Kenya Revenue Authority (KRA) has thwarted a syndicate involving the exportation of undervalued consignments of hides and skins at the Mombasa port to evade payment of export duty.
Detectives from the Authority intercepted and seized two undervalued consignments of hides and skins just before being shipped out of the Mombasa port.
According to the KRA investigation and enforcement department, on August, 24, 2021, KRA received intelligence reports that Daybee Investments Limited, a company that deals in exports of hides and skins was in the process of exporting two containers of hides and skins to Nigeria by fraudulently declaring the weights of the consignments as 5,000Kgs each respectively.
The two containers were detained pending verification by Multi-Agency Team.
Upon verification on September, 7 2021 in the presence of the exporter and clearing agent, it was established that the actual weights were 29,800kgs and 30,500kgs respectively.
The perpetrators of the scheme had attempted to circumvent the law requiring hides and skins exports to attract duty at the rate of 80% of the declared CIF or USD 0.52 per KG whichever is higher which is aimed at promoting the local hides and skins Industry.
Two suspects who were arrested in connection to the incident were on Wednesday arraigned before Mombasa Resident Magistrate Ms Ritta Orora charged with undervaluation to deny the Government Ksh. 2,800,000 in export duty.
The accused, David Ndile Ngunga, Bernadine Mwikali and Daybee Investments LTD were charged that on 24th August 2021 within Mombasa County in the republic of Kenya, being directors of limited Company, together with others not before Court unlawfully tried to export raw hides and skins to Nigeria by fraudulently declaring the weights of two Consignments as 5000 Kilogrammes instead of 29,800 Kilograms, and 30,500 Kilogrammes respectively, thereby leading to underpayment of duties amounting to Ksh. 2,800,218.
The accused also faced an alternate charge of making or causing to be made a declaration which is false contrary to the East African Community Customs Management Act 2004.
The accused persons who denied committing the offence were released on a Ksh. 1 Million cash bail.
The case was set for mention on June, 29, 2022.