The Kenya Revenue Authority is inviting comments on the valuation of used motor vehicles.
What’s the difference between the new invitation for public participation and the one in May?
Judicial precedent is a beneficial thing. Who remembers Petition 190/2018: Car Importers Association vs. KRA?
The Association petitioned KRA’s publication of retail prices (CRSPs used in calculating import duty) without public participation.
KRA is now accepting comments on free-on-board (FOB) valuations used for motor vehicles in preparation for a new valuation approach.
Stakeholders had until June 15th, 2024, to make submissions. However, the process was extended.
In the new invitation, KRA makes it explicit that the gist of this exercise is that there will be a shift from the use of the current retail selling price to the use of transaction value in the valuation of used motor vehicles.
This time, there is an additional rider, and the public participation aligns with the 4th Schedule of the East African Community Customs Management Act.
It is important to note that bullet point 2 ties closely with the first one because the 4th Schedule to EACCMA provides for 6 methods for calculating the customs value of goods, one of which is the transaction value method.
Now stakeholders have until August 31st to submit their comments.
