bill, 2075 2093
Tariff No. TariffDescription Export Levy Rate
80% or USDO.52 perkg.80% or USDO.52 perkg.
Full grains, unsplit; grain splits, inthe dry state (crust).Other tanned or crust hides and skinsof bovine (includingbuffalo) or equine animals, withouthair on, whether or not split, but notfurther prepared, in the dry state(crust).Tanned or crust hides and skins ofother animals, without wool on orhair on, whether or not split, but notfurther prepared, in the dry state(crust).Raw forskins of mink, whole, withor without head, tail or paws.Raw furskins of lamb, the following:Astrkhan, broadtail, Caracul, Persianand similar lamb, Indian, Chinese,Mongolian or Tibetan lamb, whole,with or without head, tail or paws.Other raw furskins, whole, with orwithout head, tail or paws.Heads, tail, paws and other pieces orcuttings, suitable for furriers' use.Whole skins, with or without head,tail or paws, not assembled, of mink.Other whole skins, with or withouthead, tail or paws, not assembled.Heads, tails, paws and other piecesor cuttings, not assembled.Whole skins and pieces or cuttingsthereof, assembled.Waste and scrap of precious metal orof metal clad with precious metal;other waste and scrap containingprecious metal or precious metalcompounds of a kind usedprincipally for the recovery ofprecious metal of ash containingprecious metal or precious metalcompounds.
4104.41.00
4104.49.00
4106.92.00
4301.10.00
4301.30.00
4301.80.00
4301.90.00
4302.11.00
4302.19.00
4302.20.00
4302.30.00
7112.30.00
80% or USDO. 52 perkg.
80% or USDO.52 perkg.80% or USDO.52 perkg.
80% or USDO.52 perkg.80% or USDO.52 perkg.80% or USDO.52 perkg.80% or USDO.52 perkg.80% or USDO.52 perkg.80% or USDO.52 perkg.20%
2094 The Miscellaneous Fees and Levies Bill, 2015
Tariff No. Tariff Description ExportLevyRate
7112.91.00 Other waste and scrap of preciousmetal or precious metal compounds 20%of a kind used principally for therecovery of precious metal of goldincluding metal clad with gold.
7112.92.00 Other waste and scraps of preciousmetal or precious metal compounds 20%of a kind used principally for therecovery of precious metal ofplatinum, including metal clad withplatinum.
7112.99.00 Other waste and scrap of preciousmetal or metal clad with precious 20%metal, other waste and scrapcontaining precious metalcompounds, of a kind usedprincipally for the recovery ofprecious metal.
7204.10.00 Waste and scrap of cast of iron. 20%7204.29.00 Waste and scrap of other alloy or 20%
steel.7204.30.00 Waste and scrap of tinned iron steel. 20%7204.41.00 Turnings, shavings, chips, milling
waste, sawdust, fillings, trimmings 20%and stampings, whether or not inbundles, or iron or steel.
7204.49.00 Other waste and scrap or iron or 20%steel.
iron or steel.7404.00.007503.00.007602.00.007902.00.008002.00.108102.94.00
Cooper waste and scrap.Nickel waste and scrap.Aluminiurn waste and scrap.Zinc waste and scrap.Tin waste and scrap.Unwrought molybdenum includingbars and rods obtained simply bysintering; waste and scrap.
20%20%20%20%20%
20%
The Miscellaneous Fees and Levies Bill, 2015 2095
Tariff No. TariffDescription Export Levy Rate
Waste and scrap of molybdenum.Waste and scrap of tantalum.Waste of scrap of magnesium.Bismuth and articles thereofincluding waste and scrap.Waste and scrap of cobalt matters.
Waste and scrap of cadmium.Waste and scrap of titanium.Waste and scrap of zirconium.Waste and scrap of antimony.Waste and scrap of beryllium.Waste and scrap of chromium.Waste and scrap of thallium.Unwrought waste and scrap;powders.
"Part I shall not apply to exports to Export Processing Zones.
PART III s.5(4)
(1) The specific rates of export levy on goods specified in Part I ofthis scheduleshall be adjusted for inflation at the beginning of everyfinancial year in accordance with this paragraph.
(2) Each rate of export levy specified in column 3 of the table in PartI of this schedule shall be replaced by the rate of export levy computed byreference to the following formula—
AxBWhere-A is the rate of export levy on the day immediately before the
adjustment day; andB is the adjustment factor for the adjustment day calculated as one plus
annual average rate of inflation of the preceding financial year.
(3) For the purpose of this Part-"adjustment day" means 1 st July of every year;"inflation" means the average annual inflation rate in a financial
year."financial year" means the period of 12 months ending on 30th June
of every year.
2096 The Miscellaneous Fees and Levies Bill, 2015
SECOND SCHEDULE
PART As. 7(3)(a)GOODS EXEMPT FROM IMPORT DECLARATION FEE WHEN
IMPORTED OR PURCHASED BEFORE CLEARANCETHROUGH CUSTOMS
The following goods are exempt from payment of import declarationfee when imported or purchased before clearance through customs-
(i) goods destined for approved duty free shops;(ii) goods destined for approved Export Processing Zones
enterprises;(iii) goods destined for approved enterprises manufacturing under
bond;(iv) accompanied or unaccompanied used personal effects;(v) ammunition, weapons or implements of war imported by the
Government;(vi) household and personal effects including motor vehicles,
provided such motor vehicles qualify for exemption from dutyunder the Fifth Schedule to the East African CommunityCustoms Management Act;
(vii) posted parcels, excluding goods imported for trade;(viii) gifts or donations, excluding motor vehicles, by foreign residents
to their relatives in Kenya for their personal use;(ix) samples which is in the opinion of the Commissioner have no
commercial value;(x) gifts and supplies for diplomatic and consular missions and to the
United Nations Missions;(xi) goods destined for official aid-funded projects;(xii) currency notes and coins of current issues imported by the
Central Bank of Kenya or by a financial institution with theapproval of the Central Bank of Kenya; postage, revenue andexcise stamps;
(xiii) explosive and pyrotechnic products imported by the Government;(xiv) gifts by foreign Governments or international organizations to
charities and foundations;(xv) aircraft;'(xvi) aircraft catering stores for use in an aircraft owned and operated
by a designated airline;(xvii) currency notes, coins, travellers cheques and bullion;
The Miscellaneous Fees and Levies Bill, 2015 2097
(xviii) rail locomotives, wagons (86.0 to 86.06) and rail containers(86.09);
(xix) ships weighing 250 tonnes or more; and
(xx) goods from the East African Community Partner States thatmeets the East African Community Rules of origin.
PART B s.8(6)
GOODS EXEMPT FROM THE RAILWAY DEVELOPMENT LEVYWHEN 1MPORTED OR PURCHASED BEFORE CLEARANCE
THROUGH CUSTOMS
The railway development levy shall not apply to goods imported orpurchased before clearance through customs-
(i) for the implementation of an official aid fundedproject;
(ii) for official use by a diplomatic mission,caP.institution or organization gazette under thePrivileges and Immunities Act;
(iii) by the United Nations or its agencies;
(iv) from the East African Community Partner Statesprovided that they meet the East AfricanCommunity Rules of origin;
2098 The Miscellaneous Fees and Levies Bill, 2015
MEMORANDUM OF OBJECTS AND REASONSThis Miscellaneous Fees and Charges Bill is necessitated by the need
to anchor in legislation the provisions for charging Export Levy, ImportDeclaration Fee and the Railway Development Levy which are curTentlyin the Customs and Excise Act (Cap 472). The Customs and Excise Act isproposed to be repealed by the Excise Bill. The repeal of the Customs andExcise Act implies that the Railway Development Levy, Export Levy andImport Declaration Fee will have no legal basis for being charged and donot fit in the Excise Bill.
The Bill provides for the imposition of fees and charges on importedor exported goods and for connected purposes.
PART I provides for the preliminary provisions.PART H provides for the functions and powers of the Commissioner
as well as the appointment of authorised officersnecessary for theadministration of this Act.
PART Hl provides for the imposition of export levy on'the goodsspecified in the First Schedule, the railway development levy and theimport declaration fee on goods imported for home use. This Part alsoprovides for the Commissioner to adjust for inflation, the specific rate ofthe export levy. Further, there are provisions relating to exemptions onimport declaration fee and the railway development levy.It alsoprovidesforapplication of the East African Community Customs Management Act,2004, in the assessment, collection, and enforcement of the provisions ofthis Actand theapplication of information technology in carrying outformalities and procedures under this Act.
PART IV contains miscellaneous provisions. It provides for a finefor a person convicted of an offence under this Bill. It also has provisionsfor the CabinetSecretary to make Regulations.
First Schedule provides for goods subject to the export levy and therates applicable. The Schedule further provides forexemption from theexport levy to goods exported to the East African Community PartnerStates and Export Processing Zones.
Second Schedule provides for goods that are exempt from thepayment of import declaration fees and the railway development levy.
Under Article 209 of the Constitution, customs duties and otherimport and export goods is the sole responsibility of the nationalgovernment.
This Bill is therefore not a Bill concerning county government.The enactment of this Bill shall not occasion any additional
