War on counterfeit products continue

The war on illicit trade went a notch higher after the government suspended two pre-shipment verification bodies contracted by Kenya Bureau of Standards (Kebs) for failing to ensure imported goods conform to Kenyan standards.

Importers have been warned against contracting the services of China Certification and Inspection Group Company operating in Zone 2-China Mainland, and Société Générale Surveillance working in Zone 4 which covers Indonesia, Malaysia, Thailand and Vietnam.

Trade and Industrialisation Cabinet Secretary Peter Munya said Pre-Export Verification of Conformity (PVOC) registered products in the affected areas will now be done through other agents.

China Certification and Inspection Group Company has a local representative, Ms Stacy Njeri Wahome, while Société Générale Surveillance is represented locally by Mr Isaac Kwoba. The companies failed in inspection, sampling, testing, sealing of full-load containers and issuance of certificates of conformity (CoC), which the Kenya Revenue Authority (KRA) uses as a reference document for cargo clearance.

They will only be allowed to resume operations after they effect corrective measures.

Issuance of a CoC for non-conforming products is supposed to attract a penalty equivalent to 10 times the verification fees charged or chargeable by the contractor for the consignment in which the product was shipped.

“The regulator has tight contracts with the firms which allows it to terminate the contracts and force them to pay hefty penalties. In these two specific cases, the fines will be monumental, running into millions of shillings. The government will also explore criminal sanctions against these agents,” Mr Munya told a press briefing Wednesday.

Kebs has lately faced criticism amid accusations of cheap and low quality products being imported through collusion between unscrupulous traders and government officials, among them pre-shipment tax inspectors, tax officials and quality inspectors at the port of Mombasa. This has turned the country into a dumping ground for fakes, factory rejects and expired goods.

Last month, President Uhuru Kenyatta set on fire goods seized for tax evasion and failing to meet set standards, included rice, sugar, medical equipment, vehicles and building materials all valued at Sh1.5 billion. An inter-agency crack team led by Deputy Head of Public Service Wanyama Musiambo seized the items.

CS Munya Wednesday said performance monitoring of all other agents will continue and further actions will be announced based on the results.

“The government has been reviewing the performance of these companies that fail to perform their duties as required. In the past, agents have issued certificates of conformity (COC) for goods that did not meet the requirements of the standards,” he said.

Some of the sub-standard goods that have found their way into the country include rice, cooking fat, bicycle and truck tyres, children and adult diapers, shoes, sanitary pads, and alcohol.

Others are stationery, detergents, textiles, electronics, spare parts and foodstuff.

Ordinarily, goods that have failed Kebs test are not released into the market are usually destroyed and some of them are shipped back.

The penalties due from the two companies amounts to Sh87 million.

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