When goods arrive at the port or airport, they must be cleared through customs before you can take them. That means filing a declaration, paying duty and taxes and arranging release and transport. Most importers use a clearing and forwarding agent, but some clear their own goods. Which is right depends on the goods, the volume and your experience.

What the clearing process involves

  1. Documents are collected: invoice, packing list, bill of lading or airway bill, and any permits or certificates.
  2. A customs entry is filed electronically, with the goods classified and valued.
  3. Duty and taxes are assessed and paid.
  4. Goods are inspected if selected, then released.
  5. Goods are transported to your premises.

See the import documents checklist for what to prepare.

What an agent does

A licensed agent knows the systems, the tariff and the people at the port. They classify and value the goods, file the declaration, pay the duty on your behalf, deal with inspection and storage, and arrange transport. For vehicles, they handle inspection, registration and the paperwork for the number plate.

What an agent costs

Agents charge a fee for their service, usually a fixed amount or a percentage of the value, plus pass-through costs such as port charges, storage, inspection, transport and the duty itself. Always ask for a written quote with every item, and for receipts for each pass-through payment. The import duty and landed cost workbook has a column for clearing and transport, and the landed cost calculator adds them to the goods.

When to clear it yourself

Self-clearing can make sense when:

  • The goods are small, personal or simple, and the classification is clear
  • You are importing regularly and have learned the process
  • You have the time to deal with the systems and queues
  • The agent's fee is large compared with the value

It can go wrong when classification is complicated, the goods need permits or inspection, or there are storage charges for every day of delay.

How to choose an agent

  1. Check that they are licensed and ask for references.
  2. Compare two or three quotes, line by line.
  3. Ask who is responsible if the goods are misclassified or delayed.
  4. Find out how they will tell you about storage charges that grow each day.
  5. Never pay duty to an individual's personal account; duty is paid to the revenue authority through its systems.

Protect yourself

Keep copies of the entry, the duty payment receipts and the release. These are the evidence for your input VAT claim and for any later audit; see importing goods for resale: VAT and records and how to keep business records for KRA.

Cars

For vehicles, an agent usually handles the pre-shipment inspection, the duty and the registration; see importing a used car: inspection and registration. The car import duty calculator lets you check the agent's duty figure.

Check the numbers

Whoever clears, you should be able to estimate the duty yourself; see how to calculate import duty on goods. If the agent's figure is far from yours, ask why.

Rules and fees vary. Confirm them with KRA and your agent.