Mobile phones have emerged as the most frequently under-declared items arriving at Eldoret International Airport, which has become a key gateway for consolidated cargo brought in by small-scale traders largely importing goods from Dubai and China.
Undeclared imported goods mean items that have not been properly reported or declared to customs agencies upon import. They may include items that are completely hidden or simply have incorrect information, such as a lower value, in an effort to avoid paying duties or taxes.
The Kenya Revenue Authority (KRA) has reported repeat cases of traders attempting to disguise new mobile phones as refurbished ones in a bid to reduce the declared value and lower payable taxes.
‘We have encountered several cases where traders classify both new and refurbished mobile phones under the same category. We can easily tell the difference because new phones cannot be treated as refurbished ones. The valuation is different, and that determines the correct taxes to be paid,’ Abdi Malik Hussein, KRA’s Chief Manager for Customs and Border Control in the Rift Valley and North Rift region, said.
‘Some mobile phone consignments arrive with unfamiliar brand names. Even after taxes are paid, agencies such as the Kenya Bureau of Standards (Kebs) and the Anti-Counterfeit Authority must verify that the products meet national requirements.’
The KRA bases its taxation on the customs value of imported goods, meaning that a new device attracts a higher duty than a used one because of the higher unit price. While tax rates remain constant, the total payable amount varies with declared value.
Importers of mobile phones into Kenya pay a duty of 25 percent, an excise tax of 10 percent on the customs value, and a 16 percent Value Added Tax (VAT) applied on the total of the customs value plus the import and excise duties. ‘We have encountered several cases where traders classify both new and refurbished mobile phones under the same category. We can easily tell the difference because new phones cannot be treated as refurbished ones. The valuation is different, and that determines the correct taxes to be paid,’ Abdi Malik Hussein, KRA’s Chief Manager for Customs and Border Control in the Rift Valley and North Rift region, said.
‘Some mobile phone consignments arrive with unfamiliar brand names. Even after taxes are paid, agencies such as the Kenya Bureau of Standards (Kebs) and the Anti-Counterfeit Authority must verify that the products meet national requirements.’
The KRA bases its taxation on the customs value of imported goods, meaning that a new device attracts a higher duty than a used one because of the higher unit price. While tax rates remain constant, the total payable amount varies with declared value.
Importers of mobile phones into Kenya pay a duty of 25 percent, an excise tax of 10 percent on the customs value, and a 16 percent Value Added Tax (VAT) applied on the total of the customs value plus the import and excise duties.