Licensing and Registration Flashcards
What are the activities requiring a licence? (EDA)
manufacture of excisable goods importation of excisable goods supply of excisable services use of spirit or illuminating kerosene to manufacture unexcisable goods any activity imposed by commissioner
activities requiring licensing (Excise Duty Regulations)?
importation of cigarette paper and cigarette packaging
importation of raw/unprocessed tobacco
local purchase/importation of ethanol
denaturing of spirits
What is the prescribed licensing fee?
KES 100,000 for manufacturers or importers of alcoholic beverages and tobacco and tobacco products
KES 50,000 for manufacturers/importers of other excisable goods
Documents required for licensing?
COI PIN TCC Bank details KEBS certificate description of the manufacturing process building plans liquor license single business permit document evidencing possession of premises import entries and custom payment for prior imports excise stamp validation infrastructure premises inspection report route map of premises
Process of licensing?
application on itax task generated on itax inspection of premises interview of applicant approval/rejection of application execution of excise security bond
Particulars of an excise license?
class/classes of excisable goods
factory/factories at which manufacturing takes place
Name of licensee
obligations of licensee in respect of registration?
display license in a conspicuous place. in case of excisable services, certified copy at all places of business
notify commissioner ( 7 days prior):
if one ceases to carry on business
change in name, address, place of business, ownership, activities
any period one closes operations - within 7 days of closure
change in factory, plant or equipment used to manufacture
maintain measuring and metering devices
store excisable goods in a manner to facilitate taking full account of goods
raw materials account
finished goods account
pay excise duty
comply with all requirements
circumstances leading to a suspension of license?
ceases to carry on business
change in name, address, place of business, nature of principle activity
closes operations temporarily
not keeping proper records
fails to comply with act
breach of conditions of license
makes false/misleading statements to commissioner
factory/plant and equipment no longer adequate
possession of unexcised goods
engaging in activities not specified in license
activity becomes prohibited
premises/equipment is altered without approval
Circumstances for cancellation of license?
notification from licensee of ceasing to carry on activity
failure to appeal suspension of license within 14 days
failure to comply with notice requiring remedy of deficiencies leading to suspension of license
commissioner rejects an appeal against suspension of license
Procedure of suspension/cancellation of license?
21 day notice giving grounds
notice may require licensee to remedy deficiencies
suspension of license if licensee fails to comply
appeal of notice of suspension to be done within 14 days
upon lodging a notice of appeal, the commissioner may:
accept appeal and revoke suspension
give notice of action to be taken to remedy deficiencies
reject appeal and cancel license
circumstances where the commissioner may suspend a license without notice?
tax fraud
use of counterfeit stamps on excisable goods
goods bearing counterfeit stamps
violation of regulations on health and safety standards or packing of goods
consequences of suspension/cancellation of a license?
immediately cease to manufacture excisable goods
pay all excise duty unpaid
dispose of excisable goods and materials in accordance with the direction of the commissioner
commissioner may require manufacturer to remove goods to another place approved by commissioner
commissioner may take control of the factory and excisable goods
commissioner may require person to pay costs incurred for suspension/ cancellation
The rationale for licensing?
ensure all excise liabilities created can be identified
for KRA to monitor and track any excise activities
restrict applicant to a single activity, or range of related activities at known and identifiable locations
control nature of operations
enables review processes
What are the penalties for manufacture of excisable goods without licence?
double the excise duty or 5M whichever is higher
plant and excisable foods or material shall be seized
