Entry, Examination and Delivery of Exports

Stephen Otieno

Entry, Examination and Delivery of Exports

There are three types of exportation:
1. Outright exportation – These are goods which are exported out of a Partner State with the intention to remain there permanently or to be consumed in those foreign countries.
2. Temporary exportation – These are goods which are exported out of a Partner State to a foreign country for special purposes and will be brought back, within a reasonable duration of time, usually not exceeding twelve months.
3. Re–exportation – These are goods that were imported into a Partner State for temporary use or purpose and are to be exported to a foreign country after the end of the intended purpose.

- The following are the different types of export Customs Regimes:
  1. Exports 1
  2. Temporary Exports 2
  3. Re-Exports 3
- The CPC codes vary from one Partner State to another depending on the electronic Customs business processing system in use.
- Domestic Exports:
- Direct Exports of home produced goods
- Direct Exports of home produced goods incorporating imported materials
- Direct Exports of home produced goods under the Export promotion program
- Direct exports of shipstores

- - Temporary exports:
    - Temporary exports for return in an unaltered state
    - Temporary exports for repairs
    - Temporary exports for outward processing
  - Re-exports:
    - Ex-warehouse export
    - Ex-warehouse export for shipstores
    - Ex-MUB export
    - Ex-EPZ export
    - Re-exports after temporary importation for repair
    - Re-exports after temporary importation
    - Re-exports under drawback

For goods to be exported they need to be entered for export. The entry must show the following details:

1. Name and address of exporter.
2. Name and address of importer.
3. Name and address of Customs agent.
4. Country of destination.
5. Commodity code and description of goods.
6. Value of goods and total amount of duty payable.
7. Marks and number of transporting vessel, aircraft, or vehicle.
8. Total number of packages
9. All other information as appeared in the SAD

The stuffing of the export goods into a container is done under the supervision of a proper officer. The stuffing area may be an owner’s/manufacturer’s premise; container freight station (CFS); or an internal container depot (ICD). A stuffing facility must meet the following requirements:

1. Must be licensed and approved by the Commissioner;
2. Area must be secured with surveillance CCTV cameras, perimeter wall & electric fence;
3. Area must have adequate lighting;
4. Have adequate facilities: weights, measures, internet connectivity, facility for examining goods etc.;
5. Owner must always keep records of all goods examined, stuffed & delivered from the facility;
6. Owner must sign a letter of undertaking taking full responsibility of all goods stuffed at their facility;
7. Stuffing time is strictly 8 a.m. to 8 p.m.;
8. Company undergoes background security screening before licensing.

Once the stuffing is completed, the container is sealed and a stuffing report input into the Partner State’s Customs Business System.
The transportation of the sealed containers to the port of loading is done under Customs monitoring, with majority of the Partner States utilizing the Regional Electronic Cargo Tracking System (RECTS) or other electronic cargo tracking systems.
At the entrance gate to the port of loading, a proper officer confirms that the seals of the goods are intact and that marks and numbers of the container tally with the Customs entry.

The export process is terminated (comes to an end) when vessel carrying goods for export leave the boundary of Partner States to foreign destination.
Bill of Ladings are generated by the carrier (shipping line) once the vessel departs for a foreign country.
Once the Customs Agent receives endorsed Bill of Lading from the shipping line, he/she presents it and its respective Customs entry to a proper officer, for processing of certificate of export.
The Certificate of Export is an essential document because it will be used by Security Bonds Management Customs office for bond cancellation as well as for claim of Value Added Tax for eligible exporters.
Certificates of Origin are also issued by a proper officer stationed in the Rules of Origin office, to enable preferential tariff treatment of exported goods in the case where a free trade agreement exists between the exporting Partner State and the importing foreign country.

Duty Assessment of Export Goods

Majority of export goods from Partner States attract 0% export duty rate, for purposes of promoting exports from the EAC region by enabling them to be competitively priced in the foreign countries, and consequently increase their demand.
Export goods liable to any duty shall not be exported until such duty has been paid or security thereof given. If ad valorem duty is applicable to the export goods, then the value of goods shall include-
- The cost of the goods;
- Transport and all other charges up to the time of delivery of the goods on board the exporting aircraft or vessel, or at the place of exit from the Partner State.
- If the cost of the goods cannot be determined under the above, the cost of similar or identical goods exported from a Partner State at about or the same time shall apply.