KRA rolls out new customs system to curb fraud

KRA rolls out new customs system to curb fraud
A crane operator moves cargo at the Port of Mombasa

The Kenya Revenue Authority (KRA) will in two weeks roll out a new customs system aimed at curbing fraud and redirection of export bound goods into the local market.

The Integrated Customs Management System (iCMS) will consolidate all the existing customs systems into one modern with landlocked countries in the regional that use Kenya as an entry point for goods able to track the same.

The system will be rolled out in phases with all import declaration forms expected to be submitted into the system from the October 25.

“KRA is in the process of rolling out the integrated customs management system. iCMS is a robust intelligence system that consolidates all customs cargo clearance processes to one point of access to improve customer experience,” KRA said in a notice.

The system will first deal with air cargo coming into the country with all sea bound cargo expected to process clearance on the system from next month.

KRA commissioner for customs and border control Julius Musyoki said a major challenge to regional trade has been fraud and tax evasion with the new system expected to seal existing loopholes.

“The system is bound to be a game-changer in customs processing as it will align operations with international best practices and improve the ease of doing business not only in Kenya but also the in East African Community, Mr Musyoki said.

The current customs system, Simba 2005/2014, runs on a multiplicity of sub-systems and requires multiple points of authentication for users hence sometimes takes more time.

While it had enhanced customs management during the period, it had been prone to cargo redirection with some importers even evading paying taxes all together.

Mr Musyoki said the new system would reduce the clearance time for imports and exports by at least 60 percent.

“The issue of possible diversion of transit goods into the local market or disappearance of containers will be a thing of the past,” he said.

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