KENYA: Illegal Garment Imports Expose AGOA Loophole
Another garment export racket has been exposed by the Kenya Revenue Authority, with the interception earlier this week of a consignment ready-made garments that had been imported into the country for re-export to America under the African Growth and Opportunity Act (AGOA).
The multi-million shillings shipment was being brought into the country as raw material and was seized at the port of Mombasa.
Ms Lucy Njoe, KRA's corporate and public affairs manager in charge of the Southern Region, told the Nation that initial investigations indicated that the garments had been imported from China by one of the foreign companies licensed by the Government to manufacture garments under the Export Processing Zones - AGOA arrangement for the American market.
KRA's clampdown follows the discovery last week of a scam in which some EPZ firms were importing ready-made garments from the Far East for re-export to America under AGOA.
Garments manufactured by companies in EPZs for American export under the AGOA arrangement are exempt from duty.
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