499 THE FINANCE ACT, 2000 No. 9 of 2000 Date of Assent: 29th December, 2000 Date of Commencement: See Section I An Act of Parliament to amend the law relating to various taxes and duties and for matters incidental thereto ENACTED by the Parliament of Kenya, as follows:- PART I - PRELIMINARY Short title and 1. This Act may be cited as the Finance Act, 2000 and commencement. shall come into 'operation, or be deemed to have come into operation, as follows - (a) section 9, on the 13'^ October, 1996; (b) sections 18(b)(i) and 129, on the 6'h November, 1998; (c) sections 40, 46, 54, 88 (item 9), 88 (item 10) and 126, on the 1" July, 2000; (d) sections 6, 8 and 35, on the P September, 2000; (e) sections 7, 16(b), 18(a) (iv), 18(a) (viii), 36, 39(a)(iv), 39(a)(ix), 39(b)(iii), 128, 129 and 130 on 30* November 2000; (t) sections 22(a), 22(b), 22(d), 22(e), 25(a), 25(c), 34, 41, 42, 44, 45, 48, 55(a), 55(b), 56, 57, 58, 59, 60, 61, 62, 63, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 82, 83, 84, 100, 101, 102, 103, 104, 108, 109, 110, 111, 112, 113, 114, 115, 116, 117, 500 No. 9 Finance 2000 118, 119, 120, 121, 122, 123, 124 and 125 on the January, 2001; (g) sections 22(c), 23, 24, 25(b), 26, 27, 28, 29, 30, 31, 32, 33, 37, 38, 39(a)(i), 39(a)(ii), 39(a)(iii), 39(a)(v), 39(a)(vi), 39(a)(vii), 39(a)(viii), 39(b)(i), 39(b)(ii), 39(b)(iv), 39(b)(v) and 39(c) on the 16" June, 2000; (h) all other sections, on the 15'h June, 2000. PART II - CUSTOMS AND EXCISE Amendment of 2. Section 2 of the Customs and Excise Act is section 2 of amended- Cap. 472 . (a) in subsection (1), by inserting the following new definition in proper alphabetical sequence - "Tribunal" means the Appeals Tribunal established under section 127E; (b) in subsection (2) - (i) by deleting the proviso to paragraph W(i) and inserting the following new proviso - Provided that where the vehi (excluding a motor cycle) - (aa) has been used for a period exceedi' five years but not exceeding eight years, the additional duty shall be twenty per 501 2000 Finance No. 9 centum or thirty thousand shillings. whichever is the higher, except for load carrying vehicles of a carrying capacity exceeding five metric tonnes and buses of a carrying capacity exceeding twenty-five passengers in respect of which the additional duty shall be twenty per centum or one hundred thousand shillings, whichever is the higher: or (bb) has been used for a period exceeding eight years, the additional duty shall be twenty per centum or sixty thousand shillings, whichever is the higher. (ii) by inserting the following new paragraph immediately after paragraph (m) - (n) where parts for the assembly of motor vehicles in a bonded warehouse are imported separately by an approved motor vehicle assembler, the rate of duty applicable shall, notwithstanding any other provision of this Act, be that applicable to unassembled motor vehicles: Provided that such parts shall be imported in such condition as may be prescribed by the Commissioner. (c) by inserting the following new subsection immediately after subsection (3) - 502 No. 9 Finance 2000 (4) For the avoidance of doubt, the provisions of the First Schedule with respect to - (a) tariff descriptions and the classification of goods; (b) units of quantities and the rules of interpretation of that Schedule set out in subsection (3) shall apply to the Second, Fourth and Fifth Schedules. Amendment of 3. Section 22 of the Customs and Excise Act is section 22 of - Cap. 472. amended (a) in subsection (1) by inserting the following at the end thereof - "or for reshipment or destruction of any such goods which are condemned while still in the dry port or inland transit shed: Provided that where the owners or agents of the aircraft or vessel fail to meet the cost of reshipment or destruction of any goods condemned as aforesaid, the operator of the transit shed shall bear such cost. (b) by inserting the following new subsection immediately after subsection (2) - (3) The owner or agent of an aircraft or vessel, or, as the case may be, the operator of a dry port or inland transit shed who fails to meet 503 No. 9 2000 Finance the cost of reshipment or destruction of any condemned goods pursuant to subsection (1) shall be guilty of an offence. 4. Section 34 of the Customs and Excise Act is Amendment of section 34 of amended - Cap. 472. (a) in subsection (2) - (i) by deleting the words "restricted or prohibited" and substituting therefor the words "restricted or not"; (ii) in paragraph (2)(ii), by deleting the words "or prohibited"; (iii) by inserting the following new paragraph immediately after paragraph (iii) - (iv) any such goods which are prohibited under the provisions of any written law for the time being in force in Kenya shall not be sold. (b) in subsection (4), by deleting the words "removed from the customs warehouse" and substituting therefor the words "withdrawn from the auction sale". Section 46 of the Customs and Excise Act is Amendment of 5. section 46 of amended in the proviso to subsection (1) by inserting the Cap. 472. following immediately after the words "duty free shops" - or locally assembled motor vehicles warehoused by approved motor vehicle assemblers,". 504 No. 9 Finance 2000 Amendment of 6. section 127B of Section 127B of the Customs and Excise Act is Cap. 472. amended - (a) in subsection (4), by deleting the words "appeal to the Commissioner" and substituting therefor the words "within thirty days of the day he is notified of the decision, appeal to the Tribunal established under section 127E." (b) by deleting subsection (5) and inserting the following new subsection - (5) The Tribunal shall consider and determine every appeal made under subsection (4) and shall cause the decision thereon to be served upon the appellant specifying the reasons therefor. (c) in subsection (6) by deleting the word "Commissioner" and substituting therefor the word "Tribunal". Amendment of 7. section 127D of Section 127D of the Customs and Excise Act is Cap. 472. amended by inserting the following new subsection immediately after subsection (4) - (4A) Goods in respect of which a certificate of inspection has been issued under subsection (4) shall not be subject to any further inspection except by a proper officer. Insertion of 8. sections 127E The Customs and Excise Act is amended by and 127F in inserting the following new sections immediately after Cap. 472. section 127D - 505 Finance No. 9 127E(1) The Minister shall, by Establishment of Appeals order published in the Gazette, Tribunal. establish an Appeals Tribunal for the purposes of hearing appeals under section 127B. (2) The Tribunal shall consist of a chairman and not less than four but not more than six members who shall be appointed by the Minister and who shall hold office for such period and upon such terms and conditions as the Minister may determine. (3). The quorum for a meeting of the Tribunal shall be the chairman and two other members. (4) All matters before the Tribunal shall, in the event of a difference of opinion, be decided by the votes of the majority of the members thereof. 127F(1) A person shall, before Procedure for filing an appeal with the Tribunal, appeals. deposit with the Commissioner the full duty assessed under section 127B. (2) Any duty deposited with the Commissioner under subsection (1) shall, where the decision of the Tribunal or the High Court, as the case may be, is in favour of the 506 No. 9 Finance 2000 aggrieved person, be refunded to such person, less the amount of duty which was not disputed. (3) On hearing an appeal, the Tribunal shall have all the powers of a subordinate court of the first class to summon witnesses, to take evidence upon oath or affirmation and to call for the production of books and other documents. (4) Where the Tribunal considers it desirable for the purpose of avoiding expense or delay or any other special reason to do so, it may receive evidence by affidavit and administer interrogations and require the person to whom the interrogations are administered to make a full and true reply to the interrogations within the time specified by the Tribunal. (5) In its determination of any matter the Tribunal may take into consideration any evidence which it considers relevant to the subject of an appeal before it, notwithstanding that the evidence would not otherwise be admissible under the law relating to evidence. (6) The Tribunal shall have the power to award the costs of any 507 Finance No. 9 proceedings before it and to direct that such costs be taxed in accordance with any scale prescribed for suits in the High Court or to award a specified sum of costs. (7) All summons, notices or other documents issued under the hand of the chairman of the Tribunal shall be deemed to be issued by the Tribunal. (8) Any interested party may be represented before the Tribunal by an advocate or by any other person whom the Tribunal may, in its discretion, admit to be heard on behalf of that party. (9) Any person summoned by the Tribunal to attend and give evidence or to produce any records, books of account, statements, or other documents, or required to answer interrogations and who without sufficient cause - (a) refuses or fails to attend at the time and place mentioned in the summons served on him; or (b) refuses or fails to answer fully and satisfactorily, to the best of his knowledge and belief 508 No.