WORLD TRADE
ORGANIZATIONG/VAL/N/2/KEN/1
21 January 2002
(02-0303)
Committee on Customs Valuation Original:  English
INFORMATION ON IMPLEMENTATION AND ADMINISTRATION OF THE
AGREEMENT ON CUSTOMS VALUATION
Checklist of Issues
KENYA
The following communication, dated 9 January 2002, has been received from the Permanent
Mission of Kenya.
_______________
1. Questions concerning Article 1:
(a) Sales between related persons:
(i) Are sales between related persons subject to special provisions?
No
(ii) Is the fact of intercompany prices prima facie considered as grounds for regarding the
respective prices as being influenced?
No
(iii) What is the provision for giving the communication of the above-mentioned grounds in
writing if the importer so requests (Article 1.2(a))?
Communication is given to the importer in writing.  Seventh schedule Article 1.2(a)(ii).
(iv) How has Article 1.2(b) been implemented?
Provisions of Article 1.2(b) have been included in the national legislation (seventh schedule).
(b) Price of lost or damaged goods:
Are there any special provisions or practical arrangements concerning the valuation of lost or
damaged goods?
Valuation of lost or damaged goods is in accordance with the provisions of explanatory
note 3.1, which has been included in the departmental instructions.G/VAL/N/2/KEN/1
Page 2
2. How has the provision of Article 4 to allow the importer an option to reverse the order
of application of Articles 5 and 6 been implemented?
The provision has been included in the national legislation (seventh schedule).
3. How has Article 5.2 been implemented?
This has been included in the national legislation (seventh schedule).
4. how has Article 6.2 been implemented?
The importer is to keep proper records regarding his importation including, where necessary,
information supplied by the seller.  The commission er is empowered by section 8 of the Customs and
Excise Act to verify the information if need be.
5. Questions concerning Article 7:
(a) What provisions have been made for making value determinations to Article 7?
Under Article 7 of the seventh schedule, value is to be determined using reasonable means
consistent with the Agreement and on the basis of information provided by the importer or
customs.
(b)  What is the provision for informing the im porter of the customs value determined under
Article 7?
If the importer so requests, he shall be informed in writing how the customs value was
determined under this method.
(c) Are the prohibitions found in Article 7.2 delineated?
Methods of valuation prohibited by Article 7.2 are also prohibited under the seventh schedule
to the Customs and Excise Act.
6. How have the options found in Article 8.2 been handled? In the case of f.o.b. application,
are ex-factory prices accepted?
Kenya is a c.i.f. country and so the adjustments under Article 8.2 are included in the customs
value.
7. Where is the rate of exchange published, as required by Article 9.1?
Kenya has gazetted the use of exchange rates published by the commercial banks.
8. What steps have been taken to ensure confidentiality, as required by Article 10?
Section 8 of the Customs and Excise Act provides for protection of confidential information
except if required by a statistical department or in a court of law.G/VAL/N/2/KEN/1
Page 3
9.  Questions concerning Article 11:
(a) What rights of appeal are open to the importer or any other person?
Three levels of appeal are provided for – within the customs department – up to the level of
the Commissioner, an independent tribunal and finally judicial redress.
(b) How is he to be informed of his rights to further appeal?
Levels of appeal are published in the legislation (section 127E & F).
10. Provide information on the publication, as required by Article 12, of:
(a)
(i) the relevant national laws:
Published in the Customs and Excise Act.
(b)(ii) the regulations concerning the application of the Agreement:
Published together with the Customs Act.
(iii) the judicial decision and administrative rulings of general application relating to the
Agreement:
Available within the Customs and Excise Act.
(iv) general or specific laws being referred to in the rules of implementation or application:
Available within the Customs and Excise Department.
(c) Is the publication of further rules anticipated? Which topics would they cover?
Yes, to cover topics which appear to have been, either vaguely covered or totally forgotten
e.g. Articles 14 & 17 of the Agreement.
11. Questions concerning Article 13:
(a) How is the obligation of Article 13 (last sentence) being dealt with in the respective
legislation?
This has been covered under section 127B(7).  Release may be granted upon payment of a
cash deposit to secure the revenue.
(b) Have additional explanations been laid down?
No.G/VAL/N/2/KEN/1
Page 4
12. Questions concerning Article 16:
(a) Does the respective national legislation contain a provision requiring customs authorities to
give an explanation in writing as to how the customs value was determined?
Yes.
(b) Are there any further regulations concerning an above-mentioned request?
No.
13. How have the Interpretative Note s of the Agreement been included?
An amendment to the law is to be done to include the interpretative notes.
14. How have the provisions of the Decision on  the Treatment of Interest Charges in the
Customs Value of Imported Goods been implemented?
Currently interest charges do not form part of the value for customs.  This is covered in the
departmental instructions.
15. For those countries applying paragraph 2 of the Decision on the Valuation of Carrier
Media Bearing Software for Data Processing Equipment, how have the provisions of this
paragraph been implemented?
Valuation of Carrier Media Bearing Software, the transaction value is the basis of valuation.
__________