1.0 WHAT IS THE LEGAL BASIS FOR A GENERAL REFUND.

General refund is governed by the East African Community Customs Management Act
under section 143 and 144. General refund also includes Section 57(3) which refers to the
storage charges for the Bonded Warehouses for auctioned goods that were under their
custody and also the proceeds accruing to the owner after the sale.

EAST AFRICAN COMMUNITY CUSTOMS MANAGEMENT ACT.

Section 143 refers;

(1) Subject to section 144 and to such conditions as the Commissioner may impose,
where it is shown to the satisfaction of the Commissioner-
(a) That goods were imported in pursuance of a contract of sale and that the description,
quality, state or condition of the goods was not in accordance with the contract or
that the goods were damaged before the goods were delivered out to Customs
control; and
(b) That the importer with the consent of the seller has either-
(i) Returned the goods unused to the seller and for that purpose complied with
the provisions of section 75 as to enter in the like manner as if they had
been goods to which that section applies; or
(ii) Destroyed the goods unused, the Commissioner shall refund any Customs
duty paid on the importation of the goods.

(2) Repayment of duty shall not be granted under subsection (1) unless the person
claiming the repayment presents a claim within a period of twelve months from the
date of the payment of the duty.
Section 144
(1) Subject to any regulations, the Commissioner may grant a refund-
(a) Of any import duty, or part thereof which has been paid in respect of goods which have
been damaged or destroyed while subject to Customs control;
(b) Of any import or export duty which has been paid in error.

(2) Refund of import or export duty or part thereof, shall not be granted under subsection (1)
unless the person claiming such refund presents such claim within a period of twelve
months from the date of the payment of the duty.

(3) The Commissioner shall refund any import duty paid on goods in respect of which an order
remitting such duty has been made under this Act.

Section 57(3)
(3) Where any goods are sold under the provisions of this section, the proceeds of such sale
shall be applied in the order set out below in the discharge of-
(a) The duties
(b) The expenses of the sale
(c) Any rent and charges due to the Customs or to the warehouse keeper;
(d) The port charges; and
(e) The freight and any other charges.

(4) Where, after proceeds of the sale have been applied in accordance with subsection (3), there
is any balance, then such balance shall, if the owner of the goods makes application within
one year from the date of the sale, be paid to such owner, or, in any other case, be paid into
the Customs revenue.

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