Two charges appear on almost every import bill, whatever the goods: the Import Declaration Fee (IDF) and the Railway Development Levy (RDL). They are small compared with duty and VAT, but they add up on large shipments and importers should never forget them.

The Import Declaration Fee

The IDF is a percentage of the customs value, charged when you file the declaration, with a minimum amount. The rate has changed between Finance Acts, and published summaries currently show 2.5%, though some dealers quote other figures, so check the rate for your import month with KRA. The fee goes to the revenue authority for processing declarations and related services.

The Railway Development Levy

The RDL is 2% of the customs value, charged on most imports, and it was introduced to help fund the railway. You pay it whether or not you use the railway. Some goods are exempt, for example certain goods for specific projects or under exemptions in the law.

How to calculate them

Both are calculated on the same value:

  • IDF = customs value x IDF rate
  • RDL = customs value x 2%

On a customs value of KES 1,500,000 they come to KES 37,500 for the IDF at 2.5% and KES 30,000 for the RDL, a total of KES 67,500. See the full sequence, including duty and VAT, in how to calculate import duty on goods.

What they are not

  • They are not part of the duty base for VAT in the usual calculation, which is the customs value plus duty and excise.
  • They are not recoverable, unlike the VAT. They are a cost of the goods.

Vehicles and special cases

Cars and motorcycles pay the IDF and RDL as well, on the value set by customs; see how much it costs to import a car. The finance acts sometimes change exemptions for particular sectors, for example some aviation-related imports, so check your case.

Add them to your landed cost

Your landed cost must include them. The landed cost calculator adds duty, fees, VAT, shipping and clearing, and the import duty and landed cost workbook works out IDF and RDL for each line on the Rates sheet, where you can change the percentages. The import duty calculator does it for a single consignment.

Where to find the rates

The IDF and RDL rates are set in the law. Look at the latest Finance Act, KRA's customs notices or ask a clearing agent. Because rates move, change the figure in your workbook when the law changes.

Reducing the base

Because both fees are percentages of the customs value, anything that legitimately lowers the customs value lowers them too, for example a better freight deal or a correct discount shown on the invoice; see how to lower your landed cost legally and customs valuation explained. Understating the value is not a legal route.

Records

Keep the entry showing the IDF and RDL paid. They are part of the cost of your stock; see importing goods for resale: VAT and records.

Rates and exemptions change with Finance Acts. Confirm them with KRA or a licensed clearing agent.