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Capacity building workshop on mainstreaming the Democratic Republic of Congo into the EAC Customs Union underway in Kampala, Uganda

East African Community Headquarters, Arusha, Tanzania, 20th March, 2024: The East African Community (EAC) capacity building workshop on mainstreaming the Democratic Republic of Congo (DRC) into the EAC Customs Union is currently underway in Kampala, Uganda.

The five-day workshop from 18th -22nd March, 2024 facilitated by the Trade Mark Africa under funding of the USAID- ERRA program is being attended by Senior Officials from the Ministry of Trade, Ministry EAC affairs, Ministry of Agriculture, Bureau of Standards, Immigration and Customs Administrations

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EAC to digitalize the Common External Tariff (CET) to enhance private sector participation in international trade

East African Community Headquarters, Arusha, Tanzania, 17th April, 2023: The East African Community (EAC) Secretariat with support from the World Customs Organization (WCO) under the European Union funded HS Africa Program, has commenced the process of digitalization of its Common External Tariff (CET). The digitalization efforts are aimed at enhancing the participation and access to trade information of the private sector in international trade.

The platform, which is currently under development in partnership with Global Trade Solution (GTS), will enable seamless migration of the EAC CET during transposition of Harmonized System (HS); administration and management of the Duty Remission Scheme (including application, assessment, approval and gazettement); production of information and publication of other measures affecting implementation of CET.

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Kenya’s Permanent Secretary for EAC, Dr. Kevit Desai (second left) with EAC Secretariat officials (from left) Mr. Donald Tindamanyire, Mr. Geoffrey Osoro and Mr. Anthony Minja.

EAC Partner States meet minimum requirements for Category A Trading under AfCFTA

East African Community Headquarters, Arusha, Tanzania, 19th February, 2022: East African Community Partner States have adopted the EAC Tariff Offer for Category A products amounting to 90.2 per cent (5,129 tariff lines out of the total 5,688 lines) to be liberalised in 10 years after the start of trading under the African Continental Free Trade Area (AfCFTA).

The EAC is now among the State Parties that have met the minimum requirements for Category A to start trading on a provisional basis under AfCFTA. The EAC is negotiating the AfCFTA as a bloc. 

An EAC Extra-Ordinary Meeting of the Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) held on Friday further directed the EAC Secretariat to submit the EAC Tariff Offer for Category A to the AfCFTA as soon as possible. 

The Extra-Ordinary SCTIFI also directed the EAC Secretariat to convene an Experts meeting by 15th April, 2022 to consider categories B and C of the EAC Tariff Offer.  

The EAC Partner States tariff offers will now be subjected to verification by the AfCFTA Secretariat, which is based in Accra, Ghana.

The AfCFTA has so far verified 29 tariff offers to ensure that they meet the modalities and this will increase to 34 once the EAC Partner States offers are verified. 

Verification of the tariff offers will ensure that AfCFTA Member States that meet the minimum requirements start trading under the Continental Free Trade Area Agreement. 

Speaking at a media briefing, Kenya’s PS for EAC, Dr. Kevit Desai who also chaired the Extra-Ordinary SCTIFI meeting, said that AfCFTA would give Partner States access to an extended market of more than 900 million people.

Dr. Desai said that the Community would also benefit from increased opportunities for trade, employment creation, industrialisation and economic prosperity.  

“The expanded opportunities include manufactured products, value addition, regional value chains, agro-processing, motor vehicle assembly, pharmaceuticals, auto spares industries and mineral processing among other areas,” said Dr. Desai.

On the determination of the maximum rate for the Common External Tariff (CET), the SCTIFI directed Partner States to consult on the analysis undertaken by the Secretariat on the proposed maximum CET rates and submit comments on the analysis and the proposed maximum CET rates of 30%, 33% and 35% to the Secretariat by 15th March, 2022.

The Ministers directed the Secretariat to convene an Extra-Ordinary SCTIFI meeting on 18th March, 2022 to deliberate on the maximum CET rate.  

Dr. Desai told the media that it had been agreed that Partner States consult key stakeholders on the proposed maximum CET rates and submit comments to the Secretariat by 15th March, 2022. 

The EAC Secretariat made a presentation to the SCTIFI on the analysis it had undertaken on the proposed rates of 30%, 33% and 35% for products classified under the 4th band. 

The Secretariat said that indicators of measure of benefit for products identified to be covered in the maximum tariff band are positive except for welfare loss, which is transitory. 

The proposed various maximum CET rates will have diverse macroeconomic impacts. On the implications for revenue, the average potential short-term impact on EAC Partner States total tax revenues increases by 3.9 % (scenario 1 – 30%), 4.9% `(scenario 2 – 33%) and 5.5% (scenario 3 – 35%). 

On employment, employment generation increases marginally with 0.02 % (5,055 persons) under the maximum rate of 30%; 0.03% (6,089 persons) with a maximum rate of 33% applied; and 0.03% (6,781 persons) increase in average EAC formal employment under the maximum rate of 35%.

On the implications for trade, potential trade diversion into the EAC (intra-EAC trade) increases by $13.03 million under the 30% maximum rate, $16.51 million with a maximum rate of 33% and 18.9 with the highest rate of 35%. 

On industrial development, industrial production increases under each of the proposed maximum CET rates of 30%, 33% and 35%, with the highest rate of 35% conferring the greatest gains in industrial output. There is a 0.02% ($7.7 million) increase in industrial output with an applied maximum rate of 30%; 0.03% ($10.3 million) increase in production with a rate of 33%; and 0.04% ($12.1 million) increase in output with the highest rate at 35%. 

For more information, please contact:

Simon Peter Owaka
Senior Public Relations Officer
Corporate Communications and Public Affairs Department
EAC Secretariat
Arusha, Tanzania
Tel: +255 768 552087
Email: sowaka [at] eachq.org

About the East African Community Secretariat:

The East African Community (EAC) is a regional intergovernmental organisation of six Partner States, comprising Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda, with its headquarters in Arusha, Tanzania.

The EAC Secretariat is ISO 9001: 2015 Certified

Mr. Ajit Kumar, Chairman of the Central Board of Indirect Taxes and Customs of India signing the Joint Action Plan.

EAC inks Joint Action Plan with India in readiness for Mutal Recognition Agreement to facilitate faster clearance times for Accredited Traders

East African Community Headquarters, Arusha, Tanzania, 13th August, 2021: Traders from the East African Community (EAC) stand to benefit from faster clearance of their goods and lower costs of running their business following the signing of a Joint Action Plan between the EAC and the Government of India.

The Joint Action Plan will pave the way for a full Mutual Recognition Agreement (MRA) between the two parties.

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All set for 48th East African Revenue Authorities Commissioners General Assembly

East African Community, Arusha, Tanzania: November 9th, 2020: The 48th East African Revenue Authorities Commissioners General’s (EARACGs) meeting to discuss experiences and address challenges facing tax administrations in the region will be held virtually on 11th November, 2020.

The meeting themed Rethink, Restart and Reinvent: Our Road to Recovery”, will concentrate on lessons learnt by the EAC Partner States during the COVID-19 pandemic, and the innovative approaches that will shore up revenue in the region.

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REPORT OF THE EAC HIGH LEVEL CONFERENCE ON TRADE INTEGRATION


REPORT OF THE EAC HIGH LEVEL CONFERENCE ON TRADE INTEGRATION
HELD AT THE RADISSON BLU HOTEL, NAIROBI
FROM THE 25TH TO 27TH SEPTEMBER, 2019

a) Introduction

1. The conference was held to commemorate 20 years of the East African Community and 15 years of the East African Customs Union. The overarching goal of the conference was to have an open, honest and critical self-examination as a region, with regard to what has been achieved, what has worked and what needs to be done to move the regional integration forward as well as improving the EAC trade policy and other instruments. The outputs of the conference are key to making EAC an attractive investment bloc, boost industrialization, infrastructure development as well as embracing emerging technologies for economic development. The future of the EAC can only be assured if there is continued support by all Partner States, both at policy formulation and implementation levels.

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EAC High Level Trade Integration Conference kicks off in Nairobi

East African Community Secretariat, 26th September, 2019: Nairobi:  The East African Community High Level Trade Integration Conference themed “Enhancing Trade Integration in the East African Community” kicked off Wednesday at the Radisson Blu Hotel in Nairobi, Kenya.

Addressing the participants, Kenya’s Cabinet Secretary for EAC and Regional Development, Mr. Adan Mohamed, said the region had made tremendous progress in the realm of trade facilitation including the transformation of Customs processes, the introduction of technology in driving regional business, re-orienting border operations under the coordinated border management concept, and re-engineering immigration procedures.

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The Executive Director of the East African Business Council, Hon Peter Mathuki (left), at the media briefing. With him are Kenya's EAC Principal Secretary Dr. Margret Mwakima and Mr. Kenneth Bagamuhunda, the Director General, Customs and Trade at the EAC Secretariat.

All set for High Level Trade Integration Conference in Nairobi

East African Community Secretariat, 24th September, 2019: Nairobi: All is set for the High Level Trade Integration Conference that is due to take place from 25th to 27th September, 2019 at the Radisson Blu Hotel in Nairobi, Kenya.

Secretary in the Ministry of EAC and Regional Development, Dr. Margret Mwakima disclosed that the conference it was anticipated that the Conference would be attended by more than 300 key players from the East African region, International and Regional Economic Communities, exhibitors, stakeholders and Government officials.

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8th African Union - Regional Economic Communities Sub-Committee Meeting underway in Arusha

East African Community Headquarters, Arusha, Tanzania, 20th February, 2019: The sub-committee  meeting on Customs Cooperation organized by  African Union Commission(AUC) together with Regional Economic Communities(RECs) is underway at the Gold Crest Hotel in Arusha, Tanzania.

The main objective of the sub-committee meeting is to exchange ideas on various Trade Facilitation  activities being, undertaken by respective  RECs, as well as to ensure the proper coordination of projects, programmes and activities between the Customs Departments  of the RECs and the Customs Cooperation Division of the Commission.

The three-day meeting will also  provide updates with regards to the adoption of the AU Wide Trade Facilitation Strategy by the relevant Policy Organs of the AU. Furthermore, meeting will identify areas of cooperation, the form of cooperation and where possible, consider undertaking joint activities.

Speaking during the official opening session Director of Trade at the EAC Secretariat, Alhaj Rashid Kibowa said the sub-committee meeting on Customs Cooperation is an opportunity for AUC and RECs to strengthening cooperation on matters regarding Customs.

He urged the participants to discuss in details matters of  cooperation in Customs and come up with the way forward so as to enable proper coordination among the  RECs to avoid duplication and mainly to put in good use the limited resources available.

Notes to Editor

The 8th AUC/RECs Sub Committee Meeting on Customs Cooperation meeting is organized following  recommendations of the 7th AUC-RECs sub -committee held in Casablanca, Morocco in April 2018 in order to promote Trade Facilitation on the Continent. 

During the 7th Meeting, the RECs presented  and shared respective areas of interventions. The 7th Meeting also considered the Draft African Union Trade Facilitation Strategy, which was subsequently presented for considering  by AUSCDGCs during their 10th Ordinary Session held in Moron,Comos in September 2018.

-ENDS-

For more information, please contact:

Mr Owora Richard Othieno
Head, Corporate Communications and Public Affairs Department
EAC Secretariat
Arusha, Tanzania
Tel: +255 784 835021
Email: OOthieno [at] eachq.org

About the East African Community Secretariat:

The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania. 

The EAC Secretariat is ISO 9001:2008 Certified

EAC operationalizes 13 One Stop Border Posts

East African Community Headquarters, Arusha, Tanzania, 2nd November, 2018The East African Community has fully operationalized and trained personnel at 13 One Stop Border Posts (OSBPs) that are aimed at the facilitating trade and free movement of goods in the region. 

The operationalization and training of personnel at the OSBPs has significantly reduced the time taken by travellers and trucks at the borders from days to about 1.5 minutes to 30 minutes on average respectively. 

The EAC with the support of TradeMark East Africa (TMEA) is finalizing the completion of the Malaba OSBP on the Kenya-Uganda border at a cost of US$7.5 million.

The Commissioner General of the Kenya Revenue Authority, Mr. John Njiraini, who briefed the media on behalf of his colleagues after a two-day meeting of the EAC Committee on Customs at the EAC Headquarters in Arusha, further said that TMEA was supporting the construction of OSBPs at Elegu/Nimule (Uganda/South Sudan Border), Tunduma’Nakonde (Tanzania/Zambia) and Moyale (Kenya/Ethiopia).

“We recognize that trade is global. Therefore, as much as we smoothen the flow of trade within the EAC, we intend to ensure the flow out and into EAC bourndaries with neighbouring countries is smoothened,” said Mr. Njiraini, who was flanked by among others Commissioner General Charles Kichere (Tanzania Revenue Authority) and Dickson Kateshumbwa (Acting Commissioner General, Uganda Revenue Authority), and Mr. Kenneth Bagamuhunda, the Director General, Customs and Trade at the EAC Secretariat.

The meeting drew participation from Commissioners General and Commissioners of Customs in the EAC Partner States.

Mr. Njiraini disclosed that in order to resolve the problem of lack of information to business, Trade Information Portals (TIPs) had been installed in Kenya, Rwanda and Uganda. 

“Tanzania is in the process of establishing the trade portal. The TIPs will also be installed at a later stage in Burundi and South Sudan. The link of the EAC Trade Portal is http://tradehelpdeask.eac.int,“ said the KRA Commissioner General.

“We urge businesspoeple to start using these tools and propose how procedures can be simplified. It will be developed as a regional trade facilitation index given its ability to facilitate decision making and implementation of trade reforms,” he said.

The tax chiefs noted that the Single Customs Territory (SCT) had registered remarkable benefits since its implementation in July 2014.

“So far, all imports are cleared under the Single Customs Territory Framework and clearance time has significantly reduced for both ports and Customs. Currenlty, the region is piloting undertaking exports under the Single Customs Territory,” they said.

The rollout of the export regime under SCT commenced on 20th July, 2018 on a pilot basis. The pilot run involves clearance of selected export goods through the Northern Corridor and the Port of Mombasa. As at 22nd October, 2018, the Uganda Revenue Authority, Rwanda Revenue Authority, Kenya Revenue Authority and Kenya Ports Authority were already involved in implementing the SCT exports pilot.

On Non-Tariff Barriers (NTBs), the Commissioners General and Commissioners of Customs said that they were working closely to streamline the process of conducting trade in the region.

The Commissioners revealed that they were in the process of review the EAC Customs Management Act (EACCMA 2014) which has been in force since the commencement of the EAC in 2000.

“So far, the Partner States have submitted draft proposals which were considered in a meeting held on 31stJuly to 4thAugust, 2018. A lot of progress has been made through further inputs into the Partner States proposals as well as identification of new areas that require information of new regulations i.e. deployment of staff under the SCT, guidelines on the customs valuation of used items, additional export promotion schemes, and compliant trader programme,” they said.

 

-ENDS-

For more information, please contact:

Mr Owora Richard Othieno
Head, Corporate Communications and Public Affairs Department
EAC Secretariat
Arusha, Tanzania
Tel: +255 784 835021
Email: OOthieno [at] eachq.org

About the East African Community Secretariat:

The East African Community (EAC) is a regional intergovernmental organisation of five Partner States, comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, with its headquarters in Arusha, Tanzania. 

The EAC Secretariat is ISO 9001:2008 Certified

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East African Community
EAC Close
Afrika Mashariki Road
P.O. Box 1096
Arusha
United Republic of Tanzania

Tel: +255 (0)27 216 2100
Fax: +255 (0)27 216 2190
Email: eac@eachq.org  |  sgoffice@eachq.org