The Kenya Revenue Authority is set to auction cargo for companies and individuals that have overstayed at the Inland Container Depot (ICD) in Nairobi if the owners will not make arrangements to collect them.
The KRA warned that companies and individuals have just a couple of weeks to collect their cargo or face an auction on November 18. This is likely to see many businesses losing their investments if the auction will be actualized by KRA.
“Pursuant to the provisions of section 42 of the East African Community Customs Management Act, 2004, notice is given that unless the under-mentioned goods are entered and removed from the Customs Warehouse within thirty (30) days from the date of this notice, they will be sold by public auction on November 18, 2020,” Ms. Rosemary Mureithi, the KRA Nairobi ICD manager said.
According to the Kenya Revenue Authority (KRA), companies and individuals with overstayed cargo at the depot owe it millions of shillings from accumulated demurrage charges at the facility, and an auction is set to regain the money.
The tax agency normally gives exporters 15 days and importers 12 days free storage for consolidation of cargo prior to shipment and pick-up, respectively. Importers are required to clear cargo within the free storage period of four days.
Additionally, if the exporters and importers fail to follow protocol, they are granted 17 more days to clear the cargo but have to pay storage charges before the cargo is finally released from ICD.
According to the Kenya Revenue Authority, this time round there has been a lot of overstayed cargo at the Inland Container Depot (ICD) in Nairobi belonging to both companies and individuals and if not cleared by November 18th, it will be auctioned.
The coming of Covid-19 has hit hard on most businesses and individuals in Kenya. This has led to most businesses slowing down on investment and expansion plans.
READ: KRA To Reward Whistleblower For Revealing Tax Cheats