The Kenya Revenue Authority (KRA) has started vetting afresh all the container freight stations (CFS) and those that will not meet prescribed requirements shall be struck off the list and become ineligible to receive cargo. Speaking on Friday during a dinner held by the Kenya International Freight and Warehousing Association (KIFWA), KRA Commissioner General John Njiraini said the re-vetting was informed by the need to weed out malpractices in the shipping industry. “Towards this end, a re-vetting process has commenced that involves a cross-section of Government agencies, with the aim of determining the suitability of the CFSs in existence,” he said.

Njiraini said the process will assess a broad spectrum of issues including the integrity of proprietors and key management of freight stations. Until then, the ban imposed in August 2012 on fresh licensing of CFSs would stay in force, added Njiraini. The taxman is also working on re-organising the processes used in assessing suitability for licensing of clearing agents, noting that of all the major vocations only clearing and forwarding lacks a properly structured learning and qualification process “Because of the weak regulatory regime, the business continues to attract persons of dubious character and for whom no effective disciplinary regime exists,” he said. He revealed that a legal framework to govern the training, certification, licensing and regulation of clearing and forwarding agents has already been developed.

“This will place the sector at par with other equally critical professions including accountancy, law and the sciences,” he said during the event that saw KIFWA re-brand. See also: Njiraini said that the research work to inform the initiative is in advanced stage and a draft law will soon be unveiled for discussion with KIFWA and other stakeholders. In the meantime, licensing of clearing agents has been suspended until further notice, he added. The director also regretted that customs agency has concentrated more on revenue collection than their other functions which include border security enforcement and trade facilitation To this end, he revealed that the Customs Services Department will be renamed to Customs & Border Control Department with effect from February 2015.

“A fully-fledged division has been established within Customs to deal with Enforcement and Border Control operations. The new division’s mandate covers a broad array of activities including targeting, first line investigation of Customs frauds, implementation of technological solutions to support enforcement, coordination of Inter-Agency operations and the management of One Stop Border Post facilities,” he said. The taxman will soon be announcing the appointment of a new Head of Enforcement & Border Control within Customs & Border Control Department. “We are also presently implementing the framework agreed for joint Inter-Agency coordination in the investigation of serious security and Customs related crimes dealing with serious Customs fraud cases including those involving concealment, mis-declaration and trafficking in prohibited substances,” he said.

Source: Standard Digital

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