By Staff Writer
Nairobi, Kenya – The House of Peoples’ Representatives, during its 24th regular session held today, approved a draft proclamation amending the Customs Proclamation.
The proclamation was passed with two dissenting votes and a majority in favor.
“If a transport vehicle is found carrying contraband goods, the vehicle owner may be penalized by a fine or by confiscation of the vehicle, based on the severity and volume of the goods as determined by a directive to be issued by the Ministry of Finance,” states the newly approved proclamation.
The proclamation stipulates that a vehicle equipped with a concealment compartment, or a vehicle found carrying entirely contraband goods, shall be confiscated.
Under the current proclamation, vehicle owners caught with contraband faced a fine of 100,000 Birr. The new proclamation notes that this monetary penalty was too low and, rather than reducing the problem, exacerbated contraband trade.
Under the amended proclamation, if a car or vehicle is caught carrying contraband, it shall be confiscated.
Accordingly, if a vehicle has been manufactured, modified, or equipped with a concealment mechanism to hide goods, and the goods it is carrying are determined to be contraband under a directive issued by the Ministry of Finance, the transport vehicle shall be confiscated and become government property, regardless of the estimated value of the goods, the proclamation states.
Furthermore, before a vehicle is confiscated, the owner shall be informed and provided an opportunity to present evidence regarding the circumstances under which the vehicle was used, it adds.
This is said to help deter contraband trade and reduce the number of participants in the sector.
Regarding administrative penalties, the amended proclamation raises fines for carriers who fail to fulfill their obligations, vehicle owners involved in contraband trade, licensed warehouse operators who violate customs law, and individuals who fail to remove goods brought into the country temporarily after the deadline expires.
Regarding fees and taxes paid to file an appeal, the amendment allows an importer to pay the taxes and duties they agree with and deposit 50 percent of the disputed amount to file an appeal.
Under the current Customs Proclamation, an importer who disagrees with duties and taxes assessed by the Customs Commission can appeal to the Tax Appeal Commission only after paying the full amount. The proclamation states that this provision was amended because it restricted the constitutional right to petition.
Regarding carrier obligations and involvement in transporting contraband, any carrier who fails to submit a passenger or cargo manifest within the specified time, allows an unauthorized person to enter the vehicle, or keeps the vehicle at a customs port beyond the allowed time without explaining the reason to a customs officer and obtaining permission, shall be fined not less than 4,000 Birr and not more than 10,000 Birr.
Any carrier who loads, unloads, or attempts to load or unload goods onto a vehicle that has arrived at a customs port without the presence of a customs officer shall be fined not less than 15,000 Birr and not more than 20,000 Birr.
If the owner of a vehicle carrying goods is found to have participated in a contraband crime, criminal liability remains. If the owner fails to take reasonable precautions to prevent the crime, the contraband shall be confiscated, and the owner shall be fined 100 percent of the value of the contraband goods loaded, or 200,000 Birr, whichever is less.
The proclamation states that if a vehicle owner is found to have opened a cargo package or container and combined illegal items with the load, the goods will be confiscated and the owner will be fined 500,000 Birr.
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