The above illustrations show that, for the ABS edging banding to qualify for classification under the sub-heading 3920.30.90, the item must undergo a process of further processing to introduce specific graphic designs. The classification for the company’s imports, which are imported in solid colours, which can then be further processed is 39203010. We have attached an 8-page printout from Egger the supplier to clarify the composition of the edge banding, under Section 3 {Composition/information on ingredients}
31st, January 2022
The Commissioner, Customs and Border Control
Kenya Revenue Authority
P.O Box 48240
Nairobi
Dear, Madam
REF: Objection to Post Clearance Audit Demand
We refer to your letter REF: xxxxxxxxxx-1 dated 24th December 2021, demanding for the payment of KShs 3,805,927. The reasons are stated as principal amount and corresponding Interest for incorrect, classification of edge bands imported by xxxxxxxxxx Limited (Company), between for the period, 2017 to 2020. The entries are xxxxxxxxxxxxxx. We are writing to object to the suggested classification under Section 229 of EACCMA.
Reasons for Objection
Background of the ABS Edge Bandings
The edge bands imported by the company are unprinted/Unprocessed Rolls. They must be further processed to enable usage. ABS stands for (Acrylonitrile-Butadiene-Styrene copolymer). They are imported as unprinted, due to the diverse design requirements of the industry and individuals. It does not make economic sense to import specifically printed/processed banding for each individual specification. Physical verification of the imports as well as classification opinions from Valuation and Tariff section has consistently, confirmed the accuracy of the company’s, description, and tariff classification (3920.30.10) as illustrated in Table 1. The Ruling reference number 2013/CUS/V&T/TARI/RUL/210 of 2013, Entry number, xxxxxx, refers to one of the entries quoted on the post clearance audit demand letter.
Table 1: Valuation Opinions/Rulings from the KRA Website, Customs Downloads
Link: https://www.kra.go.ke/en/downloads
| Reference Number of Ruling | Description of Item | Classification
Opinion |
Date of Opinion | |
| 2020/CUS/V&T/TARI/RUL/208 | Unprinted Plastic Sheets of Polymer Styrene | 3920.30.10 | 11.09.2020 | |
| 2014/CUS/V&T/TARI/RUL/507 | ABS Edging 1.5MM- Plastic Strip of Acrylonitrile-Styrene Polymers, Unprinted | 3920.30.10 | 04.12.2014 | |
| 2014/CUS/V&T/TARI/RUL/428 | Unprinted ABS Sheets- Sheets of Unprinted Plastics | 3920.30.10 | 22.10.2014 | |
| 2014/CUS/V&T/TARI/RUL/182 | ABS Sheets UV Resistance | 3920.30.10 | 08.05.2014 | |
| 2013/CUS/V&T/TARI/RUL/711 | ABS Sheets UV Resistance | 3920.30.10 | 17.12.2013 | |
| 2013/CUS/V&T/TARI/RUL/210
Entry Number: 2019ICD73942 |
EGGER EDGINGS ABS – Plastic Strip of Acrylonitrile-Butadiene-Styrene Copolymer Unprinted | 3920.30.10 | 22.04.2013 | |
Laws and Analysis
The demand letter has not indicated precisely why the edge bands do not qualify for classification under 392030.10. It only quotes Rule 1 of the Harmonised System: ‘’ The titles of Sections, Chapters, and sub‑Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions’’
Questions to be Answered
- What is the Meaning of printed in the Harmonised System/Customs External Tariff?
- Why do the policy makers choose 10% for unprinted and 25% for others (Printed)?
Analysis
Chapter 39 is structured in the following forms: a) Primary b) Semi -Manufactures c) Complete /Ready to Use/Finished Articles. In general, this Chapter covers substances called polymers and semi‑manufactures and articles thereof, provided they are not excluded by Note 2 to the Chapter. Headings 39.16 to 39.25 cover semi-manufactures or specified articles as per the chapter notes. The policy makers set the 10% duty rate for semi-manufactures because the product as imported requires further processing, shaping, embossing, polishing before further usage. Therefore, the loss in taxes by the 15% import duty difference is expected to be compensated for, by the job creation in the processing industry. Note that any product in an intermediate state attracts either an import duty rate of 0% or 10% in the Customs External Tariff.
The raw material for the Edge Banding (ABS) is classified under 3903.30.00, therefore the major raw material for the bands does not conform to the definition of items supposed to be classified under subheadings ‘’other’’ as defined in subheading Note 1 of chapter 39.
39.03 – Polymers of styrene, in primary forms: 3903.30 – Acrylonitrile-butadiene-styrene (ABS) copolymers
39.03 – Polymers of styrene, in primary forms: 3903.90 – Other
Notes to Heading 39.03 ‑ Polymers of styrene, in primary forms.
‑ Polystyrene :
3903.11 ‑ ‑ Expansible
3903.19 ‑ ‑ Other
3903.20 ‑ Styrene‑acrylonitrile (SAN) copolymers
3903.30 ‑ Acrylonitrile‑butadiene‑styrene (ABS) copolymers
3903.90 ‑ Other
This heading covers polystyrene and copolymers of styrene. The most important copolymers of styrene are styrene‑acrylonitrile (SAN) copolymers, acrylonitrile‑butadiene‑styrene (ABS) copolymers and styrene‑butadiene copolymers. Most of the styrene‑butadiene copolymers with substantial amounts of butadiene comply with the requirements of Note 4 to Chapter 40 and are therefore classified in Chapter 40 as synthetic rubber. For the classification of polymers (including copolymers), chemically modified polymers and polymer blends, see the General Explanatory Note to this Chapter.
Unexpanded polystyrene is a colourless, transparent, thermoplastic material which finds extensive use in the electrical and radio industries. It also has packaging applications, for example, in the packaging of foodstuffs and cosmetics. It is also used in the manufacture of toys, clock cabinets and gramophone records.
Expanded (cellular) polystyrene contains gases from the expanding process and has a low bulk‑density. It is extensively used as a thermal insulant for refrigerator doors, air‑conditioner housings, cold storage facilities, freezer display cabinets, and in the construction industry. It is also used in disposable packaging and in food serving articles. Certain chemically modified copolymers of styrene are ion‑exchangers (heading 39.14).
Styrene‑acrylonitrile (SAN) copolymers, which have high tensile strength, good mouldability and chemical resistance, are used for making cups, tumblers, typewriter keys, refrigerator parts, oil‑filter bowls and certain kitchen equipment. Acrylonitrile‑butadiene‑styrene (ABS) copolymers, which have high shock and weather resistance, are used in the manufacture of parts and accessories of bodies for motor vehicles, of refrigerator doors, of telephones, of bottles, of shoe heels, of cases for machines, of water pipes, of building panels, of vessels, etc.
Heading 3920
The ABS edge banding is classifiable under heading 3920. The item is a polymer of styrene (Acrylonitrile-Butadiene-Styrene copolymer). Note 10 to Chapter 39 defines the items classifiable under heading 3920
39.20 Other plates, sheets, film, foil and strip, of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials: – Of polymers of styrene:
3920.30.10 — Unprinted – 10%
3920.30.90 — Other——–25%
Notes to Heading 3920
39.20 ‑ Other plates, sheets, film, foil and strip, of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials (+).
3920.10 ‑ Of polymers of ethylene
3920.20 ‑ Of polymers of propylene
3920.30 ‑ Of polymers of styrene
‑ Of polymers of vinyl chloride:
3920.43 ‑ ‑ Containing by weight not less than 6 % of plasticizers
3920.49 ‑ ‑ Other
‑ Of acrylic polymers:
3920.51 ‑ ‑ Of poly (methyl methacrylate)
3920.59 ‑ ‑ Other
‑ Of polycarbonates, alkyd resins, polyallyl esters or other polyesters:
3920.61 ‑ ‑ Of polycarbonates
3920.62 ‑ ‑ Of poly (ethylene terephthalate)
3920.63 ‑ ‑ Of unsaturated polyesters
3920.69 ‑ ‑ Of other polyesters
‑ Of cellulose or its chemical derivatives:
3920.71 ‑ ‑ Of regenerated cellulose
3920.73 ‑ ‑ Of cellulose acetate
3920.79 ‑ ‑ Of other cellulose derivatives
‑ Of other plastics:
3920.91 ‑ ‑ Of poly (vinyl butyral)
3920.92 ‑ ‑ Of polyamides
3920.93 ‑ ‑ Of amino‑resins
3920.94 ‑ ‑ Of phenolic resins
3920.99 ‑ ‑ Of other plastics
This heading covers plates, sheets, film, foil and strip of plastics (which are not reinforced, laminated, supported or similarly combined with other materials), other than those of heading 39.18 or 39.19.
This heading also covers synthetic paper pulp consisting of sheets of non-coherent polyethylene or polypropylene fibres (fibrils) of an average length of about 1 mm and generally containing 50 % moisture.
This heading does not cover products which have been reinforced, laminated, supported, or similarly combined with materials other than plastics (heading 39.21). For this purpose, “similarly combined” must be combinations of plastics with materials, other than plastics, which enhance the strength of the plastic material (e.g., embedded metal mesh and woven glass fabric, as well as mineral fibres, whiskers, and filaments).
However, products made out of plastics compounded with fillers in the form of powders, granules, spheres or flakes are classified in this heading. Further, minor surface treatments such as coloration, printing (subject to Note 2 to Section VII), vacuum deposition of metal are not to be regarded as reinforcements or similar combinations for the purposes of this heading.
This heading also excludes cellular products (heading 39.21) and strip of plastics of an apparent width not exceeding 5 mm (Chapter 54).
According to Note 10 to this Chapter, the expression “plates, sheets, film, foil and strip” applies only to plates, sheets, film, foil and strip and to blocks of regular geometric shape, whether or not printed or otherwise surface‑worked (for example, polished, embossed, coloured, merely curved or corrugated), uncut or cut into rectangles (including squares) but not further worked (even if when so cut they become articles ready for use, for example, tablecloths).
Plates, sheets, etc., whether or not surface‑worked (including squares and other rectangles cut therefrom), with ground edges, drilled, milled, hemmed, twisted, framed or otherwise worked or cut into shapes other than rectangular (including square) are generally classified as articles of headings 39.18, 39.19 or 39.22 to 39.26.
Subheading Explanatory Note.
Subheadings 3920.43 and 3920.49
Products of these subheadings are distinguished based on their plasticiser content. For this purpose, primary plasticisers and secondary plasticisers must be taken together (see Subheading Note 2 to this Chapter).
Primary plasticisers are materials of low volatility which, when added to a polymer, generally cause an increase in its flexibility (e.g., phthalate esters, adipate esters, trimellitate esters, phosphate esters, sebacate esters, azelate esters).
The heading 3920 requires Classification under either Printed or Other (Not Printed), therefore below are several Possible Scenarios
| Classification | 3920.30.90 | 3920.30.10 | 3920.30.90 | 3920.30.10 |
| Printed | Yes | NO | Yes | NO |
| Polished | Yes | Yes | NO | NO |
| Embossed | Yes | Yes | NO | NO |
| Coloured | Yes | Yes | NO | NO |
| Curved | Yes | Yes | NO | NO |
| Corrugated | Yes | Yes | NO | NO |
| Uncut | Yes | Yes | NO | NO |
Please note the day to day meaning of colouring and printing
Colouring: It is the process of changing the colour of something by painting, dyeing, or shading it.
Printing: It is the act, art, or practice of impressing letters, characters, or figures on paper, cloth, or other material
Therefore, it is important to take note that solid coloured edge banding is not printed, because colouring and printing are different as illustrated above.
Therefore, the issue is to determine the meaning of printed as used in heading 3920,
What does printing mean in the Harmonised System (HS)/Common External Tariff (CET)
The HS/CET does not provide a hard and fast definition of printed, therefore we can only illustrate the implied meaning by quoting extracts from the CET. That is, we must rely on other examples of the term printed in the CET. The table below shows examples of extracts from the common external tariff, with the term printed, to demonstrate the intended meaning by the World Customs Organisation.
| Chapter/Heading Notes | Extract with the word Printing | Comments |
|
Section VII: Note 2: |
2.- Except for the goods of heading 39.18 or 39.19, plastics, rubber, and articles thereof, printed with motifs, characters or pictorial representations, which are not merely incidental to the primary use of the goods, fall in Chapter 49.
Goods of heading 39.18 (floor coverings and wall or ceiling coverings of plastics) and heading 39.19 (self-adhesive plates, etc., of plastics), even if printed with motifs, characters or pictorial representations, which are not merely incidental to the primary use of the goods, do not fall in Chapter 49 but remain classified in the above-mentioned headings. However, all other goods of plastics or rubber of the kind described in this Section fall in Chapter 49 if the printing on them is not merely incidental to their primary use. |
A design is introduced by the printing. Printing must introduce a design to the edge bands
Printing means the introduction of graphics into an item |
|
Chapter 39 Note 9: |
9.- For the purposes of heading 39.18, the expression “wall or ceiling coverings of plastics” applies to products in rolls, of a width not less than 45 cm, suitable for wall or ceiling decoration, consisting of plastics fixed permanently on a backing of any material other than paper, the layer of plastics (on the face side) being grained, embossed, coloured, design-printed or otherwise decorated. |
The presence of the terms grained, embossed, coloured implies the WCO does not consider a coloured material as printed, therefore edge bands in uniform colours is not considered printing |
|
Chapter 39 Note 10: |
10.- In headings. 39.20 and 39.21, the expression “plates, sheets, film, foil and strip” applies only to plates, sheets, film, foil and strip (other than those of Chapter 54) and to blocks of regular geometric shape, whether or not printed or otherwise surface-worked, uncut or cut into rectangles (including squares) but not further worked (even if when so cut they become articles ready for use). |
Surface working, cut, or uncut, printed or unprinted. Heading 392030.10, then demands that only unprinted items are classifiable there. |
|
Chapter 40 Note 9 |
In headings 40.01, 40.02, 40.03, 40.05 and 40.08, the expressions “plates”, “sheets” and “strip” apply only to plates, sheets and strip and to blocks of regular geometric shape, uncut or simply cut to rectangular (including square) shape, whether or not having the character of articles and whether or not printed or otherwise surface-worked, but not otherwise cut to shape or further worked. |
Printing Introduces Aesthetic appeal to the item, therefore it is considered further processing and therefore higher duty rates under 3920.30.90 |
|
Chapter 42 Note 3(a) |
3.- (A) In addition to the provisions of Note 2 above, heading 42.02 does not cover: (a) Bags made of sheeting of plastics, whether or not printed, with handles, not designed for prolonged use (heading 39.23); |
Printing Introduces Aesthetic appeal to the item, therefore it is considered further processing and therefore higher duty rates under 3920.30.90 |
|
Chapter 48 Note 5 |
5.- For the purposes of heading 48.02, the expressions “paper and paperboard, of a kind used for writing, printing or other graphic purposes” and “non perforated punch-cards and punch tape paper” mean paper and paperboard made mainly from bleached pulp or from pulp obtained by a mechanical or chemi-mechanical process and satisfying any of the following criteria: |
Illustrates meaning of printing |
|
Chapter 48 Note 9 |
9.- For the purposes of heading 48.14, the expression “wallpaper and similar wall coverings” applies only to: (a) Paper in rolls, of a width of not less than 45 cm and not more than 160 cm, suitable for wall or ceiling decoration: (i) Grained, embossed, surface-coloured, design-printed or otherwise surface-decorated (for example, with textile flock), whether or not coated or covered with transparent protective plastics; |
Illustrates meaning of printing |
|
Chapter 48 Note 12 |
12.- Except for the goods of heading 48.14 or 48.21, paper, paperboard, cellulose wadding, and articles thereof, printed with motifs, characters or pictorial representations, which are not merely incidental to the primary use of the goods, fall in Chapter 49. |
Illustrates meaning of printing |
|
Heading 48.11 |
48.11 Paper, paperboard, cellulose wadding, and webs of cellulose fibres, coated, impregnated, covered, surface-coloured, surface decorated or printed, in rolls or rectangular (including square) sheets, of any size, other than goods of the kind described in heading 48.03, 48.09 or 48.10. |
This illustrates introduction pf designs on the plain fabric by virtue of the term printing even if coloured |
|
Heading 4814.20.00 |
4814.20.00 – Wallpaper and similar wall coverings, consisting of paper coated or covered, on the face side, with a grained, embossed, coloured, design-printed or otherwise decorated layer of plastics |
Note the term design printed |
|
Heading 5208.51.10 |
Printed: — Khanga, Kikoi and Kitenge |
This illustrates introduction pf designs on the plain fabric by virtue of the term printing |
|
Heading 39.18 |
39.18 – Floor coverings of plastics, whether or not self-adhesive, in rolls or in the form of tiles; wall or ceiling coverings of plastics, as defined in Note 9 to this Chapter. 3918.10 – Of polymers of vinyl chloride 3918.90 – Of other plastics The first part of the heading covers plastics of the types normally used as floor coverings, in rolls or in the form of tiles. It should be noted that self-adhesive floor coverings are classified in this heading. The second part of the heading, the scope of which is defined in Note 9 to this Chapter, covers wall or ceiling coverings of plastics, including those with a textile backing. Wallpaper or similar wall coverings of paper coated or covered with plastics are excluded (heading 48.14). It should be noted that this heading includes articles printed with motifs, characters or pictorial representations, which are not merely incidental to the primary use of the goods (see Note 2 to Section VII). |
This illustrates introduction pf designs on the plain items by virtue of the term printing |
|
Heading 39.19 |
39.19 – Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls. 3919.10 – In rolls of a width not exceeding 20 cm 3919.90 – Other This heading covers all self-adhesive flat shapes of plastics, whether or not in rolls, other than floor, wall or ceiling coverings of heading 39.18. The heading is, however, limited to flat shapes which are pressure-sensitive, i.e., which at room temperature, without wetting or other addition, are permanently tacky (on one or both sides) and which firmly adhere to a variety of dissimilar surfaces upon mere contact, without the need for more than finger or hand pressure. It should be noted that this heading includes articles printed with motifs, characters or pictorial representations, which are not merely incidental to the primary use of the goods (see Note 2 to Section VII). |
This illustrates introduction of designs on the plain items by virtue of the term printing |
The above illustrations show that, for the ABS edging banding to qualify for classification under the sub-heading 3920.30.90, the item must undergo a process of further processing to introduce specific graphic designs. The classification for the company’s imports, which are imported in solid colours, which can then be further processed is 39203010. We have attached an 8-page printout from Egger the supplier to clarify the composition of the edge banding, under Section 3 {Composition/information on ingredients}
World Customs Organisation Rulings on Printed Items in Chapter, 39
- Trilaminated sheets, consisting of two outer layers of plastics and a middle layer of thin aluminium foil. Each layer has been fixed to the adjacent layer by adhesives. The plastics are non-cellular.
The sheets, presented in rolls, are used to manufacture flexible containers (sachets) for food, such as seasoning sauces.
One plastic layer is printed with images and information on the food, and the other plastic layer, in contact with the food, is transparent.
Application of GIRs 1 and 6.
Adoption: 2019
Classification 3921.90: – Other
- 1. Tubular containers with caps, made of plastics, of different lengths, diameters, colours and capacities, with one open end threaded and secured with a screw type cap and the other end also open but intended to be sealed with clamps, using a thermal process, after the containers are filled with the intended products. These containers are commonly used for packing cosmetic preparations for retail sale. Their outer surfaces present printed information about the products with which they will be filled, such as their brand names, ingredients, properties, licenses, etc.
Application of GIRs 1 and 6.
Adoption: 2009
3923.90 – Other
These two examples illustrate that the items must be graphically printed, for classification to be done under ‘’other’’. It follows that heading 3920 will follow the same principles.
The write up below extracted from the internet shows the procedure for further processing/printing the edging bands. Link: https://futureprint.tech/the-futureprint-blog/printing-furniture-edge-bands-with-uv-inkjet)
Flexible Edging Designs
ABS edge banding is very flexible, meaning it can be easily applied to curves, and internal or external radii. This property allows greater freedom of design. Go for this edging if you’re working on bespoke furniture projects or unusual shapes.
It’s produced in solid colour and can be made in an almost unlimited range of designs, including wood effect, textured, block colour, concrete and metal effect, granite, marble, or high gloss – the list goes on. As digital printing technology continues to develop, you’ll soon be able to create any design you can imagine on your ABS edge banding.
Agfa, Printing furniture edge bands with UV inkjet
Things are moving fast in the world of interior decoration. There is an increasing interest in printing wallpaper, furniture, floors, panels, etc. with inkjet. Agfa focuses on integrating inkjet printing in industrial production runs.
It recently launched an ink set that will save time and costs when printing furniture edge bands.
The new Altamira Design PID, a 6-color ink set for printing interior decorative parts, including edge bands, skirtings (base plates), panels, window blinds, profiles, and automotive and transportation elements (interior parts of cars, buses, caravans, etc.).
REPLACING GRAVURE
In the traditional edge band manufacturing process, polymer granules are extruded into a thin edge band film. Typical surfaces for edge banding are ABS, PP or PVC. During extrusion, a colorant is usually added to obtain a coloured bulk material. Furthermore, a primer is applied to improve adhesion and ink wetting of the ink that will come on top, typically by means of gravure printing (requiring one engraved cylinder for each colour and each design). The printed image is protected by a topcoat, typically a UV varnish. For an aesthetic effect, a relief can be embossed to depict the wood grain structure. Embossing can also be done prior to printing. The last step is to cut the edge band to size. Rotogravure printing of edge bands has multiple disadvantages: the need for many basic colours a stock of cylinders, in addition to limited speed.
The analogue gravure method can be replaced by single-pass inkjet printing. UV inkjet is the preferred option because of its good adhesion on the plastics and primers. The benefits of inkjet are many: no stock of cylinders, a fixed set of process colour inks, and a shorter preparation time – resulting in more cost-efficient production runs. In addition, the products can be differentiated and personalized. The production can run at a higher speed and has a smaller footprint. The run length of edge bands is limited, which makes them perfectly suited for inkjet production printing.
CONSISTENT PRINTS OF ANY DESIGN
Agfa has been supplying inkjet inks for interior decoration for many years. The Altamira UV inkjet inks for single-pass printing are well-known for delivering consistent prints (begin to end, left to right). This consistency results from excellent jetting reliability (long open head times, no satellite formation etc.) and batch-to-batch consistency.
Recently, Agfa introduced a third-generation 6-color inkjet ink set for printing furniture bands. Altamira Design PID is based on Agfa’s patented pigment dispersion technology delivering high colour strength at a low ink consumption. Ink formulations are perfectly tuned for jetting reliability, adhesion, colour gamut and image quality.
Next to the CMYK inks, the ink set comprises two colours specific for wood designs. That means that the designers of edge bands will have no limitation in colour. For “wood grain designs”, all wood colours can be obtained by combining the Wood-Red and Wood-Yellow inks with Black and Cyan inks. These Wood-Red and Wood-Yellow inks deliver low metamerism prints, a key feature for edge bands that need to meet the colour of the printed top plate. For standard designs, natural stone, concrete look and other fashion colours, the 4-color approach with CMYK will deliver the best option because of its wide colour gamut.
The new inks have been designed to provide excellent adhesion and a full process fit with the furniture band manufacturing process. For each combination of inks, the printed colour is stable very shortly after printing, which makes it possible to continue with the next process steps right away. The outstanding ink consistency allows repeated printing of the same design.
The reliability of single-pass printing was proven in production run lengths (printing during four hours without maintenance) with zero missing or failing nozzles.
All six inkjet inks comply with IKEA regulations, which include IOS-MAT066 (surface coatings and coverings) and IOS-MAT010 (chemical compounds and substances) as the strictest regulations related to printing of edge bands.
IN ESSENCE
Edge band printing is a perfect case for switching from an analogue printing technology to single-pass inkjet. For production run lengths, the higher speed versus gravure printing, as well as the high design flexibility are very attractive. With Altamira Design. PID, Agfa has developed an ink set that meets all the application requirements and delivers consistent print results.
In addition to printing on edge bands, this 6-color ink set can be used to print other interior elements, including base plates, baseboards, window profiles, panels, car interior and others.
Image 1 Image 2
Image 3
Image1,illustrates a solid colour unprinted Edging Band, while Images 2 and 3 denote a further worked printed edge banding.
Please take note that none of the rulings mentioned in Table 1 have been withdrawn, as per sections 62, 63,64 of the Tax Procedure act, on public rulings by the commissioner, The sections relied on for this appeal are quoted at the end of this section for ease of reference.
We therefore request your office to consider the facts and issues raised above and set aside the demand letter quoted above.
Yours faithfully
Janron Consult
Section 229 of the EACCMA.
(1) A person directly affected by the decision or omission of the Commissioner or any other officer on matters relating to Customs shall within thirty days of the date of the decision or omission lodge an application for review of that decision or omission.
(2) The application referred to under subsection (1) shall be lodged with the Commissioner in writing stating the grounds upon which it is lodged.
(3) Where the Commissioner is satisfied that, owing to absence from the Partner State, sickness or other reasonable cause, the person affected by the decision or omission of the Commissioner was unable to lodge an application within the time specified in subsection (1), and there has been no unreasonable delay by the person in lodging the application, the Commissioner may accept the application lodged after the time specified in subsection (1).
(4) The Commissioner shall, within a period not exceeding thirty days of the receipt of the application under subsection (2) and any further information the Commissioner may require from the person lodging the application, communicate his or her decision in writing to the person lodging the application stating reasons for the decision.
(5) Where the Commissioner has not communicated his or her decision
review within to the person lodging the application for the time specified in subsection (4) the Commissioner shall be deemed to have made a decision to allow the application.
(6) During the pendency of an application lodged under this section the Commissioner may at the request of the person lodging the application release any goods in respect of which the application has been lodged to that person upon payment of duty as determined by the Commissioner or provision of sufficient security for the duty and for any penalty that may be
payable as determined by the Commissioner
Section 62 of the Tax Procedure Act:
Binding public rulings
(1) The Commissioner may make a public ruling in accordance with section 63 setting out the Commissioner’s interpretation of a tax law.
(2) A public ruling made in accordance with section 63 shall be binding on the Commissioner until the ruling is withdrawn by the Commissioner.
(3) A public ruling shall not be binding on a taxpayer.
Section 63 of the Tax Procedure Act:
Making a public ruling
(1) The Commissioner shall make a public ruling by publishing a notice of the public ruling in at least two newspapers with a nationwide circulation.
(2) A public ruling shall state that it is a public ruling and have a heading
specifying the subject matter of the ruling and an identification number.
(3) A public ruling shall take effect on the date specified in the public ruling
or, when a date has not been specified, from the date the ruling is published in
accordance with the provisions of subsection (1).
(4) A public ruling shall set out the Commissioner’s opinion on the application
of a tax law in the circumstances specified in the ruling; and shall not be a decision
Section 64 of the Tax Procedure Act:
Withdrawal of a public ruling
(1) The Commissioner may withdraw a public ruling, in whole or in part, by
publishing a notice of the withdrawal in at least two newspapers with a nationwide circulation.
(2) Where a law is enacted, or the Commissioner makes another public ruling that is inconsistent with an existing public ruling, the existing public ruling shall either be withdrawn or shall be withdrawn to the extent that it is inconsistent with the law or the new public ruling.
(3) The withdrawal of a public ruling, in whole or part, shall take effect from—
(a) where subsection (1) applies—
(i) the date specified in the notice of withdrawal; or
(ii) the date that the notice of withdrawal of the ruling is published in compliance with subsection (1); whichever is the later; or
(b) where subsection (2) applies, the commencement date of the law or commencement date of the new public ruling is published.
(4) A public ruling that has been withdrawn, in whole or part shall—
(a) continue to apply to a transaction commenced before the public ruling was withdrawn; and
(b) not apply to a transaction commenced after the public ruling was withdrawn to the extent that the ruling is withdrawn.
—————————————————————————————————————————————–
Janron Consult, Tax Consultant Kenya, Customs Tax Consultant Kenya, Tax Advisory Kenya
Talk to Janron Consult for the following:
Ministry of Health Exemptions
Treasury Exemptions
Advance Ruling Application to KRA
Objection to KRA Rulings on Customs Value
Objections to KRA Rulings on HS Classification
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