Kenya Ports Authority (KPA) and Kenya Revenue Authority (KRA) procedures of clearing a container in Mombasa Explained. 4 days of hectic clearing procedures. The daunting costly task demystified
The task of clearing a container in Mombasa, Kenya takes about 4 days. The procedures involved can be confusing and the paperwork required is technical. It is not based on common street language.
Clearing and forwarding agents in Kenya tend not to reveal this information to the public, primarily because it takes the business away from them into your own hands. KenTex Cargo may have spilled the beans by explaining this procedure to the public. While clearing and forwarding task should be done by qualified educated professional, with the correct guidance, you should be able to clear your own container with little or no help from a clearing agent.
In this article, we will learn more about
- Clearing and forwarding best practices.
- Kenya Simba Tradex System functions
- Kenya Ports Authority KWATOS system
- Paperwork Involved
- Clearing a container Duty free
- Costs and fees involved to clear a container
Kenya Customs Declaration: Simba Tradex & KWATOS
Simba Tradex is nearing its final days if not already eliminated by KPA. The systems has been in use since year 2000 and more innovative faster software has come up with better cargo clearing procedures, verification and efficiency.
KWATOS which stands for Kilindini Waterfront Automated Terminal Operations System was launched in 2008, is a KPA system used for automating cargo clearing procedures
Before your container gets to Mombasa, your shipping line lodges your container information and manifest into Simba TradeX system and KWATOS. This means if you have access to these systems, you can be able to see your container Estimated time of arrival (ETA) so you can be there ahead of time.
The keyword here is…. the manifest lodged to these systems explaining what is contained in your container.
A manifest number given to you by your cargo forwarder or shipping line is what you need when you go to Simba Tradex & KWATOS systems. It tells you all what you need to know before you head down to Mombasa including container freight station, type of goods contained etc.
Obtaining Container Clearance Forms: Declaring it is Your Container
The manifest uploaded by your shipping line is crosschecked with your duly endorsed Bill of Lading (BOL) by the consignee. Once verified, your shipping line issued a release order, meaning, you are the right person and this is the right container and it contains the right items as described in the manifest and BOL
The release order is NOT sent to you, you will get the release order once you pay all charges, fees and taxes due. It is your container at this point but it is in the hands of KPA & KRA until all dues are paid.
Clearing a Container Duty Free in Kenya: Not all that Free
Returning Kenyan Residents who have been abroad for over 2 years, missionary groups, foreign workers with valid work permit, Non-Governmental Organizations (NGO), non-profit & missionary related products can be shipped into Kenya and cleared duty free.
Certain categories of products like construction and agricultural equipments, medical equipment and those products in high demand in Kenya can be imported duty free but NOT TAX FREE. Value Added Tax (VAT) must be paid.
Duty free does not mean TAX FREE
Container Verification Process in Mombasa – Kenya
This is where the nightmares of clearing a container begins. This is where if you do not have a qualified clearing agent familiar with the procedures, you’re going to get a headache, lose money and sometimes, accrue dermurage.
A set of documents is prepared and sent to the so called “Long Room” in the port. In the long-room, the verification process begins. The contents of the container must be verified and must match the manifest lodged by your shipping line to Simba Tradex & Kwatos systems. Any discrepancies will result to delay, penalties and in some cases, legal suit.
If your cargo seems obvious in the long room, your container will be sent through scanning and to the final point without a problem. This happens if only a few obvious items are in the container…. say a motor grader, 4 units of generators, etc.
In a situation where your container is carrying multiple items of all assortments, your container is likely to be sent for manual verification. Here, your container is opened, stripped and each item scrutinized.
Small items are STOLEN here a lot. A person well known to me lost 24 laptop computers and 10 new iPads during verification process and had multiple damaged items. This is a loss of nearly KES 450,000. This will not happen when using a clearing agent. Corruption in Kenya and Africa in general makes this process a nightmare.
Pickup Order & Release Order Issued
Now that you have gone through the toughest part of the clearing process, you are almost done. Remember we mentioned earlier than the release order issued by shipping line is not given to you until all dues have been paid.
Now you have paid. Your container content have been verified. You have paid duty and taxes and you have been issued with receipts. Customs will issue you with Customs Release Order (CRO).
This information is sent to KWATOS and a pickup order is issued. You’re ready to go pick-up your container and head on to the KPA gate.
Before you head on to the gate, you should have a set of 3 documents and all receipts of payments made.
- The delivery order
- Passed customs entry
- Customs Release Order.
- BOL (Bill of Lading)
- Customs duty and Tax receipts
These documents are presented to Customs Documentation Office (CDO) at Port. Once verified, the CDO office will issue you with a gate pass.
With this gate pass, you can head on to load your container into a truck or train and ship it where-ever you want. You must keep all documents with you and present them at any point you’re asked to.
