Import Duty Financing
Import Duty Financing [IDF]
Sumac Import Duty Finance (IDF) is a financing solution for importers designed to help them have a seamless process during clearing and transportation of imported cargo from the port/airport of origin to the final destination. The solution targets importers of goods and services. It helps to facilitate KRA duty payment, clearing costs or any other logistical costs associated with clearance of imported goods
The facility is booked in the customer’s account and payments/disbursements done directly to the service provider e.g. KRA against Proforma invoices.
The Import Duty Finance Product is a Solution Meant to Facilitate MSME Importers to;
- Pay for import duty and other related costs promptly
- Pay for storage charges and demurrages if any
- Pay for clearing, forwarding and other logistics costs
- Facilitate transportation of goods from the port to the final destination.
- Enable the importer avoid high storage and demurrage charges at the port
- Enable the importer avoid auction of goods imported, due to non-payment of duty.
The product is tailored for the following groups:
- Importers of Motor Vehicles and Equipment
- Importers of Second Hand Items For Sale
- Importers of Other Goods
- Clearing and Logistics Firms
Up to 100% of value of invoice or quotation raised by third parties (KRA, Clearing agent, Freight Company, etc.).
Facility will revolve for 12 months upon which the applicant will be reviewed for renewal. One off applications allowed.
Limits To Be Funded:
Minimum amounts Kshs. 50,000/=
1] Customers in Import Business
- The customer must be in business more than six months and demonstrate having undertaken an import transaction previously
2] MSME Customers
- Importing for purposes of reselling, increasing efficiency, productivity or own use
No proof for a previous import transaction
Documents required for application:
- A Quotation for duty (duty entry form) and other related charges,
- Copy of Import documents: (Bill of lading/Airway Bill, Commercial Invoice, copy Inspection certificate by KEBS certified agent, IDF, etc.)
- For motor vehicles – Export Certificate (Japanese Logbook) & Inspection Certificate issued by QISJ or any other inspection company approved by KEBS.
All the other requirement as per the MSME lending terms-Strong Financials ,Good account conducts, Debt ratio-below 50% & all KYC & supporting documents