THE CUSTOMS AND EXCISE (REMISSION) (AID PROJECTS) ORDER
1. This Order may be cited as the Customs and Excise (Remission) (Aid Projects) Order.
2. The whole of the import duty payable on materials and equipment, including vehicles, which the Commissioner is satisfied are for use in the construction, equipping or execution of an aid project to be, or in the process of being, carried out pursuant to an agreement between the Government and a foreign government, or a foreign or international agency, institution, foundation or organization, supplying or making available aid funds, materials or equipment (in this Order called the aid agency) is remitted subject to the conditions set out in paragraph 3.
3. The conditions referred to in paragraph 2 are that -
(a) the agreement expressly provides for remission of duty on the materials and equipment;
(b) (i) the agreement provides that the materials and equipment shall become the property of the Government, the University of Nairobi, Kenyatta University College, the Kenya Medical Research Institute, the Kenya Bureau of Standards or such other organization in Kenya as the Minister may, by notice in the Gazette, specify for the purposes of this Order; or
(ii) the materials and equipment belong to, and whilst in Kenya continue to belong to, the aid agency; or (
(iii) both of subparagraphs (i) and (ii) apply;
(c) on completion of the project the aid agency provides the Commissioner -
(i) in the case of a situation referred to in subparagraph (b) (ii), with a detailed list of items of equipment which have been used in the execution of the project and which, not forming part of the project itself, have become the property of the Government or other organization referred to in that subparagraph;
(ii) in the case of a situation referred to in subparagraph (b) (ii) with a detailed list of items of equipment which have been used in the execution of the project and which remain the property of the aid agency.
(f) remission of duty under paragraph 2 does not apply to fuels, oils and lubricants for use in vehicles and equipments, whether or not expended in the implementation of the project;
4. Duty shall become payable if goods which are the subject of this Order are used or disposed of in a manner inconsistent with the purpose for which the remission is granted.