KRA Impounds Contraband Cigarettes Worth Ksh.281 million at Mombasa Port
The investigation into the matter continues as action is sought to determine the individuals responsible for shipment and take appropriate enforcement action according to the law.
A file image of the Port of Mombasa. Photo/Courtesy
By Ruth Sang
The Kenya Revenue Authority (KRA) has actually caught a huge shipment of illegal cigarettes at the Port of Mombasa. Thus, another tax fraud has become majorly unsuccessful. Over 9.3 million sticks of cigarettes were seized, which have an estimated market value of Ksh.281.1 million, indicating the huge extent of the illegal shipment and the financial risk posed to government revenue.
In a statement released on Friday, KRA confirmed the cigarettes had been found inside a 40-foot container that had come to the port for clearance. The seizure follows intelligence-driven investigations which raised the suspicion of customs officials concerning the true nature of the cargo, warranting closer scrutiny.
Intelligence-Led Operation Triggers Multi-Agency Action
According to KRA, the accomplished detection result came because percentage coordination of intelligence work and the formation of a verification team multi-agency. Given the sensitivity and potential effect of the consignment, full physical inspection of the container was opted by authorities as opposed to documentation.
The full physical inspection was done to ensure compliance with tax laws, quality standards, and enforcement requirements. Officers drawn from several government agencies participated in the exercise, including KRA, the Port Police, the Kenya Bureau of Standards (KEBS), the Anti-Counterfeit Agency (ACA), Port Health Services, and the Kenya Ports Authority (KPA). This joined approach was aimed at closing loopholes often exploited by smugglers and ensuring that all regulatory aspects were thoroughly checked.
Discrepancies in Origin and Labelling Uncovered
The examination revealed that this particular container bore 937 cartons containing a total of 9,370,000 cigarette sticks. Of great concern, the cartons bore the indelible label “Made in Sudan,” a warning that the declaration raised immediately before investigators. Furthur verification proved that the country of consignment was Cambodia thus cretaed a clear inconsistency between the declared origin and the labelling on the products.
According to KRA, such misrepresentation is a common ploy employed to obfuscate the actual source of the goods in illicit commerce, to evade taxes, and to lack regulatory controls. Apparently, the shipment traveled through Singapore before making its way to Kenya, with documents showing the final destination as South Sudan.
Huge Tax Loss Averted
More an issue considered contraband tobacco products in terms of health and regulatory concerns, KRA underlines revenue significance involved in such illegal importation. It is indicated that total taxes payable on the seized cigarettes amount to Ksh.83.39 million, which includes Ksh.38.42 million excise duty and Ksh.44.98 million in value-added taxes (VAT).
In effect, KRA claimed interception of the consignment before it got into the market or was transshipped onward from ensuring loss of huge revenue to the government while reinforcing the authority’s commitment to ensuring trade remains legitimate. The Authority reemphasized its intelligence-led operations and inter-agency collaboration in combating smuggling, counterfeiting, and other illicit trades at ports of entry in Kenya.
The investigation into the matter continues as action is sought to determine the individuals responsible for shipment and take appropriate enforcement action according to the law.
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