KRA Changes Process of Releasing Imported Second-Hand Cars After Ruto Directive

The Kenya Revenue Authority (KRA) has announced changes in the process of clearing imported vehicles, allowing dealers to move imported second-hand cars to their yards before completing the registration process.

Under the new arrangement, dealers will be allowed to pay applicable customs taxes, obtain clearance, and take possession of the vehicles while waiting for buyers, with formal registration taking place after a sale.

In an internal circular obtained by Kenyansco.ke, KRA's Customs and Border Control Department announced the changes following President William Ruto’s directive over imported vehicle registration.

"The President issued a directive through NTSA that vehicles imported by licensed dealers be released upon payment of all applicable customs duties, taxes and levies pending completion of the vehicle registration process," the circular stated.

Under the revised process, dealers must first lodge an import declaration through the Integrated Customs Management System (iCMS) once their vehicles arrive in the country.

The Authority clarified that dealers will be required to settle all applicable customs duties, taxes and levies during this stage, but NTSA registration fees and levies will be deferred until the vehicles are sold.

"Applicable customs duties and taxes will be paid. NTSA registration fees and levies shall not be collected during this initial customs entry stage," KRA stated.

After the payments are confirmed, customs verification officers will physically inspect the vehicles before the Centralised Release Officer reviews the entries and authorises their release.

Following customs clearance, dealers will be required to apply for a Kenya Dealer (KD) identifier through the NTSA platform before the vehicles can be moved from the customs yard.

KRA explained that NTSA will issue a unique identifier comprising the KD number and the vehicle's chassis number, which will also be captured in the customs system.

Before authorising the vehicles' movement, a Border Control Officer will physically compare the identifier recorded in iCMS with the details displayed on the actual vehicle to ensure they match.

"If the details match, then the motor vehicle can be released to the dealer for onward transfer to the dealer's yard," KRA said.

Once the vehicles arrive at the dealers' premises, they will remain there as the businesses look for prospective buyers, with formal registration only taking place after a customer purchases a vehicle.

Upon securing a buyer, the dealer will apply to NTSA for the vehicle's formal registration and pay the required registration fees through the eCitizen platform.

The Authority added that the new registration number would automatically be transmitted to its customs system through an Application Programming Interface (API) to support data reconciliation and audit tracking.