These are guarantees provided by either the Insurers or Banks to KRA (Kenya Revenue Authority) that duty will be paid if certain conditions are not met pertaining to goods and merchandise that enter the country through the Port of Mombasa and are bound for destinations outside the country, bonded warehouses in the country,  or for major projects undertaken by the Government. These bonds are not insurance policies of indemnity, they are guarantees  that if the specific conditions for the specific bond are not met, the guarantors in this case the Insurer or the Bank that has guaranteed the bond is called upon to pay out the duty amount to KRA.

They are executed using prescribed forms as Specified by the laid down laws and regulations and they have specific numbers that differenciate them and are captured in the Customs system (CB 1 to 18).  They also carry potential liability of accrual of penalties and represent a debit with Customs.  They are required to be cancelled when the goods finally sucessfully  reach the required markets.

PARTIES TO THE BONDS

Customs 

Principal

Guarantors

PURPOSE OF THESE BONDS

Protect the revenue on goods

Assist to suspend custom duties & VAT

Facilitate storage of goods in Transit

Prepare Warehoused goods for marketing

To enable manufacturers to beneft from export regimes

THE BONDS AND THEIR SPECIFIC ROLE

CB1  -  Bond for delivery of perishable goods prior to payment of duty to customs

CB2 - Bond for removal of goods from one Port to be examined and entered at another Port or Place

CB3 - Bond for the Warehousing of goods or removal of warehoused goods

CB4 - Bond for Exportation

CB6 - General Bond for security of warehoused goods

CB7 - Bonds for goods to be shipped prior to Entry

CB8 - Transit Bond

CB9 - Transhipment Bond - Cargo being shipped from one port to another

CB10 - Bond for the re-exportation of imported goods delivered without payment of duty

CB11 - Bonds for Customs Agents

CB12 - Bonds for the conveyance of goods subject to customs control

CB13 - General Bond for ensuring compliance with customs laws and securing duties on goods deposited into an inland container depot (ICD)

CB14 - Bon for removal of goods to/from export processing

CB18 - Bond for removal of goods to/from SHEDS

REQUIREMENTS

Certificate of company registration

Memorandum and Articles of Association

VAT Certificate

PIN of the company and directors

ID/Passports of directors/partners

Company audited accounts for two years

Bank Statement for six months

Company Profile

Company Letter Head

General Counter Indemnity duly signed by a minimum of two directors and witnessed by an Advocate and should be stamped and sealed.  These directors should be appearing in the Memorandum and Articles of Association

Counter guarantee duly signed by a minimum of two directors and witnessed by an advocate and should be stamped and sealed.  These directors should be appearing in the Memorandum and Articles of Association

Valid Trading Licence

payment of premium should be by cash/banker's cheque only

Security of 5% of bond amount