The Kenya Revenue Authority (KRA) is working on a plan to ensure speedy clearance of goods in the region. Once in place, the Authorised Economic Operator (AEO) system is expected to eliminate delays of clearance and delivery of imports. According to the Kenya Association of Manufacturers (KAM), the ripple effects of a fully implemented AEO system would result in benefits across the import and manufacturing chain and eventually trickle down to consumers. KRA’s deputy commissioner for customs services, Mr Jonah Cheruiyot, says that the taxman hopes to start piloting the project by October.
The AEO service will refer to a special category of institutions that include importers, clearing agents, and transport companies that are not required to wait for cargo inspection at the port, as is the case with the bulk of other companies. Instead, they enjoy a post-clearance audit once their goods have been removed from the port.
The project is envisioned to offer relief to consumers of both imported and manufactured goods as it will lead to reduction in prices that have previously been inflated to absorb unnecessary delays and costs incurred during importation. [Read: KRA Port Delays, The Cause For High Import Prices]
The authorized economic operator system was adopted in Kenya in 2006 as part of reforms by KRA that undertook to reduce the number of days that cargo takes before it is cleared. However, even with the undertaking, the revenue body has often been blamed by other state agencies for delays of cargo, which importers and other industry players say negatively affects their business.
Since its introduction, the Kenyan version of the authorized economic operator system has attracted membership from 64 companies, according to data from KRA.
Kenya Trade Network Agency (KENTRADE) had also announced that the first phase of the Electronic Single Window System will begin implementation from July 2013, another system that will further ease clearance of goods at the port of Mombasa.