Kenya Revenue Authority begins implementation of Cargo Pre-Clearance system


The Kenya Revenue Authority (KRA) has begun the roll out of the Pre-arrival Cargo Clearance System (PVOC) aimed at speeding up the movement of cargo from the Port of Mombasa to intended destinations. The move seeks to ensure timely delivery of raw materials and other goods, including essential supplies to the market. KRA Commissioner General Mr John Njiraini described the move as a very important step in the Authority’s quest to continuously make Mombasa’s Port more attractive and reduce the cost of doing business for investors.

The move will allow the residents of Kenya and the region to eventually enjoy lower costs of living, as timely delivery of raw materials enables firms to lower their costs of production and pass the benefits to consumers. The Commissioner General said the Authority is fully committed to the implementation of the 2014 Port charter that requires 70 per cent of cargo imported through the port of Mombasa to be cleared under the Pre-arrival Cargo Clearance System by 2017.

Speaking at the Port of Mombasa after holding a consultative meeting with executives from the shipping industry at the Kenya Ports Authority headquarters, Mr Njiraini explained that the Government decided to facilitate importers to have their Cargo cleared before arrival at the Port of Mombasa to save time and costs for investors. He was accompanied by the Commissioner of Customs Mr Julius Musyoka, and Kenya Revenue Authority Southern Region Coordinator Mr Nicholas Kinoti,

“We want to take the process a couple of steps back so that the lodging of documents and the payment of duties and other levies are paid before cargo arrives. By the time the Cargo arrives at the Port, the importer is in a position to take charge and remove the Cargo from the Port and avoid paying demurrage charges,” Mr Njiraini added.

“We have agreed to start the process of implementing the system. There are a couple of issues that we need to look at in terms of the Supply chain and we have agreed to meet in a Months’ time ,essentially we will have  addressed  issues to make it possible for them to clear their Cargo before it arrives,” said the Commissioner.

The Port of Mombasa is set to become a major shipping hub, following the decision by KRA to shelve trans-shipment bonds and allow shipping lines to lodge their own entries. The action by the Authority was immediately welcome by shipping industry stakeholders, who now foresee more transshipment business coming to the Port.

“This is a big incentive that can attract Shipping lines that avoided Mombasa Port for trans-shipment purposes,” Chief Executive Officer of the Kenya Ships Agent Association, Mr Juma Tellah said.

Mr Tellah observed that his association and Kenya Revenue Authority are working together to facilitate the implementation of the pre-clearance system.





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