FINAL DRAFT PROCEDURE MANUAL - KAMPALA

- in a manner other than as prescribed by the Commissioner; - in a place other than a sufferance wharf or other approved place However, the following is permissible: - Unloading the goods onto another aircraft or vessel for purposes of landing them, provided such landing and subsequent unloading is done without delay, as prescribed and at an approved place; - Unloading the goods onto any other aircraft after reporting them for re-export pending such re- exportation; Before goods are transferred to another vessel for purposes of landing them the Master or his agent must sign and transmit an account of the goods, to the proper officer at the port of landing. In the case of transhipment cargo, the account must be headed “Transhipment cargo only”. Application for unloading at a place other than an approved place should be made on Form C.10. (1) Goods reported to be unloaded All goods reported for discharge at a port must be so EACCMA s. discharged. The master who fails to discharge the goods 27 will be held liable for the duty on those goods unless he can satisfactorily account for them. a. Unloading in Special Cases The following goods may be unloaded and delivered EACCMA s. without entry:- 36 - Mail bags and postal articles in the course of transmission by post; to an officer of the Post Office; - bona fide personal baggage of the passengers or crew subject to the provisions of the Act relating 51

to the clearance of such goods; - Diplomatic bags; - Human remains; - Bullion, currency notes and coin and perishable goods. b. Unloading of broken packages Broken packages discharged from a vessel must be transferred under Customs supervision into Customs controlled breakage cages. Alternatively and where possible they should be packed into lockable cages secured by a Customs lock affixed prior to the cage leaving the ship. (2) Landing Permits Landing permits may be issued to allow the unloading of unaccompanied or unmanifested packages. Such permits will normally be issued for:- - small quantities of provisions required by ships agents; - returned empty drums and bottles; - small personal equipment such as radios, laptops, cell phones, etc - small parcels carried per favour of ships’ Captains; - small packages of unaccompanied and unmanifested baggage. Landing permits must be sequentially numbered, and the following particulars of each permit recorded in a register:- - Permit number; - Date of issue; - Ship’s name; 52

- Name and address of person to whom issued; - Goods to be offloaded; - Amount of duty collected; - Officer signature and date. Particular care is to be taken to see that when landing permits are issued, the goods to which they refer are produced for examination without delay. Examination accounts are to be recorded on the reverse of landing permits. When any permit is not acted upon it is to be cancelled and filed and the landing permit register noted accordingly. (3) Goods unloaded to be conveyed to Customs area Unloaded goods must be conveyed to a Customs area, EACCMA s. transit shed or Customs warehouse as the proper officer 33(3) may direct. If the goods are unsuitable for storage in any of these places the officer may direct that they be deposited in such other place as he may direct and thereupon such place is deemed to be a transit shed for the purpose of the deposit of the goods. (4) Goods unloaded deemed to be still on board Unloaded goods being delivered to or actually lying in a EACCMA s. transit shed, or Customs area or a container depot – 26 including inland container depots - shall be deemed to be still on board the means of transport from which they were unloaded. The goods will continue to be so deemed for as long as they remain therein and during all that time the owners or agents for the aircraft or vessel will continue to be responsible for the goods as if they had not been unloaded. This liability for duty will cease only when the goods are delivered into Customs custody, duly cleared or otherwise satisfactorily accounted for. 53

(5) Removal of goods to another place The proper officer may direct that unloaded goods lying EACCMA, s. in a transit shed, container depot, etc., be removed to 33(4) some other place determined by him. If the agent fails to remove the goods when called upon, the officer may have them removed at the risk and expense of the agent. (6) Time within which clearance must be effected Imported goods must be cleared by the owner within 21 EACCMA S. days from the date of their discharge from the means of 34 transport on which they were imported. Goods that remain uncleared after this period must be removed to the Customs warehouse. Accordingly, boarding officers must endorse the actual date of arrival of the means of transport on the arrival report or input it into an electronic cargo management system, where such is in use. This record will then be used to generate a ‘Want of Entry’ list on the twenty second day from date of arrival of vessel/aircraft. No goods may be unloaded from any aircraft or vessel EACCMA s. (hereunder referred to as “Means of transport”) arriving 24 from a foreign port until they have first been entered, unless the proper officer approves otherwise. Applications for offloading prior to entry are made by the Master of the means of transport or his agent and approved by the proper officer in the offloading station (in the Form C.9); 5. Entry of Imported Goods All goods unloaded before entry must be conveyed to a Customs area from where they can be entered and cleared for home use or entered in another Customs clearance regime such as transit, warehousing, re-export, etc Such entry must be made within 21 days after the commencement of offloading or within such other time as may be allowed by the Proper officer The entry is a self-assessment Form completed by the 54

importer or his agent and submitted to the Customs. Each entry must be supported by documents providing evidence of the following particulars of the goods: - Physical characteristics (description, nature and quantity); - Origin; - Owner; - Cost and charges incidental to landing the goods (freight, insurance and other charges). (1) Forms of import entries Imported goods, subject to certain exemptions, must be entered in a Declaration Form C. 17 in accordance with the First Schedule of the Regulations. The form will be used for all the various Customs clearance regimes, such as imports, exports, warehousing, transit and trans-shipment, etc., with each type of entry being in accordance with the respective Customs Procedure Code. (2) Receipt of Documents When an entry, refund claim, invoice or similar document, is presented the proper officer should record the date and time of receipt. (3) Personal/Taxpayer Identification Number (PIN/TIN) Every person who wishes to pass entries through the Customs system must apply to the relevant authority for PIN registration. After registration the person is assigned a unique Personal/Taxpayer Identification Number (PIN/TIN). Importers and their agents are required to declare their Personal Identification numbers on the appropriate space provided on the entry. The system automatically verifies the validity of the PIN. The importer/agent must be notified of any queries and/or rejections of entries. Any amendments subsequently made will be subject to penalties, and/or alteration fees where applicable. 55

(4) Supporting documents All entries must be accurately and correctly declared and EACCMA accompanied by the following supporting documents:- s.34 and 203 - original invoices; - packing lists; - copies of consignment notes (bills of lading, air waybills, road manifests, etc); and - any other relevant document(s) that may be called EACCMA s. for 235 Every invoice must bear information on value, description and quantities of the goods in sufficient detail to enable the correct determination of Customs value and correct tariff classification. a. Invoices in Foreign Languages Documents required for Customs clearance must be in EACCMA English. Any person who submits such a document in s.234 any other language may be required to translate the document, and when so required the person shall comply. Every translation must be certified by a recognized translator who may be either an Embassy Official or recognized or accredited body or institution. The certificate must bear the official seal or stamp of that entity. It is a serious Customs offence to submit an incorrect EACCMA translation, particularly when the incorrect translation s.234 adversely affects the revenue collection. (See also Chapter 20). (5) Procedure for checking entries All entries are submitted through the Customs clearance system and are allocated to a Documentary Check Officer. The following is checked in respect of invoices: - Authenticity of the invoice; - Arithmetic correctness; 56

- Reasonableness of the declared values; - Sufficiency of description to enable the correct classification; - Completeness of the invoices (i.e. verification that no invoice was omitted); - Sufficiency of information thereon to determine quantities, packaging, etc; - Invoice particulars tally with declarations made on other documents such as bills of lading, air waybills, etc The following is checked in respect of declarations on the entry: - The entry declaration is properly dated; - The clearance regime code is correctly quoted; - The entry particulars agree with the invoice particulars; - For entries lodged for goods for which the importer and the exporter are related C41 is completed appropriately; - The value has been correctly computed and entered on the entry; - In the case of goods in respect of which a duty privilege is being claimed, that the claimant is entitled to the privilege ; - The goods are not prohibited imports; - Where the goods are subject to any import restriction, that they are being imported in compliance with the terms of that restriction; - Where required, a Certificate of Origin should be produced; - Compare the currency on both the Invoice and the Entry. Tips on identification of false invoices: Invoices must be checked intelligently and with imagination, bearing in mind that an invoice is a 57

document presented and sometimes prepared by a party with a vested interest in maximizing profits. Whilst not all invoices are false, officers must be on the lookout for the significant number of invoices that will invariably be false of falsified in order to reduce the duties payable on imported goods. The following are categories of false invoices a. False invoices collusively prepared by suppliers Such invoices are difficult to detect as they often appear exactly the same as the normal invoices. This fraud is detectable only through: - investigating suspiciously low values declared (here knowledge of values from the supplier is necessary); - double checking invoice information with information on other documents; (such as contract of sale or service) - physical examination of consignments to retrieve correct invoice or verify the quality of goods; - inspection of the importer books and other EACCMA documents to uncover evidence of collusion; etc. s.235 b. False invoices prepared by importer The tell-tale signs of a falsified invoice include: - Spelling and grammatical mistakes; - Wrong telephone numbers (such as where local numbers used); - Wrong or insufficient addresses; - Alterations on the invoice; - Vague or amateurish description of goods; - Mismatch between quantities and values; and - Any other similar errors and omissions, etc 58

c. Omission of invoices Sometimes the problem is that an entire invoice is omitted. This may be deliberate or inadvertent as in the case of large consignments of mixed goods supplied by various suppliers and consigned by a buying agent. Such omissions can sometimes be detected by comparing the total invoice value with the total value for which the goods are insured and comparing the goods with the weight and measurement of the packages on the invoices. Cases of suspected incorrect invoicing must be verified by physical examination of the consignment or reference to the relevant division for further investigation. Documentary Check Officers should take steps to familiarize themselves with:- - the main suppliers and the goods they supply; - the forms of invoice they use and, where applicable, the signatures which normally appear on such invoices; - the general indication of the value of the goods; - the main types of goods imported and trade practice as regards the packing thereof; - the appearance of the goods and what they are used for; - the main importers and what type of goods they import; - the sharing of information on values and invoices, with officers at different stations. (6) Prescribed forms The forms to be used for various purposes are prescribed EACCMA s. in the Regulations. 233 While the Regulations merely state only the form number to be used, the form itself provides further requirements in respect of the characteristics of the form such as: - the colour and size of the form; - the nature or form of the information to be 59

furnished; - the number of copies to be tendered; - action to be taken by the person concerned, or his function in the transaction in which the form is used; and - the certificates, undertakings, declarations, etc to be made and under whose hand they must be made. These instructions, indications or requirements shall be EACCMA s. deemed also to be prescribed. 233(2) The proper officer is empowered to demand further EACCMA s. copies of the prescribed forms over and above what is 233(3) prescribed. An electronic entry declaration in a prescribed form may be accepted by the proper officer. Where separate entries are made for goods contained in the same package, each entry must contain a reference to the other. All forms must be printed in indelible and legible ink, EACCMR and every alteration in the form or document made prior 216 to its acceptance must be authorized and may be subject to an alteration fee (7) Acceptance of entries Where an entry has been checked and found correct in every particular, the checking officer will validate the entry and pass it in the Customs clearance system. (8) Rejection of entries An officer may refuse to accept or to act upon any form or other document submitted to him unless the requirements of the Customs laws have been duly observed. The proper officer has authority to require the owner of EACCMA any imported goods to furnish wide ranging information s.235 pertinent to the importation of goods and do certain things pursuant to the Customs clearance of the goods. He or she may , as he or she sees fit, require the importer to:- 60

- produce all books and documents relating in any way to such goods - to answer any questions in relation thereto; and - to make such declaration with respect to the weight, number, measure, strength, value, cost, selling price, origin, destination or place of transhipment. If the importer (or his agent) fails to comply with any of the above requirements, then the officer may refuse entry or delivery of the goods. Entries should be rejected after acceptance if, on checking, it is found that: - the importation of goods is unlawful; - the goods are mis-declared; - the information contained in the documents produced in support of the entry declaration is insufficient or in such a form as to render a proper check impossible; or - the entry is incomplete in any way. All entries of whatever type are to be fully checked as soon as possible after lodgement and incorrect entries must be rejected in the following manner:- - a concise statement of all the errors and amendments requiring the importer's attention is to be communicated through the Customs clearance system or other communication methods; - Entries must be fully checked before rejection so that all errors may be communicated to the importer; - if an adjusting entry is rejected, a note of the date and particulars warranting rejection is to be made on the preceding entry; (9) Withdrawal of unpassed entries If an importer or clearing agent wishes to withdraw an entry which has been lodged but cannot be passed, whether checked or unchecked, he must apply to the proper officer through the clearance system messaging 61

system. Each application for withdrawal each application on its own merits and the decision communicated to the applicant. Entries which have been passed may not, under any circumstance, be cancelled. 6. Passing of Entries (1) When an entry is deemed to be passed (i.e. accepted by Customs) Goods are \"deemed to be entered\" when: EACCMA S. 2(2) - An entry is signed and submitted by the importer, either manually or electronically; - accepted and signed by the proper officer; - any duty due deposit required under the Act in respect of the goods has been paid; OR - security for that duty of deposit has been given All the conditions, namely submission of entry, its acceptance and securing of the duty must be satisfied before goods can be considered as having been entered. For instance, goods remain unentered where the entry is submitted but the duty has not been paid or secured. (2) Procedure for passing of entries The importer/agent will send the entry (electronically where possible) and it is only when the goods declaration data is accepted to the Customs system that payment of the taxes can be effected. Payment is made through designated banks which issue payment receipts. The payment confirmation is transmitted by the bank to the Customs system (with a computerised system this may be through an electronic messaging facility). The Customs officer will check the entry to ensure it is correct and complete and if satisfied will validate the entry in the system. 62

For legal and reference purposes the date of an entry is the date the entry is validated by the officer. 7. Provisional Entries (1) Minimum conditions for approval of provisional entries Where the importer does not yet have the full particulars EACCMA of goods necessary for preparing a final entry, a s.37 and 38 provisional entry may be permitted in respect of goods destined either for home use or for warehousing. The importer is permitted to examine the goods and to pass provisional entries subject to the following conditions: - The description of the goods for tariff and statistical purposes is correctly made; - In the case of goods liable to duty ad valorem, that the value declared on the entry is approximately correct; - In the case of goods liable to duty according to quantity or strength, that the relevant measure of quantity or strength is correct; - Where it is considered feasible and necessary, samples are retained by Customs; - Where the goods in question are being cleared for home use (as opposed to warehousing) any duties at stake are to be secured by a deposit or other acceptable form of security. (2) Handling of supporting documents Invoices and other documents submitted with provisional entries must be retained and filed with the duplicate provisional entries. Provisional entries which are resubmitted after having been rejected must be accompanied by all the supporting documents originally submitted with it. (3) Assessment of deposits on provisional entries The amount of money deposited as security, in the case of a provisional entry, should not be less that the estimated duties payable upon perfection of the entry. 63

The deposit should be of such order of magnitude to encourage importers to perfect provisional entries expeditiously. If the insurance premium element is unknown or the goods have not been Insured, a notional insurance premium is to be added as 1.5 per cent of the gross invoice value If there is insufficient evidence of value the deposit has to be assessed by the proper officer after examination of the goods. If the documentation available is insufficient for purposes of positively determining the duty payable but where such duty can reasonable be estimated, the importer should be asked to make a perfect entry based on the assessment of the valuation officer. If the owner or agent prefers to make provisional entry he is at liberty to do so, provided he or she is prepared to pay the deposit assessed. Such requests for quantity verification should be treated as follows: - On receipt of the entry (Form C17) the verification officer must allow the pre- verification of the goods by the owner under Customs supervision; - the verification officer will record and transmit the findings of the physical examination to the designated officer for the duty to be determined; - the importer will then be advised on the appropriate particulars to use for Customs duty purposes; - Unaccompanied baggage imported before the arrival of the traveller, is provisionally entered against a deposit calculated as if no concession is applicable. When the owner subsequently arrives and successfully claims the relevant concession the deposit may be refunded against the passing of the perfect entry. (4) Perfection of provisional declarations EACCMA s.38 The following steps should be taken when perfecting a 64

provisional entry: - The perfect entry on Form C17 must be submitted S.234 together with the relevant supporting documents and invoices, irrespective of the documentation which may have been lodged earlier in support of the provisional declaration; - The entry is then to be checked, passed and validated in the same manner as an ordinary import declaration entry and the duty due as shown on the entry is to be paid by the importer. After the perfect entry has been passed and the correct duty paid the owner may lodge refund claim which must be cross referenced with the numbers and dates of the provisional and perfect entries. The importer’s copy of the provisional entry and the original deposit receipt must be attached to the claims. This is necessary to avoid delay in refunding the deposit. Every effort must be made to ensure that deposits are refunded in full on the day the correct duty is paid, or as soon as possible thereafter. (5) Writing off deposits to revenue A deposit may be written off to revenue if the provisional EACCMA entry, in respect of which it was collected, is not s.38 perfected within three months after the passing of the provisional entry, or such further time as the commissioner may allow. Extensions beyond the three months period are to be granted only on written application by the owner and in exceptional circumstances supported by good evidence. Such an extension may only be granted if the application is received before the expiry of the three months and may not be for a period exceeding 30 days. Any deposit that remains outstanding after the expiry of the three months period or such further period as may have been allowed is to be automatically written off to revenue. When a deposit has been written off to revenue, no refund of the amount is to be made as the deposit is forfeited in accordance with section 38 of the Act. 65

(6) Penalties No penalties are to be inflicted for the non-adjustment of deposits. It is considered that the loss of the balance of deposit is adequate punishment. For this reason therefore, deposits fixed in such order of magnitude to cover the estimated duty plus such further amount as the officer may deem fit as provided for in section 38(2) of the Act. (7) Deposits on Temporary Imports Goods may only be imported temporarily without EACCMA payment of duties if approval is given by the proper s.117 officer and, if considered necessary, the duties ordinarily payable on those goods are secured by deposit or some other form of security. As goods can only be temporarily imported for periods not exceeding 12 months, the deposit is intended to secure that duty in the event of the goods remaining in the country after the expiry of the authorized period of temporary importation. The following are the categories of goods that may be EACCMR imported temporarily: 132 - commercial travellers’ samples in reasonable quantities; - goods, including stage properties, imported for local exhibition or entertainment; - goods imported solely for renovation or repair; - touring promotional material not otherwise prohibited; - any goods and vehicles including motorcycles and trainers for personal use - such other goods and subject to such conditions, as the Commissioner may allow. (8) Goods which do not enjoy Temporary Importation privileges - Cinematograph films (except films of a maximum width of 16 mm and length of 500 meters imported for free exhibition for the sole purpose of promoting travel in the country therein 66

depicted) may not be imported under temporary importation privileges; - Consumable stores such as beverages of all kinds; - Goods imported by residents; - Goods which do not attract duty. (9) Procedure on Temporary Importations Importer must make application for temporary importation privileges in writing: - individual items as well as the distinguishing marks; - value of each item and duty thereon. The application is lodged and processed through Customs processing system, numbered and filed in an annual series. (10) Procedure on re-exportation On re-exportation of goods previously imported, the re- export entry is required. The goods will be accepted for re-export against a copy of the original temporary importation entry Form C17. Before such exportation the goods must be physically examined to confirm their identity. If in order, re-export will be permitted and repayment of the deposit or cancellation of the bond authorized. The importer’s copy of the form, together with the original deposit receipt, will be retained at the station of export. When temporary imports are re-exported at a place other than the place of importation, proof of export and refund of deposit must be forwarded to the port of original importation for the original record of the importation to be acquitted. (11) Refund of deposits Refund of deposit on temporary imports may be allowed, provided that the owner of the goods being exported gives notice of their intended export and presents them for inspection before such exportation takes place. 67

The claimant then submits an application in the Form C30, after payment has been effected, copies shall be distributed as follows: - Original To accompany the station monthly account; - Duplicate To be retained at the Refunds Section where refund of deposit has been made; - Triplicate To be sent directly to Chief Accountant; Headquarters; - Quadruplicate To the claimant; - Quintuplicate To the station where the original deposit was receipted for recording the details in the Register on Departmental Cash Deposits. Where only some of the goods are being re-exported proportionate refunds may be made provided prior written permission of the Commissioner is obtained. Where such prior permission has not been obtained the whole of the consignment becomes liable to duty on grounds of the contravention of the conditions for temporary importation. (12) Other deposits Security or deposits may be called for, to secure performance by the various persons of the Customs obligations which it is their duty to perform. However, these cash deposits are not subject to a limiting period of one year as imposed by section 144 of the Act. Such deposits may be refunded within any reasonable time as may be allowed. Deposits taken against provisional entries in terms of section 38 are estimates of the duty payable and should not be treated as deposits to secure performance of the importers obligations in the sense outlined in these paragraphs. 8. Remission, Refund and Rebate on Breakages and Shortages (1) Goods Lost, Pillaged or Destroyed 68

a. Remission of duty Remission of duty is the foregoing of the collection of EACCMA duty that is otherwise collectable because something s.141 unforeseen has happened to the goods. Remission of duty may be allowed on goods lost or destroyed by accident whilst: - still on board any aircraft or vessel on which they were imported; or - being loaded, unloaded or removed into a Customs area or warehouse; or - stored in a Customs area or bonded warehouse. Where an importer claims remission of duty on these grounds, a thorough investigation should be instituted in consultation with all port authorities. In the absence of any suspicion that the goods have gone into home use remission of duty should be allowed. The remission of duty shall be made on Form C.33 EACCMR143 b. Rebate of Duty EACCMA s.142 A rebate of duty is a waiver of duty ordinarily payable because certain specified conditions, such as the status of the importer or the end use of the goods, have been met at the time of importation or clearance of the goods. One such rebate is of duty payable on goods damaged before they are delivered from Customs control. The extent of the rebate shall be proportional to the assessed damage. The rebate of duty for goods damaged, pillaged, etc EACCMA s. under circumstances outlined above shall be allowed 142 only where the carrier or insurer of the goods acknowledges the damage, loss, etc and makes the appropriate allowance for the benefit of the importer; The refund application shall be made on Form C.34 EACCMR 147 c. Refund of duty “Refund” is the return of duty paid after it is discovered EACCMR 69

that the duty was not supposed to be paid, or that certain 146 specified conditions which make it inequitable for the duty to be collected were prevailing at the time the duty was paid. Refund may be authorized where: - any duty, or part thereof, has been paid on goods on which a remission of duty, as outlined above, is applicable; - the duty has been paid in error. A refund of duty paid in respect of goods which are EACCMA s. found to have been supplied not in accordance with the 143 contract provided the importer, with the consent of the supplier either:- - returns the goods to the seller in the same state they were imported; or - Destroys the goods without using them in any way. d. Claims in respect of goods that have left Customs control Claims in respect of duty said to have been paid in error are not rendered invalid merely because the goods have left Customs control. However greater care must be exercised to establish beyond reasonable doubt that the goods in respect of which the claim is made, are exactly the same goods which were imported. 9. Processing of Refunds (1) Rejection of refund claims An original refund claim when filed must have attached to it all supporting documents, e.g. quadruplicate Provisional Entry, original Payment Receipt, etc. The following procedure must be followed when rejecting refund “claim form” C34:- - A concise statement of the errors must be endorsed, signed and stamped at the back of the claim form and, where applicable on the copy of any adjusting entries submitted with the claim; - The rejected refund claim form and supporting documents are to be submitted to the designated 70

senior officer for confirmation; - If the rejection is confirmed the claim form and reasons for rejection will be registered before being returned to the claimant; - No partially checked claim may be rejected. Claim forms must be fully checked before rejection. (2) Time limitation for refunds No refund of duty shall be granted unless the person EACCMA s. claiming such refund presents such claim within a period 144 of twelve months from the date of the payment of the duty. Claims for refunds are not complete unless they are supported by the necessary evidence establishing the right of the claimants to such refund. Claims for refunds, which are not so supported, must be rejected. (3) Return of entries and refund claim forms to importers Refund claim forms on which acknowledgement of receipt has been endorsed by Customs may only be returned to the importer if rejected. To prevent unauthorized alterations of refund claim importers should not have physical access to them. (4) Freshly prepared entries and claims If after the rejection of an entry or claim the importer lodges a freshly prepared entry or claim, he must attach the copies of the rejected entry or claim to the respective copies of the freshly prepared entry or claim. The copies of a rejected perfect entry for goods subsequently entered imperfectly are to be produced and attached to the respective copies of the provisional entry. All declaration and refunds officers must be on the alert to detect and prevent attempts by importers to re-submit fresh entries or refund claims in order to chance a claim which has already been rejected. 71

CHAPTER 4 REPORT INWARDS/OUTWARDS 1. Reporting as the basis of Customs control One of the elements of Customs control is the mandatory EACCMA requirement for carriers to report their arrival and to provide a s.24 list of consignments on board the means of transport they are in charge of. These reports will then form the checklist against which Customs will verify that all the imported goods are cleared or otherwise accounted for. As the manual recording and acquittal of cleared consignments is tedious and prone to error electronic submission of these reports is desirable. For purposes of control, aircraft, vessels and other means of transport not having goods on board other than stores and passengers must be reported. (1) Aircraft or vessel to call at approved place Unless otherwise exempted from time to time by the EACCMA Commissioner, aircraft and vessels shall only land at ports or s.21 & 247 airports approved by him or her. (2) Persons in charge of means of transport to provide information In addition to the requirements to render a report in respect of EACCMA goods being imported, the person in charge of the aircraft , s.25 vessel or vehicle is required to: - Answer fully and immediately all such questions relating to the aircraft or vessel or vehicle, and all that is carried on board; - Produce any book or document, etc in his custody or EACCMA control relating to the means of transport and what is s.29 carried on board; and 72

- Produce the clearance documents issued for the means of EACCMA transport at the foreign port from which it is coming. s.25 (3) Vehicle to call at nearest Customs frontier office The person in charge of every vehicle arriving overland must, EACCMA before unloading or in any way disposing of such vehicle, report s.29 his arrival to a Customs Officer stationed at the border. EACCMR 27. No vehicle or goods imported overland may be removed from EACCMA the Customs area at which they were reported until after due s.29(2) entry has been made or until permission for removal has been granted by the proper officer. (4) Accidents and/or forced landings When any aircraft or vessel is wrecked or compelled to land, the EACCMA Master or agent of such aircraft or vessel must immediately s.28 report the incident to the nearest Customs office and must: - produce the documents relating to the aircraft or vessel and EACCMA its cargo, crew and passengers; s.33 - not allow any goods to be unloaded or any passenger to leave the vicinity of the aircraft or vessel without Customs authority. (5) Report of aircraft, vessel or vehicle The Master or agent of every aircraft or vessel, whether laden or EACCMA in ballast, must (except where otherwise provided in any s.24 regulations) within 24 hours of arrival, report such arrival as well as the cargo and stores thereon. EACCMR 11 & 121 Every report must show the following goods separately:- - Goods to be removed in transit; EACCMA - Goods for trans-shipment; s.24(2) - Goods which are to remain on board for other ports in the EAC; - Goods for re-exportation on the same aircraft or 73

vessel; - Goods consigned to Inland Container Terminals; - Goods consigned to Inland Transit Sheds. An aircraft which lands from a foreign airport will, at EACCMA subsequent airports it may land, still be deemed to be arriving s.2(2)(e) from a foreign port. When an aircraft or vessel calls at more than one port or place in EACCMA a Partner State, a separate report must be made at each such port s.2(2) or place. (6) Forms of report for aircraft and vessels a. Inward/Outwards report for vessels (Form C.2) EACCMR b. Inward/Outwards report for aircraft (Form C.4) 11 & 12 c. Inward/Outward report of air cargo (Form C.5) d. Packages for which no air waybill of bill of lading has been issued (Form C.3) Notes on reports inwards/outwards The weight or volume of the cargo reported on the Form C.2 EACCMR must match those reflected on the relevant consignment note 17 and 108 and must be the same measures used to compute the freight payable on the goods. Where no freight is being charged then the weight or measurement must be those normally chargeable for the like goods. The Form C.5 is to be used only where there is insufficient space on the Form C.4 to list the cargo on board the aircraft. Both the C.5 and the C.3 are to be attached to the C.4. The report on packages or parcels on which no consignment note was issued (Form C.3) must be submitted at all times. Where there are no such packages a “Nil” report should be made. In respect of charter or other aircraft used on non-scheduled flights, the officer may demand production of any aircraft log book or other document carried by an aircraft to verify the airport of first departure and intermediate stops made by the 74

aircraft from the start of its flight to the time of arrival at an EAC Customs Airport, and thereby to ensure that he is in possession of all cargo manifests and passenger lists from the airport of first departure and from each intermediate stop en route. (7) Forms of report for dhow Where a dhow reports inwards at any port carrying cargo for EACCMR which there is no manifest a statement is to be taken from the 11 Dhow Master (Nahodha) on Form C.2, and this may be accepted as the inward report and manifest. In such cases, the cargo must always be carefully checked against the dhow master’s statement. (8) Forms of report for vehicles EACCMA s. 29 Particulars of a vehicle and goods (Form C.2). EACCMR 29(2) A Form C.2 is to be required only in respect of the following:- - Load carrying vehicles, laden or in ballast; - Private vehicles used exceptionally for the carriage of trade goods. The temporary importation papers of other vehicles will be EACCMA accepted for report purposes without the production of Form C2. s.117 (9) Signing and sealing of pages Each page of a report, other than that on which the declaration is EACCMR signed, must be initialled by the Master or his agent, who is also 14 required to number the pages and to seal them together. Where the proper officer deems it necessary he or she may require that the report be signed in his or her presence. Where the proper officer considers it necessary, transcripts of EACCMA electronically submitted reports may be signed and initialled in s.187 the same manner and submitted to the proper officer EACCMR Whenever a thumb-print is affixed by an illiterate master to a 13 vessel’s inward report or any other official documents appertaining thereto, or if the signature is written in a foreign- 75

language script, the name in English should be added immediately underneath such mark or signature, and a Customs officer must sign as witness. (10) Reports in respect of passengers on board Persons in charge or vessels and aircraft, or their agents, must submit the following reports in respect of passengers on board: - List detailing names of passengers disembarking and EACCMA those remaining on board (Form C.5) s.24 - Unless permitted to do so by the proper officer, no EACCMR person may disembark before the correct list is produced. 15 (11) Reports in respect of stores on board Persons in charge or vessels and aircraft, or their agents, must submit a statement of the stores on the aircraft or vessel (Form C.6). (12) Reports in respect of crew A declaration by each member of the crew of all dutiable goods in his or her possession (Form.C.7). Note: Where it is known that a vessel is making a temporary stay in port of duration of twelve hours or less, the demand for a Form C.7 may be dispensed with at the discretion of the proper officer. Such dispensation and the reason therefore should be noted on page 4 of the Ship’s Blue Book. (13) Description of goods on report The report in respect of goods being imported must contain the EACCMR following information: 18 - The description of every package or all cargo in bulk in accordance with the description thereof on the consignment note; - The weight or cubic measurement of the cargo as used to calculate the freight. Note: Where no freight is charged, the weight or measurement EACCMR used will be that normally chargeable for a similar kind 19 76

and quantity of goods. In the case of groupage cargo, it is the responsibility of the EACCMA master or agent of the ship who must present full details of cargo s.24 as listed in the house bills and master bills of lading. All Bills of Lading issued by other parties must be attested by the Master or Ship’s Agent. (14) Report on cargo remaining on board The following certificate must be given on the inward report in respect of cargo intended for discharge at other local ports: “The under noted quantity of cargo is hereby reported for discharge at other local ports or places in the Partner State.” ------------------------------------ (kg) (Or other appropriate unit of quantity).” A similar report should be made for cargo remaining on board and destined for discharge at a foreign port. The proper officer may require that cargo remaining on board intended for either discharge at other ports in the Customs Union, or for exportation, be fully reported as detailed above. (15) Amendment of report Where there is an obvious error the proper officer may permit EACCMR the report to be amended to correct particulars such as 26 destination and ownership of goods or to furnish a supplementary report to cover any inadvertent omissions of goods. Application to make amendments must be in the form of a letter giving reasons for the discrepancy and signed by the Master or his agent. A Form. C. 9 must be attached to the letter. A supplementary manifest shall only be approved by the proper EACCMR officer. Once approved, the manifest is validated and 216 incorporated to the master manifest after payment of requisite manifest amendment fee of USD10. Amendments caused by submission of lists of cargo individually in the case of Groupage Cargo are liable to amendment fees under regulation 216 and they must be presented through and by the Master or his agent. 77

a. Conditions governing amendment of reports In the case of goods found to be short of report, before EACCMR amendment is authorised the proper officer must satisfy himself 27 that the goods: - were not shipped, stolen or destroyed before the arrival of the aircraft or vessel; - were discharged and landed at a previous port; or - were over carried and landed at a subsequent port; or - having been over carried, they were being returned and landed. Notes: Evidence of non-shipment will be a ‘manifest collector’ from port of loading. Amendment of a report when the master or his agent is unable to comply with these conditions should be approved only as directed by the Commissioner or other designated senior officer. b. Filing of amendments Approved applications for amendment of report must be cross referenced with the report to which they refer and filed in the ship’s file. The particulars of any shortages are to be recorded in the discrepancy register while the entry number must be endorsed on the Form C.9 in the case of excess landed cargo. 2. Electronic control of Manifests Wherever possible electronic systems should be used for manifest control. Such a system must allow the master or agent to present an electronic manifest to Customs, whereupon the system automatically matches the manifest data to Customs entry data thus striking off the consignments that are accounted for. The system should permit amendments to the data in order to record any overages or shortfalls following Customs examination of the consignment. 78

The system should also automatically generate Want of Entry EACCMA Lists for in respect of cargo that remains uncleared after the s.34 statutory period of 21 days within which imported goods must be cleared or otherwise accounted for. No person shall access, transmit to, or receive information from EACCMA the Customs computerized system unless that person is a s.188 registered user of the system. Any person who wishes to be registered as a user of the system must apply to the Commissioner. It is an offence to: EACCMA s.189 - gain or attempt to gain unauthorised access to the system; - make unauthorised disclosures of information obtained from the system; - receive and then disseminate information from the system without authority; or - falsify any record or information stored in any Customs EACCMA computerised system. s.192 3. Procedure when Report is presented (1) Acceptance of report The officer who accepts the report of an aircraft, vessels or vehicle, is responsible for ensuring that:- - it is made in the prescribed form; - the form has been properly completed and is signed by the Master or his agent; - where the report consists of more than one page, the pages are initialled, numbered and sealed; - the requisite documents are attached; and - it is presented within the prescribed period. Where any alterations have been made, they are to be initialled 79

by the person who signed the report, by the officer receiving the report and then countersigned and stamped by the proper officer. (2) Numbering of reports Each report must be given a separate rotation number in an annual series beginning with”1” and the date of arrival must be clearly endorsed on the top right-hand corner of the report and every document filed with it. Vessels arriving from a place outside the Customs Union may EACCMA not proceed coastwise to other ports within the Customs Union s.100 unless a Transire in Form C.27 covering the goods on board is issued at that port. EACCMR 123 In addition, in the case of dhows, the Customs Warehouse date is to be written conspicuously in red ink on the face of the inward report. (3) Inward foreign rotation register Separate inward foreign rotation registers for aircraft, vessels and vehicles are to be kept at each station, and particulars of all reports presented are to be recorded in the appropriate register under the following headings in respect of each type means of transport: a. Vessels: - Rotation number; - Date of arrival; - Ship’s name and shed where cargo discharged; - When arrived; - Agents; - Date Customs Form C.10 lodged; - Customs Warehouse date; - Date Want of Entry List received; - Number application to amend received; 80

- Date manifest completed; - Total number of packages landed; - Name of compiling officer; - Date sent to audit; - Date returned. b. Vehicles: - Rotation number;; - Date of arrival; - Make of vehicle and registration number; - Name of owner; - Name of driver; - Number of packages carried; - Date sent to audit; - Date returned. Only the vehicles for which a Form C.2 has been accepted are to be recorded in this register. Vehicles imported under cover of a carnet, triptyque, deposit C.32will be recorded additionally in the appropriate registers. (4) Delays or omissions to be reported All serious anomalies involving delays or omissions should be reported to the designated senior officer, particularly in respect of cases where:- - the report of an aircraft, vessel or vehicle is to be made within the prescribed period; - the master or his agent fails to make application on the Form C.9; - there is delay in amending (where necessary) the report of any aircraft, vehicle or vessel. 81

4. Procedure when Entries are presented before arrival of Aircraft or Vessel (1) Pre-entry of Cargo Entries for goods not yet landed may be registered or delivered EACCMA for checking: s.34 - when the cargo manifest has been presented to the proper officer; and - Within a period not exceeding one week of the date on which the aircraft or vessel (or other means of transport) is expected to arrive at the port of discharge agreed. (2) Certificate to be attached to manifest When cargo manifest is presented before the arrival of the EACCMA importing aircraft or vessel, the following declaration, signed by s.24 the agent, must be sealed and attached to the cargo manifest before it is presented. EACCMR 11 & 12 CERTIFICATE TO BE ATTACHED TO CARGO MANIFEST PRESENTED PRIOR TO THE ARRIVAL OF THE VESSEL “The Proper Officer ……………………… (Port of discharge) Ship’s Name …………………....................................................... The ……… (Ship’s Name) …….................is expected to arrive at ……............... (Port of discharge) ……. on …………… (Date)….............................................. In order to facilitate pre-clearance of the cargo by the various importers, I attach sealed hereto …… (No.) ………… pages of manifest containing the true particulars of the cargo to be landed by the said vessel. I undertake to furnish any necessary amendments to the attached manifest at the time of making the report of the arrival of the vessel in accordance with the provisions of EACCMA24 of the EACCM 2004. Ship’s Agent ................................................................... Signature of Ship’s Agent ……………………….................................. Date …………………......................................... 82

5. Inland Container Terminals and Transit Sheds In terms of Section 12 of the Act the Commissioner is empowered to appoint Customs areas, transit sheds, examination areas, etc and to specify conditions governing the usage of such places. An Inland Container Terminal (or Depot) is an inland dry port EACCMA or area situated away from, and auxiliary to the main port of s. 12, 13. landing appointed by the Commissioner for purposes of 14, 15 & receiving and holding landed and unentered goods pending 16 final clearance. Inland Transit Sheds are similarly appointed for the same purpose but differ from Inland Container Terminals in that they are operated by persons other than operators of the port of landing. (See the information technology chapter for electronic control of movements of imported goods from place of offloading to the inland Container depots) (1) Transfer of cargo from port of entry to ICD Once cargo has been manifested by the master or agent, the same is uploaded into Customs Information Systems automatically and is then available to the various users. (2) Processing through the Customs systems The procedure outlined is followed to control the transfer of cargo from the port of entry to the ICDs or ICTs: - The inland transit shed/CFS operator makes a request for transfer of cargo destined for clearance at their CFS online through Customs Systems. - The system generates an in-house manifest for the particular house as per request and gives a transaction number. - The in-house manifest is then approved by the proper officers. 83

- The approved online manifest is accessible to enable them facilitate transfer of the cargo. They will issue a gate pass on the cargo approved for movement The Border Control Officers at the gates are able to confirm the approval status of the goods and the designated destination. The BCOs confirm the physical container marks & numbers produced at the gate against the in-house manifest transaction number. A seal is put on the container and the same is captured in the in-house manifest together with the registration of the vehicle carrying the goods. Border Control Officers will then use the gate pass issued by Port Authorities to validate the release of the containers for onward movement to the intended CFs. (3) Transfer of cargo to ICD by rail The procedure for transfer of goods imported by rail is as follows: i) The railway authority must request of cargo to be moved by rail; ii) Manifest data for goods to be moved must be manually identified or isolated for control or automatically moved to a cargo control system where it exists; iii) Where necessary and possible the goods may be sealed; iv) The container terminal of Ports authority must load the sealed containers onto wagons ready for onward transfer out of port; v) A gate-out advice will then be generated by the container terminal or Ports Authority to facilitate the movement of the goods. This advice may also be automatically transmitted to the electronic cargo control system and serves as a validation of release. The railway authority will prepare and submit a “Train Manifest” with details of- - Railway Wagon No - Container No. 84

- Bill of Lading No. - Name of Vessel and Arrival Date; - Voyage No. - Ships Agent or Clearing and Forwarding agent; - Destination; - Date of Departure from the port. (4) Amendment of Destination Where for any reason an importer wishes to change the destination EACCM of his containers originally manifested for clearance at the first R 26 port of entry for clearance at the Inland Container Terminal or Transit Shed, or vice versa, he will submit his request through the Ship’s master or agent who will make a request in Form C. 9. The application must be supported by a letter giving the reasons for the change for consideration and approval by the designated senior officer. (5) Transfer of cargo to ICD by Road No goods consigned to Inland Container Terminals may be transported by road unless this is specifically sanctioned by the designated senior officer. In such cases, the procedure in respect of transport by rail will apply except that instead of Train Manifest, the owner of the Inland Transit Shed or Terminal will prepare a “Statement of Containers by road”; an in-house manifest supported by either a particular or general Custom bond. The in-house manifest is accessible to the officer in charge of the terminal or Transit Shed who will then await arrival of the cargo. (6) Direct transfer of grain from vessels to Grain Bulk Silos To transfer grain from the vessel to the Grain Bulk Silos the following procedure is followed: i) Manifest data for goods to be moved must be manually identified or isolated for control or automatically moved to 85

a cargo control system where it exists; ii) Grain bulk handlers will make request of grain to be moved by conveyor to their Silos; iii) The system generates an in-house manifest against the requested consignment which is then approved by the manifest officer; iv) The Customs Officer at the Quay shall witness the entire process of cargo transfer from the vessel to the silos. On completion, s/he shall input the actual weight received in the system. (7) Procedure at Inland Container Terminal and Transit Sheds Upon arrival of the railway train, the Railway Authority will report the arrival of the wagons to the Officer in charge of the terminal by presenting the train manifest and the gate-out advice, within twenty-four hours from the date of arrival of the wagon train. The containers will be physically tallied and receipt of the goods acknowledged in the system. Where goods in containers are transported by road physical tallying is done against statement of Containers by road and the integrity of the seals and other particulars verified before acknowledgement of receipt of the goods in the system. The Statement of Containers by road (in-house manifest) will be handed over to the operator C.11 for bond cancellation at the initial port of entry. Where there is evidence of tampering of seals, thorough internal examination must be carried to establish any possible shortages. In the event of shortages being found the matter will be reported to the officer in charge for further investigations. 6. Manifest Reconciliation The manifest reconciliation involves comparing electronic declarations of consignments with copies of cargo manifests submitted by the master/agent to ensure that all imported goods were actually declared and that the marks and numbers of the un- entered packages on the list agree with those shown on the inward 86

report. (1) The Discrepancy Book At larger ports where considerable quantities of goods are shortlanded an officer is to be deputed to be the Discrepancy Officer. He will maintain a Discrepancy Book in which particulars of all whole packages, certified as shortlanded by the Ports Authority or by the ship’s agent are to be recorded. Particulars of the subsequent arrival and clearance of the goods are also to be recorded in the Discrepancy Book which will be titled as follows:- The Discrepancy Book Left-hand Page Right-hand Page (Details of shortlanding) (Details of subsequent arrival) Shortlanded item number Date entry was registered Bill of Lading number Name of ship by which goods subsequently arrived and Entry number and date (if any). Date of arrival Consignee’s name Bill of Lading Number Marks and numbers of packages Description of packages and goods shortlanded Description of goods Entry number and date Initial of checking officer Remarks. (Date any claim on C.39 is endorsed). (2) Compilation of Ship’s File (Inwards) Inward ship’s files are compiled after the cargo manifest has been presented to the Manifest Officer. The purpose of compiling the file is to ensure that:- 87

- All the goods reported have been satisfactorily accounted for; - Amendments have been supplied by the Master or by his agent (and approved by the officer in charge of the station) in respect of shortages and excesses, or any errors or omissions which may have been found; - Any unentered goods have been removed to the Customs Warehouse. a. Documents to be included in Ship’s File The following documents (where appropriate) are to be included in the inward ship’s file:- - Inward Report; - Parcel List; - Passenger List; - Stores List; - Crew Declaration Form; - Ship’s Blue Book; - Report of cargo for other ports; - Report of cargo remaining on board for exportation; - Application for break bulk or to unload prior to entry ; - Want of Entry; - List of goods warehoused by Customs; - Amendment letters from the ship’s agent, and copies of any other letters relating to any entry or to the ship and her cargo; - The short landed and Excess Landed Lists supplied by the Ports Authority; - The Short landed and Excess Landed Lists prepared by Customs; - Discrepancy Notes; - Acquitted exportation voucher from the Carnet de Passages en Douane (Pass Book) or Triptyque (Pass Sheet) in respect of vehicles exported after been imported against a carnet. 88

b. Amendment summary and compilation Notes After the ship’s file has been properly assembled the manifest officer must compile an Amendment Summary (Form F.95) and compilation notes (Form F.96). The Amendment Summary must be reviewed and approved by the proper. c. Officer in charge to check ship’s files The officer in charge of the station is responsible for ensuring that the compilation of the ship’s file is done properly. Accordingly he is expected to undertake such occasional test checks to verify that this has been done. When he is satisfied that a ship’s file has been properly compiled, he is to sign the following certificate on the last page of the report:- “I am satisfied that the ship’s file has been properly complied and that all goods reported have been duly entered or otherwise satisfactorily accounted for (*with the exception of the items recorded on the Shortlanded List). Signature ……………………......................................................... Designation …………………............................................................ Date …………………………................................................... *Delete if inapplicable (3) Short landed and Excess Landed Lists Separate lists of short landed and excess landed goods are to be maintained. The particulars of such packages are to be recorded on whichever list is appropriate. Where unentered goods do not appear on the Want of Entry List, particulars must be recorded on the Shortlanded List as well as in the discrepancy book. (4) Accounting for Goods Shortlanded Where goods which are reported for discharge are not duly unloaded and deposited in a transit shed or Customs areas, the Master or his agent must account for such goods to the 89

satisfaction of the proper officer or to pay the duty due thereon. a. Short landed List Short landed lists should be compiled and distributed to relevant offices where necessary. b. Short landed duty free goods Where goods listed on Short landed List are clearly duty free under the EAC External Tariff (and not by virtue of rebate or remission in terms of, say, section 138 of the Act), an endorsement to that effect should be made on the list and no further action need be taken. c. Short landed dutiable goods When dutiable goods are reported for discharge and are not EACCM accounted for, a letter of demand for duty due thereon is to be A s.27 sent to the agent of the aircraft or vessel concerned. A copy of that letter should be filed with the original Short landed List. Once the duty payment has been made, the item in the Discrepancy Book and on the original Short landed List is to be written off with particulars of payment. If there is any undue delay in the payment of duty by the Master or his agent, the matter should be reported to the Commissioner for further action. Such duty may be refunded at any time within 12 months of the EACCM date of payment thereof on production by the agent of a claim R 144 supported by acceptable evidence accounting for the goods. (5) Goods reported, entered but shortlanded or overcarried to another port It can happen that dutiable goods reported for discharge and for which the importer (or his agent) passes an entry and pays duty, are:- - Overcarried and subsequently returned by the same or another aircraft or vessel; or - Shortshipped at the port of shipment and subsequently arrive by another aircraft or vessel; or 90

- Overland at another port and subsequently returned by another aircraft or vessel. When this happens such goods may be admitted without payment of duty provided the importer: - produces a letter from the agent for the first aircraft or vessel confirming that the goods are those previously reported; and - requests for cancellation of the original entry and transfer of the duties paid from that entry to the new entry. Once approval is given, a fresh entry in C17 is registered and the funds carried onto the new entry. Details of this transaction are then endorsed in the Shortlanded List and Discrepancy Book. Note: Where goods are short-shipped, overcarried, etc after having been reported but before being entered, they are entered as if they being imported for the first time and the respective Shortlanded list endorsed accordingly. When goods to which the circumstances mentioned above apply are eventually imported, the items of the Shortlanded List and in the Discrepancy Book in respect of the first ship’s report may be written off when: - the ship’s agent confirms in writing that the goods subsequently imported are those previously reported and over carried short-shipped or overlanded at a previous port, as the case may be; and, - Evidence of shortlanding of the goods has been produced and confirmed. a. Evidence of shortlanding of the goods The List of shortlanded Cargo (Final Outturn) furnished by the Ports Authority, air shed operators for air cargo or Master may be accepted as a certificate of short landing, with suitable cross- referencing being made where the list refers to more than one consignment. 91

b. Dealing with claims of non-shipment When goods reported for discharge are not landed and the agent claims they were not shipped, the claim is to be substantiated by the production of evidence of short-shipment in the form of an appropriate certificate, attestation or statement from the Custom Authorities at the port of shipment or other satisfactory source such as: - shipping/airline contractors; - the shipping company or agent concerned; - the exporter himself; etc. Such evidence must be corroborated by a certificate from the Ports Authority or airport confirming the non receipt of the consignment. (6) Goods landed and cleared at another port Where goods reported for discharge are not landed and the agent claims they were landed and cleared at another port, he should be required to produce evidence from the Customs authorities at that port confirming his statement. If the agent fails to produce the evidence, then, after a period of ninety days from the date of inward report, a claim is to be made for the duty payable on the goods. (7) Goods lost or destroyed at sea When the ship’s agent claims that shortlanded goods were lost or EACCM destroyed at sea, the items in the Discrepancy Book and on the A s.28 original shortlanded List may be written off on production of:- - a certificate signed by the Master certifying that the goods were so lost or destroyed; or - a copy of the Master’s protest made at the first port of call after the loss of the cargo; and - a certificate of shortlanding from the Ports Authority. In such cases, if the vessel is still in port, or if it is a vessel which EACCM calls regularly, the boarding officer should check the Master’s R 28 certificate against the ship’s log-book. If there is no mention in the ship’s log-book of the loss or destruction the matter should be 92

referred to the Commissioner. (8) Shortlanded goods that are the subject of a claim against the carrier When reported goods are shortlanded and a claim by the owner is paid by the agents of the aircraft or vessel, then the items in the Discrepancy Book and on the original Shorthanded List may be written off on production of:- - written confirmation by the owner that he has not received the goods; - a certificate of shortlanding; - a certificate from the agent certifying that a claim by the owner has been paid; - evidence of payment of the balance of the claim (if any) by the insurers. All certificates are to be filed with the original Shorthanded List. As it may be profitable, in the case of high-duty goods such as potable spirits and tobacco goods, for the carrier to settle the owner’s claim for the value of the goods rather than paying the duty on them, cases where such goods are involved should be scrutinised much more closely to detect or prevent fraud. In the absence of certificates from the agent and the Ports Authority or if the stack tally shows that the goods were landed, a demand for the duty payable on the goods is to be made. 7. “Duty Not paid” cargo removed coastwise Aircraft or vessels arriving from abroad or cleared for coasting EACCM may be permitted coastwise carriage of local or duty paid goods A s.98 as well as “duty not paid” goods provided the duty not paid goods are completely separated from the rest of the goods. It is the duty of the officer in charge at the port of destination to EACCM account for “duty not paid goods” which are transhipped for A s.100 removal coastwise. If any such goods shown in the “Duty not Paid” column of a EACCM transire are not produced at the port of discharge, the officer in A s.123 charge must obtain confirmation from the trans-shipment port that 93

the goods were in fact shipped. & 124 In receipt of such confirmation he will address the owner who subscribed to the trans-shipment bond to cover the missing goods and demand payment of the duty involved. If duty is not paid accordingly, a penalty to bond shall be required from the principal guarantor. 8. When claims for deficiencies in packages are admissible Where damaged packages are landed under supervision and are conveyed direct to a breakage room in a transit shed and examined, it may be assumed that any shortages found are due to pilferage on the voyage. Refunds may be allowed accordingly on the basis of the examination account recorded on the relative shortage and breakage voucher. If on examination, shortages are found in a broken package which has not been removed direct from a vessel to breakage cage under supervision, the officer must record in his examination the fact that the package was not landed under supervision and state the reason examination is being made. Shortages in such packages are to be regarded as pilferage in the Partner State, and no refund will be allowed. If an examination reveals a shortage due to breakages in a package apparently landed intact, then, where it is evident the shortage is due to an accident, confirmed by the broken article still in the package, a refund may be allowed on the basis of the examination account recorded. Where an examination reveals shortage in an intact package, refund will only be allowed if the importer produces evidence of short packing by the supplier or manufacturer together with an appropriate credit or adjustment from the supplier or manufacturer. It must be emphasised that damaged packages other than those examined in the normal course of examination or examined during supervised transfers from the vessel, are only to be examined at the request of the owner, and the officer’s examination account must indicate that the examination was made at the owner’s request. 94

9. Arrival Overland of Vehicle The person in charge of every vehicle whether or not such vehicle EACCM is conveying goods and whether or not such goods (if any) are A s.29 dutiable arriving overland shall, before unloading or in any way disposing of such vehicle or any goods therein: - report his arrival to the officer stationed at the Customs at the border; - furnish on the prescribed form such information as may be required concerning the vehicle or any such good; - make and subscribe a declaration to the truth of all particulars contained in such form; - fully and immediately answer all relevant questions put to him by the proper officer; - produce all consignment notes or other relevant documents demanded of him by the proper officer; and - make due entry of the vehicle and of any such good. (1) Inward Report of Vehicle and Goods When the person in charge of an empty load-carrying vehicle or a EACCM vehicle carrying trade goods arrives overland and reports to the A s.29 proper officer he should complete Form C.2 in duplicate. An outward manifest duly processed by the Customs authority at the port of export may be accepted in lieu of the form C.2. The officer will stamp and sign both copies and return the duplicate to the person in charge of the vehicle. No vehicle or goods to which this Act applies shall be removed from the Customs area until after due entry thereof has been made or until permission for removal has been granted by the proper officer. (2) Escort of vehicles The Commissioner may allow vehicles to proceed for clearance at EACCM inland stations under Customs supervision. When this happens R 29 the importer will bear the cost of such escort. 95

(3) Compilation of vehicle manifest The report of goods contained in the original Form C.2 or separate manifest attached to the form, will be checked physically by the officer at the border station and allocated an annual rotation number. Forms C.2 and related documents are to be forwarded to a central filing registry. (4) Monthly traffic return At each month-end, a return of all traffic passing through the border post will be compiled from station records and submitted to the Commissioner. The return will include details of both inward and outward traffic, as per the Rotation Register . 10. CLEARANCE OF DHOWS The procedures for the clearance of vessels outlined above generally apply, mutatis mutandis, to dhows. However, certain peculiarities and special arrangements in their clearance require that the clearance of dhows be covered separately. Where the procedures outlined for the clearance of other vessels conflict with the provisions of this chapter, the provisions of this chapter shall prevail. (1) Unmanifested dhow cargo When a dhow arrives from a foreign country carrying cargo in EACCM respect of which there is no manifest, a statement is to be taken R 11 from the Master on the Form C.2. This statement is to be taken as the inward report and manifest of the vessel and all cargo will then be checked against it. (2) Commercial goods imported by the Dhow Master and Crew It frequently happens that, in addition to personal effects or EACCM articles for their own use or consumption, the Master and A s.25 members of the crew of an arriving dhow have on board unmanifested commercial goods of their own. Accordingly, the boarding officer is to request the Master and each member of the crew to declare any such goods and full particulars on the Crew Declaration Form C.7. Private commercial goods that remain on board a dhow that is 96

about to depart after having landed are to be checked by the boarding officer and the description and quantity thereof recorded on the outward manifest. Outward clearance is to be withheld pending the satisfactory resolution of any discrepancies that may be found. In the case of such a dhow clearing for a coastwise voyage, a list of commercial goods remaining on board is to be made in triplicate and one copy being attached to each copy of the transire. Note: Foreign goods consigned to one port must be EACCM discharged at only that port. It is an offence to do A s.27 otherwise. (3) Cargo unloaded at first port of call If only part of the cargo on board is landed at the first port of call, EACCM and the cargo remaining on board is not covered by a separate A s.98 manifest for each port of final discharge, then the inward manifest must show details of- - All the cargo carried; - All the cargo landed; and - All the cargo remaining on board. In the case of a dhow clearing outward directly to foreign from the first port of call, any foreign cargo remaining on board must be shown as such on the outward manifest. Where the port of final discharge is another local port, a copy of this inward manifest will be handed to the Master for production to the proper officer at the next port of discharge, whilst a certified copy of the manifest will be dispatched directly to that port of destination. Where a dhow is calling on several local ports, this procedure is repeated at each subsequent port until all the goods have been fully accounted for. (4) Signing of manifests and other Customs documents Whenever thumb-prints are affixed by illiterate Masters (Nahodhas) to dhow manifests or other official documents, or 97

signatures are written in a foreign-language script (e.g. Arabic or an Asian script) the name in English should be added immediately underneath such marks or signatures, and the responsible Customs officer must countersign as sign as witness. (5) Loading and Clearance of Foreign going Dhows a. Reporting outwards of dhow Reporting outwards of a dhow shall be made by the Master in the EACCM Form C.2 and loading of cargo for export cannot commence A s.74 before the Form C.17 is passed. EACCM R 88 b. Application for clearance No dhow whether laden or in ballast, may depart to a foreign port EACCM unless it has been granted a certificate of clearance in the Form R 107 C.14. The Master or agent of any dhow proposing to depart to a foreign port is required to make application for a certificate of clearance, and he must at the same time- - Submit the properly completed outward manifest (Form C.2) - Produce to the proper officer all such documents as he may require relating to the vessel, its cargo, stores baggage, crew and passengers; - Answer all questions which the proper officer may ask in relation to the vessel and its cargo, stores, baggage, crew and passengers. c. Clearance in ballast A dhow is deemed to be “in ballast” when it is carrying only passengers, their baggage and stores When application is made for the clearance of a dhow in ballast, then the words ” in ballast” are to be written in the space provided for the declaration of cargo on the Form C.2 as well as on the certificate of clearance. 98

d. Officer’s responsibilities When satisfied with the outward declaration the officer will complete and sign the Form C14 in duplicate and distribute as follows: Original - handed to the Master or agent of the dhow; Duplicate - filed in the ship’s file at the port of departure. The rotation number of the outward manifest must always be written on the certificate of clearance and outward rotation registers for dhows must be maintained. e. Limitation as to size of vessel for certain exports The following goods may not be exported on a dhow, or any 3rd Sch. other vessel of less than two hundred fifty tons register- PART B, Item 2 - warehoused goods; - goods under duty drawback; - Transhipped goods. If any such goods are found on board a vessel of less than two hundred and fifty tons register, they are to be seized and the matter reported immediately to the officer in charge of the station for further action. (6) Carriage Coastwise by Dhow under “Cheti cha Ruhusa” a. Procedure at destination after coastwise voyage is advised or completed Officers at the port of destination, who are advised of the pending arrival of a dhow by way of outward manifest forwarded from the port of departure, must report to the Commissioner or other designated senior officer if the dhow does not arrive within a reasonable period after the date of its outward clearance. On arrival of a dhow at its destination, after a coastwise voyage, the proper officer must, if he considers that an unreasonable time has been occupied in the voyage, interrogate the Nahodha and 99

obtain an explanation of the delay. If the explanation is satisfactory, as for example, that the dhow has experienced rough weather or been compelled to undertake emergency repairs en route, the explanation should be endorsed on the original and triplicate transires and accepted. When the cargo is landed and checked, an explanation of any discrepancy is to be endorsed on the transire, and the signature or other attestation of the dhow master obtained. Any serious discrepancies, including unsatisfactory explanation of the delay, should be reported to the Commissioner or other designated officer. Additionally the Master should be charged under section 203 of the Act and duty payable on any shortages be collected from him. The processing of the transire can be summarized as follows: - Check transire to verify authenticity and that it was properly signed by an officer at the port of departure - Allocate and endorse an annual rotation number - On completion of discharge – when all the cargo described therein has been released, entered or otherwise accounted for - the triplicate transire is to be endorsed by the proper officer “Certified Correct” or “Certified discrepancies as follows”, as the case may be, and returned to the port of origin. b. Coastwise voyage to unapproved place The Masters of dhows, who apply for permission to proceed to EACCM unapproved places for the purpose of discharging cargo there, A s.98 will be issued with a special permit to do so (Cheti cha Ruhusa) in Form F.80 by the officer at the port of departure. The Cheti cha Ruhusa is issued on the following conditions: - on completion of the discharge at an unapproved place, the Master must obtain a certificate of landing endorsed on the permit by a Customs officer or other Government official, or in the absence of any of these, a certificate of receipt signed by the consignee; 100