The Excise Duty (Excisable Goods
Management System) Regulations, 2017
The Excise Duty (Excisable Goods Management System) Regulations, 2017
have recently been published in the Kenya Gazette Supplement No. 44 under
Legal Notice No. 48.
Requirement for Affixing of Excise Stamps
Every package of excisable goods, except motor vehicles, manufactured in or
imported into Kenya, are required to be affixed with an excise stamp. The
purpose of this is to:
Deter counterfeiting;
Facilitate tracking of the stamps and excisable goods along the supply chain;
Enable accounting for the production of excisable goods manufactured or
imported; and
Facilitate any persons in the supply chain to authenticate the stamps and
excisable goods.
New Charges on Excise Stamp Fees
The Regulations have introduced Excise stamp fees to be charged on excise
stamps for different types of excisable goods. The excise stamp fees shall be
paid to the Commissioner of Revenue by the manufacturers and importers of
excisable good based on quantity of stamps issued to them. Below is a
summary table that shows the category of goods and the excise stamp fees
charged:
Category of excisable goods Fees
Cigars, cheroots, cigarillos, containing tobacco or tobacco substitutes
Cigarettes containing tobacco or tobacco Substitutes
2.8 per stamp
Other manufactured tobacco and manufactured tobacco
substitutes;“homogenous” and “reconstituted tobacco”; tobacco extracts
and essences
Wines including fortified wines, and other alcoholic beverages obtained by
2.8 per stamp
fermentation of fruits
Compounded spirits of alcoholic strength exceeding 10% 2.8 per stamp
Spirituous beverages of alcoholic strength not exceeding 10% 1.5 per stamp
Beer, Cider, Perry, Mead, Opaque beer and mixtures of fermented
1.5 per stamp
beverages with non-alcoholic beverages
Mineral water and aerated water of tariff no. 2201.10.00 0.5 per stamp
Fruit juices (including grape must), and vegetable juices, unfermented and
not containing added spirit, whether or not containing added sugar or 0.6 per stamp
other sweetening matter
Sweetened or flavoured water and non-alcoholic beverages not including
0.6 per stamp
fruit or vegetable juices of tariff heading 2202
Cosmetics and Beauty products of tariff heading Nos. 3303, 3304, 3305
0.6 per stamp
and 3307
The Procedure for Application of Excise Stamp to the Commissioner
A manufacturer or importer of excisable goods is required to apply to the
Commissioner for excise stamps in a prescribed form at least sixty days
before the manufacture or importation of the excisable goods. Payment of the
excise stamp fees by a manufacturer or importer of excisable goods shall be
made after the Commissioner approval of the application. However, the
Commissioner may impose, issue excise stamps to an importer of excisable
goods before importation. Proof of importation by an importer of excisable
goods maybe required by the Commissioner before issuing the importer with
the excise stamps.
Manner of Affixing Excise Stamps
Excise stamps are expected to be affixed on excisable goods in the following
manner specified by the Commissioner:
In case of locally manufactured goods, at the production facility immediately after
packaging; or
In the case of imported goods, at a place approved by the Commissioner within
five days of the clearance for importation of the goods for home use.
Excise stamps on imported excisable goods to be affixed at the production
facility in the exporting country may be allowed in accordance with such
conditions as the Commissioner might specify. In addition, the Commissioner
can upon the application by the manufacturer or importer, permit digital
stamps to be printed by the System on each package and in a visible place
with indelible security ink to enable the authentication of, tracking and tracing
of, and production accounting for excisable goods.
Transfer of Excise Stamps
Transfer of excise stamps held in stock by a manufacturer or importer of
excisable goods to another manufacturing or importing unit owned by the
same manufacturer or importer is permitted subject to the prior approval of the
Commissioner. Transfers carried out without the commissioner’s approval is
deemed as an offence.
The commissioner is required to prescribe the procedure and conditions for
transfer and accounting of the excise stamps.
Duty Free Goods
Packages of duty free or export excisable goods specified in the Regulations
are required to bear distinct markings to enable the goods to be trackable and
traceable.
In addition, the Regulations make it a requirement for any material wrapping
package for wholesale purposes to have the following printed on it:
In the case of exports, the country of final destination;
In the case of excisable goods for consumption in Kenya, “For Use In Kenya”;
In the case of excisable goods for sale to duty-free shops, or Diplomatic shops,
“Duty Free”;
In the case of excisable goods for consumption by Kenya Defence Forces,
“Kenya Defence Forces” and,
In the case of excisable goods for consumption by National Police Service, “
National Police Service”
Exempt Goods from Excise Stamp Charges
The regulations exempts the following excisable goods from the requirement
of excise stamps—
Excisable goods manufactured for export, the Kenya Defence Forces, the
National Police Service or delivered to a duty free shop;
Excisable goods imported or purchased from a duty free shop by privileged
persons or institutions listed in the Second Schedule to the Act; and
Excisable goods imported into Kenya as samples which shall have been
exempted from import duty under the Fifth Schedule to the East African
Community Customs Management Act, 2004.
In case of any inquiries on the Regulations please contact
[Link]@[Link].
For application on Duty Remission, please contact [Link]@[Link].
