FINAL DRAFT PROCEDURE MANUAL - KAMPALA

Goods in respect of which a re-importation certificate is required and issued are to be examined in full and in detail. Goods other than those for which a scale is provided elsewhere are to be examined at the discretion of the officer concerned. Such examinations should be sufficient to ensure that goods are not exported unlawfully. If there are grounds for suspicion, then a 100% examination is to be made. (7) Sealing of Packages for Exportation at another Station Upon application and if practicable, packages containing the following controlled goods may be sealed at any station with the object of obviating examination at the port of final exportation:- - Game trophies; - Arms or unaccompanied baggage; - Precious metals and gems; - Goods imported for a temporary use or purpose under the provisions of section 117 of the Act, At the time of sealing the following should be done in respect of each type of goods: - Game trophies, Gems and precious stones: Export permits must be produced and should be endorsed with details of the goods in question. A list of the contents should be certified by the sealing officer; - Arms: The make, calibre and serial number of the firearm must be endorsed on the documentation The export permit, or list of contents, duly noted with the marks and numbers of the packages and with the sealing officer’s certificate of contents, should be handed to the applicants for use as supporting documents for the entry. Only external examination to confirm the status of the seal is necessary at the time of actual export. However, nothing stops an officer from making an internal examination where there are good grounds to suspect that all is not in order. (8) Examination Accounts Examination accounts are to be carefully and legibly recorded and should include: Page | 351

- the marks and numbers of the packages opened; - the contents of the packages; - A statement whether the officer is satisfied that the goods found are as entered. Details of the examination and findings thereof must be endorsed on the relevant Export entry. 4. Shipment of Exports The loading of goods for export is subject to the following conditions: Generally no goods shall be put on board an aircraft or vessel departing to a EACCMA foreign port unless they have been entered. s.75 EACCMR 88 – 92 All loading shall take place at a time and place and in a manner prescribed by the Commissioner. No goods shall be put on board any aircraft or vessel departing to a foreign port or place before the outward report is entered. No goods shall be put on board any aircraft or vessel to be loaded on to another foreign-going aircraft or vessel if the goods may not be directly put on board that other aircraft or vessel; Goods put on board any aircraft or vessel to be loaded on to another foreign aircraft or vessel must be so loaded within the limits of the port However, the following exceptions apply: - goods may be loaded from one means of transport to another on to which they had been put on board in order to be loaded on to the aircraft or vessel; and - goods reported for transhipment may be loaded on to an aircraft or vessel from another aircraft or vessel. (1) Goods not to be Unloaded No goods which have been put on board any aircraft or vessel for export, or EACCMA for use as stores, or as passengers’ baggage, may, be discharged at any place s.77 within a Partner State without Customs authority Page | 352

(2) When Goods deemed Put on Board Goods entered under bond or covered by cash deposit for exportation or use EACCMR as stores or for trans-shipment shall not be deemed to have been put on board 94 unless they are- - entered on an appropriate form (Form C.17) EACCMR 89 - produced to the proper officer for examination immediately prior to loading; - loaded on the exporting aircraft or vessel immediately after examination; - produced to the proper officer, if he so required, after loading; - certified on the appropriate form by the Master or other principal officer of the aircraft or vessel as having been received on board; - Except in the case of aircraft or ships’ stores, included in the outward manifest of the aircraft or vessel. (3) Goods Short-shipped Where under section 78 of the Act any warehoused, drawback, trans- EACCMA shipment or restricted goods are short shipped: s.80 - owner must notify the proper officer within twenty-four hours, or such further time as the proper officer may allow, of the departure of the aircraft or vessel; - In the case of ex-warehouse goods the owner must forthwith enter them for re-warehousing or for subsequent exportation or use as stores for aircraft or vessels. - When all other goods are entered for exportation but not loaded EACCMA as intended, the owner of the respective vessel or aircraft must s.80 notify the proper officer within forty-eight hours of the departure of the aircraft or vessel. - No export entry of any type may be cancelled after it has been made and passed. If after having made and passed an export entry the owner does not desire to ship the goods, he may refrain from doing so and then report the short-shipment to the Proper Officer Page | 353

5. Amendment of Entries Application to amend export entries of any type must be treated with caution and care must always be taken to see that an amendment, if allowed, does not enable the exporter to evade any prohibition, restriction or control of payment of export tax or cess. 6. Tonnage of Export Ship Warehoused goods may not be entered for use as stores for a vessel of less EACCMA than two hundred and fifty tons. If any such goods are found on board a s. 55 vessel of less than two hundred and fifty tons register, they are to be seized and the matter should be reported immediately to the officer in-charge of the Item 2 of station. Part B of 3rd Sch. The above prohibition does not apply in respect of other goods which are trans-shipped for coastwise removal. 7. Procedure for Shipping Goods The Ports Authority should only accept goods for shipment once they are EACCMR entered and the shipment authorized by Customs. 135 The exporter must present to Customs his copy of the export entry together with a shipping order issued by the ship’s agents; Information on entry is compared with information on the shipping order after which the shipped order will be endorsed “Released for Shipment”; The released shipping order and the entry must be handed to the importer for presentation to the Ports Authority; Any material discrepancy between an export entry of any type and the shipping order is to be investigated immediately and a physical examination undertaken. 8. Drawback Goods, ex-Warehouse and Excisable Goods In the case of goods, such as drawback goods, ex-warehouse goods and excisable products, in respect of which the liability for duty is relieved, or they become entitled to drawback upon their exportation, the following conditions apply: - The shipping order must not include any other goods; - The shipping marks and consecutive numbers of the packages Page | 354

must be shown on the entry; - After satisfactory comparison with the entry and examination of the goods, the shipping order is to be stamped “Exported under Drawback” or “Exported from Bond” (as the case may be); The exporter’s copy of the entry is, however, not to be returned until a certificate of shipment can be given. The export officer is to keep a register of the disposal of such quadruplicate drawback entries certified as to shipment titled as follows:- - Entry number and date - Name of exporting vessel - Date of shipment. - Date export note received. - Date when quadruplicate export entry for drawback goods certified as to shipment returned to the exporter. - Exporter’s signature. Where the original import entry on which the drawback and ex-warehouse goods were original cleared is available the shipping order must be compared with that original entry. 9. Certificates of Origin Certificates of Origin are issued to facilitate privileged Customs treatment of goods exported from a Partner State to countries such as with which the community has preferential trading agreements. These Certificates of Origin are issued in respect of qualifying goods upon payment of the appropriate fees. The certification of Certificate of Origin should be done by a competent Authority appointed for that purpose and whose stamps and signatures are registered and circulated to the respective trading partners. Where the provisions of the trade agreement allow retrospective issuance of Certificates of Origin in respect of goods exported without such a certificate, the certificate may be issued provided all the documentation is in order. Page | 355

A Certificate of Origin may be replaced by one or more certificates as long as this is done before the goods are exported. Trade agreements provide for co-operation between trading partners in the investigation of fraudulent claims. Accordingly, requests for assistance should be expedited and investigations should be thorough. The designated officer should see to it that requests for assistance under the terms of a trade agreement are expedited and that officers of sufficient seniority and experience are appointed to undertake the task. The results of the Investigations are to be conveyed to the foreign Customs Authorities through the Commissioner’s Office. 10. Exportation of Goods under Drawback Drawback differs from refund in that refund is allowed where the duty was EACCMA paid either in error or paid after certain conditions rendering the payment of s.138 duty inequitable such as where the goods are damaged or destroyed whilst still under Customs control. In contrast, export drawback is the return of duty correctly paid at the time of importation but rendered refundable by reason of the goods being exported in the same state or used in a prescribed way to produce the goods being exported. For a claim of drawback to succeed the following conditions must be EACCMA satisfied: s.138 EACCMR 140 EACCMR 141 EACCMR 142 - the goods must not have been used in any way in the Partner state and EACCMR must remain packed in the same packages as at importation unless s.142 repackaging was authorised by Customs; - the claimant must enter such goods and produce them for examination by the Proper Officer before the exportation; - that the goods have not been and are not intended to be re-imported; - In the case of goods exported or put on board an aircraft or vessel for use as stores that the goods have actually been exported or put on board for use as stores, as the case may be; Page | 356

- that the owner at the time of the entry of the goods for drawback was, and continues to be entitled to drawback; - The claimant must make and subscribe to a declaration on the prescribed form to the effect that the conditions under which drawback may be allowed have been fulfilled; and - The drawback must be made within twelve months from the date of the exportation of the goods or the performance of the conditions on which drawback may be allowed. Drawback shall not be allowed in respect of goods where: - the value of the goods for the home use is less than the amount of the drawback which may be otherwise allowed; or - The import duty thereon was less than USD100 per EACCMA consignment. It is not permissible to aggregate several claims s.138(3) to make this figure. Where the proper officer is satisfied that goods under drawback, after being EACCMA duly put on board an aircraft or vessel for exportation or for use as stores: s.141 - have been destroyed by accident on board the aircraft or vessel; or - have been materially damaged on board the aircraft or vessel; and that the goods have, with the permission of the proper officer, been discharged at a port or place within the Partner State and abandoned to Customs. Then drawback may be allowed in respect of those goods as if the goods had actually been exported or used as stores. Drawback is payable on the actual quantity of goods exported, shipped for EACCMR use as stores or used as prescribed, as the case may be 140 (1) Conditions Under Which Drawback is Allowed Drawback is allowed subject to the following conditions: - The exportation or use of the goods as stores is not prohibited by any EACCMR law; 141& EACCMA s. 138(2)(b)(i) - The goods were cleared against a perfect entry in respect of which an invoice was submitted; Page | 357

- The goods are properly entered for export - The goods are removed for use as stores within 12 months of date when the duty was paid; The goods on which drawback can be claimed must be exactly the same EACCMR goods that were imported. In other words the goods must be exported unused 142(e) and in the same state as they at importation. Thus application for drawback should not be allowed unless: - the goods are re-exported in their original packages in which they were imported; or - Or if they are in different packaging, that the repacking was done under the authority and supervision of an officer (2) Repacking of Goods Entered for Exportation under Drawback Goods may be repacked under official supervision prior to exportation under EACCMR drawback provided the exporter gives at least six working hours notice of the 142(a) intention to repack and pays any fees due if the repacking takes place at an unapproved place. The officer attending the re-packing must check the original packages, which must be intact when produced to him, against the particulars entered on the export entry, particularly the marks and numbers of the original packages. During the repacking he is to check the quantity and description of the goods, to ensure that the goods are not damaged, spoilt or used. When the repacking has been completed, the officer must see that each new package is properly secured, marked and numbered distinctively. Packages repacked under supervision must be exported immediately or deposited in the Customs Warehouse pending exportation. The officer attending the repacking must record his examination, and particulars of the packages into which the goods have been repacked, on all the officially prescribed copies of the entry and in Customs Clearance System. Whenever possible the packages are to be gross weighed and the gross weights recorded on all the officially prescribed copies of the entry. 11. Exportation of Bonded Goods from Bonded Warehouses Detailed instructions in respect of the exportation of bonded goods from bonded warehouses are to be found in the appropriate sections of the Bonded Warehousing Chapter 7) Page | 358

12. Landing Certificates A certificate of landing prepared by the Customs authorities of the country to EACCMA which goods are exported may be called for in respect of the following high s.78 (3) risk goods: - warehoused goods; or - goods on which drawback or Customs or Excise duties may be claimed: or - dutiable goods intended for transhipment; or - restricted goods, If the person fails to produce the certificate of landing in respect of excisable EACCMA goods, the proper officer may refuse to allow him to export any other s. 78(3) excisable goods, or may allow exportation only upon payment of a deposit which may be forfeited if the landing certificate is not produced within three months of the date of the deposit or such further period as the proper officer may permit. In the case of goods exported overland a copy of the 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 a landing certificate. (1) When Certificates are Not required EACCMR 102 Landing certificates are not required when the goods in question are: Shipped in full and properly manifested by a vessel or aircraft which clears direct for a foreign port; 13. Goods exported Under Bond When a landing certificate is required and a security was taken prior to exportation pending the production of the landing certificate, such security may not be cancelled until a landing certificate is produced. If the certificate is not produced within three months from the date of the export entry, a demand for a penalty under the bond equal to the duty on the goods must be made. This payment is a bond penalty for non-compliance with the terms of the contract enshrined in the bond. This penalty is therefore not refundable even if the landing certificate is subsequently produced. Page | 359

14. Re-importation Certificates Goods imported after having been exported from the Customs Union are EACCMA admitted duty free. To facilitate this duty-free re-importation, the owner of s.116 such goods must, prior to exportation, give written notice of the exportation to the proper officer and produce the goods for inspection at the port or place of exportation. Duty-free re-importation will be subject to the following further conditions: EACCMA s. 116 - Any import duty or Excise duty to which the goods were liable prior to exportation has been paid; - Such goods were not subjected to a process of manufacture abroad which is significant enough to change the form and/or character of the goods; - If the goods which are subject to ad valorem have been subjected to any process, duty shall be chargeable at the time of re-importation on the cost of such process; - If the goods changed their form and/or character then duty shall be payable as if the changed goods were being imported for the first time; - No drawback of import duty or refund or rebate of excise duty, as the case may be, was allowed at the time of exportation of the goods; and - If drawback, rebate or refund was allowed at the time of exportation, it has to be repaid at the time of importation Note: The Commissioner may dispense with the requirement for the exporter to give written notification of the export in deserving cases and where the risk of abuse is low. All re-importation certificates must be endorsed with a certificate of examination and shipment. Officers must make inquiries as to whether the articles are being exported for alteration, repair or other process. If so, the re- importation certificate must also be endorsed to that effect so that the cost of the process, which is dutiable, is not overlooked at the time of re-importation. The issuance of a re-importation certificate implies no guarantee that the goods will be admitted duty free. The goods must satisfy the various conditions for duty-free importation, one of which is the production of the Page | 360

certificate. The goods being re-imported must be definitely identifiable as the goods that were exported. Thus for the certificate of re-importation to be useful for this purpose it must bear as much information as possible to aid this identification, such as serial numbers and other distinctive marks. Where possible and feasible a Customs seal or date stamp may be impressed on the goods as long as this can be done without damaging the goods. No re-importation certificate may be issued without prior examination of the goods or where the goods are incapable of physical identification. Drawback of duty may be claimed in respect of petroleum products shipped on foreign going aircraft provided the fuel is uplifted from approved aerodromes and the claim is made by registered oil marketers upon fulfilment of the laid down conditions. 15. Flight Receipts of Drawback Uplifts When fuel or lubricating oil is shipped on a foreign going aircraft, the oil company prepares a receipt bearing details of the goods delivered to be signed by the pilot and endorsed by the Proper Officer. Officers are responsible for carrying out occasional surprise checks to ensure that quantities of dutiable petroleum products on the flight receipts are actually supplied to the aircraft concerned. When, for any other reason, an aircraft aborts a flight after take-off and returns to the Partner State, it is often necessary to replenish fuel used during the aborted flight. In such cases, the quantities so supplied will be regarded as equal to the amounts actually used within the territory of the Partner State during the aborted flight. Therefore the receipt in respect of the quantities of fuel supplied as replenishment will not be endorsed by Customs and the oil company should be advised to pay duty on tat quantity as drawback will not be authorised. Drawback of duty may be claimed in respect of petroleum products shipped on foreign going aircraft provided the fuel is uplifted from approved aerodromes and the claim is made by registered oil marketers upon fulfilment of the laid down conditions. 16. Ship’s Stores Goods shipped as ship’s stores on all vessels, including dhows, are to be EACCMA entered in the same manner as goods exported as cargo, including production s.73 & 75 Page | 361

of export permits where required for that type of goods. The entries must be endorsed “Ships’ Stores”. Bonded goods and those in respect of which drawback will be claimed may EACCMA be shipped as stores. However, unless the Proper Officer gives special s.55 permission to the contrary, all shipments of such goods must be sealed at the time of shipment. EACCMR 23 No goods may be shipped as stores from a bonded warehouse or under EACCMR drawback on any vessel engaged in the coasting trade except those approved 97 & 100 by the Commissioner. Accordingly, export entries for such shipments must be rejected. Record must be kept in the station of each port of all bonded goods shipped as stores on coastal vessels clearing for foreign. (1) Procedure for Processing Entries in Respect of Ship Stores (including dunnage) Normal entry procedure is required in respect of dunnage which is being shipped for discharge at a second port for any purpose whatsoever. Dunnage for immediate use or for retention on board in connection with cargo to be loaded at a second port should be dealt with as follows: - The wharfage company concerned must lodge with the Proper Officer EACCMR an Application to Ship Stores (Form C.24). 96 - In the event of any emergency which requires the shipment of dunnage outside official hours the Form C.24 will be lodged at the opening of business on the next working day. - If the senior designated officer considers the quantities of dunnage to be reasonable for use as ships’ stores he or she will countersign the original form C.24 and forwarding it for filing in the outward manifest. If the quantity is considered excessive then the normal entry formalities will be required. All ship’s stores are to be examined and the quantities on hand verified EACCMR against the records. Documentation relating to bonded or drawback goods 97 and 100 must be processed expeditiously and returned to the bonded warehouse concerned. All shipments of new stores must be summarized in the appropriate section of EACCMR the ship’s Blue Book. Issues to passengers and crew may be made from such 101 stores, where old stocks of any particular commodity have been exhausted, and the Blue Book is to be suitably endorsed in respect of such issues. Page | 362

Upon sailing the respective Form C.6 must be endorsed to include new stores EACCMR uploaded by the ship and forwarded to the next port of call. 15 (2) Shipment of perishable goods Shipment of perishable goods as stores (including ice), provided the goods are not bonded goods, drawback goods or goods on which a rebate of excise duty will be claimed, may be allowed by the Border Control Officer prior to entry. (3) Stores Shipped on Coastal Vessels Coastal vessels which are permanently based at coastal ports are not eligible EACCMA for any duty-free privileges unless they clear for departure to a foreign port. s. 79 In such cases duty-free stores will be limited to the quantities reasonable for such the duration of the voyage. This restriction covers all yachts, harbour tugs, lighters, motor boats and fishing vessels. Upon return from a foreign port, the Master, officers and crew members may EACCMR retain in their possession, for consumption on board the vessel, the 24 unconsumed portion of their duty-free allowance provided that it does not exceed 4 days allowance of alcoholic liquor and 8 days allowance of tobacco EACCMA goods. Any stores surplus to these allowances must either be landed and duty s.35 paid, or sealed for use upon departure if the vessel intends to depart to a foreign port within a short period of time. Light amber mineral fuel oil, for use in high-speed engines, shipped as stores in quantities approved by the Commissioner in any coasting vessel of not less than 10 tons register are liable to a reduced rate of duty of 5 % ad valorem or 5% of the specific rate specified in the First Schedule to the Act, whichever is the higher. (4) Stores Shipped on Dhows EACCMA s. 79 EACCMR 24 No person on board a dhow engaging in the coasting trade between ports, or ports and unapproved places along the coast of the Customs Union, is entitled to the use or consumption of duty-free stores. All dutiable stores aboard such vessels, whether ship’s or privately owned stores, must therefore be duty paid, or placed under seal, whenever possible prior to the granting of outward clearance. Particulars of all stores on board must be recorded on the transire, the sealed Page | 363

non-duty paid element thereof being separately and distinctly enumerated. Duty will be charged on any sealed dutiable stores shown on the transire which are not accounted for to the satisfaction of the officer at the port of destination, or the port of call, as the case may be. Reasonable quantities of non-dutiable consumable stores subject to special controls, e.g. foodstuffs, which are claimed to have been consumed during the voyage, may be also regarded as having been satisfactorily accounted for. All dutiable stores will remain under seal until duty thereon is paid or until the dhow is clear of territorial waters, having cleared outward in a regular manner for a foreign destination. No goods maybe shipped on board dhows ex-bond or on drawback for use as duty-free stores whilst they are in any Partner State port, or are engaged on any coasting voyage. Bonded or drawback goods may, however, be shipped duty free as stores on dhows in respect of voyages to foreign. Such stores will be placed under seal and must remain under seal until the vessel clears for foreign. Particulars of all such stores shipped will be shown on the transire covering each coastal voyage and, subsequently, on the outward report form issued by the port of final clearance for foreign. (5) Stores on Vessels Laid Up No dutiable ship’s stores are to be retained in vessels laid up in harbour. All such stores must be duty paid or removed into a bonded warehoused. (6) Deck and Engine room Stores EACCMA s. 35 All vessels, other than coastal vessels which are permanently based at coastal ports mentioned above, may receive dutiable deck and engine room stores without payment of duty. Precautions should be taken to ensure that these stores are not re-landed at marine repair works or at any other place in the Partner State. 17. Aircraft Stores Except for the following differences, the basic principles governing the EACCMA treatment of stores on board aircraft are identical to those applicable to stores s.55 on board vessels, except that there is no limitation in respect of tonnage of aircraft that may uplift as duty free stores. In cases where crews change aircraft and take an overnight rest, bar boxes may be landed and deposited in the Customs Warehouse pending uplifting again on the departure of that particular crew. The boxes should be sealed by the officer on arrival and should be conveyed to and from the Customs Page | 364

Warehouse under direct supervision. At the discretion of the Proper Officer the Form C.25 (Application to transfer stores from one vessel/aircraft to another) may be called for and only under exceptional circumstances may a bond security be called for. (1) Failure of Aircraft to Depart on Schedule In the event of an aircraft being prevented by accident or other cause from leaving the airport at the scheduled flight time, the officer must board the aircraft and take steps to ensure that all seals are intact. If these have been tampered with, the matter is to be immediately investigated and duty called for on any discrepancy. At the same time consideration should be given, in the event of broken seals, as to whether any offence against the Act has occurred. In the event of an aircraft which returns on account of emergency after having departed on a flight to a foreign port, due allowance is to be made when taking an account of stores, for any goods which might have been legitimately consumed or used during the aborted flight. (2) Uplifts of Made-Up Meals It is the practice of certain Airlines to ship made-up meals for consumption EACCMA aboard aircraft. The meals, which are locally produced, may be supplemented s.79 with imported tinned foods and bottled goods. The imported components of the meals are to be included in the form C.24. The form must be completed in duplicate, the original, duly approved being handed to the airline agent as his warrant for delivery of the goods on board the aircraft, the duplicate being filed in the outward manifest. There is no objection to submission of Form C. 24 supported by an aircraft catering order provided these documents are properly related to each other. 18. Prohibited and Restricted exports EACCMA s.70 and 71 The Council may order further prohibitions and restrictions from time to time. Prohibited and restricted exports are those goods specified in the third schedule but also including any other goods that may be specified as being prohibited or restricted in any law in force in a Partner State. Generally the following goods may not be exported in vessels weighing less than 10 tons: - Warehoused goods; Page | 365

- Goods under drawback; and - Goods for transhipment (1) Checking export licences Officers checking the export entries in respect of restricted goods must ensure that the declared particulars of the goods i.e. quantity, description, value and tariff headings are accurate and in accordance with the export licence attached thereto. (2) Examination of Exports In all cases all restricted goods must be fully examined internally to ensure that they tally with the declaration. The precise amount of goods found must be indicated on the examination account. Vague examination accounts will not be acceptable. (3) Excess or Shortage on Examination EACCMA s.210(b) EACCMA s.212 EACCMA s.213 Where restricted goods are found in excess of the quantities declared, the whole package becomes liable to forfeiture and must be seized. In the case of shortages the exact quantity found must be recorded in the examination account before the exportation is authorised. 19. Export duties, Levies, Taxes, Cesses and Royalties The collection of export duties, levies, taxes, cesses and royalties on certain EACCMA commodities exported from is provided for under the Act. s.82; 110 & 129 (1) Short-shipment of Goods EACCMA s.80 Where goods liable to any export duty are short-shipped, the short-shipped portion, if subsequently exported, must be re-entered to a fresh export entry on which the tax must be paid and a refund claimed on the original entry. Where the whole quantity is short-shipped on a particular means of transport such as a vessel, the documentation may be altered to change the ship’s name Page | 366

provided the relative export licence is still valid and the necessary alteration fee is paid. (2) Refunds EACCMA s.144 EACCMR 148 Applications for refunds of any export duty paid in error, at a wrong rate, or in respect of goods partly shortshipped, are to be made on Customs Form C.34 and must be supported by a certificate from Ports Authority, and the Shipping or Airline Agent including a certificate endorsed by the designated senior officer. Separate applications will be made in respect of each particular kind of duty. Applications for refunds for reasons other than those quoted above are to be referred to the Commissioner for instructions. (3) Export of Accompanied Baggage EACCMA s.76,77 In the absence of suspicion that export prohibitions and restrictions are being contravened, the examination of passengers’ outward baggage is to be kept to a minimum. However, it is essential to maintain a measure of presence or visibility at the points of exit to deter possible infringements of export restrictions and prohibitions. Page | 367

CHAPTER 17 TRANSIT AND TRANSHIPMENT OF GOODS Goods landed for removal in transit or for transhipment must be EACCMA s.24 shown separately on the inward report of the incoming aircraft, (2) vehicle and vessel. Transit goods are also subject to the provisions of the Act EACCMA s.85 regulating importation generally. (3) However, provisions of any law prohibiting or restricting the EACCMA s.19 importation of goods will not apply to transit goods unless the & 20 goods are specifically listed in the Third Schedule to the Act by order of the Council. Where transit goods are stored in a Customs area or transit shed EACCMA s.81 pending exportation, or while in transit, they will be so stored at the owner’s risk and will be liable to rent and other charges as may be prescribed. Goods landed for removal in transit must be cleared on Form C.17 EACCMA s.34 within 21 days of the commencement of their discharge from the importing aircraft, vehicle and vessel. Goods remaining unentered after the 21 days are to be deposited in a Customs warehouse. Once they are so entered they must be removed in transit and EACCMA s.34 exported within 30 days from the date of such entry or within such further period as the proper officer may allow. In the case of goods EACCMR imported overland they can only be conveyed through the Partner 104(4) State after their entry on the Form C. 17. The conveyance of the goods in transit must be by the road or EACCMA S.12 routes approved by the Commissioner and consideration for the deadline for exportation will only be given if application for extension is received before the expiry of prescribed periods. Goods entered under bond in transit, and which are proved to the EACCMA s.115 satisfaction of the Commissioner to have been duly exported, will be exempt from liability to import duties. Page | 368

Goods removed in transit must be covered by sufficient bond or by EACCMR such amount of cash deposit as the commissioner may require. 104(3) Where a consignment of goods in transit are shipped in parts at the port of exportation, a separate entry must be made for each part consignment. 1. Conditions for Transit Goods and Vehicles EACCMA s 85 & EACCMR 104(5) Goods in transit shall only be carried through the Partner State in sealed vehicles except in the case of “exceptional load” or any other special case otherwise authorized by the Commissioner. “Exceptional load” here refers to loads which are clearly so heavy EACCMR104(6) or bulky that they cannot normally be carried in a closed or sealed vehicles or container. In the case of goods carried by road, the carrying vehicle must EACCMR meet the requirements for licensing and be licensed for the 104(5) purpose by the Commissioner in Form C.28. 2. Licensing of Vehicles for the transportation of transit goods Application for licensing of vehicles for purposes of ferrying EACCMA s.244 transit goods shall be made on Form C. 39. EACCMR 104(5)(a) The application form for licensing must be submitted to the EACCMR Commissioner of other designated officer for consideration. 104(a) Issuance of the license will be conditional upon the applicant: - Meeting the set criteria set in the Regulations. ; - Paying the annual license fee of USD200; and - Furnishing sufficient bond. A single license and or a single bond may be issued to the owner EACCMR s. 212 of a fleet of vehicles to cover all his vehicles. A license issued in a Partner State shall be valid for the purposes it EACCMR was issued in other Partner States. Thus a vehicle which is 104(5), 104(10), licensed in any Partner State or in any of the COMESA or SADC & 104(11) countries to carry transit goods will be issued with a certificate of Page | 369

approval in Form C.29 on presentation of a valid license. Foreign registered vehicles can only ferry cross border cargo. EACCMR Thus a vehicle arriving from a neighbouring country may not 134(5)(c) uplift goods from a place in a Partner State to another place in the same Partner State. 3. Change of Ownership Where the ownership of goods entered for removal in transit is changed by virtue of a court order or for any other reason, such as sale or donation, the new owner will be deemed to have assumed the obligation to have the goods re-exported within the prescribed period. Application for change of ownership should be made by the original owner of the goods and may only be approved if a fresh bond is executed in the name of the new owner. In the absence of notification of the new change, possession of the goods in transit by the new owner constitutes an offence and the goods should be seized immediately and a report made in the normal procedure. 4. Accounting for Goods Entered in Transit Transit goods that are normally restricted or prohibited are EACCMA s.72 allowed passage in transit under the derogation provided in section 72 of the Act. However, if such goods are not exported within the prescribed or allowed period, they are automatically deemed to be prohibited or restricted, as the case may be. If the quantity of goods entered in transit is found, at the time of EACCMR exportation, to be less than that specified in the entry, then, the 104(12) owner shall forthwith pay the duty in proportion to the missing goods. Where transit goods are exported after the expiry of the allowed EACCMR transit period, the importer becomes liable to payment of a penalty 104(13) to the bond. Payment of the penalty to the bond does not absolve the importer EACCMR from exporting the goods in default of which the good shall be 104(18) liable to forfeiture and must be seized immediately. Page | 370

5. Bond Cancellation At the time of exportation of transit goods the remover of the goods will secure cancellation of the bond or refund of the security deposit paid in respect of those goods by submitting the application for cancellation of the bond Form C.26 together with the following supporting documents: - Quadruplicate copy of transit entry C.17; - Road Customs Transit Declaration; and - Cargo Manifest in Form C. 2. These supporting documents must have been duly certified by the authorized Customs officer at the border station of exportation. This certification must be in hard copy, as well as electronically in the Customs Clearance System, where applicable. In case of Road Customs Transit Declaration, the copy must have been certified by the Customs authorities of the importing Partner State. In an automated environment, bond cancellation is done upon confirmation of exit of the transit declaration in the Customs automated system. The bond cancellation must be processed within thirty days from EACCMR 104 the date of exportation, in default of which the goods shall be (16) deemed to have been imported for home consumption and shall be liable to import duty at the rate applicable at the time of importation. 6. Examination of Transit Goods Goods entered for transit may not be subject to physical examination as long as they are properly secured, have satisfactory documentation and there is no information to indicate that the goods require thorough examination. At the time of exportation, the goods in transit should be subjected to full external examination only unless there is evidence of tampering in which case internal examination becomes necessary. In all cases accounts of the examination undertaken at the time of re-exportation are to be recorded on the quadruplicate and Page | 371

quintuplicate copies of the transit entry and where possible in the Customs clearance system. A proper officer at the port or place of exportation may refuse to allow the exportation of any goods in respect of which the copy of the entry is not available or where the goods do not conform to the particulars in the entry. 7. Transit Procedure under the Common Market for Eastern and Southern African States (COMESA) The procedures outlined above are also applicable to transit goods from Member States of the East and Southern Africa (COMESA). (1) Transhipment of Goods EACCMR 105 and 106 The condition relating transit goods also apply mutatis mutandis goods on trans-shipment, but the following differences must be noted: a. Trans-shipment of Imported Goods for removal Coastwise by Aircraft The Commissioner may authorize the trans-shipment of EACCMA s.247 airfreight without entry in cases where such airfreight is unloaded from the importing aircraft for coastwise removal subject to the following conditions: - that such goods are listed separately on a freight manifest under the heading “GOODS SUBJECT TO CUSTOMS CONTROL” - that an additional copy of the flight manifest is delivered to the proper officer to be forwarded on the carrying aircraft to the officer at the airport of discharge; and - that the goods are unloaded and entered in the normal way at the airport of discharge When this procedure is applied, the officer at the airport of discharge must endorse the additional copy of the freight manifest with particulars of the clearance of the goods listed thereon, and then return it to the airport of origin. b. Exports Removed Coastwise for Trans-shipment Prior to Exportation Goods removed from a port in a Partner State for trans- Page | 372

shipment prior to final exportation at another place in the Customs Union may be entered for exportation at either port. When the goods are entered at the port of first entry the entry documents must be endorsed:- “TO BE REMOVED COASTWISE BY ………………… TO …………………… FOR TRANS-SHIPMENT TO ………………………………” The exporter’s copy of the entry should be sent by the exporter to the port of final exportation where trans-shipment will thereafter be allowed without further entry. In all cases export licensing formalities (where necessary) are to be complied with at the time of entry. Where the goods in question are the subject of a claim for refund or rebate of excise duty (in the case of local produce) or claim refund or drawback of duty (in the case of previously imported goods being re-exported), the officer at the export must forward the certified quadruplicate entry to the station where it was passed. The certified copy will then be used as a warrant for support the claim for rebate, drawback or refund of Customs or excise duty, as the case may be. c. Direct Trans-shipment EACCMR 106 Direct trans-shipment from the importing aircraft, vehicle and vessel to the exporting aircraft or vessel may only be allowed on written application being received from the owner and under the following conditions: - the goods must have been reported by the importing aircraft or vessel for trans-shipment; - all tallies or port records relating to the direct trans- shipment of both the importing and exporting ship are to be produced on demand; - the appropriate officer of the exporting ship must give a receipt to the Proper Officer for the goods trans-shipped as soon as the direct trans-shipment is completed; - In the event of a dispute, the original out-turn document from the port of destination must be produced to the Proper Officer. Page | 373

The receipt mentioned above is to be given on the quadruplicate trans-shipment entry. If this document is not available, the receipt may be given on an official letter head of the shipping company reflecting the ship’s name, the total number of the packages and the marks and numbers thereof. This receipt must then be attached to the office copy of the trans-shipment manifest. A receipt will not be given in the event of a dispute, and particulars of the goods trans-shipped should be obtained from the tallies and the facts reported to Proper Officer. A certificate of shipment is not to be given until the original outturn documents from the port of destination are produced and the dispute settled. Goods trans-shipped direct from dhow to dhow are to be trans- shipped under Customs supervision. d. Examination In the absence of suspicion goods trans-shipped direct from ship to ship need not be examined either externally or internally. Goods shipped from the wharf should occasionally be stopped for a 100 per cent external examination during which the marks and numbers and the number of the packages should be checked. Internal examination of the packages need not be made unless it is suspected that any of the packages have been pilfered or contain prohibited imports. The object of these examinations is to provide a check against any subsequent certificate of short-shipment given by any wharf owner or his agent. In the case of large consignments of produce or bulk goods it is obviously impossible and unnecessary to carry out a hundred per cent examination. Such checks examinations should, as a rule, be applied to high value and high dutiable goods, where the risk of revenue loss due to pilferage, substitution, etc., is significant. Examinations must be thorough and expeditious so that goods are not delayed. Examination accounts are to be recorded on quadruplicate trans-shipment entries. Page | 374

e. Limitation of Tonnage of Export Ship Except in the case of trans-shipments for coastwise removal, Item 2 of Part B goods cannot be trans-shipped in vessels weighting less than of the 3rd Sch. of two hundred and fifty tons, unless otherwise authorized by the EACCMA Commissioner. If any such goods are found on board such a vessel they are to be seized and the matter should be reported EACCMA s.102 immediately to Proper Officer. f. False Money etc. The importation of false money, counterfeit currency notes or Item 2 of Part A coin as trans-shipment goods is prohibited. If found, any such of 2nd. Sch. of false money should be seized and the matter reported in the EACCMA normal manner. EACCMA s.20 g. Landing Certificates Certificates of landing issued and signed by the Customs authorities at the port of destination must be produced for trans- shipment goods. h. Baggage and Vehicles in Transit The normal transit conditions and requirements in respect of EACCMR cargo apply mutatis mutandis to accompanied baggage and 104(21) motor vehicles imported by visitors. However, in respect of accompanied baggage and motor vehicles no entry is required and the transit deposit, where considered necessary, should be collected on a miscellaneous receipt If a seal placed on packages, is found to be tampered with, the package will be examined internally and if the officer is satisfied that the contents are of a non-consumable nature and are as imported, refund may be made. Claims for the refund of the deposit must be properly completed on Form C.26 and supported by the original bank slip receipt before a certificate of shipment is given. An extra copy of the claim form must be sent to the port of importation, where the deposit was collected. A refund of transit deposit is not to be given if part consignments are not exported, or if any deficiency is found, until the deficiency is properly accounted for and/or duty has been paid on the goods which have not been exported. Page | 375

The wilful disposal in a Partner State of any part of a consignment of such goods, originally imported as one whole consignment, contravenes the condition of temporary importation and thereby renders the whole of the consignment liable to duty. Part refunds of deposit may however be made in respect of commercial travellers’ samples and goods imported for local exhibition. Thus, unless the designated officer is satisfied that any articles not produced for re-exportation have been stolen or otherwise disposed of in circumstances beyond the owner’s control, no proportionate refund of deposit is to be allowed. Transit goods must be exported within 30 days. Any extension of this period must be endorsed on the original miscellaneous receipt in the possession of the traveller. If an extension is granted at a station other than the port of importation, notification of the extension should be forwarded to that port where the extension is to be recorded. A deposit which is not claimed or not refunded within the prescribed period is to be written off to revenue. i. Trans-shipment Baggage The direct removal from ship to ship of accompanied trans- shipment baggage for exportation to foreign may be allowed on application without declaration or internal examination. Such baggage should not be chalked and the baggage officer should arrange for the shipment under Customs supervision. If a passenger wishes to move his baggage from the import vessel to another vessel for removal coastwise, the baggage is to be cleared through Customs before shipment on the coastwise vessel. j. Re-importation Certificates and Pass Notes Officers are to issue re-importation certificates (P45) on request EACCMA s.116 and such forms must always be available at the time of attendance for clearance of outward baggage. Page | 376

8. Transit Duty Deposits (1) Effect of import restrictions and prohibitions on transit goods The following are important provisions relating to goods in transit: - Restrictions and prohibitions shall not apply to goods in EACCMA transit. s.18; 19; 20; 70; 71 and 72 - Where transit goods are stored in a Customs area or transit EACCMA shed pending exportation, they will be so stored at the owner's s.81 risk and will be liable to rent and other charges as may be prescribed. - Landed goods destined for transit must be entered for such transit within 21days of landing. - Goods destined for transit are exempt from duties EACCMA s.115 Transit entries are submitted in the same way as other entries but must EACCMR be supported by either a bond or a cash deposit 104(3) Where consignments of transit goods are to be dispatched in part shipments a separate entry must be made for each part consignment. The amount of every security or deposit must be declared by the owner and approved by Customs. All alterations to the amount of any deposit must be approved by the designated senior officer. (2) Guidelines on assessment of amount of security The amount of security to be given by bond or by cash deposit will be assessed as follows: Type of goods Guidelines for assessing amount of security Goods subject to ad valorem duty: Where no invoices are Entry must be rejected produced and goods are entered on approximate value, or where for invoices a proper landing account has not been prepared Goods subject to ad valorem duty: Where invoices are 100% of the duty at stake produced and the goods properly described and entered, and where a proper landing account has been prepared and certified Page | 377

on the entry Goods subject to specific rate of duty: Where goods are liable 100% of the duty at stake to specific duty only and the actual quantity of the goods is accurately known either from documents produced or from examination prior to entry, for which proper invoices are not available Duty free goods 0% to 25% of value of goods depending on the level of the risk (3) Procedure at the port or place of exit T1h. e officer at the point of exportation will confirm exportation by issuing a certificate of exportation on the entry in the Customs clearance system (this applies whether it is a manual or electronic system). a. Extension of Time A2.ll applications for extension of the transit period must be made in writing to the designated senior officer prior to expiry of that period. E3x. tension will be approved only if convincing reasons are given and the exact number of days required to complete the re-exportation are specified. A4.pplication for the discharge of the security is to be made by the owner EACCMR after the goods have been exported. The application must be supported by 104(15) the quadruplicate copy of the transit entry and such further evidence of exportation as the officer may require. W5.here the transit goods are entered on transit entry (Master Transit Entry) but exported as part shipment against a Supplementary Transit Entry both documents must be produced to support the refund of cash deposit of release of the bond. W6.here part of the consignment could not be exported due to circumstances EACCMR beyond the control of the owner, pro rata refund of the deposit or partial 104(19) release of the bond may be authorized in respect of that portion of goods for which proof of export is produced while partial penalty may be raised in respect of the goods not exported. b. Transit exported out of time or not accounted for W7.here, at the time of exportation, goods in transit are found to be less than the quantities reflected in the transit entry or are being exported after the expiry of the authorized transit period, a full examination must be effected and the examination. Page | 378

T8h. e findings of the examination must be recorded in the activity grid of the transit entry for the necessary action to be taken to recover the penalty and duty from the person furnishing the transit security. W9.here no evidence of export is produced after the expiry of the authorized EACCMR transit period the office at which the security was given must make a 104(13) written demand for the penalty should be made to the importer or the and agent. 104(14) I1n0.the case of deficiencies, the demand for penalty must be limited to that proportion due on the missing goods. U11n.less the Commissioner otherwise allows, the payment of bond penalty EACCMR does not absolve the owner from his obligation to complete the transit of 104(14) the goods, neither does it release the bond. T1h2e. penalty ‘buys’ an additional 30 days within which the goods must be EACCMR exported and is not refundable. 104(14) I1f3t.he importer fails to export the goods within the additional 30 days, the goods will become liable to forfeiture. c. Discharge of security T1h4e. security may be discharged, either by cancellation of the bond EACCMR allocation or by the refund of the cash deposit upon exportation of the 104 goods T1h5e. transit bond can only be released or cash deposit refunded, as the case may be, upon:- - re-export of the transit goods within 30 days, or some other period as may be allowed by the Commissioner; and - payment of the penalty on that part of the goods that has not been satisfactorily exported (4) Treatment of transit goods stolen or lost by accident W16h.ere goods are stolen or lost whilst in transit due to circumstances EACCMR beyond the control of the owner, then no penalty is to be raised. The bond 104(18) can be released upon the payment of duty in respect of that portion of the and goods. 104(19) W17h.ere transit goods are duty free a penalty is still raised for failure to account for the goods or to export them in time. The penalty is this case will be equal to the security given respect of those exported goods. T1r8a.nsit goods which are either restricted or prohibited goods which are not exported within the transit period allowed become liable to seizure and Page | 379

must be immediately seized as soon as they are found or presented. (5) Out of time transit goods eventually found and presented for export T1r9a.nsit goods which not accounted for or which are exported out of time are treated as outlined above. T2r0a.nsit goods which fail to leave the country within the allowed period and in respect of which a penalty or duty has been collected as a result, but are eventually found and presented for export, are to be treated as ordinary re- exports. I2n1t.his case no reference should be made to the original transit entry as that entry would have been concluded when the penalty and duty were collected. However, the new re-export entry must be boldly endorsed \"Not to be taken into statistics\". (6) Security and deposits for trans-shipment T2h2e. principles outlined above for treatment of security and cash deposits apply mutatis mutandis to trans-shipments. Page | 380

CHAPTER 18 CUSTOMS WAREHOUSING PROCEDURES Goods listed here below may be Warehoused in a Customs Warehouse: EACCMA - Seized goods s. 2(1), 43 EACCMR 87 - Unclaimed goods - Un-entered goods - Goods for which release has been withheld by the proper officer for any reason. - Goods removed from licensed bonded warehouses. - Abandoned and derelict goods. - Any other goods, if the proper officer so requires. 1. Removal of goods into a Customs Warehouse Goods that are entered but not released or delivered from Customs EACCMA control or which remain uncollected are liable for removal to the s.34(4) Customs warehouse. The date for removing the goods into a Customs warehouse shall be any date determined by the Proper Officer provided it is not earlier than the 21 days after their arrival at the frontier or from the date of commencement of their discharge from the ship. The 21 day period may be extended by the Proper Officer. Where the EACCMA period is not so extended the goods must be removed to the Customs s. 34 warehouse. Note: In the determination of the date of commencement of warehousing, including in the calculation of the days in respect of which Customs warehouse rent is charged, Saturdays, Sundays and Public holidays are not counted. Page | 381

Baggage to be deposited in the Customs warehouse are: - Baggage not released on account of duty not paid or import permit not produced; - Crews' baggage left with Customs during a change of ship; - Baggage left on board ship and surrendered by shipping companies; - Imported goods deposited as travellers' baggage pending re- exportation within a period of not more than two months. Sufficient copies of deposit notice in Form F.89 are to be filled with a copy to traveller, another fixed to the goods as a stack card and one remaining in the book. Baggage for deposit in the Customs warehouse is to be removed thereto without delay. Where the baggage is of considerable value it should be removed into a safe. There must be no delay whatsoever in the removal to safe custody of goods for deposit and in no circumstance should they be handed into the care of another officer without a proper hand-over take-over procedure. 2. Procedure for depositing goods into the Customs warehouse Goods should be deposited into the Customs warehouse during office hours with enough time for the warehouse officer to take over the goods. Under no circumstances are goods intended for removal into a Customs warehouse be kept in offices overnight or during the lunch hour pending such removal The Customs Warehouse Keeper or a member of his staff must always be included in the list of staff ordered to attend the examination of travellers' baggage after office hours. Whenever possible the opening up of the Customs Warehouse is to be undertaken by a member of the Customs Warehouse staff. If circumstances are such that an officer other than the Customs Warehouse Keeper opens up the Customs Warehouse then such opening must be supervised by the officer-in-charge of the operation and the officer who opened the warehouse must make a full written report to the Customs Warehouse Keeper on the next working day. 3. Procedure for handling high value articles in a Customs Warehouse High value articles such as jewellery, to be deposited or left in Customs custody must be fully described on the Form F.2 and sealed up. Mina, ambergris and similar goods are to be weighed and the weight endorsed Page | 382

on the notice. The endorsements must be authenticated by the officer’s signature and date thereof. These high value articles must be deposited into a safe or strong room against an acknowledgement of receipt by the officer in-charge of the safe or strong room. 4. Care of goods left in Customs custody Accompanied baggage should not be accepted into the Customs Warehouse unless there is a Customs interest in the goods. However, travellers, who, for example, fail to raise the required deposits to secure the re-export of goods, may be allowed to deposit their goods in Customs safe deposit boxes and keep the key, provided a list of the goods is placed inside the box and the repacking is done under close Customs supervision. In such cases officers must be vigilant to prevent, in particular, travellers from secretly retaining small articles on their persons whilst repacking and, in general, disappearance of any traveller’s goods through pilferage or negligence. Severe disciplinary action should be taken against any officer who fails to exercise the utmost care and integrity in dealing with traveller’s goods deposited into Customs custody. Every officer must, therefore, continually be on his guard to prevent the loss, theft or disappearance of any goods which have not been released or which have been left in his care. 5. Unclaimed, un-cleared or abandoned baggage The Airport or Port Authorities are responsible for delivering all un- cleared or unclaimed baggage into Customs custody where they are entered in the unclaimed baggage register. The baggage will only be released from the Customs warehouse after clearance, payment of all charges, including any Customs warehouse rent and against the owner’s signature in the register. A traveller who does not wish to pay duty on imported goods may be EACCMA permitted to abandon the goods provided the goods were properly s.56(1)(a) declared. 6. Handling Cases of Attempted bribery If an attempt is made to bribe an officer so as to induce him or her to omit or commit any action for the benefit of the traveller, a full report is to be made to the senior officer in charge of the station, the baggage being detained until that officer decides on the action to be taken against that person. Page | 383

7. Application for extension period of unaccompanied baggage The applicant should state in the application:- - The date and place of his arrival in the Partner State; - Mode of travel (i.e. whether by air, sea or road). - Applicants who arrive by air or sea should state the name of the ship/flight, voyage/flight number and date of arrival; - Particulars of the baggage in respect of which the extension is sought and the reasons why the baggage was not imported within the prescribed period, or as accompanied baggage by the owner. Note: Extensions may be granted if the designated senior officer is reasonably satisfied by questioning, or by the inspection of his or her passport and other evidence, that the date of arrival of the traveller is as claimed and that there are valid reasons for the delay in shipping the traveller's baggage. 8. Clearance of unaccompanied baggage The owner of any unaccompanied baggage may appoint an agent to sign the form on his behalf, but the agent's written authorization must be produced with the declaration in every case. The appointment of an agent under this paragraph must not be confused with the authorization to clear the baggage given in the baggage format of the Form C17 in box 5. Unaccompanied baggage may be entered for home use Unaccompanied baggage may be removed into a bonded warehouse against an imperfect entry without examination. However, at the time of perfecting the entry or entering the goods for EACCMR home use using Forms C17 or C17B, a full internal examination is to be 48 made before the baggage is released for home use. As a general guideline, the internal examination must be undertaken on at least half the consignment. However the number of packages opened may be reduced at the discretion of the examining officer, particularly in respect of unaccompanied baggage supported by detailed packing lists and other documents describing the contents of thereof. Owners of the unaccompanied goods or their agents may be permitted to their baggage in order to enable them to claim an exemption or complete the Customs clearance. The Form C17 for unaccompanied baggage on which a 5th Schedule Page | 384

exemption from duty is claimed must be endorsed with details of the owner's arrival, e.g. as follows \"Property of Mr. A. B. who arrived at (place) on flight 123 of 1/1/2010\" The arrival of the traveller must first be verified by reference to the respective passenger list and passport. (1) Unaccompanied baggage entered for removal in transit or transhipment Provided the baggage is sighted and the marks and numbers agree with EACCMA the details on the entry and all packages are found to be secure, no s.20 internal examination is necessary unless there is reasonable belief that the baggage contains prohibited goods. Unaccompanied baggage on transhipment need not be examined under any circumstances. Officers must merely ensure that the normal procedures and precautions to prevent goods being diverted for home use are enforced. (2) Unaccompanied baggage forwarded by post The prescribed Form C17 is not required in respect of unaccompanied baggage imported by post. Normal procedures for handling postal importations should be followed (refer to Chapter 15: Postal Clearance procedures) (3) Physical examination and clearance of unaccompanied baggage As with all physical examinations, care must be taken to protect the officer from any harmful articles or substances contained in the baggage. Delicate goods such as glassware and crockery must be handled with particular care. In the event of prosecution for false declarations, the declaration Form C17 will be required as important evidence. Accordingly, this declaration must be properly and legibly completed. Declarations which are incomplete or incorrect in any material particular must be rejected. (4) Date of Warehousing Unclaimed travelers’ baggage or 24 hours of its landing but rent baggage deposited into the starts accruing only after 7 days. warehouse against a Form F.2 at the request of the traveler. Goods entered for removal in 30 days from the day goods were transit or for transshipment but entered for transit or when the which are not so removed. transshipment was to take place. Page | 385

(5) Customs Warehouse Rent The payment of Customs warehouse rent shall be charged at the rate of EACCMR USD 0.3/m3 per day. 84 a. Waiver of Customs Warehouse Rent The Commissioner may waive the whole or any part of the rent EACCMR charges on goods under Customs warehouse. 85 Rent waivers should only be considered in exceptional or Refer to extraordinary circumstances such as those outlined in the Annex I. Annex I Customs Warehouse Waiver may only be considered or granted on the following conditions: - An application made to the commissioner Customs requesting for a waiver in Customs form F.28 - Applicant must be fully compliant with tax and Customs obligations before waiver processing commences. - The amount of rent payable shall be limited to the amount that will have accrued at the time of receipt of the application for waiver. In other words, rent stops accruing on the date the application is received. Rent waiver shall be granted for a period of 14 days. Further periods may be considered on fresh application and may be granted if circumstance warrants it. Where an application for rent waiver is rejected, full rent will be due and payable. b. Procedure for Applying for a waiver The following procedure must be followed for processing applications for waivers: - All requests for rent waiver must be made in writing. - Thorough vetting of all applications and supporting documents must be undertaken to weed out undeserving cases. - A copy of the template indicating how rent waiver was calculated must be attached to each application. - Monthly returns of waivers must be submitted to the Page | 386

Commissioner’s office. - Appeals against payment of rent must be submitted to the Commissioner who may consider waiving. (6) Warehousing Procedure in Respect of Different Modes of Transport The port authority will notify the proper officer of the date on which a ship commences discharge if discharge does not commence on the day of the ship's arrival. On the twenty first day after the commencement of discharge, the port authority must submit a list of packages remaining un-entered. Upon receipt of the list the proper officer determines the Customs warehouse date. A register with the following headings must be maintained in the Customs warehouse to record the following details in respect of the warehoused goods: - Ship's name - Rotation - Date of arrivals - Date commenced unloading - Twenty first day after arrival - Date of first request to the port authority - Date of return of request from the port authority - No. of packages to be removed - Date of second request - Date ordered to be removed - Date goods removed - Actual Customs warehouse date - Remarks Page | 387

9. Want of Entry Lists In an automated environment the warehousing of manifested cargo is aided by Want of Entry Lists generated by the Customs clearance system. This is the list of consignments that remain un-cleared after the statutory 21 days. These lists are forwarded to the port authority as instructions for the delivery of the goods to the Customs warehouse. (1) Manifest Reconciliation At the Manifest Reconciliation Unit, the marks and numbers and other details of goods on the Want of Entry Lists are matched to the details on the inward report. Any consignments that may have been cleared in the interim are struck off the lists and the relevant entry details inserted before the lists are forwarded to the Customs warehouse keeper. (2) Procedure in a Customs Warehouse When goods and the Want of Entry Lists are received at the Customs Warehouse, the Customs Warehouse-Keeper must: - Acknowledge receipt of goods on the Want of Entry List, retaining the original and returning any copies to the port authority. - Verify the authenticity of the entries endorsed on the Want of Entry List in respect of the consignment struck off from the lists by the Manifest Reconciliation function - Identify consignments that are too large to be physically removed to the Customs warehouse so as to endorse them on the Want of Entry List. (3) Goods sighted and deemed to be warehoused Any delays between the Customs Warehouse date and the physical removal of the un-entered goods to the Customs Warehouse must be promptly followed up. (4) Delivery of Goods Listed on Want of Entry List Goods on Want of Entry Lists may be released from the Customs warehouse upon: - Entry on the appropriate Customs declaration. - Payment of rent and issuance of the receipt. Page | 388

The Customs Warehouse-Keeper is responsible for ensuring that every item is satisfactorily accounted for, and that the Want of Entry List for each ship is properly balanced. Thus, when any goods are sold or destroyed, the Want of Entry Register and list are to be suitably cross- referenced to the relative sale list or destruction certificate, as the case may be. Whenever possible, certificates of destruction are to be filed with the Want of Entry List. 10. Collection of Rent EACCMR 86 No goods are to be delivered from the Customs Warehouse until rent has been paid. All rent is to be collected on the basis of the weight and measurement shown on the Port Release Order. In cases of doubt, the Customs Warehouse-Keeper is to re-measure or re-weigh the goods. 11. Waiver or Refund of \"In situ\" Customs Warehouse Rent In respect of cargo warehoused \"in situ\" rent collected thereon may be EACCMR waived or rent due waived at the discretion of the Commissioner. 85 Customs warehouses rent payable in respect of goods stored or deemed EACCMA to be deposited in a Customs warehouse shall be deemed to be \"duty\". s. 144 Accordingly application for refund of Customs warehouse rent must be made within 12 months from the date of payment. 12. Receipt of Goods into Customs Warehouses The Customs warehouse-Keeper must: - Examine all goods to ensure that the correct goods are received and that the packages are all intact. - Arrange for repair of damaged packages before accepting them into the warehouse. - Undertake full internal examination of each package and report findings in the appropriate warehouse register. - Weigh all bagged foodstuff (such as bags of rice, wheat, wheat flour, onions, etc) and record the gross weight in the register. Any loss in the weight in Customs warehouse prior to removal for sale is to be investigated and reported immediately to the proper officer. Page | 389

(1) Records 1. The Customs Warehouse-Keeper is to record the required details in the appropriate registers as shown below: Type of Goods Particulars to be Appropriate Register Un-entered cargo Obtained from: Want of Entry List (F.27) Want of Entry Register (No.16) Seized goods Seizure Notices (C.37) Seizure Register (No.4) Deposited goods Simplified Declaration Register of goods deposited Customs Form (F.3) warehouse (No.1) Unclaimed luggage Cargo Receipt (F.10) Register of Unclaimed and Abandoned Goods (No.3) Bonded goods Cargo Receipt (F.10) Register of Bonded Goods removed to a Customs Warehouse (R.18) removed to Customs Warehouse in default of re-warehousing etc. Abandoned goods Examination Report Register of Unclaimed and Abandoned Goods (No.3). Register of Postal Packages for Re- exportation. (No.17) Postal packages for Advice from Customs Register of Unclaimed and Abandoned re-exportation Officer concerned Goods (No.3). Register of Postal Packages for Re- exportation. (No.17) 13. Release of Warehoused Goods (1) Un-Entered Cargo Un-entered cargo in the Customs warehouse is to be cleared as originally declared or intended at the time of landing. Thus goods may only be entered for transit or transshipment if that is what was originally intended. Page | 390

(2) Deposited and Unclaimed Baggage Deposited and unclaimed baggage may be released to the traveler or his agent upon payment of any duties due on a receipt. The owner of the goods must surrender the original deposit receipt (Form F.2). If the original F.2 cannot be produced the owner must sign for the goods in the fast or office copy of the Form 2. Additionally the owner must sign the following indemnity note which is to be filed with the office copy of the Form.2. 14. Preconditions for Releasing Goods from a Customs Warehouse (1) Seized Goods Seized goods must not be released without the written authority of the Commissioner or other designated senior officer, which authority must be recorded in the appropriate Seizure Register and filed in the appropriate file. (2) All other Goods Any other goods deposited into a Customs warehouse may be released upon production of an ex-warehousing entry by the owner of the goods. - A proper ex-warehouse home use or export entry duly passed (in respect of previously bonded goods removed to Customs warehouse in default of re- warehousing). - Proof of acceptable Customs clearance. - A delivery order issued by the licensee of the bonded warehouse in which the goods were originally warehoused or the port authority (whichever may be applicable) indicating that any storage and handling charges have been fully settled. (3) Goods Abandoned after Being Entered An importer may apply for abandonment of goods already entered and a refund of the EACCMA duties paid. The application may be considered on the following conditions: s. 56(1) and 248 - The application is made in writing. - The goods are still under Customs control. - The goods are not subject to any prohibition or restriction. - That all monies due to other persons, such as freight, handling charges, rents, etc have been fully paid. Page | 391

- The owner of the goods undertakes to cover the costs of disposal of the goods. (4) Disposal of Abandoned Goods Where a refund of duty paid on goods to be abandoned is claimed, and if it is intended to dispose of the goods by public auction, then the expected proceeds must be enough to cover the duties due on these goods. Where the proceeds are likely to fall short of the duties due or where the goods are no EACCMA longer in a saleable condition the commissioner may order the goods to be destroyed . s 56(2) or disposed of in the manner he/she deems fit. (5) Abandonment of Miscellaneous Loose Items Loose items that fall out of broken packages, e.g. tinned fruit, beverages, soap, etc frequently remain uncollected by their owners. In such cases, the port or airport authorities or other handling agents, as the case may be, must submit a list of all such articles to Customs. The goods are then transferred to the Customs warehouse using the list as the source document for recording the goods in the Customs warehouse register. These articles may be released to the respective owner/carriers subject to the following conditions: - The carrier’s agent (such as ship’s agent) must submit a list of such goods for each vessel. - The list must specify for each article, description, value and duty payable thereon. - Duty must be paid on a receipt. If the goods remain uncleared, they are to be sold by auction as un-entered cargo after EACCMA a period of 30 days from the date of receipt into the Customs Warehouse. s. 42 (6) Customs Auctions Goods deposited into a Customs warehouse may be auctioned subject to the following EACCMA conditions: s. 42 - The goods remain uncleared after 30 days from the date of their deposit into the warehouse. - A 30-day gazette notice of the impending sale is given. - The notice must indicate that failure by the importer or his agent to clear Page | 392

the goods within 30 days shall be deemed as abandonment of the goods. a. Pre-Conditions for Disposal i) Seized Goods Seized goods may be sold: - One month from the date of seizure if no claim in respect of the goods is received. - Whenever a condemnation is made at the conclusion of the necessary due process following seizure of the goods that are the subject matter of an offence. - After the expiry of the two-month period granted to the owner to institute EACCMA proceedings for the recovery of the seized goods. s. 216(3) Seized goods in respect of which a prosecution is underway may not be sold or EACCMA otherwise disposed of before the conclusion of such court case or any appeal lodged s. 215 against the court decision. Likewise, where an appeal to the Council for the restoration of goods is still pending EACCMA such goods must not be disposed of. s.218 Restricted goods may only be auctioned or otherwise sold to persons licensed to import or deal in such or similar goods. b. Abandoned, Unclaimed, Unentered Baggage i) Animals and Perishables The Commissioner may authorize the sale of animals and perishables without notice EACCMA of sale and at any time after deposit in the Customs warehouse. Such a sale may be by s.42(1) way of public auction or private treaty. The following types of goods are always to be considered as perishable and the Customs Warehouse-Keeper is to immediately report their deposit into the Customs warehouse to the Proper Officer: - Fruits, vegetables and meat. - Wheat, wheat flour and ration goods. - Provisions and confectionery other than provisions and Confectionery properly packed in airtight container. - Cigarettes, cigars and tobacco in small cartons or packets. Page | 393

- Any other goods deemed perishable by the Proper Officer. EACCMR 64 ii) Firearms and Ammunition - Firearms shall be disposed of in accordance with the directions of the Commissioner Customs in consultation with the Commissioner Police. c. Rules for Conducting Customs Auctions The following conditions of sale must always be read out by the auctioneer at the EACCMR beginning of every Customs auction sale. 207 The highest bidder shall be the purchaser and no bid made shall be retracted. The auctioneer may refuse any bid and may withdraw any lot from the sale. - The making of a bid implies acceptance by the bidder of the conditions of sale. - The auctioneer may set a minimum amount or the reserve price on any goods below which he will not accept bids. - In the event of any dispute arising, the auctioneer may, at his discretion, resell or withdraw the lot from the sale. - No warranty is given regarding quality, packing or any other particular and no claim will be accepted due to any error of appearance or description. - Should there be any discrepancy between the quantity stated in the sale list and the actual quantity available the Customs shall not be bound to deliver more than the quantity available for delivery. - All sold goods shall remain in the warehouse after the sale at the purchaser's risk and expense. - Purchasers shall have three days free from the date of the sale in which to remove EACCMR their goods. Any goods remaining in the Customs warehouse after that period 207(9) shall be charged rent from the date of sale until so removed provided that where they are not removed from the warehouse by the date of the next auction the transaction will be declared invalid and the goods resold at that auction. In such circumstances, the original purchaser may claim a refund of the purchase price less any non-returnable deposit, rent and charges due and the difference between the first and second sale prices in the event of the latter being lower. - Customs shall not be held responsible for any damage which occurs to EACCMR goods during their removal from the warehouse by the purchaser, or his 207 (11) agents. Page | 394

d. Withdrawal of Goods Prior to Sale Goods which have been advertised for auction may be withdrawn by the Commissioner subject to the following procedure being followed: - If the owner of any goods advertised for auction wishes to have such goods withdrawn from the sale he shall, in not less than seven days before the date of the sale, apply in writing to the Commissioner. - If the Commissioner is satisfied that failure to clear the goods was due to circumstances beyond the control of the owner, he or she may withdraw the goods from the sale on payment by the applicant of any Customs warehouse rent which has accrued and other charges which have been incurred up to the time of delivery. - Although shipping companies come within the definition of owner in respect of goods imported on their vessels, once goods have been sold by auction they are not entitled to the net proceeds resulting from the auction of such goods. - However, before the goods are auctioned the shipping companies, as beneficially interested persons, are entitled to enter the goods and thereafter deal with them as they see fit. - Requests received from shipping companies for the withdrawal from sale auction of such goods pending investigation into their disposal are not, however to be entertained. - Bids for goods offered for sale at any Customs auction may be accepted from anybody and the auction of such goods is not to be restricted to any particular class of trade except in the case of restricted goods. - Under no circumstance may any employee of Customs personally bid for any goods at a Customs auction. Goods which have been withdrawn for sale in the absence of any bid may not be acquired by any officer. Such goods should at the discretion of the Commissioner, after proper review of the reserve price, be re-offered for auction at the next sale or destroyed under Customs supervision. e. Notice of Goods due for Sale The notice of sale is to be given in the government gazette. The list of goods to be EACCMA auctioned must be included in the gazette. s.42 EACCMR 206 Page | 395

In the auction lists, unclaimed cargo, seized goods, unclaimed baggage, bonded goods EACCMA to be sold in default of re-warehousing etc. and abandoned goods are all to be shown s. 243 separately. For each item on the list, the following particulars are to be shown: EACCMR 207(1) - Customs Warehouse date of importing vessel or aircraft, truck and wagon. - Ship's -name , aircraft, truck and wagon registration no. - Place whence ship , aircraft, truck and wagon arrived. - Rotation No. and date of arrival - Marks and numbers and owner (if known) - Description (the description must be definite; vague terms like \"merchandise\" are not to be used). Three days prior to the auction, a notice giving a list of the goods for sale prepared by EACCMR the Warehouse keeper is to be widely circulated by all means possible to anyone who 206 may be interested in the auction. f. Value and Reserve Prices Valuation Officers are to be invited to assess individual values of each one of them in the list. The full C.I.F. invoice price is normally to be taken as the value for Customs purposes and duty calculated on this amount in the case of goods liable to ad valorem duty. If the goods have deteriorated in any way the value may be adjusted accordingly. A similar calculation of value is to be made in respect of goods liable to a specific rate of duty and the duty will be assessed on the quantity in the normal way. Goods for which no invoices are available will be valued by the Valuation officer based on experience or by reference to invoices for identical or similar goods previously imported. g. Reserve Price The reserve price is to be fixed at a reasonable level taking into account the value of EACCMA the goods and the duty thereon. The reserve price should be the minimum price at s.53(3) which the valuation officer considers the goods should be sold. For example, goods valued at USD120 (C.I.F) and liable to duty of 25% ad valorem should be sold at EACCMR USD155. However, taking into account the type of goods and circumstances of sale, 207(4)(5) the valuation officer may consider that they will fetch only USD100 and that amount Page | 396

will therefore be the reserve price. If the reserve price of the goods is not realized at the auction, then the goods are to be EACCMA withdrawn from the sale. The reserve price is to be revised by the valuation officer s.57(5) and offered on the next auction. In every case, the reserve price must not be less than duty payable on the goods. Values of goods and reserve prices are confidential and must not be disclosed to bidders or members of the public or officers other than the auctioneer. Even the auctioneer will only be availed with the values just before the auction takes place on the auction day. h. Sale of restricted goods Goods subject to any commodity control may only be offered for sale in accordance with the written instructions of the authority responsible for administering such controls. The auctioneer should ascertain the conditions for disposal from the regulating EACCMA authority and should explain such conditions prior to offering the lot. When the s.243 regulating authority suggests that the goods be sold at a contracted price to a certain firm or person, the lot should be withdrawn and may only be delivered to the person directed after payment of the controlled and directed price. Whenever possible, several qualifying persons must be nominated to participate in the sale to ensure competitive bidding. i. Application of Partner States legislation to auctions All auctions shall be subject to Partner States’ laws governing auctioneers and the EACCMA conduct of public auctions. s. 243 j. Disposal of Proceeds of Sale Proceeds of any goods sold at a Customs auction must be applied in the following EACCMA order: s. 42(4) and 57 • Import duties This includes Customs duty, excise duty and any levies that may be in force at EACCMR the time of sale. 207 • Expenses of Removal and Sale These include all handling and transportation charges, bonded warehouse EACCMA storage, auctioneer's commission, etc. The rate of the auctioneer’s commission s.243 varies with the value of the goods as provided under the national legislation of EACCMR Page | 397

the respective partner state. 207 • Port Charges Any amount remaining after the above obligations are fully settled is paid to revenue. However, where goods were not restricted or prohibited and/or where the importer has EACCMA not committed any offence, the amount remaining shall be paid to the importer on 42(5) and application provided the application is received within 12 months from the date of 143(2) sale. Page | 398

ANNEX I: TO CHAPTER 18 CUSTOMS WAREHOUSE CERTIFICATE FOR WAIVER OF CUSTOMS WAREHOUSE (CW) RENT (F.28) Importer’s Name PIN Particulars of consignment Vessel’s Date CW Description of Quantity Number Rate of Total Name of Date Goods & Arrival (Weight/ of Days Rent CW Voyage Volume) Rent number Date of Application for Waiver Customs Entry number and Date Number of Times Similar Application was Made Importer’s Tax Compliance Level Total Customs Warehouse Rent Due Customs Warehouse Rent Waived Customs Warehouse Rent to be Paid Page | 399

Commissioner for Rejected Name ……………………. Customs Approved Date …………………….. Recommended Signature …………………….. Commissioner General Rejected Name …………………….. …………………….. Approved Date …………………….. Recommended Signature Page | 400