III.3.13. Counter-verification
The counter-verification is the checking made after the
removal of the goods from the warehouses. It consists in checking if there are
no errors during the verification, and if the duties and taxes not declared
before are recovered.
III.4. Duties and taxes in Customs services
As any organization which sells the services, Customs services
departments, which is an administration with public vocation, aims to provide
to its «customers» a service of quality, effective and efficient. To
reach its goal, a good structure is established as indicated in its
organization chart and especially a continuous training of its agents is
done.
It is within this framework that it is convenient to speak
about the formulas of computation of the duties and taxes with the objective of
giving the reader of this report the tools for the declaration of the imported
goods.
The Formula for calculating the import
duties:
|
CIF value: FOB +fret+ insurance fees +others
fees
Import Duties = customs value (CIF) * rate relating to
the fiscal base
of the goods
|
The FOB value is the value registered on the invoice before the
loading.
The Freight is the value of the transport used from the
factory to the destination of the goods.
Insurance: calculated according to the nature of the goods.
The rates of the import duties on the products are registered
in the customs tariff and are classified according to whether it is a finished
products, semi-finished product, raw materials and goods of equipment.
28
From the 1st July 2009, the Customs union of the East
African Community (EAC) is operational. Table 1, shows the various rates
applied according to the Common external tariff (CET) of the EAC.
Table 1: Tax rate according to products'
|
PRODUCT
|
RATE
|
|
Finished products
|
25%
|
|
Semi-finished products
|
10 %
|
|
Raw materials
|
0%
|
|
Goods of equipment
|
0 %
|
Source: RRA, Department of the Customs, Tariffs Section.
The value-added tax (VAT)
The VAT was founded by the law n? 06/2001 of January 20, 2001,
law which repeals the law n? 29/91 of June 28, 1991 relating to tax on business
(ICHA). This tax is levied on the supply of the goods and services including
the imports on the rate currently fixed at 18%.
For the imported products, the VAT is received by the
collector of customs on behalf of the receiver of the VAT.
VAT =CIF+ Fees MAGERWA +I.D+T.C (if necessary)
x18%
Tax on Consumption (TC).
T.C = (CIF+ Fees MAGERWA+I.D) * rate of T.C
The tax on consumption in new Common External Tariff (CET) of the
EAC becomes much higher for the products imported when they are produced in the
Member States of the EAC (rice, sugar,....) and for dangerous goods in order to
discourage their consumption (tobacco,...).
29
NB: The tax on consumption for the vehicles does not relate to
the minibuses of 14 places and more, the trucks of any kind, the vans of simple
cabin and the vehicles diesel.
Installment on income tax of companies (WHT).
This installment was founded by the law n?26/1 of the 18/4/2001
and is fixed at the rate of 5% of CIF value. It is paid at the time of the
importation.
However, the importers with fiscal integrity receive the tax
clearance certificate delivered by the commissar general RRA in order to exempt
this installment to them.
WHT= CIF X 5%
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