The Kenya Revenue Authority (KRA) has issued a public notice on the facilitation of stripping of containers for goods destined to Zanzibar and Pemba in the United Republic of Tanzania.
Stripping involves offloading various small consignments from a single container.
KRA said it banned the stripping of containers destined for Zanzibar and Pemba on February 21, 2018.
This was based on the request of the Tanzania Revenue Authority in its letter dated December 28, 2017.
On November 29, 2022, the Tanzania Revenue Authority (TRA) wrote to KRA requesting a review of the ban on stripping.
The Authority said the review was to facilitate importers based in Zanzibar and Pemba to be able to transship their goods from the Port of Mombasa.
KRA said it reviewed the same and granted indulgence on stripping of cargo to Zanzibar and Pemba under three conditions.
First, the goods from the Port of Mombasa have to be entered under the Single Customs Territory Framework (SCT) in Zanzibar (Port) before they are allowed to be shipped to Pemba and Zanzibar.
The shipments are also to be cleared under SCT arrangement on duty paid basis and verified by Tanzania Revenue Authority officers stationed in Mombasa before stripping and shipment.
Additionally, KRA enforcement officers must supervise the stripping and loading of the cargo in the Port of Mombasa before shipment.
Notice to Stakeholders & Public
The Authority directed all stakeholders and the public to follow the conditions and avoid any other notice issued concerning the process.
“This Public Notice is meant to inform, bring clarity, and require all stakeholders involved in this process to strictly adhere and comply with the conditions to avoid any inconveniences,” KRA said.
“Members of the public and stakeholders are further notified that; this notice supersedes any other public notice issued concerning the procedure in this matter.”
KRA said it will continue to liaise with the Kenya Ports Authority (KPA) to ensure that standard operating procedures and best practices on transshipment are implemented to protect and facilitate legitimate business.
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KRA Bans Stripping of Goods to Tanzania
The notice issued in 2018 meant that the containers were to remain sealed and shipped intact to Zanzibar and Pemba.
The Kenya Revenue Authority (KRA) has banned the stripping of cargo containers at the port of Mombasa before onward conveyance by dhows to various consignees in Zanzibar.
KRA said the move was meant to curb sea smuggling where cargo is diverted in the ocean, finding its way into the local East African Community (EAC) market.
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The Authority said the volumes of cooking oil destined to Pemba and Ungunja had surpassed the consumption capacity of the two islands as a result of cargo diversion.
In December 2017, KRA seized edible oil cleared at Old Port in the godowns of Mombasa, which points towards the diversion emanating from stripping.
Investigations by KRA and TRA revealed emerging risks and challenges regarding transshipment cargo stripped at the port of Mombasa.
TRA had also reported an increased in cases of smuggling adversely affecting the Zanzibar islands of Pemba and Ungunja.
KRA also affirmed the prolonged risks posed by the stripping of cargo at the Port of Mombasa.
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