FINAL DRAFT PROCEDURE MANUAL - KAMPALA

Annex II to Chapter 18: Extent of Waiver of Rent Customs warehouse rent, to the extent indicated may be waived on the basis of proven mitigating factors outlined below: Factor Extent Rationale of Waiver Act of omission/ commission by 100% Act of omission or commission by Customs or any other Government Customs e.g. where Customs took too agency 100%. long to make a decision on disputed classification or valuation etc, or delayed in processing entry. Death of importer (i.e. natural person 100% The importer dies before his/her not a company). consignment is cleared. The EACCMA already provides for exemption from import duty for goods belonging to a deceased. Economic hardship due to natural 100% Hardship occasioned by events that calamity or delay in clearance due to occur naturally e.g. earthquake, floods civil strife. etc i.e. an act of God or due to civil strife. Goods not cleared because of national 100% The country of destination of the goods or international embargo. is subject to international trade embargo or the importer is subject to an embargo. Goods imported by UN body or 100% Goods belong to a United Nations Foreign Mission accredited to a agency or foreign mission accredited to Partner State. a Partner State and who are not liable to pay import duty. Goods subject to court case (order 100% Goods subject to a court case where issued in agent’s/importer's favour). Customs is party to the suit and the matter has been determined by the court in favour of the importer/agent with specific orders to waive the Customs warehouse rent. Goods subject to court case. 40% Goods subject to court case where Customs is party to the suit but the importer/agent loses and no specific orders are issued in regard to Customs warehouse rent. Page | 401

Goods subject of seizure. 30% Goods subject to seizure and matter compounded and goods released to Goods subject of exemption by 50% owner/agent. treasury, delay due to processing of exemption letter. Goods subject to exemption by treasury but processing of the application letter Goods not cleared because of 30% for exemption delayed by treasury. owner’s sickness. Delay in clearance because the owner Goods not cleared because of loss 5% (in the case of an individual/sole of documents. proprietor) fell sick. Goods not cleared because of 20% Delay in clearance because of loss of delay caused by third parties. documents by the owner/clearing agent or mis-posting of documents by the Goods not cleared because of 20% shipper or shipping agent. inadvertent error. Delay occasioned by wrong advice to Goods not cleared because of 50% importer by the agent or mishandling of reasons beyond the control of the documentation by the clearing agent. importer (force majeure). Goods not cleared in time because of unintended mistake made by the importer or clearing agents. Goods not cleared in time because of factors totally beyond the control of the importer (force majeure), where such factors are in the public domain. Page | 402

ANNEX III to Chapter 18 CONTAINERISATION Containers Characteristics of Containers Containers are constructed of very strong and solid metal and have folk lift holes, attachments for hooks, grabs, etc. which allow them to be lifted, moved or bolted down. The ribbed structure of the container increases its strength. Containers are standardized into two sizes viz. 6,096 metre long (known as 20 foot container) and 12,192 metres long (known as 40 foot container). Apart from the limitations that apply to size, containers are also restricted in terms of the weight they may carry. Each container has a metal plate fixed to it on which is stated both the tare mass, i.e. the mass of the empty container, and the gross laden mass. The plate rating varies according to the make, specification and age of the container. Compliance with the stated limits is monitored by the shipping lines and sometimes by local transport regulators. Each container has a unique identification number such as MSCU 123456 7. It is possible from this number to identify the owner of the container as follows: • MSCU Alpha code of the owner • 123456 Unique serial number of the container •7 Check digit validating owners code and serial number Types of Container Loads The following are the three types of container loads: LCL Container Load The abbreviation LCL means “Less than Container Load”. An LCL container load is one that is loaded with goods from one or more suppliers and consigned to more than one importer. Such a container has to be delivered to a Container Depot. An LCL service enables those shippers whose consignments are not substantial enough to constitute a Full Container Load (FCL) to still benefit from containerization by sharing the container space with a Page | 403

lot of other shippers. Shipping lines will arrange the consolidation of different shippers’ small consignments into an FCL container as long as the various products are compatible and the final destinations are all in one area or country. Page | 404

This consolidation will normally take place at a Customs licensed container depot or a warehouse with facilities for loading/unloading containers. On arrival at the destination port, the container will be unloaded at a local Customs licensed depot by representatives of the shipping line. The various importers involved will be informed of the arrival of their individual consignments and will individually clear their goods. FCL Container Load The abbreviation FCL means, “Full Container Load”. The goods packed in this container maybe from one or more suppliers but are consigned to one importer. Such a container may be cleared and collected by the importer from a Container Terminal. The FCL service is ideal for the shipper who has sufficient cargo to meet either the weight or the volumetric limitations of a 20 foot or a 40 foot container. Arrangements will usually be made for an empty container to be delivered to the shipper’s premises where cargo will be loaded into it and the container subsequently sealed. The full container will then be collected and conveyed to either an inland or port Container Terminal from where it will be shipped to its final destination where the owner will be notified for its arrival so as to effect Customs clearance. FCL (GROUPAGE) Container Load The container load differs from the FCL described above in that it is one where a freight forwarder (groupage agent) abroad consolidates various consignments belonging to different importers into one container. The groupage agent then consigns the container to his associate in the recipient country or area. The FCL (Groupage) container may thus be seen as an LCL that is transported from terminal to terminal as an FCL container. In this case although the consignments are destined for more than one importer they are in fact consigned to one person (groupage agent) and are, therefore, eligible to be delivered to a Container Terminal instead of a Container Depot. After due clearance of all the consignments the container is delivered from the Container Terminal to the local groupage agent’s premises from where the cargo will be distributed to the different importers. Some shipping lines follow the practice of stuffing cargo, which would normally be carried exposed on the vessels deck, into empty containers carried on board the vessel. A container destined to a port but stuffed in this way must always be landed empty and the goods landed as break bulk. There is no reason to object to this practice as long as the cargo and all the documentation thereto, retain its status as break-bulk cargo. Page | 405

Inland Container Depot Traditionally, container terminals and container depots are established at harbours or in the vicinity thereof. However, it is also permissible for these depots and terminals to be established inland. Containers may thus be removed in bond from the harbour to an Inland Container Deport. Dry Ports A dry port is a rail terminal located in an industrial and/or commercial centre providing a direct rail link with one or more container ports. It is served by dedicated container trains with the import/export cargo being cleared by Customs at the dry port and usually has all the facilities provided by a seaport such as cargo-handling, warehousing and open air storage, port documentation and clearance services, shipping and insurance arrangements, Customs clearance and cargo consolidation. Dry ports are usually managed by the rail and port authorities who contract out all the services offered. A great advantage is that they eliminate the need to have agents at the port to handle the shipper’s cargo. Container Operators A Container Operator is any person or organisation providing international transportation of containerised goods. Approved container operators are liable for the duty on goods imported in containers operated by them. This liability for duty commences when the master of the carrying vessel delivers the containers to the container operator. In cases where containers are not controlled by approved Container Operators, they may only be removed from the terminal of discharge under cover of a bond. Containers controlled by approved container operators may be removed without being entered. Container Terminals and Container Depots Container Terminals A container terminal is a dedicated area in which containers are transferred from one transport mode to another, e.g. from a ship to a railway wagon or road vehicle/trailer. Terminals require special container handling equipment, as well as sufficient space in which to stack containers awaiting onward transportation or Customs clearance. The container terminal may be controlled by the ports and harbour authority but the liability for duty on the containerised cargo passing through the port remains with the container operator. As container terminals are basically transit areas, no provision is made there Page | 406

in for the unpacking or examination of the contents of containers. Accordingly, only “tailboard” inspections will be normally be permitted. FCL and FCL (Groupage) containers may be delivered direct to importers and groupage agents respectively, from the container terminal provided Customs authority is granted for unconditional release. Where it is necessary for any reason whatsoever to unpack the contents of these containers before Customs can authorize release, the containers must be delivered to the container depot for unpacking. LCL containers are in all instances delivered direct from the destination terminal to the container depot. Container Depots The primary function of a container depot is to consolidate small break bulk consignments destined for the same area or country (but originating from a variety of different sources) into full container loads and, in the reverse, to de-stuff containers which house a variety of cargoes intended for different local importers. Container depots are therefore established for the following purposes: • Storage • Detention • Unpacking • Examination of containers or the contents of containers • For the delivery to importers of the contents of containers after such contents have been duly entered or • For the packing of containers for export The person in charge of a container depot is known as the Depot Operator. The Depot Operator’s liability for duty on goods packed in the container starts when the Container Operator delivers the goods to the depot. This liability ceases once the goods have been cleared or otherwise satisfactorily accounted for. Due to the liability for duty, depot operators have to be covered by a general bond drawn in favour of the Commissioner to cover the duty at stake at any one particular time. Summary of Liability for Duty on Imported Goods The Master’s Liability The master of a ship is liable for the duty on any imported goods transported in containers aboard a vessel under his control. This liability ceases when he Page | 407

delivers the containers to the container operator. The Approved Container Operator’s Liability Approved container operators are liable for the duty on goods imported in containers operated by them. This liability for duty commences when the master of the carrying vessel delivers the containers to the container operator. The container operator’s liability for duty ceases: • In respect of containerised goods manifested for a container terminal (FCL) upon lawful delivery thereof to the importer or his agent after due entry has been made. • In respect of goods in containers manifested for direct delivery to a container depot (LCL), upon delivery thereof to the depot operator. • In respect of containerised goods manifested for a container terminal (FCL) of which due entry has not been made, upon delivery thereof to the Customs warehouse or other place indicated for this purpose by a proper officer. The Depot Operator’s Liability The depot operator’s liability for duty begins on receipt of the container in the depot and ceases: • Upon lawful delivery thereof, after due entry has been made, to the importer or his agent. • In respect of any such goods of which due entry has not been made, upon delivery thereof to the Customs warehouse or other place indicated for this purpose by a proper officer. Important Shipping Documentation Master Bill of Lading The master of the ship issues these bills of lading to the container operator in respect of containers and its contents loaded on board the ship. These bills of lading reflect the “on board” particulars of the container(s) and its contents. Received for Shipment Bills of Lading These bills of lading are issued by depot operators in the country of dispatch, on receipt of the cargo for packing into containers. Although the date of issue of these documents can differ considerably from the date of shipment of the goods, they may be accepted as proof of shipment provided they are endorsed by the vessel’s agent to the effect that the goods have been placed on board and the date of shipment is indicated thereon. Page | 408

House Bills of Lading These bills of lading are issued by groupage agents on receipt of cargo at their premises in the country of dispatch and are in respect of FCL (Groupage) containers. The date of issue of these documents can also differ considerably from the date of shipment of the goods. House bills of lading may, however, be accepted as proof of shipment provided they are supported by a copy of the “on board bill of lading”, issued by the shipping line to the groupage agent. Non-Negotiable Liner Waybills In an attempt to expedite clearance of containerised cargo it was decided to recognize the use of non-negotiable liner waybills as an alternative to bills of lading in respect of containerised cargo on some routes. These waybills are not dispatched to importers but are retained by the shipper. The shipping company’s local representative receives particulars of consignments shipped under cover of these waybills electronically or other direct means. The consignee merely has to identify himself to the shipping company’s representative. Arrival Notifications As a result of the fact that non-negotiable liner waybills are not dispatched to importers, the operator issues “Arrival Notifications’ to notify the importer of the arrival of the goods. These arrival notifications must reflect all particulars necessary for Customs clearance purposes as well as the date of shipment. Forwarder’s Cargo Receipts and Forwarder’s Receipts These are receipts issued by groupage agents in respect of cargo to be consolidated by them into FCL (Groupage) containers. They are similar to house bills of lading. The ship master’s agent must obtain container lists and manifests from each of the container operators with containers on board the ship. The agent then delivers these lists and manifests to Customs at the port of discharge in order to control the movement of containers. These documents must reflect the full particulars of all goods shipped. Container Lists Container lists must, inter alia, reflect the following particulars: • Name of vessel and voyage number • Estimated date of arrival of the vessel • The container operator responsible for the containers Page | 409

• The terminal of discharge • Destination of the containers (terminal or depot to which they are to be delivered) Type of Service (FCL or LCL) The following lists are to be submitted to Customs in respect of containers manifested for direct delivery to a container depot serving the port of discharge (LCL): • A list reflecting the container serial number in alpha-numerical order with the bill of lading numbers relating to the relevant containers; and • A cross reference list reflecting the bill of lading numbers in respect of the consignment within each container in alpha-numerical order and the corresponding container number next to it. • Similar lists must be submitted to Customs in respect of containers manifested for delivery to importers from a container terminal (FCL). The list must, however, be in bill of lading alphanumerical order with a cross-reference list reflecting the container serial number in alphanumerical order. • Lists reflecting the container serial numbers in alphanumerical order must be submitted in respect of empty containers and containers for direct transhipment by ship from the port of discharge to another country. Separate lists are required in respect of: • Each terminal or depot to which containers are to be delivered • Containers for direct transhipment • Empty containers • Container manifests Container manifests must, inter alia, reflect the following particulars: • The container number and seal number • Name of the carrying vessel and voyage number • Place of loading and place of discharge • Type of service (FCL or LCL) Page | 410

• The bill of lading number • Details of each consignment in the container, etc Procedure for Dealing with Containerised Cargo that Remains Un-Cleared Uncleared LCL Containers The depot operator must remove the goods in these containers to the Customs Warehouse. Uncleared FCL (Groupage) Container As FCL (Groupage) containers are manifested for the terminal, the groupage agent must obtain “release authorized” bills of entry from the individual importers. The groupage agent must produce these bills of entry in respect of each individual consignment within the container to the container operator before delivery of the container to the groupage agent’s premises and distribution to the various importers. The full container must, however, be delivered to the depot for unpacking if one or more of the consignments within the container remain un-cleared. The individually cleared consignments may then be delivered from the depot to the various importers but the consignments, which remain un-cleared, must be removed by the depot operator to the Customs warehouse. Uncleared FCL Containers Un-cleared FCL containers are to be removed from the container terminal to the container depot for unpacking and removal of the goods to the Customs warehouse. Container Search and Inspection Container Inspection Container inspection and verification of seal status takes place at the container terminal on discharge of containers from the carrying vessels. As soon as the container is placed on the quay, the terminal operator checks the physical condition of the container as well as the seal status thereof. The outward condition of the container is noted on a Container Inspection Report. Where the seal is either broken or missing, the terminal operator re- seals the containers with the operator’s own seal whose particulars are noted on the Container Inspection report. Tailboard Inspection On receipt of a Container Inspection report which indicates substantial damage to a container or a seal discrepancy the container operator/importer Page | 411

or groupage agent, as the case may be, may at his own discretion arrange for a tailboard inspection. Tailboard involves opening the container doors to allow a view of the goods in the container. No unpacking of the container or examination of the goods at the terminal is allowed. The purpose of this inspection is to enable the container operator/importer or groupage agent to decide whether or not the container must be removed to a container depot for verification of the contents. If it is decided that verification of the contents of the container is necessary the container is re-sealed and the particulars noted on a “Container Re-sealed Report” which is retained by the container operator/importer or groupage agent who must then instruct the terminal operator to move the container to a container depot. If it is decided that verification of the container’s contents is not necessary, the container may, subject to the contents being cleared through Customs, be delivered to the importer/consignee. Selection of Containers for Search Containers should be selected for search on the following basis: Random Selection This could be a statistically selected percentage of containers, calculated in various ways e.g. 3% of each type of container. The container could also be selected according to local parameters or conditions, which could also vary. Another possibility is that an officer may decide to examine a specific container. Previous History This could be a container with a known history where goods were found concealed as a result of a previous search. Intelligence This reason for the examination of an empty general-purpose container will perhaps be the most productive. The information received could be as a result of a “tip-off” from the public or from other law enforcement agencies, other Customs administrations, WCO Enforcement bulletins or other international enforcement agencies such as Interpol. Further sources of information include transport companies, forwarding agents, other local services such as port health, etc. When deciding whether or not to select a container for search using these criteria, officers should ask following questions: • Is the normal shipping route being used? Page | 412

• Do containers using this port normally carry goods of that type? • Is the container being handled by usual port users e.g. transport company, consignee etc? Previous history and intelligence may be derived from a container file kept by Customs. To facilitate the development of useful intelligence, officers doing port patrol duties should keep in close liaison with the officers dealing with container targeting. Any suspicious activity such as the way containers are being loaded with regard to their weight, the behaviour of the crew and stevedores, the general condition of the containers and the numbering thereof and any unusual movement about the containers should be reported to the container targeting team. Using Transport Documents to Target Containers Transport document e.g. bills of lading, cargo manifests and freight notes are also used as a source of information in the selection of containers for search. They contain information concerning the type of goods being transported, the people involved with the transport of the goods, the origin and destination of the goods and the amount of freight paid. The bill of lading is the most important document in this regard. A bill of lading is a contract between the shipper and the shipping company for the conveyance of certain goods from a specified port to another specified port. The bill of lading serves the following purposes simultaneously: • A goods’ receipt which records that the carrier has taken charge of the goods. • A contract between the shipper and shipping company in which the shipper undertakes to deliver the cargo to its destination. • The original constitutes title of ownership of the goods and • In many countries also a Customs control document Should an officer wish to study a bill of lading before a vessel arrives, he would first obtain an advice of the arrival of vessels from the port authority. With this information the officer would then contact the shipping clerk responsible for the vessel that keeps the bills of lading made out for the specific port. Once the officer is in possession of the bill of lading, he would study the particulars relevant to the selection of a container for search. Areas to study are as follows: Shipper Page | 413

From the information available in this field, confirm the following: • That the shipper is not a suspect person e.g. from fraud bulletins, intelligence, previous history etc. • That the shipper is listed in the telephone directory and that his address corresponds. • That the shipper has not tried to conceal his identity by stating the name of a forwarding agent etc. Consignee The same verification process done for the shipper must also be done for the consignee. A bill of lading which does not contain a “notify address” should always be treated with suspicion. It is also necessary to verify that the goods imported by the consignee tie up with his business activities. Port of Loading The officer should ascertain from this information whether the goods are being loaded or discharged in a country known to be a source of drugs or other contraband or have trade relations with that source country. If this is the case then the containers could be selected for search. Description of Goods From this information the officer should verify the following: • Whether the goods being imported are comparable with the consignee (importer’s) business activities. • The nature of the goods being imported should be compared with the country from which they originate. Payment of Freight The freight could possibly be prepaid in order to shield the identity of the person fraudulently importing goods. Another possibility is that the freight costs are too high in relation to the type of goods being imported. Cargo Manifest This transport document is also used in the selection of containers for search. The cargo manifest reflects all the goods carried aboard a particular ship including empty containers. It will therefore include all the bills of lading, which have been issued for the particular voyage, and these details assist in the selection of containers for examination. Page | 414

Freight Note This document is a detailed list of all the freight charges and costs. Sometimes the expression “as arranged” or “freight prepaid”, etc is shown on a bill of lading. In these instances a freight note is issued giving a full breakdown of the freight costs and a comparison with other transport documents could prove useful e.g. the tariff description reflected on the freight note should correspond to that reflected on the bill of lading. To fully understand the techniques for searching a general-purpose container, it is important to first familiarise with the general construction of these containers and technical terminology used when referring to these containers and also certain other aspects pertaining to the container itself, which will be discussed now. 170-228 be moved to Examination of goods chapter. Basic Principles for the Search of Empty General-Purpose Containers Preliminary Actions Bearing in mind the danger of handling unknown substances and procedures to be followed when handling dangerous goods officers examining containers must first conduct preliminary checks: • SMELL Are there any unusual smells that may be intended to disguise drugs concealed in a container? • SIGHT Has any new repair work been done on the container? • HEARING Are there any hollow sounds which might indicate a hollow panel for concealment of goods? • TOUCH Test doors to ensure they have not been tempered with so they will open without breaking seals. Also, the officer should be aware of the value and identification number of the container. Operation likely to cause serious damage to the container should not be performed unless there is strong suspicion of fraud and permission has been sought from the officer in charge of the search. Guidelines on the Search of Loaded Containers and their Contents Under normal circumstances the search of loaded containers and their contents would take place at a container depot where the imported goods are stored pending release or goods loaded for export. There are however certain categories of goods which require special EACCMR facilities e.g. perishables, explosives or dangerous merchandise and certain 50 , 53 machinery which needs to be assembled before examination. In these special circumstances the examination would be conducted at the importer’s premises or another appropriate place e.g. a cold storage room in respect of Page | 415

perishable goods. Compliance with Safety Rules At all times during the examination of both the exterior and interior of the container, it is imperative to ensure not only that the search is systematic and thorough but also that not officer is exposed to any risk of injury. Accordingly, the following precautions must be taken to prevent accidents: • The examination must take place in a safe area normally used for examination of containers. • The correct protective gear must be worn e.g. hard hat, luminous jacket, gloves, etc. • Care must be taken when walking in areas where vehicles and/or containers are moving. Officers must ensure that they walk a safe distance away from these vehicles and also from containers, which are being stacked and must never walk underneath a container. • When examining the top and roof of a container, the ladders and/or gantries must firmly be secured and officers must never walk on the roof of a container. • Officers must at all times stand well clear when container doors are being opened to avoid being physically struck by the swinging doors or inhaling any chemical fumes that may be emitted from the container upon being opened. • A container should never be examined whilst being stacked on top of another container. All containers selected for search must be placed firmly on the ground for the examination to take place. Guidelines for the Search of Empty Containers The purpose of examining empty containers is to detect instances where the container itself is being modified for purposes of smuggling. Therefore, during examination of a container, whether external or internal, officers should look out for any traces of new paintwork/welding, fresh dents, or any other physical abnormality which might be intended to camouflage alterations made to the container or hide places of concealment. The following additional guidelines must be followed for external and internal examination of containers: External Examination • Start at the doors of the container and systematically move around the sides returning to the doors. Ensure that the doors cannot be opened without damaging or breaking the seals and that the seals are intact. Page | 416

• Examine the roof using equipment supplied by the port officer. Caution must be taken when officers climb up ladders or inspection gantries. Ensure that there are no false panels or fresh paintwork on the roof. • Check underneath the container by using a mirror. Should an officer find any indication of concealment then further investigation should be approached from inside the container by removing the floor. Drilling may only be done from inside the container. Officers may call upon qualified workmen to carry out specialized work. • Measure the outer dimensions of the container and make a note of these measurements for later comparison with interior dimensions to ensure there are no false panels. • Tap the sides and ventilation covers of the container for hollow spaces. • Examine ventilation shaft covers to detect any signs that these covers have been removed. • Carefully check that any sealed points on the container cannot be loosened or removed and also that any screws or bolts have not been freshly painted or artificially oxidised to conceal any tampering. Internal Examination • Stand inside the container and systematically observe the inner walls and roof of the container. Ensure that one wall does not look newer than others. This could indicate a false panel. • Check the upper corner blocks of the container to ensure that these are not partially or totally invisible as this could also indicates the presence of a false panel. • Examine the floor of the container for any signs which may indicate it has been tampered with e.g. the screws on the metal panels may show signs that they have been removed (paint around them cracked). • Look through the ventilation slot of the container with your mirror to see if you can detect any goods concealed inside. • Measure the inner dimensions of the container and compare with the outer dimensions. Should there be a large discrepancy then it is possible that a false panel exists. • Check out any unusual smells inside the container, which could indicate, concealed goods, e.g. naphtha is used to mask the smell of drugs. Page | 417

Guidelines for the Search of Loaded Containers Before commencing the examination, check that the seal number on the container corresponds with that reflected on covering documents and that the seal is not broken or otherwise tampered with. The following guidelines are in addition to the guidelines for the examination of the exterior and interior of empty containers which also apply to loaded containers: Total Unloading of the Container Total unloading should be undertaken when it is necessary to carry out a full investigation with regards to the container and its content. It would entail the unloading of all the packages in the container so that the exterior and interior of the container may be examined as outlined. Partial Unloading of the Container Partial unloading will be done when a full investigation is considered unnecessary. In such cases the officer should pave the way for undertaking the examination of the container by removing only enough packages in one or more of the following ways: • Cut an aisle through the rows of packages • Clear one or more sides • Cut out a corridor to the far end of the container Examination of Contents Carefully scrutinise the actual packages whether they are inside or outside the container to detect packages which: • Are not shown on the bill of lading as these would be undeclared goods. • Are at the front, top or back of the container which are not similar to the rest of the consignment e.g. different marks and numbers, different colour, different strapping etc. • Have no markings at all or which may be similarly marked as the rest of the consignment except that they have additional irregular markings designed to distinguish them from the rest of the consignment such as crosses, stickers etc. • Have external markings which differ from the commercial markings on the other packages and also the bill of lading (commingled goods). • Contain goods of no real commercial value on the local domestic Page | 418

market which are used basically to camouflage other fraudulent goods of great value. While searching a loaded container and its contents the officer should remember the following: • The choice of packages to be removed from the container always rests with the Customs Officer and the packages or goods which are being unloaded must be deposited near the container. • The officer must ensure that the container is unloaded and the packages arranged outside, in a methodical and orderly fashion to facilitate inspection. • Packages which have been unloaded and /or examined must not be moved or returned to the container without the officer’s permission. • The officer must ensure that the bill of lading and Customs documents are used to tally the number of packages and also to verify that the marks and description are correct. CONTAINER FREIGHT STATIONS (CFS) Appointment of Container Freight Stations Container Freight Stations are appointed by the Commissioner. This appointment is subject to the Commissioner being satisfied that the applicant: • Is of good standing with no outstanding tax liabilities. • Lodges a general bond in favour of the Commissioner. • Provides suitable office accommodation with appropriate computer facilities able to interact with the Customs computer system for use by resident Customs officers. • Provides equipment, labour and other facilities required to enable examination of the goods in the freight station. • Keep a record of all goods in the depot and readily make the records available to Customs on demand. Minimum Specifications for the Premises • The premises should be located on a land area of not less than 2.5 hectares and enclosed by a perimeter stone wall of a height of not less than 3 metres and topped with an electric fence. • The entire surface area must be properly paved with suitable material, preferably paving blocks or tarmac, used to cover the surface. Page | 419

• Floodlights must be installed to light up its entire surface area to facilitate 24 hour operations. • There should be a building of not less than 3,000 square feet, suitable for use as a Customs Warehouse. • There should be loading, offloading and other handling facilities for the examination of goods. • There must be a railway siding capable of loading and unloading directly into the premises, suitable for handling goods imported by sea. Operating Conditions The operator of the Container Station shall be subject to the following conditions: • An operator of a transit shed shall seek the Commissioner’s approval before consolidating sea cargo. • The transit shed must have average monthly revenue of at least USD 1 million. Application for Registration of a CFS The application for appointment to operate a CFS shall be accompanied by: • A plan of the premises and its situation in relation to other premises and thoroughfares. • Architectural drawings • A License USD 1,500.00 Procedure for transferring cargo from the harbour to Freight station Cargo Transfer Request • Cargo transfer request is submitted online by the CFS Operator. • Customs checks and approves request and movement. • At the CFS the officer receiving the cargo verifies details including integrity of the seal before accepting the goods into the station. Receipt of Entries • Hard copies of entries are received from importers or their agents. • Details of the entry (entry number, consignee, date entry received at Page | 420

CFS, description of the cargo, clearing agent, amount of taxes paid) are recorded in the register. • The entries are then allocated to Verification Officers by the Officer in charge of the Verification Unit. Verification of Containerized Cargo Verification begins with the confirmation of authenticity of the entry by tracing it in the Customs clearance system. All verifications must be complete and thorough in all respects. Accordingly, Verification Officers must prepare themselves as follows: • Step1: Scrutinise the entry and supporting documents and the release instructions and/or the queries raised by the Assessing or other officer requesting the verification. • Step 2: Where classification is involved the verification officer must consult handbooks such as Harmonised System Explanatory Notes or, where available, previous tariff determinations. • Step 3: As it is not practical to cart all books of reference to the place of examination, the Verification Officer must study these before leaving the office in order to identify all possible matters or characteristics of the goods or the consignment to be verified during the examination. The officer should jot down aide memoirs and notes that could, for example, read something like: “Check if goods are actually made of plastic and not leather (see explanatory note number…) Check if goods are not parts of machines of TH….) Take sample and descriptive literature,” etc • Step 4: Once the preparation has been completed, the Verification Officer, accompanied by the importer/agent, then proceeds to conduct the verification. • Step 5: Before the seal is cut the Verification Officer must confirm the container details and shippers seal number against the bill of lading. • Step 6: The seal is cut by the representative of the CFS operator in the presence of the VO and the clearing agent. Other law enforcement or government agencies such as Police, Bureau of standards, Port health, etc may also be present if they so wish. • Step 7: The CFS must provide the equipment and labour for the offloading of the container and whatever other Page | 421

manipulation or preparation might be required by the officer to facilitate effective examination of the cargo. Releasing Goods When the Entry Has No Discrepancy Where all is in order, the VO must prepare an examination account and recommend release to the Officer in Charge of the verification unit or other designated senior officer. Once release is confirmed, the release is noted in the Customs clearance system and release authorised. Where discrepancies are found the Verification Officer must detail the discrepancy and submit examination account to the designated senior officer for a ruling or further action which may include valuation investigation by the valuation division, analysis of goods for classification, etc. Only after the discrepancy is addressed is release authorised subject to conditions such as payment of penalty. Procedure for Releasing Cleared Goods To release goods the Verification Officer must: • Authorize the release in the Customs clearance system. • Print 3 copies of Customs Release Orders, sign and stamp them. • Sign and stamp ‘RELEASE’ on CFS Release Orders; • Marry the Customs Release Order to one copy of the CFS Release Order and retain for the office file. Page | 422

CHAPTER 19 REGIONAL CO-OPERATION IN ENFORCEMENT MATTERS 1. The role of Customs Administration To facilitate effective co-operation in enforcement matters each EACCMA Partner State: s. 3 Through a designated department be responsible for the implementation of these Regulations including gathering intelligence, undertaking anti-smuggling activities and investigations; and - avail to the Directorate information on Customs offences (a) committed within the Partner State; and - forward to the Directorate information on administrative (b) measures instituted in relation to cross border movement of goods between the Partner States 2. The role of the EAC Customs Directorate The Directorate is responsible for facilitating the effective (a) implementation of the enforcement regulations by: - Liaising with the relevant authorities in the Partner States and (a) relevant international bodies to gather information on Customs or Customs related offences; - Compiling the information on the Customs offences including the trafficking of drugs, counterfeits and pirated goods, prohibited and restricted goods; - Disseminating this information by facilitating its publication (b) and exchange - co-ordinating training for proper officers on prevention, (c) investigation and suppression of Customs offences; - co-ordinating sensitization programmes for stakeholders on (d) Customs offences and compliance with Customs law; - Promoting and co-ordinating quality control of Customs (e) operations; - Co-ordinating administrative assistance between Customs. (f) 3. The role of the Commissioner The Commissioner in each Partner State is responsible for facilitating (a) Page | 423

the effective implementation of the enforcement regulations by: (b) (c) - Providing his or her counterparts in each Partner State with administrative assistance in enforcement matters; (a) - Exchanging information on Customs offences (a) (b) - Notifying the Directorate of any such administrative (c) assistance or information exchange (d) (e) - Designating an appropriate office in the Customs to be the (f) contact point to communicate with the Directorate. Page | 424 4. The role of the Committee The committee may instruct the Customs administrations to exchange any information on any Customs related issue. 5. Formalities for requesting administrative assistance A request for administrative assistance must be communicated directly between the Customs concerned The requests may be made verbally, in writing or electronically. In the case of verbal or electronic requests the Partner State being requested may seek confirmation of the request in any manner the Commissioner deems sufficient. (1) Information to be included in the request The request must contain sufficient information to enable it to be effectively executed This information shall include: - The Customs administration making the requests; - The subject matter of the request; - Type of assistance requested; - Reasons for the request; - A brief description of the case under review and the applicable legal and administrative provisions; and - Details of the persons that are the subject matter of investigations, if known The procedure or methodology to be followed in executing the request shall be in accordance with the legal and administrative framework pertaining in the requested Partner State

(2) Categories of information and assistance to be exchanged Partner States need not wait for a request in order to provide assistance. Assistance may be provided on the initiative where immediate intervention is required to prevent a serious Customs offence or public health or security breach. The following information shall be exchanged between Commissioners either spontaneously or on request: (3) Modus Operandi for Customs offences and enforcement techniques - new trends and means or methods of committing Customs offences; - goods known to be subject to Customs offences, as well as the transport and storage methods used in respect of these goods; - persons known to have committed Customs offences or suspected of being about to commit Customs offences; and - any other data that may assist Customs with risk assessment for control and facilitation purposes. - new enforcement techniques found to be particularly effective; (4) Confirmation of truth and accuracy of declarations EACCMR 10 - whether the goods imported into the territory of the requesting (a) Partner State were lawfully exported from the territory of the (b) requested Partner State; or (c) - whether the goods exported from the territory of the requesting Partner State were lawfully imported into the territory of the requested Partner State; - the Customs procedure, if any, under which the goods have been placed A request for this verification must specify the verification procedures that the requesting Customs undertook or attempted to undertake and the specific information required. (5) Advance information in respect of consignments The Customs administration may enter into arrangements between themselves to exchange the following information in advance of the Page | 425

arrival of consignments into their territories: EACCMER - consignor or consignor code or exporter or exporter code; 11 - description of goods or tariff code number; - United Nations Dangerous Goods Number (dangerous goods (a) code); (b) - type of packages identification; (c) (d) - number of packages ; - any other relevant information. 6. Surveillance and Patrol Services EACCMER 13 A Customs Administration may assist another on its own initiative or upon request by mounting surveillance and undertaking patrols so as to provide the requesting Administration with information on: - the goods, means of transportation and premises known to (a) have been used or suspected of being used to commit (b) Customs offences in the territory of the requesting Partner State; - the persons known to have committed or suspected of being about to commit Customs offences in the requesting Partner State, particularly those moving into and out of the requested Partner State. 7. Controlled deliveries The Customs administration may enter into arrangements between EACCMER themselves, with or without the assistance of other law enforcement 14 authorities, to permit the movement of unlawful or suspected goods out or through each other’s territory for purposes uncovering more information in relation to that smuggling operation. Under no circumstance may a controlled delivery operation be allowed through a Partner State without the knowledge of the Commissioner. 8. Recovery of claims EACCMER 15 Upon request and using arrangements agreed between them, a Page | 426

Customs administration may assist another to recover a Customs claim. 9. Experts and witnesses Upon request, a Partner State may authorize its officer to appear EACCMER before a court or tribunal in another Partner State as an expert or 16 witness in a matter related to the application of Customs law. 10. Presence of officers in territory of another Partner State A Partner State may seek permission for its investigating officers to EACCMER be present in the territory of the other Partner State for purposes of: 17 - Examining documents and information in the offices of the a. requested Customs; (b) - Being supplied with copies of the documents; and/or (c) - Being present during an inquiry relevant to the requesting Customs, conducted by the requested Customs. The presence of the officers from the requesting Partner State shall be authorized subject to any terms and conditions that the requested Customs may impose and their involvement in the investigations shall only be limited to advisory role provided: - The role of the officer authorized under this regulation may be expanded at the discretion of the requested Customs administration; - The officer must at all times furnish proof of his or her official identity and his or her official status as granted in the territory of the requested Customs. - The officer shall enjoy to the extent provided by the laws of that Partner State, the same protection as local officers. 11. Cross border co-operation (1) Pursuit of offenders, Cross-border surveillance and covert investigations Subject to prior authorization being given and subject to any EACCMER conditions the requested Customs may impose, a proper officer of the 19 – &20 requesting Partner State may, within the territory of another Partner State: - continue to pursue an individual committing a Customs offence provided; Page | 427

- continue with surveillance on a person suspected to be involved in a Customs offence; and - undertake covert investigations, to ascertain or clarify facts about a Customs offence where it would be extremely difficult to do so otherwise. (2) Joint Investigation Teams Joint investigation teams may be constituted from officers from EACCMER different Partner States. Such joint Teams shall be governed by the 21 laws of the Partner State in which the team is constituted as well as the terms of conditions set by that Partner State 12. Confidentiality, use and Protection of Information The use, handling and protection of information exchanged under EACCMER these rules shall be governed as follows: 23 (1) Confidentiality and use of information EACCMER 24 The information shall be used only for purposes it was exchanged unless other uses of the information, including its use in criminal investigations, prosecutions or proceedings, are authorized by the Partner State that provided it. The information shall be treated as confidential and afforded the same protection and confidentiality as similar information under the legal and administrative provisions of the Partner State to which it is communicated. (2) Personal data EACCMER 25 Any exchanged personal data shall not be furnished to any other relevant authority without the prior approval of the Customs that supplied the data and the receiving State must, on request, provide details of how the personal data was used and the results achieved The personal data shall only be kept for the time necessary to achieve the purpose for which it is supplied. The personal data must be obtained fairly and lawfully, must be accurate and up to date and not excessive in relation to the purposes for which it is supplied. Page | 428

Where personal data supplied is found to be inaccurate or incorrectly exchanged, the supplying Customs administration notify the receiving Partner State and arrange for the data to be immediately amended of destroyed The exchange of personal data must be recorded by the supplying and receiving State and take necessary security measures to prevent unauthorized access, amendment or dissemination 13. Central Automated Information System (CAIS) (1) Purpose of the CAIS The information exchanged shall be kept in CAIS. The information EACCMER shall be kept for the purpose of: 26 - risk management to ensure the proper application of Customs law; - prevention, detection, investigation and suppression of Customs offences; - ensuring the security of the international trade supply chain; and - providing information on persons known to have committed Customs offences or suspected to have committed Customs offences 14. Details of information to be input into the system (1) Goods EACCMER 28 Each Partner State shall provided the following information: - the case reference, where applicable; - the goods concerned; - the routing and means of transportation of the goods concerned; - the means of concealment of the goods concerned; - indication whether the goods concerned are detected at importation, exportation, in transit or inland; Page | 429

- the means of detection of the Customs offence. 15. Information on natural and legal persons EACCMER 29 a. On natural persons: (a) - family name, maiden name, given names and aliases, and former names, as appropriate; - date and place of birth; - nationality; - type and number of identity documentation; - sex; - country of residence; - nature of offence; - occupation; - distinguishing features; - prior history or information on suspects; - registration numbers of the means of transport; - indicators of level of danger that a person may pose; - specific reason for inclusion of data; - criminal organization belonged to; and - known associates; b. On legal persons – - name, trade name; (i) (ii) - country of registration; (iii) (iv) - registration number; - date of registration; Page | 430

- registered office; (v) (vi) - trading address; (vii) (viii) - nature of business; (ix) (x) - nature of offence; (xi) (xii) - prior history or information on suspected legal persons; - specific reason for inclusion of data; - names of principal officers or employees; - any other identifying information. 16. Management of CAIS EACCMER 27 The CAIS shall be managed by the Directorate. The Commissioner of a Partner State shall designate an officer in the Customs to be responsible for the operation of the CAIS. The CAIS shall be accessible to any officer authorized by the Commissioner of a Partner State. There shall be an officer at the Directorate authorized to operate and maintain the CAIS. (1) Procedures for the operation of CAIS EACCMER 30 The CAIS shall be operated according to the technical and operational procedures established by the Committee. These procedures shall regulate: - communication regarding information of the CAIS; - access to the CAIS; and - modification of information in the CAIS. 17. Trade-Related Aspects of Intellectual Property Rights (1) Appointment of Customs officers as Inspectors under the Counterfeits Act Page | 431

Authorised Customs officers appointed as inspectors have all the EACCMA powers, rights, privileges and protection, of a Police Officer of the s.7 Partner State in which such Inspector performs his duty. (2) Offences under the Counterfeits Act It is an offence, among other things, to import or tranship counterfeit EACCMA goods. Thus all imported counterfeit goods may be detained or seized 2nd and moved to a counterfeit goods depot. Schedule, Part A, Par. 12 Any person who aids and abets the commission of an offence under the Counterfeit Goods Act commits an offence. A clearing agent is criminally and civilly liable to the same extent as the importer unless the agent proves to the satisfaction of the court that he did not know or had no reason to suspect that the goods in question were counterfeit goods. Criminal cases involving counterfeit goods may only be heard in EACCMER special courts set up for that purpose to which only judges with 17 relevant qualification or demonstrated sound competence in intellectual property law are appointed. (3) Recordation of intellectual property rights To receive Customs protection the owner of the intellectual property rights must apply for registration to the Commissioner giving the following details: - the name, complete address and citizenship of the trademark (a) owner or owners; (b) (c) - the places of manufacture of goods bearing the recorded (d) trademark, copyright or patent; - proof of registration by a competent Authority; and - any other information that the commissioner may require. (4) Applications for intervention by Customs The rights owner may apply to the Commissioner in writing for an EACCMER intervention to suspend the clearance of goods about to be imported 35 that are infringing or suspected of infringing that right: Page | 432

Where the infringements is in respect of geographical indications the applicant must provide evidence that: - In respect of importations, that the goods are in violation of the law in the country of origin; or - In respect of suspension of clearance on exportation, that the use of the geographical indication is a violation of national law in the country of ultimate destination/sale. Customs may, on its own initiative, suspend the clearance of goods EACCMER where there are reasonable grounds to suspect that the goods are 43 counterfeit goods. Infringing goods intended for the importer’s or consignee’s own EACCMER personal use contained in personal luggage or sent in consignments 47 not exceeding three items of the same nature are not subject to the suspension procedure provided by these regulations. (5) Applications to be supported by certain evidence and EACCMER documentation 41 Every application shall be accompanied or supported by the following: - Personal and contact details of the applicant, his or her representative or technical adviser/contact point in the Partner State, - Where applicant is not the rights owner, a Power of Attorney or appropriate authorization to represent the right holder - adequate evidence of the existence and ownership of the right - Details of type and description of the Right, i.e. Trademark, Copyright, Trade Name, etc and registration number thereof - a sufficiently detailed description of the goods in question and, where appropriate, a sample of a genuine product; - A description and international classification (for IPR purposes) and countries where their IPR is protected; - a statement of the grounds for the application and in the case of application in respect of a specific consignment; prima facie evidence of infringement - Any application fee that may be prescribed. Page | 433

The fact that the applicant has failed to provided some of the information outlined above is not grounds to reject application for assistance without further examination. (6) Customs to notify applicant specify period of assistance An application for assistance must be checked and approved by the EACCMER designated proper officer. Approvals must be given within 30 days of 37 receipt of the application and shall be valid for periods not exceeding one year. The Commissioner may grant the application if satisfied: - that the goods claimed to be Protected Goods, are prima facie, Protected Goods; - that the Intellectual Property Right, the subject matter of which relates to the Protected Goods, prima facie subsists; and - that the applicant prima facie is the Owner of that Intellectual Property Right Urgent applications should be considered immediately in view of the urgency and, if approved, protection granted according to the period specified. All approved applications must be given an annual running number with the expiry date clearly endorsed thereon. (7) Security and indemnity Customs is not obliged to act on any requests for assistance in the absence of a valid application form covering specified goods. Any new or different goods must be covered by a separate application and any expired application become invalid unless an application for extension is made. Each application must also be accompanied by sufficient security as EACCMA the Commissioner may determine and a statement indemnifying s.38 Customs against any consequences arising out of actions taken by any officer in pursuance of that request. (8) Suspension of clearance EACCMER 39 In pursuance of a properly approved application for assistance the proper officer may suspend the Customs clearance of goods about to Page | 434

be imported, exported or being removed in transit for a period of 10 working days for ordinary goods or 3 working days for perishables. When this happens the importer, exporter and/or the agent must be notified immediately of the action taken and reasons thereof. The 10 day period of suspension may be extended by a further period of 10 days by the competent authority dealing with the infringement of the right. If such extension or further update is not received from the applicant or from the authority, the proper officer should release the goods. The extension outlined above is not possible for perishable goods. Thus at the expiry of the 3 working days the goods must be released in case no action is taken within that time. If after the further extension no court order authorizing the provisional seizure of the goods and if all the other conditions of importation, exportation or transit have been met, the goods may be released and cleared accordingly. (9) Rights holder’s right to request access to goods and further EACCMER information 42 The proper officer may, at the request of the rights holder, provide information on the consignment in question as may be necessary to assist him or her to determine whether or not an infringement of his right has occurred including permitting him to examine the detained goods and take samples thereof. Where a positive determination has been made by the competent Court that goods infringe an intellectual property right, Customs may on request provide the rights holder with the names and addresses of the exporter, the importer, the consignee, and the consignor and of the estimated quantity of the goods in question. Right holders shall be permitted to use this information solely for the purpose of investigating and bringing legal actions concerning alleged infringements of their intellectual property rights. (10) Issues and Execution of Warrants A Customs officer acting as a counterfeit goods inspector requires a search warrant to search premises where counterfeit goods are believed to be stored. Page | 435

The Customs officer acting as an inspector may also may proceed to search the premises without a warrant provided the search is undertaken during the day if: - the person being searched consents to the search; or - Time is of essence and the inspector reasonably believes that his request for a search warrant would not be granted by a magistrate All searches undertaken without a warrant must be confirmed by a Judge or Magistrate within 7 days A search warrant may be issued at any time and may be for a specific named offender or generic for unspecified offenders. A warrant shall be valid until the following, whichever occurs first : - it has been executed; or - it is cancelled by a competent court - the expiry of three months from the day of its issue; or - the purpose for which the warrant was issued, no longer exists, (11) Conducting Searches under the EAC Counterfeits Act The person being searched has a right to have his advocate present during a search undertaken under the authority of a search warrant. Where he or she intends to exercise this right he has two hours from the time of arrival of complainant or his agent at the premises or place to be searched to secure the presence of such advocate. After the search the complainant’s representative must make an inventory of offending goods found and detained and a list of ancillary materials collected from the scene. A copy of these lists must be handed to the alleged offender. Immediately at the conclusion of the search the complainant or his representative must make a full report or the search under oath. The inspector must also make a full report on the incident in the normal way. Page | 436

(12) Disposal of Infringing Goods EACCMER 45 a. Disposal where court order has been issued Upon determination by the competent court that the goods infringe a right Customs may destroy the goods upon request of the right owner or dispose them in such a manner as the Commissioner may direct provided: - disposal shall be outside the normal channels of commerce; (a) (b) - such manner of disposal shall be without detriment to the (c) right holder; (d) - the bearer of the cost of disposal shall be as determined by (a) the court; and (b) (c) - Re-exportation of the infringing goods in an unaltered state or their clearance in the different Customs procedure shall not be permitted except under exceptional circumstances. b. Disposal where court order has been issued In the absence of a court order detained goods may be destroyed or otherwise disposed as the Commissioner deems fit, provided the right holder has availed adequate evidence to prove that the goods are infringing his rights and the importer or exporter: - has been served by Customs with the notice of suspension; - fails to oppose a notice of the possibility of disposal of the infringing goods within 31 calendar days; or - After all reasonable efforts cannot be identified Right holders may, prior to the disposal of the suspended goods, apply for a retention of samples, needed as evidence in pending or future legal actions regarding infringements of intellectual property rights. (13) National contact points Customs shall establish contact points for the exchange of information on trade in goods infringing intellectual property rights, and to conduct and coordinate cooperation between Customs authorities Page | 437

Counterfeit and pirated goods may not be stored, manufactured, EACCMER (a) packed or undergo any process in a Free zone and Free Trade Area. 46 (b) (c) (14) Assistance to be given to Customs by person seeking assistance (d) (e) Rights owners seeking assistance from Customs are obliged to (f) provide to Customs the following further information they may have in respect of genuine goods and infringing goods: (a) (b) a. Information on genuine goods (c) (d) - pre-tax value of genuine goods in the legitimate market in the country in which the application for action is lodged; (e) (f) - country or countries of manufacture of genuine goods; (g) (h) - name and principal business address of each person or entity authorized or licensed to use the right; - mode of transportation and the identity of the transport companies used; - identity of the importer and/or consignee and exporter; - routes and ports of entry and exit normally used; and b.Information on infringing goods - Classification in the Harmonized System - country of origin of the shipment and any countries through which the suspect goods are transhipped; - country or countries of manufacture of the suspect merchandise; - name and principal business address of each person or business entity involved in the manufacture and/or distribution of suspect merchandise; - mode of transportation and the identity of the transport companies used by infringers; - identity of the importer and/or consignee and exporter; - port where it is anticipated the suspect articles will be presented to Customs; - anticipated date of presentation to Customs; and Page | 438

- known cover loads or concealment methods. (i) (15) Control of illicit small arms and ammunition a. Powers of Customs officers EACCMER 53 Customs officers must: - seize any illicit small arms and light weapons found in a Customs area; - arrest any person who is involved in importation and exportation of illicit small arms and light weapons; and - immediately hand over the arrested persons to the relevant authority. b. Procedure for clearance of small arms and light weapons EACCMER 55 Each Customs administration must: - maintain at exit and entry points a record of imports and exports of small arms and light weapons; - Ensure that all small arms and light weapons are only released from a Customs area Customs area by holders of import licences issued by the country of destination; - exchange either on request or on their own initiative, information relating to traffic of small arms and light weapons through their jurisdiction to another state; and/or - Offer other Customs administrations mutual assistance in enforcement matters including dealing with offences relating to illicit dealings in small arms and light weapons. Page | 439

Appendix APPLICATION FOR SUSPENSION OF CUSTOMS CLEARANCE (Section 30 of the East African Customs Management (Enforcement) Regulations, 2010) REFERENCE NUMBER: I ……………………......{Name and designation of Signatory}…………………………………… hereby apply on behalf of …{ company/business name and address} ………… to the Commissioner of Customs in terms of Section 30 of the East African Customs Management (Enforcement) Regulations , to suspend Customs clearance of the following goods which are counterfeit goods featuring, bearing, embodying or incorporating the subject matter of the intellectual property right as described in this application. COUNTERFEIT GOODS Brand Name Description of goods HS Sub-heading The following documents are attached*: o Photographs o Evidence of the existence and ownership of the right o Descriptive literature o Other (specify) COPYRIGHT Registration Expiry Date Brand Class Type Number (Devise Lettering) Page | 440

* Delete inapplicable CONTACT PERSON (S) Name and Address Contact details Name Tel: ……………………………………............... ……………………………....... ....... ............. Address Mobile: ……………………………………................... …………………………….................. ........ ……………………………………............... Fax: ........ ……………………………………............... ……………………………....... ............. E-mail: ……………………………................... Name Tel: ……………………………………............... ……………………………....... ....... ........... Address Mobile: ……………………………………................... ……………………………................. ……………………………………............... Fax: ...... ……………………………....... ……………………………………............... ............ ...... E-mail: ……………………………................... POWER OF ATTORNEY Page | 441

BY THIS POWER OF ATTORNEY ……………………………………………………… (name of company), a company incorporated in (Partner State) and having its registered office at aforementioned address (hereinafter called “the Company”) hereby nominate, constitute and appoint ……………………………(name of attorney) of …………..….……………………………………………………..(address) (hereinafter called “the Agent”), to be the true and lawful agent of the Company in (Partner State) with full power and authority for, and in the name of, and on behalf of the Company, to do or execute all or any of the acts and things hereinafter mentioned, that is to say, ………………………………………………………………….. ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………...... ................................................................................................ Generally to do all such acts and things not herein specially authorised as the Agent(s) may deem proper or expedient in relation to all or any of the purposes or matters aforesaid. The Company hereby agrees to ratify all that the Agent shall do or cause to be done in execution of this deed. This power of attorney shall in all respects be interpreted in accordance with and governed by the law of the (Partner State) Page | 442

1. CONTACT PERSON AT AGENT Name and Address Contact numbers Name Tel: …………………………………………………… ……………………………………… ……. … Address Mobile: …………………………………………………… …………...………………………. …. …………………………………………………… Fax: ……………. ….………………………………… …. …………………………………………………… E-mail: ……………. …………………………………….. Name Tel: …………………………………………………… ……………………………………… ……. … Address Mobile: …………………………………………………… …………...………………………. …. …………………………………………………… Fax: ……………. ….………………………………… …. …………………………………………………… E-mail: ……………. …………………………………….. 7. INDEMNITY – I …………………………………………….…………………………………. hereby, undertake to indemnify the (Customs Services Department of the relevant Partner State) and its members against any liability that may be incurred pursuant to the detention and/or seizure in terms of the EAC EACCMA and CMER ----------------------- and/or seizure and detention in terms of the CMER or any other action with or delivery of the goods, as described below, in terms of any legislation, including but not limited to the Anti-Counterfeit Act and further undertake to cover any expenses that may be incurred in effecting the detention and/or seizure of the goods and to pay any legal costs incurred by the Commissioner pursuant to the Page | 443

seizure and/or detention of the goods and to pay and arrange for the removal of such goods to a place of storage, and to pay any storage costs, including any Customs Warehouse rent as determined by the Commissioner and to arrange for and pay for the destruction of the goods if required. SIGNED at ________________________ (place) on the ____ of ___________ 2002 ____________________________________ (signature). Witnesses: 1. _______________________ 2. ____________________ Page | 444

CHAPTER 20 CUSTOMS OFFENCES, PENALTIES, SEIZURES AND FORFEITURES Any person who contravenes any provision of the Act, or who refuses or for any other reason fails to comply with any of its provisions with which it is his duty to comply, commits an offence. However, certain actions or omissions are specifically cited as offences in Part XVII of the Act. See paragraph 17 for a complete list of these offences. Not all sections in the Act provide for penalties. Where a section does not provide for any penalty, then an officer should apply S.209 which is a general penal provision of a fine not exceeding five thousand dollars: Customs offences fall into the following broad categories: - Strict liability offences; and - Criminal liability offences Criminal liability arises where the person perpetrating the offending acts does so with wilful intent, i.e. with mens rea or a guilty mind. For a prosecution to succeed in a ‘criminal liability’ offence the state must prove beyond a reasonable doubt that the accused person perpetrated the offending act in question intending to defraud Revenue. However, in respect of some offences such as ‘attempts to commit’ an offence or allegations of fraud, it is necessary for the state to prove beyond reasonable doubt that the act or omission in question was a deliberate attempt to defraud the revenue or to evade Customs control. Without such proof the charge will not stand in court. Examples of criminal liability offences include: Section 202 (a) importation or exportation of goods ‘concealed’ in any way; or Section 203 (e) being ‘knowingly’ concerned in any fraudulent evasion of the payment of any duty Page | 445

1. Strict liability offences In ‘strict liability’ offences, the state merely has to prove that the offending act (or omission) was committed by the accused and the perpetrator becomes liable for penalty. Examples of strict liability offences include: Section 199 being in charge of a means of transport which has any secret or disguised place adapted for concealing Goods, etc In this case it matters not, for instance, that the person did not know that the means of transport he or she was in charge of was adapted to conceal goods. Section 200 importing or carrying coastwise any prohibited goods or any restricted goods contrary to any conditions governing such carriage, whether or not the goods are unloaded; In this case it does not matter that the person did not know that the goods were so restricted or prohibited. (there is a need to recast from 4-12) The bulk of Customs offences, such as using the incorrect invoice to frame an entry, are strict liability offences and any plea that it was an unintentional clerical error may be justified by mitigating the penalty but cannot save offender from being found guilty of the offence. 2. General provisions on offences and penalties Payment of duties is a civil liability that arises from the importation EACCMA of goods. This liability is not extinguished by the fact that the person s.201 was convicted of an offence involving the goods in question and ordered to pay a fine. Thus in addition to the fine the duty remains payable and must also be paid. Goods that are offered for sale in the pretence that they are EACCMA uncustomed become liable to forfeiture even if they may not, in s.207 actual fact, be uncustomed Aiding and abetting of offences carries the same penalty as the actual EACCMA offence and shall be liable to the penalty prescribed for such offence s.208 under the Act. A person who commits an offence under this Act for which no EACCMA Page | 446

specific penalty is provided shall be liable to a fine not exceeding s.209(1) 5000 USD The courts have the discretion to impose the penalty specified in the EACCMA relevant provision OR three times the duty payable on the goods, s.209(2) whichever is greater (3) PENALTY GUIDELINES EACCMA Summary of the offence Forfeiture Penalty Sections 9 Bribery and Corruption of Officers - X 15 X Failure to enter or leave or bring goods into or out of X 16 appointed entrance or to enter or leave Customs area X 21 when required to do so X 23 X 24 Interfering in any way with goods subject to Customs X 25 control X 26 X 28 Failure by Master of aircraft or vessel to come to an - X 29 approved port and report X 30 X A person who other than health officer boards a vessel - before the proper officer A master or agent of aircraft or vessel who makes a X false or incorrect report Failure by Master or agent of aircraft or vessel to - answer questions or produce documents Failure by owner or agent of aircraft or vessel to - account for any goods within the period allowed Failure by master or agent to report vessel or aircraft - lost or wrecked, etc. Failure by owner of vehicle overland to report to X Customs, etc. Failure by Station Master or agent to report to X Customs on arrival Page | 447

31 Failure by any person arriving overland with goods to X X report to Customs 33 Unloading of goods in an unapproved place X X 36 Failure to furnish entry within forty-eight hours - X 39 Delivery from Customs area in special circumstances X X not returned 44 Disembarking in a non appointed place -X 45 Failure by the passenger to declare baggage and any - X uncustomed goods 48 Removing goods to the warehouse and in packages in X X which they were imported or re-packed 51 Contravening a condition imposed in the operation in X X bonded warehouse 53 Failure to return goods temporarily removed from X X warehouse 55 Warehoused goods entered as ship stores not delivered X X as such 59 Gaining access to a bonded warehouse without the - X presence of a proper officer 61 Removing or destroying goods in a warehouse - X 62 Using premises as a bonded warehouse without - X authority or contrary to conditions of license 64 Failing to provide facilities in a Customs bonded - X warehouse 65 Interfering with warehoused goods XX 67 Failing to produce warehoused goods when required - X to by a proper officer 74 Master or agent of aircraft or vessel who fails to enter - X outwards vessel or aircraft and goods 73 Owner who fails to enter goods for export by aircraft X - Page | 448

or vessel 75 Goods loaded on board aircraft or vessel without entry X - 76 Contravening conditions to load goods without entry X - 77 Offloading of exports, stores and passenger baggage X - within the country. 78 Contravention of conditions for bonded goods entered X - for export 79 Failure to export goods entered as stores X- 80 Short-shipped goods not reported within forty-eight X - hours 88 Departure of an aircraft or vessel without clearance - X 89 Failure by master or agent of vessel to fulfil - X undertaking or return cancelled certificate or clearance 90 Failure of master or agent of aircraft or vessel to - X produce clearance certificate 91 Possession in an aircraft or vessel of goods not - X declared in the manifest or found short 92 Failure to bring aircraft or vessel to a boarding station - X when required to do so 83 Failure to answer questions put up by a proper officer X - to a person about to depart to foreign 99 Loading or unloading coastwise goods onto or from X - aircraft or vessel at unapproved place etc. 100 Giving incorrect or false information on Transire - X 101 Failure by master or agent or aircraft or vessel to X X produce Transire on arrival 102 Contravening conditions for loading or unloading of X - coasting vessel 104 Coasting aircraft deviating from its voyage or failing X - to report wreck etc. Page | 449

105 Refusal by master or aircraft or vessel to answer - X questions or making incorrect reply. 160 Use of unlicensed premises to manufacture under X X bond or contravention of licence condition 161 Commencing manufacturing without making an entry - X in the prescribed form 162 Failure to enter goods, equipment etc. on expiry of X X licence 163 Failure by Manufacturer to provide facilities, records - X etc. 164 Failure to enter and properly store materials in the raw - X material stockroom 166 Goods from bonded factory unlawfully entered for X X home consumption 164 Imported machinery and raw materials not delivered X X from bonded factory 168 Removal of goods from the EPZ or Freeport without X X Commissioner’s consent. 168 Failure to abide to the conditions of removal of goods X X from the EPZ or Freeport. 175 Failure to abide to the conditions imposed on the X - compensating products entered for home consumption. 191 Unauthorized access to and/or improper use of the - X Customs Computerized System. 192 Interference with the Customs Computerized System. - X 193 Conspiring to contravene with the provisions of the - X EACCMA. 194 Malicious damage to Customs property. -X 195 Removing or defacing Customs seals. -X 196 Inducing another person to commit an offence - X Page | 450