GAZETTE NOTICE NO. 6930

PURSUANT to the provisions of section 12 of the East African Community Customs Management Act, 2004, the Commissioner of Customs and Border Control (herein referred to as the commissioner) prescribes the Guidelines set out hereto as the conditions to be fulfilled by an applicant to operate a Customs Area carrying on the business of a Special Economic Zone: PART A–SEZ DEVELOPER 1. The developer shall make an application to the Chief Executive Officer (CEO) of Special Economic Zones Authority (SEZA) for the gazettement and licensing of a Special Economic Zone (SEZ) otherwise known as Zone. 2. A site visit shall be made by the CEO of SEZA and Commissioner and/or their representatives to assess the suitability of a zone before gazettement and licensing by the Cabinet Secretary for the Ministry responsible for SEZs and SEZA, respectively. 3. Once gazetted by the Ministry and licensed by SEZA, the developer shall make an application to the Commissioner for appointment as a Customs Area. The application shall be supported by the SEZ license, the Gazette Notice, layout map highlighting areas to be declared as Custom controlled, architectural drawings, co-ordinates, survey (satellite) map, Title or lease documents, Tax Compliance Certificate (TCC) for the company and all directors, current List of Directors (CR12) and any other document the Commissioner may deem necessary. 4. Once the SEZ has been appointed as a Customs Area and ready to commence development/ operations, the developer shall be issued with a facility code to enable them access the Customs Systems. 5. The developer shall submit to SEZA, and the Authority shall share the submission with the Commissioner, a development plan which shall include phased development where applicable, a detailed Master List, and the Bills of Quantities for the materials to be used in the development of the SEZ or the projected phase. 6. The developer shall execute a Particular Security Bond CB16 for every shipment to cover the construction materials which shall be retired upon confirmation that all the materials have been fully utilized for the particular project subject to extension after one year if the project is not yet completed. 7. The developer shall also execute a General Security Bond CB21 to cover the entire goods/ equipment/ materials within the Zone. 8. The developer shall ensure that the Zone has access to a National Highway and/or Railway line. 9. Upon completion of construction, whether phased or complete, the Developer shall ensure the following before SEZA and the Commissioner can allow operations: (a) A properly graveled and /or paved road or railway connection between the zone/developed area and the national highway or railway line. (b) A strong perimeter fence of at least 2.5 meters from the ground made from: (i) Masonry/concrete blocks (ii) Chain link (iii) Steel mesh (iv) Electric fence (v) A combination of any of the above (c) All designated entry and exit points at the Zone are manned at all times (during and after the specified hours of business) by armed government security or a reputable security service provider, own employed security personnel, and covered by CCTV cameras. (d) Reasonable functional floodlights are installed to light up the Zone. (e) A suitable one-stop-shop office accommodation including proper sanitation facilities for use by the Kenya Revenue Authority (KRA) officers and staff from other relevant Government Agencies as well as other authorized users of the facility. (f) Computer facilities that are compatible with the KRA online/electronic systems and other suitable office equipment for use by the resident KRA officers. The offices or spaces shall include but not be limited to main office, entry and exit gate offices, CCTV surveillance room and parking space. (g) A customs gatehouse in and out of the gazetted Customs Area to enhance customs operations. (h) A customs warehouse of a minimum of 3000 square feet, with spacious office space, computer facilities, internet connectivity, CCTV cameras, strong room and washrooms. (i) Weighbridge or such other suitable weighing scales or machines as appropriate. 10. The Commissioner shall hold the Developer liable for any non- compliance to the customs laws and regulations arising from the activities of his or her appointed Operator. 11. An SEZ Operator appointed by the Developer and licensed by SEZA shall assume the roles, responsibilities, and functions of the Developer. 12. A Zone will not qualify for gazettement as a Customs Area if the Developer being a person or company have been found to engage in tax fraud activities or found to have outstanding tax liabilities. These conditions shall apply alongside any other condition that the Ministry responsible for SEZs may impose from time to time. 13. Upon application for de-gazettement of the Zone by the Developer to SEZA and the due process being undertaken, the application will be forwarded to the Commissioner, to process, approve and notify SEZA after payment of taxes. The taxes shall cover input and materials used in the development of the Zone, raw materials, semi and finished products, plant, machinery, and any other item allowed into or used in the establishment of a Zone. 14. Companies already licensed by SEZA before this Gazette Notice shall make an application to the Commissioner in accordance with these guidelines before the Commissioner can approve their operations. 15. The Commissioner may review in consultation with SEZA and revise the above conditions from time to time. PART B–SEZ ENTERPRISE 1. The Zone Enterprise shall make an application to SEZA for the licensing of an Enterprise. 2. Once licensed by SEZA, the Enterprise shall make an application to the Commissioner for issuance with a facility code to operate within a gazetted Customs Area. The following documents shall support the application; Zone license, Enterprise license, copy of gazette notice for the Customs Area where the Enterprises wants to locate, copy of the executed letter of offer for space or Lease document, current List of Directors (CR12), Tax Compliance Certificate for the company and all directors and any other document the Commissioner may deem necessary. 3492 3492 3. The Enterprise shall be issued with a facility code to enable them access the Customs Systems and execute the relevant Security Bonds; CB21 to cover the taxes and duties of the goods in the Enterprises warehouse and CB20 to cover movement of goods into and out of the Enterprises. 4. The Enterprise that wishes to carry out their own development shall submit to SEZA, and the Authority shall share the submission with the Commissioner, a development plan which shall include phased development where applicable, a detailed Master List, and the Bills of Quantities for the materials to be used in the development of the SEZ or the projected phase. The Enterprise shall execute a Particular Security Bond CB16 for every shipment to cover the construction materials which shall be retired upon confirmation that all the materials have been fully utilized for the particular project. 5. The Enterprise shall ensure the provision of adequate security for the goods and personnel in the facility and shall take all necessary measures to ensure their security. CCTV surveillance and a reputable security service provider shall keep the premises and means of access under permanent security. 6. The Enterprise shall ensure that the facility has suitable office accommodation, where necessary. The offices shall be furnished with suitable office equipment for use by the resident KRA officers and installed with computer facilities compatible and with access to the KRA online/electronic systems. 7. Once the operations commence, the Enterprise shall keep a record of all goods therein and shall at all times make available these records for examination by the Customs Officer. 8. The Enterprise shall maintain stock records of all receipts and removals including raw materials and finished products (where applicable) in a monthly returns register of finished and semi-finished goods and a raw materials register or any other approved manner. 9. The Enterprise shall submit quarterly returns on the stocks held to the Proper Officer, on or before the 15th day after the end of the quarter. Where, on inspection of the records and physical stocktaking, goods are found missing and the Enterprise cannot give a satisfactory explanation to the Proper Officer, the Enterprise shall be liable to taxes on the missing goods as well as penalties as will be determined by the Commissioner. 10. The Enterprise shall comply with the conditions and guidelines issued by the Commissioner including proper accounting for the goods, security checks, spot checks, stop and search of any person or vehicle entering or leaving the Enterprise. 11. Goods entering, leaving, or being transferred from one Enterprise to another shall be entered using the appropriate Customs entry forms. 12. Goods subject to customs control entering or leaving an Enterprise shall be transported in sealed vehicles except in the case of exceptional loads. ‘Exceptional load’ meaning one or more heavy or bulky objects which because of weight, size or nature cannot be carried normally in a closed or sealed vehicle or transport unit and which are readily identified to the satisfaction of the Customs Officer; or those goods authorized by the Commissioner. 13. Goods exported to the Customs Territory from the SEZ Enterprise shall be treated as if the goods were imported and shall be entered using the appropriate Customs entry forms and taxes due fully paid. 14. Disposal or destruction of wastes and residues resulting from a manufacturing process shall be carried out within the SEZ Enterprise under the supervision of the proper officer. Where proper facilities of disposal do not exist within the SEZ Enterprise, the wastes may be destroyed at the Customs Territory or another site on approval by the Proper Officer. 15. Upon the destruction of the wastes, the proper officer shall issue a Certificate of Destruction. 16. Where wastes and rejects are sold in the Customs territory, the movement of the wastes or rejects shall be subject to the normal importation procedures in the customs territory and the appropriate taxes paid. 17. In consultation with SEZA, The Commissioner may impose conditions on the activities carried out by an SEZ Enterprise, having regard to the nature of the goods concerned or the requirements of Customs control 18. A person shall not be qualified to operate as an SEZ Enterprise if that person, or where the applicant is a company, the company or its director(s) have been found to engage in tax fraud activities or found to have outstanding tax liabilities. 19. The SEZ Enterprise shall notify the Commissioner in writing of its intention to wind up. 20. The SEZ Enterprise intending to wind up shall be required to provide manual stock levels and estimated values of all assets including, but not limited to, raw materials, finished goods and machinery. The same will be confirmed and validated through the customs system. 21. The assets shall be disposed of in either of the following ways; (i) Entered for home use (ii) Re-Exported (iii) Transferred to another Zone Enterprise (iv) Any other way the Commissioner may approve. 22. Upon completion and accounting for all taxes and cancellation of relevant Security Bonds, the Commissioner will issue a clearance letter, which shall be presented to SEZA. The Zone Enterprise will be suspended in the system. 23. These conditions shall apply alongside any other condition that the Ministry responsible for SEZs may impose from time to time. 24. The Commissioner may review and revise the above conditions from time to time. Dated the 9th June, 2022. LILIAN NYAWANDA, Commissioner, Customs and Border Control. *