The Effect of Manifest Management System On Taxes Paid by Used Clothing Importers: A Case of Mombasa Port
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Date
2018
Authors
Njeule, Micah Amge
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
The Customs and Border Control Department (C&BC) of Kenya Revenue Authority (KRA) launched the Manifest Management System (MMS) in September 2011 to facilitated electronic lodgment of manifests and amendments and enhance Manifest processing, reconciliation and accounting for cargo. This study was pursued to evaluate the effect of the MMS on taxes paid for used clothing. This was a comparative study on the effect of MMS on taxes paid for used clothing. The study covered a ten-year period from 2007 to 2016; five years prior to use of MMS in manifest management (2007-2011) and five years following the launch and use of MMS in manifest management (2012-2016). The study evaluated the effect of the system on taxes paid for used clothing between the two periods: pre and post MMS. Descriptive research methodology was adopted in this study. The population of interest in the study entailed importations of cargo meant for discharge at the Port of Mombasa. Since the population of the study was wide, a case study scenario was adopted in which case the sample was limited to used clothing. Therefore, the study purposively targeted importations of used clothing meant for local consumption, discharged at the port of Mombasa covering the specified period. The study used secondary data sourced from C&BC‟s Statistics Section. These were in form of data from customs declarations of used clothing covering a ten year period from 2007 to 2016.A regression analysis model was used in the analysis procedure using IBM SPSS statistics 23. The study revealed a great positive variation on the means of total taxes paid of used clothing as a result of the switch of manifest management operations from SIMBA 2005 System to MMS. This was an indication that submission, validation and reconciliation of containerized cargo in MMS resulted in a great positive effect on the average of the taxes paid for used clothing. The significant difference showed that the average taxes for the period following the launch of MMS (1,222,642) was greater than that of the period prior to its use (816,750), an indication that its use positively influenced the taxes paid for used clothing. The study recommended the need for C&BC to leverage on technological advancement to improve and advance their operations and ensure that a holistic and integrated approach in cargo management is adopted.
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Keywords
Manifest Management, Mombasa Port