DUTY DRAW BACK

DUTY DRAW BACK PROCEDURES

INTRODUCTION:
Duty draw back is a refund of all or part of any import duty paid in respect of
goods exported or used in a manner or for a purpose prescribed as a condition fo
r granting duty draw back. Duty may be refunded on raw materials used on the goo
ds locally made for export. This is to promote and make our products favorably c
ompete in foreign market. The scheme caters for both exporters who are manufactu
res and non-manufactures. The Duty Draw Back scheme is implemented and managed
by the AUDIT section of the Customs and Excise Department located on the 9th flo
or of the crested towers Building.

THE LEGAL FRAMEWORK:

The legal framework is as in accordance with the provisions of section 138 and 1
39 of the East African Community Customs Management Act 2004.

CONDITIONS FOR DUTY DRAW BACK:

Goods should be entered in the prescribed form and in the prescribed manner and
should be produced for examination by the customs officers before exportation..
The claimant should make and subscribe a declaration on the prescribed form to t
he effect that the conditions under which duty draw back may be allowed hav
e been fulfilled.
The goods should have actually have been exported.
The goods should have not been re-imported and are not intended to be re-importe
d into the Partner state.
The owner of the goods at the time of the declaration of such goods for drawback
was, and continuous to be entitled to draw back.
Claim should be made within 12 months after exportation of the goods.
Duty draw back may also be allowed on goods imported for use in the manufacture
of goods which are transferred to a free port or to an export processing zone (E
PZ) provided that:
The goods shall be a direct result of imported goods used in the manufacture of
such goods.
The owner of the goods shall have obtained authorization from the Commissioner p
rior to the manufacture.

REGISTRATION FOR DUTY DRAW BACK:

All exporters who intend to claim Duty draw back must register with URA and
clearly provide the following information on form DDB 001.
The name of the business.
The physical address and location.
The type of business of the company.
The main activities of the business.
Name, physical address and photograph of the directors/partners/owners.
The name of authorized dealers of the company.
The company s TIN and VAT number.
The company s telephone number and e-mail address if applicable.
After registration, TIN for each exporter is to be quoted in every correspondenc
e regarding DDB.
URA staff visit the exporter s premises to confirm its existence.

PROCUDURES FOR EXPORTS ON WHICH DUTY DRAW BACK IS CLAIMED:

The exporter lodges an export bill of entry with the nearest customs off
ice.
All exports are verified by customs officers.
All export should be carried in sealable vehicles.
The goods should be covered by a bond (CB4) except for items with no tax
revenue risk e.g. agricultural produce like coffee and tea.
Goods together with the export documents should be handed over to URA-Tr
ansit Monitoring Unit (TMU).
All vehicles carrying exports and moving by road should report to all cu
stoms gazetted check points before reporting to the exit stations.
Vehicles report to exit stations and are rotated outwards by URA customs
officers before the bond is cancelled at the source station.

CLAIMING THE DUTY DRAW BACK:

To claim a duty draw back, the authorized officer of the exporter fills a Duty d
raw back form (DDB003) and lodges it at the Duty draw back office within 12 m
onths of exportation of the goods.
The duty draw back claim is duly received, after confirming that the forms have
been properly filled and all the relevant documents attached.
Then the Customs Auditors verify the claim before making a report and recommenda
tion to the Commissioner upon which a refund is made.

DOCUMENTS:
The following documents should be attached to claim form:
Import documents to confirm that the input was imported and duty paid thereon.
Export bill of entry duly endorsed and stamped by customs
Commercial invoice.
Packing list.
Tally sheets and UCDA certificate.
Bond cancellation documents e.g. C39.
Export entries with outward rotation numbers and vehicles/ truck used for export
.
Worksheet summarizing the particulars of the claim.

EXAMPLES OF ITEMS WHICH MAY ATTRACT DRAW BACK IN THE AGRICULTURAL SECTOR.
Horticulture: packaging e.g. sleeves, craft paper, carton boxes and coca peat i
n which flowers are grown.
Fish: solid board cartons, corrugated cartons and labels.
Tea: caddy sacks.
Tobacco: carton boxes for packing tobacco for export etc.