Business Daily (Nairobi)
Allan Odhiambo
29 April 2008
A tax row is looming between the Government and aviation operators as the Kenya Bureau of Standards moves to revise the list of products covered under a special certification programme.
In its revised list, Kebs classifies new and used pneumatic aircraft rubber tyres and rims in the PVoC (Pre-export verification certificate) programme, which means the products will now attract a 15 per cent levy for inspection services rendered.
Aviators, however, claim that apart from the specifically listed items, the standards body would have control over all aircraft parts because some of them are vaguely listed under sub-titles such as bolts, screws, nuts and electric cables in its revised list.
"It would be illegal for Kebs to come into inspecting aircraft spares because we know this has always been and remains the mandate of the Kenya Civil Aviation Authority. This would be akin to double taxation," Eutychus Waithaka, the CEO of the Kenya Association of Air Operators told Business Daily.
The aviators further say that Kebs lacks the expertise to inspect aircraft spareparts and other equipment.
"What Kebs knows about aircraft spares that the manufacturer does not know was not made clear. What is more worrying, aside from this being just another unnecessary bureaucratic obstacle, is the fact that for its unsolicited "expert opinion" Kebs will charge 15 per cent of the value of the product," Harro Trempenau, who chairs the Aero Club of East Africa, said.
But a senior official at the standards body, who declined to be named, said the requirements to inspect aircraft parts has been in existence since 2005.
"This is nothing new with the requirements. The PVoC programme has been in existence since 2005 and has not changed. Even with new list, there are no listed items discriminatory to aircraft alone," he said.
The PVoC is a conformity assessment programme based on the WTO agreement and is locally administered by Kebs on behalf of the Government and is aimed at minimising the risk of unsafe and substandard goods entering the Kenyan market. Kebs has appointed verification partners, Messrs Intertek International and SGS, on regulated goods in the country of supply.
In the deals, all conformity assessments shall be based on Kenyan technical regulations and, where absent, international standards or technical regulations applicable in the country of supply. Analysts said PVoC programme is independent of and additional to any existing import processes such as destination inspection (DI).
Goods accompanied by Certification of Compliance (CoC) will be subjected to surveillance inspection based on the pre-determined surveillance plan. However, Kebs will endeavour to release such goods without undue delays.
Kebs says any regulated goods arriving at the port of entry without a CoC will be subjected to DI at a fee equivalent to 15 per cent of the cost of freight and insurance (CIF) value of the same. The importer will be further required to execute a redeemable bond of a similar amount pending quality verification.
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