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DEFINITIONS

CUSTOM SECURITY BOND

It is a contract executed under seal whereby the party or parties entering into it bind
themselves to pay to some other person or body a specified sum of money, referred to
as the penalty to the bond, if any of the conditions of the bond are not satisfied. The
obligation in all security bonds is joint and several.

PRINCIPAL
The person who undertakes to fulfil the conditions of the bond and pay the penalty of
the bond if any of the conditions of the bond are not satisfied. They are normally the
importers or their agents.

SURETY/GUARANTORS
The person who undertakes to pay the bond if the principal fails to fulfil the
conditions of the bond. These are normally the insurance companies or banking
institutions.

CLASSIFICATION OF SECURITY BONDS

There are two types of security bonds, general security bonds and particular security
bonds.

GENERAL SECURITY BOND

This is a bond executed in accordance with EACCMA (2004). It is valid for a
period of three years and can be replenished. It is executed either as a Regional
Customs Transit Guarantee (RCTG) for COMESA or for a General Customs Security
Bond (GCSB) for sensitive goods and non-COMESA countries.

PARTICULAR SECURITY BOND

It is a single transaction bond and is valid for 12 months.

SECURITY BOND GUARANTEES

Security may be given to the satisfaction of the Commissioner either;-
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a) Cash guarantee ( by cash)
b) Bank guarantee (by bank)
c) Insurance guarantee (by Insurance)
d) Any other form of security that the Commissioner may allow (e.g. token
bond)

BANK GUARANTEE
This is a requirement for payment under dispute where the principal decides to
execute a bond (of the amount in dispute) instead of paying in cash. Its validity
depends on the use.

PROCEDURE FOR BONDS EXECUTION

SIMBA iCMS
APPLY FOR A BOND APPLY FOR A BOND
The Principal will apply for a bond in The Principal will apply for a bond in iCMS.
Kentrade. The Principal shall fill the In the case of Bank Guarantee, the Clearing
relevant form depending on the type of agent makes the application for the bond on
bond he/she wants to execute, and comply behalf of the principal.
with insurance or bank requirements.
KENTRADE CONFIRMATION REVIEW BOND APPLICATION
The agent shall lodge the bond with Bond registration officer reviews the bond
Bonds Management Unit for Kentrade
application after which the bond details are
Confirmation
submitted via Bonds Module in ICMS to the
KENSWITCH system. A copy of the Bond
form with details of the bond application is
sent via email to the Guarantor.
WITNSESING BOND FOR REVIEW AND PROCESS
APPROVAL GUARANTOR CONFIRMATION
The bonds shall then be referred to The Guarantor via the KENSWITCH system
either officer, supervisor, assistant
will approve or reject this application. The
manager, manager or chief manager
according to set limits for witnessing. iCMS will receive feedback via KENSWITCH
and proceed with internal recommendation
and approval processes where there is
approval from the guarantor.
APPROVE A BOND RECOMMEND BOND FOR
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The bonds shall then be referred to APPROVAL
either officer, supervisor, assistant Bond recommendation levels varies with the
manager, manager or chief manager Bond Value and is in the systems
according to set limits for approval. parameters as per KRA requirements.
REGISTERING AND NUMBERING APPROVE A BOND
After witnessing and approval the Bond approval levels also varies with the
bonds are then numbered and entered
bond value and is in the systems parameters
in the register.
as per KRA requirements.
EXECUTE A BOND EXECUTE A BOND
After review of all documents After review of all documents supporting the
supporting the approved application approved application and having obtained
and having obtained signed Bond signed Bond agreement from both
agreement from both Principal/Guarantor, the Bond is ready for
Principal/Guarantor, the Bond is ready execution and for use in iCMS.
for execution and for use in Simba
system.

DOCUMENTARY REQUIREMENTS/ATTACHMENTS (EXECUTION)

BOND BOND DESCRIPTION REQUIREMEN

CATEGORY CLASS
PART CB1 Security bond for perishable items or -copy of invoice
provisional release where perfection is done -authority letter
within 48 hrs -Valid for 48 hrs
-specimen form f

PART CBIA Security bond for provisional release of project -copy of letter of
goods where perfection be done within 90 -copy of invoice
days. -valid for 90 days
The principal must obtain exemption letters -specimen signa
from treasury within that period. guarantor
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-master list
GEN CB2 Security bond for movement of goods from one -Authority letter
port to another -old CB2 bond
The period is one month -specimen signa
guarantor
GEN CB3 Security bond for warehousing of goods the -specimen signa
transaction period is 14 days except for bulk guarantor
cargo which is 21 days
GEN CB4 Bond for re- export from warehouse/after -transaction peri
drawback. -specimen signa
The transaction period is 30 days guarantor
GEN CB5 Security bond for ship store. -copy of invoice
The period is one month -valid for 1 year
-specimen signa
guarantor
GEN CB6 Security bond for custody of goods in a licensed -general bond va
bonded warehouse -old CB6 bond
Transaction period is one year -supplementary b
-previous license
-specimen form f
GEN CB8 Security bond for transit goods. -specimen signa
Transit period is 30 days. guarantor
Application for bond cancellation - within 30 -approval letter i
days of exit of goods
Can be extended in special circumstances
GEN CB8A Regional Customs Transit Guarantee bond -specimen signa
(RCTG) guarantor
This is a COMESA regional customs transit
bond
Transaction period is 30 days
GEN CB9 Security bond for transhipment of goods -Authority letter
The transaction period is 21 days -specimen form f
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PART CB10 Security bond for temporary importation -authority letter
-valid for 1 year a
-specimen signa
guarantor
PART CB11 Security bond for licensed custom agents. -cover letter from
Transaction period is one year-the bond is tied -specimen signa
to license guarantor
GEN CB12 Security bond for conveyance of goods -transit license
It covers licensed vessels -general bond
-specimen signa
guarantor
-letter from licen
PART CB13 Security bond for raw material for manufacture -copy of approva
of goods for export and home use -specimen signa
Transaction period is 12 months and renewable guarantor
in special circumstance for other 6 months.
GEN CB14(CPZ Security bond for warehousing and removal of -Cover letter from
B) goods from EPZ and MUB. -specimen signa
Warehousing period is 14 days for EPZA goods. guarantor
PART CB16 Security bond for project goods. -exemption letter
Transaction period is subject to completion of -specimen signa
the project. guarantor
It perfects CB1A.
GEN CB18 Security bond for goods in port or licensed -authority letter
transit sheds -old CB18 bond
-general bond
-specimen signa
guarantor
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PART SECURITY Security bond for goods moving out of a -Letter of author
TO warehouse but will be returned after further -particular bond
CUSTOMS works or exhibition. -specimen signa
-STC Bond mainly covers assembled vehicles for guarantor
body building, conversions and exhibition
Transaction period is 30-120 days
Mainly covered under section 53 of EACCMA

PROCESS FOR
PROCESS FOR
CANCELLATION/RETIREMENT OF
CANCELLATION/RETIREMENT OF
iCMS BONDS
SIMBA BONDS

a) The principal/clearing agent lodges a) Log in as an “Authorised system

user”
the physical bond cancellation
b) On the left Navigation panel, Go To>
voucher (Form C26) attaching all
“Bonds Management” > ‘Search
the necessary supporting documents Bond’’
at Bonds Section, Times Tower (as c) Enter the “Bond ID” the click on
per the table below – Documentary
“Search” ;
attachments).
d) Next highlight the record then click on
b) The C26 form is received, numbered,
“Replenish Bond”
entered in the receiving
e) Next highlight the declaration
register/allocation form and date
f) and click on “Request
stamped by the receiving
Replenishment”
clerk/officer.
g) Next enter remarks in the resultant
c) The documents are then vetted by screen an click on “OK”
Bonds Cancellation Officer for h) The system will generate a To Do task
for the approving officer
compliance;
i) The bonds cancellation officer will
review the record details and “Approve
 If not compliant with the bonds
Replenishment” or “Reject
cancellation requirements, the Replenishment” giving the reason for
rejection.
officer rejects the documents
stating the reason for rejection on
the documents. The documents
are returned to the receiving
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officer/clerk who enters the
details in the rejection register
and issues them back to the
principals/agents.

 If compliant with the bonds

cancellation requirements, the
officer cancels the bond
transaction online in the Simba
system.

d) For cancelled particular and retired

general bonds, the documents
proceeds through the process of
typing of discharge letter to be issued
to the principal/clearing agent who
submits them to the guarantor for
discharge of their liability.
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DOCUMENTARY REQUIREMENTS/ATTACHMENTS
CANCELLATION OF SIMBA SYSTEM ENTRIES CANCELLATION OF iCMS SYST

Prior release - C402 Entry Security bond for perishable

 Provisional entry – C402 IM4 40402 Entry
 Perfecting entry – C400 or C490  Perfecting entry, CPC IM4 474
timelines:
 Copy of exempting document (Pro 1B, Treasury exempting
letter, etc.)  48 Hours (Section 36 (e) – bu
perishable goods).
 90 Days for provisional releas
 Copy of exempting document
etc.) must be attached on appl
 All packages must have been s
 Once replenishment is done, t
retirement online and then pr
for issuance of discharge letter
Prior release - C401 Entry Security bond for provisional re
 Provisional entry – C401 40401 Entry

 Perfecting entry – C490 or C493

 Perfecting entry, CPC IM4 474
 Treasury exempting letter  Copy of exempting document
etc.) must be attached on appl
 Original triplicate CB1A bond
 All packages must have been s
 Copy of CB16  Once replenishment is done, t
retirement online and then pr
for issuance of discharge letter
Project Goods - C493 Entry Security bond for project goods-
 Perfecting entry – C493
 Project completion letter from
 Provisional entry - C401  Export or payment of duties fo

 Original triplicate CB16 bond

 Copy CB1A

 Treasury exemption letter

 Completion letter from parent ministry

Transit Goods - T810 Entry Security bond for transit goods/

 Transit T810 entry 80800/801/810/820/830
 Striking entry T811 or T812 entry  Issuance of COE on TR8 8081
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 All packages must have been a
for those not exported)
Temporary Importation - C500/C510 Entry Security bond for tempor
 Temporary importation C500 or C510 entry 50500/50510
 Striking R3 entry  Issuance of COE on EX3 3736
 Authority letter for temporar
 Original triplicate CB10 Bond
application
 Temporary importation authorization letter
 All packages on IM5 50500/
(exported or duty paid for tho
Duty Remission Scheme (DRS) – C422/ C491/ C492/ Security bond for raw material
C494/ C496 Entry
export-Entry IM4 45492/45491/
 DRS C422/ C491/ C492/ C494/ C496 Entry
 DRS Audit Letter confirming a
 Original triplicate CB13 bond been accounted for

 DRS reconciliation/audit letter

Warehousing or EPZ – W7 or R3 Entries Security bond for the wareh

 Warehousing/EPZ - W7 or R3 entry warehoused goods - IM7 Entr
 Issuance of F7 which must be
 All packages must have been r
Bond for re- export from wa
EX3 30300
 Issuance of COE
 All packages must have been a
for those not exported)
Security bond for ship store-Ent
 Issuance of COE
 All packages must have been a
for those not exported)
Transhipment – M9 Entry Security bond for transhipment
 Transhipment M9 entry  Issuance of COE on IM9
 All packages must have been a
for those not exported)
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RETIREMENT OF SIMBA SYSTEM RETIREMENT OF iCMS SYSTEM

BONDS BONDS

Bond for Removal Coastwise – Bond for Removal Coastwise – CB2

CB2 Bond for Licensed Bonded
Bond for Licensed Bonded Warehouse - CB6
Warehouse - CB6 Bond for Licensed Clearing Agent -
Bond for Licensed Clearing Agent - CB11
CB11 Bond for Licensed Vessels - CB12
Bond for Licensed Vessels - CB12 Bond for Licensed Transit sheds -
Bond for Licensed Transit sheds - CB18
CB18
 Original Triplicate Bond (being
 Original Triplicate Bond (being retired)
retired)
 Copy of its replacement bond
 Copy of its replacement bond

Bond for Perishable items – CB1 Bond for Perishable items – CB1
Bond for Warehousing Import and Bond for Warehousing Import and
Removal – CB3 Removal – CB3
Bond for Re-export from Bond for Re-export from Warehouse
Warehouse – CB4 – CB4
Bond for Ship stores – CB5 Bond for Ship stores – CB5
Bond for Transit Goods – CB8 Bond for Transit Goods – CB8
COMESA RCTG Bond – CB8A COMESA RCTG Bond – CB8A
Bond for Transhipment goods – Bond for Transhipment goods – CB9
CB9 Bond for Temporary Importation –
Bond for Temporary Importation CB10
– CB10 Bond for Warehousing and Removal
Bond for Warehousing and from EPZ – CPZB
Removal from EPZ – CPZB
 Original Triplicate Bond (being
 Original Triplicate Bond (being retired)
retired)
 All bond transactions are cancelled
 All bond transactions are
cancelled
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