FINAL DRAFT PROCEDURE MANUAL - KAMPALA

ABBREVIATIONS AEO Authorized Economic Operator BCO Border Control Officer CFS Container Freight Station CAMIS Cargo Management Information System EACCMA East African Community Customs Management Act, 2004 EACCMER East African Community Customs Management (Enforcement) Regulations, 2010 COMESA The organisation established by the Treaty establishing The Common Market for Eastern and Southern Africa, 1994; EACDRR East African Community Duty Remission Regulations EACCMA The East African Community Customs Management Act 2004 EACCMR The East African Community Customs Management Regulations, 2010 EACCMWAR The East African Community Customs Management (Working Arrangements Between The Directorate And The Customs) Regulations, 2009 EPZ Export processing Zone HSR Health and Safety Regulations ICD Inland Container Depot LO-LO “Lift-On - Lift-Off” OSF Oil Storage Facility PCA Post Clearance Audit PIN Personal Identification Number RO-RO “Roll –On – Roll-Off”. SADC The Southern African Development Community, 1992; TIN Taxpayer Identification Number 1

TIP Temporary Importation Papers WCO World Customs Organization 2

DEFINITION OF TERMS AEO Authorized Economic Operator: party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards. AEOs include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, distributors. AEO The process of approving an operator as and AEO. authorization Agent In relation to an aircraft, vehicle or vessel, includes any person who acts on behalf of the owner and who, or on whose behalf any person authorised by him or her, does anything required or authorised by this Act to be done by the agent: Provided that the owner of any aircraft, vehicle or vessel, if resident or represented in a partner state, shall either himself or herself or through his or her representative be deemed to be the agent for all purposes of the EACCMA if no such Agent is appointed. Ambergris (Physeter Macrocephallus) a substance of the consistency of wax (aka Ambra found floating in the Indian Ocean and other parts of the tropics and grisea, Ambre also as a wavy substance intestines of the sperm whale, which is gris, believed to be in all cases its true origin. It is white, ash-grey, ambergrease, yellow or black; and often variegated like marble mainly or grey amber) cholesterol, with fatty oils and steroids and has a musky scent. It is used in making perfumes. Approved Any quay, jetty, wharf, or other place, including any part of a Customs airport, appointed by the Commissioner by notice in the place of Gazette to be a place where goods may be loaded or unloaded. loading and approved place of unloading Assess Parcel An imported parcel (including an F.D.D trade parcel), regardless of its value, where the declaration on the parcel is sufficient to enable the duty to be assessed. Audit An audit goes deeper than an inspection. It is a structured and forensic examination of trader’s relevant commercial systems, financial and non-financial records, physical stock and other assets, internally generated data and that produced independently of the trader with the objective of: • Measuring levels of compliance ; 3

• Improving future compliance; • Supporting traders who wish to comply; • Deter non-compliance. Boarding Any place appointed by the Commissioner by notice in the Gazette station to be a place for aircraft or vessels arriving at or departing from any port or place to bring to for the boarding by or the disembarkation of officers. Bond A bond is a contract executed under seal whereby a person or persons (sureties, guarantors or underwriters) solemnly bind themselves to pay some other person up to a specified sum of money as a penalty for the failure by some other person (the principal) to perform certain agreed acts. Bonded A bonded factory means any premises licensed and bonded by the Factory Commissioner for the manufacture of goods for export. Bonded Any warehouse or other place licensed by the Commissioner for the warehouse deposit of dutiable goods on which import duty has not been paid and which have been entered to be warehoused. Break Bulk This is cargo which is not containerised and usually shipped in the Cargo form of cartons, pallets, loose pieces etc. Cargo Includes all goods imported or exported in any means of transport but excluding goodsexcluding goods intended to be used as stores to be consumed aboard such a means of transport .transport. Cheti cha Permit for coastwise carriage of goods. Ruhusa Coastwise All goods conveyed by air, sea or inland waterways from a part of a partner state to another part thereof shall be deemed to be carried coastwise, Refer to section 97 of EACCMA. Commercial Any person who satisfies the proper officer that he is soliciting traveller orders for merchandise on behalf of a foreign business entity. Commissioner Commissioner of Customs appointed under section 5 of the EACCMA. Committee The Committee responsible for Customs, established by the Council. Consignment One or more parcels received in a parcel mail by an importer from Council the same sender. The Council of Ministers of the Community established by article 9 of the treaty. 4

Counterfeit Any goods, including packaging, bearing without authorization a trademark trademark which is either identical or indistinguishable from a goods validly registered trademark. Countervailin An import duty levied for the purposes of offsetting a subsidy g duty bestowed directly or indirectly upon the manufacture, production or export of that product. Countervailin Measures taken to counter the effect of subsidies on imported goods g measures Customs area Any place appointed by the Commissioner for the deposit of goods subject to Customs control. Customs The principal computer system used to process entries such as Clearance SIMBA or ASYCUDA System Customs Co- The council established by the Convention establishing the Customs operation Cooperation Council, 1952, otherwise known as the World Customs Council Organization. Customs A declaration on the reverse of the parcel advice or a declaration Entry prepared in accordance with the directions on the parcel advice. Customs laws Includes the EACCMA, Acts of the Partner States and of the Community relating to Customs, relevant provisions of the Treaty, the Protocol, regulations and directives made by the Council and relevant principles of international law. Customs The Customs administrations of the Partner States. Customs Any amounts collectable by the Customs in accordance with the revenue provisions of the Customs laws. Customs Any place approved by the Commissioner for the deposit of warehouse unentered, unexamined, abandoned, detained, or seized, goods for the security thereof or of the duties due thereon. Designated Any officer properly assigned to undertake the task in question. Officer Diplomat A diplomat is a person appointed by one state to conduct diplomatic functions with another state or international organisation. Diplomats represent and protect the interests and nationals of the sending state. Director The Director General of Customs in the Directorate of Customs. General Directorate The Directorate of Customs established by the Council under Article 75(3) of the Treaty. 5

Document Includes magnetic tapes, disks and microfilms. Dollar United States dollar and includes the equivalent in the currency of the Partner States. Dunnage Dunnage is a term for off-cut or spare pieces of scrap wood. Dunnage is used to support loads and prop tools and materials up off the ground. In the ship loading environment dunnage means packing, wood, or dunnage bags used to immobilize cargo or securing the load. Duty Includes any Cess, levy, imposition, tax, or surtax, imposed by any Act related to Customs. Duty drawback A refund of all or part of any import duty paid in respect of goods exported or used in a manner or for a purpose prescribed as a Duty condition for granting duty drawback. Remission Means the waiver of duty or refraining from exacting of duty Entry in the An entry in a form prescribed by the regulations. Prescribed Form Examination Physical inspection of goods to verify their true characteristics such of Goods as origin, condition, quantity, quality and value and, in so doing, determine the correctness of the Customs declaration. An examination can also be made to confirm the distinguishing features of declared goods, such as serial numbers. Thus, in addition to determining the characteristics of the goods, examination may also be undertaken to establish or to verify the identity of the goods. Export To take or cause to be taken out of the Partner States. Export duties Customs duties and other charges having an effect equivalent to Customs duties payable on the exportation of goods. Export A designated part of Customs territory where any goods introduced Processing thereto are generally regarded, in so far as import duties and taxes Zone (EPZ) are concerned, as being outside Customs territory. Foreign Any country other than a Partner State. country Foreign port Any port in a foreign country. 6

Franc de An F.D.D. (Franc de Droits”) parcel is one on which a deposit has Droits been paid by the sender to cover any duty which may be assessed in (F.D.D.) the country of destination. Parcels Geographical Those indicators which identify a good as originating in the territory indicators or location in that territory where a given quality, reputation or other characteristic of the good is essentially attributable to it by virtue of that geographical origin. Goods Includes all kinds of articles, wares, merchandise, livestock, and currency, and, where any such goods are sold under the EACCMA, the proceeds of such sale. Government Any place provided by the Government of a Partner State, and warehouse approved by the Commissioner, for the deposit of dutiable goods on which duty has not been paid and which have been entered to be warehoused. Green channel That route of exit from any Customs arrival area where travellers using that route are deemed to have declared that they have in their possession goods in quantities or values not exceeding their duty free allowance. Import To bring or cause to be brought into the Partner States from a foreign country. Import duties Any Customs duties and other charges of equivalent effect levied on imported goods. Inspection An examination of a premises, process, record, etc to verify that procedures are being followed, transactions are recorded correctly and/or declarations - made in respect of consignments processed over a period of time - were correctly made. Inspection also includes checking that goods stored, such as in a bonded warehouse are still intact or goods imported for use in certain approved process were actually properly used in those processes. Intellectual Copyright and related rights. property Lift-On - Lift- This literally describes how containers are loaded or offloaded from Off ships. Manufacturin A facility extended to manufacturers to import plant, machinery, g under bond equipment and raw materials duty free, for exclusive use in the manufacture of goods for export. 7

Master Includes any person for the time being having or taking charge or command of any aircraft or vessel. Nahodha Captain or master of a Dhow. New Resident A new resident is any person that comes to take up residence in a Partner State for the first time or a citizen of a Partner State who has been outside of a Partner State for not less than two years and is coming back to take up residence. Officer Includes any person, other than a labourer, employed in the service Owner of the Customs, or for the time being performing duties in relation to the Customs. In respect of means of transport, includes every person: o in possession or control thereof; or o acting as agent for the owner; or o who receives freight or other charges in respect thereof, or In respect of goods, includes any person: o holding himself or herself out to be the owner, importer, exporter, consignee, agent; or o in possession of the goods; or o who is beneficially interested in the goods; or o having control of or power of disposition over, the goods. Package Includes every means by which goods for conveyance may be cased, covered, enclosed, contained, or packed. Personal data Data concerning an identified or identifiable natural person. Port Any place appointed by the Council to be a port for the purpose of the Customs laws and, in relation to aircraft, a port means a Customs airport. Post The audit procedure conducted by the Customs authority within five Clearance years from the day following the release date of the imported or Audit exported goods. Post Office The Partner State Posts body established in accordance with a Partner States' laws. Postal article Includes any letter, postcard, newspaper, book, document, pamphlet, pattern, sample packet, small packet, parcel, package, or other article whatsoever, in course of transmission by post. Potential risks Risks that exist from a theoretical point of view. Potential risks are not related to an individual operator. 8

Premises The place of residence, business address, operations site, production and business facility and place where the related products, records, documents, accounting journals, computer files and other information are stored or located. Profile A predetermined combination of risk indicators, based on information which has been gathered, analysed and categorised. Prohibited Any goods the importation, exportation, or carriage coastwise, of goods which is prohibited under the EACCMA or any law for the time being in force in the Partner States. Proper Any officer who, by virtue of his position, has the right or duty to Officer require the performance of, or to perform, the acts referred to in the EACCMA. Protocol The Protocol on the Establishment of the East African Community Customs Union and any annexes thereto. Red channel That route of exit from any Customs arrival area to be used by travellers who arrive with goods in quantities or values exceeding their duty free allowance. Re-exports Goods, which are imported and are under Customs control for re- exportation. Refinery A bonded warehouse licensed by the Commissioner for the processing or treatment of oils. Registered Person authorized to access the Customs Computerized System. user Requested Customs administration of a Partner State from which assistance is Customs requested. Requesting The Customs of a Partner State which requests for assistance. Customs Restricted Any goods the importation or exportation of which is prohibited goods under the EACCMA or any other law save in accordance with any conditions regulating such importation or exportation. Returning A returning resident is a person who goes out of a Partner State for Resident a period not exceeding two years and is returning home. Rights holder A person who, according to the laws in force, is an owner of a registered trademark, a holder of a copyright or a holder of any other intellectual property. Risk The potential for non-compliance with Customs laws. 9

Risk analysis Systematic use of available information to determine how often defined risks may occur and the magnitude of their likely consequences. Risk areas Those Customs procedures and categories of international traffic which present a risk. Risk The systematic determination of risk management priorities by assessment evaluating and comparing the level of risk against predetermined standards, target risk levels or other criteria. Risk Specified selectivity criteria such as: specific commodity code, indicators country of origin, country whence consigned, licensing indicator, value, trader, level of compliance, type of means of transport, purpose of the stay in the Customs territory, financial consequences, or financial situation of the trader/person. Risk The systematic application of management procedures and practices management which provide Customs with the necessary information to address movements or consignments which present a risk. Roll –On – This literally describes how certain non-containerised cargos are Roll-Off loaded or offloaded from flat ships by rolling on or off. Search An examination of premises, place, means of transport, person, etc to detect uncleared goods that may be secreted thereon or undeclared. A search, as opposed to routine examination, is generally undertaken to counter smuggling. Selectivity Specific criteria which, when taken together, serve as a practical criteria tool to select and target movements for the potential for non- compliance with Customs law. For dutiable goods these include the history of the importer, exporter, carrier, agent, etc., the origin and routing of the goods, and prohibitions or restrictions. Smuggling The importation or exportation into or out of a Partner States of goods without properly declaring them to Customs with the intent to defraud Customs revenue or evade Customs control. Stores Goods for use in aircraft, vessels and trains engaged in international transport for consumption by passengers and crew or for sale on board. Subsidy Assistance in the production, manufacture, or export of goods given by a government, including Government of a Partner State, or by a public body to any entity. This includes direct payments, such as grants, loans or measures with equivalent effect such as guarantees, operational or support services or facilities and fiscal incentives. Sufferance Any place, other than an approved place of loading or unloading at which the Commissioner may allow any goods to be loaded or 10

wharf unloaded. Systems-based Measures to ensure that a trader’s system contains the checks and control balances necessary for effective compliance with Customs laws. Targeting Identifying passengers, goods and conveyances which match a given profile that indicates an illegal activity. The Act Unless the context otherwise requires any reference to the Act in this manual should be construed to mean the East African Customs Management, 2004. Tons register The ship's net tonnage as ascertained and registered according to the tonnage regulations applied in a Partner State Tourist A tourist is a person whose residence is outside of a Partner State and comes to a Partner State as a visitor. The visit could either be for business or pleasure. Trade Parcel A parcel imported for trade purposes where the landed value of the parcel or the consignment exceeds the allowed amount. Trademarks Any sign including words, names, letters , numerals, figurative and combinations of these used by manufacturers or merchant to identify its goods distinguish them from those manufactured or sold by others Transfer The movement of goods from one Partner State directly or indirectly to another Partner State, but shall not include goods in transit, goods for transhipment or goods for warehousing in a bonded warehouse Transhipment The transfer, either directly or indirectly, of any goods from a means of transport arriving in a Partner State from a foreign place, to another departing to a foreign destination. Transire A certificate of clearance issued to any person under section 100 of the EACCMA to carry goods coastwise or to transfer goods Transit The movement of goods imported from a foreign place through the territory of one or more of the Partner States, to a foreign destination Transit period The period within which transit goods should have exited the country from date of the transit entry. Transit shed Any building, appointed by the Commissioner in writing for the deposit of goods subject to Customs control. 11

Traveller • Any person who temporarily enters the territory of a country in which he or she does not normally reside (“non-resident”) or who leaves that territory; and • Any person who leaves the territory of a country in which he or she normally resides (“departing resident”) or who returns to that territory (“returning resident”). Uncustomed Includes dutiable goods on which the full duties due have not been goods paid, and any goods, whether dutiable or not, which are imported, exported or transferred or in any way dealt with contrary to the provisions of the Customs laws. Validation Procedure whereby the supply chain of an AEO, and all relevant processes employed by them to reach that status, are subject to full and transparent review by a Customs administration and/or a Customs-designated third party. Vehicle Includes every description of conveyance for the transport on land of persons or goods. Vessel Includes every description of conveyance for the transport by water of human beings or goods, and is deemed to include the following craft: includes fleet auxiliaries, merchant ship auxiliaries and troopships flying the flag of any country. Voyage Includes flight by aircraft. Warehouse The holder of a licence granted in respect of a bonded warehouse. keeper Warehoused Deposited in a Government or bonded warehouse with the authority of the person in charge of that warehouse. Wharf owner Includes any owner or any occupier of any approved place of loading or unloading or of any sufferance wharf. 12

CHAPTER I ADMINISTRATION, MANAGEMENT CONTROLS 1. WORKING ARRANGEMENTS BETWEEN CUSTOMS ADMINISTRATIONS AND EAC DIRECTORATE OF CUSTOMS (1) ROLE OF THE EAC DIRECTORATE OF CUSTOMS The Directorate of Customs is responsible for the EACCMA s.3 following functions: a. Initiation of Customs and related trade matters within the Community In executing this function the Directorate shall, on its own EACCMWAR initiative, undertake the following tasks: 3 i) Compile relevant information from the Partner States; ii) Develop a framework for the East African Community Customs policy and strategy; iii) Arrange meetings to consider, review and adopt Customs policy and strategies; iv) Sensitise stakeholders on the East African Community Customs policy and strategy; and v) Monitor the implementation of the East African Community Customs policy and strategy. b. Coordinating and monitoring the administration of the Common External Tariff In executing this function the Directorate shall, on its own EACCMWAR initiative, undertake the following tasks: 4 i) coordinate the updating and dissemination of the East African Community Common External Tariff in view of WCO amendments to the Harmonised System or in line with directives of the Council; ii) compile and disseminate information on tariff rulings and opinions made by World Customs Organization; iii) compile, analyse, harmonise and circulate tariff rulings and opinions made by Customs; and 13

iv) provide technical and administrative interpretation on the East African Community Common External Tariff. c. Coordinating and monitoring the administration of internal tariff elimination In executing this function the Directorate shall undertake EACCMWAR the following tasks: 5 i) update the internal tariff elimination programme in line with revisions of the EAC External Tariff or as decided by the Council; ii) notify Customs of the revisions and monitor and guide application of the programme d. Coordinating And Monitoring The Enforcement Of Customs Law In executing this function the Directorate shall undertake EACCMWAR the following tasks: 6 i) provide technical and administrative interpretation of the Customs law; ii) initiate, compile and analyse proposals on amendments to the Customs law for consideration by the Council; iii) identify hindrances encountered in the enforcement of the Customs law and report to the Committee and the Council for consideration; iv) publish and circulate Customs legal instruments to Partner States and provide guidance on implementation; v) collaborate with the Customs to develop and undertake sensitisation programmes for stakeholders on Customs law and procedures; vi) provide guidance on the implementation of the various schemes under the Customs laws. e. Coordination and monitoring the enforcement matters In executing this function the Directorate shall undertake EACCMWAR the following tasks: 7 i) Coordinate the development and monitor the 14

implementation of regulations on compliance and enforcement; ii) Liaise with Partner States, enforcement agencies and relevant international bodies to gather information on Customs offences including drug trafficking, trade in counterfeits and pirated goods, and control of prohibited and restricted goods; iii) compile and disseminate the information and publications on Customs offences to all Partner States; iv) facilitate the exchange of information and publications on illicit traffic of goods; v) coordinate sensitisation programmes for stakeholders on Customs offences and compliance; and vi) coordinate administrative assistance between Customs administrations of the Partner States. f. Coordinating and monitoring trade facilitation In executing this function the Directorate shall undertake EACCMWAR the following tasks: 8 i) Research and studies on Customs procedures to identify areas in the Customs processes for review and improvement; ii) Initiate and coordinate the development and review of harmonized and simplified Customs procedures and guidelines; iii) Compile and disseminate information on Customs procedures based on international best practices; iv) Provide guidance and advice to Customs on the implementation of harmonized and simplified Customs procedures; and v) Inform and consult with the Commissioners on Customs issues raised by stakeholders for action. g. Coordinating and monitoring the administration of the Rules of Origin In executing this function the Directorate shall undertake EACCMWAR the following tasks: 9 i) Provide technical advice and co-ordinate investigations 15

relating to the Rules of Origin; ii) Collect and disseminate to the Partner States, lists of specimen signatures and stamp impressions of authorized signatories to the EAC Certificate of Origin; iii) Publish and distribute the Rules of Origin and the manual on application of East African Community Rules of Origin; iv) Advise on the interpretation of the Rules of Origin; and v) Facilitate exchange of information among Partner States on queries and verification findings pertaining to the implementation of the Rules of Origin. h. Establishment and maintenance of information database This task includes development of regional EACCMWAR interconnectivity of Customs systems and establishment 10 of a Customs data bank for depository, analysis, and dissemination of Customs information in relation to: i) Imports, exports, re-exports, transit, exemptions, temporary imports, transhipments; ii) Classification and valuation rulings; iii) Customs valuation; iv) Customs offences and information on illicit trade; and v) Such other information relating to Customs as the Directorate may request from a Partner State; i. Further Roles of the Directorate EACCMWAR 11 – 17 i) Undertake, coordinate and disseminate research and studies on Customs for the purpose of identifying areas for review and Customs policy formulation; ii) Coordinate Customs related negotiations and take necessary steps to enable and co-ordinate accession and implementation of relevant international conventions; iii) Coordinate the development and monitor implementation of joint border control programmes; iv) Initiate and undertake studies and programmes 16

aimed at enhancing quality assurance and integrity, and collaborate Customs and other organizations with like programmes; v) Arrange and coordinate meetings of the committee and any other meetings to address Customs Union matters; vi) Inform the Directorate of the hindrances to Customs operations that may need to be addressed within the East African Community institutional framework; vii) Initiate, develop and undertake training in the following Customs areas: • Rules of origin; • Tariff and classification; • Customs valuation; • Common External Tariff; • Customs law; • Enforcement, prevention, investigation, and suppression of Customs offences; and • Any other relevant area. (2) THE ROLE OF CUSTOMS ADMINISTRATIONS In order to support and facilitate the effective implementation of the mandate of the EAC Directorate of Customs the Customs Administrations of the Partner State Customs shall undertake the following action: a. Submit proposals, Customs information and facilities to the Directorate for consideration; b. Furnish any information required and requested by the Directorate to co-ordinate enforcement interventions including: i) Classification rulings and opinions made by Customs; ii) Offences committed under Customs law of the community for dissemination; 17

iii) Queries in respect of origin of goods received and how they were resolved; iv) Joint origin verifications and the findings thereof. v) Report to the Directorate hindrances encountered in the application of the Customs law of the Community; vi) Submit proposals on issues for review on the internal tariff elimination programme; vii) Provide information to the Directorate for publication in the Gazette by Council, as provided in the Act; viii)Share information on the Customs modernisation programmes to facilitate harmonization; ix) Submit to the Directorate lists of signatories to the EAC Certificates of origin and stamp impressions for circulation to Partner States; x) Regularly update and exchange among Customs as well as submitting to the Directorate of originating goods that are commonly traded across borders by small scale traders; xi) Avail training facilities and allow the Customs officers to participate in the training exercises; and xii) Ensure competent representation in all EAC meetings. (3) MANAGEMENT CONTROL a. Levels of management control Management control occurs at the following two levels, namely National Level and undertaken by regional or national managers and Local level undertaken by station managers and/or supervisors. i) Management control at Local Level 18

• Creation of Management Control profile Deleted: The management control folder is a tool used by the station manager or Team Leader to keep track of activities in a 19 particular unit. It contains the following categories of information: • Details of staff These are any pertinent staff details that must be on hand, including: o Full names, ages and addresses; o Contact numbers (home, work, cell); o Employee numbers, grades, length of service o Current job titles, job descriptions, grades, place s worked o Performance Scorecards o Personal Development and Training Plans o Record of staff on leave and other observances; o Details of accommodation occupied; o Record of counselling and disciplinary proceedings; etc • Details of assets These assets to be detailed in the assets register range from office equipment to vehicles and equipment such as generators. o Management records/documentation

- Operational plans and performance targets - Minutes of team meetings and a log of actions taken or to be taken - Any special instructions about work being done, (i.e. those supplementing the standing instructions). - Books held (e.g. official instructions, tariff handbooks and the Customs Management Act, Customs Regulations and other relevant laws). - Record of major incidents occurring including offences discovered, large seizures made and details of action taken; - Record of inspections by visiting auditors or inspectors; - Record of inspections by the manager of persons appointed by him; etc o Statement of risks and control measures A statement of all the risks in all areas of work under the control of the particular manager; All the control measures such as checks procedures, cashboxes, safes, etc implemented or to be implemented to address risks; All security measures taken or to be taken to safeguard cash and security items such as sensitive records, stamps, and similar valuables; • The frequency with which each control measure will be monitored 20

All reports or endorsements of findings including any corrective action taken or planned • Development of the statement of risks and control measures The development of the statement of risks and control measure forms the core of the Management Control Folder and managers must spend a lot of time developing this important tool. The following steps/guidelines must be followed: Analyse the goals of the unit or team as given by senior management and define a comprehensive set of objectives required to achieve those goals. A good objective is SMART: Simple: Simply formulated so at the be easily understood; Measurable: Must contain measurable or observable performance measure, e.g. to increase revenue collections by 10% ; Attainable: It must be challenging but not too onerous as to be unachievable; Realistic: It must take into account the realities of the circumstances; Timed: There must be a timeframe within which each objective must be achieved; Each objective should be seen to fit into a clear hierarchy of objectives leading all the way to overall aim of the Customs Administration and must be reviewed periodically and 21

amended as required. Formatted: Bulleted + Level: 1 + Aligned at: 0\" + Indent at: 0.25\" • Identify, analyse, prioritise the risks Formatted: Bulleted + Level: 1 + Aligned at: 0\" + Indent Once the objectives are clearly defined, it becomes possible at: 0.25\" to identify the risks or any occurrence that is likely to militate against the attainment of the unit’s objectives. Formatted: Bulleted + Level: 1 + Aligned at: 0\" + Indent These risks may be categorised as follows: at: 0.25\" External Risks: These are risks associated with the 22 behaviour of clients, other persons or agencies outside the Customs Administration; Internal Risks: These are risks associated with behaviour of staff and/or other divisions/units within the Customs administration; Risks inherent in the environment: These are circumstances in the environment which tend to encourage non- compliance of any kind such as lack of examination facilities at a border crossing; Although this risk assessment is localised to the activities of one unit, national risk profiles should be taken into account. • Define the best procedure or mechanisms to minimise or control the risk For every risk identified there must be a control measure devised and implemented. A list or possible risk and proposed control measures are detailed on Appendix I to this Chapter. • Assess the extent of the managerial time and effort required The importance or significance of each risk must be

assessed by the manager. The greater the risk, the higher Formatted: Bulleted + Level: 1 + Aligned at: 0\" + Indent the impact of its consequences. When it materialises at: 0.25\" determines the management attention it must be given as well as the amount of the manager’s time spend on Formatted: Bulleted + Level: 1 + Aligned at: 0\" + Indent monitoring the risk. at: 0.25\" All the control measures are the ultimate responsibility of Formatted: Font: Bold the manager. Whilst he or she may delegate their performance to other officers, the manager remains 23 accountable for their effective implementation. • Consider synergies with other control programmes To save time and take advantage of natural synergies the manager’s inspections must be co-ordinated or synchronised with other checks such as internal or external audit. These inspections must also be planned in such a way that several risks are addressed at the same time. • Implementing the management control measures Each control measure must be allocated a time and place for implementation. Once undertaken the findings must be noted down in the folder. Where significant developments arise from a management control intervention the folder must be cross referenced with the relevant case file that may be opened to deal with such finding. The interventions that a manager can make as part of his of her management control programme vary from situation to situation and may include walkabouts, inspections, interviewed, review of reports, audits, etc. The following are some of the interventions: Physical inspection of work done or work in progress ;

Checks on sampled documents already processed; Checks on sampled documents processed by officers who are either inexperienced or suspected of being corrupt; Physical inspection of backlogs and/or face to face discussion with officers to identify performance problems; Turning up unannounced at places where the work is being done such as at a bonded warehouse being inspected particularly: • where the manager considers that the officer is not to be trusted to carry out his/her work properly; • where there are complex liability problems; • where the client has a poor compliance record; • for the purpose of routine staff development; etc Accompanying officers on inspections in order to: • Confirm the officers proficiency; • Provide guidance in high risk or complex inspections; • Provide support where, for example, the audit or inspection involves a difficult client; • Identify training or staff development needs; • Improve the officer’s confidence of motivation; etc 24

‘Return visits’ to walk through inspections already undertaken: • to deter or detect irregularities; • to independently assess the quality of an officer’s work against an earlier examination or visit; • where the manager is concerned about the officer’s technical abilities or integrity; • where the manager suspects that the officer has not completed all of the work to required standards; • where the work was particularly complicated; etc ii) Management Control at National Level Management control profiles must be reviewed annually and updated if necessary. • The role of the local manager is to: o Assess the performance of staff and assist them to develop; o Detect and investigate any significant departures from the norm and to develop and implement remedial action; o Ensure that officers are equipped for optimal performance; o Ensure that premises and equipment is in a state of good repair; 25

o undertake regular inspections to ensure that everything in order and to keep a record of such inspections for review during nationally organised office inspections; o Ensure that resources and officers are deployed in line with the overall objectives of the Customs administrations. • Centrally Organised Inspection o The role of national office inspections is to: - critically examine the continuing need for all the functions being performed; - review the various elements of work being carried out and assess the abilities, training, safety and job satisfaction of the staff; - ensure that officers grades are correctly aligned with the level of complexity of their responsibilities; - examine the efficiency, effectiveness and necessity of operational controls and to ensure that there is a balance between such controls and trade facilitation - assess the effectiveness of the communication between the field office and Head office and other divisions; - ensure that line managers are applying effectives management methods; - ensure that officer have the energy, ability and positive attitude required for optimum performance; 26

o Inspection Methods It should not be necessary to examine every book, account or other record of work unless major irregularities in working are suspected or a significant flaw is found. Test checks, discussion with staff, visits to traders, observation of the work performed by staff generally should normally be sufficient to establish a balanced judgement on the efficiency and effectiveness of the work is being performed. The following is a non-exhaustive list things to be checked or inspected during the course of all Headquarters inspections: - Post inspection meeting with the manager The inspection should conclude with a meeting between Station manager and the entire inspection team. To assist the manager to prepare for the meeting the inspection team must furnish him of her with agenda, which must include all significant matters found during inspection, showing the reason for discussion. After discussion of each item the outcome should be shown on agenda as an annotation agreed between the inspection team leader and the Station. The meeting agenda should form part of the inspection report. - The Inspection Report The prime purpose of an inspection report is to bring to attention all matters of urgency, importance and interest found on the inspection. Accordingly it is essential that the report is issued promptly after inspection. The report should include a description of the team's findings on the matters of discipline, efficiency of the work, staff attitudes, trends, trade developments, the nature and accuracy of the checks made with regard to cash and seized and detained goods. Trivialities must be avoided and all matters raised in the report must have been raised at the appropriate level during the 27

course of the inspection. Where appropriate the views of the Officer In charge of the station should be given. In the final paragraph of the report a certificate is to be given stating in the opinion of the inspecting officers whether the inspection shows that the general control of the work and its supervision is satisfactory or otherwise. The report should also highlight any significant matters found. The report must end with observations, suggestions and recommendations by the Inspection team what needs to be done in order to improve or remedy the situation. Then finally the report must have a conclusion. 28

Annex I to Chapter 1 Non –exhaustive check list for Headquarters inspections: Cash and other Is the cash and valuables secure and are all banking and valuables accounting procedures strictly followed? Cheque Are cheque registers being maintained and it there a registers working effective system of ensuring that all cheques received are promptly entered into the register? Strong rooms, safes and cash - Are these in good working order and are hand-over take- boxes over procedures strictly followed in respect of keys, safe combinations and the secured valuables? Procedure for Are safes and strong rooms opened by at least two officers? dealing with loss of keys Is there a clear procedure for dealing with lost keys and do all the officers aware of the procedures Procedure for dealing with Is there a clear procedure for safeguarding Customs stamps loss of and dealing with lost stamps? Customs stamps Is there a stamp register and are all stamps on hand? Customs Stamp Are the facilities and work areas safe and are safety register precautions and emergency procedures first aid, fire, etc. widely known? Safety Is there enough office space and is the working space Office conducive to work, e.g. lighting, ventilation, toilet facilities, accommodation outside office and the general conditions? and work environment Are vehicles, office equipment, office furniture, generators, etc available and in good working order? Tools and Do officers have access to books of reference required for equipment their work such as Procedure Manuals, Tariff Books, HS Explanatory Notes, Valuation Guides, Kyoto Convention, Books of etc reference Is there sufficient stationery to meet the requirements? Stationery Are all goods, seized, detained, abandoned, etc properly Customs 29

warehouses recorded and up to date records kept? Auctions General Are auctions organised according to the procedures? procedures Are all the major procedures being followed according to The Officer the instructions? (See Appendix I for details of what else may be checked) Are the officers in place as per records and are they doing what is reflected on their job descriptions? Is the allocation of work load fairly distributed? Is leave record accurate and properly maintained? What training has the officers received? What is their attitude to work and state of morale?, etc 30

Annex II to Chapter 1 CUSTOMS CONTROL Possible Risks and Suggested Risk Control Measures MANAGEMENT RISK AREA CONTROL MEASURE The MCF file is not in place or being maintained A MCP file is required to be maintained by every level of management within every section Performance may be affected by a lack of clear Management control audits must be performed key performance indicators on a regular basis, with a minimum of once per Direct contact between the quarter client and the assessing and/or examining officers Internal Audit and Auditor-General risk could lead to intimidation assessments must be integrated in the MCP and/or bribery Key performance indicators must be set for each Fraudulent or improper use team before the start of the financial and of official stamps operational year Regulate and limit contact between clients and assessment officers Supervisor to double check the work of officers Managers and supervisors to regularly make risk based, random or unannounced appearance during inspections Where feasible ensure at least two officers undertaken off-site inspections Issuing and collection of stamps to be recorded in register Register to be signed to mark any handover or takeover of stamps All stamps must be safely locked when not in use Manager to regularly inspect stamp register to ensure that it is used properly at all times 31

Compliance with Health Familiarise with the HSR health and safety and Safety Regulations requirements (HSR) Regularly check the working environment to ensure that it conforms with HSR Quarterly maintenance of or checks on the following health and safety equipment (where applicable) must be done: first aid kits, fire extinguishers, respiratory masks, hard hats, goggles, heavy duty gloves, steel capped boots, etc Ensure that all officers or operators of the equipment are trained or qualified to do so Quarterly maintenance checks done and recorded REGISTRATION OF IMPORTERS/EXPORTERS Inconsistent application Risk based periodic or random verification of applications of or unauthorised Each application to be supported by a checklist to deviation from the ensure that the complete step by step process is followed approved criteria All supporting documents be kept on file Risk based periodic or random verification of the resulting in registration or veracity on information contained in supporting documents such as by: accreditation of Ensuring that all supporting documents are properly verified as true copies undeserving applicants 32 Supporting documents not called for or retained Applications and supporting documents submitted may be incomplete resulting in an inability to trace companies / persons

Deregistered clients may Verifying the validity of addresses, telephone apply for registration numbers, Income Tax numbers, etc under a different name Target first time registrants intending to import Insufficient, high risk goods for verification of details such as: unacceptable, improper or no security tendered to Verifying Directors/Owners from Registrar of support applications Companies Improper or unauthorised Involve the debt collections to establish if the use of a client’s PIN/TIN applicant has outstanding debt by unscrupulous persons Risk based periodic or random pre-registration verification of the bona fides of the applicant Centralise registration and cancellation of bonds and other securities Ensure that all bonds are properly signed by persons specifically authorised to do so by a valid resolution of the board of directors of the company concerned Verification and validation of adequacy of securities and the credentials the respective underwriters Proper and secure record of all securities to enable risk based periodic or random verification of validity and adequacy Development and implementation of mechanism for ensuring that all cancellations are properly made and communicated to all concerned Undertake a quarterly reconciliation between the actual bonds held and what is reflected on the bond register The validity of bonds must be periodically verified with the various banks or insurance companies bi-annually The designated officer must submit to Head Office a signed certificate attesting to the validity of all bonds held in his or her office Verify digital signatures for electronic entries received electronically Verification of PIN/TIN used by clients during 33

routine inspections IMPORTS - GENERAL Permits not submitted in Include restricted goods in the risk profiles respect of restricted goods Ensure that a system is in place for manifest to flag uncleared goods Un-cleared goods may be Regular inspections or checks with freight sheds delivered without due to determine existence of uncleared goods clearance Place detentions on high risk overstayed OR shipments to prevent unauthorised release Detained / seized / Inspect Customs Warehouse registers and related abandoned / un-declared processes to ensure that the procedures are being goods misplaced, pilfered followed or inappropriately released Prepare a list of unpaid entries and make daily follow-ups Release may be obtained without the relevant Risk based periodic or random verification of payment of duties entries by assessing officers Risk based periodic or random verification of Incorrect or inaccurate entries through post clearance audits declarations Regular review of the effectiveness of risk trap rules or profiles Insufficient segregation of duties exists between As a rule the following functions must be checking of entries and segregated as follows: releasing of cargo Entry checking, stopping – Officer 1 Examinations, reporting – Officer 2 Release - Officer 3 34

Stops not properly made Stops must be given sequential control numbers or effectively executed and the following details recorded in the stop note register Number and date of stop Name and signature of allocated Inspector Results of inspection Name and signature of releasing Officer Copy of the release notice Undertake a regular review of the stop register to ensure that segregation of duties is implemented and to follow-up on all outstanding stops Risk based periodic or random checks on the stop register to ensure that process is followed and that copies of release notices are on hand Unauthorised use of All system overrides must be approved by the Manager or other designated proper officer and system override fully explained. The respective explanations or approvals must be filed for audit purposes facility/function All overrides must be forwarded to the designated senior officer regularly for monitoring Insufficient or ineffective Risk trap rules to be regularly reviewed to physical examination of maximise effectiveness stopped consignments Maintain a register of suspicious activity reports submitted to Risk management unit Maintain a record of shipments in respect of which documents are called and the results of desk audits Participate in some inspections to transfer skill Samples being Maintain sample registers mismanaged Regularly compare registers with samples on hand Returned samples must be signed for by the importer MANIFEST AND CARGO CONTROL (IMPORTS) 35

Insufficient control of Ensure that all manifests are timely received and cargo due to incomplete promptly recorded in appropriate registers or inaccurate details of landed air and sea freight Ensure that registers are promptly acquitted as soon as consignments are cleared Manifests acquitted with false or incorrect bill of Regular monitoring of registers to identify entry numbers consignments that remain uncleared or unaccounted for Duty free goods for use as stores for foreign going Risk based periodic or random comparison of vessels and aircraft office records and freight shed records to ensure diverted into local that goods are delivered to the appropriate freight consumption sheds Late submissions of acquittals to be investigated and penalties imposed on irregular of the late acquittals Maintain an auditable record of acquitted manifests Undertake risk based periodic or random verification of the authenticity of quoted bills of entry numbers The acquittal documentation, particularly the release authorisation, must be retained for audit purposes Create a mechanism for registering arrivals and departures and a roster for monitoring, inspection or sealing of vessels and aircraft Harbour or airport patrols by Customs to detect if goods have not been sealed or applied seals have been removed. 36

Goods removed from the Ensure that removal documentation is Customs control area to a accompanied by a complete list of the relevant transit shed / terminal or consignment note numbers other depot outside the harbour or airport may Each depot to have a record of consignments not be correctly or fully forwarded to it on which all acquittals will be accounted for recorded Insufficient control of An audit trail from the aircraft manifest, transit cargo due to incomplete shed records and transfer to the de-grouping agent or inaccurate details of must be maintained landed road freight Risk based periodic or random inspection of Customs may not be containers manifested as empty to confirm that notified of all trains they are in fact empty arriving or departing trains Risk based periodic or random verification that all de-grouping consignments are, in fact, delivered to the approved de-grouping Risk based periodic or random verification that all de-grouping consignments are, in fact, properly cleared before release Establish an effective gate pass system which ensures that only carriers of cleared consignments are allowed through; Conduct spot checks to ensure that gate passes are properly issued and stamped conduct random patrols and spot checks inside and outside the control area in order to ensure that all goods entering have been correctly declared and properly cleared Railway authorities must submit copies of all Rail notes to the unit responsible for controlling rail traffic Call for documents on selected entries, thoroughly scrutinise these documents and stop for examination when deemed necessary Outstanding Rail Notes must be promptly followed up Risk based periodic or random inspection of railway sheds to confirm that proper procedures 37

are being followed and proper records kept DEPOSITS The temporary deposit Risk based periodic or random inspection of application forms/receipts temporary deposits application forms/receipts to may not be properly confirm that they are worded correctly completed or reasons for taking the security not Regularly review the temporary deposits register adequately given to ensure accuracy of capturing Deposits may be Review the temporary deposits register on a weekly basis to ensure that deposits s are inaccurately or promptly followed up when due incompletely captured Establish and maintain a complete audit trail of temporary deposits processing into the register Segregate the stages in the temporary deposits processing as follows: Deposits may not be followed up or liquidated The officer accepting the temporary timely deposits cannot be responsible for its liquidation Refunds / liquidations of All liquidations must be authorised by the deposits may not be head of the section where the temporary adequately controlled deposits originated making the process prone Refund cheques must be signed by at least to error or fraud / error two senior officials The client must sign in the cheque register to acknowledge receipt The authorised applications forms must be filed for record purposes Cheques may only be handed out to an agent if he/she produces a letter of mandate as well as 38

identification on a company letter head EXPORTS Incorrect export values, Check export values as strictly as import values: ghost exports etc lead to Develop and maintain an auditable record and success rates of: inaccurate statistics, Entries selected for documentary checks undeserved claims for Cargo stopped by the system and refunds or drawbacks examined and/or diversion of goods Cargo randomly stopped for spot checks into the local market Ineffective controls over Ensure that control measures are in place and manufacturer under bond understood leading to diversion of rebated material or Regularly inspect control records to ensure that unauthorised access to the control are being correctly and effectively export incentives implemented Direct exports declared Institute a risk based export supervision regime and entered at an inland and ensure that it is correctly and effectively office may not be the implemented same goods exported MANIFEST AND CARGO CONTROL (EXPORTS) Not being expeditiously Ensure manifest system is correctly and notified of time, place effectively implemented and particulars of goods about to the exported Regularly undertake risk based reconciliations arrival notification forms with the port departure or loading lists to verify completeness and accuracy of notifications Goods may be taken out Risk based monitoring of physical movement of cargo of the terminal area Regularly undertake risk based reconciliations of without Customs the goods on hand in the freight shed and uncleared goods approval or consent 39

Commercial goods Ensure that the gate pass system is correctly and effectively implemented; cleared for exports may Ensure that the gate pass system creates an audit not actually be exported trail to link issued gate passes to respective trucks as well as the issuing officers while goods may be exported without proper clearance Exported vehicles may Undertake spot checks to ensure that the temporary importation papers (TIP)bear full not be re-imported while details of vehicle, driver including physical addresses foreign registered Regularly check the TIP system to ensure that all vehicles may not be re- TIPs are properly recorded and acquitted and that those that remain outstanding are promptly exported followed up GOODS REMOVED IN BOND (RIB/RIT) Goods removed in bond Ensure that control mechanisms are correctly and such as RIBs and RITs effectively implemented are not acquitted or not acquitted within the Undertaken regular spot printouts prescribed period to define RIB and RIT Undertake regular spot checks to confirm that transporters removing bonded goods are properly licensed and bonded for that purpose Securities or bonds may Undertake regular risk based checks on validity or be missing or inadequate sufficiency of bonds or other securities Insufficient or ineffective Undertake regular spot checks to confirm that inspection of warehouses warehoused goods are promptly received in the warehouse Keep and maintain a tick sheet of all warehouses to track inspections Keep an auditable and complete record of all inspections including results thereof Double check inspection records to confirm accuracy or veracity of inspectors reports Undertake regular spot checks to ensure that follow up actions is expeditiously concluded Warehouses may not be Undertake risk based selection of warehouses to operated or used in check to ensure that: 40

accordance with the The ownership of the warehouses has not conditions of their licence changed; The warehouse has not been altered; That the operator of the warehouse is still the bondholder; The conditions for operating the warehouse are being adhered to, etc. Loss of documents in Bonded warehouse “receipt” and “removal” files respect of bonded goods must be held in a safe with controlled access; such as warehouse files and bills of entry Ensure that a register kept for tracking the movement of the documents is correctly and effectively used REFUNDS AND DRAWBACKS Illegal or inappropriate Ensure that all staff working with refunds are refunds or drawbacks aware of the refund guidelines may be authorised Develop and administer a tick list to ensure that all the processes are strictly followed Maintain an effective system for registering and following up discrepancies Undertake risk based inspections to ensure that the following risks are minimised: Ghost exports or round tripping where the refund is dependant on exportation of the goods; Exported goods are not the same as the goods in respect of which the refund is being applied where refund is dependant on particular goods being exported; Goods exported may not contain the raw material in respect of which the drawback is being applied 41

CUSTOMS WAREHOUSE Loss of control of goods Ensure that the Customs Warehouse system and in a Customs Warehouse registers are correctly and effectively leading to incorrect implemented; delivery/sale of goods, fraud and theft Undertaken regular checks that the registers are accurately and promptly updated Ensure that mechanisms are in place to minimise fraudulent or inadvertent undervaluation of goods to be auctioned Ensure that, where necessary, reserve prices are placed on goods before they are auctioned. Inspect stock taking records to ensure that the stock takes are conducted on time and that an auditable record of the stock kept. Ensure that mechanisms are in place to ensure that third party rights such as freight, port charges etc. are properly secured in terms of the law. Ensure that disposal of goods other than by auction must be properly authorized. Establish mechanisms to double check that prohibited goods are properly disposed of and that restricted goods are not disposed of on auction without the necessary authority. Physical security of the Ensure that access to the Customs Warehouse Customs Warehouse and area is restricted to authorised persons only goods therein may be inadequate Check the record of visitors to ensure that it is meaningfully completed to enable definitive identification of all visitors Regularly inspect the Customs Warehouse key register to ensure that it is used strictly as regulated such as: Only one key per safe, strong room or other lockable area to be issued to one responsible person All changes in the custody of keys should be recorded in the key handover – takeover register 42

Check that duplicate keys, in a sealed container, are kept in the Controller / Station Manager’s safe. 43

CHAPTER 2 EAC CUSTOMS STANDARDS1 S/N Standard Legislative Customs Process or Provision/Authority Area of Operation CLEARANCE AND OTHER CUSTOMS FORMALITIES 01 Designation of Customs areas shall be EACCMA Section 11, Customs offices. appointed by the Council or 12 Commissioner through gazette notices. 02 Extra hours attendance Application for Customs EACCMA Section 8 services outside operating procedure and fees Customs hours shall be EACCMR Regulation made in writing to a proper 5 Regulation officer and Customs shall charge appropriate fee EACCMR 6 according to the services rendered. 03 Correlation of business EAC Customs Borders to EACCMA Section 8 hours at common operate for 24/7 EACCMR Regulation borders 4 04 Joint border controls Wherever possible Customs EACCMA Section 10 THE DECLARANT shall conduct joint Customs controls. (a) Persons entitled to act as declarants 05 Conditions to act as All declarants shall be EACCMA Section 146 licensed as per the declarant provisions of the EACCMR Regulations EACCMA. 149 -152 1 Based on Revised WCO Kyoto Convention Framework 44

(b) Responsibilities of declarants 06 Accuracy of particulars A declarant shall be held EACCMA Sections of declarations responsible for the accuracy 147 & 148 of the declaration made to Customs. (c) Rights of declarant 07 Inspection of goods Customs may allow EACCMA Section 136 and drawing of inspection and /or drawing samples of samples. THE GOODS DECLARATION 08 Format of declaration EAC goods declaration EACCMR Regulations form as prescribed by 39, 201 international standards. 09 Data requirements on Declarants shall make EACCMA Section complete declarations to 34(2) goods declaration Customs. EACCMR Regulation 197 10 Provisional or Customs may allow EACCMA Sections incomplete goods provisional or incomplete 37, 38 declaration declarations. 11 Tariff treatment of The tariff accorded to EACCMA Sections or provisional declarations 37, 38 & 120 provisional goods should be the same as that incomplete accorded to complete declaration declarations. 12 Necessary supporting Only necessary supporting EACCMA Sections documents (SDs) documents should be 34, 73 & 234 submitted to Customs. EACCMR Regulations 187, 194 197(3) 13 Time for production of In case of provisional or EACCMR Regulation supporting documents incomplete declarations 49 supporting documents shall be produced within 48 hours of delivery of goods. 14 Translation of Supporting documents for EACCMA Section 234 supporting documents the clearance of goods should be in English language. 45

15 Time within which a Lodgement should be done EACCMA Section 34 Declaration is lodged to within 21 days. Customs. Examination of goods 16 Inspection of goods Cargo Inspections with EACCMA Section 10 with other authorities. other authorities should be coordinated. 17 Presence of declarant The declarant shall be EACCMA Section 41 during examination of present during cargo goods. inspections. Release of goods 18 Release of goods Goods to be released EACCMA Section 37 immediately after examination provided that the set conditions have been met. 19 Release of goods that Goods that are subject to EACCMA Sections 37 are subject to laboratory laboratory or other analyses - 38 or other analyses. may be released provided an appropriate security has been furnished or goods are not subject to prohibitions and restrictions. 20 Release of seized goods Where an offence has been EACCMA Section 229 before the case has been detected, Customs may (6) disposed of. release the goods provided that the declarant guarantees to pay any additional duties and taxes or furnishes security and goods are not liable to confiscation or Forfeiture or needed as exhibit in court. 46

DUTIES AND TAXES Deferred payment of duties and taxes 21 Refund of duties and Duties and taxes paid in error EACCMA Section taxes paid in error. shall be refunded within 12 144 months. EACCMR Regulation 148 22 Repayment of duties Duties and taxes paid on EACCMA Section and taxes paid on defective or wrong goods shall 143 & 144 defective or wrong be refunded within 12 months. EACCMR Regulation goods. 148 SECURITY 23 Determination of Customs shall determine the EACCMA Sections security. amount of security. 106 - 107 24 Discharge of Security. Security shall be discharged EACCMA Section without undue delay. 107 EACCMR 148 CUSTOMS CONTROL Customs shall use risk Article 39 of the 25 Customs Control management in Customs Protocol on the control measures. establishment of EAC Customs Union. Customs shall use Audit-based EACCMA Section controls 236 26 Customs to Customs Customs Administrations shall EACCMA Section 10 Cooperation enter into mutual cooperation agreements. 27 Customs to business Customs shall cooperate with Article 127 &128 of cooperation. the business community in the Treaty on enforcing Customs controls. establishment of EAC 28 IT and E-commerce Customs shall use IT and e- EACCMA Section commerce 187 - 192 29 Traders commercial Customs shall evaluate traders’ EACCMA Section systems commercial systems. 236 47

APPLICATION OF INFORMATION TECHNOLOGY 30 Use of ICT in Customs shall use ICT systems EACCMA Sections Customs operations to support Customs operations. 187 - 192 RELATIONSHIP BETWEEN THE CUSTOMS AND THIRD PARTIES 31 Customs and third Customs shall set conditions EACCMA Sections for dealing with third parties in 145 -148 party relationship regard to Customs transactions EACCMR Regulation and any irregularities. 149-152 INFORMATION, DECISIONS AND RULINGS SUPPLIED BY CUSTOMS Information of general application 32 Provision of Customs shall readily provide Article 6 of the EAC information Customs on relevant Information to the Customs Union public. Protocol Information of a specific nature 33 Customs rulings Customs shall communicate EACCMA Section decisions and rulings in writing 229 within a specified period. APPEALS IN CUSTOMS MATTERS 34 Rights to appeal Persons not satisfied with EACCMA Sections Customs decisions have a right 229 - 231 to appeal. 35 Grounds of appeal Appeals shall be made in EACCMA Section writing clearly stating grounds 229 of appeal. 36 Submission of Customs shall allow the EACCMA Sections evidence appellant sufficient time for 229 - 230 submission of evidence. 48

CHAPTER 3 CUSTOMS CONTROL OF IMPORTED GOODS 1. The purpose of Customs Control (1) The purpose of Customs control of imported goods is to ensure that:- - the revenue due on imported goods is charged and collected; - prohibited goods are not imported; - allowed goods are imported in accordance with all the conditions governing their importation; and - goods whose duty free importation is conditional upon the status of the importer and/or their end use are imported and used in accordance with such conditions. (2) Where any goods are subject to Customs control:- - any proper officer may at any time examine such goods; and - no person may interfere in any way with such goods except in a manner authorized or prescribed under the Act. 2. Goods that are subject to Customs Control The following goods are subject to Customs control: EACCMA s. 16 - All imported goods, including those imported by post, from the time of importation until they are cleared for home use or exported; - All goods on which drawback of duty is being claimed, from the time of claim until the exportation; - All goods subject to export duty or subject to restriction on exportation from the time when the goods are brought to a port or place for exportation until exportation; 49

- All goods which are, with the permission of the proper officer stored in a Customs area pending exportation; - All goods on board an aircraft or vessel whilst within a port or place in a Partner State; - All dutiable goods and excisable goods on which duty has not been paid; - All seized goods, goods under Customs control and/or goods directed by the proper officer to be kept in any place. Customs control is suspended in respect of dutiable goods imported duty free by reason of their end use or the importer’s duty free privileges. However, such goods revert back to Customs Control upon their change of ownership and/or change of their end use. 3. Elements of Customs control To facilitate Customs control the East African Customs Management Act prescribes that: - Goods shall only be imported via authorized ports or places of entry - The person in charge of the means of transport must report to Customs the arrival of the means of transport under their control and the goods carried on board; - The person in charge of the means of transport must answer all questions fully, provide all information and generally co-operate with Customs; - The imported goods on board may not be EACCMA s. offloaded before entry is passed unless the proper 33 officer authorises otherwise. 4. Unloading of imported goods Whilst unloading can take place at all times, unless EACCMA s. otherwise authorised by the proper officer, goods aboard 33 a means of transport arriving from a foreign port shall not be unloaded there from: - until they have been duly entered; 50