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East African Community Customs Management (EACCM) Act

LEGAL NOTICE NO. 01/2005 ISSN 0000211

THE EAST AFRICAN COMMUNITY

ACT SUPPLEMENT
No. 1 1 st January, 2005

to the Gazette of East African No. 001 Vol. AT 1 dated 1 st January, 2005
Printed by the Government Priter, Dar es Salaam, by Order of East African Community

THE EAST AFRICAN COMMUNITY CUSTOMS
MANAGEMENT ACT, 2004

ARRANGEMENT OF SECTIONS

Section Title

PA RT 1
P
RELIMINARY PROVISIONS

1. Short title, application and commencement.
2. Interpretation.

PA RT 1 1
A
DMINISTRATION

3. The Directorate of Customs.
4. Functions of the Directorate.
5. Provisions relating to staff.
6. Customs Union seal and flag.
7. Officer to have powers of police officer.
8. Hours of Attendance.
9. Offences by, or in relation to officers.
10. Exchange of information and common border controls.
11. Appointment of ports, etc.
12. Appointment of Customs areas.
13. Accommodation on wharves.
14. Licensing of internal container depot.
15. Offences in respect of Customs areas, etc.

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No. 1 East African Community Customs Management 2005
16. Customs control of goods.
17. Liability for loss, etc., through negligence of officer.

PART III
I
MPORTATION

Prohibited and Restricted Imports

18. Prohibited and restricted imports.
19. Power to prohibit, etc., imports.
20 Exemptions of goods in transit, etc.

Arrival and Report of Aircraft and Vessels
21. Procedure on arrival.
22. Place of mooring, etc.
23. Restriction on boarding vessel before proper officer.
24. Report.
25. Master to answer questions, etc.
26. Goods in transit shed etc., deemed to be in aircraft or vessel.
27. Goods reported to be unloaded.
28. Master of wreck, etc., to report.

Arrival Overland
29. Vehicles arriving overland.
30. Trains arriving.
31. Arrival overland otherwise than by vehicle.

Clearance by Pipeline
32. Operator of pipeline to report.
33. Unloading, etc. Unloading and Removal of Cargo

Entry, Examination, and Delivery
34. Entry of cargo.
35. Surplus stores may be entered.
36. Provisions relating to mail, personal baggage, etc.

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No. 1 East African Community Customs Management 2005
37. Entry in absence of documents.
38. Provisions relating to goods liable to duty ad valorem.
39. Delivery from Customs area in special circumstances.
40. Re-packing, etc., in Customs area, etc.
41. Examination of goods.

Provisions Relating to Customs Warehouses

42. Goods deposited in a Customs warehouse may be sold, etc.
43 Goods deemed to be in Customs warehouse.

Passenger Clearance

44. Disembarkation of persons.
45. Baggage to be taken to examination place.
46 Baggage declaration.

PA RT I V
W
AREHOUSING OF GOODS

General Provisions

47. Dutiable goods may be warehoused.
48. Procedure on warehousing.
49. Removal to warehouse of goods entered in a warehouse.
50. Entry of warehoused goods.
51. Operations in a warehouse.
52. Re-gauging and re-valuation.
53. Delivery from warehouse in special circumstances.
54. Removal to another warehouse.
55. Warehoused goods may be delivered as stores.
56. Abandonment, etc., of warehoused goods.
57. Period of warehousing and sale of goods.
58. Examination of warehoused goods on delivery.
59. Access to warehouse.
60. Removal of goods after entry for home consumption, export,
etc.
61. Penalty for unlawfully taking, etc., warehoused goods.

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No. 1 East African Community Customs Management 2005
Bonded Warehouses
62. Commissioner may license warehouse.
63. Procedure on revocation or expiry of license.
64. Warehouse keeper to provide facilities.
65. Stowage and storage of goods in bonded warehouse.
66. Removal of goods from private to general warehouse.
67. Warehouse keeper to produce goods deposited.
68. Goods in Government warehouse liable to rent, etc.
69. Removal, etc., of goods in Government warehouse.

PA RT V
E
XPORTATION

Prohibited and Restricted Exports
70. Prohibited and restricted exports.
71. Power to prohibit, etc., exports.
72. Exemption of goods in transit, etc.

Entry Outwards and Loading of Aircraft and Vessels
73. Entry of cargo for export.
74. Entry outwards of aircraft or vessel.
75. Loading, etc.
76. Provisions relating to personal baggage.
77. Goods for export not to be discharged in Partner States.
78. Provisions relating to exports of certain goods.
79. Stores for aircraft and vessels.
80. Short shipment of non-bonded goods.
81. Export goods stored at risk of owner.
82. Goods liable to export duty.

Departure Overland
83. Vehicles departing overland.
84. Departure overland otherwise than by vehicle.

Goods in Transit or for Transhipment
85. Treatment of goods under transit and transhipment.

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No. 1 East African Community Customs Management 2005
86. Control of entry.
87. Termination of transit procedure.

PA RT V I
D
EPARTURE AND CLEARANCE OF AIRCRAFT AND VESSELS
88. Clearance required for departure to foreign port.
89. Grant of clearance.
90. Clearance certificate to be produced.
91. Deficiency or surplus in cargo or stores.
92. Aircraft or vessel to bring to at boarding station.

PA RT V I I
I
MPORTATION AND EXPORTATION BY PORT

93. Application of Act to postal articles.
94. Time of entry of postal articles.
95. Registered courier companies to land, store, etc.

PART VIII
C
ARRIAGE COASTWISE AND TRANSFER OF GOODS

96. Power to prohibit and restrict carriage coastwise and transfer.
97. Meaning of carriage coastwise and transfer.
98. Carriage coastwise or transfer in an aircraft or vessel from for-
eign port.
99. Loading, etc., of coastwise and transfer cargo.
100. Transire required for departure coastwise and transfer.
101. Transire to be delivered on arrival.
102. Power of Commissioner to vary procedure.
103. Entry outwards of aircraft, etc., carrying goods coastwise.
104. Coasting vessel, etc. not to deviate from voyage.
105. Examination of coasting vessel and goods.

PA RT I X
P
ROVISIONS RELATING TO SECURITIES
106. Commissioner may require security.
107. General provisions relating to giving of security.
108. Provisions relating to sureties.
109. Enforcement of bond.

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No. 1 East African Community Customs Management 2005
PA RT X
D
UTIES

Liability to Duty

110. Rates etc., of duty.
111. Community tariff treatment.
112. Preferential tariff treatment under COMESA and SADC.
113. Exemption from duty of goods remaining on board.
114. Exemptions regime.
115. Exemption from import duty of goods entered for exportation,
etc.
116. Exemption from import duty of certain re-imports.
117. Exemption from import duty of temporary imports.
118. Derelict goods, etc., liable to duty.
119. Goods imported duty free liable to certain duties on disposal.

Computation of Duty

120. Time of entry determines rate of duty.
121. Duties, etc., to apply proportionately.
122. Determination of value of imported goods liable to ad valorem
import duty.
123. The value of goods for export.
124. Adjustment for fractions of a dollar.
125. Duty computed on gross weight of package in certain cases.
126. Duty computed on reputed quantity in certain cases.
127. Commissioner may fix litre equivalent of other liquid
measurement.
128. Allowance for tare.
129. Duty on package in certain cases.

Payment etc. of Duty

130. Recovery of duty by distress.
131. Agency notices.
132. Security on property on an unpaid duty etc.
133. Effect of obligation to pay duty.
134. Effect of alteration in classification of goods.

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No. 1 East African Community Customs Management 2005
135. Short levy or erroneous refund.
136. Samples may be taken without immediate payment of duty.

Anti-Dumping and Countervailing Duties

137. Collection of anti-dumping and countervailing duties.

Drawback, Remission, Rebate and Refund

138. Drawback of duty.
139. Drawback to be allowed in respect of certain goods.
140 Council may grant remission of duty on goods for manufacture.
141 Remission of duty.
142. Rebate of duty.
143. Repayment of Customs duties when goods are returned or
destroyed by fire.
144. Refund of duty.

PA RT X I
C
USTOMS AGENTS

145. Licensing of agents.
146. Authority of agents.
147. Liability of duly authorized agent.
148. Liability of owner for acts of duly authorised agent.

PART XII
P
REVENTION OF SMUGGLING
Powers of Officers
149. Power to require vessels, etc., to bring to.
150. Power to require vessel, etc., to depart.
151 Power to patrol freely and moor vessels, etc.
152. Power to board vessel, etc., and search.
153. Power to stop vehicle suspected of conveying uncustomed
goods, etc.
154. Persons entering or leaving a Partner State to answer questions
concerning baggage.
155. Power to search persons.

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No. 1 East African Community Customs Management 2005
156. Power of arrest.
157. Power to search premises.
158. Search warrants.
159. Power to require production of books, etc.

PART XIII
M
ANUFACTURING UNDER BOND

160. Licensing of bonded factories.
161. Entry of premises as bonded factories.
162. Entry of plant, machinery, etc., for exportation or for home con-
sumption.
163. Manufacturer to provide facilities.
164. Importation of equipment, machinery, raw materials, etc.
165. Provisions relating to goods in a bonded factory.
166. Goods from bonded factory may be entered for home consump-
tion.

PA RT X I V
E
XPORT PROCESSING ZONES AND FREEPORTS

167. Goods entering export processing zones or freeports.
168. Removal of goods or waste for home consumption.
169. Designated areas in export processing zone or a freeport.
170. Notification to Commissioner.

PA RT X V
I
NWARD AND OUTWARD PROCESSING

171. Interpretation of Part XV.
172. Procedure of operation. Inward Processing
173. Time limit for inward processing.
174. Compensating products in inward processing.
175. Compensating products entered for home consumption.
176. Compensating products obtained from equivalent goods.
177. Rate of yield in inward processing.

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No. 1 East African Community Customs Management 2005
Outward Processing

178. Authorization for outward processing procedure.
179. Time limit for outward processing.
180. Compensating products in outward processing.
181. Relief from payment of duty.
182. Determination of duty of re-imported goods.
183. Relief from duty on emergency repairs.
184. Replacement system.
185. Condition for re-importation in the same state.
186. Rate of yield in outward processing.

PART XVI
A
PPLICATION OF INFORMATION TECHNOLOGY

187. Customs formalities may be carried out by information tech-
nology.
188. Users of the Customs computerized system.
189. Access to Customs computerised systems.
190. Cancellation of registration of registered user.
191. Unauthorised access to or improper use of Customs comput-
erised system.
192. Interference with Customs computerised system.

PART XVII
O
FFENCES , P ENALTIES , F ORFEITURES AND SEIZURES

193. Conspiring to contravene provisions of this Act.
194. Offences with violence, etc.
195. Removing or defacing Customs seals.
196. Inducing another to commit offence.
197. Offence to warn offender.
198. Offence to assume character of officer.
199. Master of vessel, etc., used for smuggling commits an offence.
200. Offences related to prohibited, restricted, and uncustomed goods.
201. Payment of duty in addition to fine.
202. Offence to import or export concealed goods.
203. Offence to make or use false documents.
204. Offence to refuse to produce documents, etc.

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No. 1 East African Community Customs Management 2005
205. Offence to interfere with Customs gear.
206. Uncustomed goods found to be reported.
207. Goods offered on pretence of being smuggled.
208. Aiders, abettors, etc.
209. General penalty.
210. Goods liable to forfeiture.
211. Vessels, etc., liable to forfeiture.
212. Provisions relating to goods liable to forfeiture.
213. Power to seize goods liable to forfeiture, etc.
214. Procedure on seizure.
215. Effect of conviction, etc. on things liable to forfeiture.
216. Procedure after notice of claim.
217. Provisions relating to condemnation.
218. Restoration of seizures.

PART XVIII
S
ETTLEMENT OF CASES BY THE COMMISSIONER
219. Power of Commissioner to compound offence.
PA RT X I X
L
EGAL PROCEEDINGS

220. Proceedings triable in a subordinate court.
221. Actions by or against the Commissioner.
222 Limitation of proceedings.
223. Provisions relating to proof, etc., in proceedings.
224. Provisions relating to penalties for offences.
225. Place of trial.
226. Protection of witnesses.
227. Reasonable grounds of defence in any action against officer.
228. Power of officer to prosecute.

PA RT X X
A
PPEALS

229. Application for review to Commissioner.
230. Appeals to tax appeals tribunal.
231. Establishment of tax appeals tribunal.

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PART XXI
M
ISCELLANEOUS PROVISIONS

232. Attendance of master before proper officer.
233. Provisions relating to prescribed forms.
234. Provisions relating to all documents.
235. Production of documents.
236. Inspection or audit.
237. Provisions relating to declarations and signature.
238. Receipts for payment on entry.
239. Service of notices, etc.
240. Provisions relating to loading, etc., of goods.
241. Proper officer may take samples.
242. Rewards.
243. Auctioneers legislation to apply to sales.
244. Licensing of vessel conveying goods subject to Customs control.
245. Application of Act to importation etc., overland.
246. Provisions relating to commissioned vessels.
247. Power of Commissioner in special cases, notices, etc.
248. Re-exportation, destruction and abandonment.
249. Penalty for late payment.
250. Exemption from liability.
251. Regulations.
252. Savings and transitional provisions.
253. Act to take precedence.

SCHEDULES
FIRST SCHEDULE – Declaration of Officer
SECOND SCHEDULE- Prohibited and Restricted Imports Generally
THIRD SCHEDULE – Prohibited and Restricted Exports Generally
FOURTH SCHEDULE -Determination of Value of Imported Goods Liable to Ad
Va l o r e m Import Duty
FIFTH SCHEDULE – Exemptions Regime
SIXTH SCHEDULE-Warrant of Distress

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No. 1 East African Community Customs Management 2005

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No. 1 East African Community Customs Management 2005

THE EAST AFRICAN COMMUNITY

NO. 1 OF 2005

Date of assent: 31 st December, 2004
Date of commencement: 1
st January, 2005
An Act of the Community to make provisions for the management
and administration of Customs and for related matters.

PA RT I
P
RELIMINARY PROVISIONS
1.-(1) This Act may be cited as the East African Community
Customs Management Act, 2004.

(2) This Act shall apply to the Partner States.
(3) This Act shall commence on the date to be appointed by the
Council.

2. -(1) In this Act, unless the context otherwise requires-
“agent” in relation to an aircraft, vehicle or vessel, includes any person
who notifies the proper officer in writing that he or she intends to
act as the agent and who, or on whose behalf any person authorised
by him or her, signs any document required or authorised by this Act
to be signed by an agent: Provided that the owner of any aircraft,
vehicle or vessel, if resident or represented in a Partner State, shall
either himself or herself or through his or her representative be
deemed to be the agent for all the purposes of this Act if no such
agent is appointed;
Short
title,
applica-
tion and
com-
mence-
ment

Interpre-
tation

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No. 1 East African Community Customs Management 2005
approved place of loading” and “approved place of unloading” mean
any quay, jetty, wharf, or other place, including any part of a
Customs airport, appointed by the Commissioner by notice in the
Gazette to be a place where goods may be loaded or unloaded;
“boarding station” means any place appointed by the Commissioner by
notice in the Gazette to be a place for aircraft or vessels arriving at
or departing from any port or place to bring to for the boarding by
or the disembarkation of officers;
“bonded warehouse” means any warehouse or other place licensed by
the Commissioner for the deposit of dutiable goods on which import
duty has not been paid and which have been entered to be
warehoused;
“cargo” includes all goods imported or exported in any aircraft,
vehicle or vessel other than such goods as are required as stores for
consumption or use by or for the aircraft, vehicle or vessel, its crew
and passengers, and the bona fide personal baggage of such crew
and passengers;
“COMESA” means the organisation established by the Treaty
establishing The Common Market for Eastern and Southern Africa,
1994;
“Commissioner” means Commissioner of Customs appointed under
section 5 of this Act;
“countervailing duty” means a specific duty levied for the purposes of
offsetting a subsidy bestowed directly or indirectly upon the
manufacture, production or export of that product;
“countervailing measures” means actions taken to counter the effect of
subsidies;
“Customs” or “the Customs” means the customs departments of the
Partner States;
“Customs area” means any place appointed by the Commissioner by
notice in writing under his or her hand for the deposit of goods
subject to Customs control;
“Customs laws” includes this Act, Acts of the Partner States and of the
Community relating to Customs, relevant provisions of the Treaty,
the Protocol, regulations and directives made by the Council and
relevant principles of international law;
“Customs Co-operation Council” means the council established by the
Convention establishing the Customs Cooperation Council, 1952;
“Customs revenue” means any amounts collectable by the Customs in

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No. 1 East African Community Customs Management 2005
accordance with the provisions of the Customs laws;
“customs warehouse” means any place approved by the Commissioner
for the deposit of unentered, unexamined, abandoned, detained, or
seized, goods for the security thereof or of the duties due thereon;
“Directorate” means the Directorate of Customs established by the
Council under Article 75(3) of the Treaty;
“Director General” means the Director General of Customs in the
Directorate of Customs;
“document” includes magnetic tapes, disks and microfilms;
“dollar” means United States dollar and includes the equivalent in the
currency of the Partner States;
“duty drawback” means a refund of all or part of any import duty paid
in respect of goods exported or used in a manner or for a purpose
prescribed as a condition for granting duty drawback;
“dutiable goods” means any goods chargeable with duty;
“duty” includes any cess, levy, imposition, tax, or surtax, imposed by
any Act;
“export” means to take or cause to be taken out of the Partner States;
“export duties” means Customs duties and other charges having an
effect equivalent to customs duties payable on the exportation of
goods;
“export processing zone” means a designated part of Customs
territory where any goods introduced are generally regarded, in so
far as import duties and taxes are concerned, as being outside
Customs territory but are restricted by controlled access;
“foreign country” means any country other than a Partner State;
“foreign port” means any port in a foreign country;
“goods” includes all kinds of articles, wares, merchandise, livestock,
and currency, and, where any such goods are sold under this Act, the
proceeds of such sale;
“Government warehouse” means any place provided by the
Government of a Partner State, and approved by the Commissioner,
for the deposit of dutiable goods on which duty has not been paid
and which have been entered to be warehoused;
“green channel” means that part of the exit from any customs arrival
area where passengers arrive with goods in quantities or values not
exceeding those admissible;
“import” means to bring or cause to be brought into the Partner States
from a foreign country;

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No. 1 East African Community Customs Management 2005

“import duties” means any customs duties and other charges of
equivalent effect levied on imported goods;
“manufacturing under bond” means a facility extended to
manufacturers to import plant, machinery, equipment and raw
materials tax free, for exclusive use in the manufacture of goods for
export;
“master” includes any person for the time being having or taking
charge or command of any aircraft or vessel;
“officer” includes any person, other than a laborer, employed in the
service of the Customs, or for the time being performing duties in
relation to the Customs;
“owner” in respect of –
(a) an aircraft, vessel, or vehicle, includes every person acting as
agent for the owner, or who receives freight or other charges
payable in respect of, or who is in possession or control of, the
aircraft, vessel, or vehicle;
(b) goods, includes any person other than an officer acting in his or
her official capacity being or holding himself or herself out to be
the owner, importer, exporter, consignee, agent, or the person in
possession of, or beneficially interested in, or having control of,
or power of disposition over, the goods;
“package” includes every means by which goods for conveyance may
be cased, covered, enclosed, contained, or packed;
“port” means any place, whether on the coast or elsewhere, appointed
by the Council by notice in the Gazette, subject to any limitations
specified in such notice, to be a port for the purpose of the Customs
laws and, in relation to aircraft, a port means a Customs airport;
“postal article” includes any letter, postcard, newspaper, book,
document, pamphlet, pattern, sample packet, small packet, parcel,
package, or other article whatsoever, in course of transmission by
post;
“Post Office” means a Partner State Posts body established in
accordance with a Partner States’ Communication law;
“prohibited goods” means any goods the importation, exportation, or
carriage coastwise, of which is prohibited under this Act or any law
for the time being in force in the Partner States;
“proper officer” means any officer whose right or duty it is to require
the performance of, or to perform, the acts referred to in this Act;
“Protocol” means the Protocol on the Establishment of the East African
Community Customs Union and any annexes thereto;

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No. 1 East African Community Customs Management 2005

“re-exports” means goods, which are imported and are under Customs
control for re-exportation;
“red channel” means that part of the exit from any customs arrival area
where passengers arrive with goods in quantities or values
exceeding passenger allowance;
“refinery” means a bonded warehouse licensed by the Commissioner
for the treatment of oils;
“registered user” person authorized to access the customs
computerized system
“restricted goods” means any goods the importation, exportation,
transfer, or carriage coastwise, of which is prohibited, save in
accordance with any conditions regulating such importation,
exportation, transfer, or carriage coastwise, and any goods the
importation, exportation, transfer, or carriage coastwise, of which is
in any way regulated by or under the Customs laws;
“SADC” means the organization established by the Treaty of the
Southern African Development Community, 1992;
“smuggling” means the importation, exportation, or carriage
coastwise, or the transfer or removal into or out of a Partner States,
of goods with intent to defraud the Customs revenue, or to evade
any prohibition of, restriction on, regulation or condition as to, such
importation, exportation, carriage coastwise, transfer, or removal, of
any goods;
“stores” goods for use in aircraft, vessels and trains engaged in
international transport for consumption by passengers and crew and
goods for sale on board;
“subsidy” means assistance by a government of a Partner State or a
public body to the production, manufacture, or export of specific
goods taking the form of either direct payments, such as grants or
loans or of measures with equivalent effect such as guarantees,
operational or support services or facilities and fiscal incentives;
“sufferance wharf” means any place, other than an approved place of
loading or unloading at which the Commissioner may allow any
goods to be loaded or unloaded;
“tons register” means the tons of a ship’s net tonnage as ascertained and
registered according to the tonnage regulations applied in a Partner
State;
“transfer” means the movement of goods from one Partner State
directly or indirectly to another Partner State, but shall not include
goods in transit, goods for transshipment or goods for warehousing

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No. 1 East African Community Customs Management 2005
in a bonded warehouse;
“transhipment” means the transfer, either directly or indirectly, of any
goods from an aircraft, vehicle or vessel arriving in a Partner State
from a foreign place, to an aircraft, vehicle or vessel, departing to a
foreign destination;
“transire” means a certificate of clearance issued to any person under
section 100 of this Act to carry goods coastwise or to transfer goods;
“transit” means the movement of goods imported from a foreign place
through the territory of one or more of the Partner States, to a
foreign destination;
“transit shed” means any building, appointed by the Commissioner in
writing for the deposit of goods subject to Customs control;
“uncustomed goods” includes dutiable goods on which the full duties
due have not been paid, and any goods, whether dutiable or not,
which are imported, exported or transferred or in any way dealt with
contrary to the provisions of the Customs laws;
“vehicle” includes every description of conveyance for the transport by
land of persons or goods;
“vessel” includes every description of conveyance for the transport by
water of persons or goods;
“voyage” includes flight by aircraft;
“warehoused” means deposited in a Government or bonded warehouse
with the authority of the person in charge of that warehouse;
“warehouse keeper” means the holder of a licence granted in respect of
a bonded warehouse;
“wharf owner” includes any owner or any occupier of any approved
place of loading or unloading or of any sufferance wharf.

(2) For the purposes of this Act-
(a) goods shall be deemed to be entered when the entry, made
and signed by the owner in the prescribed manner, is
accepted and signed by the proper officer and any duty due
or deposit required under this Act in respect of the goods
has been paid, or security has been given for compliance
with this Act;
(b) goods shall be deemed to be entered for home consumption
when they have been declared for use in a Partner State,
other than temporary use, and the provisions of paragraph
(a) have been fulfilled;

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No. 1 East African Community Customs Management 2005

(c) the time of importation of goods shall be deemed to be the
time at which the goods come within the boundaries of the
Partner States;

(d) the time of exportation of goods shall be deemed to be(i) the
time at which the carrying aircraft or vessel departs from its
final position, anchorage or berth at the port or place
within boundaries of the Partner State at which the goods
are shipped for exportation; in the case of goods exported
overland, the time at which the goods pass across the
boundaries of the Partner States;

(e) where any aircraft or vessel arrives within a Partner State
from any foreign port, in relation to each port or place
within a Partner State at which such aircraft or vessel may
arrive, such aircraft or vessel shall be deemed to have
arrived from a foreign port;

(f) where any aircraft or vessel proposes to depart from a
Partner State to any foreign port, then, in relation to each
port or place within a Partner State from which such aircraft
or vessel may depart, such aircraft or vessel shall be deemed
to be departing therefrom to a foreign port;

(g) any reference to a Partner State, or any of the neighbouring
Partner States, shall be deemed to include a reference to the
territorial waters thereof;

(h) every act, matter, or thing, required or authorised by this Act
to be done or performed by, with, to, or before, the
Commissioner, if done or performed by, with, to, or before,
any officer appointed by the Commissioner for such
purpose, shall be deemed to be done or performed by, with,
to, or before, the Commissioner;

(i) every person employed on any duty or service relating to the
Customs by order, or with the concurrence, of the
Commissioner shall be deemed to be the proper officer for
that duty or service; and every act required by this Act at
any time to be done by, with, to, or before, any particular

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No. 1 East African Community Customs Management 2005

officer nominated for such purpose, if done by, with, to, or
before, any person appointed by the Commissioner, to act
for such particular officer, shall be deemed to be done by,
with, to, or before, such particular officer.

Directo-
rate of
Customs

Function
s of the
Directo-
rate
PA RT 1 1
A
DMINISTRATION
3. The Directorate of Customs as established by the Council under
the Treaty shall be responsible for the initiation of policies on Customs
and related trade matters in the Community and the coordination of
such policies in the Partner States.

4.-(1) Without prejudice to the generality of section 3, the
Directorate shall, in relation to management and administration of
Customs, coordinate and monitor –

(a) administration of the Common External Tariff;
(b) enforcement of the Customs law of the Community;
(c) trade facilitation as provided for in Article 6 of the Protocol;

(d) administration of the Rules of Origin;
(e) compilation and dissemination of trade statistics;
(f) application and interfacing of information technology in
Customs administration;

(g) training in Customs related matters;
(h) quality control in Customs operations and enforcement of
compliance;
(i) Customs related negotiations; and

(j) activities of the Commissioners in the implementation of
this Act.

(2) The Directorate shall in the performance of its functions under
this Act-

(a) be subject to the general direction of the Council and
perform such other functions as may be prescribed by the
Council; and

20

2005

(b) consult with, and where necessary, delegate any of its
functions to, any Commissioner.

(3) For the purposes of this Act, the Council shall make regulations
for the working arrangements between the Directorate and
the Customs.

(4) The Council shall establish within the Community’s
institutional framework, a committee charged with facilitating-

(a) the Directorate’s formulation of policies and programmes
on Customs management and administration;
(b) exchange of information between the Directorate and the
Commissioners; and

(c) any other matters on working arrangements between the
Directorate and the Customs.

5.-(1) There shall be appointed, in accordance with Partner States’
legislation, a Commissioner responsible for the management of
Customs by each of the Partner States and such other staff as may be
necessary for the administration of this Act and the efficient working
of the Customs.

(2) The Commissioner shall be responsible for the management and
control of the Customs including the collection of, and accounting for,
Customs revenue in the respective Partner State.

(3) The Commissioner may authorize any officer to exercise any of
the powers conferred by this Act upon the Commissioner subject to
such limitations as the Commissioner may impose.

(4) An officer appointed to any permanent office or employment in the
Customs shall, on his or her appointment thereto, make and subscribe
before a magistrate or a commissioner for oaths, a declaration in the
form set out in the First Schedule.

6.-(1) There shall be a seal of the Customs Union which shall be
officially and judicially noticed and whose design and description shall
be prescribed by regulations.
Provisi-
ons rela-
ting to
staff

Customs
Union
seal and
flag

21

No. 1 East African Community Customs Management 2005

(2) The seal of the Customs Union shall be used as the official seal
of the Customs.

(3) There shall be a flag of the Customs Union whose design and
description shall be prescribed by regulations.

(4) The flag of the Customs Union and the flag of the Community
shall be used to distinguish vessels employed in the service of the
Customs from other vessels.

(5) In this section, Customs Union has the meaning assigned to it in
the Protocol.
Officer
to have
powers
of police
officer

Hours of
Attenda-
nce
7. For the purpose of carrying out the provisions of this Act, every
officer shall, in the performance of his or her duty, have all the
powers, rights, privileges, and protection, of a police officer of the
Partner State in which such officer performs his or her duty.

8.-(1) The Commissioner shall prescribe the working days and
hours of general attendance of officers.

(2) Where any person desires the attendance of any officer at a time
outside the hours of general attendance, then such person shall make
request therefor on the prescribed form to the proper officer at the port
or place where such attendance is desired; and, subject to any
regulations and to the payment of the prescribed fees, the grant of such
request shall not-

(a) in the case of any person arriving in, or departing from, a
Partner State overland or by inland waters, be refused by the
proper officer;

(b) in any other case, be unreasonably refused by the proper
officer.

(3) Where any person desires the attendance of any officer at any
premises or place at which customs business is not normally carried
on, then such person shall make request therefor on the prescribed
form to the proper officer and, subject to any regulations and to the
payment of the prescribed fees, the grant of such request shall be in the
discretion of the proper officer.

22

No. 1 East African Community Customs Management 2005

9.-(1) An officer who-
(a) directly or indirectly asks for, or takes, in connection with
any of his or her duties any payment or other reward
whatsoever, whether pecuniary or otherwise, or any
promise or security for any such payment or reward, not
being a payment or reward which he or she is lawfully enti-
tled to claim or receive; or

(b) enters into or acquiesces in any agreement to do, abstain
from doing, permit, conceal, or connive at, any act or thing
whereby the Customs revenue is or may be defrauded, or
which is contrary to the provisions of this Act or the proper
execution of his duty,commits an offence and shall be liable
on conviction to imprisonment for a term not exceeding
three years.

(2) A person who discloses, except for the purposes of this Act or
when required to do so as a witness in any court or with the approval
of the Commissioner, any information acquired by him or her in the
performance of his or her duties relating to any person, firm, or
business of any kind commits an offence and shall be liable on
conviction to a fine not exceeding two thousand five hundred dollars
or to imprisonment for a term not exceeding three years or to both such
fine and imprisonment.

(3) A person who-

(a) directly or indirectly offers or gives to any officer any
payment or reward whatsoever, whether pecuniary or
otherwise, or any promise or security for any such payment
or reward; or

(b) proposes or enters into any agreement with any officer,in
order to induce him or her to do, abstain from doing, permit,
conceal, or connive at, any act or thing whereby the
Customs revenue is or may be defrauded, or which is
contrary to the provisions of this Act or the proper
execution of the duty of such officer, commits an offence
and shall be liable on conviction to imprisonment of a term
not exceeding three years.
Offences
by, or in
relation
to offi-
cers

23

No. 1 East African Community Customs Management 2005
Exchange
of infor-
mation
and
common
border
controls

Appoi-
ntment
of ports,
etc.

Appoi-
ntment
of
Customs
areas

10.-(1) The Commissioners shall furnish each other with such
information, certificate, official report or document on matters relating
to –

(a) prevention, investigation and suppression of offences under
this Act; and

(b) any other relevant information relating to customs.
(2) The Commissioners shall establish common border posts, carry
out joint customs controls and take joint steps as may be deemed
appropriate to ensure that goods exported or imported through
common frontiers pass through the competent and recognised Customs
offices and along approved routes.

(3) Subject to reciprocal arrangements agreed upon by the
Commissioner, the Commissioner may request from, or furnish to, the
competent authorities of a foreign state any information, certificate,
official report or other document in order to prevent, investigate or
suppress offences against the laws applicable to the importation or
exportation of goods into or from the territory of such foreign state.

11 . -(1) The Council may, by notice in the Gazette, appoint and fix
the limits of-

(a) ports;
(b) Customs airports;
(c) places of loading and unloading within ports.

(2) Ports, Customs airports, and places of loading and unloading,
may be appointed for specified limited purposes.

12.-(1) The Commissioner may, by notice in the Gazette, appoint-
(a) boarding stations;
(b) Customs areas;
(c) sufferance wharves;
(d) places for the landing and embarkation of persons;

24

No. 1 East African Community Customs Management 2005

(e) places for the examination of goods, including baggage;
(f) roads or routes in a Partner State over which goods in
transit, or goods transferred between the Partner States,
shall be conveyed;

(g) entrances and exits, whether general or special, to and from
any Customs area or Customs airport within a Partner State;

(h) transit sheds;
(i) internal container depots.
(2) An appointment made under subsection (1) may be subject to
such conditions, including the provision of suitable accommodation
for officers, as the Commissioner may deem fit; and the Commissioner
may, in any particular case and subject to such conditions as he or she
may deem fit, permit any boarding station, area, wharf, place, road,
route, entrance, or exit, to be used as if it had been so appointed and in
any such case this Act shall apply thereto as if it had been so
appointed.

(3) The Commissioner may by notice in the Gazette revoke
appointment of any Customs area if he or she is satisfied that the
conditions imposed under subsection (2) have not been complied with.

13.-(1) A wharf owner shall provide, to the satisfaction of the
Commissioner-
(a) suitable office accommodation on his or her wharf or
sufferance wharf for the exclusive use of the officer
employed at the wharf; and

(b) such shed accommodation for the protection of goods as the
Commissioner may in writing declare to be requisite.

(2) Where any wharf owner contravenes any of the provisions of
this section-

(a) the appointment of a place of loading or unloading or a
sufferance wharf may be withheld until the required
accommodation is provided to the satisfaction of the
Commissioner;

(b) any existing appointment may be revoked.

Acco-
mmoda-
tion on
wharves

25

No. 1 East African Community Customs Management 2005
Licensi-
ng
internal
container
depot 14.-(1) The Commissioner may, on application, license any internal
container depot for the deposit of goods subject to Customs control,
and the Commissioner may refuse to issue any such licence and may
at any time revoke any licence which has been issued.

(2) The Commissioner shall give reasons for his or her refusal to
grant a licence or for revoking a licence under subsection (1).
(3) The owner of an internal container depot shall-

(a) provide such office accommodation and weights, scales,
measures, and other facilities, for examining and taking
account of goods and for securing them as the proper
officer may require;

(b) keep a record of all goods in the depot and shall keep such
record at all times available for examination by the proper
officer;

(c) provide all necessary labour and materials for the storing,
examining, packing, marking coopering, weighing, and
taking stock of goods in internal container depot whenever
the proper officer so requires;

(d) maintain such records and accounts relating to goods and to
operations, in such form and manner, as the proper officer
shall require; and keep such records and accounts at all
times available for examination by the proper officer.

(e) any other requirement as may be specified by the
Commissioner.

(4) Where any internal container depot owner contravenes this
section, the Commissioner may direct that no other goods shall be kept
in the depot until the owner has, in the opinion of the Commissioner,
complied with this section.

(5) The owner of an internal container depot who contravenes any
of the provisions of this section or of any direction given by the
Commissioner under this section commits an offence and shall be
liable to a fine not exceeding one thousand dollars.

26

No. 1 East African Community Customs Management 2005

15.-(1) A person or vehicle shall not enter or leave any Customs area
or Customs airport, and goods, whether dutiable or not, shall not be
brought into or out of any such area or airport, except through an
entrance or exit appointed in accordance with section 12.

(2) A person shall not enter any part of a Customs area or Customs
airport when forbidden to do so by any officer nor remain in such area
or airport, or any part thereof when requested to leave such area or
airport, or part thereof, by any officer.

(3) A person or vehicle entering or leaving any Customs area or
Customs airport, and all goods which are being brought into or out of
such area or airport, may be detained by any officer for the purposes of
search or examination.

(4) A person who contravenes this section commits an offence and
shall be liable on conviction to a fine not exceeding one thousand
dollars and any goods in respect of which such offence has been
committed shall be liable to forfeiture.

16.-(1) The following goods shall be subject to Customs control-
(a) imported goods, including goods imported through the Post
Office, from the time of importation until delivery for home
consumption or until exportation, whichever first happens;
(b goods under duty drawback from the time of the claim for
duty drawback until exportation;
(c) goods subject to any export duty from the time when the
goods are brought to any port or place for exportation until
exportation
(d) goods subject to any restriction on exportation from the
time the goods are brought to any port or place for exporta-
tion until exportation;
(e) goods which are with the permission of the proper officer
stored in a Customs area pending exportation;

(f) goods on board any aircraft or vessel whilst within any part
or place in a Partner State;

(g) imported goods subject to duty where there is a change of
ownership over such goods from an exempt person to a non
exempt person;
Offences
in
respect
of
Customs
areas,
etc.

Customs
control
of goods

27

No. 1 East African Community Customs Management 2005

(h) goods which have been declared for or are intended for
transfer to another Partner State;
(i) seized goods.

(2) Where any goods are subject to Customs control, then-
(a) any officer may at any time examine such goods;
(b) except with the authority of the Commissioner or in
accordance with this Act, no person shall interfere in any
way with such goods.

(3) Where any goods are subject to Customs control, then the
Commissioner may permit the owner of such goods to abandon them
to the Customs; and on such abandonment such goods may, at the
expense of the owner thereof, be destroyed or otherwise disposed of in
such manner as the Commissioner may direct and the duty thereon
shall be remitted or refunded, as the case may be.

(4) A person who contravenes subsection (2)(b) commits an offence
and shall be liable on conviction to a fine not exceeding one thousand
dollars or to imprisonment for a term not exceeding three years, or both
and any goods in respect of which such offence has been committed
shall be liable to forfeiture.

Liability
for loss,
etc.,
through
negli-
gence of
officer

Prohibited
and
restricted
imports
17. Where any loss or damage is occasioned to any goods subject to
Customs control through the wilful or negligent act of a Commissioner
or an officer, an action shall lie against the Commissioner or such
officer in respect thereof.

PART III
I
MPORTATION

Prohibited and Restricted Import

18.- (1) The goods specified in Part A of the Second Schedule are
prohibited goods and the importation thereof is prohibited.

(2) The goods specified in Part B of the Second Schedule are
restricted goods and the importation thereof, save in accordance with
any conditions regulating their importation, is prohibited.

28

No. 1 East African Community Customs Management 2005

19.-(1) The Council may by order published in the Gazette amend
the Second Schedule so as to provide that the importation of any goods
or class of goods –

(a) is prohibited, either generally or in relation to any Partner
State;

(b) is prohibited, save in accordance with any conditions
regulating their importation, either generally or in relation
to a Partner State.

(2) The Council may, by order published in the Gazette-

(a) provide that the importation into a Partner State, or any area
thereof, of any goods, or class of goods, shall be prohibited
or shall be prohibited save in accordance with such
conditions as may be specified in such order;

(b) limit in respect of a Partner State the application of the
provisions of the Second Schedule in respect of all or any
of the goods specified therein; and thereupon in respect of
such goods the provisions of this Act shall apply as if such
goods are, or are not, as the case may be, included in the
Second Schedule.

(3) An order made under this section may specify goods, or any
class of goods, either generally or in any particular manner and may
prohibit or restrict the importation thereof either from all places or
from any particular country or place.

20.-(1) Subject to subsection (2), sections 18 and 19 shall not apply
to goods imported in transit, or for transhipment, or as stores of any
aircraft or vessel, unless such goods come within paragraph 2 of Part
A of the Second Schedule, or are goods of which the importation in
transit, or for transhipment, or as stores for any aircraft or vessel, is
expressly prohibited or restricted in any order made under this Act
prohibiting or restricting the importation of goods

(2) Where, under subsection (1), sections 18 and 19 do not apply to
any goods imported in transit, or for transhipment, or as stores for any
Power to
prohibit,
etc.
imports

Exemp-
tion of
goods in
transit,
etc.

29

No. 1 East African Community Customs Management 2005

aircraft or vessel, then such goods shall be duly re-exported within
such time and subject to such conditions as the Commissioner may
specify; and where such goods are not so re-exported, then, as from the
last date on which they should have been so re-exported, they shall be
deemed to be prohibited goods, or restricted goods, as the case may be,
and to have been imported on that date.

Proce-
dure on
arrival
Arrival and Report of Aircraft and Vessels
21.-(1) Save as provided in section 28, the master of every aircraft
or vessel arriving in the Partner States-

(a) shall not, except where so allowed by the proper officer in
any special circumstances, cause or permit such aircraft or
vessel to land, touch at, or enter, any place in the Partner
States other than a port;

(b) shall, on arriving at any such port or place, come as
quickly as the conditions of the port or place admit up to the
proper place of mooring or unloading without touching at
any other place;

(c) shall, in proceeding to such proper place, bring to at the
station appointed for the boarding of aircraft or vessels;

(d) shall not, after arriving at such proper place, depart
therefrom except directly to some other approved place of
mooring or unloading, or directly to some other port or
place in the Partner States, or directly on any voyage to a
foreign port, in accordance with this Act;

(e) shall not, after any such departure on any voyage to a
foreign port, bring to within the Partner States except in
accordance with this Act, or with the permission of the
proper officer, or for some cause which the master explains
to the satisfaction of such proper officer.

(2) A master who contravenes this section commits an offence.

30

2005

22. The proper officer may, unless other provision is lawfully made,
direct at what particular part of any port or other place any aircraft or
vessel shall moor or discharge its cargo.

23.-(1) A person, except the port pilot, the health officer, or any
other public officer in the exercise of his or her duties and duly
authorized, shall not, save with the permission of the proper officer,
board any vessel before the proper officer.

(2) A person who contravenes this section commits an offence and
shall be liable to a fine not exceeding two hundred and fifty dollars.

24.-(1) The master or agent of every aircraft or vessel, whether
laden or in ballast, shall, except where otherwise provided in any
regulations, within twenty-four hours after arrival from a foreign port
at any port, or other place especially allowed by the proper officer,
make report of such aircraft or vessel, and of its cargo and stores, and
of any package for which there is no bill of lading, to the proper
officer on the prescribed form and in the prescribed manner.

(2) A report under subsection (1) shall show separately any goods
which are in transit, any goods for transhipment, any goods which are
to remain on board for other ports in the Partner States, and any goods
for re-exportation on the same aircraft or vessel.

(3) In the case of a vessel of less than two hundred and fifty tons
register, such report shall, except where otherwise allowed by the
proper officer, be made before bulk is broken.

(4) The proper officer may permit the master or agent of an aircraft
or vessel to amend the destination, ownership or status of goods
specified in the report where a change in such destination, ownership
or status is intended.

(5) The proper officer may permit the master or agent of an aircraft
or vessel to amend an obvious error in the report, or to supply an
omission, which in the opinion of the proper officer results from
accident or inadvertence.

(6) A master or agent of any aircraft or vessel who-
Place of
mooring,
etc.

Restri-
ction on
boarding
vessel
before
proper
officer

Report

31

No. 1 East African Community Customs Management 2005

(a) fails to make report in accordance with this section;

(b) makes a report of which any of the particulars contained in
the report are false;

(c) except with the knowledge and consent of the proper
officer, causes or permits bulk to be broken contrary to this
section; or

(d) except with the knowledge and consent of the proper
officer, at any time after arrival causes or permits any goods
to be staved, destroyed, or thrown over board, or any
packages to be opened, shall, unless such contravention is
explained to the satisfaction of the proper officer, commits
an offence and any goods in respect of which an offence
contrary to paragraphs (a), (b), (c) or (d), of this subsection
has been committed shall be liable to forfeiture.

Master
to
answer
ques-
tions,
etc. 25.-(1) The master or agent of every aircraft or vessel-
(a) shall answer fully and immediately all such questions
relating to the aircraft or vessel, its cargo, stores, baggage,
crew, and passengers, as may be put to him or her by the
proper officer;

(b) shall produce all such books and documents in his or her
custody or control relating to the aircraft or vessel, its cargo,
stores, baggage, crew, and passengers, as the proper officer
may require;

(c) shall, before any person, unless permitted to do so by the
proper officer, disembarks, deliver to the officer who boards
such aircraft or vessel on arrival at any port or place, a
correct list in the prescribed form containing separately the
names of the passengers disembarking and of those
remaining on board such aircraft or vessel, and also, when
required by such officer, the names of the master and of
each officer and member of the crew;

(d) shall, when required, deliver to the proper officer at the time
of making report the clearance, if any, of such aircraft or

32

No. 1 East African Community Customs Management 2005

vessel from the port from which such aircraft or vessel has
arrived.

(2) A master or agent who contravenes this section commits an
offence.

26.-(1) Goods which have been unloaded and landed into a transit
shed or a Customs area shall be deemed to be still in the importing
aircraft or vessel until they are delivered from such transit shed or
Customs area; and so long as they remain in the transit shed or the
Customs area the owners or agents of the aircraft or vessel shall
continue to be responsible for the goods as if such goods had not been
removed from such aircraft or vessel.

(2) Where the goods are handed over to an owner of a transit shed
who is not an agent of the importing aircraft or vessel the owner of the
transit shed shall be responsible and accountable for the goods.

(3) The owner or agent of an aircraft or vessel or the owner of a
transit shed, as the case maybe, shall be liable for payment of duty on
the goods if the goods are not subsequently delivered or otherwise
accounted for to the satisfaction of the proper officer or for reshipment
or destruction of goods which are condemned while still in the dry port
or inland transit shed.

(4) The owner or agent of an aircraft or vessel or a transit shed
owner referred to in subsection (2) who fails to account for any of the
goods for which he is responsible to the satisfaction of the proper
officer, within such period as may be prescribed or such further period
as the proper officer may allow, commits an offence.

(5) The owner or agent of an aircraft or vessel or the owner of a
transit shed shall be liable to pay for the reshipment or for the
destruction of any condemned goods

(6) The owner or agent of an aircraft or vessel or the owner of a
transit shed as the case may be, who fails to meet the cost of
reshipment or destruction of any condemned goods pursuant to
subsection (5) commits an offence.
Goods in
transit
shed etc;
deemed
to be in
aircraft
or vessel

33

No. 1 East African Community Customs Management 2005
Goods
reported
to be
unloaded

Master
of
wreck,
etc., to
report
27. Where any goods reported for discharge at a port, or place
specially allowed by the proper officer, are not duly unloaded and
deposited in a transit shed or a Customs area, then the master or agent
of the aircraft or vessel shall pay duty on the goods unless he or she
explains, to the satisfaction of the proper officer, the failure to unload
and deposit such goods.

28.-(1) When any aircraft or vessel is lost or wrecked or is
compelled to land or bring to, within the Partner States owing to
accident, stress of weather or other unavoidable cause, the master or
agent of such aircraft or vessel shall, with all reasonable speed, make
report of such aircraft or vessel and of its cargo and stores to the
nearest officer or administrative officer.

(2) Where any aircraft or vessel is found abandoned within the
Partner States, then, unless the master or agent thereof satisfies the
Commissioner that all the provisions of this Act in relation to such
aircraft or vessel and its cargo and stores have been complied with,
such aircraft or vessel and its cargo and stores shall be liable to
forfeiture.

(3) A master or agent who contravenes subsection (1) commits an
offence.

Vehicles
arriving
overland
Arrival Overland
29.-(1) A person in charge of any vehicle, whether or not such
vehicle is conveying goods and whether or not such goods (if any) are
dutiable, arriving overland at a frontier of the Partner States from a
place outside the Partner States shall not, except where otherwise
permitted by the proper officer, cause or allow the vehicle to enter the
Partner States at any place other than at a port appointed under section
11, and shall before unloading or disposing of the vehicle or of any
goods therein-

(a) report his or her arrival to the officer stationed at the fron-
tier port at which he or she entered the Partner State;

(b) furnish on the prescribed form such information as may be
required concerning the vehicle or any such goods;

(c) make and subscribe a declaration as to the truth of all
particulars contained in such form;

34

No. 1 East African Community Customs Management 2005

(d) fully and immediately answer all relevant questions put to
him or her by the proper officer;

(e) produce all consignment notes or other relevant documents
demanded of him or her by the proper officer;

(f) save as otherwise provided in the Customs laws, make due
entry of the vehicle and of any such goods.

(2) Vehicles or goods to which this section applies shall not be
removed from the Customs area until after due entry thereof has been
made or until permission for removal has been granted by the proper
officer.

(3) A person who contravenes this section commits an offence and
any goods in respect of which such offence has been committed shall
be liable to forfeiture.

30.-(1) Upon arrival at any port of the Partner States of any train
carrying goods subject to customs control, the station master or other
person in charge of the railway station at that port shall deliver to the
proper officer copies of all invoices, way-bills, consignment notes or
other documents received by him or her and relating to the goods
subject to customs control conveyed by that train and consigned to that
station or required to be entered at that port.

(2) A station master or other person in charge of a railway station at
any port shall not, without the written permission of a proper officer,
permit goods subject to customs control required to be entered at that
port and conveyed to that station in any train to be removed from the
transit shed or customs area appointed for such station, or be
forwarded to any other railway station, and it shall be an offence to
remove any goods from such shed or area before delivery or removal
has been authorised by the proper officer.

(3) A station master or other person in charge of a railway station
shall not, without the written permission of the proper officer, deliver
to the consignee or any person at the station any goods which are
required to be entered at any other station.
Trains
arriving

35

No. 1 East African Community Customs Management 2005

(4) An owner or user of a private railway siding or any other person
shall not receive railway wagons containing goods subject to customs
control into a private railway siding unless he or she has been granted
permission in writing by the Commissioner.

(5) A person who contravenes the provisions of this section
commits an offence and any goods in respect of which such offence
has been committed shall be liable to forfeiture.

Arrival
overland
other-
wise
than by
vehicle 31.-(1) A person arriving overland in the Partner States from a
foreign place, if he or she has any goods in his or her possession, shall,
before disposing of the goods-

(a) report his or her arrival to the officer stationed at the
Customs house nearest to the point at which he or she
crossed the frontier;

(b) furnish on the prescribed form such information as may be
required concerning the goods;

(c) make and subscribe a declaration as to the truth of all
particulars contained in the form;

(d) fully and immediately answer all relevant questions put to
him or her by the proper officer;

(e) produce all consignment notes or other relevant documents
demanded of him or her by the proper officer;

(f) save as otherwise provided in the Customs laws, make due
entry of any such goods.

(2) Goods to which this section applies shall not be removed from
the Customs area until after due entry thereof has been made or until
permission for removal has been granted by the proper officer.

(3) The Commissioner may, subject to such conditions as he or she
may specify, exempt any person or class of persons from the
provisions of this section.

36

No. 1 East African Community Customs Management 2005

(4) A person who contravenes this section commits an offence and
any goods in respect of which such offence has been committed shall
be liable to forfeiture.

Clearance by Pipeline

32.-(1) The nature and quantities of goods imported or exported
through a pipeline shall be recorded and reported by the operator of the
pipeline in such manner as the Commissioner may direct.

(2) For the purpose of keeping records and making reports referred
to in subsection (1), the operator shall at his or her own expense,
provide such apparatus and appliances as the Commissioner may
specify

Unloading and Removal of Cargo

33.-(1) Save with the written permission of the proper officer and
subject to such conditions as he or she may impose-

(a) goods shall not be unloaded from any aircraft or vessel
arriving from a foreign port unless such goods have been
duly entered;

(b) goods shall not be unloaded or removed from any aircraft or
vessel arriving from a foreign port at any time whatsoever
except as prescribed by the Commissioner;

(c) goods shall not be unloaded from any aircraft or vessel
arriving from a foreign port except at an approved place of
unloading or at a sufferance wharf:

(2) Notwithstanding subsection (1)-

(a) goods may be unloaded from any such aircraft or vessel into
another vessel in order to be landed; and in any such case
such goods shall be taken directly to and landed without
delay at an approved place of unloading or at a sufferance
wharf;
Operator
of
pipeline
to report

Unload-
ing, etc.

37

No. 1 East African Community Customs Management 2005

(b) with the permission of the proper officer and subject to such
conditions as he or she may impose, goods reported for
re-exportation by another aircraft or vessel may be
unloaded into any other aircraft or vessel pending
re-exportation;

(3) All goods, which have been unloaded or landed, shall be
conveyed to a Customs area and, if the proper officer so requires, shall
be deposited in a transit shed or in a Customs warehouse:
Provided that such goods as the proper officer may consider to
be unsuited for storage in a transit shed or a Customs warehouse
shall be deposited in such other place as the proper officer may
direct, and thereupon such other place shall, for the purpose of
such deposit, be deemed to be a transit shed;

(4) Goods shall not be removed from any part of a Customs area or
from a transit shed or a Customs warehouse unless such goods have
been duly reported and entered and authority for their removal or
delivery has been given by the proper officer:

Provided that the proper officer may, if he or she considers it
necessary, direct the agent of any aircraft or vessel from which
goods have been landed into any transit shed or Customs
warehouse to remove such goods to some other place (which
other place shall, for such purpose, be deemed to be a transit
shed) selected by such proper officer and, if the agent fails to
remove the goods when called upon, the proper officer may have
them removed at the risk and expense of such agent;

(5) All goods entered for warehousing shall be removed by the
importer by such routes, in such manner, and within such time, as the
proper officer may direct to the warehouse for which they were entered
and shall be delivered into the custody of the person in charge of the
warehouse:
Provided that, if the proper officer so requires, the owner shall
first enter into a bond for the due warehousing of the goods.

(6) A person who contravenes this section, or any of the conditions
which may have been imposed by, or any of the directions which may
have been given by, the proper officer commits an offence and any
goods in respect of which such offence has been committed shall be
liable to forfeiture.

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No. 1 East African Community Customs Management 2005

Entry, Examination and Delivery
34.-(1) Save as otherwise provided in the Customs laws, the whole
of the cargo of an aircraft, vehicle or vessel which is unloaded or to be
unloaded shall be entered by the owner within twenty one days after
the commencement of discharge or in the case of vehicles on arrival or
such further period as may be allowed by the proper officer, either
for-

(a) home consumption;

(b) warehousing;

(c) transhipment;

(d) transit; or

(e) export processing zones.

(2) Where any entry is delivered to the proper officer, the owner
shall furnish with the entry full particulars supported by documentary
evidence of the goods referred to in the entry.

(3) Entries for goods to be unloaded may be delivered to the proper
officer for checking before the arrival at the port of discharge of the
aircraft or vessel in which such goods are imported; and in such case
the Commissioner may in his or her discretion permit any goods to be
entered before the arrival of such aircraft or vessel or vehicle.

(4) Where any goods remain unentered within the period specified
under subsection (1) then such goods shall, if the proper officer so
requires, be removed by, or at the expense of, the agent of the aircraft
or vessel in which such goods were imported to a Customs warehouse.

35. The surplus stores of any aircraft or vessel may, with the
permission of the proper officer, be entered for home consumption or
for warehousing.

Entry of
cargo

Surplus
stores
may be
entered

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No. 1 East African Community Customs Management 2005
Provi-
sions
relating
to mail,
personal
baggage,
etc.

Entry in
absence
of docu-
ments
36.-(1) Notwithstanding sections 33 and 34-
(a) mail bags and postal articles in the course of transmission
by post may be unloaded and delivered to an officer of the
Post Office without entry;

(b) goods which are the bona fide personal baggage of the
passengers, or members of the crew, of any aircraft or
vessel may, subject to the provisions of any regulations, be
unloaded and delivered to such persons without entry;

(c) human remains may be released without entry;
(d) diplomatic bags may be released without entry;

(e) the proper officer may permit the unloading and delivery to
the owner of any bullion, currency notes, coin, or perishable
goods, without entry subject to an undertaking being given
by such owner to furnish the necessary entry within
forty-eight hours of the time of delivery.

(2) An owner who contravenes any undertaking given under
subsection (1) (e) commits an offence and shall be liable to a fine not
exceeding five hundred dollars.

37.-(1) Where the owner of any goods is, by reason of the absence
of any, or of any sufficient, documents or information concerning
them, unable to furnish full particulars of such goods, he or she shall
make and subscribe a declaration on the prescribed form to that effect,
and thereupon the proper officer may permit the owner to examine
such goods in his or her presence.

(2) Upon such examination having been made the proper officer
may, subject to section 38, permit the owner to enter such goods for
home consumption, or for warehousing, if he or she is satisfied that the
description of the goods for tariff and statistical purposes is correctly
made in such entry, and also-

(a) in the case of goods liable to duty ad valorem, that the value
declared on the entry is in accordance with the Fourth
Schedule; and

40

2005

(b) in the case of goods liable to duty according to weight,
quantity, number, measurement, or strength, that the weight,
quantity, number, measurement or strength declared on the
entry is correct.

(3) Where the proper officer has permitted entry to be made under
subsection (2), the delivery of such goods may accordingly be made,
but the proper officer may, in the case of goods liable to duty ad
valorem, retain such samples of the goods for such period up to the
passing of perfect entry as he or she may deem fit.

(4) Where the owner of any goods referred to in the declaration does
not make, or is not permitted to make, entry thereof in accordance with
this section, then the proper officer shall cause the goods referred to in
such declaration to be deposited in a Customs warehouse.

38.-(1) Where any goods entered in accordance with Section 37 are
goods liable to duty ad valorem, then such entry shall be deemed to be
a provisional entry.

(2) Where any such goods are provisionally entered for home
consumption, then the proper officer may require the owner to deposit,
in addition to the amount estimated as the duty for the purpose of
making such provisional entry, such further sum as the proper officer
may deem fit; and such estimated duty and further sum shall be held
on deposit and shall be forfeited unless the owner within three months,
or such further period as may be allowed by the proper officer, of the
provisional entry produces to the proper officer satisfactory evidence
of the value of such goods and makes perfect entry thereof.

(3) Where the owner makes perfect entry in accordance with
subsection (2), then where –

(a) the amount of the deposit is more than the full amount of
the duty, either the difference shall be refunded to the owner
and the balance brought to account as duty or the owner
shall pay the full amount of the duty and be refunded the
amount of the deposit;
Provisi-
ons rela-
ting to
goods
liable to
duty ad
valorem

41

No. 1 East African Community Customs Management 2005

Delivery
from
Customs
area in
special
circum-
stances

Re-pack-
ing, etc.,
in
Customs
area, etc.

Exami-
nation of
goods

Goods
deposi-
ted in a
Customs
ware-
house
may be
sold, etc.
(b) the amount of the deposit is equal to or less than the full
amount of the duty, the deposit shall be brought to account
as duty, and the difference, if any, shall thereupon be paid
by the owner.

39.-(1) The proper officer may subject to such conditions as he or
she may impose and to the giving of such security as he or she may
think appropriate for the due return of any goods or the payment of the
duties thereon, permit the goods to be removed from any transit shed
or Customs area without payment of the duty for such purpose, for
such period, and in such quantities, as he or she may deem fit.
(2) A person who contravenes any conditions imposed under
subsection (1) commits an offence and any goods in respect of which
such offence has been committed shall be liable to forfeiture.

40. The proper officer may permit any goods to be re-packed,
skipped, bulked, sorted, lotted, or packed, on any approved place of
unloading, or on a sufferance wharf, or in a transit shed, or in a
Customs area.

41. Goods entered under section 34, may in the presence of the
owner, be examined by the proper officer to take account and
determine the accuracy of the entry made.

Provisions relating to Customs Warehouses
42.-(1) Where any goods which have been deposited in a Customs
warehouse are not lawfully removed within thirty days after deposit,
then the Commissioner shall give notice by publication in the Gazette
that unless such goods are removed within thirty days from the date of
notice they shall be deemed to have been abandoned to Customs for
sale by public auction and may be sold in such manner as the
Commissioner may deem fit:

Provided that any such goods which are of a perishable nature,
or are animals, may be sold by the proper officer without notice,
either by public auction or by private treaty, at any time after
deposit in the Customs warehouse.

(2) Notwithstanding subsection (1) the Commissioner may extend
the period for the removal of goods imported by the Partner States’
Governments, or diplomatic mission or aid agencies.

42

No. 1 East African Community Customs Management 2005

(3) Where any goods have been deposited in a Customs warehouse
then they shall be subject to such rent and other charges as may be
prescribed.

(4) Where any goods are sold under this section, then the proceeds
thereof shall be applied in the order set out below in the discharge of-

(a) the duties, if any;
(b) the expenses of removal and sale;
(c) the rent and charges due to the Customs;
(d) the port charges; and
(e) the freight and any other charges.

(5) Where, after the proceeds of any such sale have been applied in
accordance with subsection (3), there is any balance, then such balance
shall-

(a) if the goods were prohibited goods, or restricted goods in
relation to which there had been any contravention or where
no application for such balance is made as provided in para-
graph

(b) be paid into the Customs revenue;

(b) in any other case be paid to the owner of the goods if he or
she makes application for the payment within one year of
the date of the sale.

(6) Where any goods are offered for sale in accordance with this
section and cannot be sold for a sum to pay all duties, expenses, rent,
freight, and other charges, they may be destroyed or disposed of in
such manner as the Commissioner may direct.

(7) Subject to any other written law restricted or prohibited goods
maybe disposed of in the manner the Commissioner may deem fit.

(8) Any officer having the custody of any goods in a Customs
warehouse, or place of deposit deemed to be a Customs warehouse,

43

No. 1 East African Community Customs Management 2005

may refuse delivery therefrom until he or she is satisfied that all duties,
expenses, rent, freight and other charges due in respect of such goods
have been paid.

Goods
deemed
to be in
Customs
ware-
house

Dise-
mbarka-
tion of
persons
43.-(1) Where under this Act any goods are required to be
deposited in a Customs warehouse, the proper officer may, decide that
it is undesirable or inconvenient to deposit such goods in a Customs
warehouse and direct that such goods shall be deposited in some other
place; and thereupon such goods shall for all purposes be deemed to
have been deposited in a Customs warehouse as from the time that they
are required to be deposited.

(2) Where any goods are deemed to have been deposited in a
Customs warehouse then such goods shall, in addition to the rent and
other charges to which they are liable under section 42, be chargeable
with such expenses incurred in the securing, guarding, and removing,
of them as the proper officer may consider reasonable; and neither the
Commissioner nor any officer shall be liable for the loss of or damage
to such goods which may be occasioned by reason of their being
deposited and dealt with

Passenger Clearance

44.-(1) A person shall not disembark from any aircraft or vessel
except at a place appointed in accordance with section 11 of this Act.

(2) The following persons on landing at any port or place from an
aircraft or vessel which has arrived from or called at a foreign port
shall, subject to section 46 proceed forthwith to the baggage room or
other place set aside for the examination of baggage and there remain
until they receive the permission of the proper officer to leave that
room or other place-

(a) any person who is disembarking at that port or place;

(b) any person, including any person who is returning ashore,
who has any uncustomed goods in his possession, whether
upon his person or in his baggage;

(c) the crew of an aircraft or vessel who are leaving that aircraft
44

No. 1 East African Community Customs Management 2005

or vessel either temporarily or for any other reason, and
wish to remove their baggage or part thereof, from that
aircraft or vessel;

(d) any passenger who is temporarily leaving that aircraft or
vessel and wishes to remove therefrom his baggage, or any
part thereof;

(e) any other person who may be required by the proper officer
to do so.

(3) The Commissioner may require the owner or agent of an aircraft
or vessel conveying passengers to provide advance passenger
information prior to the arrival of such aircraft or vessel.

(4) Any person who contravenes this section commits an offence.
45.-(1) There shall be established at every place of arrival and
within the baggage room at every major port a dual channel system
which shall consist of-

(a) green channel for passengers with nothing to declare or
with baggage consisting of only goods within the prescribed
passenger allowance as provided for in Part B of the Fifth
Schedule of this Act; and

(b) red channel for passengers carrying dutiable or restricted
goods:Provided that crew members of vessels or aircrafts
shall use the red channel.

(2) A person to whom section 44 applies shall without delay take his
or her baggage and any uncustomed goods in his or her possession, to
the place appointed for examination of baggage.

(3) Subject to section 46 a person shall not remove any baggage or
goods out of the baggage room or such other place until the proper
officer authorises such removal.

(4) A person who contravenes any provision of this section commits
an offence.
Baggage
to be
taken to
examina-
tion
place

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No. 1 East African Community Customs Management 2005
Baggage
declara-
tion

Dutiable
goods
may be
ware-
housed

Procedu-
re on
ware-
housing
46.-(1)A person shall on entering the Partner States make a
declaration to the proper officer of his or her baggage and the articles
contained therein or carried with him or her; and that declaration shall
be at the discretion of the proper officer.

(2) A person who takes his or her baggage through the red channel
shall be regarded as having goods to declare and shall make his or her
declaration in accordance with subsection (1), and such person shall
pay to the proper officer any duty that is due and forthwith remove his
or her baggage from the baggage room.

(3) Any person who takes his or her baggage through the green
channel shall be regarded as having made a declaration in accordance
with subsection (1) that he or she has nothing to declare and his or her
baggage shall not be subject to examination unless the proper officer
so requires.

(4) Where upon examination of baggage required to be examined
under subsection (3) the proper officer finds dutiable goods, the owner
of such baggage shall be deemed to have made a false declaration and
commits an offence, and the uncustomed goods shall be subject to
forfeiture.

PA RT I V
W
AREHOUSING OF GOODS

General Provisions
47.-(1) Subject to any regulations, goods liable to import duty may
on first importation be warehoused without payment of duty in a
Government warehouse or a bonded warehouse.

(2) On, or as soon as practicable after, the landing of any goods to
be warehoused, the proper officer shall take a particular account of
such goods and shall enter such account in a book; and such account
shall, subject to sections 52 and 58, be that upon which the duties in
respect of such goods shall be ascertained and paid.

48.-(1) Where any goods entered to be warehoused are delivered
into the custody of the person in charge of a warehouse, the proper

46

No. 1 East African Community Customs Management 2005

officer shall, save where the Commissioner otherwise directs, take a
particular account of such goods, whether or not any account thereof
has been previously taken.

(2) The proper officer shall, in taking such account, enter in the
book for that purpose the name of the aircraft or vessel or the
registered number of the vehicle, as the case may be in which the
goods were imported or, in the case of postal articles, the parcel post
reference, the name of the owner of such goods, the number of
packages, the mark and number of each package, and the value and
particulars of the goods.

(3) After such account has been taken and the goods deposited in the
warehouse in accordance with the direction of the proper officer, such
officer shall certify at the foot of the account that the entry and
warehousing of the goods is complete; and such goods shall from that
time be considered goods duly warehoused.

(4) Subject to section 50, all goods entered to be warehoused, shall
within fourteen days be removed to the warehouse for which they are
entered and deposited therein in the package in which they were
imported:

Provided that-
(i) in the case of bulk cargo or goods destined for a bonded
warehouse located far away from the port of discharge, the
Commissioner may allow for such longer period not
exceeding forty-five days;

(ii) where any goods are permitted to be repacked, skipped,
bulked, sorted, lotted, or packed, in accordance with section
40, then such goods shall be deposited in the packages in
which they were contained when that account thereof was
taken.

(5) Any person who contravenes subsection (4) commits an offence
and any goods in respect of which such offence has been committed
shall be liable to forfeiture.

49.-(1) Where any goods entered to be warehoused and are not duly
warehoused by the owner, the proper officer may cause them to be
removed to the warehouse for which they were entered.

47

Removal
to ware-
house of
goods
entered
therefor

No. 1 East African Community Customs Management 2005

(2) Where any goods are so removed to a bonded warehouse the
warehouse keeper shall pay the cost of the removal of such goods and
shall have a lien on such goods for such cost.

Entry of
ware-
housed
goods

Opera-
tions in a
ware-
house
50.-(1) Goods which have been warehoused may be entered either
for-

(a) home consumption;
(b) exportation;
(c) removal to another warehouse;
(d) use as stores for aircraft or vessels;
(e) re-warehousing;
(f ) removal to an export processing zone; or
(g) removal to a freeport.

(2) Where any goods have been entered for warehousing, they may,
before they are actually warehoused, be entered for home consump-
tion, for exportation, for removal to another warehouse, or for use as
stores for aircraft or vessels, and in any such case such goods shall be
deemed to have been so warehoused and may be delivered for home
consumption, for exportation, for removal to another warehouse, or for
use as stores for aircraft or vessel, as the case may be as if they had
been actually warehoused.

51.-(1) Where any goods are warehoused, the Commissioner may,
subject to such conditions as he or she may impose –

(a) permit such goods to be repacked, skipped, bulked, sorted,
lotted, or packed, therein;

(b) permit samples of such goods to be taken by the owner;

(c) permit the name of the owner of such goods in the account
taken under section 47 to be changed if application is made
on the prescribed form and signed by both the owner and
the intended owner

48

No. 1 East African Community Customs Management 2005

(d) permit the assembly or manufacture in the warehouse of any
article consisting wholly or partly of such goods; and for
such purpose the Commissioner may permit the receipt in a
warehouse of duty free or locally produced articles required
as components of the article to be assembled or manufac-
tured in the warehouse

Provided that-

(i) where the finished article is entered for home con-
sumption, duty shall be charged on the goods forming
part thereof according to the first account taken upon
the warehousing of the goods except in the case of
imported crude petroleum or partly-refined petroleum
oils which are warehoused in a refinery, in which case
duty shall be charged on the goods produced from
crude petroleum or partly refined petroleum oils deliv-
ered from the refinery for home consumption and
shall be the same as that which would be payable on
the importation of similar goods; and

(ii) in respect of blended lubricating oils, duty shall be
charged on the resultant volume of the blend at the
time of entry for home consumption and shall be the
same as that which would be payable on the importa-
tion of similar goods; and

(iii) in respect of any other product as may be prescribed.

(2) A person who contravenes any conditions which may be
imposed by the Commissioner under this section commits an offence
and any goods in respect of which such offence has been committed
shall be liable to forfeiture.

52. The proper officer may, either on the direction of the
Commissioner or on the application and at the expense of the owner-

(a) re-gauge, re-measure, re-weigh, examine, or take stock of,
any warehoused goods;

49
Re-gaug-
ing and
re-valua-
tion

No. 1 East African Community Customs Management 2005

(b) re-value any warehoused goods liable to duty ad valorem
which have deteriorated in quality;

and in either such case the duty on any such goods shall be
payable according to the result, unless the proper officer
considers that any loss or deterioration is excessive or has been
wilfully or negligently caused, in either of which events the duty
shall, subject to such reduction, if any, as the Commissioner may
allow, be payable according to the original account.

Delivery
from ware- house in special circum- stances

Removal to another ware- house

53.-(1) The proper officer may, subject to such conditions as he or
she may impose and to the giving of such security as he or she may think
appropriate for the due return thereof or the payment of duties thereon, permit
any goods to be removed from any warehouse without payment of the duty for
such purpose, for such period, and in such quantities, as he or she may deem
fit.

(2) A person who contravenes any conditions imposed under subsection
(1) commits an offence and any goods in respect of which such offence has been
committed shall be liable to forfeiture.

54.-(1) Where any warehoused goods are to be removed to another warehouse,
then the proper officer-

(a) shall require the owner of such goods to deliver an entry thereof in
such form and manner as the proper officer may direct;

(b) shall require such owner to give security in such amount, not being less
than the duty chargeable on such goods, as the proper officer may
deem fit for the due arrival and re-warehousing of such goods
within such time as the proper officer may consider appropriate; and

(c) shall transmit to the proper officer of the place where such goods are
to be re-warehoused in such other warehouse an account containing
the particulars of such goods.

(2) Security given under this section shall not be discharged unless-

50

2005

(a) the conditions attached to the security have been satisfied;
(b) the full duties payable on such goods have been paid in
accordance with this Act;

(c) such goods are otherwise accounted for to the satisfaction
of the proper officer, and any duties due in respect of any
deficiency in such goods not so accounted for have been
paid.

(3) On the arrival of such goods at such other warehouse they shall
be re-warehoused in the same manner as if they were being
warehoused on the first importation.

55.-(1) Where any warehoused goods have been entered for use as
stores for any aircraft or vessel, they may be delivered for that purpose
to any aircraft or vessel proceeding to a foreign port:

Provided that warehoused goods shall not be entered for use as
stores for a vessel of less than two hundred and fifty tons register
or be delivered for that purpose.

(2) Where any warehoused goods are delivered for the purpose of
being used as stores for an aircraft or vessel, they shall forthwith be put
on board the aircraft or vessel for which they are entered.

(3) Where any warehoused goods are dealt with contrary to this
section, then the owner of such goods commits an offence and any
goods in respect of which such offence has been committed shall be
liable to forfeiture.

56.-(1) The Commissioner may, subject to such conditions as he or
she may impose-
(a) permit the owner of any warehoused goods to abandon such
goods to the Customs;

(b) permit the owner of any warehoused goods which, in the
opinion of the proper officer, are not worth the duty payable
on them or have become damaged, or are surplus, by
reason of any operations in connection with the goods
carried out under section 51 to destroy such goods; and in
either such case the duty on such goods shall be remitted.

51
Ware-
housed
goods
may be
delivered
as stores

Abando-
nment,
etc., of
ware-
housed
goods

No. 1 East African Community Customs Management 2005

(2) Where under subsection (1) any warehoused goods are-
(a) abandoned to the Customs, then such goods may be
destroyed or otherwise disposed of in such manner as the
Commissioner may direct and at the expense of the owner;

(b) permitted to be destroyed and such goods were warehoused
in a Government warehouse, then the owner of such goods
shall nevertheless be liable to pay to the proper officer the
rent and other charges due to such goods.
Period of
ware-
housing
and sale
of goods 57.-(1) All warehoused goods which have not been removed from a
warehouse in accordance with this Act within three months from the
date on which they were warehoused may, with the written permission
of the Commissioner, be re-warehoused for a further period of three
months:

Provided that in the case of-
(a) wines and spirits in bulk warehoused by licensed
manufacturers of wines and spirits; or

(b) goods in a duty free shop; or
(c) new motor vehicles warehoused by approved motor
assemblers and dealers,

the Commissioner may, in addition to the period of re-warehousing
permitted in this subsection, allow for further period of
re-warehousing as he or she may deem appropriate.

(2) Where any goods required to be re-warehoused under subsection
(1) are not so re-warehoused, then they shall be sold by public auction
after one month’s notice of such sale has been given by the proper
officer by publication in such manner as the Commissioner may deem
fit:
Provided that any such goods which are of a perishable nature
may be sold by the proper officer without notice, either by pub-
lic auction or private treaty, at any time after the expiry of the ini-
tial warehousing period.

(3) Where any goods are sold under the provisions of this section,
then the proceeds of such sale shall be applied in the order set out
below in the discharge of-

52

No. 1 East African Community Customs Management 2005

(a) the duties;
(b) the expenses of the sale;
(c) any rent and charges due to the Customs or to the
warehouse keeper;

(d) the port charges; and
(e) the freight and any other charges.

(4) Where, after proceeds of the sale have been applied in
accordance with subsection (3), there is any balance, then such balance
shall, if the owner of the goods makes application within one year from
the date of the sale, be paid to such owner, or, in any other case, be paid
into the Customs revenue.

(5) Where any goods are offered for sale in accordance with this
section and cannot be sold for a sum to pay all duties, expenses, rent,
freight, and other charges, they may be destroyed or disposed of in
such manner as the Commissioner may direct.

58.-(1) Where any warehoused goods are delivered for home
consumption, for exportation, for removal to another warehouse, or for
use as stores for aircraft or vessels, or are to be re-warehoused or sold
under section 57, then the proper officer may examine and take stock
of such goods.

(2) Where there is any deficiency between the quantity shown by the
warehouse account and that ascertained on such examination, then, if
the proper officer considers-

(a) that the deficiency is not excessive or that it was not
wilfully or negligently caused, he or she may allow the
deficiency and direct that the duties on such goods shall be
payable, or that the re-warehousing entry shall be made, as
the case may be, on the result of such examination;

(b) that the deficiency is excessive or that it was wilfully or
negligently caused, he or she shall require the duties on
such goods to be paid by the owner, according to the
warehouse account:

53
Examina
tion of
ware-
housed
goods on
delivery

No. 1 East African Community Customs Management 2005

Provided that-
(i) where the goods are to be re-warehoused, the duty on
such deficiency shall be forthwith paid by the owner
of such goods and the re-warehousing entry shall be
made according to the result of such examination;

(ii) where the goods are to be sold under section 57, the
duty on such deficiency shall be forthwith paid by the
warehouse keeper in any case where the goods were
warehoused in a bonded warehouse.

Access
to Ware-
house

Removal
goods
after
entry for
home
consu-
mption,
export,
etc.
59.-(1) The proper officer shall at all times have the right of access
to any part of any warehouse and may examine any goods therein; and
for the purpose of obtaining such access the proper officer may break
open the warehouse or any part thereof.

(2) A person, other than the proper officer or, in the case of a
bonded warehouse, the warehouse keeper or any duly authorized
employee, shall not open any warehouse or gain access to any goods
therein save with the approval of the proper officer; and any person
who contravenes this subsection commits an offence and shall be liable
on conviction to a fine not exceeding one thousand dollars or to
imprisonment for a term not exceeding two years.

(3) A person shall not enter any warehouse, or part thereof, contrary
to the orders of the proper officer or shall refuse to leave any
warehouse, or part thereof, when directed to do so by the proper
officer; and any person who contravenes this subsection commits an
offence and shall be liable on conviction to a fine not exceeding two
hundred and fifty dollars or to imprisonment for a term not exceeding
one year.

60.-(1) Goods entered for home consumption or sold in accordance
with this Act shall be removed from a warehouse within fourteen days
after such entry or sale as the case may be.

(2) Where goods are entered for export such goods shall be removed
from the warehouse or bonded factory and exported within thirty days
or within such further period, not exceeding thirty days, as the
Commissioner may, in any particular case, allow.

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No. 1 East African Community Customs Management 2005

(3) Where goods are not removed within the period required under
this section then such goods shall, unless the Commissioner in any
special case otherwise directs, be forfeited and may be destroyed or
otherwise disposed of in such manner as the Commissioner may direct.

61. A person who-
(a) takes, or causes or permits to be taken, any goods from any
warehouse otherwise than in accordance with this Act; or

(b) fails to carry into and deposit in the warehouse, any goods
entered for warehousing; or

(c) willfully destroys or damages any warehoused goods
otherwise than in circumstances specifically provided for in
this Act,

commits an offence and shall be liable on conviction to
imprisonment for a term not exceeding two years or a fine equal to
twenty-five percent of the dutiable value of the goods.

Bonded Warehouses
62.-(1) The Commissioner may, on application, license any building
or any other place as a warehouse for the deposit of goods liable to
import duty; and the Commissioner may, refuse to issue any such
licence and may at any time suspend or revoke any licence which has
been issued.

(2) The Commissioner may license any building or any other place
as either-

(a) a general warehouse for the warehousing of goods
generally; or

(b) a private warehouse only for the warehousing of goods
which are the property of the warehouse keeper.

(3) A licence shall be in the prescribed form and shall be subject to
the payment of the prescribed annual fee and shall expire on the
thirty-first day of December in each year.

55

Penalty
for
unlaw-
fully ta-
king,
etc.,
ware-
housed
goods

Commi-
ssioner
may
license
ware-
house

No. 1 East African Community Customs Management 2005

(4) The Commissioner may require the person applying for a license
to furnish such security as the Commissioner may think appropriate as
a condition to the grant of the licence.

(5) The Commissioner may, at any time, require a warehouse
keeper to furnish new security in a different amount or on different
terms.

(6) The Commissioner may, at any time, require a warehouse
keeper to make such alterations or additions to his or her bonded
warehouse as the Commissioner may consider necessary to ensure the
proper security or warehousing of any goods.

(7) A building shall not be used as a bonded warehouse unless there
is in force in relation to the warehouse a valid licence to operate as a
bonded warehouse.

(8) A warehouse keeper who uses, or permits to be used, his or her
warehouse in contravention of any of the terms of his or her licence
commits an offence.

Proce-
dure on
revoca-
tion or
expiry of
license
(9) The Commissioner shall give reasons for his or her refusal to
grant a licence or for revoking or suspending a licence under this
section.

63.-(1) Where the Commissioner revokes any licence under section
62, then he shall cause to be served on the warehouse keeper notice of
such revocation by leaving such notice with the person in charge of the
bonded warehouse; and thereupon such service shall be deemed to be
notice of such revocation to the owners of all goods warehoused
therein.

(2) Where any warehouse keeper proposes not to renew his or her
licence in relation to any bonded warehouse, then he or she shall cause
notice of such intention to be given to the owners of all goods
warehoused therein.

(3) Where the licence in relation to any bonded warehouse has been
revoked or has expired, then, within such time as the Commissioner
may direct, all goods warehoused therein shall be entered and
delivered for home consumption, for exportation, for removal to
another warehouse, or for use as stores for aircraft or vessels.

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No. 1 East African Community Customs Management 2005

(4) Where any goods have not been entered and delivered in
accordance with subsection (3), the proper officer may cause such
goods to be taken to a Customs warehouse and thereupon such goods
shall be dealt with in accordance with section 42.

64.-(1) A warehouse keeper shall-
(a) provide such office accommodation and weights, scales,
measures, and other facilities, for examining and taking
account of goods and for securing them as the proper
officer may require;

(b) keep a record of all goods warehoused and shall keep such
record at all times available for examination by the proper
officer; keep a record of all goods warehoused therein and
shall keep such record at all times available for examination
by the proper officer;

(c) stack and arrange the goods in the bonded warehouse so as
to permit reasonable access to and examination of every
package at all times;

(d) provide all necessary labour and materials for the storing,
examining, packing, marking, coopering, weighing, and
taking stock, of the warehoused goods whenever the proper
officer so requires;

(e) maintain such records and accounts relating to goods and the
operations of a refinery, in such form and manner, as the
proper officer shall require; and keep such records and
accounts at all times available for examination by the
proper officer.

(2) Where any warehouse keeper contravenes this section, the
Commissioner may direct that no other goods shall be warehoused by
such warehouse keeper until such warehouse keeper has, in the
opinion of the Commissioner, complied with this section.

(3) A warehouse keeper who contravenes any of the provisions of
this section or any direction given by the Commissioner under this
section commits an offence and shall be liable on conviction to a fine
not exceeding one thousand dollars.

57
Ware-
house
keeper to
provide
facilities

No. 1 East African Community Customs Management 2005
Stowage
and stor-
age of
goods in
bonded
ware-
house

Removal
of goods
from pri-
vate to
general
ware-
house

Ware-
house
keeper to
produce
goods
deposi-
ted
65.-(1) The proper officer may direct in what parts or divisions of
any bonded warehouse and in what manner any goods shall be
deposited therein.

(2) Subject to section 51, where any goods have been warehoused
in a bonded warehouse, then, except with the approval of the proper
officer, such goods shall not be moved or interfered with in any way,
nor shall any alteration be made in the marks or numbers of any
package.

(3) A warehouse keeper who contravenes, or who causes or permits
a contravention of, this section commits an offence and shall be liable
to a fine not exceeding one thousand dollars, and any goods in respect
of which any offence under subsection (2) has been committed shall be
liable on conviction to forfeiture.

66.-(1) Where the warehouse keeper of a private bonded warehouse
contravenes any of the provisions of this Act, the proper officer may
require him or her within such time as the proper officer may direct, to
remove all or any of the goods warehoused in such private bonded
warehouse to a general bonded warehouse at the expense of the
warehouse keeper or to enter and deliver them for home consumption,
for exportation, or for use as stores for aircraft or vessels

(2) Where any warehouse keeper contravenes any requirement
given under subsection (1), the proper officer may cause such goods to
be taken to a Customs warehouse and thereupon such goods shall be
dealt with in accordance with section 42.

67.-(1) A warehouse keeper shall, on request, produce to the proper
officer all goods deposited in his or her bonded warehouse.

(2) A warehouse keeper who contravenes subsection (1), in the
absence of satisfactory explanation to the proper officer, commits an
offence and shall be liable on conviction to a fine of ten percent of the
dutiable value in respect of each package not so produced and, in
addition, the warehouse keeper shall forthwith pay the duties in respect
of each such package.

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No. 1 East African Community Customs Management 2005

(3) A warehouse keeper who takes, substitutes, causes or permits
any goods in a bonded warehouse to be taken or substituted commits
an offence and shall be liable to a fine of twenty-five percent of the
dutiable value of the goods substituted or taken.

68. Where any goods are deposited in a Government warehouse,
then they shall be subject to such rent and other charges as may be
prescribed or as may be provided for in this Act; and, if such rent and
other charges are not paid to the proper officer when lawfully
demanded, the goods in respect of which such rent and other charges
are due may be sold, and the proceeds thereof applied, in accordance
with section 42.

69.-(1) Where any goods are deposited in a Government warehouse,
the proper officer may-

(a) remove, at the expense of the Customs, such goods from
that warehouse to another Government warehouse;

(b) perform, in relation to such goods and at the expense of the
owner thereof, all such acts as he or she may consider
reasonably necessary for the proper custody and
preservation of such goods:

Provided that the proper officer shall not, save where
he or she considers immediate action necessary, perform
any such act until twenty-four hours after the owner of
such goods has been notified that any such act is
necessary;

(c) by notice inform the owners of the goods that it is proposed
to close the warehouse at the end of such period, not being
less than three months from the date of such notice, as may
be specified in the notice;

(2) The Commissioner may prescribe the manner in which the
goods deposited in a Government warehouse may be dealt with upon
a warehouse being closed under subsection (1).

59
Goods in
Govern-
ment
ware-
house
liable to
rent, etc.

Removal,
etc., of
goods in
Governm
ent ware-
house

No. 1 East African Community Customs Management 2005

PA RT V
E
XPORTATION

Prohibited and Restricted Exports

Prohibite
d and restricted exports

Power to prohibit, etc., exports

70.-(1) The goods specified in Part A of the Third Schedule are
prohibited goods and the exportation of the goods is prohibited.

(2) The goods specified in Part B of the Third Schedule are restricted
goods and the exportation of the goods, save in accordance with any conditions
regulating their exportation, is prohibited.

71.-(1) The Council may by order published in the Gazette amend the Third
Schedule, and that order may provide that the exportation of any goods, or class
of goods-

(a) is prohibited, either generally or in relation to a Partner
State;

(b) is prohibited, save in accordance with any conditions regulating
their exportation, either generally or in relation to a Partner State.

(2) The Council may, by order, published in the Gazette-
(a) provide that the exportation from a Partner State of any goods or
class of goods shall be prohibited, or shall be prohibited save in
accordance with such conditions as may be specified in such order;

(b) limit in respect of a Partner State the application of the provisions
of the Third Schedule in respect of all or any of the goods specified
therein; and thereupon in respect of such goods the provisions of
this Act shall apply as if such goods are, or are not, as the case may
be, included in the Third Schedule.

(3) An order made under this section may specify goods, or any class of
goods, either generally or in any particular manner and may prohibit or restrict
the exportation thereof either to all places, or to any particular country or place, or
to any particular person.

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2005

72.-(1) Subject to subsection (2), sections 70 and 71 shall not apply
to goods in transit, or for transhipment, or exported as stores of any
aircraft or vessel, unless such goods come within the provisions of
paragraph 2 of Part B the Third Schedule, or are goods of which the
exportation as stores for any aircraft or vessel, is expressly prohibited
or restricted in any order made under this Act prohibiting or restricting
the exportation of goods.

(2) Where under subsection (1), sections 70 and 71 do not apply to
any goods in transit, or for transhipment, or exported as stores for any
aircraft or vessel, then such goods shall be duly exported within such
time as the Commissioner may specify; and if such goods are not so
exported, then as from the last date on which they should have been
exported, they shall be deemed to be prohibited goods or restricted
goods, as the case may be.

Entry Outwards and Loading of Aircraft and Vessels
73.-(1) Save as otherwise provided in the Customs laws, the whole
of the cargo to be loaded for export on any aircraft or vessel shall be
entered by the owner of such cargo in the manner prescribed.

(2) Where any owner delivers an entry under this section he or she
shall furnish, therewith to the proper officer full particulars, supported
by documentary evidence, of the goods referred to in the entry.

(3) A person who contravenes this section commits an offence and
any goods in respect of which such offence has been committed shall
be liable to forfeiture.

74.-(1) The master or agent of every aircraft or vessel in which any
goods are to be exported shall make entry outwards of such aircraft or
vessel to the proper officer on the prescribed form and in the
prescribed manner

(2) Save with the permission of the proper officer-
(a) no such entry outwards of an aircraft or vessel referred to in
subsection (1) shall be made before the whole of the cargo
reported in such aircraft or vessel for discharge has been
discharged;

61
Exem-
ption of
goods in
transit,
etc.

Entry of
cargo for
export

Entry
outwards
of
aircraft
or vessel

No. 1 East African Community Customs Management 2005

(b) goods shall not be loaded on such aircraft or vessel before
entry outwards referred to in subsection (1)is made.

(3) Any master or agent who contravenes subsection (1), and any
master who permits any goods to be loaded contrary to subsection (2),
commits an offence.

Loading,
etc. 75.-(1) Save with the written permission of the proper officer and
subject to such conditions as he or she may impose-

(a) goods shall not be put on board any aircraft or vessel
departing to a foreign port unless such goods have first been
duly entered;

(b) goods shall not be put on board any aircraft or vessel
departing to a foreign port at any time except as may be
prescribed by the Commissioner;

(c) goods shall not be put on board any such aircraft or vessel
departing to a foreign port except from an approved place
of loading or from a sufferance wharf:

Provided that-

(i) goods may be put on board any such aircraft or vessel
from another aircraft or vessel on to which they had
been put on board in order to be loaded on to such
aircraft or vessel;

(ii) with the permission of the proper officer and subject
to such conditions as he or she may impose, goods
reported for transhipment may be loaded on to such
aircraft or vessel from another vessel;

(d) goods shall not be put on board any vessel departing to a for-
eign port before entry outwards of such vessel;

(e) goods shall not be put on board any vessel to be loaded on
to any aircraft or other vessel departing to a foreign port if
such goods may not, under the provisions of this subsection,
be directly put on board such aircraft or other vessel;

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No. 1 East African Community Customs Management 2005

(f) goods put on board any vessel to be loaded on to any aircraft
or other vessel departing to a foreign port shall be so loaded
within the limits of the port.

(2) A person who contravenes this section, or any of the conditions
which may have been imposed by the proper officer, commits an
offence and any goods in respect of which such offence has been
committed shall be liable to forfeiture.

76.-(1) Notwithstanding section 75, the proper officer may, subject
to any regulations, permit-

(a) goods which are the bona fide personal baggage of the
passenger, or members of the crew, of any aircraft or vessel
to be put on board such aircraft or vessel and exported
without entry;

(b) goods intended for sale or delivery to passengers, or
members of the crew, of any aircraft or vessel to be put on
board such aircraft or vessel, subject to such conditions as
he or she may impose, without entry;

(c) mail bags and postal articles in the course of transmission by
post to be put on board and exported without entry;

(d) goods to be put on board any aircraft or vessel departing to
a foreign port without entry subject to an application being
made by the owner on the prescribed form and in the
prescribed manner and to an undertaking being given by the
owner of such goods to furnish the necessary entry within
forty-eight hours, or such further time as the proper officer
may specify, of the departure of the aircraft or vessel and to
such security, if any, being given by such owner for the due
payment of any export duties as the proper officer may
consider appropriate.

(2) A person who-

(a) contravenes any conditions imposed under subsection (1)
(b); or

63

Provisi-
ons rela-
ting to
personal
baggage

No. 1 East African Community Customs Management 2005

(b) contravenes any undertaking given under subsection(1) (d),
commits an offence and any goods in respect of which
such offence has been committed shall be liable to
forfeiture.
Goods
for
export
not to be
dis-
charged
in
Partner
States

Provisi-
ons rela-
ting to
export of
certain
goods
77.-(1) Goods which have been put on board any aircraft or vessel
for export, or for use as stores, or as passengers’ baggage, shall not,
save with the written permission of the proper officer and in
accordance with such conditions as he or she may impose, be
discharged at any place within the Partner States.

(2) A person who contravenes this section, or any such conditions
imposed by the proper officer, commits an offence and any goods in
respect of which such offence has been committed shall be liable to
forfeiture.

78.-(1) Before any-
(a) warehoused goods; or
(b) goods on which duty drawback may be claimed; or
(c) dutiable goods intended for transhipment; or

(d) restricted goods,may be entered for exportation, for
transhipment, or for use as stores for aircraft or vessels the
proper officer may require the owner of such goods to give
security, in such amount and subject to such conditions as
he or she may deem fit, that such goods shall be duly put on
board the aircraft or vessel for which they are entered and
either duly exported to and discharged at the place for
which they are so entered, or used as stores, as the case may
be, within such time as he or she may specify.

(2) All goods in respect of which security is required under this
section, in this section referred to as bonded goods, shall, after being
put on board, be duly exported to and discharged at the place for which
they are entered, or used as stores for aircraft or vessels, as the case
may be.

(3) The proper officer may require the owner of any bonded goods

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No. 1 East African Community Customs Management 2005

which have been put on board any aircraft or vessel for exportation to
any place to produce, within such time as the proper officer may
consider reasonable, a certificate from the customs authorities at the
port of discharge of the due discharge thereat of the goods according
to the export entry; and if owner fails to produce the certificate, or if
the certificate does not show that the goods have been duly discharged
thereat according to the export entry, and the owner fails to account for
any such goods to the satisfaction of the proper officer, then the
proper officer may refuse to allow the owner to enter for export and to
export any other goods in respect of which security may be required
under this section.

(4) Where any bonded goods –

(a) are short-shipped, the owner thereof shall so notify the
proper officer within twenty-four hours, or such further
time as the proper officer may allow, of the departure of the
aircraft or vessel;

(b) have been removed from a warehouse for delivery on board
any aircraft or vessel but are not put on board such aircraft
or vessel, the owner shall forthwith enter the goods for
warehousing, or for exportation, or for use as stores for
aircraft or vessels.

(5) Where any bonded goods are brought to any Customs airport,
Customs area, or other place, to be put on board any aircraft or vessel
and, on examination by the proper officer, are found-

(a) not to agree with the particulars of the entry;

(b) being goods under duty drawback, not to be goods entitled
to drawback, the owner of such goods commits an offence
and any goods in respect of which such offence has been
committed shall be liable to forfeiture.

(6) An owner who-

(a) contravenes any condition imposed on him or her under this
section in respect of any bonded goods; or

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No. 1 East African Community Customs Management 2005

(b) contravenes subsection (4), commits an offence and any
goods in respect of which such offence has been committed
shall be liable to forfeiture.

(7) Where any master contravenes, or causes or permits the
contravention of, subsection (2), he commits an offence and shall be
liable on conviction to a fine not exceeding five thousand dollars or to
imprisonment for a term not exceeding three years and any goods in
respect of which such offence has been committed shall be liable to
forfeiture.
Stores
for
aircraft
and
vessels

Short
shipment
of non-
bonded
goods

Export
goods
stored at
risk of
owner
79.-(1) The proper officer may, on application being made on the
prescribed form and in the prescribed manner by the master or agent of
any aircraft or vessel departing to a foreign port, permit any goods to
be put on board any such aircraft or vessel, for use as stores subject to
the payment of any export duty and to such conditions as the proper
officer may deem fit.

(2) A person who puts, or causes or permits to be put, any goods on
board any aircraft or vessel for use as stores in contravention of this
section, or of any conditions imposed by the proper officer, commits
an offence and any goods in respect of which such an offence has been
committed shall be liable to forfeiture.

80.-(1) Where any goods, other than bonded goods within the
meaning of section 78, are entered for exportation and such goods are
not exported in the aircraft or vessel for which they were entered or are
short-shipped, the owner of the vessel or aircraft in which the goods
are intended to be exported shall notify the proper officer within
forty-eight hours, or such further time as the proper officer may allow,
of the departure of the aircraft or vessel.

(2) An owner who contravenes this section commits an offence and
shall be liable on conviction to a fine not exceeding five hundred
dollars.

81. Where any goods are, with the permission of the proper officer,
stored in a transit shed or a Customs area pending exportation or
transhipment or while in transit-

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No. 1 East African Community Customs Management 2005

(a) the goods shall be subject to such rent and other charges as
may be prescribed; and

(b) notwithstanding section 17, the goods shall be stored at the
risk of the owner.

82.- (1) Where any goods are liable on export to any duty, the
amount of such duty shall be stated on the export entry of the goods.

(2) Goods liable on export to any duty shall not be exported until the
export duty has been paid or security therefore given to the satisfaction
of the proper officer.

(3) Where any goods liable on export to any duty are brought to any
Customs airport, Customs area, or other place, to be put on board any
aircraft or vessel and, on examination by the proper officer, are found
not to agree with the particulars of the entry, or application for
shipment relating thereto, the owner of such goods commits an offence
and any goods in respect of which such offence has been committed
shall be liable to forfeiture.

(4) Subject to the provisions of any law in force in a Partner State,
export duty shall not be levied on the exportation from the Partner
State of any goods grown, produced, or manufactured, in another
Partner State; and such goods shall on exportation, be subject at the
place of exportation only to the export duty, restrictions and conditions
imposed under the law of the Partner State in which they were grown,
produced, or manufactured.

Departure Overland
83.- (1) A person in charge of a vehicle, departing overland from a
Partner State shall not, whether or not such vehicle is conveying goods
and whether or not such goods are dutiable, except where otherwise
permitted by the proper officer, cause or allow the vehicle to depart
from a Partner State at any place other than at a port appointed under
section 11, and before departing shall-

(a) report his or her intended departure to the officer stationed
at the Custom house nearest to the point at which he or she
proposes to cross the frontier;

67
Goods
liable to
export
duty

Vehicles
departing
overland

No. 1 East African Community Customs Management 2005

(b) furnish on the prescribed form such information as may be
required concerning the vehicle or any such goods;

(c) fully and immediately answer all relevant questions put to
him or her by the proper officer;

(d) produce any consignment notes or other relevant documents
demanded of him or her by the proper officer;

(e) save as otherwise provided in the Customs laws, make due
entry of the vehicle and of any such goods.

(2) Vehicles or goods to which this section applies shall not, except
under and in accordance with the terms of any permission granted by
the proper officer, be removed across the frontier until after due entry
thereof has been made.

(3) A person who contravenes this section commits an offence and
any goods in respect of which such offence has been committed shall
be liable to forfeiture.

Depar-
ture
overland
other-
wise
than by
vehicle 84.-(1) A person departing overland from a Partner State shall, if he
or she has any goods in his or her possession, before crossing the
frontier-

(a) report his or her intended departure to the proper officer
stationed at the Customs house nearest to the point at which
he or she proposes to cross the frontier;

(b) furnish on the prescribed form such information as may be
required concerning any such goods;

(c) fully and immediately answer all relevant questions put to
him or her by the proper officer;

(d) produce all consignment notes or other relevant documents
demanded of him or her by the proper officer;

(e) save as otherwise provided in Customs laws, make due
entry of any such goods.

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No. 1 East African Community Customs Management 2005

(2) The proper officer may stop and question any person, whether or
not he or she has goods in his or her possession, appearing to be about
to depart overland from a Partner State, and that person shall fully and
immediately answer all such relevant questions concerning his or her
movements and any goods in his or her possession as may be put to
him or her.

(3) Goods to which this section applies shall not, except under and
in accordance with the terms of any permission granted by the proper
officer, be removed across the frontier until after entry of the goods has
been made.

(4) The Commissioner may, subject to such conditions as may be
specified, exempt any person or class of persons from the provisions
of this section.

(5) A person who contravenes any of the provisions of this section
commits an offence and any goods in respect of which such offence
has been committed shall be liable to forfeiture.

Goods in Transit or for Transhipment
85.-(1) The Commissioner may allow imported goods that are
entered for transit or transhipment, to be removed under Customs
control without payment of import duties, subject to such conditions as
the Commissioner may prescribe.

(2) Where goods are entered under subsection (1) the Commissioner
may require the owner of such goods to furnish security in the
prescribed form and in such amount as the Commissioner may deem
fit.

(3) Subject to any regulations, the provisions of this Act relating to
the importation, prohibition, entry, examination, landing, and
exportation, of goods shall, so far as they are applicable, apply to
goods in transit to a foreign port.

(4) The provisions of this Act relating to the importation,
prohibition, declaration, examination, landing, warehousing, and
exportation, of goods shall, so far as they are applicable, apply to
goods transhipped from the aircraft or vessel in which they are
imported to the aircraft or vessel in which they are to be exported.

69

Treat-
ment of
goods
under
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and tran-
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No. 1 East African Community Customs Management 2005

Control
of entry

Termina- tion of transit proce- dure

Cleara- nce required for departure to for- eign port

Grant of clearance

86. The Commissioner, may in the public interest or for the
protection of public morality, safety, health or hygiene, or animal or plant
health prohibit, restrict or otherwise control the entry of certain goods or means
of transport from entering a Partner State.

87. Transit may be terminated by presenting the goods and the relevant
entries at the office of destination within the time limit specified by the
Commissioner, without the goods having undergone any change and without
having been used, and with the Customs seals, fastenings and identification marks
intact.

PA RT V I
D
EPARTURE AND CLEARANCE OF AIRCRAFT AND VESSELS

88.-(1) An aircraft or vessel, whether laden or in ballast, shall not depart
from any port or place in a Partner State to any foreign port unless a
certificate of clearance has been granted in respect of such aircraft or vessel.

(2) The master or agent of any aircraft or vessel which departs from any port or
place within a Partner State in contravention of subsection
(1) commits an offence.

89.-(1) The master or agent of every aircraft or vessel, whether laden or in
ballast, proposing to depart to any foreign port shall apply
to the proper officer for a certificate of clearance.

(2) Where application for a certificate of clearance is made, then the proper
officer shall not grant such certificate of clearance until he or she is satisfied
that all the provisions of this Act in relation to the aircraft or vessel, its cargo,
stores, baggage, crew, and passengers, have been complied with:

Provided that the proper officer may, by reason of the provi- sions of
any other law, refuse to grant such certificate of clearance
notwithstanding that he or she may be satisfied that this Act has been
complied with.

(3) Where the master or agent of any aircraft, or of any vessel of less than two
hundred and fifty tons register, makes application for a certificate of
clearance, then he or she shall at the same time-

70

2005

(a) deliver to the proper officer an outward manifest on the
prescribed form and in the prescribed manner;

(b) produce to the proper officer all such documents as the proper
officer may require relating to such aircraft or vessel and its cargo,
stores, baggage, crew, and passengers;

(c) answer all questions which the proper officer may ask relating to
such aircraft or vessel and its cargo, stores, baggage, crew, and
passengers.

(4) Where the master or agent of any vessel of two hundred and fifty
tons register or more makes application for a certificate of clearance,
then the proper officer may grant such clearance subject to an
undertaking by such master or agent to deliver to the proper officer,
within twenty-four hours of the grant of such certificate of clearance,
the outward manifest of such vessel in the prescribed form and in the
prescribed manner, and to answer all such questions as he or she may
be asked relating to such vessel, its cargo, stores, baggage, crew, and
passengers.

(5) Where any aircraft or vessel proposes to depart to a foreign port
in ballast, then such aircraft or vessel shall be cleared in ballast, that is
to say, the words “in ballast” shall be written in those parts of the forms
relating to such aircraft or vessel which contain provisions for the
particulars of its cargo; and for the purpose of this subsection, an
aircraft or vessel shall be deemed to be in ballast when such aircraft or
vessel carries, in addition to the crew and its stores, only passengers
and their bona fide personal baggage.

(6) The proper officer may permit the master or agent of any aircraft
or vessel to amend any obvious error in the outward manifest, or to
supply any omission which, in the opinion of the proper officer, results
from accident or inadvertence, by furnishing an amended or
supplementary outward manifest in the prescribed manner.

(7) Where any certificate of clearance has been granted but the
aircraft or vessel in respect of which it was granted has not left the
limits of the port in which it was granted, then the proper officer may
inform, either orally or in writing, the master of such aircraft or vessel

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No. 1 East African Community Customs Management 2005

that such certificate of clearance has been cancelled and may require
the return of such certificate, and thereupon such certificate shall be
deemed never to have been granted.

(8) A master or agent who contravenes any undertaking given under
subsection (4), or who refuses to return any certificate of clearance
when required to do so under subsection (7), commits an offence.
Cleara-
nce cer-
tificate
to be
produced

Defici-
ency or
surplus
in cargo
or stores
90.-(1) An officer may board any aircraft or vessel in a Partner State
after clearance and require the master thereof to produce
such certificate of clearance and to answer any questions relating to
such aircraft or vessel, its cargo, stores, baggage, crew, and
passengers.

(2) The master of any aircraft or vessel who fails to produce such
certificate of clearance on demand commits an offence.

91.-(1) Where, on any aircraft or vessel being boarded by the
proper officer, any goods or stores which are not contained in the man-
ifest of such aircraft or vessel are found on such aircraft or vessel, then
the master thereof commits an offence and any goods in respect of
which such offence has been committed shall be liable to forfeiture.

(2) Where, on any aircraft or vessel being boarded by the proper
officer, any goods which were reported on the arrival of such aircraft
or vessel as remaining on board for other ports in a Partner State, or for
re-exportation, or as stores, or which after arrival were put on board for
removal under bond to another port in a Partner State, or for
exportation or use as stores, are not on board, due allowance being
made in the case of stores for any goods which might fairly have been
consumed or used, then the master of such aircraft or vessel commits
an offence.

(3) Where, on any aircraft or vessel being boarded by the proper
officer after its return to a Partner State from a voyage to a foreign port,
any goods which on the previous arrival of such aircraft or vessel were
reported as stores or were then put on board as stores are not on board,
due allowance being made for any goods which might fairly have been
consumed or used, the master of such aircraft or vessel commits an
offence and shall be liable to a fine of ten percent of the value of the
goods and to pay the duties on the deficiency of the goods at the rate
chargeable upon importation of similar goods.

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No. 1 East African Community Customs Management 2005

92.-(1) The master of every aircraft or vessel departing to a foreign
port shall bring to, at the boarding station for the purpose of
disembarking any officer on such aircraft or vessel, or for any other
purpose of this Act, or when required so to do by the proper officer.

(2) A master of an aircraft or vessel who contravenes this section
commits an offence.

PA RT V I I
I
MPORTATION AND EXPORTATION BY POST
93.-(1) This Act shall apply to the importation, exportation, and
carriage coastwise, of postal articles:

Provided that-
(i) postal articles may be entered at such place and in
such manner as the Commissioner may direct;
(ii) any provision of this Act may, in its application to
postal articles, be modified or adapted by regulations.

(2) An officer, or any officer in the service of the Post Office, who,
in the performance of any duty under this Act, examines or seizes any
postal article shall be subject in all respects to this Act and such article
shall be dealt with in accordance with this Act.

(3) This section shall be in addition to, and not in derogation of any
law on postal services in the Partner States.

94. In the case of goods-
(a) imported by post, the time of entry of such goods for home
consumption shall, except in the case where actual entry is
required, be deemed to be the time when the duty on the
goods is assessed by the proper officer;

(b) exported by post, the time of entry of the goods for export
shall be deemed to be the time of the posting of the goods.

95. The Commissioner may allow registered courier companies to
land, store and enter goods under customs control subject to such
conditions as may be prescribed by regulations.

73
Aircraft
or vessel
to bring
to at
boarding
station

Applica-
tion of
Act to
postal
articles

Time of
entry of
postal
articles

Registe-
red
courier
compa-
nies to
land,
store,

No. 1 East African Community Customs Management 2005

PART VIII
C
ARRIAGE COASTWISE AND TRANSFER OF GOODS
Power to
prohibit
and
restrict
carriage
coast-
wise and
transfer 96.-(1) The Council may, by order published in the Gazette, provide
that the carriage coastwise or transfer of any goods, or class of goods-

(a) is prohibited either generally or in relation to a Partner State,
and thereupon such goods shall, for the purpose of carriage
coastwise or transfer, be prohibited goods;

(b) is prohibited, save in accordance with any conditions
regulating their carriage coastwise or transfer, either
generally or in relation to a Partner State, and thereupon
such goods shall, for the purpose of carriage coastwise or
transfer, be restricted goods.

(2) The Council may, by order published in the Gazette-

(a) provide that the carriage coastwise within a Partner State of
any goods or class of goods shall be prohibited save in
accordance with such conditions as may be specified in
such order;

(b) limit in respect of a Partner State the application of any
order made under subsection (1) in respect of all or any of
the goods specified therein, and thereupon within a Partner
State and in respect of such goods the provisions of this Act
shall apply as if such goods are or are not, as the case may
be, included in any order made under subsection (1).

(3) Subject to this Act and to any order made under this section,
where any goods are prohibited goods or restricted goods in relation to
importation or exportation, they shall also be prohibited goods or
restricted goods, as the case may be, in relation to carriage coastwise
or transfer.

(4) Where, under any law in any of the Partner States, the carriage
coastwise or transfer within the Partner State is prohibited or
restricted, then such goods shall be deemed to be prohibited goods or
restricted goods, as the case may be, in relation to their carriage coast-
wise or transfer within that Partner State.

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No. 1 East African Community Customs Management 2005

97.-(1) Subject to section 98, all goods conveyed by sea or air, from
any part of a Partner State to another part thereof shall be deemed to
be carried coastwise, and any aircraft or vessel conveying such goods
by air or by sea shall be deemed to be a coasting aircraft or coasting
vessel, as the case may be.

(2) All goods, including locally grown or locally produced goods,
conveyed by any means from any place in a Partner State to any place
in another Partner State shall be deemed to be goods transferred and
such goods shall be subject to regulations made under this Act.

(3) For the purposes of this section, the conveyance of goods by sea
shall be deemed to include conveyance by inland waters:Provided that
this subsection shall not apply to goods in transit or for transhipment
nor to goods entered for warehousing, nor to goods consigned directly
from a foreign place to a Partner State other than that at which the
aircraft or vessel conveying the goods first arrives.

98.-(1) When any aircraft or vessel carrying cargo arrives at a port
in a Partner State from a foreign place, the proper officer may permit
such aircraft or vessel to carry goods coastwise from such port to
another port within a Partner State, or to carry goods on transfer from
such port to a port in another Partner State, upon the presentation by
the master of an entry as set out in section 100.

(2) Where under subsection (1) an aircraft or vessel conveys goods
from one port in a Partner State to another port in the same Partner
State, such an aircraft or vessel shall not by virtue thereof be deemed
to be a coasting aircraft or coasting vessel within the meaning of this
Act.

(3) When any goods are carried coastwise or are transferred under
the provisions of this section, then the loading, unloading and delivery
of the goods shall be subject to any regulations and to such conditions
as the Commissioner may impose.

99.-(1) Save with the written permission of the proper officer and
subject to such conditions as the proper officer may impose-
(a) goods shall not be loaded, on or unloaded from, any aircraft
or vessel for carriage coastwise at any time whatsoever,
except as prescribed by the Commissioner;

75
Meaning
of carri-
age
coast-
wise and
transfer

Carriage
coast-
wise or
transfer
in an air-
craft or
vessel
from
foreign
port

Loading,
etc., of
coast-
wise and
transfer
cargo

No. 1 East African Community Customs Management 2005

(b) goods for carriage coastwise or transfer shall not be
unloaded from or loaded on to any aircraft or vessel except
at an approved place of loading or at a sufferance
wharf:Provided that goods may be unloaded from any such
aircraft or vessel, or loaded on to any such aircraft or
vessel, on to or from any other vessel or vehicle used for the
purpose of the carriage of goods between such aircraft or
vessel and an approved place of landing or sufferance
wharf;

(c) all goods which have been unloaded or landed from a
coasting vessel or a coasting aircraft shall, if the proper
officer so requires, be conveyed forthwith to a Customs area
or transit shed;

(d) all goods which have been transferred by road shall, if the
proper officer so requires, be conveyed forthwith, to a
Custom house or to such other place as the proper officer
may direct.

(2) A person who contravenes this section, or any of the conditions
which may have been imposed by the proper officer, commits an
offence and shall be liable on conviction to a fine not exceeding two
hundred and fifty dollars; and any goods in respect of which such
offence has been committed, and any vehicle in which such goods
were transferred shall be liable to forfeiture and any coasting aircraft
or coasting vessel in relation to which such offence has been
committed may be seized and detained until the fine is paid.

Transire
required
for
departure
coast-
wise and
transfer 100.-(1) Coasting aircraft or coasting vessel, or any aircraft or
vessel which is carrying goods coastwise or goods for transfer in
accordance with section 98, shall not depart from any port or place
within a Partner State unless transire has been granted by the proper
officer.

(2) The master or agent of any aircraft or vessel to which subsection
(1) applies intending to depart coastwise or carrying goods for transfer,
shall deliver to the proper officer an account in triplicate on the
prescribed form containing the particulars of all cargo taken on board
for carriage coastwise or for transfer; and the original thereof, dated

76

No. 1 East African Community Customs Management 2005

and signed by the proper officer, shall constitute the grant of transire
for the carriage of the goods specified therein and shall, in the case of
a coasting aircraft or coasting vessel, be the certificate of clearance for
such aircraft or vessel for the coastwise voyage.

(3) A master or agent who contravenes this section, or who delivers
an account of which any of the particulars contained therein is false,
commits an offence and shall be liable on conviction to a fine not
exceeding five hundred dollars and the coasting aircraft or coasting
vessel in relation to which such offence has been committed may be
seized and detained until the fine is paid.

101.-(1) The master or agent of any aircraft or vessel arriving at a
port or place within a Partner State carrying goods coastwise or goods
for transfer-

(a) shall forthwith deliver the transire to the proper officer of
that port or place;

(b) shall not, save with the permission of the proper officer and
subject to such conditions as the proper officer may impose,
permit any goods to be unloaded before the delivery of the
transire:
Provided that in the case of a vessel of two hundred and
fifty tons register or more, such transire may be delivered
within twenty-four hours of arrival and the goods may be
unloaded therefrom before the delivery of such transire.

(2) A master or agent who contravenes this section commits an
offence and shall be liable to a fine not exceeding five hundred dollars
and any goods in respect of which such offence has been committed
shall be liable to forfeiture, and the coasting aircraft or coasting vessel
in relation to which such offence has been committed may be seized
and detained until the fine is paid.

102. -(1) Notwithstanding any provision of this Act, the
Commissioner may permit any coasting aircraft or coasting vessel to
be loaded, unloaded, and cleared, subject to such conditions as the
Commissioner may in any particular case impose.
(2) The master or agent of any coasting aircraft or coasting vessel

77
Transire
to be
delivered
on
arrival

Power of
Commis
sioner to
vary
procedure

No. 1 East African Community Customs Management 2005

Entry
outwards
of
aircraft,
etc.,
carrying
goods
coast-
wise

Coasting
vessel,
etc., not
to
deviate
from
voyage

Exami-
nation of
coasting
vessel
and
goods
who contravenes any conditions imposed by the Commissioner under
this section commits an offence and shall be liable to a fine not
exceeding one thousand five hundred dollars and any goods in respect
of which such offence has been committed shall be liable to forfeiture,
and the aircraft or vessel in relation to which such offence has been
committed may be seized and detained until the fine is paid.

103. The Commissioner may, subject to such conditions as he or she
may impose, permit the master or agent of any aircraft or vessel
carrying any goods coastwise to enter outwards such aircraft or vessel
and to enter any goods carried coastwise therein for exportation
without discharging such goods.

104. The master or agent of any coasting aircraft or coasting
vessel-

(a) which deviates from its voyage, unless forced to do so by
circumstances beyond the control of the master or agent, the
proof whereof shall lie on the master or agent; or

(b) which, having deviated from its voyage or having taken on
board any wreck or other goods or discharged any goods in
the course of a voyage from one part of the Partner States to
another, does not forthwith proceed directly to the nearest
port in the Partner States and explain the circumstances
thereof to the satisfaction of the proper officer and deliver
any such wreck or other goods taken on board to the
proper officer,

commits an offence and any goods in respect of which such offence
has been committed shall be liable to forfeiture, and the aircraft or ves-
sel in relation to which such offence has been committed may be
seized and detained until the fine is paid.

105.-(1) An officer may go on board any coasting aircraft or
coasting vessel in any port or place in a Partner State or at any period
of the voyage of such aircraft or vessel, and search such aircraft or
vessel and examine all goods on board such aircraft or vessel.

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No. 1 East African Community Customs Management 2005

(2) Where any such officer goes on board any coasting aircraft or
coasting vessel he or she may require the master or agent thereof to
answer any questions concerning the aircraft or vessel, its cargo,
stores, baggage, crew, and passengers, and to produce any books and
documents which are, or should be on board the aircraft or vessel.

(3) An officer may examine any goods which have been unloaded
from any aircraft or vessel after carriage coastwise or which are
brought to any port or place to be loaded onto any aircraft or vessel for
carriage coastwise in a Partner State; and for the purposes of the
examination the officer may require the owner of the goods to unpack
or open and to repack the goods at the expense of the owner.

(4) A master who-
(a) refuses to answer any question or to produce any books or
documents as required by an officer under subsection (3); or

(b) makes any incorrect reply to any such question,commits an
offence and shall be liable on conviction to a fine not
exceeding two hundred and fifty dollars and the aircraft or
vessel in relation to which the offence has been committed
may be seized and detained until the fine is paid.

PA RT I X
P
ROVISIONS RELATING TO SECURITIES
106. The Commissioner may require any person to give security for
the due compliance by that person with this Act and generally for the
protection of the Customs revenue; and, pending the giving of such
security in relation to any goods subject to Customs control, the
Commissioner may refuse to permit delivery or exportation of such
goods or to pass any entry in relation thereto.

107.-(1) Where any security is required to be given under this Act,
then that security may be given to the satisfaction of the Commissioner
either-

(a) by bond, in such sum and subject to such conditions and
with such sureties as the Commissioner may reasonably
require; or

79
Commi-
ssioner
may
require
security

General
provi-
sions
relating
to giving
of
security

No. 1 East African Community Customs Management 2005

(b) by cash deposit; or

(c) partly by bond and partly by cash deposit.

(2) Where any security is required to be given under this Act for any
particular purpose then such security may, with the approval of the
Commissioner be given to cover any other transactions which the
person giving the security may enter into within such period as the
Commissioner may approve.

(3) All bonds required to be given under this Act shall be so framed
that the person giving the bond, and any surety thereto, is bound to the
Commissioner for the due performance of the conditions of that bond;
and any such bond may, unless sooner discharged by the due
performance of the conditions thereof, be discharged by the
Commissioner on the expiration of three years from the date thereof,
but without prejudice to the right of the Commissioner to require fresh
security.

(4) Where any bond given under this Act is discharged, then the
Commissioner shall cause such bond to be cancelled and an
endorsement to that effect made thereon.

Provisi-
ons rela-
ting to
sureties 108.-(1) Without prejudice to any rights of a surety to any bond
given under this Act against the person for whom he or she is surety, a
surety shall, for all the purposes of any bond, be deemed to be the
principal debtor and accordingly the surety shall not be discharged, nor
his or her liability affected, by the giving of time for payment, or by
the omission to enforce the bond for any breach of any conditions
thereof, or by any other act or omission which would not have
discharged the bond if he or she had been the principal debtor.

(2) If a person being a surety-

(a) dies; or

(b) becomes bankrupt or enters into any arrangement or
composition with, or for the benefit of, his or her creditors;
or

80

No. 1

East African Community Customs Management

2005

(c) departs from a Partner State without leaving sufficient
property therein to satisfy the whole amount of the bond;

(d) otherwise ceases to have capacity to honour the surety,the
Commissioner may require the person giving the bond to
enter into fresh security.

109.-(1) Where the conditions of any bond have not been complied
with the Commissioner may by notice in writing require the person
who has given security under it to pay to him or her the amount of the
security within fourteen days of the notice; and on failure to comply
with the notice, the Commissioner may enforce payment of the
security as though it were duty due and unpaid.

(2) Nothing in this section shall, unless the Commissioner otherwise
allows, discharge the person who has given security under section 108
from the obligations entered into by him or her under this Act or under
any other law.

PA RT X
D
UTIES
Liability to Duty
110.-(1) Duty shall be paid on goods at the rate and in the
circumstances specified in the Protocol.

(2) Where under the provisions of the appropriate legislation goods
are liable to duty on leaving a Partner State, whether or not such goods
are intended for exportation from a Partner State, this Act shall apply
as if such goods on so leaving the Partner State were exported.

111 .-(1) Goods originating from the Partner States shall be
accorded Community tariff treatment in accordance with the Rules of
Origin provided for under the Protocol.

(2) Customs shall require production of a Certificate of Origin and
other documents as proof of origin on goods referred to in subsection
(1) above.

81
Enforce-
ment of
bond

Rates
etc., of
duty

Commu-
nity
Ta r i f f
Treat-
ment

No. 1 East African Community Customs Management 2005

Preferent
ial tariff
treatment
under
COME-
SA,
SADC

Exemp-
tion from
duty of
goods
remain-
ing on
board
Exemp-
tions
regime

Exemp-
tion from
import
duty of
goods
entered
for
exporta-
tion, etc
112.-(1) Preferential tariff treatment shall be applied to goods-
(a) imported under the COMESA and SADC arrangements in
the Partner States as prescribed in the Partner States’
legislation;

(b) imported under any other tariff arrangement that may be
approved by the Council.

(2) Preferential tariff treatment shall not be applied to goods
referred to in subsection (1) (a) after 31st December, 2006.

11 3 . Subject to the provisions of the Customs laws, goods
remaining on board and exported in the aircraft or vessel in which they
were imported, whether as stores or otherwise, shall be exempt from
liability to import or export duties.

114.-(1) Duty shall not be charged on the goods listed in Part A of
the Fifth Schedule to this Act, when imported, or purchased before
clearance through the Customs, for use by the person named in that
Part in accordance with any condition attached thereto as set out in that
Part;

(2) Duty shall not be charged on the goods listed in Part B of the
Fifth Schedule to this Act when imported in accordance with any
condition attached thereto as set out in that Part.

(3) The Council may by notice in the Gazette amend the Fifth
Schedule.

115. Subject to the provisions of the Customs laws, goods entered
under bond-

(a) for exportation, for re-exportation, for transhipment, or in
transit; or

(b) for use as stores for aircraft or vessel,and proved to the
satisfaction of the Commissioner to have been duly
exported or used as such stores, as the case may be, shall be
exempt from liability to import duties.

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No. 1 East African Community Customs Management 2005

116.-(1) Subject to the provisions of the Customs laws, where any
goods which are liable to import duty have been exported from and are
subsequently re-imported into a Partner State, then, the Commissioner
if satisfied-

(a) that any import duty to which the goods were liable prior to
their exportation has been paid and either-

(i) duty drawback or refund of such import duty was not
allowed on exportation; or

(ii) if allowed, such duty drawback has been repaid to the
proper officer; and(b) that such goods have not been
subject to any process after being so exported, or, if so
subjected to any such process, that their form or
character has not been changed and that such goods at
the time of re-importation are not liable to duty ad
valorem; and

(c) that the owner of such goods prior to such exportation gave
notice of the exportation in writing to the proper officer and
produced the goods for inspection by him or her at the port
or place from which they were exported,the goods shall,
save as otherwise provided in the Customs laws, be exempt
from liability to import duties:

Provided that the Commissioner may in any particular
case direct that this section shall apply to any goods
notwithstanding that paragraph (c) has not been
complied with if the Commissioner is satisfied that a
failure so to direct would involve hardship.

(2) In the case of any goods to which subsection (1) would apply but
for the fact that at the time of re-importation they are liable to duty,
such goods shall on re-importation be chargeable with duty as if the
value of such goods were only the amount of the increase in value
attributable to any such process; and for the purpose of ascertaining
such increase in value, any sum paid for the execution of any such
process shall, unless the Commissioner in his or her discretion
otherwise directs, be taken to be the amount of such increase.

83
Exemp-
tion from
import
duty of
certain
re-
imports

No. 1 East African Community Customs Management 2005
Exemp-
tion from
import
duty of
tempo-
rary
imports 117.-(1) Subject to the provisions of the Customs laws, goods
imported in accordance with this section for a temporary use or
purpose only shall be exempt from liability to import duties.

(2) Goods shall not be exempt from liability to import duties under
this section unless the proper officer has given permission for such
importation; and the proper officer shall not give such permission-

(a) unless he or she is satisfied that the goods are imported for
temporary use or purpose only; and

(b) unless the owner thereof has deposited, or given security
for, the amount of the import duty to which the goods would
otherwise be liable.

(3). Where the proper officer gives permission for the importation
of any goods under this section, he or she may impose such conditions
as the proper officer deems fit and such goods shall be exported
within such period, not exceeding twelve months from the date of
importation, as is consistent with the purpose for which the goods are
imported.

(4) Where the conditions of the importation of goods have been
complied with then, on the exportation of the goods any deposit or
security given under subsection (2) shall be refunded or discharged, as
the case may be.

(5) Where the conditions of the importation of the goods have been
contravened then the goods shall become liable to duty, as from the
date of their importation and the owner shall be required to pay duty
and on payment of the duty any deposit given under subsection (2)
shall be brought into account or, if security was given, security shall be
discharged.

(6) Save where goods are allowed to remain in a Partner State under
subsection (5)-

(a) an importer who fails to export temporarily imported goods
at the end of the period specified in subsection (3); or

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No. 1 East African Community Customs Management 2005

(b) a person who sells, alters or re-places or otherwise modifies
the goods or part thereof;

commits an offence and is liable, on conviction, to a fine equal to
twenty percent of the dutiable value and any goods which are the
subject of the offence, shall be liable to forfeiture.

(7) The Council may, by notice in the Gazette, declare that the goods
specified in the notice shall not be imported in accordance with this
section, or declare that the goods may be imported subject to
proportion of duty.

118. Goods brought or coming into a Partner State by sea otherwise
than as cargo, stores, or baggage, carried in a vessel shall be liable to
duty and to the provisions of the Customs laws as if they were goods
imported in the normal manner; and, if any question arises as to the
origin of such goods, they shall be deemed to be the produce of such
country as the Commissioner may on investigation determine.

119.-(1) Where any goods liable to import duty have been imported,
or purchased prior to entry for home consumption, by or on behalf of
any person, either free of import duty or at a reduced rate of import
duty and such goods are subsequently disposed of in any manner
inconsistent with the purpose for which they were granted any relief
from import duty, the goods shall on disposal be liable to import duty
at the rate applicable to goods of that class or description at the time of
disposal:

Provided that such duty on disposal shall not be payable (in the
case of a natural person) where that person dies and the
ownership of such goods is transferred by way of bequest to or
inheritance by another person.

(2) Where it is proposed to dispose of any goods to which
subsection (1) applies, then the person responsible for the disposal of
such goods shall, furnish the Commissioner with the particulars of
such proposed disposal and shall cause the duty thereon to be paid.

(3) A person who knowingly disposes of or knowingly acquires any
goods to which subsection (1) applies without the import duty thereon

85
Derelict
goods,
etc.,
liable to
duty

Goods
imported
duty free
liable to
certain
duties on
disposal

No. 1 East African Community Customs Management 2005

having been paid in accordance with the provisions of this section
commits an offence.

(4) Where any goods to which subsection (1) applies are disposed of
without the payment of the import duty to which they are liable, then
the goods shall be liable to forfeiture.

Computation of Duty
Time of
entry
deter-
mines
rate of
duty

Duties,
etc., to
apply
propor-
tionately
120.-(1) Subject to subsection (3) and section 94, import duty shall
be paid at the rate in force at the time when the goods liable to such
duty are entered for home consumption:

Provided that in the case of goods imported overland, the time of
entry of such goods for home consumption shall be deemed to be
the time when the import duty on the goods is paid.

(2) Subject to the provisions of the Customs laws and of section 94,
export duty shall be paid at the rate in force at the time when the goods
liable to such duty are entered for export:

Provided that where any export duty is imposed, or the rate of
any existing export duty isvaried, between the time goods are
entered for exportation and the time of exportation of such goods,
export duty shall be paid at the rate in force at the time of exporta-
tion of the goods.

(3) Where goods are entered in accordance with section 34 before the
arrival at the port of discharge of the aircraft or vessel in which such
goods are imported, the import duty upon the goods shall be paid at the
rate in force at the time of arrival of such aircraft or vessel at such port
of discharge.

121. Where any drawback is allowed under the Customs laws
according to any specified weight, measure, strength, or value the
drawback shall be deemed to apply in the same proportion to any
greater or less weight, measure, strength, or value, as the case may be,
unless specific provision is made to the contrary in any Customs laws.

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No. 1 East African Community Customs Management 2005

122.-(1) Where imported goods are liable to import duty ad
valorem, then the value of such goods shall be determined in
accordance with the Fourth Schedule and import duty shall be paid on
that value.

(2) Upon written request, the importer shall be entitled to an
explanation in writing from the proper officer as to how the Customs
value of the importer’s goods was determined.

(3) Where, in the course of determining the customs value of
imported goods, it becomes necessary for the Customs to delay the
final determination of such customs value, the delivery of the goods
shall, at the request of the importer be made:
Provided that before granting such permission the proper
officer may require the importer to provide sufficient guarantee
in the form of a surety, a deposit or some other appropriate
security as the proper officer may determine, to secure the
ultimate payment of customs duties for which the goods may be
liable.

(4) Nothing in the Fourth Schedule shall be construed as restricting
or calling into question the rights of the proper officer to satisfy
himself or herself as to the truth or accuracy of any statement,
document or declaration presented for customs valuation purposes.

(5) The Council shall publish in the Gazette judicial decisions and
administrative rulings of general application giving effect to the Fourth
Schedule.

(6) In applying or interpreting this section and the provisions of the
Fourth Schedule due regard shall be taken of the decisions, rulings,
opinions, guidelines, and interpretations given by the Directorate, the
World Trade Organization or the Customs Cooperation Council.

(7) The rate of exchange to be used for determining the equivalent
of a Partner State currency of any foreign currency shall be the selling
rate last notified by the Central Bank of the respective Partner State
when an entry is presented to and accepted by the proper officer.

123.-(1) The value of goods for export shall include-
(a) the cost of the goods; and

87
Determi-
nation of
value of
imported
goods
liable to
ad
valorem
import
duty.

The
value of
goods
for
export

No. 1 East African Community Customs Management 2005

(b) transport and all other charges up to the time of delivery of
the goods on board the exporting aircraft or vessel, or at the
place of exit from the Partner State.

(2) Where the cost of the goods cannot be determined, the cost of
similar or identical goods exported from a Partner State at about or the
same time shall apply.

(3) Where the value of the goods cannot be determined under
subsections (1) or (2) then the proper officer may determine the value
of such goods.
Adjust-
ment for
fractions
of a dol-
lar

Duty
compu-
ted on
gross
weight
of pack-
age in
certain
cases

Duty
compu-
ted on
reputed
quantity
in certain
cases.
124. Where the total amount of duty computed with reference to any
one customs document-

(a) is equivalent to 1.5 dollars or less, no duty shall be
collected;

(b) exceeds the equivalent of 1.5 dollars and includes a fraction
of a dollar the fraction shall be treated as a complete dollar
and duty shall be collected.

125. Where any goods liable to duty according to weight are
imported in any package, and the goods are intended for sale, or are
normally sold retail, in the package then, if the package-

(a) is not marked or labelled with the net weight of the
contents; or

(b) is not commonly sold as containing, or as reputed to
contain, a specific quantity or weight, and in either such
case, the owner of the goods is unable to satisfy the proper
officer of the correct net weight thereof,

the goods shall be liable to duty according to the gross weight of
such package and its contents.

126. Where any goods liable to a specific duty are imported in any
package and the goods are intended for sale or are normally sold retail,
in the package, then, if the package-

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No. 1 East African Community Customs Management 2005

(a) is marked or labelled as containing a specific quantity of
such goods; or

(b) is commonly sold as containing, or as reputed to contain a
specific quantity of the goods,the package shall be deemed
to contain not less than such specific quantity.

127. Where any goods liable to duty according to liquid
measurement are imported in any package and-

(a) the goods are intended for sale, or are normally sold, in such
package; and

(b) the package is of standard capacity according to any liquid
measurement other than a liquid measurement based on
fractions or multiples of a litre,

then such package, having a capacity within such limits as specified
by the Commissioner shall be deemed to contain such fractions or
multiples of a litre.

128. For the purpose of the computation of the duty to which any
goods are liable, the Commissioner may fix the allowance for tare
which may be granted and the conditions under which any such
allowance may be granted.

129. Where any goods are imported or exported in any package
which, in the opinion of the Commissioner-

(a) is not the normal or proper package of the goods; or

(b) is designed for use, subsequently to such importation or
exportation, other than as a package for any goods of the
same or a similar nature,

then, subject to any provision to the contrary in the Customs laws,
the package shall be liable to duty as if it were a separate article and
shall, for all the purposes of the Customs laws be deemed to be a
separate article.

89
Commi-
ssioner
may fix
litre
equiva-
lent of
other
liquid
measure-
ment

Allowa-
nce for
tare

Duty on
package
in certain
cases

No. 1 East African Community Customs Management 2005

Payment, etc., of Duty

Recover y of duty by distress.

130.- (1) Where any goods are liable to duty, then such duty shall
constitute a civil debt due to a Partner State and be charged on the goods in
respect of which the duty is payable; and such duty shall be payable by the
owner of the goods and may, without prejudice to any other means of recovery,
be recovered summarily by legal proceedings brought by the Partner State.

(2) Goods under Customs control which belong to any person from whom duty
is due, and any goods afterwards imported or entered for export by that person,
shall be subject to a lien for such debt and may be detained by the Partner State
until such duty is paid and the claim of the relevant Partner State shall have
priority over the claims of whatever nature of any other person upon the goods
and the goods may be sold to meet the duty due if the duty is not paid within two
months after the goods are detained.

(3) Where any duty payable to a Partner State under subsection (1) or as
penalty under this Act by a person is not paid one month after the due date of
payment, the Commissioner may authorise distress to be levied upon the
following items-

(a) goods, chattels and effects;
(b) material for manufacturing or plant of a factory;
(c) premises, vehicles or other property;
(d) animals, which are in the possession or custody of-
(i) that person;
(ii) his or her agent; or
(iii) any other person on his or her behalf.

(4) The warrant of distress to be issued by the Commissioner shall be as set out
in the Sixth Schedule to this Act.

(5) A person authorised to distrain under subsection (3) may, if necessary
break open any building or place during the daytime with the assistance of a
police officer or other person who can lawfully give assistance.

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2005

(6) A person authorised to distrain shall keep the item distrained at
the expense of the owner for fourteen days from the date of distress or
until the amount due together with the costs and any other charges are
paid in full before the end of the fourteen days and if payment is not
effected after that period the person authorised to distrain may sell the
item.

(7) Where an item is sold under subsection (6) the proceeds of the
sale shall be applied as follows-

(a) payment of the tax due to the relevant Partner State ;
(b) payment of any fine imposed for non-payment of the tax, if
any;
(c) payment of the expenses or other charges for levying of dis-
tress and for the sale.

(8) The balance of the proceeds after payment under subsection (7),
if any, shall be paid to the owner, on application to the Commissioner
within twelve months from the date of the sale of the item.

131.-(1) The Commissioner may, by written notice addressed to any
person (in this section called the agent) appoint that person to be the
agent of another person (in this section called the principal) for the
purposes of collecting duty due under this Act from the principal where
the Commissioner is satisfied that the agent-
(a) owes or is about to pay money to the principal;

(b) holds money for or on account of the principal;
(c) holds money on account or some other person for payment
to the principal;

(d) has authority from some other person to pay money to the
principal;

(e) holds goods belonging to the principal which are liable to
duty and on which duty has not been paid,

and the Commissioner shall in the notice specify the amount of duty to
be collected by the agent, which amount shall not exceed the amount,
or value of the goods, held or owing by the agent for or to the
principal.
Agency
notices.

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No. 1 East African Community Customs Management 2005

(2) The Commissioner may, by notice in writing, require any person
to furnish the Commissioner within thirty days from the date of
service of the notice, with a return showing detail of any moneys or
goods which may be held by that person from whom duty is due under
this Act.

(3) This section shall apply to an agent appointed as though he or
she were a duly authorized agent acting on behalf of the owner.

(4) An agent who is appointed under subsection (1) and who claims
to be, or to have become unable to comply with the notice for any
reason shall notify the Commissioner accordingly in writing stating the
reasons for his or her inability, and the Commissioner may accept,
amend or reject the notification as the Commissioner may deem fit.

(5) Where an agent fails to remit any amount of duty specified in the
notice addressed to him or her within thirty days of the date of service
of the notice on him or her, or, of the date on which any moneys came
into his or her hands or become due by him or her to his or her
principal, whichever is the earlier and he or she has not complied with
subsection (4) then, the provisions of this Act relating to the collection
and recovery of duty shall apply as if it were duty due and payable by
him or her from the date when such duty should have been paid to the
Commissioner.

(6) An agent who has made payment of duty under this section shall
for all purposes be deemed to have acted therein with the authority of
his or her principal and of all other persons concerned, and shall be
indemnified in respect of that payment against any proceedings civil or
criminal and all process, judicial or extra judicial, notwithstanding any
provisions to the contrary in any written law, contract or agreement.

(7) A person who, in giving a notification under subsection (4),
wilfully makes any false or misleading statement, or wilfully conceals
any material fact, commits an offence and shall be liable on conviction
to a fine not exceeding two thousand five hundred dollars or to
imprisonment for a term of not more than three years or to both.

Security
on
property
for
unpaid
duty, etc. 132.- (1) Where a person, being the owner of land or buildings
situated in any Partner State, fails to pay any duty or other sum of
money due and payable under this Act, the Commissioner may by

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No. 1 East African Community Customs Management 2005

notice in writing inform that person of his or her intention to apply to
the Registrar of Lands for the land or buildings to be the subject of
security for the duty or other sum of an amount specified in the notice.

(2) If a person on whom a notice has been served under this section
fails to pay the whole of the amount specified in the notice within
thirty days of the date of service thereof, the Commissioner may by
notice in writing direct the Registrar of Lands that the land or
buildings, to the extent of the interest of that person therein, be the
subject of security for duty or other sum of a specified amount, and the
Registrar shall, without fee, register the direction as if it were a
mortgage over or charge on the land or buildings and thereupon the
registration shall, subject to any prior mortgage or charge, operate
while it subsists in all respects as a legal mortgage or charge to secure
the amount payable.

(3)The Commissioner shall, upon the payment of the whole of the
amount secured under subsection (2), by notice in writing to the
Registrar of Lands, cancel the direction made under that subsection
and the Registrar shall, without fee, record the cancellation.

133. – (1) Where any obligation has been incurred, whether by bond
or otherwise, for the payment of any duty, then such obligation shall be
deemed to be an obligation to pay all duties which are or may become
payable or recoverable under the provisions of this Act.

(2) Where the Commissioner is satisfied that the whole or any part
of duty or tax due under this Act from any person cannot be effective-
ly recovered by reason of-
(a) impossibility, or undue difficulty, or
(b) excessive cost of recovery, he or she shall notify the Council
in writing, who shall consider the matter, and with the
approval of the East African Legislative Assembly, remit or
write off in whole or in part the duty.

134. Where any practice or method of procedure of the Customs
approved by the Commissioner or arising from a ruling by the
Directorate or the Customs Co-operation Council relating to the
classification or enumeration of any goods for the purposes of the
liability to duty is altered with the result that less duty is thereafter
Effect of
obliga-
tion to
pay duty.

Effect of
alteration
in classi-
fication
of goods

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No. 1 East African Community Customs Management 2005

charged on goods of the same class or description, no person shall
become entitled to any refund of any duty paid before such alteration
took effect.

Short
levy or
erro-
neous
refund

Samples
may be
taken
without
immedi-
ate pay-
ment of
duty.

Collecti-
on of
anti-
dumping
and
counter-
vailing
duties
135. – (1) Where any duty has been short levied or erroneously
refunded, then the person who should have paid the amount short
levied or to whom the refund has erroneously been made shall, on
demand by the proper officer, pay the amount short levied or repay the
amount erroneously refunded, as the case may be; and any such
amount may be recovered as if it were duty to which the goods in
relation to which the amount was short levied or erroneously refunded,
as the case may be, were liable.

(2) Where a demand is made for any amount pursuant to sub-section
(1), the amount shall be deemed to be due from the person liable to pay
it on the date on which the demand note is served upon him or her, and
if payment is not made within thirty days of the date of such service,
or such further period as the Commissioner may allow, a further duty
of a sum equal to five percent of the amount demanded shall be due
and payable by that person by way of a penalty and a subsequent
penalty of two percent for each month in which he or she defaults.

(3) The proper officer shall not make any demand after five years
from the date of the short levy or erroneous refund, as the case may be,
unless the short levy or erroneous refund had been caused by fraud on
the part of the person who should have paid the amount short levied or
to whom the refund was erroneously made, as the case may be.

136. The proper officer may, subject to such conditions as he or she
may impose, permit the owner of any goods subject to Customs con-
trol to take samples of the goods without payment of the duty thereon
at the times the samples are taken.

Anti- Dumping and Countervailing Duties
137. – (1) The Commissioner shall on the advice of the East African
Community Committee on Trade Remedies established under the
Protocol-

(a) in the case of goods regarded as having been dumped, col-
lect anti-dumping duty;

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No. 1 East African Community Customs Management 2005

(b) in the case of goods in respect of which subsidy has been
granted, collect a countervailing duty; or

(c) take necessary measures in the case of any other matters in
respect of anti-dumping and countervailing measures.

(2) Notwithstanding the provisions of this Act, the anti- dumping
and countervailing duty imposed in subsection (1) shall be chargeable
in addition to any other duty chargeable on the respective goods.

Drawback, Remission, Rebate and Refund
138. – (1) Drawback of import duty may on exportation or the
performance of such conditions as may be prescribed, be allowed in
respect of such goods, such amount, and on such conditions, as may be
prescribed.

(2) Where the owner of any goods claims, or proposes to claim,
drawback in respect of goods, then, as a condition to the grant of such
drawback, he or she shall-

(a) enter such goods in the prescribed form and in the prescribed
manner and produce such goods for examination by the
proper officer before the exportation of the goods or the
performance of the conditions on which drawback is
allowed;

(b) make and subscribe a declaration on the prescribed form to
the effect that the conditions under which drawback may be
allowed have been fulfilled and, in the case of goods
exported or put on board any aircraft or vessel for use as
stores-

(i) that such goods have actually been exported or put on
board for use as stores, as the case may be;

(ii) that such goods have not been re-imported and are not
intended to be re-imported into the Partner State; and

(iii) that such owner at the time of the declaration of such
goods for drawback was, and continues to be, entitled
to drawback; and
Draw-
back of
duty

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No. 1 East African Community Customs Management 2005

(c) present his or her claim for drawback within a period of
twelve months from the date of the exportation of the goods
or the performance of the conditions on which drawback
may be allowed.

(3) Drawback shall not be allowed in respect of any goods where-
(a) the value of such goods for home consumption is less than
the amount of the duty drawback which may be otherwise
allowed; and
(b) the import duty on the goods was less than one hundred dol-
lars.

(4) Where the proper officer is satisfied that any goods under draw-
back, after being duly put on board any aircraft or vessel for exporta-
tion or for use as stores-

(a) have been destroyed by accident on board such aircraft or
vessel; or

(b) have been materially damaged on board such aircraft or ves-
sel and that such goods have, with the permission of the
proper officer, been discharged at any port or place within a
Partner State and abandoned to the Customs, then drawback
may be allowed in respect of such goods as if such goods
had actually been exported or used as stores.

Draw-
back to
be
allowed
in
respect
of cer-
tain
goods. 139. Subject to Section 138 and regulations made under this Act,
drawback of import duty may be allowed on goods imported for use in
the manufacture of goods which are-

(a) exported,
(b) transferred to a free port; or
(c) transferred to an export processing zone:Provided that-

(i) the goods referred to in paragraphs (a), (b) and (c)
shall be a direct result of the imported goods used in
the manufacture of such goods;
(ii) the owner of goods shall have obtained authorization
from the Commissioner prior to manufacture;
(iii) the Commissioner shall fix or agree to the rate of yield
of the operations;

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No. 1 East African Community Customs Management 2005

(iv) upon fixing or agreeing to the rate of yield, the
description and quality and quantity of various
compensating products shall be specified;
(v) the Commissioner shall prescribe duty drawback
coefficient applicable.

140. – (1) The Council may grant remission of duty on goods
imported for the manufacture of goods in a Partner State.

(2)The Council may prescribe regulations on the general
administration of the duty remission under this section.

(3)The manufacturer, and the approved quantity, of the goods with
respect to which remission is granted under this section shall be
published by the Council in the Gazette.

141. Where any goods are lost or destroyed by accident either-
(a) on board any aircraft or vessel; or
(b in removing, loading, unloading, or receiving them into, or
delivering them from, any Customs area or warehouse; or
(c) in any Customs area or warehouse,before the goods are
delivered out of Customs control to the owner, then, if the
Commissioner is satisfied that such goods have not been
and will not be consumed in a Partner State, the
Commissioner may remit the duty payable in respect of the
goods.

142.-(1) Where any goods imported into a Partner State are
damaged before such goods are delivered out of Customs control, then,
subject to the provisions of this section, a rebate of the duty payable in
respect of such goods may be allowed in such amount as, in the
opinion of the proper officer, is in proportion to the damage sustained
by such goods.

(2) Rebate of duty shall be allowed under this section in respect of
any goods (not being goods to which section 118 applies) except where
the proper officer is satisfied that the carrier or insurer of the goods has
made an allowance to the owner in respect of the damage; and in no
case shall the rebate exceed such proportion of the duty as the amount
of the allowance so made bears to the value, calculated in accordance
with section 122, of the undamaged goods.

Council
may
grant
remi-
ssion of
duty on
goods
for ma-
nufacture

Remission
duty

Rebate
of duty

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No. 1 East African Community Customs Management 2005
Repay-
ment of
Customs
duty
when
goods
are
returned
or
destro-
yed by
fire

Refund
of duty
143.-(1) Subject to section 144 and to such conditions as the
Commissioner may impose, where it is shown to the satisfaction of the
Commissioner-
(a) that goods were imported in pursuance of a contract of sale
and that the description, quality, state or condition of the
goods was not in accordance with the contract or that the
goods were damaged before the goods were delivered out to
Customs control; and
(b) that the importer with the consent of the seller has either-

(i) returned the goods unused to the seller and for that pur-
pose complied with the provisions of section 75 as to
entry in like manner as if they had been goods to which
that section applies; or

(ii) destroyed the goods unused, the Commissioner shall
refund any Customs duty paid on the importation of the
goods.

(2) Repayment of duty shall not be granted under subsection (1)
unless the person claiming the repayment presents a claim within a
period of twelve months from the date of the payment of the duty.

(3) Nothing in this section shall apply to goods imported on
approval, or on sale or return, or other similar terms.

144. – (1) Subject to any regulations, the Commissioner may grant a
refund-
(a) of any import duty, or part thereof which has been paid in
respect of goods which have been damaged or pillaged dur-
ing the voyage or damaged or destroyed while subject to
Customs control;

(b) of any import or export duty which has been paid in error.

(2) Refund of import or export duty or part thereof, shall not be
granted under subsection (1) unless the person claiming such refund
presents such claim within a period of twelve months from the date of
the payment of the duty.

(3) The Commissioner shall refund any import duty paid on goods
in respect of which an order remitting such duty has been made under
this Act.

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No. 1 East African Community Customs Management 2005
PA RT X I
CUSTOMS AGENTS
145. -(1) The Commissioner may license persons to act as agents for
transacting business relating to the declaration or clearance of any
goods or baggage other than accompanied non-manifested personal
baggage of a person travelling by air, land or sea.

(2) The Commissioner shall not license any person to act as agent
under this Act unless the Commissioner is satisfied that, that person
has the capability, office equipment, a registered office and documents
to effectively transact business in accordance with the provisions of
this Act and any other conditions as may be prescribed by regulations.

(3 ) The Commissioner may refuse to issue a licence or may by order,
suspend, revoke or refuse to renew, any such licence on the ground that the
applicant or holder has been found guilty of an offence under the Customs laws
or has been convicted of an offence involving dishonesty or fraud, or for any
other reason that the Commissioner may deem fit.

146. -(1) Where under the provisions of the Customs laws the owner
of any goods is required or authorised to perform any act then such act,
unless the contrary appears, may be performed on his or her behalf by
an authorised agent.

(2) A person shall not be the duly authorised agent of any owner
unless-(a) such person is exclusively in the employment of the owner;
or(b) such person is a Customs agent duly licensed as such in
accordance with this Act, and, in either case, such person is authorized
in writing by the owner, either generally or in relation to any
particular act, to perform the act on behalf of the owner.

(3)The proper officer may require from any person purporting to be
the duly authorised agent of any owner the production of his or her
written authority and in default of the production of such authority the
proper officer may refuse to recognise such person as a duly authorized
agent.

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Licensing
of agents

Authority
of
agents

No. 1 East African Community Customs Management 2005

Liability
of duly autho- rized agent

Liability of owner for acts of duly autho- rised agent

Power to require vessels, etc., to bring to

147. A duly authorised agent who performs any act on behalf of the
owner of any goods shall, for the purposes of this Act, be deemed to be the owner
of such goods, and shall, accordingly, be personally liable for the payment of
any duties to which the goods are liable and for the performance of all acts in
respect of the goods which the owner is required to perform under this Act:

Provided that nothing herein contained shall relieve the owner of such
goods from such liability.

148. An owner of any goods who authorises an agent to act for him or her in
relation to such goods for any of the purposes of this Act shall be liable for the
acts and declarations of such duly authorized agent and may, accordingly, be
prosecuted for any offence committed by the agent in relation to any such
goods as if the owner had himself or herself committed the offence:

Provided that-

(i) an owner shall not be sentenced to imprisonment for any offence
committed by his or her duly authorised agent unless the owner
actually consented to the commission of the offence;

(ii) nothing herein contained shall relieve the duly authorised agent from
any liability to prosecution in respect of any such offence.

PART XII P REVENTION OF
SMUGGLING
Powers of Officers
149. – (1) The master of any vessel within a Partner State shall bring his or her
vessel to, for boarding, on being signalled to do so by any vessel in the service
of the Customs and flying the Customs flag or of the Government of the Partner
State and flying the proper ensign.

(2) The master of any aircraft within or over a Partner State shall land such
aircraft on being signalled to do so by any person in the

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2005
service of the Government of a Partner State or in the service of the
Customs.

(3) The master of any aircraft which has landed, or of any vessel
bringing to, for boarding, shall facilitate by all reasonable means the
boarding of the aircraft or vessel by the proper officer, and shall cause
such aircraft or vessel to remain stationary for such period as the
proper officer may require.

(4) A master of an aircraft or vessel who contravenes this section
commits an offence and shall be liable-
(a) in the case of the master of a vessel of less than two hundred
and fifty tons register, to a fine not exceeding two thousand
dollars and the vessel in respect of which such offence has
been committed shall be liable to forfeiture;
(b) in the case of the master of an aircraft or of a vessel of two
hundred and fifty tons register or more, to a fine not
exceeding five thousand dollars and the aircraft or vessel in
respect of which such offence has been committed may be
seized and detained until the fine is paid or security
therefor given.

150.-(1) The master of any aircraft or vessel within or over a Partner
State shall, on being required to do so by the proper officer, depart
from a Partner State within twelve hours of such requirement:
Provided that this subsection shall not apply in the case of any
aircraft or vessel that is registered in any of the Partner States.

(2) A master of an aircraft or vessel who contravenes subsection (1)
shall, unless prevented from complying with such subsection by
circumstances beyond his or her control, the proof whereof shall lie on
the master, commits an offence and shall be liable-

(a) Power to search premisesin the case of the master of a
vessel of less than two hundred and fifty tons register, to a
fine not exceeding two thousand dollars and the vessel in
respect of which such offence has been committed shall be
liable to forfeiture;

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Power to
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vessel,
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No. 1 East African Community Customs Management 2005

(b) in the case of the master of an aircraft or of a vessel of two
hundred and fifty tons register or more, to a fine not
exceeding five thousand dollars and the aircraft or vessel in
respect of which such offence has been committed may be
seized and detained until the fine is paid or security given.
Power to
patrol
freely
and
moor
vessels,
etc.

Power to
board
vessel,
etc., and
search.
151. – (1) An officer while on duty may enter upon and patrol and
pass freely along any premises other than a dwelling house or any
building.

(2) An officer in charge of any aircraft, vessel, or vehicle, employed
in the prevention of smuggling, may take such aircraft, vessel or
vehicle, to such place as he or she may consider most convenient for
that purpose, and may there keep such aircraft, vessel or vehicle, for
such time as he or she may consider necessary for that purpose.

152. – (1) An officer may, in the course of his or her duty, board and
search any aircraft or vessel within a Partner State and may examine,
lock-up, seal, mark, or otherwise secure, any goods on such aircraft or
vessel; and for the purposes of the examination or security of any
goods, such officer may require such goods to be unloaded, or
removed, at the expense of the master of such aircraft or vessel.

(2) An officer acting under this section who is unable to obtain free
access to any part of such aircraft or vessel, or to any container
therein, may enter such part, or open such container, in such manner,
if necessary by force, as he or she may think necessary.

(3) An officer boarding any vessel under this section may remain
thereon for such time as he or she may consider necessary and the
master of such vessel shall either provide such officer with proper and
sufficient foods and suitable bedding accommodation under the deck
or, with the approval of the proper officer and subject to such
conditions as he or she may impose, pay such sum as may be
prescribed in lieu thereof, and any master who contravenes this
subsection, or of any such conditions, commits an offence and shall be
liable on conviction to a fine not exceeding one thousand dollars

(4) A master of an aircraft or vessel-

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No. 1 East African Community Customs Management 2005

(a) who refuses to unload or remove any goods when required
to do so in accordance with the provisions of this section; or

(b) in which any goods which have been locked up, sealed
marked, or otherwise secured, in accordance with this
section are in any way interfered with except in accordance
with the permission of the proper officer; or

(c) in which any lock, seal, or mark, placed on any place or
goods in accordance with this section is in any way opened,
broken, or altered,
commits an offence.

(5) Where, on the search of any aircraft or vessel under this section,
any goods are found in relation to which any offence under this Act has
been committed, such goods shall be liable to forfeiture.

(6) An officer shall not be liable to any legal proceedings for any
action taken in good faith in accordance with this section.
(7) Where, on any aircraft or vessel being boarded under this
se ction, any goods are found therein and on such aircraft or vessel
being subsequently boarded, whether by the same or another officer,
such goods or any part thereof are no longer therein, then, unless the
master of such aircraft or vessel accounts for such goods to the
sati sfaction of the proper officer, such master commits an offence and
shall be liable to a fine equal to ten percent of the dutiable value of the
goods and to payment of the duties due thereon.

153. – (1) An officer may, if he or she has reasonable grounds to
believe that any vehicle is conveying any uncustomed goods whether
or not in transit, or being transferred from one Partner State to
an o th er, stop and search any such vehicle; and for the purpose of that
search, that officer may require any goods in that vehicle to be
unloaded at the expense of the owner of the vehicle.

(2) An officer who is unable to obtain free access to any place or
container in the course of a search of a vehicle under this section may
open the place or container in such manner, including by force, as the
officer may deem necessary.

(3) A person in charge of a vehicle who refuses to stop or to permit
the vehicle to be searched in accordance with this section commits an
offence.

103

Power to
stop
vehicle
suspec-
ted of
conve-
ying
uncu-
stomed
goods,
etc.

No. 1 East African Community Customs Management 2005

Persons
entering
or leav-
ing a
Partner
State to
answer
ques-
tions
concern-
ing bag-
gage

Power to
search
persons
(4) Where, on the search of any vehicle under this section, any
goods are found in relation to which any offence under this Act has
been committed, such goods shall be liable to forfeiture.

(5) An officer shall not be liable to any legal proceedings for any
action taken in good faith in accordance with this section.

154.-(1) A person entering or leaving a Partner State shall answer
such questions as the proper officer may put to him or her with respect
to his or her baggage and any article contained in his or her baggage or
carried with him or her.

(2) A person in charge of a vehicle containing goods being
tran s ferred from one Partner State to another shall answer
su ch q u estions as the proper officer may put to him or her with
respect to the vehicle and the goods contained in the vehicle or carried
with him or her, and shall produce any books or documents relating to
the vehicle and the goods contained in the vehicle, which are, or should
be, carried in the vehicle.

155. – (1) An officer may, if he or she has reasonable grounds to
believe that any person has in his or her possession, whether upon his
or her person or in his or her baggage, any uncustomed goods, search
that person; and the officer may, for that purpose, use reasonable force.

(2) A female shall not be searched except by a female officer.

(3) Where any officer informs any person that he or she proposes to
search him or her, then such person shall, if he or she so requires, be
taken forthwith before a magistrate, the Commissioner, or any other
superior officer, who may, if he or she sees no reasonable cause for any
search, order such person not to be searched.

(4) Where, on the search of any person under this section, any goods
are found in his or her possession, whether upon his or her person or
in his or her baggage, in relation to which any offence under this Act
has been committed, the goods shall be liable to forfeiture.

(5) An officer shall not be liable to any legal proceedings for any
action taken in good faith in accordance with this section.

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No. 1 East African Community Customs Management 2005

156.-(1) An officer may, if he or she has reasonable grounds to
believe that any person is committing, or has, within the past year,
committed or been concerned in the commission of, any offence under
this Act, arrest that person; and the officer may, for such purpose, use
reasonable force.

(2) A person arrested in accordance with this section shall forthwith
be taken before a magistrate, or to a police station, to be dealt with
according to the law.

(3) Without prejudice to the powers of a police officer to arrest any
person for an offence under this Act which is cognisable to the police
under any written law of a Partner State for the purposes of this section
the expression “officer” includes a police officer.

(4) An officer shall not be liable to any legal proceedings for any
action taken in good faith in accordance with this section.

157. -(1) A proper officer may, if he or she has reasonable grounds
to believe that there are on any premises any uncustomed goods or
documents relating to any uncustomed goods, enter upon and search
such premises by day or by night; and for such purpose the proper
officer may use all reasonable force and may require the assistance of,
and take with him or her, another officer or a police officer.

(2) Where a proper officer enters upon any premises in accordance
with this section the proper officer may-

(a) require the owner or occupier of the premises to produce,
either immediately or at a time and place to be fixed by the
proper officer, any book, document, or thing, which the
owner or occupier is required to keep under the provisions
of the Customs laws or which relates to any imported,
exported or transferred goods, or to any goods to be
imported, exported or transferred by the owner or occupier,

(b) examine and take copies of any such book or document;

(c) seize and detain any such book, document, or thing, if, in
his or her opinion, it may afford evidence of the
commission of any offence under this Act;

105
Power of
arrest.

Power to
search
premi-
ses.

No. 1 East African Community Customs Management 2005

(d) require the owner or occupier to answer the questions
relating to any book, document, or thing, or to any declara-
tion in any such book or document;
(e) require any container, envelope or other receptacle in the
premises to be opened;
(f) at the risk and expense of the licensee, owner or occupier,
open and examine any package or any goods or materials
in the premises;
(g) take and retain without payment such reasonable samples of
any goods or materials as he or she may think necessary
for the performance of his or her duties;
(h) lock up, seal, mark, or otherwise secure any such premises,
room, place, equipment, tank or container.

(3) Where, on the search of any premises under this section, any
uncustomed goods, or any documents relating to any uncustomed
goods, are found, the proper officer may seize and carry away any such
goods or documents.

(4) A person, not being a proper officer, who opens, breaks, or in any
way interferes with any lock, seal, mark or other fastening placed by
an officer in accordance with the provisions of this section on any
building, room or place commits an offence and shall be liable on
conviction to a term of imprisonment not exceeding three years or a
fine not exceeding two thousand five hundred dollars.

(5) Where the premises, room or place have been sealed with goods
therein and subsequently such goods or any part of the goods are no
longer therein, the owner or occupier commits an offence and shall be
liable on conviction to a fine equal to twenty-five percent of the value
of the goods or to imprisonment for a term not exceeding five years.

(6) An officer shall not be liable to any legal proceedings for any
action taken in good faith in accordance with this section.

Search
warrants 158.—( 1 ) W i thout prejudice to any other power under this Act, where
any officer declares on oath before any magistrate that he or she has
reasonable grounds to believe that there are in any premises any
uncustomed goods or documents relating to any uncustomed goods,

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No. 1 East African Community Customs Management 2005

then such magistrate may by warrant under his or her hand authorise
such officer to enter upon and search, with such force as may be
necessary and by day or by night, such premises and to seize and carry
away any uncustomed goods or documents relating to any uncustomed
goods found therein.

(2) An officer in possession of a search warrant may require any
police officer to assist him or her in the execution of such warrant and
any police officer so required shall render assistance accordingly.
Power to require production of books, etc.

159.—( 1 ) W h e r e –
(a) information has been given to the proper officer that any
goods have been, or are intended to be, smuggled, or
undervalued, or dealt with in any way contrary to this Act;
or

(b) any thing or goods have been seized under this Act, the
proper officer may require the owner of the goods or thing
to immediately produce all books and documents, whether
in written form or on micro-film, magnetic tape or any other
form of mechanical or electronic data retrieval mechanism
relating in any way thereto, or to any other goods imported,
exported, carried coastwise, manufactured, purchased, sold
or offered for sale by that owner within a period of five
years immediately preceding the requirement.

(2) On the production of such books or documents the proper
officer may inspect and take copies of any entries in the books or
documents; and the proper officer may seize and detain any such book
or document if, in his or her opinion, it may afford evidence of the
commission of an offence under this Act.

PART XIII
M
ANUFACTURING UNDER BOND

160.-(1) The Commissioner may, on application and subject to such
conditions as the Commissioner may impose, issue a licence in the
prescribed form to any person to manufacture goods under bond in
specified premises; and the Commissioner may refuse to issue a

107

Power to
require
produc-
tion of
books,
etc.

Licensi-
ng of
bonded
factories

No. 1 East African Community Customs Management 2005

licence or, by notice in writing, suspend, revoke or refuse to renew a
licence on the grounds stated in the notice.

(2) Application for a licence under this section shall be in the
prescribed form.

(3) A licence issued under subsection (1) shall be subject to the
payment of the prescribed annual fee and shall expire on the thirty-first
day of December in each year.

(4) The Commissioner may require the person applying for a licence
to furnish such security as the Commissioner may think appropriate as
a condition to the grant of the licence and the Commissioner may, at
any time, require a licensee to furnish a new security in a different
amount or on different terms.

(5) Premises shall not be used for manufacturing under bond unless
there is a valid licence for that purpose in relation to such premises.

(6) A person who uses or permits premises to be used for
manufacturing under bond without a licence, or a licensee who uses or
permits his bonded factory to be used in contravention of the terms of
his or her licence commits an offence and shall be liable on conviction
to a fine not exceeding five thousand dollars or to imprisonment for a
term not exceeding three years or to both; and any goods in respect to
which an offence has been committed shall be liable to forfeiture.

Entry of
premises
as
bonded
factories 161.-(1) A licensee shall, before commencing to manufacture under
bond, make entry in the prescribed form and in the prescribed manner
of each building, room, place and item of plant in his or her factory
which he or she proposes to use in the manufacture or storage of raw
materials or manufactured goods; and, in each entry, he or she shall
specify the purpose for which each building, room, place or item of
plant is to be used.

(2) A licensee shall not, in the course of manufacturinggoods under
bond –

(a) make use of a building, room, place or item of plant in
relation to which entry is required under this section unless

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No. 1 East African Community Customs Management 2005

there is, in respect thereof, a valid entry;

(b) effect, without prior permission of the Commissioner, an
alteration in shape, position or capacity to a building, room,
place or plant.

(3) A person who contravenes the provisions of this section
commits an offence.

162.-(1) Where a manufacturer ceases to be licensed under section
160, the manufacturer shall enter and deliver for exportation or for
removal to another bonded factory or for home consumption all the
plant, machinery and equipment, raw materials or manufactured goods
in the bonded factory within such time as the Commissioner may
specify.

(2) Where on the expiry of the time specified by the Commissioner
under subsection (1), the plant, machinery and equipment, raw
materials or manufactured goods are not entered and delivered in
accordance with subsection (1) then the plant, machinery and
equipment, raw materials or manufactured goods shall be liable to
forfeiture.

163.-(1) A manufacturer shall –

(a) provide office accommodation and just weights, scales,
measures and other facilities for examining and taking
account of goods and for securing them as the proper
officer may reasonably require;

(b) keep a record of all types of plant, machinery and
equipment, raw materials and goods manufactured in the
factory and keep that record at all times available for
examination by the proper officer;

(c) provide all necessary labour and materials for the storing,
examining, packing, marking, coopering, weighing and
taking stock of the goods in the factory whenever the prop-
er officer so requires.

109
Entry of
plant,
machin-
ery, etc.
for
exporta-
tion or
for home
con-
sumption

Manufa-
cturer to
provide
facilities

No. 1 East African Community Customs Management 2005

(2) Where a manufacturer contravenes any of the provisions of this
section, the Commissioner may direct that the manufacturer
ceases operations until he or she has complied with those provisions to
the satisfaction of the Commissioner.

(3) A manufacturer who contravenes any of the provisions of this
section or who fails to comply with any direction given by the
Commissioner under this section commits an offence.

Importa- tion of equip- ment, machin- ery, raw materi- als, etc.

Provisi- ons rela- ting to goods in a bonded factory

164.-(1) All items of plant, machinery, spares and imported raw
materials for use in the manufacture of goods under bond, shall be duly entered
and delivered by a manufacturer to the bonded factory within forty-five days and
subject to such conditions as the Commissioner may prescribe; and if the
goods described in this section are not delivered, then, as from the date of
importation, the plant, machinery, spares and raw materials shall be liable
to forfeiture, unless a satisfactory explanation is given to the proper officer to
account for any delay.

(2) All manufactured goods shall be duly exported or entered for home
consumption within such time and subject to such conditions as the
Commissioner may impose.

(3)A manufacturer who contravenes this section commits an offence.

165.-(1) Where goods are warehoused in a bonded factory the
Commissioner may, subject to such conditions as he may impose, permit the
name of the owner of the goods in the account to be changed
if application is made in the prescribed form and signed by both the owner and
the intended owner.

(2) Where goods warehoused in a bonded factory are to be removed to another
bonded factory, then the proper officer shall-

(a) require the owner of the goods to deliver an entry in the form and
manner as the proper officer may direct;

(b) require the owner to give security in the amount not being less than the
duty chargeable on the goods, for the due

110

2005

arrival and re-warehousing of the goods within such time as
the proper officer may consider appropriate; and

(c) transmit to the proper officer of the bonded factory where
the goods are to be re-warehoused an account containing
the particulars of the goods.

(3) Security given under subsection (2) shall not be discharged
unless-

(a) the conditions attached thereto have been satisfied;

(b) the full duty payable on the goods has been paid in
accordance with this Act; or

(c) the goods are otherwise accounted for to the satisfaction of
the proper officer, and any duties due in respect of any
deficiency in the goods not so accounted for have been paid.

(4) On arrival of the goods at the other bonded factory, a particular
account of the goods shall be taken.

166.-(1) The Commissioner may, subject to such conditions as he
may impose and on payment of the duties due, permit goods
manufactured in a bonded factory, including waste from the
manufacturing process, to be entered for home consumption.

(2) The value for the purpose of determining the duty on goods
removed from a bonded factory shall be determined in accordance with
section 122.

(3) A licensee who, without the permission of the Commissioner,
disposes of, or allows to be disposed of, raw materials or manufactured
goods from a bonded factory, within the Partner States, whether on
payment or not, or any person who acquires, keeps, conceals or has in
his or her possession such raw materials or manufactured goods from
a bonded factory, commits an offence and shall be liable on conviction
to a fine of five thousand dollars or fifty percent of the ex-factory value
of the raw materials or manufactured goods, whichever is the higher,

111
Goods
from
bonded
factory
may be
entered
for home
con-
sumption

No. 1 East African Community Customs Management 2005

or to imprisonment for a term not exceeding three years or both; and
the goods in respect of which the offence has been committed shall be
liable to forfeiture.

PA RT X I V
E
XPORT PROCESSING ZONES AND FREEPORTS Goods in
export
process-
ing
zones or
freeports

Removal
of goods
or waste
for home
con-
sumption
167.-(1) Subject to the Customs laws, goods in export processing
zones or freeports, whether of foreign or of domestic origin shall be
entered for-

(a) export after undergoing processing in an export processing
zone; or

(b) re-export in the same state from a freeport.

(2) Goods entering an export processing zone or a freeport shall be
exempt from duty in accordance with the Protocol.

168.-(1) The Commissioner may, subject to the Customs laws and
to such conditions as the Commissioner may impose and on payment
of the duties due, permit removal of goods from an export processing
zone or a freeeport, including waste from the manufacturing process,
to be entered for home consumption.

(2) The value for the purpose of determining the duty on goods
removed from an export processing zone or a freeport shall be deter-
mined in accordance with section 122.

(3) A person who contravenes any conditions imposed by the
Commissioner under this section commits an offence and any goods in
respect of which such offence has been committed shall be liable to
forfeiture.

(4) A person who removes goods from an export processing zone or
a freeport for home use without the authority of the Commissioner
commits an offence and shall be liable on conviction to a fine of five
thousand dollars or fifty percent of the value of the goods, whichever
is the higher, or to imprisonment for a term not exceeding three years
or both; and the goods in respect of which the offence has been
committed shall be liable to forfeiture.

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No. 1 East African Community Customs Management 2005

169.- (1) The Commissioner may designate areas in export
processing zones or in freeports in which customs formalities shall be
carried out.

(2) An export processing zone operator or a freeport operator shall-

(a) provide office accommodation and just weights, scales,
measures and other facilities for examining and taking
account of goods and for securing them as the proper
officer may reasonably require;

(b) keep a record of all types of plant, machinery and
equipment, raw materials and goods manufactured in the
export processing zone or a freeport and keep that record
at all times available for examination by the proper officer;

(c) provide all necessary labour and materials for the storing,
examining, packing, marking, coopering, weighing and
taking stock of the goods in the export processing zone or
a freeport whenever the proper officer so requires.

(3) Where an export processing zone operator or a freeport operator
contravenes any of the provisions of this section, the Commissioner
shall refer the matter to the export processing zone authority or
freeports authority which shall deal with the matter in accordance with
the Protocol and national legislation.

170.-(1) The Commissioner shall be notified in advance of any
industrial, commercial or service activity authorized by the operator of
an export processing zone or a freeport.

(2) The Commissioner may impose conditions on the activities
referred to in subsection (1), having regard to the nature of the goods
concerned or the requirements of customs control.

(3) The Commissioner shall not permit any person who does not
provide the necessary guarantees of compliance with the provisions
laid down in this Act from carrying on any activity in an export
processing zone in a freeport.

113
Designa-
ted areas
in
export
process-
ing zone
or a
freeport

Notifi-
cation to
Commi-
ssioner

No. 1 East African Community Customs Management 2005

PA RT X V
I
NWARD AND OUTWARD PROCESSING
Interpre-
tation of
Part XV

Proce-
dure of
operation
171. In this Part-
“compensating products” means products resulting from the
manufacturing, processing or repair of goods for which the use of
the inward or outward processing procedure is authorised;
“equivalent goods” means domestic or imported goods identical in
description, quality and technical characteristics to those imported
for inward processing which they replace;
“inward processing” means the customs procedure under which
certain goods can be brought in a Partner State conditionally
exempted from duty on the basis that such goods are intended for
manufacturing, processing or repair and subsequent exportation;
“outward processing” means the customs procedure under which
goods which are in free circulation in a Partner State may be
temporarily exported for manufacturing, processing or repair
outside the Partner State and then re-imported;
“rate of yield” means the quantity or percentage of compensating
products obtained from the processing of a given quantity of
temporary imported or exported goods;
“re-importation in the same state” means the Customs procedure under
which exported goods may be taken into home use free of import
duties, provided that they have not undergone any manufacturing,
processing or repairs outside a Partner State and any sums
chargeable as a result of repayment or relief or of remission from
duty granted at exportation must be paid;
“replacement system” means a procedure by which an imported
product substitutes a compensating product;
“replacement product” means a product imported to substitute a
compensating product under the replacement system.

Inward Processing

172.-(1) The Commissioner shall, subject to such conditions as the
Commissioner may prescribe, allow the following goods to be entered
for inward processing in a Partner State in one or more processing
operations-

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No. 1 East African Community Customs Management 2005

(a) goods imported directly from a foreign country;
(b) goods transferred from another Partner State.

(2) Goods entered under subsection (1) shall be exempt from duty.

(3)The right to import goods for inward processing shall not be
limited to the owner of the imported goods but shall extend to
acontract in which a foreign consignor remains the owner of the goods
and the importer only processes the goods under contract.

173.-(1) Compensating products shall be exported out of the
Partner State within a period of one year from the date on which the
goods were imported.

(2) The Commissioner may prescribe specific time limits for inward
processing.

174. Compensating products-
(a) may be exported through a customs office other than that
through which the goods placed under inward processing
were imported;

(b) may be allowed in partial consignment under separate
entries;

(c) may, subject to such conditions as the Commissioner may
impose, be re-exported in an unaltered state.

175.-(1) The Commissioner may, subject to the Customs laws and
to such conditions as the Commissioner may impose and on
payment of the duties, permit goods in an unaltered state or
compensating products to be entered for home consumption.

(2) Duty on goods entered for home consumption under this section
shall be determined in accordance with section 122.

(3) A person who contravenes any condition imposed by the
Commissioner under this section commits an offence and any goods in
respect of which such offence has been committed shall be liable to
forfeiture.

115
Time
limit for
inward
process-
ing

Compe-
nsating
products
in
inward
process-
ing

Compe-
nsating
products
entered
for home
con-
sumption

No. 1 East African Community Customs Management 2005
Compe-
nsating
products
obtained
from
equiva-
lent
goods

Rate of
yield in
inward
process-
ing

Authori-
zation
for out-
ward
process-
ing pro-
cedure

Time
limit for
outward
process-
ing
176. Subject to such conditions as the Commissioner may impose
compensating products may be obtained from equivalent goods as a
replacement of goods imported for inward processing:

Provided that the equivalent products shall be identical in
description, quality and technical characteristics as those
imported for inward processing, which they replace.

177.-(1) The Commissioner shall, where goods are for inward
processing, fix or agree to the rate of yield of the operation by
reference to the actual conditions made under which it is effected.

(2) Upon fixing or agreeing to that rate, the description, quality and
quantity of the various compensating products shall be specified.

(3) In fixing the rate of yield account may be taken of losses
resulting from the nature of the goods used such as evaporation or dry-
ing out of the goods.

Outward Processing

178.-(1) The Commissioner may authorize goods to be exported
temporarily from a Partner State as the Commissioner may prescribe
in order to undergo processing operations and the compensating
products be re-imported and be released for home consumption with
total or partial relief of duties.

(2) The authorization shall be granted:

(a) where it is established that the compensating products shall
result from processing of the temporary export goods;

(b) where the outward processing procedure does not prejudice
the interests of the Partner State.

179.-(1) Compensating products shall be imported into a Partner
State within a period of one year from the date on which the goods
were exported.

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No. 1 East African Community Customs Management 2005

(2) The Commissioner may prescribe specific time limits for
outward processing.

180. Compensating products-

(a) may be imported through a customs office other than that
through which the goods placed under outward processing
were exported;

(b) may be allowed in partial consignment under separate
entries;

(c) may, subject to such conditions as the Commissioner may
impose, be re-imported in an unaltered state.

181.-(1) Compensating products or goods in an unaltered state shall
be granted total or partial relief from payment of duty where such
compensating products or unaltered goods are cleared for home
consumption in the name of-

(a) an authorised person; or
(b) any other person with the consent of the authorised person.

(2) The total or partial relief from payment of duty referred to in
subsection (1) shall not be granted where any of the conditions or
obligations relating to the outward processing procedure have not been
fulfilled.

(3) Without prejudice to the generality of subsection (2), where
temporary exportation of goods is permitted and the goods are
re-imported into a Partner State within the prescribed period of their
exportation, total or partial relief from payment of duty shall be
granted where-

(a) the re-imported goods were repaired, and such repairs could
not have been undertaken in the Partner State;

(b) equipment or other goods were added to the exported goods
that could not be added within the Partner State;

117
Compe-
nsating
products
in out-
ward
process-
ing

Relief
from
payment
of duty

No. 1 East African Community Customs Management 2005

(c) processing or manufacturing was done on the re-imported
goods and the goods exported were the product of, and
originated within the Partner State.

Determi-
nation of
duty of
re-
imported
goods

Relief
from
duty on
emer-
gency
repairs

Replace-
ment
system
182.-(1) Where goods on re-importation are liable to duty, the value
of such goods shall be the amount of the increase in value attributable
to:

(a) repairs outside the Partner State;
(b) equipment or other goods added and related work done
outside the Partner State;

(c) processing or manufacturing done outside the Partner State;
(d) any other costs incurred outside the Partner State.

(2) Where goods are temporarily exported for the purpose of repair,
the goods shall be released for home consumption without payment of
duty where it is established to the satisfaction of the Commissioner that
the goods were repaired free of charge on account of contractual or
statutory obligation arising out of warranty or manufacturing defect.

(3) Subsection (2) shall not apply where account was taken of the
manufacturing defect at the time when such goods were first released
for home consumption.

183. The total relief from import duties shall be granted in respect
of an aircraft, vessel, train, commercial vehicle or conveyance
re-imported into the Partner State after exportation where the returned
aircraft, vessel, train, commercial vehicle or conveyance was repaired
outside the Partner State as a result of an emergency and repairs were
necessary to ensure a safe return to the Partner State.

184.-(1) The Commissioner may permit the use of replacement
system where the processing operation involves the repair of goods.

(2) Compensating products arising from outward processing
procedure shall benefit from the use of a replacement system.

(3) The Commissioner may authorize the importation of
replacement products prior to the temporary exportation of goods to be
repaired.

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Provided that:
(a) exportation of goods shall be effected within a period of
two months from the date of entry of the replacement
products;

(b) security shall be provided to cover the amount of the duties
payable on the replacement products.

(4) Replacement products shall have the same tariff classification,
be of the same commercial quality and possess the same technical
characteristics as the temporary export goods had the latter undergone
the repair in question.

(5) Where the temporary export goods have been used before
export, the replacement products must also have been used and may
not be new products.

185.-(1) Goods that are re-imported shall be entitled to re-entry free
of import duties and to a refund of any duties paid on exportation:

Provided that-
(a) the goods have not undergone any manufacturing,
processing or repairs;

(b) the re-imported goods can be identified by an officer as the
goods that were exported;
(c) any amount of duties or taxes chargeable as a result of any
repayment or remission of, or conditional relief of any
duties or any other amounts granted on exportation are paid;
(d) re-importation occurs within one year from the time of
exportation or such other period as may be determined by
the Commissioner.

(2) Subject to paragraph (b) of subsection (1) re-importation of
goods in the same state shall be allowed where part of the exported
goods is re-imported.

(3) The Commissioner shall not refuse the re-importation of goods
in the same state on the grounds that the goods have been used or
damaged, or have deteriorated.

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Condition
for re-
importa-
tion in
the same
state

No. 1 East African Community Customs Management 2005

Rate of
yield in outward process- ing

Customs formali- ties may be car- ried out by infor- mation technolo- gy

Users of the cus- toms compu- terized system

Access to Customs compu- terised systems Cance- llation of registra- tion of regis- tered
user

186.-(1) The Commissioner shall, where goods are for outward
processing, fix or agree to the rate of yield of the operation by reference to
the actual conditions made under which it is effected.

(2) Upon fixing or agreeing to that rate, the description, quality and quantity of
the various compensating products shall be specified.

(3) In fixing the rate of yield account may be taken of losses resulting
from the nature of the goods used such as evaporation or drying out of the
goods.

PART XVI
A
PPLICATION OF INFORMATION TECHNOLOGY

187. Subject to such conditions as the Commissioner shall prescribe,
customs formalities or procedures may be carried out by use
of information technology.

188. A person who wishes to be registered as a user of a Customs
computerised system may apply in writing to the Commissioner who may-

(a) grant the application subject to such conditions as he or she may impose;
or

(b) reject the application.

189. A person shall not access, transmit to, or receive information from, a
Customs computerized system unless that person is a registered user of the
system.

190. Where at any time the Commissioner is satisfied that a person who is a
registered user of a Customs computerised system has-

(a) failed to comply with a condition of registration imposed by the
Commissioner under section 188 of this Act;

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2005

(b) failed to comply with, or has acted in contravention of, any
conditions under the regulations; or

(c) been convicted of an offence under this Act relating to
improper access to or interference with a Customs
computerised system,

the Commissioner may cancel the registration of that user.
191.-(1) A person commits an offence if he or she –

(a) knowingly and without lawful authority by any means gains
access to or attempts to gain access to any Customs comput-
erised system; or

(b) having lawful access to any Customs computerised system,
knowingly uses or discloses information obtained from
such a computer system for a purpose that is not authorised;
or

(c) knowing that he or she is not authorised to do so, receives
information obtained from any Customs computerised
system, and uses, discloses, publishes, or otherwise
disseminates such information.

(2) A person who commits an offence under subsection (1) shall be
liable on conviction-

(a) in the case of an individual, to imprisonment for a term not
exceeding two years or to a fine not exceeding five
thousand dollars; or

(b) in the case of a body corporate, to a fine not exceeding
twenty five thousand dollars.

192. A person commits an offence if he or she knowingly-

(a) falsifies any record or information stored in any customs
computerised system; or

(b) damages or impairs any customs computerised system; or
(c) damages or impairs any duplicate tape or disc or other
medium on which any information obtained from a

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Unautho-
rised
access to
or
improper
use of
Customs
compu-
terised
system

Interfere
nce with
Customs
compu-
terised
system

No. 1 East African Community Customs Management 2005

Customs computerised system is held or stored otherwise
than with the permission of the Commissioner;and shall be
liable on conviction to imprisonment for a term not
exceeding three years or to a fine not exceeding ten
thousand dollars.

Conspi-
ring to
contra-
vene
provi-
sions of
this Act.

Offences
with vio-
lence,
etc.
PART XVII
O
FFENCES , P ENALTIES , F ORFEITURES AND SEIZURES
193. A person who conspires with another person or persons to
contravene any of the provisions of this Act commits an offence and
shall be liable on conviction to imprisonment for a term not exceeding
five years.

194.-(1) A person who-
(a) maliciously shoots at any aircraft, vessel or vehicle in the
service of the Customs; or

(b) maliciously shoots at, maims or wounds any officer while in
the execution of his or her duty; or

(c) commits with violence any of the offences referred to in
subsection (4),

commits an offence and shall be liable on conviction to imprisonment
for a term not exceeding twenty years.

(2) A person who-
(a) while committing an offence under this Act is armed with
any firearm or other offensive weapon; or

(b) while being so armed, is found with any goods liable to
forfeiture under this Act,

commits an offence and shall be liable on conviction to imprisonment
for a term not exceeding ten years.

(3) A person who-
(a) while committing an offence under this Act is disguised in
any way; or

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No. 1 East African Community Customs Management 2005

(b) while being so disguised, is found with any goods liable to
forfeiture under this Act,
commits an offence and shall be liable on conviction to imprisonment
for a term not exceeding three years.
(4) A person who-

(a) staves, breaks, destroys or throws overboard from any
aircraft, vessel or vehicle any goods for the purpose of
preventing the seizure of the goods; or

(b) rescues, staves, breaks, destroys, or throws overboard from
any aircraft, vessel or vehicle any goods for the purpose of
preventing the securing of such goods after they have been
seized; or
(c) rescues any person arrested for any offence under the Act;
or
(d) in any way obstructs any officer in the execution of his or
her duty,
commits an offence.

(5) For the purposes of this section, the expression “violence” means
any criminal force or harm to any person, or any criminal mischief to
any property, or any threat or offer of such force, harm or mischief, or
the carrying or use of any dangerous or offensive weapon in such
manner that terror is likely to be caused to any person, or such conduct
as is likely to cause in any person a reasonable apprehension of
criminal force, harm or mischief, to them or to their property.

195. A person who wilfully removes any customs seal from any
ship, aircraft, vehicle, train or package without the authority of a
proper officer or in circumstances contrary to the regulations or who
wilfully alters, defaces, obliterates or imitates, any mark placed by an
officer on any package commits an offence and shall be liable on con-
viction to imprisonment for a term not exceeding three years or to a
fine not exceeding two thousand five hundred dollars or to both.

196. A person who by any means procures or induces, or
authorises another person to procure or induce, any other person to
commit or assist in the commission of any offence under this Act,
commits an offence and shall be liable on conviction to imprisonment
for a term not exceeding one year.

123

Remo-
ving or
defacing
customs
seals

Inducing
another
to com-
mit
offence

No. 1 East African Community Customs Management 2005
Offence
to warn
offender

Offence
to
assume
character
of officer

Master
of ves-
sel, etc.,
used for
smug-
gling
commits
an
offence
197.-(1) A person who, with intent to obstruct any officer in the
execution of his or her duty, warns, or does any act for the purpose of
warning, any other person engaged in the commission of an offence
under this Act, whether or not such other person is in a position to take
advantage of such warning or act, commits an offence and shall be
liable on conviction to imprisonment for a term not exceeding two
years or to a fine not exceeding two thousand five hundred dollars or
to both.

(2) Where any person is charged with an offence under this section,
the burden of proving that anything done by him or her was not done
with intent shall lie upon that person.

(3) A person may prevent any other person from giving any
warning and for that purpose may enter upon any land and shall not be
liable to any legal proceedings.

198. A person, not being an officer, who takes or assumes the name,
designation, character or appearance of an officer for the purpose of-

(a) obtaining admission to any aircraft, vessel, vehicle,
premises or place; or

(b) doing or procuring to be done any act which he or she
would not be entitled to do or procures to be done on his or
her own authority; or

(c) doing any unlawful act,
commits an offence and shall be liable on conviction to imprisonment
for a term not exceeding three years in addition to any other
punishment to which he or she may be liable for the commission of any
unlawful act.

199. A master of any aircraft or vessel, and any person in charge of
a vehicle, which is within a Partner State and-

(a) which has any secret or disguised place adapted for con-
cealing goods, or any device adapted for smuggling goods;
or

(b) which has in it, or in any manner attached to it, or which is
conveying, or has conveyed in any manner, any goods

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No. 1 East African Community Customs Management 2005

imported, or carried coastwise, or intended for exportation,
contrary to this Act; or

(c) from or in which any part of the cargo of such aircraft,
vessel or vehicle has been thrown overboard, destroyed or
staved, in order to prevent seizure,
commits an offence and shall be liable-

(i) in the case of the master of a vessel of less than two
hundred and fifty tons register, to a fine not exceeding
seven thousand dollars and any vessel and goods in
respect of which such offence has been committed
shall be liable to forfeiture;

(ii) in the case of the master of an aircraft or vessel of two
hundred and fifty tons register or more, to a fine not
exceeding ten thousand dollars ; and the aircraft or
vessel in respect of which such offence has been
committed may be seized and detained until the fine is
paid or security given, and any goods in respect of
which such offence has been committed shall be liable
to forfeiture;

(iii) in the case of the person in charge of a vehicle, to a
fine not exceeding five thousand dollars and the
vehicle and goods in respect of which such offence
has been committed shall be liable to forfeiture.

200. A person who-
(a) imports or carries coastwise-

(i) any prohibited goods, whether or not the goods are
unloaded; or

(ii) any restricted goods contrary to any condition
regulating the importation or carriage coastwise of
such goods, whether or not the goods are unloaded;

(b) unloads after importation or carriage coastwise-

125
Offences
related to
prohibi-
ted,
restri-
cted, and
uncus-
tomed
goods

No. 1 East African Community Customs Management 2005

(i) any prohibited goods; or

(ii) any restricted goods which have been imported or
carried coastwise contrary to any condition regulating
such importation or carriage coastwise;

(c) exports, carries coastwise, or puts on board any aircraft,
vehicle or vessel, or brings to any Customs airport, Customs
area, or place, to be put on board, for exportation or for use
as stores or for carriage coastwise-

(i) any prohibited goods; or

(ii) any restricted goods contrary to any condition
regulating the exportation, use as stores, or carriage
coastwise, of such goods;

(d) acquires, has in his or her possession, keeps or conceals, or
procures to be kept or concealed, any goods which he or she
knows, or ought reasonably to have known, to be –

(i) prohibited goods; or

(ii) restricted goods which have been imported or carried
coastwise contrary to any condition regulating such
importation or carriage coastwise; or

(iii) uncustomed goods,

commits an offence and shall be liable on conviction to imprisonment
for a term not exceeding five years or to a fine equal to fifty percent of
the dutiable value of the goods involved, or both.

Payment
of duty
in addi-
tion to
fine 201. Where on conviction for an offence under this Act, a person is
liable to pay a fine, that person shall, unless the goods are prohibited
goods or are ordered to be forfeited under this Act, pay duty on the
goods in addition to the fine.

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No. 1 East African Community Customs Management 2005

202. A person who imports or exports any goods-
(a) which are concealed in any way;
(b) which are packed in any package, whether or not together
with other goods in a manner likely to deceive any officer;

(c) which are contained in any package of which the entry or
application for shipment does not correspond with such
goods,
commits an offence and shall be liable on conviction to imprisonment
for a term not exceeding five years or to a fine equal to fifty percent
of the value of the goods involved.

203. A person who, in any matter relating to the Customs-
(a) makes any entry which is false or incorrect in any
particular, or

(b) makes or causes to be made any declaration, certificate,
application, or other document, which is false or incorrect
in any particular; or

(c) when required in accordance with this Act to answer any
question put to him or her by an officer, refuses to answer
such question or makes any false or incorrect statement in
reply thereto; or

(d) obtains any drawback, rebate, remission, or refund, or duty
which to his or her knowledge he or she is not entitled to
obtain; or

(e) in any way is knowingly concerned in any fraudulent
evasion of the payment of any duty; or

(f) except by authority moves, alters, or in any way interferes
with any goods subject to Customs control; or

(g) brings into a Partner State, or has in his or her possession,
without lawful excuse any blank or incomplete invoice, bill
head, or other similar document, capable of being filled up
and used as an invoice for imported goods; or

(h) counterfeits or in any way falsifies, or knowingly uses when
counterfeited or in any way falsified, any documents

127
Offence
to import
or export
con-
cealed
goods

Offence
to make
or use
false
docu-
ments

No. 1 East African Community Customs Management 2005

Offence
to refuse
to pro-
duce
docu-
ments,
etc.

Offence
to inter-
fere with
Customs
gear

Uncusto
med
goods
found to
be
reported

Goods
offered
on pre-
tence of
being
smug-
gled

Aiders,
abettors,
etc.

General
penalty
required or issued by, or used for the purpose of, the
Customs,
commits an offence and shall be liable on conviction to imprisonment
for a term not exceeding three years or to a fine not exceeding ten
thousand dollars.

204. A person who, when required in accordance with this Act-
(a) to produce any book, document, or other thing, in his or her
possession or under his or her control; or

(b) to perform any act, refuses or fails to do so, commits an
offence.

205. A person who cuts away, casts adrift, destroys, damages,
defaces, or in any way interferes with, any aircraft, vessel, vehicle,
buoy, anchor, chain, rope, mark, or other thing used for the purposes of
the Customs commits an offence and shall be liable on conviction to a
fine not exceeding two thousand five hundred dollars.

206. A person who, on finding any uncustomed goods on land or
floating upon, or sunk in, the sea, fails to report such discovery to the
nearest officer commits an offence and shall be liable to a fine not
exceeding two thousand five hundred dollars and any goods in respect
of which such offence has been committed shall be liable to forfeiture.

207. Where any goods are offered for sale under the pretence that
they are uncustomed goods, then such goods whether or not they are in
fact uncustomed, shall be liable to forfeiture.

208. A person who aids, abets, counsels or procures the commission
of an offence under this Act shall be deemed to have committed such
offence and shall be liable to the penalty prescribed for such offence
under this Act.

209.-(1) A person who commits an offence under this Act for which
no specific penalty is provided shall be liable to a fine not exceeding
five thousand dollars.

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No. 1 East African Community Customs Management 2005

(2) Where, on conviction for an offence under this Act, a person
becomes liable to a fine not exceeding a specified amount, the court
may impose a fine not exceeding three times the value of any goods in
respect of which the offence was committed or the specified amount,
whichever is the greater; and for the purpose of determining the value
of those goods, the Commissioner shall cause the goods to be
appraised by the proper officer who shall appraise the goods
according to section 122, and no regard shall be had to any damage or
injury sustained by such goods.

(3) A certificate of the appraised value given under the hand of the
Commissioner, shall be prima facie evidence of the value of those
goods.

210. In addition to any other circumstances in which goods are
liable to forfeiture under this Act, the following goods shall be liable
to forfeiture-

(a) any prohibited goods;
(b) any restricted goods which are dealt with contrary to any
condition regulating their importation, exportation or
carriage coastwise;

(c) any uncustomed goods;
(d) any goods which are imported, exported or transferred,
concealed in any manner, or packed in any package,
whether with or without other goods in a manner appearing
to be intended to deceive any officer;

(e) any goods which are imported, exported or transferred con-
tained in any package of which the entry, application for
shipment, or application to unload does not correspond with
such goods;

(f) any goods subject to Customs control which are moved,
altered, or in any way interfered with, except with the
authority of any officer;

(g) any goods in respect of which, in any matter relating to the
Customs, any entry, declaration, certificate, application or
other document, answer, statement or representation, which

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Goods
liable to
forfeiture

No. 1 East African Community Customs Management 2005

is knowingly false or knowingly incorrect in any particular
has been delivered, made or produced; and

(h) any goods in respect of which any drawback, rebate,
remission or refund of duty has been unlawfully obtained.

Vessels,
etc., liable to forfeiture

Provisio ns rela- ting to goods liable to forfeiture

211.-(1) A vessel of less than two hundred and fifty tons register,
and any vehicle, animal, or other thing, made use of in the importation, landing,
removal, conveyance, exportation, or carriage coastwise, of any goods liable to
forfeiture under this Act shall itself be liable to forfeiture.

(2) An aircraft or any vessel of two hundred and fifty tons register or more
made use of in the importation, landing, removal, conveyance, exportation, or
carriage coastwise, of any goods liable to forfeiture under this Act shall not
itself be liable to forfeiture but the master of any such aircraft or vessel commits
an offence and shall be liable to a fine not exceeding ten thousand dollars; and
such aircraft or vessel may be seized and detained until the fine is paid or
security given.

(3) Where any vessel, vehicle, animal, or other thing, is liable to forfeiture
under this Act, then the tackle, apparel, furniture, and all other gear, used in
connection therewith shall also be liable to forfeiture.

212.-(1) Where any goods are liable to forfeiture under this Act, then the
package in which such goods are, and all the contents of such package, shall also
be liable to forfeiture.

(2) Where any goods which are prohibited goods or restricted goods have been
shipped for importation without knowledge by the shipper of the prohibition or
restriction and before, in the opinion of the Commissioner, the expiration of
a reasonable time for such information to be available at the port of
shipment, then, notwithstanding this Act, the goods shall not on importation be
liable
to forfeiture but shall be re-exported, or otherwise disposed of, in such manner as
the Commissioner may determine; and pending the
re-exportation or disposal of the goods shall be subject to Customs control.

130

2005

213.-(1) An officer or a police officer or an authorised public
officer may seize and detain any aircraft, vessel, vehicle, goods,
animal or other thing liable to forfeiture under this Act or which he or
she has reasonable ground to believe is liable to forfeiture; and that
aircraft, vessel, vehicle, goods animals or other thing may be seized
and detained regardless of the fact that any prosecution for an offence
under this Act which renders that thing liable to forfeiture has been, or
is about to be instituted.

(2) Where an aircraft, vessel, vehicle, goods, animal or other thing
is seized and detained under this Act by a person other than a proper
officer, the aircraft, vessel, vehicle, goods, animal or other thing seized
and detained under this Act shall be delivered with full written
particulars to the nearest Customs office or to such other place of secu-
rity as the proper officer may consider appropriate;

(3) Where delivery of an aircraft, vessel, vehicle, goods, animal or
other thing is not practical under subsection (2), notice in writing shall
be given to the Commissioner at the nearest Customs office, of the
seizure and detention, with full particulars of the aircraft, vessel,
vehicle, goods, animal or thing seized and detained.

(4) Where a person seizing and detaining a thing liable to forfeiture
under this Act is a police officer and that thing is or may be required
for use in connection with any court proceedings to be brought
otherwise than under this Act, the police officer may, subject to
sub-section (5) keep that thing in the custody of the police until those
proceedings are completed or until it is decided that no proceedings
shall be instituted.

(5) Where a thing seized is retained in the custody of the police
under subsection (4) the following provisions shall apply-

(a) the police officer shall give notice in writing of the seizure
and detention, and the intention to retain the thing in the
custody of the police, together with full particulars of the
thing, to the nearest Customs office;

(b) an officer shall be permitted to examine that thing and take
account at any time while it remains in the custody of the
police;

131
Power to
seize
goods
liable to
forfei-
ture, etc.

No. 1 East African Community Customs Management 2005

(c) where the court orders the release of that thing the
Commissioner shall assess and collect any duty payable on
that thing prior to restoration of the thing to the owner.

(6) Where a person, not being a proper officer, seizes and detains or
has custody of the thing seized and detained, fails to comply with the
requirements of this section or with any direction of the Commissioner,
he or she commits an offence and shall be liable on conviction to
imprisonment for a term not exceeding three years or to a fine not
exceeding two thousand dollars or to both.

(7) The Commissioner may, at any time prior to the commencement
of any proceedings relating to any aircraft, vessel, vehicle, goods,
animal or other thing which had been seized under this Act, if he or she
is satisfied that it was not liable to seizure, release and return it to the
person from whom it was seized.

Proce-
dure on
seizure 214.-(1) Where any thing has been seized under this Act, then,
unless such thing was seized in the presence of the owner of the thing,
or, in the case of any aircraft or vessel, of the master thereof, the
officer effecting the seizure shall, within one month of the seizure, give
notice in writing of the seizure and of the reasons to the owner or, in
the case of any aircraft or vessel, to the master:

Provided that-
(a) notice of seizure shall not be given in any case where any
person has, within a period of one month, been prosecuted
for the offence by reason of which the thing has been
seized, or the offence has been compounded under Part
XVIII, and if, after any notice has been given but before
condemnation of the thing in accordance with this Act-

(i) any such prosecution is brought, then such thing shall
be dealt with in accordance with section 215 as if
such notice had been given;

(ii) the offence is so compounded, then such thing shall be
dealt with in accordance with Part XVIII as if no such
notice had been given;

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No. 1 East African Community Customs Management 2005

(b) where any such thing has been seized in the presence of any
person coming within the definition of owner for the
purposes of this Act, then it shall not be necessary for the
officer effecting the seizure to give notice to any other
person coming within such definition;

(c) a notice given to any person coming within such definition
of owner shall be deemed to be notice to all other persons
coming within such definition;

(d) where a person coming within such definition of owner is
not known, then it shall not be necessary for the officer
effecting the seizure to give notice to any person.

(2) Where any goods which are of a perishable nature or are animals
are seized, the Commissioner may direct that such goods shall be sold
forthwith, either by public auction or by private treaty, and that the
proceeds of the sale shall be retained and dealt with as if they were the
seized goods.

(3) Where any thing liable to forfeiture under this Act has been
seized, then-

(a) if any person is being prosecuted for the offence by reason
of which the thing was seized, the thing shall be detained
until the determination of such prosecution and dealt with in
accordance with section 215;

(b) in any other case, the thing shall be detained until one month
after the date of the seizure, or the date of any notice given
under subsection (1), as the case may be; and if a claim is
not made as provided in subsection (4) within a period of
one month, such thing shall be deemed to be condemned.

(4) Where any thing liable to forfeiture under this Act has been
seized, then, subject to subsection (1) (a) and subsection (3)
(a), the owner may, within one month of the date of the
seizure or the date of any notice given under subsection (1),
as the case may be, by notice in writing to the
Commissioner claim such thing.

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No. 1 East African Community Customs Management 2005

(5) Where any notice of claim has been given in accordance
with subsection (4), then the thing seized shall be detained
by the Commissioner to be dealt with in accordance with
this Act.

(6) The Commissioner may permit such thing to be delivered to
the person making a claim, in this Part referred to as the
claimant under subsection (4), subject to the claimant
giving security for the payment of the value of the thing, as
determined by the Commissioner in the event of
condemnation of the thing.
Effect of
convic-
tion, etc.
on things
liable to
forfeiture

Proce-
dure
after
notice of
claim
215.-(1) Where any person is prosecuted for an offence under this
Act and any thing is liable to forfeiture by reason of the commission of
the offence, then the conviction of the person of the offence shall,
without further order, have effect as the condemnation of the thing.

(2) Where any person is prosecuted for an offence under this Act
and any thing is liable to forfeiture by reason of the commission of
such offence, then, on the acquittal of such person, the court may order
the thing either-

(a) to be released to the person from whom it was seized or to
the owner thereof; or

(b) to be condemned.

216.-(1) Where any notice of claim has been given to the
Commissioner in accordance with section 214, the Commissioner may,
within a period of two months from the receipt of such claim, either-

(a) by notice in writing to the claimant, require the claimant to
institute proceedings for the recovery of such thing within
two months of the date of such notice; or

(b) himself or herself institute proceedings for the
condemnation of such thing.

(2) Where the Commissioner fails within the period of two months
either to require the claimant to institute proceedings, or the
Commissioner fails to institute proceedings, in accordance with

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No. 1 East African Community Customs Management 2005

subsection (1), then such thing shall be released to the claimant:

Provided that if the thing is prohibited goods or restricted
goods which has been imported, or carried coastwise or
attempted to be exported in contravention of this Act, the thing
shall not be released to the claimant but may be disposed of in
such manner as the Commissioner may direct.

(3) Where the Commissioner has, in accordance with subsection (1),
required the claimant to institute proceedings within the period of two
months and the claimant has failed to do so, then on the expiration of
the period the thing shall be condemned and shall be forfeited and may
be sold or otherwise disposed of in such manner as the Commissioner
may direct.

(4) Where any proceedings have been instituted in accordance with
this section, then-

(a) if the court is satisfied that a thing was liable to forfeiture
under this Act, the thing shall be condemned;

(b) if the court is not so satisfied, the thing shall be released to
the claimant:
Provided that the court shall not release the thing to
the claimant unless it is satisfied that the claimant is the
owner or, by reason of any interest in the thing, is
entitled to the possession thereof and if the court is not
so satisfied, the thing shall be condemned as if no claim
had been made.

217.-(1) Where any thing has been seized under this Act, as being
liable to forfeiture, then the condemnation of the thing shall in no way
be affected by the fact that any owner of the thing was in no way
concerned with the act which rendered the thing liable to forfeiture.

(2) Where any thing is condemned under this Act, then-

(a) subject to section 218, the thing shall be forfeited and may
be sold, destroyed, or otherwise disposed of in such manner
as the Commissioner may deem fit;

135
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sions
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to con-
demna-
tion

No. 1 East African Community Customs Management 2005

(b) the condemnation of the thing shall have effect as from the
date when the liability to forfeiture arose;

(c) the condemnation shall, subject to any appeal in any
proceedings which resulted in the condemnation be final
and, save as provided in section 218, no application or
proceedings for restoration or in detinue by any person shall
lie.

Restora-
tion of
seizures

Power of
Commis
sioner to
com-
pound
offence
218. Where any thing has been seized under this Act then the
Council may, whether or not the thing has been condemned, direct that
that thing be released and restored to the person from whom it was
seized or to the owner, upon such conditions as the Council may deem
fit.

PART XVIII
S
ETTLEMENT OF CASES BY THE COMMISSIONER

219.-(1) The Commissioner may, where he or she is satisfied that
any person has committed an offence under this Act in respect of
which a fine is provided or in respect of which any thing is liable to
forfeiture, compound the offence and may order such person to pay a
sum of money, not exceeding the amount of the fine to which the
person would have been liable if he or she had been prosecuted and
convicted for the offence, as the Commissioner may deem fit; and the
Commissioner may order any thing liable to forfeiture in connection
with the offence to be condemned.

(2) The Commissioner shall not exercise his or her powers under
subsection (1) unless the person admits in a prescribed form that he or
she has committed the offence and requests the Commissioner to deal
with such offence under this section.

(3) Where the Commissioner makes any order under this section-
(a) the order shall be put into writing and shall have attached to
it the request of the person to the Commissioner to deal with
the matter;

(b) the order shall specify the offence which the person
committed and the penalty imposed by the Commissioner;

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No. 1 East African Community Customs Management 2005

(c) a copy of the order shall be given to the person if he or she
so requests;

(d) the person shall not be liable to any further prosecution in
respect of the offence; and if any prosecution is brought it
shall be a good defence for the person to prove that the
offence with which he or she is charged has been
compounded under this section; and

(e) the order shall be final and shall not be subject to appeal and
may be enforced in the same manner as a decree or order of
the High Court.

PA RT X I X
L
EGAL PROCEEDINGS

220.- (1) Without prejudice to the powers of any other court of
competent jurisdiction, a prosecution for an offence under this Act may
be heard and determined before a subordinate court; and where any
such court hears and determines the prosecution it shall have
jurisdiction to impose any fine or any sentence of imprisonment which
may be imposed under this Act on a person convicted of the offence:
Provided that all proceedings of civil nature shall be filed and
determined in accordance with the provisions of the relevant
procedural legislation in the Partner State.

(2) Without prejudice to the powers of any other court of competent
jurisdiction, any proceedings under Part XVII relating to any claim to
any thing which has been seized under this Act may be heard and
determined, without limit of amount, in civil proceedings before a
subordinate court.

(3) Save where otherwise expressly provided, any person brought
before a court for any offence under this Act shall be dealt with in
accordance with the laws relating to criminal procedure of a Partner
State in which the court is situate.

221.-(1) Where under this Act any proceedings may be brought by
or against the Commissioner, the Commissioner may sue or be sued in
the name of the Commissioner and may for all purposes be described

137

Procee-
dings tri-
able in a
subordi-
nate
court

Actions
by or
against
the
Commi-
ssioner

No. 1 East African Community Customs Management 2005

by that name; and, notwithstanding that any such action may lie in tort,
the Commissioner shall be responsible for the acts and defaults of any
officer as if such officer were his or her servant or agent:

Provided that nothing herein contained shall confer any right
of action against the Commissioner in his or her representative
capacity, whether in contract or in tort.

(2) Where under this Act any proceedings are brought by or against
the Commissioner in his or her representative capacity, then costs may
be awarded to or against the Commissioner.

(3) Where under this Act any proceedings are brought by or against
the Commissioner in his or her representative capacity and-

(a) any sums or costs are recovered by the Commissioner, the
sums or costs shall be credited to the Customs revenue;

(b) any damages or costs are ordered to be paid by the
Commissioner, the damages or costs shall be paid out of the
monies appropriated for administration of customs in a
Partner State and the Commissioner shall not be personally
liable.
Limita-
tion of
proceed-
ings

Provisi-
ons rela-
ting to
proof,
etc., in
procee-
dings
222. Proceedings for an offence under this Act may be
commenced, and anything liable to forfeiture under this Act may be
seized, within five years of the date of the offence.

223. In any proceedings under this Act-

(a) the onus of proving the place of origin of any goods or the
payment of the proper duties, or the lawful importation,
landing, removal, conveyance, exportation, carriage coast-
wise, or transfer, of any goods shall be on the person pros-
ecuted or claiming anything seized under this Act;

(b) the averment by the Commissioner-

(i) that any person is or was an officer or is or was
employed in the prevention of smuggling;

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No. 1 East African Community Customs Management 2005

(ii) that any goods were staved, broken, destroyed, or
thrown overboard, or were so staved, broken,
destroyed or thrown overboard for the purpose of
preventing the seizure or the securing of the goods
after seizure;

(iii) that any act was done within the limits of any port or
at, in, or over, any part of a Partner State;

(iv) that the Commissioner, or proper officer is or is not
satisfied as to any matter as to which it is required to
be satisfied under this Act;

(v) that the Commissioner has directed or requested any
proceedings under this Act to be instituted,

shall be prima facie evidence of such fact;

(c) a certificate purporting to be signed by the Government
Analyst, the Government Chemist or any designated
laboratory of any Partner State shall be admissible in
evidence and shall be prima facie evidence of the matters
recorded in the certificate;

(d) the production of any document purporting to be signed or
issued by the Council, the Commissioner, or any person in
the service of the Customs or the Government of any
Partner State, shall be prima facie evidence that such
document was so signed or issued;

(e) a copy, certified under the hand of the responsible officer of
any declaration in any book or document required to be kept
for the purposes of the Customs laws shall be admissible in
evidence and shall be prima facie evidence of such
declaration and of the matters recorded in the book or
document;

(f) any certificate, official report or other document purporting
to be certified under the hand and seal or stamp of the office
of a principal officer of Customs or of any other competent
authority in a foreign country and produced by the

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No. 1 East African Community Customs Management 2005

Commissioner shall be admissible in evidence and shall be
prima facie evidence of the matters recorded therein;

(g) a certificate or a copy of a document or publication purport-
ing to be signed or issued by or under the authority of the
Customs Co-operation Council and produced by the
Commissioner shall be admissible in evidence and shall be
prima facie evidence of the matters contained therein;

(h) a certificate or a copy of a document or publication
purporting to be signed or issued by or under the authority
of the Directorate of Customs and produced by the
Commissioner shall be admissible in evidence and shall be
prima facie evidence of the matters contained therein;

(i) any certificate or copy of a document purporting to be signed
or issued by or under the authority of any institution,
organisation or firm recognised and authorised and by the
Government under any agreement and produced by the
Commissioner shall be admissible in evidence and shall be
evidence of the matters contained therein;

(j) an officer shall be deemed to be a competent witness
notwithstanding that such officer is entitled to any reward;

(k) the fact that security has been given by bond or otherwise for
the payment of any or for the compliance with any
condition in respect of the non-payment of which or
non-compliance with which the proceedings are brought
shall not be a defence.

Provi-
sions relating to penal- ties for offences

224.-(1) Where any court imposes on a person a fine for an offence under this
Act in relation to which an alternative of imprisonment is not specified, then
the court may order that person, in default of payment of the fine, to be
imprisoned for a term not exceeding-

(a) six months, where the fine imposed does not exceed one thousand
dollars;

(b) twelve months, where the fine imposed exceeds one thousand
dollars.

140

2005

(2) Where any person is convicted of an offence under this Act
involving intent to defraud, then the maximum fine which may be
imposed on such person shall be double that otherwise provided under
this Act.

(3) Where any person is convicted of an offence under this Act and
is liable to a fine of five hundred dollars or more and the person has
previously been convicted of an offence under this Act or has
previously been ordered to pay any sum of money under Part XVIII
and the order has been enforced by any court, then the court before
which the person is so convicted may order the person to be
imprisoned for any term not exceeding three years, or to pay the fine
to which he or she is so liable, or to both imprisonment and fine.

(4) Where any offence under this Act is committed by a body
corporate and it is proved that such offence has been committed with
the consent or connivance of, or is attributable to any neglect on the
part of, any director, manager, secretary, or similar officer, of the body
corporate, or any person purporting to act in any such capacity, then he
or she as well as the body corporate shall be deemed to have
committed that offence and shall be liable to be proceeded against and
punished accordingly.

225.-(1) A person charged with an offence under this Act may be
proceeded against, tried, and punished, in any place in which he or she
may be in custody for that offence as if the offence had been
committed in such place; and the offence shall for all purposes
incidental to, or consequential upon, the prosecution, trial, or
punishment, thereof be deemed to have been committed in that place:

Provided that nothing in this section shall preclude the
prosecution, trial, and punishment, of the person in any place in
which, but for the provisions of this section, the person might
have been prosecuted, tried, and punished.

(2) Notwithstanding subsection (1), a person charged with an
offence under this Act may apply to be tried in another place other than
the place in which the offence was committed.

226.-(1) It shall not be a requirement in any proceedings under this
Act to disclose the fact that any person received any information

141
Place of
trial

Prote-
ction of
witness-
es

No. 1 East African Community Customs Management 2005

relating to any Customs matter, or the nature of the information, or the
name of the person who gave that information.

Reaso-
nable
grounds
of
defence
in any
action
against
officer
(2) An officer appearing as a witness in any proceedings shall not be
compelled to produce any confidential reports made or received by
him or her in his or her official capacity or any confidential
information received by him or her in that capacity.

227.-(1) Where any proceedings, whether by way of prosecution or
otherwise, are taken under this Act, and-

(a) the proceedings result in a determination in favour of any
person prosecuted, or in favour of any owner claiming any
thing which has been seized;

(b) the proceedings arise out of any act done, whether by way
of seizure or otherwise, by any officer in the execution or
intended execution of his or her duty under this Act; and

(c) the court before which the proceedings are determined finds
that there were reasonable grounds for such act, then the
court shall, on request made by or on behalf of the officer,
certify on the record; and a certified copy of the finding
shall, on the request of the officer, be delivered to him or her
and shall be admissible in evidence in any proceedings in
proof of such finding.

(2) An officer shall not be liable to any action or other proceedings
on account of any act in respect of which a court has, under subsection
(1), found that there were reasonable grounds for such act.

(3) Where any proceedings are brought against any officer on
account of any act done, whether by way of seizure or otherwise, in the
execution or intended execution of his or her duty under this Act and
judgment is given against such officer, then, notwithstanding that in
any proceedings referred to in subsection (1), a court has not found that
there were reasonable grounds for such act, if the court before which
proceedings are heard is satisfied that there were reasonable grounds
for such act, the plaintiff shall be entitled to recover any thing seized,
or the value of the thing, but shall not otherwise be entitled to any
damages and no costs shall be awarded to either party.

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No. 1 East African Community Customs Management 2005

228. A proper officer may appear and prosecute in any prosecution
before a subordinate court for any offence under this Act.

PA RT X X
A
PPEALS

229.-(1) A person directly affected by the decision or omission of
the Commissioner or any other officer on matters relating to Customs
shall within thirty days of the date of the decision or omission lodge an
application for review of that decision or omission.

(2) The application referred to under subsection (1) shall be lodged
with the Commissioner in writing stating the grounds upon which it is
lodged.

(3) Where the Commissioner is satisfied that, owing to absence
from the Partner State, sickness or other reasonable cause, the person
affected by the decision or omission of the Commissioner was unable
to lodge an application within the time specified in subsection (1), and
there has been no unreasonable delay by the person in lodging the
application, the Commissioner may accept the application lodged after
the time specified in subsection (1).

(4) The Commissioner shall, within a period not exceeding thirty
days of the receipt of the application under subsection (2) and any
further information the Commissioner may require from the person
lodging the application, communicate his or her decision in writing to
the person lodging the application stating reasons for the decision.

(5) Where the Commissioner has not communicated his or her
decision to the person lodging the application for review within the
time specified in subsection (4) the Commissioner shall be deemed to
have made a decision to allow the application.

(6) During the pendency of an application lodged under this section
the Commissioner may at the request of the person lodging the
application release any goods in respect of which the application has
been lodged to that person upon payment of duty as determined by the
Commissioner or provision of sufficient security for the duty and for
any penalty that may be payable as determined by the Commissioner.

143
Power of
officer to
prose-
cute

Applica-
tion for
review to
Commi-
ssioner

No. 1 East African Community Customs Management 2005
Appeals
to tax
appeals
tribunal

Establi-
shment
of tax
appeals
tribunals

Attenda-
nce of
master
before
proper
officer

Provi-
sions
relating
to pre-
scribed
forms
230.-(1) A person dissatisfied with the decision of the
commissioner under section 229 may appeal to a tax appeals tribunal
established in accordance with section 231.

(2) A person intending to lodge an appeal under this section shall
lodge the appeal within forty-five days after being served with the
decision, and shall serve a copy of the appeal on the Commissioner.

231. Subject to any law in force in the Partner States with respect to
tax appeals, each Partner State shall establish a tax appeals tribunal for
the purpose of hearing appeals against the decisions of the
Commissioner made under section 229.

PART XXI
M
ISCELLANEOUS PROVISIONS
232. Where under the provisions of this Act, the master or agent of
any aircraft or vessel is required to answer any questions put to him or
her by the proper officer, and the aircraft or vessel has not left its final
position, anchorage, or berth, preparatory to leaving a Partner State,
then the proper officer may require the master to attend before the
proper officer at the office of the proper officer for the purpose of
answering such questions:

Provided that the master may, with the consent of the proper
officer, depute a senior officer of the aircraft or vessel to attend at
the office for such purpose.

233.-(1) Where the form of any entry, bond, or other document,
required or authorised for the purposes of this Act has been prescribed,
then all the entries, bonds, or other documents, shall be in the
prescribed form and shall contain all the prescribed particulars.

(2) Where any prescribed form contains, by way of note or
otherwise, a clear direction or indication of any requirement as to-

(a) the colour or size of the form;
(b) the number of copies of the form to be tendered;
(c) the nature or form of the information to be furnished;

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No. 1 East African Community Customs Management 2005

(d) any action to be taken by the person concerned, or his or her
agent, in the transaction in which the form is used;

(e) the receipts to be signed by any person in proof of the fact
that the goods described in the form have been received for
carriage or otherwise,

the requirements indicated shall be deemed to have been
prescribed.

(3) The proper officer may require copies of any prescribed form in
addition to the numbers indicated on the form.

234.-(1) Where any document required or authorised for the
purposes of this Act contains any words not in the English language,
the person producing or using such documents may be required to
produce a correct English translation of such words.

(2) Where any person is required to submit any form for the purpose
of this Act, the proper officer may require that person to submit as
many copies as the proper officer may deem necessary.

(3) Where the proper officer requires any document to be produced
for any goods which have been imported, exported, transferred, or
declared in transit, the proper officer may require the document to be
submitted in original and duplicate and the proper officer may retain
the original.

(4) Any person who fails to comply with a requirement of the
proper officer under this section commits an offence.

235.-(1) The proper officer may, within five years of the date of
importation, exportation or transfer or manufacture of any goods,
require the owner of the goods or any person who is in possession of
any documents relating to the goods-

(a) to produce all books, records and documents relating in any
way to the goods; and
(b) to answer any question in relation to the goods; and

(c) to make declaration with respect to the weight, number,
145
Provi-
sions
relating
to all
docu-
ments

Produ-
ction of
docu-
ments

No. 1 East African Community Customs Management 2005

measure, strength, value, cost, selling price, origin,
destination or place of transhipment of the goods, as the
proper officer may deem fit.

(2) Where any owner fails to comply with any requirement made by
the proper officer under this section, the proper officer may refuse
entry or delivery, or prevent exportation or transfer, of the goods, or
may allow the entry, delivery, or exportation or transfer, upon the
deposit of such sum, pending the production of the books and
documents, as the proper officer may deem fit; and any deposit made
shall be forfeited and paid into the Customs revenue if the documents
are not produced within three months, or such further time as the
proper officer may permit from the date of the deposit.

(3) Where any requirement made by the proper officer under this
section relates to goods which have already been delivered, exported,
or transferred and the owner fails to comply with the requirement, the
proper officer may refuse to allow the owner to take delivery, export or
transfer any other goods.

(4) The proper officer may retain any document produced by any
owner under the provisions of this section but such owner shall be
entitled to a copy of the document certified under the hand of the
responsible officer; and the certified copy shall be admissible in
evidence in all courts and shall have equal validity with the original.

(5) A person who fails to comply with any requirement made under
this section commits an offence.
Inspe-
ction or
audit 236. The Commissioner shall have the powers to-

(a) verify the accuracy of the entry of goods or documents
through examination of books, records, computer stored
information, business systems and all relevant customs doc-
uments, commercial documents and other data related to the
goods;

(b) question any person involved directly or indirectly in the
business, or any person in the possession of documents and
data relevant to the goods or entry;

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No. 1 East African Community Customs Management 2005

(c) inspect the premises of the owner of the goods or any other
place of the person directly or indirectly involved in the
operations; and

(d) examine the goods where it is possible for the goods to be
produced.

237.-(1) Where under this Act any declaration is required or
authorised to be made, the declaration may be made before any judge,
magistrate, justice of the peace, notary public, or Commissioner for
oaths, or before any officer authorised by the Commissioner for that
purpose.

(2) Where under this Act any document is required or authorised to
be signed in the presence of the Commissioner, where the document is
signed in the presence of a witness who is approved by, and whose
signature is known to, the Commissioner or any other officer
authorized by the Commissioner, the document shall be deemed for the
purposes of this Act to have been signed in the presence of the
Commissioner.

238. Where any person requires a receipt for any money paid and
brought to account in respect of any entry, that person shall furnish the
proper officer with an additional copy, marked as such, of the entry and
the additional copy duly signed by the proper officer and
acknowledging receipt of the money shall be given to that person and
shall constitute the receipt for the payment.

239.-(1) Where under this Act any notice or other document is
required or authorised to be served on or given or delivered to, the
Commissioner or any other officer, the notice or other document may
be served, given or delivered-

(a) by delivering it personally to the Commissioner;

(b) by leaving it at the office of the Commissioner;

(c) by sending it by post to the Commissioner; or

(d) by any other means of transmission of documents provided
for under Partner State legislation.

147

Provi-
sions
relating
to decla-
rations
and sig-
nature

Receipts
for pay-
ment on
entry

Service
of
notices,
etc.

No. 1 East African Community Customs Management 2005

(2) Where under this Act any notice or other document is required
or authorised to be served on, or given or delivered to, any person by
the Commissioner, the notice or other document may be served, given,
or delivered-

(a) by delivering it personally to such person;

(b) by leaving it at the usual or last known place of address of
such person;

(c) by sending it by post addressed to the person at his or her
usual or last known place of address; or

(d) by any other means of transmission of documents provided
for under Partner State legislation.
Provi-
sions
relating
to load-
ing, etc.,
of goods

Proper
officer
may take
samples

Rewards
240. Where under this Act any goods are required or authorised to
be-

(a) loaded, unloaded, or removed to any place for security,
examination, weighing, sorting, or any other purpose, prior
to delivery or, in the case of goods for export, to
exportation, or in the case of goods to be transferred, to
transfer, all such operations shall be performed by or at the
expense of the owner of the goods;

(b) unpacked, sorted, piled, or otherwise prepared for
examination, all such operations shall be performed by and
at the expense of the owner of the goods and in such
manner as the proper officer may require in order to enable
the proper officer examine and take account of the goods.

241. The proper officer may take samples of any goods subject to
customs control for such purposes as the Commissioner may deem
necessary; and any such samples shall be disposed of and accounted
for in such manner as the Commissioner may direct.

242. The Commissioner may award to any person-
(a) who has arrested or has assisted in the arrest of any other
person under this Act such reward, as the Commissioner
may deem fit on the conviction of such other person;

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No. 1 East African Community Customs Management 2005

(b) who has seized any goods or by whose aid any goods are
seized under this Act such reward, not exceeding the value
of the goods seized, as the Commissioner may deem fit;

(c) who has provided information that has led to the recovery of
revenue, such a reward as the Commissioner may deem fit;
(d) by whose aid any offence is compounded in accordance
with Part XVIII of this Act such reward as the
Commissioner may deem fit.

243. Where any goods are sold under this Act, then the provisions
of any legislation of any of the Partner States relating to auctioneers
shall apply to such sale.

244.-(1) The Commissioner may license any vessel of less than two
hundred and fifty tons or vehicle intended to be used for the
conveyance of any goods subject to Customs control and any
transporter upon application made in such manner and upon payment
of such fees, as may be prescribed.

(2) A person who, without the permission in writing of the proper
officer, uses any unlicensed vessel for the conveyance of any goods
subject to Customs control, or uses any unlicensed vehicle for the
conveyance of goods to which other legislation of any of the Partner
States applies commits an offence and shall be liable to a fine not
exceeding five thousand dollars.

245. The provisions of this Act in relation to the importation or
exportation of goods, or to the arrival or departure of persons, by
aircraft or vessels arriving from or proceeding to a foreign port shall
apply, subject to any necessary adaptations or modifications, in like
manner to the importation or exportation of goods or to the arrival or
departure of persons, overland or by the inland waters of the Partner
States.

246. Where any aircraft or vessel under commission from any
foreign state arrives in a Partner State having on board any goods other
than stores for use in the aircraft or vessel-

149
Aucti-
oneers
legisla-
tion to
apply to
sales

Licensi-
ng of
vessel
convey-
ing
goods
subject
to
Customs
control

Applica-
tion of
Act to
importa-
tion etc.,
overland

Provisio
ns relat-
ing to
commis-
sioned
vessels

No. 1 East African Community Customs Management 2005

(a) the aircraft or vessel may be boarded and searched by the
proper officer in the same manner as any other aircraft or
vessel and the proper officer may cause the goods to be
taken ashore and placed in a Customs warehouse;

(b) the person in command of the aircraft or vessel shall-
(i) deliver an account in writing of the goods and of the
quantity, marks, and names of the shippers and
consignees of the goods;

(ii) answer all questions put to him or her by the proper
officer in relation to the goods.

Power of Commi- ssioner
in spe- cial cases, notices, etc.

Re- exporta- tion, destruc- tion and abandon- ment

247. Notwithstanding anything contained in this Act, the
Commissioner may, in order to meet the exigencies of any special case-

(a) permit any goods to be loaded on to, or unloaded and removed
from, any aircraft or vessel on such days, at such times, at such
places, and under such conditions, as the Commissioner may either
generally or in any particular case direct;

(b) permit the entry of any goods, and the report or clearance of any aircraft
or vessel, in such form and manner, and by such person, as the
Commissioner may either generally or in particular case direct.

248.-(1) Goods imported into a Partner State and are still under
Customs control, may be-

(a) re-exported from a Partner State;
(b) destroyed;

(c) abandoned.

(2) A person re-exporting goods under sub-section (1) shall comply with all
necessary conditions and formalities as prescribed by the Commissioner
including commercial policy measures.

150

2005

(3) Waste or scrap resulting from destruction shall be subject to a
customs procedure prescribed for imported goods.

249. Where an amount of duty or other sum of money which is due
under this Act remains unpaid after the date upon which it is payable,
an interest of two per cent per month or part of the month, of the
unpaid amount shall be charged.

250. The Commissioner, any officer or any authorised officer shall
not in his or her personal capacity be liable to any legal proceedings
for acts done in good faith in accordance with this Act.

251.-(1) The Council may make regulations generally for giving
effect to the provisions of this Act and for the conduct of any business
relating to Customs and, without prejudice to the generality of the
foregoing, with respect to-

(a) the application of this Act to postal articles and the powers
of any officer in the service of the Post Office in relation to
any goods imported, exported or transferred by post;

(b) the conditions upon which goods may pass through the
Partner States in transit;

(c) the fee to be paid for any licence issued under this Act;

(d) the rents and other charges to be paid in respect of any
goods warehoused or deposited in any Customs warehouse,
Government warehouse, transit shed or Customs area;

(e) the conditions under which goods may be transferred
between the Partner States;

(f) the total or partial exemption from import duty for a limit-
ed period of any vehicle, or article of an every kind in actu-
al use, brought into a Partner State by any person making a
temporary stay;

(g) the transmission by post without prepayment of postage of
any return or declaration required or authorised under the
provisions of this Act;

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Penalty
for late
payment

Exemp-
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No. 1 East African Community Customs Management 2005

(h) the operations and management, of a preventive service and
terms and conditions of all officers in such service;

(i) the information to be supplied by the importer or transferee,
or any other person concerned with the importation or trans-
fer of goods, for the purpose of the proper valuation, and the
production of books of accounts or other documents relat-
ing to the purchase, importation or transfer, or sale of the
goods;

(j) the regulation and control of the conduct of business and
operations of refineries and the manner in which petroleum
products shall be distinguished for the purposes of Customs
control;

(k) the use of information technology in customs operations;
(l) the security to be given in accordance with section 107.

(2) Any regulations made under subsection (1) may provide that any
person contravening any of the provisions thereof commits an offence
and may provide penalty therefor.

(3) The Council may, with the approval of the East African
Legislative Assembly, make regulations to adjust any penalty or fine
prescribed under this Act.

Savings
and tran-
sitional
provi-
sions 252.-(1) The provisions of the Partner States’ Customs laws in force
at the commencement of this Act and all regulations, warrants and acts
of the Commissioners under the Partner States’ Customs laws shall
continue in force and apply to-

(a) the payment of duty payable before the commencement of
this Act;

(b) the assessment of and payment of any duty assessed or
payable before the commencement of this Act ,as if this
Act had not been passed.

(2) Where security was given for the doing of any act or for the
protection of revenue or for an obligation to pay duty, whether by bond
or otherwise, in the Partner States’ under the Customs laws in force at

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the commencement of this Act, that security shall have effect as if
undertaken or incurred under this Act, and may be enforced in respect
to a default occurring at any time after the date it was given
notwithstanding that the date was prior to the commencement of this
Act.

(3) Where duty was due to be paid or refunded under the Partner
States’ Customs laws, whether before or after the commencement of
this Act, and was not paid or refunded it shall be paid or refunded as
though it were a sum due under this Act.

(4) If, under the Partner States’ Customs laws in force at the
commencement of this Act, the Commissioner was responsible for the
performance of any functions not provided for under this Act, the
Commissioner shall continue to perform such functions until the
enactment of appropriate national legislation providing for the
performance of the functions under that legislation.

(5) Any subsidiary legislation made under the Partner States’
Customs laws in force at the commencement of this Act shall remain
in force, so far as it is not inconsistent with this Act, until a new
subsidiary legislation with respect to the same matter is made under
this Act.

(6) If, at the commencement of this Act, a tax appeals tribunal is yet
to be established by a Partner State as required by section 231, appeals
against the decisions of the Commissioner made under section 229
shall lie to the High Court of that Partner State.

(7) Unless a contrary intention appears, the commencement of this
Act shall not-

(a) revive anything not in force or existing at the time at which
the commencement takes effect; or

(b) affect the previous operation of the Partner States’ Customs
laws in force at the commencement or anything duly done
or suffered under those laws or

(c) affect a right, privilege, obligation or liability acquired,
accrued or incurred under a written law of a Partner State in
force at the commencement;

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(d) affect a penalty, forfeiture or punishment incurred in respect
of an offence committed against a written law of a Partner
State in force at the commencement; or

(e) affect an investigation, legal proceeding or remedy in
respect of a right, privilege, obligation, liability, penalty,
forfeiture or punishment, and any such investigation, legal
proceeding or remedy may be instituted, continued or
enforced, and any such penalty, forfeiture or punishment
may be imposed as if this Act had not been passed;(f)
affect the employment or appointment of any person to the
service of Customs subsisting at the commencement of this
Act;

(g) affect any contract, undertaking or obligation entered into,
made or assumed under a written law in force in a Partner
State at the time of the commencement.
Act to
take
prece-
dence 253. This Act shall take precedence over the Partner States’ laws
with respect to any matter to which its provisions relate.

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FIRST SCHEDULE (s 5(4))

DECLARATION OF OFFICER

I,………………….do declare that I will be true and faithful to the best of my knowl-
edge and power in the execution of the trust committed to my charge and inspection in
the service of the Customs, and that I will not acquire, take or receive, any fee,
perquisite, gratuity, or reward, whether pecuniary or of any sort or description what-
ever, either directly or indirectly, for any service, act, duty, matter, or thing, done or
performed, or to be done or performed, in the execution or discharge of any of the
duties of my office or employment on any account whatsoever, other than my salary
and what is, or may be, allowed me by law or by any special order of the Government
of………….…… (Partner State).

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SECOND SCHEDULE
(ss 18, 19, and 20.)

PROHIBITED AND RESTRICTED IMPORTS GENERALLY

PA RT A – P ROHIBITED GOODS

(1) All goods the importation of which is for the time being prohibited under this
Act, or by any written law for the time being in force in the Partner State.
(2) False money and counterfeit currency notes and coins and any money not being
of the established standard in weight or fineness.
(3) Pornographic materials in all kinds of media, indecent or obscene printed paint-
ings, books, cards, lithographs or other engravings, and any other indecent or
obscene articles.
(4) Matches in the manufacture of which white phosphorous has been employed.
(5) Any article made without proper authority with the Armorial Ensigns or Court
of Arms of a partner state or having such Ensigns or Arms so closely resembling
them as to be calculated to deceive.
(6) Distilled beverages containing essential oils or chemical products, which are
injurious to health, including thijone, star arise, benzoic aldehyde, salicyclic
esters, hyssop and absinthe. Provided that nothing in this paragraph contained
shall apply to “Anise and Anisette” liquers containing not more than 0.1 per cen-
tum of oil of anise and distillates from either pimpinella anisum or the star
arise allicium verum.
(7) Narcotic drugs under international control.
(8) Hazardous wastes and their disposal as provided for under the base conventions.
(9) All soaps and cosmetic products containing mercury.
(10) Used tyres for light Commercial vehicles and passenger cars.
(11) The following Agricultural and Industrial Chemicals:

(a) Agricultural Chemicals
l 2.4 – T
l Aldrin
l Caplafol
l Chlordirneform
l Chlorobenxilate
l DDT
l Dieldrin
l 1.2 – Dibroacethanel (EDB)
l Flouroacelamide
l HCH
l Hiplanchlor

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No. 1 East African Community Customs Management 2005 l Hoscachlorobenzene

l Lindone
l Mercury compounds
l Monocrolophs (certain formulations)
l Methamidophos
l Phospharrmion
l Methyl – parathion
l Parathion

(b) Industrial Chemicals
l Crocidolite
l Polychlorominatel biphenyls (PBB)
l Polyuchorinted Biphenyls (PCB)
l Polychlororinated Terphyenyls (PCT
l Tris (2.3 dibromopropyl) phosphate
l Methylbromide (to be phased out in accordance with the Montreal
Protocol by 2007).

(c) Counterfeit goods of all kinds.

PA RT B – R ESTRICTED GOODS

(1) All goods the importation of which is for the time being regulated under this Act
by any written law for the time being in force in the Partner State.
(2) Postal franking machines except and in accordance with the terms of a written
permit granted by a competent authority of the Partner State.
(3) Traps capable of killing or capturing any game animal except and in accordance
with the terms of a written permit granted by the Partner State.
(4) Unwrought precious metals and precious stones.
(5) Arms and ammunition specified under Chapter 93 of the Customs
Nomenclature.
(6) Ossein and bones treated with acid.
(7) Other bones and horn – cores, unworked defatted, simply prepared (but not cut
to shape) degelatinized, powder and waste of these products.
(8) Ivory, elephant unworked or simply prepared but not cut to shape.
(9) Teeth, hippopotamus, unworked or simply prepared but not cut to shape.
(10) Horn, rhinoceros, unworked or simply prepared but not cut to shape
(11) Other ivory unworked or simply prepared but cut to shape.
(12) Ivory powder and waste.
(13) Tortoise shell, whalebone and whalebone hair, horns, antlers, hoovers, nail,
claws and beaks, unworked or simply prepared but not cut to shape, powder and
waste of these products.
(14) Coral and similar materials, unworked or simply prepared but not otherwise
worked shells of molasses, crustaceans or echinoderms and cattle-bone,
unworked or simply prepared but not cut to shape powder and waste thereof.

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(15) Natural sponges of animal origin.
(16) Spent (irradiated) fuel elements (cartridges) of nuclear reactors.
(17) Worked ivory and articles of ivory.
(18) Bone, tortoise shell, horn, antlers, coral, mother-of pearl and other animal carv-
ing material, and articles of these materials (including articles obtained by
moulding).
(19) Ozone Depleting Substances under the Montreal Protocol (1987) and the
Vienna Convention (1985).
(20) Genetically modified products.
(21) Non-indigenous species of fish or egg of progeny.
(22) Endangered Species of World Flora and Fauna and their products in accordance
with CITES March 1973 and amendments thereof.
(23) Commercial casings (Second hand tyres).
(24) All psychotropic drugs under international control.
(25) Historical artefacts.
(26) Goods specified under Chapter 36 of the Customs Nomenclature (for example,
percuassion caps, detonators, signalling flares).
(27) Parts of guns and ammunition, of base metal (Section XV of the Harmonised
Commodity Description and Coding System), or similar goods of plastics under
Chapter 39 of the Customs Nomenclature.
(28) Armoured fighting vehicles under heading No 8710 of the Customs
Nomenclature.
(29) Telescope sights or other optical devices suitable for use with arms, unless
mounted on a firearm or presented with the firearm on which they are designed
to be mounted under Chapter 90 of the Customs Nomenclature.
(30) Bows, arrows, fencing foils or toys under Chapter 95 of the Customs
Nomenclature.
(31) Collector’s pieces or antiques of guns and ammunition under heading No 9705
or 9706 of the Customs Nomenclature.

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THIRD SCHEDULE (ss 70, 71, and 72)
PROHIBITED AND RESTRICTED EXPORTS GENERALLY

PA RT A – P ROHIBITED GOODS All goods the exportation of which is prohibited under this Act or by any written
law for the time being in force in the Partner States.

PA RT B – R ESTRICTED GOODS
1. (a) All goods the exportation of which is regulated under this Act or of any law for
the time being in force in the Partner States;
(b) waste and scrap of ferrous cast iron;
(c) timber from any wood grown in the Partner States;
(d) fresh unprocessed fish (Nile Perch and Tilapia);
(e) wood charcoal.

2. The following goods shall not be exported in vessels of less than two hundred
and fifty tons register-
(a) warehoused goods;
(b) goods under duty drawback;
(c) transhipped goods.

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FOURTH SCHEDULE (ss 37 and 122.)

DETERMINATION OF VALUE OF IMPORTED GOODS LIABLE TO
AD VALOREM IMPORT DUTY

PA RT I
I
NTERPRETATION :
1. -(1) In this Schedule-

“customs value of imported goods” means the value of goods for the purposes of
levying ad valorem duties of customs on imported goods;
“identical goods” means goods which are same in all respects, including physical
characteristics, quality and reputation. Minor differences in appearance shall not
preclude goods otherwise conforming to the definition from being regarded as
identical;
“similar goods” means goods which, although not alike in all respects, have like
characteristics and like component materials which enable them to perform the
same functions and to be commercially interchangeable. The quality of the goods,
their reputation and the existence of a trademark are among the factors to be con-
sidered in determining whether goods are similar.
“identical goods” and “similar goods” do not include, as the case may be, goods which
incorporate or reflect engineering, development, artwork, design work, and plans
and sketches for which no adjustment has been made under subparagraph (1)(b)(iv)
or paragraph 9 because such elements were undertaken in the Partner States;
“produced” includes grown, manufactured and mined.

(2) For the purposes of this Schedule-

(a) goods shall not be regarded as “identical goods” or “similar goods” unless
they were produced in the same country as the goods being valued;

(b) goods produced by different persons shall be taken into account only when
there are no identical goods or similar goods, as the case may be, produced

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by the same person as the goods being valued.

(3) For the purpose of this Schedule, persons shall be deemed to be related only if:
(a) they are officers or directors of one another’s businesses;
(b) they are legally recognized partners in business;
(b) they have an employer and employee relationship;
(c) any person directly or indirectly owns, controls or holds five percent or
more of the outstanding voting stock or shares of both of them;
(d) one of them directly or indirectly controls the other;
(e) both of them are directly or indirectly controlled by a third person;
(f) together they directly control a third person; or
(g) they are members of the same family.

(4) A person who associates with another person in business, such that one is the
sole agent, distributor or sole concessionaire, however described, of the other shall be
deemed to be related for the purposes of this Schedule if they fall within the criteria of
sub-paragraph 3.

TRANSACTION VALUE

2.-(1) The customs value of imported goods shall be the transaction value, which
is the price actually paid or payable for the goods when sold for export to the Partner
State adjusted in accordance with the provisions of Paragraph 9, but where-

(a) there are no restrictions as to the disposition or use of the goods by the
buyer other than restrictions which:

(i) are imposed or required by law or by the public authorities in the
Partner State;
(ii) limit the geographical area in which the goods may be resold; or
(iii) do not substantially affect the value of the goods;

(b) the sale or price is not subject to some condition or consideration for which
a value cannot be determined with respect to the goods being valued;
(c) no part of the proceeds of any subsequent resale, disposal or use of the
goods by the buyer will accrue directly or indirectly to the seller, unless an
appropriate adjustment can be made in accordance with the provisions of
Paragraph 9; and
(d) the buyer and seller are not related, or where the buyer and seller are relat-
ed, that the transaction value is acceptable for customs purposes under the
provisions of subparagraph (2).

(2) (a) In determining whether the transaction value is acceptable for the purposes
of subparagraph (1), the fact that the buyer and the seller are related within
the meaning of Paragraph (1) shall not in itself be a ground for regarding the
transaction value as unacceptable. In such case the circumstances surround-
ing the sale shall be examined and transaction value shall be accepted pro-
vided that the relationship did not influence the price. If, in light of infor-

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mation provided by the importer or otherwise, the proper officer has grounds
for considering that the relationship influenced the price, he shall communi-
cate his grounds to the importer and such importer shall be given reasonable
opportunity to respond and where the importer so requests, the communica-
tion of the grounds shall be in writing;

(b) In the sale between related persons, the transaction value shall be
accepted and the goods valued in accordance with the provisions of
subparagraph (1) whenever the importer demonstrates that such value
closely approximates to one of the following accruing at or about the same
time.

(i) the transaction value in sales to unrelated buyers of identical or
similar goods for export to the Partner State;

(ii) the customs value of identical or similar goods as determined under
the provisions of Paragraph 6;
(iii) the customs value of identical or similar goods as determined under
the provisions of Paragraph 7.

Provided that, in applying the provisions under subparagraph
(2)(a) and (b) of this paragraph, due account shall be taken of demon-
strated differences in commercial levels, quantity levels, the elements
enumerated in paragraph 9 and costs incurred by the seller in sales in
which the seller and the buyer are not related that are not incurred by
the seller in sales in which the seller and the buyer are related.

The tests set forth in subparagraph (2) (b) are to be used at the initiative of the importer
and only for comparison purposes. Substitute values may not be established under the
provisions of subparagraph (2) (b).

TRANSACTION VALUE OF IDENTICAL GOODS

3. -(1) (a) Where the customs value of the imported goods cannot be
determined under the provisions of paragraph 2, the customs value shall be
the transaction value of identical goods sold for export to the Partner State
and exported at or about the same time as the goods being valued:

(b) In applying the provisions of this paragraph, the transaction value of
identical goods in a sale at the same commercial level and in substantially
the same quantity as the goods being valued shall be used to determine the
customs value and where no such sale is found, the transaction value of
identical goods sold at the different commercial level or in different
quantities, adjusted to take account of differences attributable to commer-
cial level or to quantity, shall be used, provided that such adjustments can
be made on the basis of demonstrated evidence which clearly establishes
the reasonableness and accuracy of the adjustment, whether the adjustment
leads to an increase or decrease in the value;

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(2) Where the costs and charges referred to in paragraph 9(2) are included in the
transaction value, an adjustment shall be made to take account of significant
differences in such costs and charges between the imported goods and the identical
goods in question arising from differences in distances and modes of transport.

(3) Where in applying the provisions of this paragraph, more than one transaction
value of identical goods is found, the lowest such value shall be used to determine the
customs value of the imported goods.

TRANSACTION VALUE OF SIMILAR GOODS

4. (1) (a) Where the customs value of the imported goods cannot be determined
under the provisions of Paragraph 2 and 3, the customs value shall be the
transaction value of similar goods sold for export to the Partner State and
exported at or about the same time as the goods being valued;

(b) In applying this Paragraph, the transaction value of similar goods in a sale
at the same commercial level and in substantially the same quantity as the
goods being valued shall be used to determine the customs value. Where
no such sale is found, the transaction value of similar goods sold at a
different commercial level and/or in different quantities, adjusted to take
account of differences attributable to commercial level and/or to quantity,
shall be used, provided that such adjustments can be made on the basis of
demonstrated evidence which clearly establishes the reasonableness and
accuracy of the adjustment, whether the adjustment leads to an increase or
a decrease in the value.

(2) Where the costs and charges referred to in subparagraph (2) of Paragraph 9 are
included in the transaction value, an adjustment shall be made to take account of
significant differences in such costs and charges between the imported goods and the
similar goods in question arising from differences in distances and modes of transport.

(3) Where, in applying the provisions of this paragraph, more than one transaction
value of similar goods is found, the lowest such value shall be used to determine the
customs value of the imported goods.

REVERSAL OF ORDER OF APPLICATION OF DEDUCTIVE VALUE AND
COMPUTED
VALUES

5. Where the customs value of the imported goods cannot be determined under the
provisions of paragraphs 2, 3 and 4, the customs value shall be determined under the
provisions of paragraph 6 or, when the customs value cannot be
determined under that paragraph, under the provisions of paragraph 7 save that, at the
request of the importer, the order of application of paragraphs 6 and 7 shall be
reversed.

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DEDUCTIVE VALUE

6.-(1) (a) Where the imported goods or identical or similar imported goods are
sold in the Partner State in the condition as imported, the customs value of
the imported goods under the provisions of this paragraph shall be based
on the unit price at which the imported goods or identical or similar
imported goods are so sold in the greatest aggregate quantity, at or about
the time of the importation of the goods being valued, to persons who are
not related to the persons from whom they buy such goods, subject to
deductions for the following:

(i) either the commissions usually paid or agreed to be paid or the
additions usually made for profit and general expenses in connection
with the sales in such country of imported goods of the same class or
kind;
(ii) the usual costs of transport and insurance and associated costs
incurred within the Partner State;
(iii) where appropriate, the costs and charges referred to in paragraph 9(2);
and
(iv) the customs duties and other national taxes payable in the Partner
State by reason of importation or sale of the goods.

(b) Where neither the imported goods nor identical nor similar imported goods
are sold at or about the time of importation of the goods being valued, the
customs value shall, subject to the provisions of subparagraph (1) (a), be
based on the unit price at which the imported goods or identical or similar
imported goods are sold in the Partner State in the condition as imported at
the earliest date after the importation of the goods being valued but before
the expiration of 90 days after such importation.

(2) Where neither the imported goods nor identical nor similar imported are sold
in the Partner State in the condition as imported, then, if the importer so requests, the
customs value shall be based on the unit price at which the imported goods, after fur-
ther processing, are sold in the greatest aggregate quantity to persons in the Partner
State who are not related to the persons from whom they buy such goods, due
allowance being made for the value added by such processing and the deductions pro-
vided for in subparagraph (1)(a).

COMPUTED VALUE

7.-(1) The customs value of imported goods under the provisions of this Paragraph
shall be based on a computed value which shall consist of the sum of:

(a) the cost or value of materials and fabrication or other processing employed
in producing the imported goods;

(b) an amount for profit and general expenses equal to that usually reflected in

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No. 1 East African Community Customs Management 2005
sales of goods of the same class or kind as the goods being valued which
are made by producers in the country of exportation for export to the
Partner State;

(c) the cost or value of all other expenses necessary to reflect the costs added
under paragraph 9(2).
(2) A person who is not resident in the Partner State may be required to, or com-
pelled to produce for examination, or to allow access to, any account or other record
for the purposes of determining a computed value. However, information supplied by
the producer of the goods for the purposes of determining the customs value under the
provisions of this Paragraph may be verified in another country by a proper officer
with the agreement of the producer and provided sufficient advance notice is given to
the government of the country in question and the latter does not object to the investi-
gation.

FALL BACK VALUE

8.- (1) Where the customs value of the imported goods cannot be determined under
the provisions of paragraphs 2, 3, 4, 5, 6 and 7, inclusive, the customs value shall be
determined using reasonable means consistent with the principles and general provi-
sions of this Schedule and on the basis of data available in the Partner State.

(2) Customs value shall not be determined under the provisions of this paragraph
on the basis of:

(a) the selling price in the Partner State of goods produced in the Partner State;
(b) a system which provides for the acceptance for customs purposes of the
higher of two alternative values;
(c) the price of goods on the domestic market of the country of exportation;
(d) the cost of production other than computed values which have been deter-
mined for identical or similar goods in accordance with the provisions of
paragraph 7;
(e) the price of the goods for export to a country other than the Partner State;
(f) minimum customs values; or
(g) arbitrary or fictitious values.

(3) Where the importer so requests, he or she shall be informed in writing of the
customs value determined under the provisions of this paragraph and the method used
to determine such value.

ADJUSTMENTS TO VALUE

9.- (1) In determining the customs value under the provisions of paragraph 2, there
shall be added to the price actually paid or payable for the imported goods as follows:

(a) to the extent that they are incurred by the buyer but are not included in the
price actually paid or payable for the goods:

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(i) the commissions and brokerage, except buying commissions;
(ii the cost of containers which are treated as being one for customs
purposes with the goods in question;
(iii) the cost of packing whether for labour or materials;

(b) the value, apportioned as appropriate, of the goods and services where
supplied directly or indirectly by the buyer free of charge or at reduced cost
for use in connection with the production and sale for export of the
imported goods, to the extent that such value has not been included in the
price actually paid or payable as follows:

(i) materials, components, parts and similar items incorporated in the
imported goods;

(ii) tools, dies, moulds and similar items used in the production of the
imported goods;

(iii) materials consumed in the production of the imported goods;

(iv) engineering, development, artwork, design work, and plans and
sketches undertaken elsewhere than in the Partner State and necessary
for the production of the imported goods;

(c) royalties and license fees related to the goods being valued that the buyer
must pay, either directly or indirectly, as a condition of sale of the goods
being valued, to the extent that such royalties and fees are not included in
the price actually paid or payable;

(d) the value of any part of the proceeds of any subsequent resale, disposal or
use of the imported goods that accrues directly or indirectly to the seller.

(2) In determining the value for duty purposes of any imported goods, there shall
be added to the price actually paid or payable for the goods:-
(a) the cost of transport of the imported goods to the port or place of
importation into the Partner State; provided that in case of imports by air
no freight costs shall be added to the price paid or payable;
(b) loading, unloading and handling charges associated with the transport of
the imported goods to the port or place of importation into the Partner
State; and
(c) the cost of insurance.

(3) Additions to the price actually paid or payable shall be made under this
paragraph only on the basis of objective and quantifiable data.

(4) Additions shall not be made to the price actually paid or payable in
determining the customs value except as provided in this paragraph.

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PA RT I I

INTERPRETATIVE NOTES
General Notes

Sequential Application of Valuation Methods

1. Paragraph 2, 3, 4, 5, 6, 7 and 8 define how the customs value of imported goods
is to be determined under the provisions of this Schedule. The methods of valuation
are set out in a sequential order of application. The primary methods for customs val-
uation is defined in paragraph 2 and imported goods are to be valued in accordance
with the provisions of this paragraph whenever the conditions prescribed therein are
fulfilled.

2. Where the customs value cannot be determined under the provisions of para-
graph 2, it is to be determined by proceeding sequentially through the succeeding para-
graphs to the first such paragraph under which the customs value can be determined.
Except as provided in paragraph 5, it is only when the customs value cannot be deter-
mined under the provisions of a particular paragraph that the provisions of the next
paragraph in the sequence can be used.

3. Where the importer does not request that the order of paragraphs 6 and 7 be
reversed, the normal order of the sequence is to be followed, and if the importer does
so request but it then proves impossible to determine the customs value under the
provisions of paragraph 7, the customs value shall be determined under the provisions
of paragraph 6, if it can be so determined.

4. Where the customs value cannot be determined under the provision of para-
graphs 2,3,4,5, 6 and 7 it is to be determined under the provisions of paragraph 8.

Use of General Accepted Accounting Principles

1. “Generally accepted accounting principles” refers to the recognized consensus
or substantial authoritative support within the Partner State at a particular time as to
which economic resources and obligations should be recorded as assets and liabilities,
which changes in assets and liabilities should be recorded, how the assets and
liabilities and changes in them should be measured, what information should be
disclosed and how it should be disclosed, and which financial statements should be
prepared. These standards may be broad guidelines of general application as well as
detailed practices and procedures.

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2. For the purposes of this Schedule, the proper officer shall utilize information
prepared in a manner consistent with generally accepted accounting principles in the
Partner State which is appropriate for the Paragraph in question. For example, the
determination of usual profit and general expenses under the provisions of Paragraph
6 would be carried out utilizing information prepared in a manner consistent with gen-
erally accepted accounting principles of the Partner State. On the other hand, the
determination of usual profit and general expenses under the provisions of Paragraph
7 would be carried out utilizing information prepared in a manner consistent with gen-
erally accepted accounting principles of the country of production. As a further exam-
ple, the determination of an element provided for in paragraph 9 (1)(b)(ii) undertaken
in the Partner State would be carried out utilizing information in a manner consistent
with the generally accepted accounting principles of the Partner State.

Note to Paragraph 1

Subparagraph 3 (e)

For the purposes of this Schedule, one person shall be deemed to control another
when the former is legally or operationally in a position to exercise restraint or
direction over the latter.

Subparagraph 4

For the purpose of paragraph 1, the term “person” includes a legal person, where
appropriate.

Note to Paragraph 2

Price Actually Paid or Payable

1. The price actually paid or payable is the total payment made or to be made by
the buyer to or for the benefit of the seller for the imported goods. The payment need
not necessarily take the form of a transfer of money. Payment may be made by way
of letters of credit or negotiable instruments. Payment may be made directly or indi-
rectly. An example of an indirect payment would be the settlement by the buyer,
whether in whole or in part, of a debt owed by the seller.

2. Activities undertaken by the buyer on the buyer’s own account, other than those
for which an adjustment is provided in paragraph 9, are not considered to be an indi-
rect payment to the seller, costs of such activities shall not, therefore, be added to the
price actually paid or payable in determining the customs value.

3. The customs value shall not include the following charges or costs, provided
that they are distinguished from the price actually paid or payable for the imported
goods:

(a) charges for construction, erection, assembly, maintenance or technical
assistance, undertaken after importation on imported goods such as

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industrial plant, machinery or equipment;

(b) the cost of transport after importation;

(c) Duties and taxes of the Partner State.

4. The price actually paid or payable refers to the price for the imported goods.
Thus the flow of dividends or other payments from the buyer to the seller that do not
relate to the imported goods are not part of the customs value.

Subparagraph (1)(a)(iii)

Among restrictions, which would not render a price actually paid or payable unac-
ceptable, are restrictions, which do not substantially affect the value of the goods.
An example of such restrictions would be the case where a seller requires a buyer of
automobiles not to sell or exhibit them.

Subparagraph (1)(b)

1. If the sale or price is subject to some condition or consideration for which a
value cannot be determined with respect to the goods being valued, the transaction
value shall be acceptable for customs purposes. Some examples of this include:

(a) the seller establishes the price of the imported goods on condition that the
buyer will also buy other goods in specified quantities;
(b) the price of the imported goods is dependent upon the price or prices at
which the buyer of the imported goods sells other goods to the seller of the
imported goods;
(c) the price is established on the basis of a form of payment extraneous to the
imported goods, such as where the imported goods are semi-finished goods
which have been provided by the seller on condition that the seller will
receive a specified quantity of the finished goods.

2. However, conditions or considerations relating to the production or marketing
of the imported goods shall not result in rejection of the transaction value.
For example, the fact that the buyer furnishes the seller with engineering and plans
undertaken in the Partner State shall not result in rejection of the transaction value for
the purposes of paragraph 2.

Likewise, if the buyer undertakes on the buyer’s own account, even though by
agreement with the seller, activities relating to the marketing of the imported goods,
the value of these activities is not part of the customs value nor shall such activities
result in rejection of the transaction value.

Subparagraph (2)

1. Subparagraphs (2)(a) and (2)(b) provide different means of establishing the
acceptability of a transaction value.

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2. Subparagraph 2(a) provides that where the buyer and the seller are related, the
circumstances surrounding the sale shall be examined and the transaction value shall
be accepted as the customs value provided that the relationship did not influence the
price. It is not intended that there should be an examination of the circumstances in
all cases where the buyer and the seller are related. Such examination will only be
required where there are doubts about the acceptability of the price. Where the prop-
er officer have no doubts about the acceptability of the price it should be accepted
without requesting further information from the owner. For example, the proper offi-
cer may have previously examined the relationship, or it may already have detailed
information concerning the buyer and the seller, and may already be satisfied from
such examination or information that the relationship did not influence the price.

3. Where the proper officer is unable to accept the transaction value without fur-
ther inquiry, it should give the owner an opportunity to supply such further detailed
information as may be necessary to enable it to examine the circumstances surround-
ing the sale. In this context, the proper officer should be prepared to examine relevant
aspects of the transaction, including the way in which the buyer and seller organize
their commercial relations and the way in which the price in question was arrived at,
in order to determine whether the relationship influenced the price. Where it can be
shown that the buyer and seller, although related under the provisions of Paragraph 1,
buy from and sell to each other as if they were not related, this would demonstrate that
the price had not been influenced by the relationship. As an example of this, if the
price had been settled in a manner consistent with the normal pricing practices of the
industry in question or with the way seller settles prices for sales to buyers who are not
related to the seller, this would demonstrate that the price had not been influenced by
the relationship. As a further example, where it is shown that the price is adequate to
ensure recovery of all costs plus a profit which is representative of the firm’s overall
profit realized over a representative period of time, e.g. on an annual basis in sales of
goods of the same class or kind, this would demonstrate that the price had not been
influenced.

4. Subparagraph (2) (b) provides an opportunity for the importer to demonstrate
that the transaction value closely approximates to a “test” value previously accepted by
the proper officer and is therefore acceptable under the provisions of paragraph (2).
Where a test under subparagraph (2)(b) is met, it is not necessary to examine the ques-
tion of influence under paragraph 2(a). If the proper officer has already sufficient
information to be satisfied, without further detailed inquiries, that one of the tests pro-
vided in subparagraph (2)(b) has been met, there is no reason for it to require the
importer to demonstrate that the test can be met. In subparagraph (2)(b) the term
“unrelated buyers” means buyers who are not related to the seller in any particular
case.

Subparagraph (2) (b)

A number of factors must be taken into consideration in determining whether one
value “closely approximates” to another value. These factors include the nature of the
imported goods, the nature of the industry itself, the season in which the goods are

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imported, and, whether the difference in values is commercially significant. Since
these factors may vary from case to case, it would be impossible to apply a uniform
standard such as a fixed percentage, in each case. For example, a small difference in
value in a case involving one type of goods could be unacceptable while a large dif-
ference in a case involving another type of goods might be acceptable in determining
whether the transaction value closely approximates to the “test” values set forth in sub-
paragraph (2)(b) of paragraph 2.

Note to Paragraph 3

1. In applying paragraph 3, the proper officer shall wherever possible, use a sale
of identical goods at the same commercial level and in substantially the same quanti-
ties as the goods being valued. Where no such sale is found, a sale of identical goods
that takes place under any one of the following three conditions may be used:

(a) a sale at the same commercial level but in different quantities;
(b) a sale at a different commercial level but in substantially the same
quantities; or
(c) a sale at a different commercial level and in different quantities.

2. Having found a sale under any one of these three conditions adjustments will
then be made, as the case may be, for:

(a) quantity factors only;
(b) commercial level factors only; or
(c) both commercial level and quantity factors

3. The expression “and/or” allows the flexibility to use the sales and make the nec-
essary adjustments in any one of the three conditions described above.

4. For the purposes of paragraph 3, the transaction value of identical imported
goods means a customs value, adjusted as provided for in subparagraphs (1)(b) and
(2), which has already been accepted under paragraph 2.

5. A condition for adjustment because of different commercial level or different
quantities is that such adjustment, whether it leads to an increase or a decrease in the
value, be made only on the basis of demonstrated evidence that clearly establishes the
reasonableness and accuracy of the adjustments, e.g. valid price lists containing prices
referring to different levels or different quantities. As an example of this, if the import-
ed goods being valued consist of a shipment of 10 units and the only identical import-
ed goods for which a transaction value exists involved a sale of 500 units, and it is rec-
ognized that the seller grants quantity discounts, the required adjustment may be
accomplished by resorting to the seller’s price list and using that price applicable to
sale of 10 units. This does not require that a sale had to have been made in quantities
of 10 as long as the price has been established as being bona fide through sales at other
quantities. In the absence of such an objective measure, however, the determination
of a customs value under the provisions of Paragraph 3 is not appropriate.

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Note to Paragraph 4

1. In applying paragraph 4, the proper officer shall, wherever possible, use a sale
of similar goods at the same commercial level and in substantially the same quantities
as the goods being valued. Where no such sale is found, a sale of similar goods that
takes place under any one of the following three conditions may be used;

(a) a sale at the same commercial level but in different quantities;
(b) a sale at a different commercial level but in substantially the same quanti-
ties; or
(c) a sale at a different commercial level and in different quantities;

2. Having found sale under any one of these three conditions adjustments will then
be made, as the case may be, for:

(a) quantity factors only;
(b) commercial level factors only; or
(c) both commercial level and quantity factors;

3. The expression “and/or” allows the flexibility to use the sales and make the nec-
essary adjustments in any one of the three conditions described above.

4. For the purpose of paragraph 4, the transaction value of similar imported goods
means a customs value, adjusted as provided for in subparagraphs (1) (b) and (2),
which has already been accepted under paragraph 2.

5. A condition for adjustment because of different quantities is that such adjust-
ment whether it leads to an increase or a decrease in the value, be made only on the
basis of demonstrated evidence that clearly establishes the reasonableness and accura-
cy of the adjustment, e.g. valid price lists containing prices referring to different lev-
els or different quantities. As an example of this, if the imported goods being valued
consist of a shipment of 10 units and the only similar imported goods for which a
transaction value exists involved a sale of 500 units, and it is recognized that the sell-
er grants quantity discounts, the required adjustment may be accomplished by resort-
ing to the seller’s price list and using that price applicable to a sale of 10 units. This
does not require that a sale had to been established as being bona fide through sales at
other quantities. In the absence of such an objective measure, however, the determi-
nation of a customs value under the provisions of paragraph 4 is not appropriate.

Note to Paragraph 6

1. The term “unit price at which goods are sold in the greatest aggregate quanti-
ty” means the price at which the greatest number of units is sold in sales to persons
who are not related to the persons from whom they buy such goods at the first com-
mercial level after importation at which such sales take place.

2. As an example of this, goods are sold from a price list, which grants
favourable unit prices for purchases made in larger quantities.

172

Sale quantity

Sold at at each

Unit price Number of Sales Total QuantitySold

at each price

price

1-10 units

100

10 sales of 5 units 5
No. 1 East African Community Customs Management 2005

sales of 3 units 65
11-25 units 95 5 sales of 11 units 55
Over 25 units
90 1 sale of 30 units1 80
sale of 50 units

The greatest number of units sold at a price is 80; therefore, the unit price in the
greatest aggregate quantity is 90.

3. As another example of this, two sales occur. In the first sale 500 units are sold
at a price of 95 currency units each. In the second sale 400 units are sold at a price of
90 currency units each. In this example, the greatest number of units sold at a
particular price is 500; therefore, the unit price in the greatest aggregate quantity is 95.

4. A third example would be the following situation where various quantities are
sold at various prices.

(a) Sales

Sale Quantity Unit price

40 units 100

30 units 90

15 units 100

50 units 95

25 units 105

35 units 90

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5 units 100

(b) Totals

Total quantity sold Unit price

65 90

50 95

60 100

25 105

In this example, the greatest number of units sold at a particular price is 65; therefore,
the unit price in the greatest aggregate quantity is 90.

5. Any sale in the partner state, as described in subparagraph 1 above, to a person
who supplies directly or indirectly free of charge or at reduced cost for use in connec-
tion with the production and sale for export of the imported goods any of the elements
specified in subparagraph 1(b) of paragraph 1(b) of paragraph 9, should not be taken
into account in establishing the unit price for the purposes of paragraph 6.

6. It should be noted that “profit and general expenses” referred to in subparagraph
(1) of Paragraph 6 should be taken as a whole. The figure for the purposes of this
deduction should be determined on the basis of information supplied by or on behalf
of the importer unless the importer’s figures are inconsistent with those obtained in
sales in The Partner State of imported goods of the same class or kind. Where the
importer’s figures are inconsistent with such figures, the amount for profit and gener-
al expenses may be based upon relevant information other than that supplied by or on
behalf of the owner.

7. The “general expenses” include the direct and indirect costs of marketing the
goods in question.

8. Local taxes payable by reason of the sale of the goods for which a deduction is
not made under the provisions of paragraph 6 (1)(a)(iv) shall be deducted under the
provisions of paragraph 6 (1)(a)(i).

9. In determining either the commissions or the usual profits and general expenses
under the provisions of paragraph 6 (1), the question whether certain goods are “of the
same class or kind” as other goods must be determined on a case-by-case basis by ref-

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erence to the circumstances involved. Sales in the Partner State of the narrowest group
or range of imported goods of the same class or kind, which includes the goods being
valued, for which the necessary information can be provided, should be examined. For
the purposes of Paragraph 6, “goods of the same class or kind” includes goods import-
ed from the same country as the goods being valued as well as goods imported from
other countries.
10. For the purposes of paragraph 6(1)(b), the “earliest date” shall be the date by
which sales of the imported goods or of identical or similar imported goods are made
in sufficient quantity to establish the unit price.

11. Where the method in paragraph 6(2) is used, deductions made for the value
added by further processing shall be based on objective and quantifiable data relating
to the cost of such work. Accepted industry practices would form the basis of the cal-
culations.

12. It is recognized that the method of valuation provided for in paragraph 6 (2)
would normally not be applicable when, as a result of the further processing, the
imported goods lose their identity. However, there can be instances where, although
the identity of the imported goods is lost, the value added by the processing can be
determined accurately without unreasonable difficulty. However, there can be
instances where, although the identity of the imported goods is lost, the value added
by the processing can be determined accurately without unreasonable difficulty. On
the other hand, there can also be instances where the imported goods maintain their
identity but form such a minor element in the goods sold in the Partner State that the
use of this valuation method would be unjustified. In view of the above, each situa-
tion of this type must be considered on a case-by case basis.

Note to Paragraph 7

1. As a general rule, customs value is determined under this Schedule on the basis
of information readily available in the Partner State. In order to determine a comput-
ed value, however, it may be necessary to examine the costs of producing the goods
being valued and other information, which has to be obtained from outside The Partner
State. Furthermore, in most cases the producer of the goods will be outside the juris-
diction of the authorities of the Partner State. The use of the computed value method
will generally be limited to those cases where the buyer and seller are related and the
producer is prepared to supply to the authorities of The Partner State the necessary
costing and to provide facilities for any subsequent verification which may be neces-
sary.
2. The “cost or value” referred to in paragraph 7(1)(a) is to be determined on the
basis of information relating to the production of the goods being valued supplied by
or on behalf the producer. It is to be based upon the commercial accounts of the pro-
ducer, provided that such accounts are consistent with the generally accepted account-
ing principles applied in the country where the goods are produced.
3. The “cost or value” shall include the cost of elements specified in subparagraphs
9(1)(a)(ii) and (iii). It shall also include the value, apportioned as appropriate under
the provisions of the relevant note to paragraph 9, of any element specified in para-

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graph 9(1)(b) which has been supplied directly or indirectly by the buyer for use in
connection with the production of the imported goods. The value of the elements spec-
ified in paragraph 9(1)(b)(iv) which are undertaken in the Partner State shall be includ-
ed only to the extent that such elements are charged to the producer. It is to be under-
stood that no cost or value of the elements referred to in this paragraph shall be count-
ed twice in determining the computed value.
4. The “amount for profit and general expenses” referred to in paragraph 7(1)(b) is
to be determined on the basis of information supplied by or on behalf of the producer
unless the producer’s figures are inconsistent with those usually reflected in sales of
goods of the same class or kind as the goods being valued which are made by produc-
ers in the country of exportation for export to the Partner State.

5. It should be noted in this context that the “amount for profit and general expens-
es” has to be taken as a whole. It follows that if, in any particular case, the producer’s
profit figure is low and the producer’s general expenses are high, the producer’s profit
and general expenses taken together may nevertheless be consistent with that usually
reflected in sales of goods of the same class or kind. Such a situation might occur, for
example, if a product were being launched in the Partner State and the producer
accepted a nil or low profit to offset high general expenses associated with the launch.
Where the producer can demonstrate a low profit on sales of the imported goods
because of particular commercial circumstances, the producer’s actual profit figures
should be taken into account provided that the producer has valid commercial reasons
to justify then and the producer’s pricing policy reflects usual pricing policies in the
branch of industry concerned. Such a situation might occur, for example, where pro-
ducers have been forced to lower prices temporarily because of an unforeseeable drop
in demand, or where they sell goods to complement a range of goods being produced
in the Partner State and accept a low profit to maintain competitiveness. Where the
producer’s own figures for profit and general expenses are not consistent with those
usually reflected in sales of goods of the same class or kind as the goods being valued
which are made by producers in the country of exportation for export to a Partner
State, the amount for profit and general expenses may be based upon relevant infor-
mation other than that supplied by or on behalf of the producer of the goods.

6. Where information other than that supplied by or on behalf of the producer is
used for the purposes of determining a computed value, the proper officer shall inform
the importer, if the latter so requests, of the source of such information, the data used
and the calculations based upon such data.

7. The “general expenses” referred to in paragraph 7(1)(b) covers the direct and
indirect costs of producing and selling the goods for export, which are not included
under paragraph 7(1)(a).

8. Whether certain goods are “of the same class or kind” as other goods must be
determined on a case-by-case basis with reference to the circumstances involved. In
determining the usual profits and general expenses under the provisions of paragraph
7, sales for export to the Partner State of the narrowest group or range of goods, which
includes the goods being valued, for which the necessary information can be provid-
ed, should be examined. For the purposes of paragraph 7, “goods of the same class or

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kind” must be from the same country as the goods being valued.

Note to Paragraph 8

1. Customs values determined under the provisions of paragraph 8 should, to the
greatest extent possible, be based on previously determined customs values.
2. The methods of valuation to be employed under paragraph 8 should be those laid
down in paragraphs 2, 3, 4, 5, 6 and 7 but a reasonable flexibility in the
application of such methods would be in conformity with the aims and provisions of
paragraph 8.

Some examples of reasonable flexibility are as follows:

(a) Identical goods – the requirement that the identical goods should be
exported at or about the same time as the goods being valued could be
flexibly interpreted; identical imported goods produced in a country other
than the country of exportation of the goods being valued could be the
basis for customs valuation; customs values of identical imported goods
already determined under the provisions of paragraphs 6 and 7 could be
used.

(b) Similar goods – the requirement that the similar goods should be exported
at or about the same time as the goods being valued could be flexibly
interpreted; similar imported goods produced in a country other than the
country of exportation of the goods being valued could be the basis for
customs valuation; customs values of similar imported goods already
determined under the provisions of paragraphs 6 and 7 could be used.
(c) Deductive methods – the requirement that the goods shall have been sold
in the “condition as imported” in paragraph 6(1)(a) could be flexibly inter-
preted; the “90 days” requirement could be administered flexibly.

Note to Paragraph 9

Subparagraph (1)(a)(i) The term “buying commissions” means fees paid by importer to the importer’s agent
for the service of representing the importer abroad in the purchase of the goods
being valued.

Subparagraph (1)(b)(ii)

1. There are two factors involved in the apportionment of the elements specified
in paragraph 9(1)(b)(ii) to the imported goods – the value of the element itself and the
way in which that value is to be apportioned to the imported goods. The
apportionment of these elements should be made in a reasonable manner appropriate
to the circumstances and in accordance with generally accepted accounting principles.

2. Concerning the value of the element, if the importer acquires the element from

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a seller not related to the importer at a given cost, the value of the element is that cost.
If the element was produced by the importer or by a person related to the importer, its
value would be the cost of producing it. If the element had been previously used by
the importer, regardless of whether it had been acquired or produced by such importer,
the original cost of acquisition or production would have to be adjusted downward to
reflect its use in order to arrive at the value of the element.
3. Once a value has been determined for the element, it is necessary to apportion
that value to the imported goods. Various possibilities exist. For example, the value
might be apportioned to the first shipment if the importer wishes to pay duty on the
entire value at one time. As another example, the importer may request that the value
be apportioned over the number of units produced up to the time of the first shipment.
As a further example the importer may request that the value be apportioned over the
entire anticipated production where contracts or firm commitments exist for that
production. The method of apportionment used will depend upon the documentation
provided by the importer.

4. As an illustration of the above, an importer provides the producer with a mould
to be used in the production of the imported goods and contracts with the producer to
buy 10,000 units. By the time of arrival of the first shipment of 1,000 units the
producer has already produced 4,000 units. The importer may request the proper offi-
cer to apportion the value of the mould over 1,000 units, 4,000 units or 10,000 units.

Subparagraph 1(b)(iv)

1. Additions for the elements specified in paragraph 9(1)(b)(iv) should be based on
objective and quantifiable data. In order to minimize the burden for both the importer
and proper officer in determining the values to be added, data readily available in the
buyer’s commercial record system should be used in so far as possible.

2. For those elements supplied by the buyer, which were purchased or leased by
the buyer, the addition would be the cost of the purchase or the lease. No addition shall
be made for those elements available in the public domain, other than the cost of
obtaining copies of them.

3. The ease with which it may be possible to calculate the valued to be added will
depend on a particular firm’s structure and management practice, as well as its
accounting methods.

4. It is possible for example, that a firm which imports a variety of products from
several countries maintains the records of its design centre outside The Partner State
in such a way as to show accurately the costs attributable to a given product. In such
cases, a direct adjustment may appropriately be made under the provisions of para-
graph 9.

5. In another case, a firm may carry the cost of the design centre outside the Partner
State as a general overhead expense without allocation to specific products. In this
instance, an appropriate adjustment could be made under the provisions of paragraph
9 with respect to the imported goods by apportioning total design centre costs over

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total production benefiting from the design centre and adding such apportioned cost on
a unit basis to imports.

6. Variations in the above circumstances will be of course, require different factors
to be considered in determining the proper method of allocation.

7. In cases where the production of the element in question involves a number of
countries and over a period of time, the adjustment should be limited to the value
actually added to that element outside the Partner State.

Subparagraph (1)(c)

1. The royalties and license fees referred to in paragraph 9(1)(c) may include,
among other things, payments in respect of patents, trademarks and copyrights.
However, the charges for the right to reproduce the imported goods in the Partner State
shall not be added to the price actually paid or payable for the imported goods in deter-
mining the customs value.

2. Payments made by the buyer for the right to distribute or resell the imported
goods shall not be added to the price actually paid or payable for the imported goods
if such payments are not a condition of the sale for export to the Partner State of the
imported goods.

Subparagraph 3

Where objective and quantifiable data do not exist with regard to the additions
required to be made under the provisions of paragraph 9, the transaction value cannot
be determined under the provisions of paragraph 2. As an illustration of this, a royal-
ty is paid on the basis of the price in a sale in the importing country of a litre of a par-
ticular product that was imported by the kilogram and made up into a solution after
importation. If the royalty is based partially on the imported goods and partially on
other factors which have nothing to do with the imported goods such as when the
imported goods are mixed with domestic ingredients and are no longer separately iden-
tifiable, or when the royalty cannot be distinguished from special financial arrange-
ments between the buyer and the seller, it would be inappropriate to attempt to make
an addition for the royalty. However, if the amount of this royalty is based only on the
imported goods and can be readily quantified, an addition to the price actually paid or
payable can be made.

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FIFTH SCHEDULE ( s 114 )

EXEMPTIONS REGIME

PA RT A – S PECIFIC EXEMPTIONS

GOODS IMPORTED OR PURCHASED BEFORE CLEARANCE THROUGH THE
CUSTOMS BY OR ON BEHALF OF PRIVILEGED PERSONS AND
INSTITUTIONS.

1. The Presidents.

Goods for use by the Presidents of the Partner States.

2. Partner States Armed Forces

All goods, including materials, supplies, equipment, machinery and motor vehicles
for the official use of Partner States Armed Forces.

3. Commonwealth and Other Governments

Goods consigned to officers or men on board a naval vessel belonging to another
Commonwealth Government for their personal use or for consumption on board such
vessel.
Goods for the use of any of the Armed Forces of any allied power.

4. Diplomatic and First Arrival Privileges

(1) Household and personal effects of any kind imported by entitled personnel or
their dependants including one motor vehicle imported or purchased by them prior to
clearance through customs within ninety days of their first arrival in a Partner State or
such longer period not exceeding three hundred and sixty days from the date of his
arrival, as may be approved by the Commissioner in a Partner State in specific cases
where the entitled personnel have not been granted an exemption under item 4(4) of
Part A or item 5(3) of Part B:

Provided that this exemption shall apply to entitled personnel who may have

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arrived for a new contract not withstanding their previous residential status in a Partner
State while in execution of another assignment, provided further that each contract is
for a term not less than two years.

(2) One motor vehicle which the ministry responsible for foreign affairs of a
Partner State is satisfied as having been imported as a replacement for a motor vehicle
originally imported under paragraph (1) which has been written off due to accident,
fire or theft:

Provided that customs duty shall be payable at the appropriate rate if the written off
motor vehicle is disposed of locally.

(3) Goods for the official use of the United Nations or its specialised agencies or
any Commonwealth High Commission, or of any foreign embassy, consulate or diplo-
matic mission in a Partner State.

(4) Goods for the use of a high official of the United Nations or its specialised
agencies, or a member of the diplomatic staff of any Commonwealth or foreign coun-
try, where specific provision for such exemption is made by the minister responsible
for foreign affairs.

(5) Goods for the United Nations or any of its specialised agencies for the support
of a project in a Partner State.

(6) On first arrival in a Partner State or within three months of that date, the house-
hold and personal effects, including one motor vehicle, of an employee of the United
Nations, or of its specialised agencies, of any Commonwealth High Commission, or of
any foreign embassy, consulate or diplomatic mission, where the employee:

(a) is not engaged in any other business or profession in a Partner State; and

(b) has not been granted an exemption under item 4(1), (2) and (4) of Part A
or item 5(3) of Part B.

(7) Any motor vehicle acquired free of duty pursuant to the provisions of this item
shall on re-sale or upon other disposition, whether or not for any material considera-
tion, be liable to duty notwithstanding that the period of two years allowed has elapsed.

5. Donor Agencies with Bilateral or Multilateral Agreements with the Partner
States

(1) Household and personal effects of any kind imported by entitled personnel or
their dependants, including one motor vehicle imported or purchased by them prior to
clearance through customs, within ninety days of their first arrival in a Partner State or
such longer period not exceeding three hundred and sixty days from the date of his
arrival, as may be approved by the relevant authority in a Partner State in specific cases
where the entitled personnel have not been granted an exemption under item 4(4) of
Part A or item 5(3) of Part B:

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Provided that the exemption under this paragraph shall apply:

(i) to entitled personnel who may have arrived for a new contract for a term
of not less than two years, not withstanding their previous residential sta-
tus in a Partner State while in execution of another assignment;
(ii) only once every four years where there is an on going project; and

(iii) to an additional motor vehicle where there is a bilateral agreement between
the Government and aid agency entered into prior to the coming into force
of this Protocol.

(2) One motor vehicle, which the Commissioner in a Partner State is satisfied, is
imported as a replacement of another motor vehicle originally imported under para-
graph (1) and which has been written off due to accident, fire or theft:

Provided that any motor vehicle acquired free of duty pursuant to the provisions of
this item shall on resale or upon other disposition whether or not for any material con-
sideration be liable for duty not withstanding that the period of two years has elapsed.

6. International and Regional Organisations

Goods and equipment imported by donor agencies, international and regional organi-
sations with Diplomatic accreditation or bilateral or multilateral agreements with a
Partner State for their official use.

7. The War Graves Commission.

Goods, including official vehicles but not including office supplies and equipment
and the property of the Commission’s staff, for the establishment and maintenance of
war cemeteries by the Commonwealth War Graves Commission.

8. Disabled, Blind and Physically Handicapped Persons

Materials, articles and equipment, including one motor vehicle, which:

(a) are specially designed for use by disabled or physically handicapped
persons or;

(b) are intended for the educational, scientific or cultural advancement of the
disabled for the use of an organisation approved by the Government for
the purpose of this exemption:

Provided that the exemption in respect of motor vehicles shall not apply
to paragraph (b).

9. Rally Drivers

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(1) One motor vehicle for each rally driver and spare parts specified in paragraph
(2) which:

(a) are imported or purchased prior to clearance through customs for use in
the rally;

(b) having been temporarily imported under the Act for use in the rally, are
purchased during the period of temporary importation by a rally driver res-
ident in a Partner State for use in a rally;

(c) Having been imported under conditions whereby exemption of duty is
granted under this Schedule, or whereby remission or refund of duty has
been granted by the Commissioner, are purchased by a rally driver resident
in a Partner State for use in the rally; and

(d) in the case of vehicles only, are assembled in a Partner State and purchased
by a rally driver for use in the rally.

(2) Paragraph (1) shall apply to the following spare parts imported by a rally
driver for use in the rally:

(a) one engine assembled complete, or such individual parts making up one
engine as the rally driver requires, including, in either case, a starter motor,
alternator and clutch;

(b) one gear box assembly complete;

(c) one differential assembly and one front and rear axle assembly, or such
individual parts making up one front and rear axle assembly as the rally
driver requires;

(d) not more than four front suspension assemblies, or such individual parts
making up those assemblies as the rally driver requires: and

(e) not more than two sets of rear shock absorbers.

(3) Exemption of duty under paragraph (1) and (2) is made on the condition that:

(a) it applies only to motor vehicles and parts imported or purchased for use
by bona fide rally drivers resident in a Partner State who have been
approved and recommended to the Commissioner or a person authorised
by him or her in writing, by the rally authorities and accepted as such by
him;

(b) where the motor vehicle or parts ceased to be used or, in the case of parts,
to be reassigned for use, for rally purposes or are disposed off in a Partner
State to persons not entitled to exemption from, or remission of duty, duty
shall, immediately become payable at the appropriate rate; and

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(c) where the motor vehicle parts cease to be used, or in the case of parts, to
be assigned for use, for rally purposes or are disposed off in a Partner State
to persons not entitled to exemption from, or remission of duty, duty shall
subject to paragraph (5), immediately become payable at the appropriate
rate.
(4) Nothing in paragraph (3) (a) or (c) shall prevent the motor vehicle or spare
parts from being used in other rallies in a Partner State.

(5)Where a person to whom an exemption has been granted under this item, fails
to take part in the rally, duty shall become payable at the rate applicable on the date
the Rally ends.

10. Goods and Equipment for Use in Aid Funded Projects.

PA RT B – G ENERAL EXEMPTIONS

GOODS IMPORTED OR PURCHASED BEFORE CLEARANCE THROUGH
CUSTOMS

1. Aircraft Operations

(a) Any of the following goods, which are imported for, use by the national
carrier or any airline designated under an air services agreement between
the Government of a Partner State and a foreign government:

Aircraft, aircraft engines, parts and accessories thereof, air navigation-
al instruments; lighting, radio and radar apparatus and equipment of
specialised nature for the repair, maintenance and servicing of an air-
craft on the ground; ground signs, stairways for boarding aircraft,
imported solely for use in connection with aircraft; catering stores, such
as luncheon boxes, cardboard trays, paper plates, paper napkins,
imported for use by any airline.

(b) Any of the following goods, which are imported for use by an approved
ground handler or caterer:

(i) equipment of a specialised nature for repairs; maintenance and
servicing of an aircraft.
(ii) specialised aircraft loading and unloading equipment; and
(iii) stairways for boarding and loading aircrafts

(c) Aircraft spare parts imported by aircraft operators or persons engaged in
the business of aircraft maintenance:

Provided that such spare parts shall be imported on the recommendation of the

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authority responsible for civil aviation in the Partner State and in such quantities as
the Commissioner may specify.

2. Containers and Pallets

(a) Containers, including boxes, tins, bottles, jars, and other packages in
which any goods not liable to ad valorem duty are packed and imported,
being ordinary trade packages for the goods contained therein;

(b) Pallets and pre-packing slings;

(c) Containers specially designed and equipped for carriage by one or more
modes of transport.

(d) Imported containers, which the Commissioner on the recommendation of
the Director of Veterinary Services is satisfied, and specially designed for
storing semen for artificial insemination;

(e) Packing material of any kind designed for packaging goods for export.

3. Deceased Person’s Effects

Used personal effects, subject to such limitations as the Commissioner may impose,
which are not for re-sale and have been the property of the deceased person and have
been inherited by or bequeathed to the person to whom they are consigned. The per-
sonal effects include one motor vehicle which the deceased owned and used out-
side a Partner State.

4. Fish, Crustaceans and Molluscs

Fish, Crustaceans and Molluscs, fresh (dead or live) chilled or frozen caught and
landed by canoes or vessels registered and based in a Partner State

5. Passengers’ Baggage and personal effects

(1) Goods imported by passengers arriving from places outside the Partner States
shall, subject to the limitations and conditions specified in the following paragraphs:

The goods shall be:

(a) the property of and accompany the passenger, except as provided in para-
graph 7;

(b) for the personal or household use of the passenger in a Partner State; and

(c) of such kinds and in such quantities as the proper officer may allow.

(2) Notwithstanding paragraph (1)(c), the following goods shall not be exempted

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under this item:-

(a) alcoholic beverages of all kinds, perfumes, spirits and tobacco and manu-
factures thereof, except as provided in paragraphs 6 and 7 of this item;

(b) fabrics in piece;
(c) motor vehicles, except as provided in paragraph (3) and (4);

(d) any trade goods or goods for sale or disposal to other persons.

(3) Subject to paragraphs (1) and (2) of this item, the following goods may be
exempted under this item when imported, as baggage by a person on first arrival in a
Partner State whom the proper officer is satisfied is bona fide changing residence from
a place outside a Partner State to a place within a Partner State, where the person has
neither been granted an exemption under this paragraph nor resided in a Partner State
before his arrival other than on temporary non resident visits:

(a) wearing apparel;

(b) personal and household effects of any kind which were in his personal or
household use in his former place of residence;

(c) one motor vehicle, “(excluding buses and minibuses of seating capacity of
more than 13 passengers and load carrying vehicles of load carrying capac-
ity exceeding two tonnes)” which the passenger has personally owned and
used outside a Partner State for at least twelve months (excluding the peri-
od of the voyage in the case of shipment):

Provided that the person has attained the age of eighteen years.

(4) Subject to paragraphs (1) and (2) of this item, the following goods may be
exempted under this item when imported as baggage by a person whom the proper
officer is satisfied is making a temporary visit not exceeding three months to a
Partner State
(a) non-consumable goods imported for his personal use during his visit which
he intends to take out with him when he leaves at the end of his visit;
(b) consumable provisions and non-alcoholic beverages in such quantities and
of such kinds as are in the opinion of the proper officer consistent with his
visit;
(c) that the goods are imported by a returning resident being an employee of
an international organisation the headquarters of which are in a Partner
State and who has been recalled for consultations at the organisation’s
headquarters.

(5) Subject to paragraphs (1) and (2) of this item, the following goods may be
exempted under this item when imported as baggage by a person who the proper offi-

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cer is satisfied is a resident of a Partner State returning from a visit outside a Partner
State and who is not changing residence in accordance with paragraphs (3) and (4):
(a) wearing apparel; (b) personal and household effects which have been in his personal use or
household use.
(6) Subject to paragraph (1) of this item, and subject to sub-paragraph (b) of this
paragraph, duty shall not be levied on the following goods imported by, and in the pos-
session of a passenger:-

(a) spirits (including liquors) or wine, not exceeding one litre or wine not
exceeding two litres;

(b) perfume and toilet water not exceeding in all one half litre, of which not
more than a quarter may be perfume;

(c) cigarettes, cigars, cheroots, cigarillos, tobacco and snuff not exceeding in
all 250 grammes in weight.

The import duty free allowance shall be granted only to passengers who have
attained the age of eighteen years.

(7) Subject to paragraphs (1) and (2) of this item, the exemptions granted in accor-
dance with paragraphs (3), (4) and (5) of this Item may be allowed in respect of bag-
gage imported within ninety days of the date arrival of the passenger or such further
period not exceeding three hundred and sixty days from such arrival as the
Commissioner-General may allow. The duty free allowances granted in accordance
with paragraph (6) of this item shall not be allowed in respect of goods specified in the
paragraph imported in unaccompanied baggage.

(8) Where any person who has been granted an exemption under paragraphs (3) or
(4) changes his residence to a place outside a Partner State within ninety days from the
date of his arrival, he shall export his personal or household effects within thirty days,
or such further period not exceeding sixty days from the date he changes his residence
to a place outside a Partner State, as the Commissioner may allow, otherwise duty
becomes payable from the date of importation.

6. Samples and Miscellaneous Articles

Samples and miscellaneous articles not imported as merchandise which in the opinion
of the Commissioner have no commercial value.

7. Ships and Other Vessels

Passenger and cargo vessels of all kinds of twenty -five net register tonnage or more,
cable ships, floating factories, whale catching vessels, trawlers and other commercial
fishing vessels (other than sport fishing vessels), weather ships, hopper barges;
lighters, pontoons (being flat decked vessels used for the transportation of persons or

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goods) and ferry boats; parts and accessories, but not including batteries and sparking
plugs

8. Preparations for cleaning dairy apparatus Surface-active preparations and washing preparations whether or not containing soap,
specially prepared for cleaning dairy apparatus.
9. Mosquito nets and materials for the manufacture of mosquito nets.
10. Seeds for Sowing All seeds spores and cut plants, imported specially treated, which the relevant
authority in the Ministry responsible for Agriculture has approved as fit for sowing.
11. Chemically defined compounds used as fertilizers Upon recommendation of the authority responsible for Agriculture in the Partner State.

12. Museums, Exhibits and Equipment (a) Museum and natural history exhibits and specimens, and scientific
equipment for public museums; and

(b) Chemicals, reagents, films, film strips and visual aids equipment,
the importation of which is approved in writing by the relevant authority
in a Partner State, imported or purchased prior to clearance through
Customs by the National Museums.

13. Urine bags and hygienic bags

Urine bags and hygienic bags for medical or hygienic use, in such quantities as the
Commissioner of a Partner State may allow.

14. Diagnostic Reagents

Diagnostic reagents recommended by the Director of Medical Services or the Director
of Veterinary Services for use in hospitals and clinics subject to such limitations as the
Commissioner in a Partner State may impose.

15. Plastic sheeting for agricultural, Horticultural or Floricultural use.

Upon recommendation by the Authority responsible for Agriculture in the Partner
State-
(a) Shade netting of materials of plastics;
(b) Reinforced sheeting of polymers of vinyl chloride (PVC) or of polyethyl-
ene;
(c) High density polyethylene (HDPE) sheeting in rolls for use in lining dams
in a farm; and Polyvinyl chloride (PVC) or polyethylene for use in cover-
ing green houses.

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16. Raw materials for manufacture of medicaments

Raw materials imported for use in the manufacture of medicaments.
17. Education

Educational Articles and Materials as specified in the Florence Agreement.

SIXTH SCHEDULE (s 130.)
WARRANT OF DISTRESS

To…………………………………………….

I, …………………………………………………………………the Commissioner by
virtue of the powers vested in me by 130(4) of the East African Community Customs
Management Act, 2004 do hereby authorize you to collect and recover the sum of
………………………………………..due for duty from ……………………………
having his or her premises at ……………………………………and for the recovery
thereof I further authorize that you, with the aid (if necessary) of your assistants and
calling to your assistance any police officer if necessary) which assistance they are
hereby required to give, do forth levy by distress the said sum together with the costs
and charges of and incidental to the taking and keeping of such distress, on the goods,
chattels or other distrainable things of the said person wherever the same may be
found, and all vessels, vehicles, animals, and other articles, used within the partner
states in commercial transactions which you may find in any premises or any lands in
use or possession of the said tax payer or any person on his or her behalf or in trust
for him or her.

And for the purpose of levying such distress you are hereby authorized, if necessary,
with such assistance as aforesaid to break open any building or place in the daytime.

Given under my hand at …………………this ……day of ……………..20….

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