Kenya Vehicle Exemption and

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					                       Kenya Vehicle Exemption and
                      Customs Clearance Procedures
           (Provided by Toyota East Africa Ltd. and confirmed as of 26-February-2008)


This exists in three categories with regards to exemptions, namely:

      PRO 1B FORM (Diplomats & Embassies)
      DA1 FORM (NGOs and Government Funded Projects)

   1. All applications put in for exemption are accompanied by supporting
      documents depending on the type of exemption. Information on the type of
      supporting documents needed can only be obtained from the relevant
      Ministry. Each case for exemption is unique and differs from customer to
   2. Direct contact with the Ministries issuing/processing exemptions must be
      done by the applicant directly as exemption from duty & VAT are very
      sensitive. The agent/supplier can only come in after exemption has been
      approved fully and all relevant documents have been received by the
   3. Approval for exemption could take long (sometimes even months) at the
      discretion of the relevant Ministry
   4. For clearance of vehicles duty free, the applicant is provided with an
      exemption letter. The exemption depends on the applicant and where he
      comes from. For example, embassies and UN organizations will go to Ministry
      of Foreign Affairs for a PRO 1B Form. NGOs and government funded project
      organization (JICA, for example) will go to Treasury to get the DA1 Form and
      MP’s & churches (for example) will go to Treasury to get Exemption letters.

Application for Exemption from Duty & VAT:

PRO 1B FORM – Applicable to Embassies/Diplomats

      Applicant applies for exemption through Ministry of Foreign Affairs
      The application is either rejected or accepted. It can be rejected for various
       reasons. In case it is accepted by the Ministry of Foreign Affairs, it is then
       sent directly to the Ministry of Finance for processing
      Pro 1B Form automatically exempts the applicant 100% from duty & VAT
      Once it is approved, 3 original copies are prepared and duly stamped
      1st original document remains with Ministry of Finance – It is then sent
       internally to Customs & Excise Dept.
      2nd (Duplicate) and 3rd (Triplicate) to support customs entry lodged by
      During clearance, duplicate is retained by customs. Triplicate (stamped with
       customs release date) and it is returned by customs direct to Protocol.
      To dispose off duty free goods permission is made through the Chief of
       Protocol to the Commissioner for customs & Excise
DA1 FORM – Applicable to NGOs/Vehicles for use in Government - Funded Projects

      The application is put in to the Ministry of Finance in quadruplicate (4 copies)
      The application is lodged with the Ministry of Finance duly completed,
       stamped etc. and attached with the Invoice & Bill of Lading/Airway Bill.
      If approval takes place, the Ministry releases 4 original copies.

   1. Original + Duplicate - They are sent internally to Customs & Excise
   2. Triplicate - Issued to the applicant for clearance purposes
   3. Quadruplicate - Retained by Ministry of Finance for their records(Treasury)

GENERAL EXEMPTION LETTERS (from Treasury) – Applicable to Government
Executives/Organizations running Government Projects

      The Ministry of Finance does general exemption letters. On very rare
       occasions, Ministry of Foreign Affairs issues the letters.
      Once the exemption is approved, the Ministry writes a letter direct to the
       Commissioner of Customs & Excise.
      The applicant is given a photocopy of the original letter for customs
Customs Clearance on Exemptions

The customer must also fill in a “C25 Form” which is a transfer of ownership form. It
is the transfer of ownership from TEAL to the customer.

These documents are all forwarded to Express (K) with the chassis and engine

Express (K) will pay a “Processing Fee” to the Customs Department on the client’s
behalf. This is an amount of Kshs. 10,000. This is then paid back to by the customer.

NOTE: Not all duty free vehicles are charged the processing fee. For example, a big
Government project will not require the processing fee. Such vehicles are exempted
from this fee.

   1. Once the customer receives the exemption letter, this is submitted to TEAL
          with the C25 for clearance procedure to proceed.

   2. Teal will attach the C25/P.Invoice/Exemption letter/Pin certificate and avail the
           same to the clearing agent for clearance.

   3. Stages:

      Agent will obtain an Exemption code from customs
      Entry is registered
      Processing fee is paid
      Exemption letter is approved by the assist. Commissioner
      Entry is passed
      Examination account is done the vehicle in Bond
      The vehicle is released from bond
      CC is applied
      Memo is issued
      Registration of the vehicle

Documents required for export clearance

   1. Proforma showing full address and exit point

   2. Stages

      We instruct our agent to clear unit from bond attaching the Proforma Invoice
      Entry is registered
      R300(Export entry) copy of the entry is passed
      T812(road consignment) copy of the entry is passed
      Unit is released from Bond

Kenya Revenue Authority’s regulations require that all export entries be returned to
Customs within 15 days after the vehicle is cleared from Bond. The export
documents must be duly signed and stamped at the back of the entry, by Kenya
Customs and Excise Department at the exit border, as proof that these goods have
been exported.

Return of documents after this 15 days period results in penalties being levied by
Customs Department at the rate of 2% per month.

Penalties continue to accrue for every month that the documents are not returned,
and at Customs discretion you can be requested to pay full duties and taxes payable
on this unit, in addition to penalties.

Comply with the following when returning the above export documents for bond

      That you have an original Export entry marked R3 and T8 and the same to be
       properly endorsed at the back/reverse side of the entry by customs officers
       and he/she should state chassis number as seen or sighted.
      In case of photocopied entries of R3 and T8, the same should to be certified
       as true copies by customs officers at the border, certification receipt MUST be
      Customs Rotation number MUST be stated on the entry.
      Cargo manifest (C511) and (C11) must be attached if issued
      Our export entries should NOT be overwritten by the clearing agent at the
       border, the agent to prepare their own entries

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