The same box of goods can be treated very differently at the port depending on why you are importing it. A person bringing in a laptop for their own use, and a trader bringing in fifty laptops to sell, face different rules, different paperwork and different tax consequences. Knowing which side of the line you are on avoids penalties and unexpected bills.

How customs decides

Customs looks at quantity, packaging, the nature of the goods and the documents. A single item for personal use is usually treated as personal, while repeated shipments or bulk quantities look commercial. Declaring honestly is essential: describing a commercial shipment as personal can lead to seizure and penalties, and the reverse can cost you reliefs you were entitled to.

Duty and taxes on personal imports

Personal imports pay duty and VAT based on the value, the classification and the origin of the goods, unless a relief applies. Small parcels from online shopping may be handled by the courier, who collects the charges on delivery; see courier parcels and personal shipments: duty in Kenya. People returning to live in Kenya may qualify for an allowance on personal and household effects, explained in returning resident duty-free allowance, and the returning resident duty calculator estimates the charges.

Duty and taxes on goods for resale

Goods imported for sale pay the same duty and VAT, but the treatment afterwards differs. A VAT-registered business can usually claim the import VAT back on its return, as long as it holds the right documents. A person importing for own use cannot. This difference can change the real cost of an import by the VAT rate (16%) of the value or more, so it matters for pricing. Import VAT: how to claim it back shows the process and importing goods for resale: VAT and records lists what to keep.

Permits, standards and restrictions

Commercial imports often need extra permits and compliance. Electronics, food, cosmetics and many consumer products must meet standards, and some need approvals. Personal imports may be exempt or lightly checked, but restricted goods are restricted either way. Check prohibited and restricted imports into Kenya and KEBS, PVoC and import standards before you order.

Records and registration

A business importing regularly needs a KRA PIN, usually an importer's registration and proper accounting records, and may need a clearing agent; see clearing agent or clear it yourself. A personal importer needs far less, but should still keep invoices and receipts in case of a query. For the business side, how to keep business records for KRA sets the standard.

Work out the real cost

Whichever side you are on, calculate the full cost before you buy. The landed cost calculator adds the price, freight, insurance, duty, VAT and other charges, and the import duty calculator focuses on the duty. For a business, the import duty and landed cost workbook keeps the figures for each shipment, so you can price products correctly.

Vehicles and motorcycles

Vehicles have their own rules on age, duty, excise and registration. See how much it costs to import a car to Kenya and importing a motorcycle: duty and costs. A vehicle imported for your own use and one imported for sale are treated differently for VAT and income tax.

Gifts and samples

Samples and gifts may enter at reduced or no duty if they meet strict conditions, but they must not be a way of bringing in commercial stock. Keep the documents that show what they are. Customs may ask for proof.

Mixed-purpose imports

If you buy some goods for yourself and some to sell, separate them on the invoice and in your records. Mixing them invites questions and makes your VAT claim harder to defend.

The practical test

Before you import, ask yourself: Am I going to sell these, or use them? Do I need to be registered? Can I claim the VAT back? Do I need a permit? Answer those four questions honestly, keep your documents and you will avoid most of the trouble that catches importers out.

Ask before you ship

If you are unsure which category applies, ask your clearing agent or KRA before the goods leave the supplier. Describe the quantity, the purpose and the documents you hold. A clear answer in advance costs nothing, while a wrong assumption at the port can cost the goods. Keep the reply, and file it with the shipment documents.