•• Independently verify quality, quantity, and tariff classification and provide price information for 10% of the shipments with FOB values over USD 5,000 inspected by the PSI companies. A computerized algorithm randomly selects the shipments to be verified, although in some cases, after consultation with the government, specific shipments are targeted based on historic deficiencies, classified by origin and type of merchandise. The verified shipments come from a daily list of pre-shipment inspections performed by the PSI companies. The selection process was kept confidential from the PSI company, the exporter and the importer until the verification was completed in order to ensure transparency.
•• Independently research the price at the point of purchase of the goods for the purpose of verifying the declared transaction value.
•• Perform the physical inspection and sampling of the selected shipments at the port of arrival in Kenya. At this time, ICS performs any assaying that may be required.
•• Establish the likely CIF value of the merchandise based on independently obtained freight and insurance information, PSI data, and other documentation. At this point, ICS calculated the duties and any other taxes owed on the assessed CIF price of the imported merchandise.
•• In addition to auditing 10% of the total imports, ICS also verified 10% of all imports with declared transaction values between US$1,000 and US$5,000 (FOB). This activity included (i) the inspection of goods at the destination port to verify quantity, quality, and classification, and (ii) price information of those goods at the place of sale.
•• Provided online data capture facilities at three locations in Kenya, and ex-post data capture at the same locations for other clearance points.
•• Reconcile the PSI companies’ invoices submitted to the Government, using the inspection and invoice databases in conjunction with the applicable exchange rates. ICS presented a verification report for each company at the completion of the reconciliation each month.
•• Carry out the analysis of all available information, past and present, and databases to identify any deficiencies in the PSI system, and advise the government on strategies to correct those deficiencies and avoid them in the future.
•• At the request of the government, undertake other related verifications/reviews of the PSI program in Kenya, or at any other required location, to complete the requested work.
•• Through the above stated methodology, enlarge ICS’ existing database, focusing on imports into Kenya to identify under- and overvaluation of items imported into the country.
•• Prepare a monthly report to inform the GOK of the findings. In the case of discrepancies, ICS assessed the losses to the government caused by the faulty performance of the PSI companies, and computed any penalties for which they may have been liable according to their contract
•• Provided technical assistance to the client by conducting a two-week training course each year of the contract for computerized analysis, reconciliation, and reporting.
