KRA Introduces New Car Import Rules Allowing Dealers to Take Vehicles Home Before Registration

The Kenya Revenue Authority (KRA) has introduced a new procedure for clearing imported second-hand vehicles, allowing licensed car dealers to move their stock from customs yards to their business premises without completing the full vehicle registration process.

The changes mean dealers can now clear imported vehicles by paying the applicable customs duties, taxes and levies before taking them to their yards, where they can display them and look for potential buyers.

Previously, the vehicle registration process had to be completed before dealers could move ahead with selling their imported stock. Under the revised arrangement, formal registration will only be undertaken after a customer purchases a vehicle.

The changes follow a directive by President William Ruto, communicated through the National Transport and Safety Authority (NTSA), seeking to streamline the handling of imported vehicles belonging to licensed dealers.

In an internal circular issued by KRA’s Customs and Border Control Department, the authority outlined the new procedures and responsibilities of dealers and customs officers.

“The President issued a directive through NTSA that vehicles imported by licensed dealers be released upon payment of all applicable customs duties, taxes and levies pending completion of the vehicle registration process,” the circular stated.

Under the revised arrangement, dealers must first submit an import declaration through the Integrated Customs Management System (iCMS) after their vehicles arrive in Kenya.

At this stage, all applicable customs duties, taxes and levies must be paid. However, NTSA registration fees and related levies will not be collected until a vehicle is sold.

“Applicable customs duties and taxes will be paid. NTSA registration fees and levies shall not be collected during this initial customs entry stage,” KRA clarified.

Once the payments have been confirmed, customs verification officers will physically inspect the vehicles to establish that their details correspond with the information provided in the import declarations.

The entries will then be reviewed by a Centralised Release Officer, who will determine whether the vehicles meet the requirements for release.

However, customs clearance alone will not automatically allow dealers to move the vehicles out of the customs yard.

Dealers will first be required to obtain a Kenya Dealer (KD) identifier through the NTSA online platform. The identifier will consist of a KD number linked to the vehicle’s chassis number.

The information will also be captured in KRA’s customs system to facilitate tracking and verification.

Before approving the movement of the vehicles, a Border Control Officer will physically compare the identifier recorded in iCMS with the details displayed on the actual vehicle.

This additional verification is intended to ensure that the vehicle being released is the same one captured in the customs records.

“If the details match, then the motor vehicle can be released to the dealer for onward transfer to the dealer’s yard,” KRA stated.

After reaching their respective yards, the vehicles can remain in the dealers’ possession as they search for prospective buyers.

Importantly, dealers will not be required to complete the ordinary NTSA registration process immediately after importing the vehicles. Instead, the process will be finalised once a buyer has been secured.

When a customer purchases a vehicle, the dealer will submit an application to NTSA for formal registration and pay the required registration charges through the eCitizen platform.

The newly issued registration number will subsequently be transmitted automatically to KRA’s customs system through an Application Programming Interface (API).

According to the authority, this arrangement will support the reconciliation of vehicle records and strengthen audit tracking between the customs and vehicle registration systems.

The changes are expected to ease the process for licensed second-hand car dealers by separating customs clearance from final vehicle registration.

They will also allow dealers to hold cleared vehicles at their business premises while waiting for customers instead of completing the entire registration process before putting the vehicles up for sale.

Nevertheless, the new arrangement does not exempt imported vehicles from customs taxation or physical verification.

Dealers must still meet the applicable import requirements and obtain the necessary authorisation before moving their vehicles from customs-controlled areas.

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