Skip to document content Go to main menu Go to search

The Tax Procedures (Unassembled Motorcycles) Regulations

Legal Notice 112 of 2020

This is the latest version of this Legal Notice.
The Tax Procedures (Unassembled Motorcycles) Regulations
Citation
Legal Notice 112 of 2020
Primary work
Tax Procedures Act
Date
Language
English
Type
Legal Notice
Original enactment
Download original enactment (PDF) (102.2 KB)
Related documents
Skip to document content
LAWS OF KENYA

TAX PROCEDURES ACT

THE TAX PROCEDURES (UNASSEMBLED MOTORCYCLES) REGULATIONS

LEGAL NOTICE 112 OF 2020

  • Published in Kenya Gazette Vol. CXXII—No. 126 on 3 July 2020
  • Commenced on 24 June 2020
  1. [Amended by Tax Procedures (Unassembled Motorcycles) (Amendment) Regulations, 2021 (Legal Notice 192 of 2021) on 17 September 2021]
  2. [Amended by Tax Procedures (Unassembled Motorcycles) (Amendment) (No. 2) Regulations, 2021 (Legal Notice 223 of 2021) on 19 November 2021]
  3. [Revised by 24th Annual Supplement (Legal Notice 221 of 2023) on 31 December 2022]

1. Citation

These Regulations may be cited as the Tax Procedures (Unassembled Motorcycle) Regulations.

2. Interpretation

In these Regulations, unless the context otherwise requires –"assembly" means the manufacturing process which utilises precision jigs, fixtures, and specialised facilities and equipment;"assembly plant" means a bonded warehouse facility with plant and equipment for the assembling of motorcycles operated by an authorised assembler;"assembly line" means an arrangement of machines, tools and persons in which a motorcycle is assembled by having each machine, tool or person perform a specific successive or progressive operation on an incomplete unit as it passes by in a series of stages organised in a direct line;"authorised assembler" means a person approved by the Cabinet Secretary to assemble motorcycles in a bonded warehouse facility;"Cabinet Secretary" means the Cabinet Secretary for the time being responsible for matters relating to finance;"chassis frame" means a motorcycle’s core structure that supports the engine, provides the hinge points for both front and rear suspension and supports the rider;"Commissioner" has the meaning assigned to it under the East African Community Customs Management Act, 2004;"component" means a uniquely identifiable input, part, piece, system or subsystem which is intended to be included as a part of a motorcycle;"completely knocked down kit" means a motorcycle kit comprising parts used for the assembling of a motorcycle;"Council" means the Council of Ministers of the East African Community established by Article 9 of the Treaty for the Establishment of the East African Community;"duty remission" means the reduction of import duty on goods that is granted by the Council under section 140 of the East African Community Customs Management Act, 2004;"duty remission committee" means the committee established under Regulation 4 of the East African Community Customs Management (Duty Remission) Regulations, 2008;"engine" means a machine with moving parts that converts power into motion;"motorcycle" means a vehicle having a seat or a saddle for the use of the rider and designed to travel on two wheels or three wheels in contact with the ground that is powered by a motor;"part" means an individual component shaped, fashioned or otherwise manufactured from one piece of metal or any other material and not joined or connected in any way to another component or material; and"unassembled" means a completely knocked down kit consisting of parts used for the assembling of a motorcycle.

Part II – APPROVAL FOR ASSEMBLING OF MOTORCYCLES

3. Restriction on importation of unassembled motorcycles

(1)A person who intends to import unassembled motorcycles under duty remission shall comply with the conditions specified in these Regulations.
(2)Motorcycles shall be classified as unassembled if imported in the conditions specified in these Regulations.
(3)A person shall not import unassembled motorcycles under duty remission if that person is not an authorised assembler.
(4)A person shall not be granted duty remission if that person does not source locally available parts as follows—
(a)in the case of parts specified in regulation 14 (1), three months from the coming into force of these Regulations; and
(b)in the case of parts specified in regulation 14 (2), twelve months from the coming into force of these Regulations.

4. Application for approval

(1)A person shall not be permitted to import unassembled motorcycles under duty remission unless that person is approved as an assembler in accordance with these Regulations.
(2)A person seeking approval as an assembler shall apply to the Cabinet Secretary upon recommendation by the Cabinet Secretary responsible for matters relating to industrialisation.
(3)The application for approval shall provide details of the types and models of motorcycles the applicant intends to assemble.
(4)The Cabinet Secretary shall, on receipt of an application under paragraph (2), approve or decline the application.
(5)A decision under paragraph (4) shall be communicated to the applicant in writing and if the application is declined, the communication shall include the reasons thereof.

5. Conditions for approval

A person applying for approval as an authorised assembler shall—
(a)be incorporated in Kenya;
(b)have an assembly plant;
(c)be tax compliant;
(d)be required to provide a time-bound localisation plan for sourcing locally manufactured motorcycle parts within the East Africa Community;
(e)provide a plan for the transfer of technology, knowledge and skills through training, mentoring and participation of Kenyan citizens; and
(f)provide any other information or documents as may be required by the Cabinet Secretary.

6. Duty Remission Committee to ensure compliance

The Duty Remission Committee shall be responsible for ensuring that authorised assemblers have complied with the provisions of the East African Community Customs Management (Duty Remission) Regulations, 2008, and these Regulations.

7. Assembling of motorcycles

(1)The assembling of motorcycles shall be undertaken in an assembly plant which shall be a bonded warehouse facility licensed by the Commissioner for the assembling of motorcycles.
(2)The Commissioner may allow the entry of locally manufactured parts into a bonded warehouse facility for the assembly of the motorcycles.

8. Assembly plant

(1)An authorised assembler shall be required to assemble motorcycles at an assembly plant licenced by the Commissioner.
(2)The assembly plant shall have an assembly line which shall—
(a)have quality control procedures;
(b)have been approved by the National Environment Management Authority;
(c)comply with health and safety Regulations; and
(d)meet any other requirement as may be specified by the Commissioner.
(3)The process of an assembly line shall be clearly defined in a process flow chart and positioned visibly within the assembly plant.

9. Approval to transfer

(1)An authorised assembler shall not transfer completely knocked down kits to another assembler without the approval of the Commissioner.
(2)The Commissioner may impose such conditions as may be necessary to an approval granted under paragraph (1).

10. Notification on cessation

(1)An authorised assembler who ceases or intends to cease the assembling of motorcycles shall notify the Commissioner and the Cabinet Secretary within one month of the intended date of cessation.
(2)A person who ceases the assembly of motorcycles shall comply with the provisions of the East Africa Community Customs Management Act, 2004, after the cancellation of the bonded warehouse licence.

11. Submission of report

An authorised assembler shall, at least once in each year, submit a report to the Cabinet Secretary responsible for industrialisation and a copy thereof to the Cabinet Secretary with respect to the implementation of the localisation plan.

12. Offences

A person who contravenes any of the provisions of these Regulations commits an offence and shall be liable, on conviction, to the relevant penalties specified under the Act.

Part III – MOTORCYCLE COMPLETELY KNOCKED DOWN KITS

13. Breakdown of completely knocked down kits

(1)A completely knocked down kit shall be imported with the engine and chassis frame unattached to other parts.
(2)Despite paragraph (1), the following parts shall be imported unattached to each other—
(a)the engine box kit;
(b)the chassis frame;
(c)fuel or petrol tank;
(d)silencer or muffler;
(e)seat;
(f)frame fittings;
(g)engine mountings;
(h)swing arm;
(i)shock absorbers;
(j)rider and pillion footrests;
(k)gear changers or levers;
(l)front and rear mudguards or fenders;
(m)tyres;
(n)tubes;
(o)rim wheels;
(p)front and rear hubs;
(q)front and rear brake panels;
(r)lever;
(s)transmission mechanism;
(t)fork suspension;
(u)fuel cap;
(v)fuel gauge;
(w)speed meter gauge;
(x)control cable;
(y)drive and transmission sprocket;
(z)drive chain;
(aa)head lamp;
(bb)fairing;
(cc)tail lamp;
(dd)indicator light;
(ee)horn;
(ff)wiring harness;
(gg)switches;
(hh)flashers;
(ii)starter relay;
(jj)fuse;
(kk)lock set;
(ll)cables;
(mm)handle bar;
(nn)mirrors; and
(oo)rubber hoses.

14. Parts to be sourced locally

(1)The following parts shall be excluded from the completely knocked down kits for motorcycles within six months after the publication of these Regulations—
(a)centre or main stands;
(b)crash guards;
(c)pillion handle bar or pillion or grip set;
(d)right third rider footrest or pillion set;
(e)left third rider footrest or pillion rest;
(f)side stand, kick stand or prop stand; and
(g)battery liquid, acid or fluid.
(2)The following parts shall be excluded from the completely knocked down kits for motorcycles on or before 30th June, 2022—
(a)air cleaner filter;
(b)wire harness;
(c)seat;
(d)battery;
(e)brakes rod or stopper;
(f)headlight stay; and
(g)main stay or bar-step.
[L.N. 192/2021, r. 2, L.N. 223/2021, r. 2.]

15. Transition

A person who was an assembler of motorcycles before the commencement of these Regulations shall apply for approval as an authorised assembler in accordance with these Regulations within a period of three months from the coming into force of these Regulations.
▲ To the top