Tribunal upholds KRA’s tariff classification for importation of grain storage silo


Tribunal upholds KRA’s tariff classification for importation of grain storage silo

The Tax Appeals Tribunal has upheld KRA’s tariff classification relating to importation of a grain storage silo and the demand of Ksh. 6,851,200.00 from Mombasa Maize Millers (Nakuru) Limited.

The Tribunal, in a judgment delivered on May 13, 2021, observed that the taxpayer had imported a complete flour milling plant which included grain storage silos

The taxpayer submitted that it imported a milling plant, which includes the grain storage silos and that a complete milling plant cannot function if one of the components such as a grain storage silo is not assembled and connected to the plant.

The taxpayer therefore contended that the correct commodity tariff code for the imported item is 8437.80.00 which it declared on its customs entry.

The KRA’s position however was that the goods imported by the taxpayer were prefabricated structures made of galvanized steel that are assembled on site and which in its considered view are properly classifiable under tariff Code 9406.00.90.

Further, the KRA’s position is that going by the provisions of the applicable law and the East African Community Common External Tariff, the taxpayer ought to have made a written application to make partial consignments to the Commissioner for Customs for the grain storage silos to qualify for import under tariff code 8437.

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