Kenya: Apple concentrate for cider subject to 10% duty rate (court decision)
The taxpayer’s position was based on the fact that the apple concentrate was a raw material.
The taxpayer’s position was based on the fact that apple concentrate was a raw material.
The High Court of Kenya held that apple concentrate (an ingredient used for manufacturing cider, an alcoholic beverage) was classifiable under Chapter 21 (edible preparations), specifically under HS code 2106.90.20, and thus subject to a duty rate of 10%.
The court agreed with the position of the taxpayer and rejected the position of the commissioner of customs that the concentrate was classifiable under Chapter 22 (beverages, spirits, and vinegar), specifically under HS Code 2206.00.90, subject to a duty rate of 25%.
The taxpayer’s position was based on the fact that the apple concentrate was a raw material, while the commissioner’s position was based on the fact that a sample of the concentrate was found to have alcoholic strength by volume of 14.06%.
KPMG observation
The High Court decision provides clarity on the interpretation of the “intended use of a product” under the Common External Tariff (CET).
Read a December 2022 report prepared by the KPMG member firm in Kenya
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