FINAL DRAFT PROCEDURE MANUAL - KAMPALA

of the goods and/or the circumstances. The following are categories of goods in respect of which this procedure may be applied: - Large consignments such as large machinery, household effects, etc. - Consignments requiring special or expert handling such as radioactive materials. - Consignments that are specially packed as to make it impossible to examine them at the Transit shed. - Perishable goods. As the goods would still be under Customs control, the applicant must, before the goods are removed, furnish sufficient security (except for household effects) and sign a ‘Letter of Undertaking’ to the effect that the goods will not be dealt with contrary to the conditions attached to their release as stated in the Letter of Undertaking. The following guidelines should be applied when considering applications for release of consignments for examination at importer’s premises: - Applications should be authorised in exceptional circumstances only. - The importer’s premises must be within a reasonable distance from the Customs office. - Sufficient security in the form of a deposit must be secured. - Goods in containers must be sealed and the seal numbers declared on the Customs entry or letter of undertaking. - The letter of undertaking must be correctly completed and distributed as follows: o Original to the importer o Duplicate to the Agent o Triplicate attached to Stop 201

Note; and o Quadruplicate to be placed on office file - Where an examination is triggered by a suspicion that the consignment may include smuggled goods, the removal must either be denied or undertaken under Customs escort. - Where a duty underpayment is established after the examination, the goods must be placed under a lien EACCMA unless the deposit paid or security rendered is sufficient s.130 (2) to cover such underpayment. - Where illicit or smuggled goods are detected, such goods must be seized and offence procedures appropriate to the circumstances instituted in the normal way. - Special attendance at the prescribed rate must be paid. An importer who opens the container prior to the arrival of the officers EACCMA tasked to undertake the examination or who otherwise fails to comply s.16(4) with the conditions stipulated in the letter of undertaking will be guilty of a serious offence. 13. Extraction of Samples for Customs Purposes Samples are small quantities of goods which are representative of the EACCMA goods being imported. They may be extracted by and for the following s. 37(3) & purposes: 241 - By Customs to facilitate the involvement of other experts in the determination of the nature of goods for purposes of their correct classification, application of Customs and other controls and/or their positive identification at some future time; or - By the importer to facilitate Customs clearance or confirmation EACCMA that the goods are in good shape or are supplied according to s. 51(1)(b) order. An importer may be allowed to take small samples from consignments EACCMA without payment of duty thereon. s. 136 All precautions and procedures outlined in paragraph below must be strictly adhered to when handling samples, particularly chemicals and 202

other unknown substances. Samples may be extracted for Customs purposes without payment. Such samples shall be dealt with and accounted for in such a manner as the Commissioner may direct and must be handled as follows: - Samples must only be extracted where this is absolutely necessary and should be avoided where the sample would be bulky, fragile or expensive. In such cases, or whenever in doubt, descriptive literature must be extracted from the consignment or requested in lieu of the sample. - Where samples are submitted for expert opinion or analysis, particulars such as name of manufacturer or importer, price and other commercially sensitive particulars must not be divulged. - All samples must be extracted under Customs supervision and should be truly representative of the shipment. Thus, liquids should be stirred or shaken, powders or other dry substances taken from the centre of the package, etc. - Care should be taken to ensure that substances intended for analysis are not subjected or exposed to excessive heat or any other extreme conditions and/or any kind of manipulation that may change their chemical composition or true nature. - Samples of chemicals must be handled with extreme care and in accordance with the guidelines on the handling of dangerous goods and whenever in doubt seek expert advice. As a general rule, samples of chemicals should not be packed in tins or metal containers. Such containers may react with the chemical possibly interfering with its chemical composition. - The containers used to store these samples, preferably glass, must be clean and dry. Where available and required, descriptive literature should be submitted with all samples extracted. (1) Specific Guidelines on Quantities of Samples to be Extracted Samples must be extracted in quantities only sufficient for the required EACCMA purposes according to the following guidelines: s. 157(2)(g) 203

Samples removed from Customs controlled area must be covered by a receipt stamped and signed by the proper officer which acts as a gate pass indicating that the goods are being properly and officially removed. The accounting and handling of samples is regulated as follows: - Where it is unnecessary to retain them, extracted samples must EACCMA be handed back to the importer after the finalisation of the s. 241 technical analysis and/or Customs clearance process. - Where the sample is returned the importer must sign an acknowledgement of receipt of the sample. - All samples (except small samples of negligible value which are attached to the Stop Note (refer to Risk Management annex), for example, snippets of textile material, plastic sheeting and paper or small items such as bolts, capacitors and screws, etc) must be entered in a samples register with the following particulars: o Full description of the sample o Serial number other Identifying marks and numbers o Name of importer or Agent o Bill of entry number o Disposal instructions The following precautions and procedures must be strictly followed when dealing with dangerous and highly poisonous chemicals: - These samples may not be extracted at any time, except if the classification of goods is not possible without analysis. - The approval of the designated senior officer is required before their extraction and submission for analysis. - These samples must be carefully packed and in addition to the normal particulars, clearly marked “DANGEROUS” in red. Samples removed from Customs controlled area must be covered by a receipt stamped and signed by the proper officer which acts as a gate 204

pass indicating that the goods are being properly and officially removed. Type of goods Minimum quantities and other guidelines Wines and potable 700 ml spirits Liquids 50 ml and a maximum of 250 ml Waxes 800 g Other chemicals not in 30 g liquid form Textile fabrics Textile samples must be cut across the whole width of the material in order to get a representative material. Where analysis is required the sample must be at least 2 m2. For all other purposed extract a 10 cm2 for with a snippet of 15 cm2 attached to the Stop Note Textile yarn 350 m Paper Care must be taken to ensure that the wrappings are removed and that samples are extracted from the actual contents All paper samples must be kept flat and packed between two layers of cardboard or other support. They must therefore be free from wrinkles or folds In respect of paper in rolls, samples should drawn from inner layers as the outer layers are often damaged. For samples of paper in sheets, extract several sheets of 25 cm2 from 205

Cheese the centre of the package one of which must be attached to the Stop Leather Note. 255 g Samples must be packed in such a way that no fat is lost by absorption or by melting. For example, cheese should be packed in foil or a glass jar with lid liners made of non-absorbent material. 15 x 7 cm2 14. Procedure for handling hazardous goods Consignments often contain dangerous goods either as explicitly indicated on the packaging or deliberately or inadvertently concealed in harmless cargo. It is important, therefore, to first discuss the safety precautions that officers must take when examining cargo, particularly the following: - Chemicals; all chemicals can be poisonous. - A chemical becomes poisonous when too much enters the body. - Some chemicals are slightly poisonous, which means substantial amounts are required to cause harm. - On the other hand, others are strongly poisonous, which means only a little is required to cause severe harm. - Chemicals can enter the body through breathing and skin contact. This can happen accidentally during eating, drinking, smoking and touching, etc. - Chemicals can be corrosive, toxic, harmful, flammable or explosive and each category is so labeled and must be handled as follows: 206

Hazardous Signs “Harmful” Avoid contact with human body - substance can cause injury to health “Very Toxic” Avoid contact with human body - substance can cause severe or lethal damage to health “Corrosive” Avoid contact with human body. Do not inhale vapours - substance will attack or eat away skin, metals etc “Oxidizing” Avoid contact with flammable substances - substance promotes fires once the fire is started “Highly Keep away from flames, sparks, and sources of heat Flammable” “Explosive” Avoid impact, knocks, friction, sparks, fires and heat Safety Rules The following are the basic safety rules to be strictly observed at all times: Rule 1 Treat every chemical as though it were hazardous Rule 2 Do not smoke, eat or drink when handling chemicals 207

Rule 3 After handling chemicals wash hands before eating, drinking or smoking Rule 4 Rule 5 Do not sniff chemicals Rule 6 Rule 7 Do not taste chemicals Rule 8 Rule 9 Keep chemicals away from sources of heat e.g. lighted Rule 10 match, lighters, burning stove. First Aid Measures Handle chemicals at an open or well ventilated place First Aid Handle chemicals with care during transportation. Rough Burns and scalds handling may cause spillage Accidental ingestion When spilled with chemicals, take off contaminated clothes and wash affected body with plenty of water. Store chemicals in a separate room that is well ventilated, cool and dry. When accidents or suspected poisoning takes place the following first Aid measures should be taken as a matter of urgency: Affected area should be cooled as quickly as possible with cold water until pain subsides. Do not induce vomiting. Obtain medical advice immediately 208

Skin contact with Remove all clothes immediately. Wash off chemical chemicals quickly and thoroughly with water. Obtain medical advice if necessary. Eye contact with chemicals Open eyes and wash with water for minimum of 10 minutes. Obtain medical advice. Exposed to Remove affected person at once to fresh air. Obtain medical chemical fumes assistance. or vapour 209

CHAPTER 8 BONDED WAREHOUSE 1. Types of Goods that may be Admitted into a Bonded Warehouse 1. Bonded warehouses are intended for the storage of dutiable goods on EACCMA which such duty has not yet been paid. Thus duty free goods may not be s. 47 admitted into a warehouse. 2. Further, due to general safety considerations and the need to achieve EACCMR maximum protection for the revenue at stake in respect of warehoused 64 goods, certain categories of goods such as corrosive substances, explosives, easily flammable goods, perishables, etc including any other goods that the Commissioner may determine and publish in the gazette shall not be warehoused. (1) Provision of Separate Compartment 3. Where it is considered necessary, such as where it is intended to warehouse high duty items such as spirituous liquors and tobacco, the EACCMA Commissioner may require that a specially secured compartment or part s. 62(6) of the warehouse be designated or constructed for the storage of such EACCMA goods. s. 65(1) 4. Where such a facility is not provided for the type of goods for which it is required may be excluded from the warehouse until the acceptable structural alterations are made. (2) Licensing Procedure and Requirements 5. The following steps must be followed when applying for a new bonded EACCMA warehouse license or renewing an existing one: s. 62 EACCMR 74 & 75 - Application for approval and licensing of any premises, rooms or enclosed areas, etc to be designated as the bonded warehouse must be submitted on Form C.18. 210

- Application may also be made in respect of renewal of existing license. - The application form must be accompanied by a plan of the proposed building, the site plan giving its situation in relation to other buildings and thoroughfares. - The annual license fee for a bonded warehouse shall be USD1,500 per calendar year or an amount calculated on a pro rata basis in respect of licenses issued during course of a calendar year. (3) Inspection Before Approval of License Before a license is issued, the premises must be inspected for suitability for use as a warehouse. Officers undertaking these inspections must ensure that the conditions outlined above are strictly observed. Bearing in mind that the objective of these standards is the security of the goods in the warehouse, officers need to use their judgement to identify features that might compromise such safety. Questions such as the following should help officers make objective assessments of the suitability of the premises: - Is the building in close proximity to other buildings that may pose any kind of danger to the warehouse? - Is it generally safe, secure, waterproof and rat-proof? - Is the ventilation adequate? - Are the windows burglar barred? - Is it fitted with strong doors capable of being secured by Customs locks in addition to the licensee's locks? - How many entrances allow access into the building? (If there are many only one must be locked and unlocked from outside and the rest fastened from inside). - Is there security features such as surveillance CCTV. Alarms, electric fence, etc 211

(4) Physical Condition of Buildings Licensed as Bonded Warehouses Once licensed, bonded warehouses become public facilities available to all persons who need safe storage for their uncustomed goods. Thus for the protection of the general public as well as the unpaid revenue, the minimum facilities and construction standards outlined below, must be satisfied before the license is issued. The premises must: - Be equipped with at least one computer capable of connecting to the Customs computer system. - Have a parking yard or storage area which shall be tarmac or concrete finishing or made of some other rigid paving. - Have adequate parking space commensurate with the operations of the premises as the Commissioner may deem fit. - Be well secured with a perimeter fence and adequate lighting system. - Be equipped with a fire fighting system. - Any activities that may endanger the goods in the warehouse, such as smoking in the warehouse, should be absolutely prohibited. Structural Alterations Once the building has been licensed as a bonded warehouse no structural EACCM alterations thereto may be permitted without obtaining permission of the A s.62 Commissioner. Any unauthorised alteration is an offence liable to a fine EACCM not exceeding USD 1000. R 77 When authorised alterations are being approved, care should be taken to ensure that premises are for use as a bonded warehouse. (5) Executing a Bond Security The warehousing bond is the security given in CB Form to secure the duty on goods to be warehoused and to ensure compliance with all the provisions of the Act, and Regulations as may be assessed by the Commissioner. 212

(6) Markings on Bonded Warehouses EACCM R 79(1-2) Bonded warehouses must be distinguished by the words “Customs Bonded Warehouse” and the number allocated to the warehouse prominently displayed in places approved by the proper officer. Note: These distinguishing markings must be removed as soon as the bonded warehouse ceases to be licensed as such. Removal of these markings is one of the conditions for releasing the warehousing bond. Where the premises, room or enclosed area licensed as a bonded warehoused is owned by a company registered under the company law of the partner state, shall inform the Commissioner about any change in its directors. (7) Identity of Licensee and Licence fees A bonded warehouse licence may not be transferred from one building to another or from one warehouse keeper to another. Thus where the identity of the operator or the licensee of the warehouse changes, a new application for another licence is necessary. This fresh application will be subject to an application fee of USD1500 regardless of whether or not the previous license was still valid. (8) Death or Bankruptcy of Licensee or Surety The licensee must notify the Commissioner of the death, bankruptcy or EACCM any other change in circumstances which renders the surety incapable of R 78 honouring his or her obligations under the bond. Likewise, the surety is obliged to notify the Commissioner if it is the licensee who is so incapacitated. Bond officers must look out for these and any other changes that might compromise revenue in respect of warehoused goods and notify the Commissioner for immediate action. (9) Duties of Licensees of Bonded Warehouses EACCM A s.64 Every warehouse licensee must: - Provide such office accommodation, tools and other facilities 213

required by officers to exercise control over the goods. - Keep a record of all goods warehoused and make it available for examination by the proper officer. - Properly stack and label the goods to facilitate access to and easy examination of all packages at all times. - Provide all necessary labour required by officer to exercise control over the goods. - Ensure that duty is paid on all goods removed from the warehouse unless the goods are otherwise accounted for to the satisfaction of the proper officer. Officers Managing warehouses must ensure that warehouse keepers EACCM adhere to these obligations. Failure to observe any of these obligations is A s. 64(3) an offence liable to a fine not exceeding USD1, 000.00. The Commissioner may also order that no further goods be warehoused EACCM till the warehouse keeper rectifies any anomalies and fully complies with A s. 64(2) his obligations. Serious and/or consistent failure to do so may lead to revocation of the license by the Commissioner. (10) Revocation of Licenses and Closing Down Bonded Warehouses The Commissioner may revoke the license granted in respect of a bonded EACCM warehouse where: A s. 62(9) - The licensee of the bonded warehouse fails to account to the satisfaction of the Commissioner for any goods found therein. - The licensee proposes not to renew his or her license. - The licensee fails to comply with any other conditions required by the Commissioner. Whilst a bonded warehouse may thus be closed either voluntarily by the EACCMA licensee or upon cancellation of the licence by the Commissioner, the s. 63 effect in either case is the same, namely: (2&3) - The goods in the warehouse must be duty paid within such period EACCMR as the Commissioner may determine, exported or removed to 81 another licensed bonded warehouse. - The Customs locks must be removed from the doors. - The distinguishing marks indicating that the building is a bonded warehouse must be removed. 214

- The bond must then be released if all the above conditions have been satisfied. EACCMR - No Licence fee or part thereof is refundable. 79(2) Where any warehouse keeper proposes not to renew his or her license EACCM then he or she must notify the owners of all goods warehoused therein of A s.63(2) his intention. However, if the Commissioner revokes the license, delivery of notice of this intention to the warehouse keeper is deemed as notice to all the owners of warehoused goods. The Commissioner must give reasons for refusing to grant a license or for EACCMA revoking an existing one. s. 62(9) 2. Entry and Control of Goods prior to receipt into Warehouse Goods are entered for warehousing in the Customs processing system on the form prescribed for that purpose except for the following important differences: The duty is not immediately payable and will remain unpaid as long as the goods are in the bonded warehouse. The movement of the goods from the Customs controlled areas at the place of landing to the bonded warehouse must be tightly controlled to avoid pilferage, substitution or other unauthorised tempering with the goods. This process of control involves the following steps: - Passing of the warehousing entry. - Recording release from the Customs controlled area. - Transfer to the warehouse. - Acknowledge Receipt into the bonded warehouse. - Eventual release after meeting all Customs and related obligations. As a Customs control measure, goods must be covered by an appropriate security sufficient to cover the duties at stake. An entry cannot, therefore, be registered and passed unless such security is given by the importer. 215

(1) Form and Amount of Security Imported goods may only be removed to a properly licensed bonded EACCM warehouse against an acknowledgement by the bonded warehouse R 69 and operator that he or she is willing to accept the goods. Thus operators bond 76 covers the removal of goods from the landing station to the bonded warehouse. Bonds may be given to cover only a specific transaction or a single general bond can be given to cover various transactions Note: The procedure for registering bonds is covered under (see EXECUTION OF BONDS). Bonds are to be securely filed either at the office where the warehousing entries are passed or at some other office such as Head Office. However, each warehousing port of landing as well as each bonded warehouse must have bond registers showing the balance of bonds at any given time. Where bonds are committed or released files in the Customs processing system must be kept up to date. (2) Checking of Entries When checking warehousing entries, officers must keep in mind that a EACCM bonded warehouse is for storage. No manipulation of the goods, such as A s. 65(2) processing, repackaging, etc is allowed without Customs permission. For this reason, warehousing entries must contain information about the goods EACCM that assist warehouse inspectors to check whether or not such tempering R 65 has taken place. The warehousing entry must reflect the description of packaging, marks EACCM and numbers, volumes and weights, etc to facilitate verification by bonded A s.48(4) warehouse inspectors that the goods in the warehouse are the same goods that were entered and that such goods have not been tampered with in any way. Likewise, ex-warehousing entries by which goods are removed from a EACCM bonded warehouse must be checked against the original entries to verify R58 that the goods being cleared are the same goods that were warehoused. One of the ways of verifying this is by checking that the packaging is exactly the same as described on the entry. Further, ex-warehouse entries for part of the goods must be approved only for whole packages and not part of the packages. In other words, if the goods were entered as rolls of fabric the importer can only remove whole 216

number of rolls and not fractions thereof. A register of the following details must be kept at all stations where goods are entered for Warehousing: - Date of Entry - Number of Entry - Importing Ship’s Name/ Truck / Wagon Registration No. - Port of Loading - No. of Packages - Importer’s/Agent’s Name - Bond Security Detail (3) Acceptance of Goods into the Bonded Warehouse In a warehousing transaction, there is the owner/importer of the goods and EACCM licensee of the warehouse who are completely different entities. Checking R 69 officers must not pass warehousing entries unless there is a manual or electronic acknowledgement by the keeper to accept goods into his or her bonded warehouses. In a manual system this acknowledgement should be in the form of the following certificate: “I /We …………………………………………………………………… …………………………………………………………………… …………………………………………………………………… …………………………………………………………………… …………………………………………………………………… …………………………agree to accept the above goods into my/our bonded warehouse No……………………………at ………………….. (Place) ……………………... Signed ……………………… (Authorised Signatory)………………………… Name of warehouse licensee …………………... (Date) ……………………....” 217

This certificate need not be given when the goods to be warehoused are actually owned by the licensee. (4) Discharge of Security – Allocation Register The discharge of security given can only be permitted when a full and EACCMR proper account has been made of all the goods covered by the bond 148(2) security. The verification officer posts an examination account in the Customs processing system certifying that the bond security has been discharged in the proper manner according to the Customs Procedure Code (CPC) to which the bond was applied. (5) Enforcement of Bond Security Where an allocation remains outstanding for more than fourteen days EACCMA from the date when the entry was passed, the importer is to be called upon s.48(4) in writing to pay the taxes due. All goods entered to be warehoused shall be removed to the warehouse EACCM for which they are entered and deposited therein within fourteen days As.37(4); from the date of entry, or within such further period, not exceeding 48(4) twenty-one days, as the Commissioner may allow for bonded warehouses situated away from the port of importation. (6) Examination of goods The rules and procedures set out for the examination of goods for EACCM Customs purposes also apply to goods entered for warehousing. However, A s.34 officers undertaking examination of goods entered for warehousing must and 41 pay particular attention to the following further considerations peculiar to goods for warehousing. a. Procedure for Handling Short Landing When goods are short landed, the carrier, airport or port authority or other person responsible for bringing the goods into the country, must notify Customs of the short landing. Upon receipt of this notification, the proper officer at the landing station must proceed as follows: - Record the short landing details in the Short Landed Register. - Issue a “Goods Short Landed Advice” on Form F.11. Details of the packages short landed must be reflected on this form. 218

- Details of the F.11 are recorded into the Landing Account Book or the equivalent electronic version. - The Forms F.11 are then filed at the Customs Warehouse at the landing station. b. Procedure for Handling False Declarations If, after examination of the goods, it is found that either, the classification, origin and/or value of the goods was incorrectly declared, the normal action such as institution of offence procedures, arranging for the amendment of the entry on payment of the alteration fee, etc must be taken. Additionally, as such false declarations have a bearing on the duty at stake and therefore on the adequacy of the security, the amount of bond security given must be rechecked to ensure its adequacy. Where necessary, a supplementary bond must be requested and the bond registers adjusted accordingly. c. Procedure for Handling Shortages and Breakages Where goods entered for warehousing are found damaged or short due to damage or spillage the examining officer must issue a Shortage and Breakage Form on which he or she certifies that he or she is “Satisfied that the goods found short, did not go into home use”. This certificate is not to be given unless, after due enquiry, the officer doing the examination is satisfied that the shortage is not due to local pilferage or due to the goods actually going into home use. Details of the shortage should then be recorded in the warehousing stock register or entered in the electronic stock management system. This procedure is used only for shortages due to damage to the goods whilst they are still under Customs control. Shortages due to short landing of goods are handled differently as outlined below. 3. Release and dispatch of goods to the Bonded Warehouse After all formalities are concluded at the port of landing, the goods must EACCM 219

be deposited into the respective bonded warehouses within 14 days of A s. 48(4) clearance. Failure by the owner of goods entered for warehousing to deliver the EACCM goods to the respective warehouse is an offence. The proper officer at the A s. 49(2) port of clearance may seize such goods or order that they be delivered to the warehouse into which they were cleared at the expense of the respective warehouse keeper. The warehouse keeper who has incurred the costs of such removal will then be entitled to a lien on the goods in respect of such costs. Persistent offenders or any difficulties in connection with physically removing goods into a bonded warehouse should be reported to the Commissioner. The 14 days limit can be extended to periods not exceeding 45 days where EACCM the goods are bulk cargo destined to warehouses that are far away from A s. 48(4) the landing port. To control or track the physical movement (or lack thereof) of the goods into the bonded warehouse the proper officer at the office of landing must: - Prepare a Cargo Receipt F.10 for each consignment. - Endorse details of the consignment and the date and time of release. - Forward the original and duplicate of the cargo receipt to the remover of the goods to the Officer in Charge of the bonded warehouse concerned File triplicate as a ‘live record’ of the removal of the goods. In cases where the goods are being removed from a Customs warehouse into a bonded warehouse, the cargo receipt must be prepared by the releasing officer in the same way as outlined above. Thereafter, the duplicate bearing evidence of receipt of the goods into the bonded warehouse must be forwarded to the office where the warehousing entry was passed and will be filed together with the warehousing entry. Where goods are not received into the bonded warehouse, the proper officer at the bonded warehouse must inform the warehousing office of the non-receipt of the goods so that such action as may be necessary can be taken to enforce importer or owner’s obligations under the Customs Bond. Cargo receipts need not be prepared for oil, petrol, kerosene, etc., imported in bulk and landed direct ex-ship into the tanks of the bonded oil installations. 220

Cargo receipts are also not to be used in respect of goods entered for warehousing at a place other than the port of importation. Instead only the Landing Account Book, duly endorsed with any examination account is to be dispatched to the proper officer who controls the bonded warehouse into which the goods are destined. This procedure applies to goods entered at border stations for warehousing in bonded warehouse located further inland. Note: Where the manual accounting system outlined above used to monitor the movement of goods from the transit sheds to the bonded warehouse has been replaced by an electronic system, the various documents may no longer be in use. However, officers must understand that the electronic system serves the same purpose, which is to provide a system that triggers alarms when goods are not deposited into the bonded warehouse as intended. (E.g. Stock Management System). 4. Handling of Prohibited and Restricted Goods EACCMA s.18 &19 Under normal circumstances, prohibited goods cannot be imported while restricted goods should not be allowed to proceed beyond the border station or released from Customs control unless the proper officer permits or licences are produced. However, restricted goods may be so released pending subsequent production of the relevant permits or licenses provided the regulating authority has given written permission for such removal in bond. In such cases, the warehousing entries are to be endorsed with the details of the written authority as well as the documents to be produced before the goods are released. Vehicles may off-load goods entered for warehousing at a railway station for onward railing to an inland bonded warehouse, under the supervision by a proper officer 221

Form F.14 NOTIFICATION IN RESPECT OF GOODS ENTERED FOR WAREHOUSING THAT REMAIN UNACCOUNTED FOR Name and address of importer/Agent ………………………………………… Date…………………………………… Dear Sir/Madam, This serves to notify you that the goods listed in the schedule below, which were entered for warehousing, have not been received in the bonded warehouse in question or otherwise satisfactorily accounted for. Accordingly, I now require you, within 14 days of this letter, to either: • Account for these goods; or • Pay the full duties due on them. Please note that failure to render a satisfactory account of these goods or to make payment of the duty thereon is an offence in terms of section 48(2) of the East African Customs Management Act. If I do not hear from you by _________ (date) _______ I shall have no alternative but to take action against you including suspending any further operations against your bond and/or otherwise enforce your obligations under the bond. Yours faithfully, FOR: COMMISSIONER 222

SCHEDULE OF UNACCOUNTED FOR GOODS Entry No. Ship’s Name No. of Description Amount Your Ref. Remarks and Date and B/L No/ unaccounted of goods of Bond Truck/Wagon packages No.. 5. Acceptance of Goods into Bonded Warehouse On Receipt of Goods: After goods have been released for warehousing, they must be EACCMA dispatched directly to and physically received in the respective bonded s. 50 ; warehouse. 48(4) Upon receiving the goods, the proper officer at the bonded warehouse must: - Verify and compare the marks and numbers on the packages and the number of packages with the Cargo Receipt (F.10). - Make an internal examination of damaged packages or packages suspected of having been tempered with in transit from port of importation to the bonded warehouse. - Ensure that the goods are properly stacked, labelled, etc to EACCMR facilitate their identification during inspections. 70(3) - Endorse details of the receipt on the duplicate of the Cargo Receipt and dispatch it to the landing office that processed the warehousing entry; or - Notify the originating office of the non-receipt of the goods after the requisite 14 days period. Note: Any internal examination of packages must be undertaken in the presence of the transporter, the owner of the goods or his Agent. 223

6. Goods deemed to have been warehoused Changing the clearance regime from warehousing to, say, home EACCMA consumption, export, or use as stores for foreign going means of s.50(2) transport, etc without actually being physically taken into the bonded warehouse is allowable. Where this happens, ex-warehouse entries are to be passed in exactly the same way as for goods that are physically in a warehouse. Where goods are deemed to have been warehoused in this way, the respective ex-warehouse entry must be forwarded to the proper officer at the bonded warehouse in lieu of the goods. The officer will then endorse the ex-warehouse entry details in the warehouse register and on the Cargo Receipt to complete the record. 7. Procedure for Warehousing at Ports Other than the Port of Importation Goods removed from the port of importation for warehousing at other ports must be consigned by the importer to the Officer in-charge of Customs at the station of destination. Where goods intended for warehousing at inland stations, the authority for their removal must be given when duty has been secured or the officer-in-charge is satisfied that the consignee will remove the goods directly to the bonded warehouse 8. Certificate of Receipt of Goods into a Bonded Warehouse (Form F.8) This certificate must be compiled in respect of all consignments removed into a particular bonded warehouse for the week. Where a bonded warehouse is busy enough to warrant immediate issuance of the certificate for each consignment, the form can be compiled for shorter periods such as on a daily basis. Part consignments are to be included in the Certificate of Receipt for day or period in which they are received, the word “Part” being noted in the remarks column of the F.8 Packages, including casks or drums of wines and spirits, in which there are any deficiencies must not be included in the Certificate of Receipt until the noted deficiencies have been accounted for to the satisfaction of the proper officer. The Form F.8 must be compiled in time, care being taken to ensure that the correct details of the entry and the bond in force are shown. 224

The details of the F.8 must be endorsed against the corresponding entry in the Landing Account Book or equivalent electronic version. On arrival of the Certificates of Receipt at the Warehousing Section, the proper officer countersigns the relevant column and returns all the forms to the proper officer at the bonded warehouse. Only when the goods are fully accounted for, may the bond amount relative to the particular transaction be replenished. After completion, the Form F.8 below sufficient copies should be distributed so that the information is available to officers responsible to bond acquittals and warehousing of goods. Form F.8 CERTIFICATE OF RECEIPT OF GOODS INTO A BONDED WAREHOUSE Ref: ……………………………… Certificate of receipt of goods into Bonded Warehouse No…………………………………….......... for the week beginning ……..……… (Date) ….….…… and ending …….….…… (Date) …….…… To: The Officer-in-Charge (Warehousing Section) ----------------------------------------------------------------- (Port/Office) The under- mentioned goods have been satisfactorily received: Entry No. of Packages Bond in Force Details Remarks No. & Date and Description of Goods Register Folio Line No. 225

Date Officer In-Charge ………… Bonded Warehouse (For use with Bond Allocation Register) Bond Allocation Register Noted Serial No. Date ……………………………………………………………….... Officer’s Signature …………………………………………………………………. 226

9. Goods Lost, Pillaged or Destroyed Prior to their Release to the Importer The Commissioner may remit the duty on goods lost, pillaged or EACCMA destroyed by accident provided this occurred whilst the goods: s. 141 - Were still on board the means of transport that brought them into the country. - Were being offloaded from such a means of transport or being delivered to the Customs controlled area. - Were still in a Customs controlled area. - Were already physically in a bonded warehouse. - That the goods have not been consumed in a Partner State. Where loss, damage, etc as outlined above is discovered after the duty EACCMA has already been paid, the Commissioner may refund such duty s. 144 provided the application is received within 12 months of the date the duty was paid. a. Claims in Respect of Goods Lost, Pillaged or Destroyed Claims for refund must be submitted on Form C33 EACCMR 147 The rebate of duty for goods damaged, pillaged, etc under EACCMA circumstances outlined above shall be allowed only where the carrier or s. 142 insurer of the goods acknowledges the damage, loss, etc and makes the appropriate allowance for the benefit of the importer. The rebate of duty shall not exceed the amount of duty payable on the proportion of allowance allowed to the importer by the carrier or insurer. Remission or refund of duty in respect of the loss or damage that takes EACCMA place whilst the goods are with the bonded warehouse or discovered s. 52, 58 upon their removal there from may be disallowed and duty called to account where the loss, damage, etc is found to be excessive, wilfully or negligently caused. 227

The Commissioner may authorize refund, rebate or remission of duty EACCMA under any circumstances. s.141-144 Particulars of the refund claim and voucher number must be recorded in the Register and Landing Account Book/Stock Management Module. b. Allowances for Deterioration of Warehoused Goods The proper officer at the bonded warehouse may either on the direction EACCMA of the Commissioner or on the application and at the expense of the s.52 owner: - Re-gauge, re-measure, re-weigh, examine, or take stock of any warehoused goods. - Re-value any warehoused goods liable to ad valorem duty which have deteriorated in quality. The duty on re-valued and/or re-gauged goods will then be re- EACCMA determined on the basis of the assessed quantities and value unless the s. 52 loss or deterioration is considered excessive or wilfully or negligently caused in which case the duty shall be paid according to the original account subject to any reduction the Commissioner may allow. Any claims for rebate of duty on goods liable to specific rates of duty EACCMA which have deteriorated in the bonded warehouse to such an extent that s. 142 the full specific duty would not be collected must be referred to the Commissioner. c. Notification of the Owner when Damage/Loss is Discovered Whenever a damaged package is discovered in a bonded warehouse, the owner must be notified as follows 228

FORMAT OF NOTIFICATION IN RESPECT OF GENERAL GOODS Mr. /Messrs ……………………… Bonded Warehouse No. ……………………. WE No. ………………………..of …………………… (Date) ………………… Ex-W.E. ………………………..of …………………… (Date) ………………… Register No. …………………………Folio No. …………………………………….. Marks and Nos. of Packages:- ----------------------------------------------------------------------------------------------------------------------- ----------- It has come to my attention that the package/packages referred to above is/are damaged. In terms of Section 65 of the East African Customs Management Regulations (2009) you are required to maintain all warehoused goods and the packages in which they are contained in a state of repair. Accordingly, I hereby require to make arrangements to have the then repaired forthwith. ………………………………………………(Officer In-Charge - Bonded Warehouses) FORMAT OF NOTIFICATION IN RESPECT OF LIQUORS AND SPIRITUOUS GOODS “Mr./Messrs ……………………… Bonded Warehouse No. ……………………. WE No. ………………………..of …………………… (Date) ………………… Ex-W.E. ………………………..of …………………… (Date) ………………… Register No. …………………………Folio No. …………………………………….. Marks and Nos. of Packages: ----------------------------------------------------------------------------------- ------- It has come to my attention that some or all of corks in the abovementioned consignment are damaged. In terms of Section 65 of the East African Customs Management Regulations (2009) you are required to maintain all warehoused goods and the packages in which they are contained in a state of good repair. Accordingly, you are advised to take immediate steps to examine the consignment and if necessary make arrangements for the necessary repairs. Please note that no remission of duty in terms of section 52 of the East African Customs Management Act will be allowed on any losses coming about as result of the faulty corks unless you take steps to make any necessary repairs within two days of the date of this letter. ………………………………………………(Officer In-Charge - Bonded Warehouses) 229

10. Treatment of Goods in a Bonded Warehouse (1) Sampling Owners of goods may apply in writing for permission to collect EACCMA s. samples of warehoused goods. The proper officer may allow the 51(1) drawing of reasonable quantities which must be noted in the landing Account Book or equivalent electronic version. Shortages in the warehoused goods that are attributed to samples EACCMA drawn in this way will not affect the duty payable on the s.51 warehoused goods. (2) Alterations, Repacking, etc The proper officer may direct in what parts or divisions of any EACCMA s. bonded warehouse and in what manner any goods shall be 51 deposited therein. Once deposited therein, no alteration in the marks and numbers on the packages, re-packing, skipping, EACCMR70 bulking, sorting, etc may be undertaken except with the permission of the proper officer at the bonded warehouse. Persons wishing to manipulate the goods as outlined above or in any other way envisaged in section 51 of the Act, must apply using Form C.15. Note: This procedure not only applies to goods deposited in a EACCMA s. bonded warehouse, but also those in other Customs areas. 40 (3) Delivery of Part Packages Removal of goods from the warehouse in part consignments should be allowed. However, the goods should normally be removed against an ex-warehousing entry in whole packages and in the same state as at the time of warehousing. Where the owner intends to remove only part of the contents of a EACCMA package, this should be treated as an application for alteration, s.52 repacking, etc in which case the procedure outlined above should be followed. 230

Special procedures apply to articles purchased by departing passengers in approved duty free shops without entry. In this case, the individual items are released without being entered. Duty-free operators are then required to make a consolidated periodic ex- warehouse export entry. 11. Duties of the Officer-in-Charge of Bonded Warehouse The duties of the Officer-in-charge of a bonded warehouse are to ensure that the warehouse is operated in accordance with these rules and to report any infringements to national office responsible for bonded warehouses. These duties can be summarised as follows: - Ensuring that only warehoused goods are deposited in the warehouse. - Ensuring that only properly cleared goods are removed from the warehouse and in terms of any conditions that may be set for their removal. - Ensuring that all manual and electronic records maintained in respect of the warehousing of goods are kept accurately, securely and up-to-date at all times. - Submitting the Certificate of Receipt of goods in a bonded warehouse (F.8); - Notifying the relevant warehousing office of any failure to deposit goods entered for warehousing into the relevant bonded warehouse within the required time. - Ensuring proper stacking of the goods in the warehouse so EACCMA that stocks can be easily and quickly checked. s.64 - Reporting of all damaged, slack packages and leaking casks and drums, etc identified during inspections to facilitate either their repair or regularisation in accordance with the procedures for dealing with damaged goods outlined above. - Ensuring that the licensee of the bonded warehouse fulfils his or her statutory obligations and reporting any negligence thereof to Commissioner for appropriate action to be taken. 231

- Ensuring that the door of the warehouse is properly closed and locked after a day’s business. - Ensuring that the Customs lock or key is kept in good repair and to make an immediate report when it becomes damaged or defective to ensure that it is repaired or replaced forthwith. To facilitate the effective execution of this task, every officer-in-charge of a bonded warehouse should issue written instructions governing the security of warehouse keys. - Making a general inspection of the warehouse at less than monthly periods and bring to report any infringements of the rules including flouting of any safety precautions. Note: This duty must be undertaken personally by the proper officer and not be delegated to a guard or an assistant. Severe disciplinary action will be taken against any officer who neglects this duty and whose bonded warehouse is found to be open after he or she has gone off duty. 12. Transfer of the Ownership of Goods in Government and Bonded EACCMA s. Warehouses 51 Transfer of ownership of warehoused goods may be authorised on EACCMR application. The following procedure must be followed: 71 - The application Form C.16 must be completed, signed by the applicant and submitted to the proper officer at the bonded warehouse. - The actual marks and numbers of the packages transferred must be specified in the application and previous numbers are never to be accepted. - All particulars of the transfer of ownership must be properly completed and signed. - No post-dated applications are to be accepted and any application dated more than seven days prior to presentation must be rejected. 232

- All amendments and alterations to any application must be initialled by both the transferor and the transferee. - When an application for the transfer of ownership is presented, the signature of the transferor must be compared with the specimen signature on Customs records and the officer who checks the signatures must certify on the application “signature correct” adding his initials and the date. - The application is then to be submitted to the Officer in- Charge of bonded warehouses for approval. - Particulars of the goods transferred, name of the transferee, reference number and date of the application are to be noted in the register at the bonded warehouse. Officers must be meticulous in dealing with applications for transfer of ownership. In cases of doubt and difficulty, the Officer in-Charge of the region is to be consulted and the transferor asked to confirm the transfer in person. 13. Warehoused Goods to be Dealt with in accordance with Entry EACCMA s.60 Goods entered for home consumption or sold in accordance with this Act shall be removed from a warehouse within 14 days after such entry or sale as the case may be. If the goods were cleared for export such export must take place within 30 days which the Commissioner can extend to with a further period not exceeding 30 days. Goods not so removed from the warehouse become liable to forfeiture and may be seized and eventually disposed of in any manner the Commissioner directs. 14. Abandonment or Destruction of Warehoused Goods The owner of warehoused goods may apply to abandon such goods EACCMA s. for any reason. If the application for abandonment is approved the 56. goods may be destroyed or otherwise disposed of as the Commissioner may direct and at the expense of the owner. 233

The owner can also apply to destroy warehoused goods which: - Have deteriorated to such an extent that the duty payable on them becomes more than the value of the goods. - Are waste, surplus, etc resulting from activities, such as repacking, repairing, manufacturing, etc properly EACCMA s. authorised in terms of the Act. 51 In the case of abandonment, the Commissioner assumes control of EACCMA s. the goods and decides what to do with them, provided that if he or 56(2)(a) she decides that the goods must be destroyed then such destruction shall be at the expense of the owner. In the case of application for permission to destroy, the EACCMA s. commissioner does not assume control of the goods but merely 56(2)(b) authorises their destruction by the owner subject to payment by the owner of any rent and other charges due on them if they were warehoused in a Government warehouse. (1) Procedure for Processing or Accepting Abandonment The following procedure should be followed: - As abandonment is not automatic, the importer must make EACCMR written application giving reasons why he or she must 143 abandon the goods. - The application may be accompanied by an application for refund or remission of duty in Form C.33 to be considered where the Commissioner authorises abandonment. Approval will be authorised on the following conditions: - The application has merit and it would be inequitable to deny abandonment. - The owner pays all monies due to other persons, on account of the handling, storage, clearance, etc. of the said goods. - The goods remain stored in the Customs Bonded EACCMA s. Warehouse at the expense of the owner until such time as 56 they are finally disposed of in accordance with the Act. 234

When the approval is granted, details thereof will be endorsed on the letter of application and details of the abandonment noted in the warehouse registers and equivalent electronic records. (2) Disposal of Abandoned Goods EACCMA s.56 Abandoned goods with a saleable value are to be removed to the Customs warehouse at the owner’s expense and under Customs supervision. A Landing Account Book or equivalent electronic version and the Cargo Receipt (F.10) is prepared by the proper officer at the bonded warehouse and accepted and checked by the Customs warehouse keeper. At the Customs warehouse, the goods are examined against the Cargo Receipt and compared with particulars contained in the Landing Account Book or equivalent electronic version. If all is well, the Customs warehouse officer will take over the goods and sign on the Cargo Receipt and thereafter the goods will be disposed as directed by the Commissioner. Where the Commissioner authorises destruction, the goods are then to be destroyed by the owner in the presence of officers who are not responsible for controlling the Bonded Warehouse. The proper officer and the witnesses will then sign a Destruction Certificate to be filed with the warehousing record of the goods in question. 15. Delivery of Goods from Bonded Warehouse for Home Use (1) Entry for Home Consumption Bonded goods, other than unaccompanied baggage, may only be EACCMA delivered from the warehouse for home use on payment of duty s.50 against the prescribed Ex-Warehouse Entry for home use. EACCMR 67 Where the goods become entitled for clearance free of taxes such as when they are bought by diplomats, etc. such duty will not be payable provided the exemption code is reflected on the ex- warehouse entry. 235

Goods can also become free of duty as a result of reclassification after an inspection. The officer in charge of bonded warehouses must be informed of any such changes through approved amendments Form F.18 Ex-number or average value declarations to any Ex-Warehouse Home Use Entry are under no circumstances to be accepted. Delivery of any bonded goods from the warehouse for home use is never to be allowed until duty has been paid. (2) Duties of Officer Allowing Delivery from the Bonded Warehouse a. Delivery of Portable Spirits to Armed Forces (Where applicable) Before allowing delivery of bottles of potable spirits to Armed Forces, the warehouse officer must ensure that the principal label of each bottle is indelibly stamped or stencilled by original supplier or exporter with the letters “Armed Forces” as the case may be. The letters should be a minimum height of 12mm. Adhesive labels bearing the letters “Armed Forces” b. Delivery of Portable spirits to Privileged Persons Before allowing delivery of bottles of portable spirits to privileged persons, the warehouse officer must ensure that the principal label of each bottle is indelibly stamped or stencilled by the owner or their Agent in the country of exportation with the words “DUTY FREE SUPPLIES”. Adhesive labels bearing the words “DUTY FREE SUPPLIES” are not acceptable. 16. Removal of Bonded Goods from one Bonded Warehouse to another EACCMA s.54 Goods must be covered by the CB Form and the importer must lodge a sufficient bond in exactly the same manner described above to cover the goods as they transit to the other bonded warehouse. The proper officer at the removing bonded warehouse must prepare a cargo receipt in F.10 to be sent to the proper officer at the receiving bonded warehouse. The details of the removal are recorded in the warehouse registers and the Landing Book Account or equivalent electronic record in exactly the same manner described above. 236

The record of the new removal must be cross referenced with the records at the new warehouse. All details pertaining to the goods including, any conditions attached to the goods at the time of first warehousing such as “Goods for Exportation Only”, any shortages discovered in a prior inspection, any revaluation, etc are fully applicable in the new warehouse and must be passed on to proper officer at that warehouse. No package of bonded goods may be delivered for removal under bond to another bonded warehouse unless the package is intact. 17. Exportation of Goods from Bonded Warehouse Entry Under normal circumstances, goods re-exported from a bonded EACCMA s. warehouse must be entered on the Ex-Warehouse Export Entry. 50 However, goods may be removed from bonded warehouses situated at airports for use as aircraft stores, without passing individual ex-warehouse entry for each removal provided: - The aircraft has a registered mass of not less than 250 tons. EACCMA s. 55 - The goods are delivered to aircraft representatives upon application to remove goods prior to entry. Such representatives issue a receipt for the goods and the goods are recorded in the Aircraft Stores Delivery Register in which the following details are recorded: - Date - Aircraft registration/flight number - Description and quantity of goods - Number and date of entry - Signature of receiver - Officer’s initials Consolidated entries will then be passed by the aircraft Agents on 237

a weekly basis to cover these removals. The consolidation entries must be matched to the entries in the register to ensure that all removals are cleared. If satisfied, the officer confirming the consolidated entries must endorse details of the consolidated entry against each entry in the register and sign the following certificate on the entry: “Checked against receipts in delivery register and certified correct.” (1) Security on Export Entries The duty on all bonded goods entered for re-exportation from EACCMR warehouse must be secured by bond given on the CB Form. 68 Particular or general bonds may be given for this purpose. In high risk cases or where it is suspected that the ex-warehoused EACCMA s. goods may not have been exported, proof of importation in the 78 country of destination may be called for. If the exporter fails to produce a satisfactory certificate from Customs authorities of the country of export, the proper officer may refuse to: - Pass future entries submitted by the same exporter in respect of bonded goods. - Release the bond, approve any refund, drawback, etc (2) Return of Exports EACCMA s.78(3) A weekly return of bonded exportations will be sent from the port or place of export to the Security Bonds Management Unit for bond cancellation purposes. (3) Landing Certificate The production of proof of export by way of landing certificate is EACCMA s. mandatory whenever goods are exported: 78 - By dhow. - By ships calling at unapproved places en route to the declared destination of the goods. 238

- By overland routes. - Through any port A copy of the relevant ex-warehouse re-export entry properly certified by the Customs authority at the port or place of entry into the country of destination may be accepted in lieu of the landing certificate. Certificates of landing or proof of export from the country of destination are not required in respect of goods re-exported to and shipped in full and properly manifested by a ship or aircraft which clears direct for overseas ports. a. Consequences of Failure to Produce Landing Certificate Certificate of shipment on the ex-warehouse export entry and the Landing Certificate, if required, must be produced by the exporter within 30 days or such longer period as may have been allowed. Where this proof of export is not produced, a penalty against the bond equivalent to the duty on the goods is to be called for and paid immediately. Note: Unless the Commissioner so allows, this payment of duty does not absolve the owner from his or her obligations under the bond. (4) Short Shipments and False Declarations If bonded goods are short shipped or not loaded altogether, the exporter is required to notify Customs of this fact within 24 hours (or such further time as the proper officer may allow). Unless immediate export is contemplated, the exporter must forthwith re-enter the goods for warehousing, use as stores, for home use etc. In such an event, the security given to cover the export of ex- warehouse goods must remain in force until the short-shipped goods have been fully and satisfactorily accounted for. Any exporter whose declaration is found not to match the goods that are delivered to a Customs area for loading onto a foreign going means of transport commits an offence. 239

Further, when goods are short loaded or when loaded goods are subsequently offloaded for any reason, the person in charge of the means of transport is also obliged to report this to Customs within 24 hours. The exporter commits an offence if he or she makes a false EACCMA s. declaration in respect of any particulars of bonded goods and/or 78(7) their short loading. The person in charge of a foreign going means of transport onto which bonded goods are loaded for export also commits an offence if he fails to report failure to depart as intended or the offloading of all or part of such goods. (5) Delivery of Bonded Goods in special circumstances Removal of non-duty paid goods from any transit shed or Customs EACCMA s. area without payment of the duty may be authorised provided 39, 53 security is given to cover the return or duty payment of the goods. This security may take the form of the following undertaking: 240

UNDERTAKING TO GIVE SECURITY IN RESPECT OF GOODS REMOVED FROM A CUSTOMS CONTROLLED AREA By this security, the subscriber(s) mentioned hereunder is/are, pursuant to the EAC-EACCMA 2004, bound to the Commissioner of Customs in the sum of _______________ subject only to this condition that if the goods detailed hereunder which are released from bonded warehouse No. _______________ for the stated purpose are returned to the said bonded warehouse within _______ days or are duty paid in accordance with the EAC-EACCMA, 2004 and the Schedules thereto, or are properly re-exported or otherwise accounted for to the satisfaction of the said Commissioner, then this security shall thereby be void but otherwise remain in force. Dated the ……………………. Day of ………………… Description of goods ............................................................................................................................................................ ............................................................................................................................................................ ............................................................................................................................................................ ... Purpose of removal (Assembly, exhibition, inspection, etc) ............................................................................................................................................................ . Names and Designation of Signature of Subscribers Signatures of Witnesses Subscribers 241

Where the licensee of the bonded warehouse is also the owner of the goods being removed, then no additional security will be required as the warehouse bond will cover the goods. 18. Re-warehousing of Bonded Goods Warehoused goods must be removed from the warehouse within EACCMA s. six months of warehousing. Subject to the exceptions listed 57 below, the Commissioner may extend the warehousing time by a further period of warehousing not exceeding three months. In the case of the following goods, however, the Commissioner may approve extensions of periods of warehousing as he or she may deem appropriate: - Wines and spirits in bulk warehoused by licensed manufacturers of wines and spirits. - Goods in duty free shops. - New motor vehicles warehoused by approved motor assemblers and dealers. (1) Application, Examination and Entry of Goods for Re-warehousing a. Re-Warehousing of Goods If the owner of the goods wishes to re-warehouse them, he must submit an application in writing. The goods must be examined to determine that they are the same goods that were removed from the warehouse and as well as their suitability for re-warehousing. All the packages are to be examined internally unless the goods are contained in a large number of packages of equal value, packing, and are of the same description in which case the scale of examination should be according to the following guidelines: Total Number of Packages Number to be examined internally Up to 5 All packages 242

From 6 to 10 6 packages From 11 to 20 7 packages From 21 to 50 8 packages Over 50 9 packages or such number as the proper officer may deem fit Duty and other taxes must be collected on all goods found not to be suitable for re-warehousing. Re-warehousing should not be allowed for goods that become subject of a prohibition during the period of warehousing. The procedure for receipting goods into the warehouse is the same as at original warehousing. However, the records must be cross referenced with the original warehousing transaction to complete the audit trail. The re-warehousing records will feature only the goods that are actually re-warehoused. Thus the deficiencies or disallowed goods must be accounted for on the warehousing transaction to which the re-warehousing relates. Any conditions or instructions that were attached to the original warehousing entry must be passed on the new landing account. 19. Certificate of Destruction F.26 Application for destruction of goods which cannot be sold shall be made to the Commissioner by the officer responsible. When any bonded goods have been satisfactorily destroyed, a Certificate of Destruction is to be given and filed in the Landing Account Book. Where any goods required to be re-warehoused are not so re- EACCMA warehoused, then they shall be sold by public auction after one s.57 month’s notice of such sale has been given by the proper officer by publication in such manner as the Commissioner may deem fit. Provided that any such goods which are of perishable nature EACCMA may be sold by the proper officer without notice, either by s.39&53 public auction or private treaty, at any time after the expiry of the initial warehousing period. 243

When any goods are offered for sale in accordance with the Act EACCMA and cannot be sold for a sum sufficient to cover all duties, s.57(5) expenses, rent, freight and other charges, they may be destroyed or disposed of in such manner as the Commissioner may direct. 20. Bonded warehouse books and accounts (1) Registers to be Kept in a Bonded Warehouse a. Warehouse Register (Register No.20) A warehouse register is to be kept for each bonded warehouse, in which particulars of receipts into and deliveries from the warehouse are to be recorded. The warehouse register consists of “Accounts” which are records to be opened for each warehousing entry to show the deposit of the goods into the warehouse, withdrawal(s) there from and running balance of the consignments that remain in the warehouse at any one time. When all the packages entered to a Warehousing Entry are satisfactorily accounted for, the account is to be balanced and closed. The register can be electronic or manual. Where the number of casks of spirituous liquors dealt with in a bonded warehouse during any one year warrants it, a separate register may be kept for all consignments of spirituous liquor imported in casks or other bulk containers. A specially titled register shall be available for recording consignments of tobacco and cigarettes and for packed oils and greases. All warehousing and ex-warehouse entries and Landing Account Books must be referenced with the number and folio of the relevant register. Postings on the receipt side of the register are to be made from the information contained in the Landing Account Book and the entry as accessed from the Customs computer systems as the case may be. 244

All postings into the registers or the system in respect of deposits or withdrawals must be undertaken at the bonded warehouse after confirmation that the warehousing or ex- warehousing entries have, in fact been passed. Shortages and breakages are to be entered on the delivery side of the appropriate register account in the same way as a normal delivery. In this way, the receipt and delivery sides of the accounts will balance when the account is finally closed. b. Bond Security Registers General and particular bond registers are to be kept neatly and all postings therein should be checked by the Officer in-Charge of bonded warehouses. c. Landing Account Book When all the packages are satisfactorily accounted for, the account in the Landing Account Book should be closed. The Landing Account Book should be produced together with the Warehouse Register to the Officer in-Charge of bonded warehouses for checking. d. Returns of Stocktaking Returns showing the quantities and values of all goods lying in EACCMR 80 bonded warehouses at the close of business on 31st July of each year are to be prepared as a check of the warehouse contents against the ledgers. Customs will reconcile by physically counter-checking the goods reported in the ledgers. The marks and numbers on the packages must be similarly recorded. Details of any packages internally verified where there have been doubts as to its intactness, must be recorded and discrepancies noted. A brief annual report will be made to the Commissioner showing in general terms: - The quantity and kind of goods in warehouses as at 31st July and whether the quantity of goods is abnormal? - Whether the records relative to warehousing have been 245

properly maintained in the year, and (if not) - What action has been taken to overcome the problem? 246

NOTIFICATION OF CONSTRUCTIVE WAREHOUSING Ref ……………………………………………………………………………………. Messrs …………………………………………………………………………………….. …………………………………………………………………………………….. Dear Sir/Madam CONSTRUCTIVE WAREHOUSING ENTRY NO. …………… of ………………….. Your application to enter the goods declared on the abovementioned entry for home use prior to the completion of the actual warehousing of the goods is approved in accordance with the provisions of section 50 of the East Africa Community Customs Management Act, 2004. Your Ex-Warehouse Home Use entry on the prescribed form should bear a reference to this letter of approval and your signature of receipt of the goods so entered, must be made on the reverse of a copy of that entry. Commissioner Customs c.c. Officer-in-Charge, Bonded warehouse No. …………… 247

STOCK TAKING RECORD Station ………………………………………………………………………. Bonded Warehouse No ………………………………………………………………………. Date ……….. …………………………………………………………….. Stock taken by: Name: ………………………………………………………………. Rank ……………………………………………………………..…. Designation ………………………………………………………… Item Entry Leading Description No. of Quantity* Condition Remarks No. No. & Marks & of Goods Packages of Date Nos. Packages 1. 2. 3. 4. 5. 6. 7. 8. 9. (etc) * Only to be utilised in instances where package is not intact or repacked. 248

STOCKLIST OF GOODS WAREHOUSED Station ………………………………………………………………. Bonded Warehouse No ……………………………………………………………….. Date ……………………………………………………………….. Ware En Descri No. Qua Va Am F. Num Quan Vari Adjus house try ption of ntity lue ount 10 ber tity* ation tment Regist No of Pack of 1 of + or and ered . goods ages duty Re Pack = Rema Ref. an or f. ages rks No. d Bon No Da d . te • Only to be utilised in instances where package is not intact or repacked Page | 249

CHAPTER 9 CLEARANCE OF PETROLEUM PRODUCTS 1. Licensing and approval of premises E1.ach warehouse licensee must apply for approval of his EACCMA s.62 premises specifying all tanks and buildings within and adjacent EACCMR 74 to the bonded area and the purpose for which each is used. Each tank must bear a painted number in a conspicuous position. Upon approval, the bonded premises shall be assigned a unique bonded warehouse number. 2. Operations sanctioned by the Commissioner T2.he storing and handling in the bonded area of products EACCMA s.51 imported for blending or packing, whether duty paid or not, EACCMR 70 may be in accordance with the terms and conditions set by the Commissioner. Accordingly, no such goods are to be introduced into a bonded area, or operations carried out in it, unless the warehouse licensee first applies for and is granted permission for that purpose. 3. Alteration of Premises B3.efore a warehouse licensee makes any alterations or EACCMA s.62 extensions to his approved premises, whether in the buildings, EACCMR 77 tanks or pipelines, he must first obtain permission from the Commissioner. 4. Receipts of the Petroleum products (1) Notification of intention to discharge A4. Notice of Intention (NOI) (Form P1) in duplicate is given by EACCMA s.24 facility owner or the oil marketer indicating the intention to receive products from a vessel to their nominated tanks. T5.he notice will give the following details:- - I•mporter name and address; - Receiving terminal and tank number; Page | 250