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Guidance on clearance of zero-rated insecticides

The Agrochemicals Association of Kenya (AAK) has noted that members are still facing challenges during clearance of insecticides at the port of entry. As communicated earlier, the Finance Act, 2019 zero-rated agricultural insecticides (that include acaricides) but not insecticides for public health. Since these are under the same tariff code, KRA issues a code on application for each consignment of agricultural insecticides to allow clearance of the goods as zero-rated.

aak-GROWhas engaged the KRA on how this can be made easy for the members to avoid delays by splitting the tariff code. The issuance of the code will for now be the only option until the tariff is split which can only be done at East African Community (EAC) level (We use Common External Tariff which is shared by the East African member states).

Members are advised to apply for Exemption at Exemption Office at KRA Times Towers.

Kindly note that:

  • The application letter to be addressed to the Commissioner Customs and Border Controls, P.O. Box 48240-00100 Times Towers, Nairobi, Attention EXEMPTION OFFICE.
  • Please indicate the name of the product i.e. REF: (Name of the products) for use in crop protection (for crop protection insecticides) or animal pest control (for acaricides) depending on the product
  • Make reference to the Finance Act, 2019 that zero-rated the Agricultural Pest Control Products (PCPs)
  • Attach shipping documents for the specific consignment:
    1. IDF
    2. PCPB permit
    3. Invoice
    4. Bill of lading
    5. Enriched CoC / PVOC
  • The application should be delivered to 11th Floor – Times Towers Main Registry
  • A code will be issued to allow the clearance of the goods without VAT for the Agricultural Pest Control Products.
  • Public Health Insecticides are NOT ZERO-RATED as per Finance Act, 2019 and still attracts 16% VAT.

Members are encouraged if possible, to apply for the Exemption for the Code before the vessel/consignment arrives to avoid being inconvenienced by the delay in processing the code.