Kenya introduced several tax-related measures that may have direct and indirect impacts on traders and shippers, KPMG said in a Nov. 26 post. Several value-added tax measures broaden the scope of the definition of “supply of imported services” to people who may not be registered for VAT, the post said, and expand the scope of supplies subject to VAT to include goods purchased online. Kenya also introduced “expanded relief for goods exported from special economic zones” and a larger list of “supplies” exempt from VAT, including “plant, machinery and equipment” used with certain “plastics recycling plants,” as well as certain corn, flour and wheat products. Another measure expands the scope of taxable income of “non-resident ship owners” to include payments from “demurrage and detention of containers at a port,” KPMG said.
Several issues related to detention and demurrage remain to be addressed as the Federal Maritime Commission moves forward with its recent proposed rule on detention and demurrage practices, said Richard Roche of Mohawk Global Logistics, at the National Customs Brokers & Forwarders Association of America’s government affairs conference Sept. 23 in Washington. Key among these are notices of availability for cargo and charges for customs holds, he said.
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The Federal Maritime Commission will accept comments on its proposed interpretative rule on detention and demurrage charges until Oct. 31, the agency said in a notice. The agency previously said comments are due Oct. 17 (see 1909130026).
The Federal Maritime Commission will look at multiple factors, including cargo accessibility and the transparency of involved terminology, when it considers whether detention or demurrage practices are reasonable, the agency said in a notice it posted ahead of publication in the Federal Register. The proposed interpretive rule is meant to help address issues with detention and demurrage charges and follows a multiyear effort on that front (see 1606130005). Comments are due Oct. 17, the FMC said in a news release.
The Federal Maritime Commission will likely publish next week a notice in the Federal Register seeking comment on an interpretive rule that is meant to help address issues with detention and demurrage charges, an FMC spokesman said. The agency announced on Sept. 6 that the FMC adopted recommendations from Commissioner Rebecca Dye, one of which includes publishing "an interpretive rule that clarifies how the Commission will assess the reasonableness of detention and demurrage practices." Interpretive rules differ from other regulations in that they don't require a notice and comment period, though the FMC has chosen to go through one, and aren't considered to have the force of law.
The Federal Maritime Commission will seek comments on a proposal to "prevent ocean carriers and marine terminals from imposing free-time (detention, demurrage, per diem) charges when the container cannot be picked up from, or returned to, the terminal through no fault of the shipper/trucker," the Agriculture Transportation Coalition said in a Sept. 6 email. The FMC didn't comment. The trade group said carriers have made such penalties "a major cost for importers and exporters and their truckers, often threatening to lock out truckers who don't immediately pay, and making shippers' protest/challenges extremely difficult."
Japan’s upcoming imperial succession will bring customs clearance to a halt, and the arrival of any cargo during the period should be avoided, according to a client alert from the Arpin International Group. The “Golden Week” will be held April 29-May 6, marking the abdication of Japanese Emperor Akihito and the accession to the throne of Crown Prince Naruhito. “Most public authorities, customs offices, harbor companies, and many general companies will be closed during this time,” Arpin said.