Clearance of Transit Goods

Stephen Otieno

Clearance of Transit Goods

Section 85-87 of EACCMA,2004 as read with Regulations 104 of EACCMR, 2010 provide the legal framework for clearance of goods in transit.

1. All goods in transit to a foreign port shall be entered at the port of importation using form C17.
2. An owner of the goods in transit shall at the time of entering the goods produce documents relating to the goods to a proper officer. Most Customs Administrations allow copies (and not originals) of the documents to support the entry.
3. An owner of goods to be entered for transit shall furnish a bond using the Customs Bond Form or any other security in such amounts as the Commissioner may require.
4. Goods in transit shall be conveyed by road or route approved by the Commissioner and the transit period in respect of the goods shall not exceed thirty days from the date of entry or any further period as the Commissioner may allow.
5. Goods in transit shall only be carried through the Community in sealed vehicles except in the case of exceptional loads or any other special circumstances authorized by the Commissioner.
6. In the case of goods carried by road, the carrying vehicle shall be licensed for the intended purpose by the Commissioner, using Form C28 (with the exception of vehicles licensed in any member of the COMESA or the SADC and in respect of which a certificate of approval has been granted, using Form C29).
7. The carrying vehicle shall bear the words “TRANSIT GOODS” printed boldly and clearly on both sides as specified in Form C28.
8. The carrying vehicle should be constructed and equipped in such manner that a customs seal can simply and effectively be fixed to the vehicle.
9. Goods in transit shall be produced to the proper officer at the approved port or place of exportation, together with the copy of the transit entry.

10. Where the quantity of goods in transit is found at the port or place of exportation or at any place of exit into foreign territory to be less than that specified in the entry, the owner of the goods shall immediately pay to the proper officer the duty chargeable on the discrepancy, unless it is accounted for to the satisfaction of the proper officer.

11.Where the quantity of goods in transit is found to be less than that specified in the entry or where the period allowed expires before any part of the goods is exported, the owner of the goods shall immediately pay to the proper officer the penalty to bond, except that in the case of discrepancy, the penalty payable shall be calculated proportionately to the discrepancy unless the discrepancy is accounted for to the satisfaction of the proper officer.

12. Payment of the penalty to bond shall not absolve the owner from exporting the goods within the period allowed and where the owner fails to export the goods, the goods shall be liable to forfeiture, unless the Commissioner otherwise directs.

13. Where an owner submits an application for refund of deposit or cancellation of the bond using Form C. 26 and any other documents that may be required by a proper officer and upon satisfaction that the goods described in Form C. 26 have been exported, the amount of security furnished shall be refunded to the owner or the bond shall be cancelled.

14. Where no application for cancellation of bond is submitted within thirty days from the date of exportation, the goods shall be deemed to have been imported for home consumption and shall be liable to any import duty chargeable on similar goods imported for home consumption at the rate in force at the time the goods are entered for home consumption, and the duty shall be paid immediately by the owner of the goods.

15. Where the evidence of exportation is furnished after the expiry of the 30-day period after exportation, the owner of the goods shall pay a penalty to the bond at a rate of three per cent per month or at the equivalent rate where the period is less than a month.

16. Where an owner intends to enter for home consumption any goods which are imported in transit, the owner shall apply in writing to the Commissioner to allow entry of the goods and the Commissioner may allow the entry to be made and shall refund the deposit given or cancel the bond furnished in respect of the goods.

The following situations may warrant a person to seek further extension of transit period:

1. The goods might be subject of a pending court case
2. The goods are relief supplies belonging to an approved international relief agency
3. The goods are tea and coffee which are subject to international auction
4. The goods have not been exported due to special circumstances arising from national or international emergencies, civil strife, closure of border to trade or due to any other reasons beyond the control of the owner.

Transit Go-Downs/ Sheds

It’s important to note that similar premises located outside the port licensed by the Commissioner for the deposit of transit cargo awaiting transportation to the final destinations are known as transit go-downs.

Benefits of transit go-downs/ sheds:

1. They decongest the port;
2. They save on port demurrage;
3. They accord an importer the opportunity to arrange for transport to final destination;
4. They facilitate customs control.

The Single Customs Territory (SCT)

The EAC Single Customs Territory is a destination model where goods are cleared at the first port of entry.
For example, goods that arrive at the port of Mombasa for delivery through road to Rwanda, are cleared at the port of Mombasa which is the first port of entry in the EAC region.

Customs Procedure in SCT

The importer/ Agent shall make a declaration using the data from the Manifest at any Customs house in the destination country where the Customs system is accessible. Where applicable importer/clearing agent may lodge customs declaration prior to submission of cargo manifest.
The importer/agent shall lodge the declaration with other supporting documents to Customs and pay the assessed taxes to the destination country;
The destination Partner State Customs Authority shall trigger selectivity based on the risk criteria;
Green, Blue and yellow lane entries shall be released by officers of country of destination after all conditions have been fulfilled and a release message shall be sent to the Port authorities who shall commence the cargo removal process;

The Declarants/Clearing Agents will pursue Delivery Orders from the Shipping Lines, who will process the Delivery Order Releases online to the Port authorities. The Delivery Order together with the Customs Releases received by the Port authorities will be used to validate the Declarant’s/Agent’s applications for delivery of cargo.
After validation and payment for related port services, the Port authorities will issue a Gate-in-Ticket for the transporter to move into the Port to collect and exit relevant cargo;
Green, Blue and yellow lane entries shall be exited by the destination Partner State officers from the respective Customs Authority at the Port of Entry. A notification shall be sent to KRA or TRA who shall execute the cargo removal.
The Customs Authorities Enforcement officers shall add an ECTS seal (where required), arm and release the truck from the Ports;

For consignments that are in red channel that require physical examination, the Customs authorities will transmit an inspection/selectivity message to the Ports for movement of the cargo to the CFS/ICD. The CFS/ICD operators will prepare a Pick Up Order for movement of the cargo to the CFS.
After physical examination, the Electronic Verification Account shall be submitted to Customs authority of destination for further management;
Where top-up (extra taxes) are required, the Customs Authorities of destination Country shall notify the Importer/Agent;
The entries shall be released by Customs Authorities of destination Country after all conditions have been fulfilled;

A copy of the Customs management system release order is printed to allow the truck to move into the CFS/ICD to pick the cargo;
The destination Customs Authorities shall exit cargo in the system and send notification to KRA or TRA, Importer/ Clearing Agent and CFS Operator who shall commence the cargo removal process;
The Customs Authorities Enforcement officers shall add an ECTS seal (where required), arm and release the truck from CFS/ICD;
The Customs Authorities officers at the CFS/ICD gate shall confirm exit of the cargo in the Customs management system, transfer document (EXIT NOTE and C2/Release order) is generated by both the destination Partner States Customs Authorities and the host country;
The cargo is handed over to Customs Authority enforcement officers for monitoring through the Gazetted transit routes up to country of destination;
Upon arrival at the inland Border, the Customs Authority of the host country shall confirm the seal is intact and exit the cargo online and the destination country receives the cargo online.