State authorities to seize vehicles utilized in illicit trade, as per court decision

In a series of recent rulings, the High Court in East Africa has made it clear that vehicles used to smuggle goods without paying taxes are liable to forfeiture. This move is aimed at curbing tax evasion and ensuring compliance with customs regulations.

Last year, a truck was intercepted in Kakamega, and its seizure was upheld by the High Court. The court ruled that the trial court erred in releasing the truck, as it was an exhibit and could only be released upon production in court.

Similarly, a Toyota Mark II was involved in a case where the owner was charged with three offences, convicted of possession of uncustomed goods, and the vehicle itself lacked importation and registration documents. The customs authority (Zollbehörde) has the right to seize and retain the vehicle after the verdict and before a confirmation hearing takes place.

The East African Community Customs Management Act, 2004, states that vessels, aeroplanes, and motor vehicles used to convey uncustomed goods or excisable goods with counterfeit excise stamps are liable to forfeiture under Section 211. This means that if a vehicle is found to be used in the transport of such goods, it can be confiscated by the authorities.

In May this year, a Toyota Voxy was suspended from being released to its registered owner, Kevin Odhiambo, who is facing trial for possession and conveyance of uncustomed goods valued at Sh7 million. The case involved 350 cartons containing 5,000 sticks of export Supermatch cigarettes worth Sh26 million. The conviction of the vehicle's owner alone, in accordance with section 215, makes the vehicle liable to forfeiture. If convicted for bringing goods without paying taxes, the vehicle used in the offence becomes a State asset.

Acting Commissioner for Investigations and Enforcement, Levi Mukhweso, urged transporters, drivers, and turn boys to ensure they have all requisite documentation while conveying goods both within and outside the region. He also advised traders to purchase excisable products from licensed manufacturers and their approved distributors, and for dealers to keep proper records.

In another case, Geoffrey Cheruiyot Bor's truck was directed to be released by the trial court, but this decision was challenged by KRA and the Office of the Director of Prosecution (ODPP) at the high court. The high court ruled that the vehicles used to smuggle goods without paying taxes are liable to forfeiture, overturning the trial court's decision.

In conclusion, the High Court's rulings serve as a deterrent to those engaging in tax evasion activities, especially those using vehicles to transport uncustomed goods. It is essential for individuals and businesses to comply with customs regulations to avoid the forfeiture of their vehicles.

State authorities to seize vehicles utilized in illicit trade, as per court decision