| Complaint number |
NTB Type
|
Date of incident |
Location |
Reporting country or region (additional) |
Status |
Actions |
|
NTB-001-189 |
1.8. Import bans |
2024-09-17 |
Malawi: Ministry of Trade & Industry |
Kenya |
In process |
View |
|
Complaint:
|
Malawi Ministry of Trade & Industry has introduced a new regulation for imports of sweets. Our customer applied for Import Permit 3 times and each time it was rejected. Our customer has tried every possible way however he has not managed. Malawi authorities are not giving the reason in writing. They have informed our customer verbaaly that because of the shortage of forex in Malawi, their superiors have informed them that they are not to issue the Import Permit for sweets. Also, there is a local manufacturer already making sweets so there is no reason to import.
This action has raised great concerns, as it contravenes the trade agreements under the Common Market for Eastern and Southern Africa (COMESA), to which both Kenya and Malawi are signatories.
We kindly request this issue be addressed promptly. |
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Progress:
|
1. On 17 September 2024, Kenya reported that Malawi has introduced a measure that requires Kenya importers to Malawi should apply for a permit. Kenya was ready to comply with the new measure however her application has been rejected three times without any explanation.
2. On 25 September 2024, Malawi uploaded the measure which contains a list of products are are affected by the measure. and advised that since the regulation came into effect, the Ministry of Trade had issued several import licenses of Sweets to importers who applied and met all the necessary requirements. In this case, Malawi requested that Kenya importers apply for the licenses and follow all the necessary requirements. Malawi Focal Point clarified that the new regulation is not only for Sweets, but other products as well that are subject to import and export licensing.
3. On 20 October 2024, Kenya responded that their records showed that Malawi had not issued licences for applications applied since August 2024 when the new notice was issued. Kenya exporters and their clients in Malawi had applied and followed all necessary requirements and the applications were shared in August 2024 however, Malawi had not issued a licence as at October 2024. Kenya therefore requested Malawi to facilitate the issuance of the license to facilitate trade as the specific Kenya manufactured sweets for Malawi orders are stranded for the much-awaited licence. |
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NTB-001-184 |
8.8. Issues related to transit |
2024-08-09 |
Zimbabwe: Forbes |
Zambia |
New |
View |
|
Complaint:
|
On 10 August 2024, Zimbabwe imposed a requirement enforcing payment of duty on fuel in transit at the Port of Entry at all border posts ‘in order to secure duty and levies on fuel imported under Removal in Transit Facility’. Such duty and levies shall be recovered on acquittal at the Port of Exit. Zimbabwe Revenue Authority (ZIMRA) advised that the payment of duty for fuel in transit was to mitigate against transit fraud. With effect from 10 August 2024 all fuel, petrol, diesel, paraffin and jet A1, in transit imported through ports of entry by road is now required to pay duty and levies on entry. The duty and levies will be refunded at the port of exit upon compliance with all the transit procedures, including submission of proof that the fuel has been exported. Consignee’s and/or their representatives should approach ZIMRA at the port of entry to initiate the fuel clearance and payment process. For the refund process, once the fuel has been exported, they should approach ZIMRA at the port of exit to initiate the requisite refund process.
This requirement increases cost of transport. The refund procedures are not clear, and the risk of delayed refunds is very high negatively affecting cashflows for transporters. Also this requirement is treating compliant and non-compliant transporters without distinction and is penalizing the transporters who have been compliant to the Electronic Cargo Tracking System (ECTS) where the alleged abuse has been detected.
We therefore request The Minister to urgently reconsider improving this measure to facilitate movement of fuel at reasonable costs. |
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|
NTB-001-180 |
1.15. Other |
2024-06-17 |
South Africa: Maseru Bridge |
Lesotho |
New |
View |
|
Complaint:
|
MG Health Ltd cultivates and manufactures cannabis products for the European market. We started exporting Cannabis and transiting via Maseru Bridge since September 2020. On the 17 July 2024, after getting all export documents and submitting them to SARS on the South African side we were informed that Cannabis cannot be exported via Maseru Bridge as it not amongst designated ports according to South African law. MG Health's truck was then returned to Lesotho.
MG health initiated Meetings thereafter and the response that MG Health received was that this practice that MG Health and others who are in the same industry are accustomed to was a measure adopted during COVID-19 restrictions. It was explained to SARS that Lesotho is landlocked as a result the consignment will have to be flown out to get to OR Tambo. Secondly, given the quantities that are exported, using available flights will require multiple flights for just one consignment thus making the export process difficult and expensive. SARS response was that Medical Cannabis must be exported using designated ports irrespective of whether it is in transit or it is being exported to SA as the SA law is very clear on this matter and MG Health cannot make reference to Article 16 SACU Agreement. |
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Products:
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5302.90: True hemp "Cannabis sativa L.", processed but not spun; tow and waste of hemp, incl. yarn waste and garnetted stock (excl. retted hemp) |
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NTB-001-179 |
8.8. Issues related to transit |
2024-05-01 |
Uganda: Government officials |
Tanzania |
In process |
View |
|
Complaint:
|
Mpondwe Border Government Officials forcefully offload transit cargo for Tanzania traders.
In May 2024, Government Officials from the Republic of Uganda intercepted processed salted fish from Tanzania in transit to the Democratic Republic of Congo at the Mpondwe Border and were forced to break the seal of the cargo and sell the fish at the Mpondwe market. This is against Trade Facilitation Laws on how to treat Goods in Transit and led to great loss to Tanzanian traders in terms of capital and market. |
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Progress:
|
The RMC of 17th October 2024, noted that this act is against Trade Facilitation Laws on goods in Transit and urged the Republic of Uganda to respect the free movement of transit cargo and allow transit fish from RSS, Kenya and Tanzania to transit freely to DRC. Transit goods should not be subjected to TBT regulations under the WTO Agreement of Trade Facilitation and EAC Instruments.
The Republic of Uganda committed to follow up with relevant institutions to allow transit trucks carrying fish to go through Ugandan territory without any restrictions or interceptions in the Uganda territory. |
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NTB-001-178 |
8.8. Issues related to transit |
2024-05-13 |
Uganda: kasindi |
Democratic Republic of the Congo |
In process |
View |
|
Complaint:
|
On May 13, 2024 the vehicles of certain economic operators transporting salted fish from South Sudan, Kenya and Tanzania in transit through Uganda destined for the DRC are blocked in Uganda. The reason given by the protection unit was that these vehicles transported small fish whose marketing was formally prohibited in Uganda |
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Progress:
|
The RMC of 17th October 2024, noted that this act is against Trade Facilitation Laws on goods in Transit and urged the Republic of Uganda to respect the free movement of transit cargo and allow transit fish from RSS, Kenya and Tanzania to transit freely to DRC. Transit goods should not be subjected to TBT regulations under the WTO Agreement of Trade Facilitation and EAC Instruments.
The Republic of Uganda committed to follow up with relevant institutions to allow transit trucks carrying fish to go through Ugandan territory without any restrictions or interceptions in the Uganda territory. |
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NTB-001-169 |
7.2. Discrimination |
2024-01-01 |
Burundi: Rugerero |
Tanzania |
In process |
View |
|
Complaint:
|
Republic of Burundi is charging USD 152 Flat rate on Road user Charges from Kobero/Kabangato Bujumbura which is equivalent to USD 65.5 per 100KM, While Tanzania is charging USD 10 per 100KM. This discriminatory charge is contrary to directives made on the 18th Meeting of Sector Council on Transport,Communication and Meteorology |
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NTB-001-168 |
3. Technical barriers to trade (TBT)
B11: Prohibition for TBT reasons |
2024-05-14 |
South Africa: Maseru Bridge |
Lesotho |
New |
View |
|
Complaint:
|
We have been told by Port Health via SAHPRA that as per regulations 6 & 7 of the Medicines Control Act of 1965, we are no longer allowed to transport medications to our customers in Eswatini by road In- transit through South Africa. This is despite the fact that we have done so since May of 1990 up 13 May 2024. We have 2 order ready, packed and waiting to be supplied, but we are being prevented from making declarations to deliver to our customers.
This summary decision to prevent Trade with Eswatini is totally unacceptable. We ask for your help to resolve this issue urgently! |
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Products:
|
3003.10: Medicaments containing penicillins or derivatives thereof with a penicillanic acid structure, or streptomycins or derivatives thereof, not in measured doses or put up for retail sale, 3003.20: Medicaments containing antibiotics, not in measured doses or put up for retail sale (excl. medicaments containing penicillins or derivatives thereof with a penicillanic acid structure, or streptomycins or derivatives thereof) and 3003.31: Medicaments containing insulin, not in measured doses or put up for retail sale |
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NTB-001-167 |
5.5. Import licensing requirements |
2024-05-16 |
South Africa: All border crossings by road, air or sea |
Namibia |
New |
View |
|
Complaint:
|
Nakara (pty) , a Namibian company formally requests a dispensation from the South African Veterinary (SA VET) import permit required for imports of Namibian finished leather. Nakara (pty) Ltd, a Namibian tannery, has maintained an unblemished record and has never been implicated in any wrongdoing in the past. However, due to the current regulatory framework, we find ourselves inadvertently impacted by the necessity of the SA VET import permit on Namibian leather exports. It is important to note that no other country imposes such a requirement on imports of finished leather into South Africa. South Africa is Nakara's biggest export market and the aforementioned unnecessary NTB puts Nakara into a competitive disadvantage. A disadvantage that hinders further growth in the trade relationship between Namibia and South Africa in the leather sector, both being members of the SADC region. |
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Products:
|
4107.99: Leather "incl. parchment-dressed leather" of the portions, strips or sheets of hides and skins of bovine "incl. buffalo" or equine animals, further prepared after tanning or crusting, without hair on (excl. unsplit full grains leather, grain splits leath |
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NTB-001-165 |
6.2. Administrative fees |
2024-03-01 |
Kenya: Kajiado |
|
New |
View |
|
Complaint:
|
Namanga/Kajiado Country charges 2,000Ksh for all Burundi cargo trucks transition Kenya |
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NTB-001-164 |
8.8. Issues related to transit |
2024-04-26 |
Mozambique: |
Lesotho |
In process |
View |
|
Complaint:
|
I was about to clear my stuff by the Border at Komatiport or Lebombo border post when the Police man of Mozambique by the name of Maphosa asked me to check my truck then asked for papers for the vehicle, my license, car insurance and important documents on my file, I gave him everything he wanted. He said I should clear my stuff and come back to him.
I went for clearing but then I was asked to bring truck papers and license, at that time Maphosa was no where to be found, I asked some police men about him but they said he is in Maputo and I have to go back to Maputo to fetch my things at the police station but never mentioning which police station should I go to, I had to leave all my goods at alfandegars storeroom which is renting even now.
I drove back to Lesotho without my license and some documents and luggages because the clearing could not be completed since the truck papers and my license were not available due to that Police officer. |
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Progress:
|
On 18 June 2024, Mozambique Focal Point reported that they had conducted a thorough investigation and provided following updates:
The police officer involved in the incident, was located and as a result of official inquiries, they successfully retrieved the driver's license, which was available for collection any time upon arrangement with Mozambican focal Point.Furthermore, there is an ongoing process to hold Officer Maphosa accountable for his actions, in accordance with applicable laws and regulations.
Following an inquiry by the Traffic Police Department of the PRM in collaboration with Customs at Ressano Garcia, it has been determined that the seizure of your goods was not related to the absence of a driver's license. The actual cause of the seizure was the lack of authorization from the Regional Director of Customs for exportation, absence of a customs broker, and missing invoice for the goods. |
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NTB-001-157 |
2.3. Issues related to the rules of origin |
2023-03-15 |
Rwanda: Rusumo |
|
In process |
View |
|
Complaint:
|
CoO for Maize from Tanzania rejected by Customs. |
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|
Products:
|
1901.90.10: -- Corn flour less 90%less 90% |
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NTB-001-156 |
8.7. Costly Road user charges /fees |
2024-03-09 |
Rwanda: Rusumo |
Tanzania |
In process |
View |
|
Complaint:
|
Republic of Rwanda is charging USD 270 from Rusumo border to Kigali which is equivalent to USD 80.83 per 100KM, while Tanzania is charging USD 10 per 100KM.This is against the agreed principle of distance x weight for transit vehicle. |
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Progress:
|
1. On 29 April 2024, Rwanda Focal Point reported that : 'Considering the financial implication of these rates, Rwanda was still reviewing this proposal pending the finalization of the EAC study on harmonization of RUC. However, Rwanda will engage URT bilaterally to discuss how to resolve this outstanding issue.
2.The 36th RMC was informed that the charge amounts to 70 USD and is also affecting the Republic of Kenya. The RMC also noted that it is an obligation of the Government to offer security in the Country and it should not be at the expense of the traders. RSS should stop collecting this fee which is not in the RSS Laws and do not attach it to the process of the RTF on the fees, levies and charges. |
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NTB-001-155 |
2.6. Additional taxes and other charges
Policy/Regulatory |
2023-11-03 |
Egypt: Egyptian Tax Authority |
Zambia |
In process |
View |
|
Complaint:
|
On November 3, 2023, the Egyptian Official Gazette published Law No. 177 of 2023 amending provisions of the Value Added Tax Law promulgated by Law No. 67 of 2016, including the provisions related to the tiers of cigarette taxation. The amendments to Serial 1/B of Law No. 177 of 2023 bluntly prohibits imported cigarettes from of the first tier and restricts them to “cigarettes produced by local factories”, which favors and gives preferential treatment to local products.
It is worth noting that the addition of the aforementioned provision has significant repercussions on the competitive ability of other companies, especially that the first tier has the lowest priced cigarettes in the market and are more economical for citizens. Consequently, this contradicts COMESA national treatment article, causing harm through the discrimination of specific products that may lead to market monopolization.
Various companies manufacture their brands in factories in COMESA member states and import and sell it in Egypt. However, the recent tax amendments that imposed a value-added tax on low-priced cigarettes prevent companies from importing cigarettes and limits sales to local production. |
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Progress:
|
1. Egypt to respond on the NTB with Zambia on the online reporting system by 1st Week of June 2024
2. During the NTBs workshop held from 17 -19 April 2024, the Egypt and Zambia agreed that this issue would form part of the agenda for the proposed bilateral meeting. The dates for the bilateral meeting to be facilitated by the Secretariat would be determined by the two Countries.
3. On 7 May 2024, Egypt Focal Point reported that consultations with the relevant national authorities were ongoing, and Egypt would provide updates as soon as possible.
4. On July 22, 2024, the Secretariat had a meeting with the exporter after receiving a reminder on the NTB dated 3rd July 2024. The aim of the meeting was to get the gist of the NTB and share other necessary information to start facilitating the resolution of the NTB.
5. As a policy issue, the NTB was escalated to Stage 1 on cooperation and elimination of NTBs under the COMESA Regulations on NTBs Elimination and on 26 August 2024, Zambia was advised to formally request the Secretariat to facilitate the bilateral meeting on behalf of the exporter. This comes after Zambia reported that she wrote to the Egyptian Embassy regarding the NTB but there was no immediate response and that was concerning as the matter was very urgent.
6. In a letter dated 2 September 2024, Zambia requested the Secretariat to facilitate a bilateral meeting between the two countries. The Secretariat has started preparation for the bilateral meeting including drafting a letter to Egypt and developing a draft agenda for the bilateral meeting between the two Member States. |
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NTB-001-153 |
2.3. Issues related to the rules of origin |
2024-01-26 |
Zambia: ZAMBIA REVENUE AUTHORITY |
Tanzania |
New |
View |
|
Complaint:
|
The ZB Card company shipped a shipment to Zambia at the end of January which is subject to the original SADC laws. When you arrived at ZRA, they refused to allow it, claiming that the HS Code is incorrect, so they ordered ZB Card to change it. ZB Card did that but ZRA has rejected the CoO claiming that it is not authentic. We have contacted TCCIA so that they can confirm its authenticity and TCCIA has done so but since 10/02/2024 there has been no success |
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NTB-001-152 |
8.8. Issues related to transit |
2024-02-07 |
Tanzania: Dar-es-Salaam Port |
Zambia |
New |
View |
|
Complaint:
|
All the Private Inland Container Depot Operators at Dar Port are refusing to discharge the vessel Ladonna MV for onward delivery of shipment to Zambia and DRC. Private Inland Container Depot Operators that were willing to discharge the vessel have been threatened by trading competitors to the current vessel owner/trader who is a new entrant in the regional market with total loss of current business if they discharged this vessel Dar Port. This is a clear violation of the WTO-TFA (World Trade Organization Trade Facilitation Agreement), AU (African Union), Comesa/SADC Regional protocols and agreements as well as individual Bi-lateral agreements relating to Trade Facilitation. Zambia has worked hard to secure this business to supply chemicals to the World Largest Copper Producer DRC in order to boost regional exports and promote continental economic growth. However, the private sector in Tanzania are now blocking these efforts despite the government working so hard to restore Dar Ports Image as the preferred port of choice on the Eastern Coast of Africa. These actions have potential to make serious negative impact to all 3 countries Tanzania, Zambia & DRC and overall the African Continent and therefore should be addressed to minimize the high costs of doing business. |
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Products:
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2503: Sulphur of all kinds, other than sublimed sulphur, precipitated sulphur and colloidal sulphur. |
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NTB-001-151 |
8.8. Issues related to transit |
2023-09-13 |
Mozambique: Beira Port |
Malawi |
New |
View |
|
Complaint:
|
The Malawi pigeon pea export consignment to India has been detained at Beira port in Mozambique for the following reasons:
1. 275Mt for Grey Matter - Investigation on issues of origin. However, the consignment bears Malawi custom seals and documents, emphasizing its Malawi origin.
2. 1500MT for Africa Fertilizer Ltd – Rules regarding fumigation. All the consignment loaded in trucks in Malawi, and stuffing was done in containers in Beira.
3. 3275MT for Afrisian Ltd – Customs verification if the cargo is in transit. |
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NTB-001-146 |
2.8. Lengthy and costly customs clearance procedures |
2023-11-01 |
Mozambique: Maputo Port |
Zimbabwe |
In process |
View |
|
Complaint:
|
Our Company , Blackwood Hodge Zimbabwe , (PVT. LTD) have been importing Vehicles using Maputo Port and never had challenges with customs since all paper work and documentation is always in order .We are the official distributors of Tata Motors commercial Vehicles here in Zimbabwe. We are a registered company here in Zimbabwe since 2007 and Trading as Blackwood Hodge Zimbabwe limited.
As per our supplier Invoice number 750966093 and BL number MOLU18005431182 DT. 30.09.2023 for one Unit LP 909 40-Seater Bus with Chassis number MAT382042P8R10426 was dispatched from Mumbai port, India via Vessel Eternal Ace to Maputo Port. The Vessel was docked on date- and all the Relevant procedures were done by our representative Payflex Trading Lda RUA ROMAO FERNANDES FARINHA NO:75 1ST FLOOR SUITE NR. 8ALTO MAE B. MAPUTO MOZAMBIQUE NUIT: 400379394 GIVEMORE GURI MOB 879304844 / 849304844.
We are writing to report serious challenges we are facing from the office of the Customs Director, Southern Region Director (DRS) which authorises the release of the bus.
Our bus is now being held by Customs at Maputo port, in our view, without any valid reasons and now we might be facing legal action for fraud from our customer who placed an order for bus and paid us 50% deposit as well. Pls note this bus is for Ministry of Education of Zimbabwe -Bulawayo Polytechnic.
The customs office has been holding on to the clearing process for over 3 weeks and is not communicating the reasons for the delays to us the importer . Our bus belongs to Bulawayo Polytechnic (which is under ministry of Education here in Zimbabwe) and all documents are in order. This incident has caused our Business a Loss of sale as well as hampered our reputation in the market. Also, we should note that this bus was one of the first buses we were to supply to Ministry of Education in Zimbabwe. Unfortunately, the Director has refused to release our in-transit cargo to Zimbabwe.
we have attached documentary evidence and report from our Maputo Agents explaining what transpired in detail for your urgent / immediate actions.’ |
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Progress:
|
On 5th December 2023, the SADC NTB unit submitted following report from the Directorate of Customs ,Mozambique :
Through Customs Broker Florentina Virgilio Alberto Zunguze, a customs transit declaration was submitted with no. 23362286972, together with a Delivery Order with no. 23/346, dated October 25, 2023, passed by Manica Freight Services Moç a favor of Blackwood Hodge (Zimbabwe) PVT Ltd; a provisional License with no. 05 through which the Maritime Transport Institute authorizes Payflex Trading Lda to carry out the activity of Freight Agency in International Transit; a commercial invoice with no. 750966093, dated 30.09.2023, in favor of Blackwood Hodge (Zimbabwe) PVT Lda and B/l with no. MOLU18005431182.
By Law
The customs transit of goods in Mozambique is supported, among other legal provisions, by the Customs Clearance Regulation of Goods approved by Ministerial Diploma no. 51/2019, of 24 May and the Customs Transit Regulation approved by Ministerial Diploma no. 116 /2013, of August 8, as highlighted by Service Order No. 06/AT/DGA/410/2021, of February 24, a copy of which is attached.
From our appreciation
The confusion created by the Forwarder with the connivance of the Shipping Agent immediately becomes apparent, taking into account that the same merchandise has as a party to notify two different people, in this case Blackwood Hodge (Zimbabwe) PVT Lda, according to the notice of arrival and Payflex Trading Lda, according to the B/L;
Another aspect worth highlighting is the fact that there are forged documents, with the sole aim of guaranteeing benefits within the scope of the traffic regulations, since strictly speaking, the B/L must be issued in accordance with the data contained in the manifest of cargo delivered by the ship's captain in view of the tax entry, therefore, changes made by the shipping agent are not permitted, as is the case in this case;
On the SeW platform, the declaration was rejected due to this procedure being considered incorrect and, to a certain extent, criminal, if any malicious intent is proven in the change made by Manica Freight Services Mozambique |
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NTB-001-134 |
2.6. Additional taxes and other charges |
2023-05-08 |
Kenya: |
Egypt |
In process |
View |
|
Complaint:
|
The Middle East Glass Manufacturing Company and its subsidiaries: 1) Misr Glass Manufacturing and 2) Middle East Glass Containers in Sadat. Being largest glass container manufacturer in the Middle East & North/East African region located in Egypt. The company has maintained strong business relation with Republic of Kenya over the last decade(s) being key glass supplier for more than 12 years to most of big manufacturing companies (some of them are big multinational companies) with superior track record of commitments in terms of quality standards and satisfying customer demands, continuity of supply, meeting their expectations and needs of glass container.
Egypt is member state of COMESA trade agreement (Common Market for Eastern and Southern Africa), which support enhancing the relation and volume of trade between the company and Kenyan customers. Below table shows the amounts that has been exported to Kenya in the last 5 years:
2019 = US$ 10,325,336
2020 = US$ 10, 929, 362
2021 = US$ 8, 122, 525
2022 = US$ 8, 848, 972
2023 = US$ 7,322,062
Starting March 2020, Kenya has applied Extra Excise of 25% on all imported glass bottles (excluding pharmaceutical glass bottles) – copy attached - which limit the advantage given to all COMESA countries. This law has been already appealed by other glass container manufacturer in Tanzania and they successfully were able to remove it.
In addition, Starting September 2023, Excise duty applied on imported glass bottles has been increased to be 35% instead of 25% with no clear reason or justification. This additional duty applies by the Finance Act No. 4 of 2023 – copy attached - has prevented Middle East Glass from its fair competition against other glass manufacturers in the region and also against the agreement of COMESA.
We believe the main reason behind all these amendments is to support the local producer Milly Glass Works Ltd. Address: Liwatoni Road, Mvita, Road, Mombasa, Kenya, Near the Mombasa Yacht Club.
Hence, we seek support to waive all the glass exported from Egypt to Kenya from implementation of the excessive Excise Duties similar to the case of Tanzania case. |
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Progress:
|
1. During the NTBs workshop 17th - 19th April 2024, Egypt reported that the legislation is still providing a barrier to Egypt exports to Kenya. The two countries agreed that this issue will form part of the agenda for the proposed bilateral meeting by 28th June 2024.
2. On 28 August 2024, Egypt requested the Secretariat to facilitate a bilateral meeting between themselves and Kenya regarding this NTB. After the Secretariat initiated the bilateral meeting, on 3 September 2024, Kenya agreed to hold the bilateral meeting, following a stakeholder consultative meeting held on the same day. |
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NTB-001-129 |
2.6. Additional taxes and other charges |
2021-07-01 |
Kenya: Kenyan Government |
Egypt |
In process |
View |
|
Complaint:
|
Complain from Eagle Chemicals - Egypt
Subject: Excise duty on imports cancelling the effect of COMESA agreement
TARRIFF BARRIERS UNDER COMESA AGREEMENT (EXCISE DUTY TAX IN KENYA AS A BARRIER)
COMESA AGREEMENT:
Republic of Kenya and Egypt are signatories to COMESA AGREEMENT on removal of tariff (tax) barriers towards FREE TRADE between themselves and among the signatory member countries.
Since the establishment the COMESA AGREEMENT several years ago, the Republic of Kenya and Egypt have enjoyed this free trade environment and trade between the two countries has grown by leaps and bounds (UNTIL JULY 2021)
KENYA----FINANCE ACT 2021----IMPOSITION 10% EXCISE DUTY TAX (TARRIFF BARRIER)
In July 2021 and for the first time ever since signing of COMESA AGREEMENT, the Kenya Government imposed unilaterally and without consultation with COMESA Secretariat or with the Republic of Egypt a 10% Excise Duty (tariff Barrier) on Resins manufactured and exported from Egypt and / imported into Kenya.
This was an act in bad faith noting the mutual relationship between Egypt and Kenya under COMESA AGREEMENT
KENYA---FINANCE ACT 2023----IMPOSITION OF AN ADDITIONAL 10% EXCISE DUTY TAX ON RESINS (TARRIFF BARRIER).
In July 2023, the Kenya Government introduced an additional 10% Excise Duty Tax on resins imported from Egypt bringing total Excise Duty Tax to 20% and this again without consultation with COMESA Secretariat and neither / nor a humble advance notification to Republic of Egypt as a sign of good faith under the mutual COMESA AGREEMENT
KENYA---THE 20% EXCISE DUTY TAX ON RESINS--- PURPORTED PURPOSE
This tax is applying only on all imported resins (from COMESA and from Non-COMESA countries) BUT is not applied on locally manufactured resins.
Consequently, and from a COMESA perspective, this Excise Duty Tax is an IMPORT DUTY TAX camouflaged as a local excise duty tax hidden behind the purported protection of one local commercial resin manufacturer (SYNRESINS) whose capacity is below 15% of Kenya market resin usage / requirement.
AGGRAVATED BAD FAITH AGAINST MUTUAL TRADE AGREEMENT UNDER COMESA.
The above developments are acts in bad Faith by Kenya Government against a friendly free trade partner (Egypt) under the COMESA AGREEMENT.
Please note no other country / signatory to the COMESA AGREEMENT has imposed an excise duty tax on resins from Egypt.
IMPORT DUTY TAX ON RESINS ARE AND REMAIN AT NIL IMPORT DUTY TARRIFF TODATE UNDER COMESA AGREEMENT ON TARRIF BARRIERS TOWARDS FREE TRADE.
Please note IMPORT DUTY TAX on resins from Egypt to Kenya remain at NIL % import duty and is at NIL on imports by other COMESA countries.
Import duty on resins into Kenya from NON-COMESA COUNTRIES is and has always been at 10% since inception of COMESA AGREEMENT
REQUEST
Republic of Egypt has obligation to protect their manufacturers of resins who export to Kenya under COMESA AGREEMENT against such unjustified TARRIFF TAX BARRIERS imposed by Republic of Kenya by requesting their removal for benefit of mutual trade growth both ways.
(Refer Attachments)
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Progress:
|
1. During the 3rd meeting of the COMESA NTBs Regional Forum , Kenya Focal point reported that they had contacted relevant authority and will provide feedback in the online system . Egypt requested that the bilateral meeting to consider this and other NTBs be schedule at the time Kenya would have completed their internal consultations .
2.Following the 3rd Regional COMESA NTB meeting and the 8th Meeting of Trade and Trade facilitation Sub Committee, Kenya was requested to provide feed back on NTB-001-129 on excise applied to products, 3905.19: Homopolymers 3903.20: Emulsion - Styrene Acrylic3905.91: Emulsion VAM 3907.50: Alkyd and3907.91: Unsaturated Polyester , It was proposed that Kenya and Egypt to hold a bilateral Meeting virtual with support of the Secretariat on 10th November 2023.
3. During the NTBs workshop 17th - 19th April 2024, the two countries agreed to hold a bilateral meeting on this issue. Egypt has formally submitted a Note Verbal to the Kenya NFPs. The Note Verbal has since been submitted to higher authority as the NTBs involves a policy issue and requires long-term for its resolution. Kenya to update the status report on outstanding NTBs with Egypt on the online reporting system by 26th April 2024.
4. On 18 June 2024, Kenya Focal Point reported that the Kenyan parliament was reviewing the Finance Bill 2024, with the intention of revising certain clauses as deemed necessary. Consequently, they were awaiting the enactment of the Finance Bill 2024 to determine whether there will be amendments to the specified non-tariff barriers (NTBs).
5. On 9 September 2024, Egypt and Kenya held a bilateral meeting on the outstanding NTBs emanating from the enactment of Kenya’s Finance Acts of 2021 and 2023. The two Member States agreed on the following:
a) The additional taxes are NTBs as its application is discriminatory as they only apply on imports and not domestically produced products.
b) Kenya to continue with her internal consultations with relevant policymakers and to follow up on the progress of resolving the NTBs, as requested by the Egyptian delegation.
c) The meeting agreed that the NTBs are policy issues and can be best addressed by the Joint Trade Commission (JTC) meeting, which is a higher level that is able to take decisions on this NTB and other trade related issues.
d) Both Kenya and Egypt continue with internal consultations with relevant stakeholders in preparation for the upcoming JTC meeting. |
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Products:
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3903.20: Styrene-acrylonitrile copolymers "SAN", in primary forms, 3905.19: Poly"vinyl acetate", in primary forms (excl. in aqueous dispersion), 3905.91: Copolymers of vinyl, in primary forms (excl. vinyl chloride-vinyl acetate copolymers and other vinyl chloride copolymers, and vinyl acetate copolymers), 3906.90: Acrylic polymers, in primary forms (excl. poly"methyl methacrylate"), 3907.50: Alkyd resins, in primary forms and 3907.91: Unsaturated polyallyl esters and other polyesters, in primary forms (excl. polycarbonates, alkyd resins, poly"ethylene terephthalate" and poly"lactic acid") |
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NTB-001-128 |
2.4. Import licensing |
2023-06-23 |
Zimbabwe: Johannesburg/Pretoria |
South Africa |
In process |
View |
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Complaint:
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Reference is made to a resolved complaint with number NTB-000-966, which pertained to a problem with import licensing requirements into Zimbabwe.
The complainant was a Zambian exporter of yeast that was experiencing challenges in obtaining import permits from the Authorities in Zimbabwe, which permits were not issued when requested. This complaint is similar to the problem experienced by Rymco (Pty) Ltd, trading as Anchor Yeast, being hindered in exporting yeast from South Africa to Zimbabwe.
The date of resolution is indicated as 06 April 2023. A status note pertaining to the complaint reads as follows: “During the COMESA Regional Capacity Building Workshop for NMCs and National Focal Points held from 3 to 6 April 2023, Zimbabwe Focal Points reported that import permits were no longer required as the products have been placed on open general import license. This NTB was therefore resolved.”
South Africa requests confirmation on whether the lifting of the import licensing requirement on yeast also applies to SADC countries, specifically South Africa. |
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