Nairobi — The Kenya National Chamber of Commerce and Industry (KNCCI) has welcomed a compromise between traders and the Kenya Revenue Authority (KRA) that will see the customs benchmark value for consolidated cargo rise gradually, giving importers more time to adjust.

The agreement follows consultations between KRA, consolidators, clearing agents and other industry stakeholders over a customs directive prescribing benchmark customs values, commonly referred to as "minimum yield."

Under the deal, the current benchmark of Sh2.5 million will remain in force until August 20, after which a revised benchmark of Sh3.2 million will take effect from August 21.

To cushion traders affected by the earlier directive issued on July 9, KRA also agreed to waive storage charges for cargo that incurred demurrage as a result of the implementation of the new benchmark.

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"The discussions were constructive and both parties agreed on a number of resolutions to ensure predictability, fairness and a supportive business environment. The resolutions below are now in effect," KNCCI said.

The parties also agreed that the revised benchmark will remain fixed for two years to improve business certainty. Importers who believe their consignments attract lower duties will be allowed to request customs verification and valuation.

"Consolidators should support MSMEs and desist from shipping cargo for large businesses who ideally pay higher taxes. Everyone must pay their fair share of taxes to support the country," it added.

KNCCI has urged traders to clear cargo currently held at ports before August 20 to benefit from the lower benchmark and the storage fee waiver.