Mr. Michael Waweru CG KRA (top) and (bellow) are Clearing agents on strike at Malaba border post in the past.
By A. Wakhungu
THE Kenya Revenue Authority has been accused by Clearing Agents of imposing harsh and unregulated customs agents licensing rules that are contrary to the East African community customs management body.
In a statement sent to the press dated 30th August 2011, addressed to the head of civil service Ambassador Francis Muthaura, it accused Kenya revenue authority commissioner general Michael Waweru and Kenya International Freight and Warehousing Association (KIFWA) for flouting the East African Community Management act of 2004 section 145 and regulations 2006 of the act section 150 which gives guidelines and conditions to be met by the clearing agents before applying or renewal of their licenses.
The agents called on the head of public service to revoke the notice issued on 24th August 2011as illegal and having no justification.
The clearing agents alleged that some new and unconstitutional guidelines have been sneaked into the original document without the consultations and agreement of the clearing agents.
The agents say that Kenya Revenue Authority and KIFWA have been holding individual closed door consultations to deliberate how best to fix the new regulations into the document so as to enrich both the two parties but infringing on the rights of the agents.
“This is not a one man show that can be discussed and agreed without the involvement of all stakeholders being brought on board for negotiations, we wish to be consulted as KIFWA members and our decision should be respected, it read.
The agents claim that the backdoor rules were published in the section of the media (Standard) on 24th August 2011 outlining conditions to be used or renew customs agent’s licenses.
Among the published rules include all members having a copy of the East African Community Freight Forwarding Practicing Certificate (EACFFPC).
Also the agents will need to have domestic taxes compliance certificate, certificate of good conduct, Kifwa inspection clearance certificate, lease agreement/title deed of the office, be a full paid member of Kifwa and a member of Kifwa, besides having company profile.
The agents termed the rules as null and void stating the in fact the government had introduced a policy of reducing cumbersome rules while applying for a license and rubbished the two organizations for going against the government stand.
This, it continued has led to the frustration of the efforts of improving the economy through the investors injecting funds and business in the country.
They also requested the public service head to direct the members to be served by customs service sales department and not by Kifwa stating that the ongoing Kifwa wrangles would affect the smooth running of the exercise failure to which they will forfeit to remit taxes and challenge the move in court.
Reacting on the issue KIFWA chairman Hezron Awiti Bolo rubbished the agents’ sentiments saying only unscrupulous and dubious clearing agents would oppose the new laws.
We have put up laws to govern the smooth running of the clearing operations in favor of our local agents who are facing stiffer competition from the multi-national companies who are eyeing the lucrative jobs at the port of Mombasa.
“I don’t see any genuine agent complaining on the newly imposed rules that are set to streamline and bring sanity in the clearing and forwarding fraternity as foreign shipping lines have discovered a business haven within the port of Mombasa and are shifting their bases here due to lack of strict and governing rules:.
He called on the agents to tow the line and maintained that better things were lined up in ensuring that Kifwa members access quality training.
We want to empower our boys/girls by training them and we are calling upon them to come and register as Kifwa members so as to be entitled to Kifwa trainings slated to commence soon.
He said the association was currently training over 2000 members for a period of 6 months after which another barge will be enrolled.
Awiti said this was awake up call by the association to ensure that all its members receive quality training on matters relating to the association and to be conversant in offering quality and efficient services.
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