Sugar Smugglers arrested in Busia

Two suspects  have been charged for allegedly smuggling 160 bags of
50kg of sugar across the Uganda-Kenya border.

Appearing before Kapenguria Principal Magistrate Samuel Mutai Martin
Siwotoi and Sammy Gachau Maina were both charged with two counts of
acquiring uncustomed goods contrary to section 200 (d) (iii)    of the
East African Community Management Act 2004 and Conveying uncustomed
goods contrary to section 199(b) (iii) of the East African Community
and Customs Management Act of 2004.

They denied the charges and were released on a bond of Kshs. 50,000 or
a cash bail of Kshs. 25,000. The case will be heard on 16th November,
2020.

The customs value of the sugar is Kshs 530,720 with a tax implication
of Kshs 705,859 since the consignment did not have a certificate of
origin from the East African Community the applicable import duty is
100% and VAT at 14%.

The arraignment followed lengthy investigations carried out by KRA’s
Investigation and Enforcement Department in conjunction with officers
from the Directorate of Criminal Investigation (DCI) Kapenguria who
while on patrol, intercepted a vehicle ferrying brown sugar from
Uganda without importation license and certificate from the sugar
directorate under Agriculture and Food Authority as required by law.

The licenses and permit form part of the documentation to be presented
to customs Officers at the time of importation for clearance and
payment of requisite customs duty.

Unscrupulous importers who do not have the requisite license smuggle
sugar from Uganda using ungazetted border points such as Karita and
Lokiriama to avoid the rigors of customs processes at designated
border points with Uganda namely Busia, Lwakhakha, Malaba, and Swam.

The sugar is distributed to shopkeepers within Trans Nzoia, West Pokot
and Lodwar Counties.

This leads to loss of revenue to the Government and unfair trade
practices in the region.

KRA is committed to pursue those who fail to comply with Tax and
Customs Legislation thus hampering the realization of Kenya’s
Transformation Agenda.

“We urge all importers to ensure that they comply with all customs
laws and processes and pay the correct taxes during customs clearance.
This will support the KRA initiative of enhancing tax compliance in
the country.

KRA remains committed to building taxpayers trust through
facilitation to foster to continually improve service delivery and
revenue collection.