Second-hand car importers to Kenya will now use the RORO vessels to ship their vehicles. The Kenya Revenue Authority (KRA) introduced this policy in June 2016 to curb tax evasion, after playing a game of cat and mouse with vehicle importers for ages. Initially, car importers had a choice of either shipping their vehicles in containers or through RORO vessels. We even advised our clients to use shipping containers for their cars, in our guide for importing used cars to Kenya. Hold your horses right there, what is RORO, you must be wondering, and how does it affect my overall cost of importing a vehicle (used or otherwise)?
What is a RORO vessel?
The Kenya Ports Authority defines a RORO vessel, which stands for Roll on Roll Off, as “a vessel, which has certain cargo decks accessible only by means of a ramp that is lowered onto the quayside and over which cargo is driven on board or off the vessel by means of the ramp.”
In layman’s language, the vehicles will be driven or towed into the ship at the loading port – roll on. Once they arrive at the destination port in Mombasa, they will be driven or towed off the vessel – roll off. This way, every vehicle is accounted for.
Why the change from shipping containers to RORO vessels?
Initially, all importers (vehicle importers included), were allowed to ship their cargo in shipping containers. However, cunning car importers would misrepresent the details of their cargo to evade taxes. For example, they would cover the vehicles with items that attract very low taxes like children’s clothes and toys. The Kenya Ports Authority would verify the children’s clothes/toys. Thus, the cars would enter Kenya undetected and untaxed. Meanwhile, the taxman would lose millions of money.
With the new RORO policy, KRA will tax all vehicles without a fuss. So what does this mean to you in terms of cost?
Price comparison
It is time to crunch those numbers. One shipping container can load four vehicles, and the shipping charges for a container are £3,000. This means every vehicle is charged £750. This is the exact price charged by RORO vessels per vehicle. Therefore, there is no cost implication for vehicle importers.
What about shipping conditions?
One question nagging you right now is, “In what condition will I receive my car if the vessel is on an open deck?”
Well, worry not. These vessels are built to transport automotive like helicopters, tractors, boats as well as vehicles. Accordingly, they have storage facilities to shelter them from natural elements and the harsh ocean water.
The World Shipping Council explains this very well.
“Most liner ships are containerships, capable of moving thousands of truckloads of cargo on a single voyage. Additionally, roll-on/roll-off vessels, known as RoRo ships, (so named because you can literally drive on and off of them – much like a ferry), provide liner service to vehicles and certain machinery. RoRo and car carrier ships transport cars, trucks and other vehicles as well as agricultural and construction machinery.”
Dealing with your car dealer
If you buy a vehicle through a car dealer, it is prudent to ask him or her if the RORO vessel they intend to use has sheltered-storage facilities for your car, away from direct sunlight/rain and the ocean water. Although we have mentioned that RORO vessels have storage facilities for any type of automotive, not all are sheltered. This video shows a good example of a RORO ship transporting vehicles on an open deck.
Whether you use a RORO vessel or a shipping container, you still pay the same shipping charges. The only difference is that KRA gets to tax every vehicle imported to Kenya. However, you should ask your car dealer to use below deck or sheltered storage facilities to ship your vehicle. Otherwise, your vehicle may be exposed to the elements that may cause rusting – an indirect cost implication.