Abstract: The strong performance of exports is frequently regarded as a vital catalyst for economic growth. Effective domestic export compliance typically depends on the existence of competitive industries capable of producing goods and services that align with international standards and consumer demands. In order to cultivate a competitive sector, Kenya has implemented several duty relief programs aimed at supporting the sustainability of automobile companies. Therefore, this study investigated the effect of manufacturing under bond on customs duty compliance among automobile exporters on selected counties in Kenya. This research utilized an explanatory research design. The study population consisted of 48 assembling and manufacturing industries located in Nairobi City County, Kiambu County, Machakos County, and Nakuru County in Kenya. The target respondent group comprised 288 individuals, which corresponded to the number of questionnaires distributed. Out of these, 220 questionnaires were accurately completed and returned, yielding a response rate of 76%. A structured questionnaire was employed to gather primary data from finance managers and senior managers within the finance and accounts departments. Descriptive statistics, including mean and standard deviation, were utilized, while inferential statistics encompassed correlation and regression analyses. The results were illustrated using graphs and pie charts. The study revealed that manufacturing under bond had a positive and significant effect on customs duty compliance, with a coefficient of β= 0.457 and a p-value of less than 0.05. The study concludes that the rise in manufacturing under bond has led to a significant enhancement in customs duty compliance among automobile exporters, demonstrating the success of this strategy in fostering regulatory adherence within the automotive export sector. The research recommends that the Kenya Revenue Authority, along with the Government, should develop policies that promote manufacturing aimed at exportation.
Keywords: Manufacturing under Bond, Custom duty compliance.
Title: EFFECT OF MANUFACTURING UNDER BOND ON CUSTOMS DUTY COMPLIANCE AMONG AUTOMOBILE EXPORTERS ON SELECTED COUNTIES IN KENYA
Author: Karugo, Joseph Kamau, Dr. Bruce Ogaga
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
Vol. 12, Issue 3, July 2024 - September 2024
Page No: 222-230
Research Publish Journals
Website: www.researchpublish.com
Published Date: 20-August-2024
