Ruto Directive Reshapes KRA Clearance of Imported Used Cars via NTSA

The Kenya Revenue Authority (KRA) has updated its clearance process for imported vehicles, allowing licensed motor dealers to transfer second-hand cars directly to their showrooms after paying customs charges. This change follows an executive directive issued by President William Ruto through the National Transport and Safety Authority (NTSA). The directive enables dealers to defer formal registration until a final buyer is found, streamlining the clearance process.

Under the revised framework, licensed dealers lodge an import declaration through the Integrated Customs Management System (iCMS) upon a vehicle’s arrival. They pay standard customs duties, taxes, and levies at this initial stage. However, NTSA registration fees and associated administrative levies remain deferred until the unit sells. This new process aims to reduce delays and increase efficiency in the clearance of imported vehicles.

Following confirmation of payment, customs officers perform a physical inspection of the vehicle. A centralized release officer then evaluates the entry records and grants official authorization for release. Before moving any vehicle out of the customs precinct, dealers apply for a Kenya Dealer (KD) identifier via the NTSA digital platform. This identifier pairs the dealer’s KD number with the vehicle’s specific chassis number.

The KD identifier automatically synchronizes with KRA’s customs database. A border control officer verifies that the identifier logged in iCMS mirrors the physical details displayed on the vehicle. If the details match, the motor vehicle can be released to the dealer for onward transfer to the dealer’s yard. This step ensures that vehicles are properly documented and tracked throughout the clearance process.

Vehicles can now remain on display at dealer premises while businesses secure buyers. Once a transaction is completed, the dealer submits a formal registration application to NTSA and settles the outstanding registration fees via the eCitizen portal. This new process allows dealers to sell vehicles more efficiently, reducing the time and costs associated with clearance and registration.

The newly assigned registration number will transmit directly to the customs system through an application programming interface (API). This ensures real-time data reconciliation and comprehensive audit tracking. The KRA confirmed that this new process will improve the efficiency and transparency of vehicle clearance and registration.

The updated clearance process is expected to benefit licensed motor dealers and the automotive industry as a whole. By reducing delays and increasing efficiency, dealers can now focus on selling vehicles rather than navigating a complex and time-consuming clearance process. The directive is a significant step towards improving the business environment in Kenya.

Key points

• Licensed motor dealers can now transfer second-hand cars directly to their showrooms after paying customs charges.
• Formal registration can be deferred until a final buyer is found.
• The new process includes real-time data reconciliation and comprehensive audit tracking.