Importers often focus on the supplier's price and forget that duty, fees, freight and clearing can add as much again. The good news is that several of those costs can be reduced legally, without risk. The only wrong way is to understate the value, which is an offence; see customs valuation explained.

1. Get the classification right

The duty rate depends on the HS code. A product that is correctly classified in a lower-rate heading pays less, and a wrong code can cost more or cause penalties later. Ask your clearing agent to confirm the code, and see the EAC common external tariff explained.

2. Check for duty remission or exemptions

Some goods and users qualify for reduced or zero duty, such as inputs for manufacturers, certain agricultural and medical goods and goods for export processing zones. These need approvals before the import, not after, so ask early.

3. Choose shipping terms carefully

The price you are quoted depends on the terms. A supplier's CIF price includes freight and insurance, while FOB or EXW leaves them to you. Compare quotes on the same basis, and use the cheapest reliable freight forwarder. See Incoterms explained for importers.

4. Consolidate and pack well

Shipping several orders together, in full containers where possible, usually costs less per unit than small separate shipments. Good packing reduces volume and breakage. Air freight is fast but costly for bulky goods; sea freight is slower but cheaper.

5. Avoid storage and demurrage

Ports and airports charge for each day your goods wait, and shipping lines charge demurrage for containers kept too long. Have your documents ready before the goods arrive; see the import documents checklist. A few days saved can pay for the agent.

6. Compare clearing agents

Agent fees differ. Get written quotes with every line, and see clearing agent or clear it yourself.

7. Recover the VAT

If you are VAT-registered, the VAT paid on the import is recoverable, so it affects your cash flow, not your cost; see importing goods for resale: VAT and records. File your returns on time so the credit is not delayed.

8. Reduce the number of fees by buying in volume

The Import Declaration Fee and levy are percentages, so volume does not change them, but a lower unit price from a larger order does lower the base. Balance savings against the cost of holding stock; see inventory management basics.

9. Build a landed cost model

Put all the costs in one place so you can see where the money goes. The landed cost calculator handles one shipment, and the import duty and landed cost workbook covers many items with duty rates, fees, VAT and clearing, and shows cost per unit. Price from the result; see how to price your products and services.

What not to do

  • Do not split invoices or mislabel goods to lower duty.
  • Do not pay unofficial fees.
  • Do not skip the inspection or the permits required for your goods.

These risk fines, seizure and a damaged reputation, and they are never cheaper in the end.

Check cars and bikes separately

Vehicles have their own rules; see how much it costs to import a car.

Customs law is technical. Confirm your plan with KRA or a licensed clearing agent before you ship.