| Complaint number |
NTB Type
|
Date of incident |
Location |
Reporting country or region (additional) |
Status |
Actions |
|
NTB-001-217 |
1.1. Export subsidies |
2024-09-24 |
Tanzania: Kabanga |
Burundi |
In process |
View |
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Complaint:
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URT IS IMPOSING TO BURUNDI A TAX FOR SALUBRITY FOR TRANSIT TRUCKS imposed by port health on borders. This case is for 2 borders : Kabanga and Mutukula with different dates: 24 September 2024 and 02 October 2024. |
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Progress:
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1. Free Pratique in the Tanzania Public Health Act 2009
Definition: "free pratique" means permission for a ship or an aircraft to enter a port embark or disembark, discharge or load cargo or stores;
When is it granted:
Section 40 (3) Where the Port Health Officer is satisfied that: -
(a) a communicable or infectious disease is not on board;
(b) The Responses on the Maritime Declaration of Health Form are negative:
(c) the Ship Sanitation Control Certificate or Ship Sanitation Control Exemption Certificate is valid; and
(d) there is no other reason for the ship to be further inspected he shall grant a certificate for free pratique and allow the ship to enter the port as prescribed in the Seventh Schedule to this Act,
Section 43. Except in the case of danger, the Master of a vessel arriving at any port or place in the country and a person on board the vessel, shall not communicate or attempt to communicate with the shore or any other vessel, other than by signal, until a certificate for free pratique has been granted to that vessel in accordance with the provisions of this Act and any other relevant laws.
When is it applied:
Section 46. The Port Health Officer may, upon arrival of-
(a) any vessel, train, aircraft, vehicle, train or any other article or thing from infected area or suspected to be from that infected area; or
(b) any vessel, aircraft, vehicle, train or any other article or thing which has during the voyage been in transit in an infected area with plague, cholera, yellow fever or any other communicable or infectious disease, order the implementation of the measures to deal with that vessel, vehicle, train, aircraft or any other article or thing in accordance with the provisions of this Act.
The United Republic of Tanzania requested time to undertake consultations on the matter and report the progress by 28th February 2025.
The Sectoral Council on Trade, Industry, Finance and Investment urged the United Republic of Tanzania to remove the charges related to free pratique as it impedes trade in goods and services and increases the cost of doing business in the Region and report progress by 28th February 2025 (EAC / SCTIFI 45 / Directive / 49).
2. Tanzania through the Ministry of Health undertook a consultative meeting and agreed to consider the matter during the financial year 2025/26 |
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NTB-001-204 |
2.9. Issues related to transit fees |
2024-10-01 |
Rwanda: Gatuna |
Uganda |
In process |
View |
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Complaint:
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Republic of Rwanda is charging un harmonized flat rates for vehicles transiting through the Rwanda borders. This is against the agreed principle of distance x weight for transit vehicles.
Uganda is upholding the principle of distance*weight.
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Progress:
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1.The RMC of 17th October 2024 was informed that the NTB on discriminatory road user charges was considered by the 45th Council of Ministers which noted the following submission from Partner States:The Republic of Rwanda informed the Council that:
a) The decision of TCM to calculate the Road User Charges based on weight and distance is discriminatory in nature. It favours big states and discriminates against smaller ones. In view of the above, Rwanda being a small state and landlocked as well cannot accept being punished based on its size.
b) The EAC Partner States had gone beyond this level by harmonizing fees and charges. The harmonization of charges, Levies and fees is ongoing. From 1 7 to 21 June 2024 in Entebbe - Uganda, the Community convened a regional meeting to identify and compile Fees, Levies and charges in Agriculture and Transport Sectors. The Republic of Rwanda proposes to continue in the same spirit of harmonizing charges and fees by putting in place flat rates.
c) That Road User Charges which are calculated based on axle load and distance should only apply to cargo trucks which originate from non-EAC Partner States i.e. SADC & COMESA Countries. EAC Partner States should enjoy equal benefits of regional integration by removing anything identified as barriers
d) That high transportation costs, including levies, fees, and charges, result in higher final prices, impacting businesses, trade, and end consumers, particularly in landlocked countries.
e) There is a need for the EAC to agree on fair and fact-based Road User Charges, not only focusing on micro-level factors like axle load/weight and distance but also considering other factors that favour all of us as a region
f) There is a need to do a study to determine the impact of the Road User Charges on the EAC economies.
The Republic of Burundi informed the Council that:
a) The bilateral meeting between the Republic of Burundi and the United Republic of Tanzania as directed by the TCM has not yet been convened by the Secretariat; and
b) They were still consulting on the matter.
The Council therefore observed that:
a) Road User Charges are intended for infrastructural development and maintenance, end-to-end facilitation of transportation, and not revenue; and
b) All the Partner States participated in the meeting of the SC TCM that adopted the proposals and recommendations of SC TCM on harmonisation of Road User Charges.
The Sectoral Council (TCM) Directed:
a) Partner States to apply the distance + weight (axles) charging principle;
b) Partner States that use flat rates to abolish them and adopt distance + weight (axles) charging principle.
c) Partner States to charge Road User Charges based on the following three categories of vehicles:
• Buses;
• Trucks of three or less axles; and
• Heavy Goods Vehicles of more than three axles (truck with a drawbar trailer or articulated vehicles/semi-trailers);
d) Partner States applying COMESA harmonised rates between themselves to continue doing so;
e) Partner States to reciprocate the distance + weight (axles) rates charged by counterpart states;
f) The Secretariat to prepare Terms of Reference for a study to review the existing Road User Charges and develop harmonised charging formulas to be applicable in the EAC;
g) Secretariat to mobilise funds for the study in (vi) above;
h) Foreign registered vehicles to be charged RUCs on the basis of a round trip from the point of entry to the destination and back provided the destination is within the country of entry;
i) Partner States to always display the gazetted RUC rates at all points of entry; and
j) Partner States to prepare a schedule of distances and their respective computed charges from their point of entry to various destinations within their respective territories and display them at all points of entry.
The Council directed the Secretariat to refer the Harmonization of Road User Charges in the Community back to the Sectoral Council on Transport Communication and Meteorology (TCM) for consideration and report back to the 46th meeting of Council (EAC/CM 45/ Directive 56). As per the directives of TCM, there are two Road User Charges adopted in the Community.
(i) distance + weight (axles) rates
(ii) COMESA harmonised rates of USD 10 per 100 KM
The Republic of Rwanda committed to consult and revert during the 38th RMC.
2.Directives from 18th Sectoral Council on TCM:
The 18th Sectoral Council (TCM) Directed:
(a) Partner States to apply the distance + weight (axles) charging principle;
(b) Partner States that use flat rates to abolish them and adopt distance + weight (axles) charging principle.
(c) Partner States to charge Road User Charges based on the following three categories of vehicles:
● Buses;
● Trucks of three or less axles; and
● Heavy Goods Vehicles of more than three axles (truck with a drawbar trailer or articulated vehicles / semi-trailers);
(d) Partner States applying COMESA harmonized rates between themselves to continue doing so;
(e) Partner States to reciprocate the distance + weight (axles) rates charged by counterpart states;
(f) The Secretariat to prepare Terms of Reference for a study to review the existing Road User Charges and develop harmonized charging formulas to be applicable in the EAC;
(g) Secretariat to mobilize funds for the study in (vi) above;
(h) Foreign registered vehicles to be charged RUCs on the basis of a round trip from the point of entry to the destination and back provided the destination is within the country of entry;
(i) Partner States to always display the gazetted RUC rates at all points of entry; and
(j) Partner States prepare a schedule of distances and their respective computed charges from their point of entry to various destinations within their respective territories and display them at all points of entry.
Updates from the 45th Council of Ministers:
The NTBs on Road User Charges were also considered by the 45th Council of Ministers which noted the following submission from Partner States:
The Republic of Rwanda informed the Council that:
(a) The decision of TCM to calculate the Road User Charges based on weight and distance is discriminatory in nature. It favors big states and discriminates against smaller ones. In view of the above, Rwanda being a small state and landlocked as well cannot accept being punished based on its size.
(b) The EAC Partner States had gone beyond this level by harmonizing fees and charges. The harmonization of charges, Levies and fees is ongoing. From 1 7 to 21 June 2024 in Entebbe - Uganda, the Community convened a regional meeting to identify and compile Fees, Levies and charges in Agriculture and Transport Sectors. The Republic of Rwanda proposes to continue in the same spirit of harmonizing charges and fees by putting in place flat rates.
(c) That Road User Charges which are calculated based on axle load and distance should only apply to cargo trucks which originate from non-EAC Partner States i.e. SADC & COMESA Countries. EAC Partner States should enjoy equal benefits of regional integration by removing anything identified as barriers
(d) That high transportation costs, including levies, fees, and charges, result in higher final prices, impacting businesses, trade, and end consumers, particularly in landlocked countries.
(e) There is a need for the EAC to agree on fair and fact-based Road User Charges, not only focusing on micro-level factors like axle load / weight and distance but also considering other factors that favor all of us as a region
(f) There is a need to do a study to determine the impact of the Road User Charges on the EAC economies.
The Republic of Burundi informed the Council that:
(a) The bilateral meeting between the Republic of Burundi and the United Republic of Tanzania as directed by the TCM has not yet been convened by the Secretariat; and
(b) They were still consulting on the matter.
The Council therefore observed that:
(a) Road User Charges are intended for infrastructural development and maintenance, end-to-end facilitation of transportation, and not revenue; and
(b) All the Partner States participated in the meeting of the Sectoral Council on TCM that adopted the proposals and recommendations of the Sectoral Council on TCM on harmonization of Road User Charges.
The Council directed the Secretariat to refer the Harmonization of Road User Charges in the Community back to the Sectoral Council on Transport Communication and Meteorology (TCM) for consideration and report back to the 46th meeting of Council (EAC / CM 45 / Directive 56).
Update from the 19th Sectoral Council on TCM:
The 19th Sectoral Council on TCM considered the matter and received inputs from Partner States as follows:
United Republic of Tanzania
Tanzania provided a presentation containing the background, findings and recommendations on the issues of Road User Charges as follows:
(i) Prior to the 18th TCM, United Republic of Tanzania was charging a rate of USD 16 / 100km for vehicles over three axles and USD 6 / 100 km for vehicles of up to 3 axles;
(ii) After the 18th TCM, United Republic of Tanzania reviewed her rates to USD 10 / 100km for vehicles above three axles and USD 06 / 100 km for vehicles below three axles
(iii) Under the road-user principle, road users are supposed to pay RUCs to compensate damage caused by vehicles;
(iv) There is need for non-discriminatory charging for road users from foreign vehicles;
(v) Studies reveal that the principles to be used to calculate RUCs should be foreign operators to pay for road use; non-discrimination and charges related to damage caused on the road infrastructure.
Uganda
Uganda submitted that:
(i) All roads are paid for by citizens through taxes and there are no free roads
(ii) Roads have a design life, and the main cause of deterioration is the weight (load carried by vehicles), and the distance moved. The heavier the weight carried the more the degradation and the longer the distance the more the degradation; hence the higher the repair costs required;
(iii) Road user charges are not profits for utilization of the roads but a contribution for the maintenance and repair of the roads;
(iv) The position of the 18th Sectoral Council of TCM is not discriminatory at all as it stipulates that whoever degrades the roads should meet a proportionate contribution to their repair and maintenance; moreover, all Partner States were involved in making that decision;
(v) The weight + distance consideration in the road user charge is an equitable basis for contributing to the maintenance and repair of roads;
(vi) Tanzania has already carried out a study similar to the one being proposed by some Partner States whose results were shared in the meeting, and they support the weight + distance basis for determining the road user charges;
(vii) Deferring the decision on the user charges will cause an unnecessary vacuum which will have serious effects in the road sector; the largest mode of transport at the moment.
The Republic of Uganda therefore supports the position of the 18th TCM.
Burundi
Burundi was of the view that landlocked countries should not be disadvantaged to access the world markets through high transit charges along coastal countries. The fixed rate for RUCs should be maintained. The RUCs include fuel levy for road maintenance, vehicle license fees, international transit fees and others such as congestion fees. The concern raised by Burundi is that RUC should be restricted to transit fees. The road user from neighbouring countries pay for damage to the road network is catered for by the fuel levy.
Rwanda
Rwanda was of the opinion that the rates should be determined by the Committee responsible for fees, charges and levies since that committee handles all sectors of the economy that includes all modes of transport. What was needed was the timeline within which to harmonize the charges. The charges incurred by transporters are actually borne by the citizens, who are the end users of the cargo being transported.
Kenya
Kenya supports the directives of the 18th TCM. However, EAC Secretariat was supposed to prepare TORs for a regional study on harmonized RUCs. Alternatively, the study could be done by a TWG. Through a bilateral arrangement, Kenya and Tanzania harmonized their charges to comply with COMESA rates. But the proposed study by the Secretariat should take into account the principals. further, the quality of roads in the region are not the same, hence there was a need to harmonize the road quality standards so that the cost of maintenance of roads is similar for all countries.
The Secretariat clarified that the draft TORs had been prepared but needed to be updated and submitted to Partner States for review in two weeks. Regarding the modality for the study, the TCM had agreed that the study be carried out by an independent consultant oversighted by a technical working group. The issue of RUCs is also an agenda in SADC and COMESA and, therefore, is a Tripartite issue. Currently discussions are ongoing with the EU and TMA, and it is hoped that a solution will be found.
Conclusion
Uganda, Kenya and Tanzania were of the opinion that the principles of charging agreed by the 18th TCM (distance + weight) should be maintained, as the region awaits the outcome of the study by the Secretariat. However, Rwanda and Burundi positions are that the charges should be further analyzed by the Committee on rates, fees and levies.
The meeting noted that the 19th TCM among others reiterated its directive to Partner States applying the COMESA rates on RUCs as directed by the 18th TCM (EAC / TCM 19 / Directive 08).
The Republic of Rwanda and Republic of Burundi were of the view that the study should come first before implementation of the TCM Directives.
Permanent / Principal / Under Secretaries noted the need for the study by TCM on harmonization of road user charges, as they have direct impact on the cost of doing business in the Region and be subjected to the joint consideration by the Sectoral Council on TCM and SCTIFI.
The Sectoral Council on Trade, Industry, Finance and Investment took note of the directives of the Sectoral Council on Transport, Communications and Meteorology on the harmonized road user charges; and recommended to Council to direct the Secretariat to convene a joint meeting of the Sectoral Council of the Sectoral Council on Transport, Communications and Meteorology and Sectoral Council on Trade, Industry, Finance and Investment to consider the recommendations of the study on the harmonization of road user charges once finalized by the Sectoral Council on Transport, Communications and Meteorology (EAC / SCTIFI 45 / Directive / 47).
3.The 46th Council considered the NTB and gave the following directives:
(a) directed Partner States applying COMESA harmonized rates between themselves to continue doing so (EAC/CM 46 / Directive 17);
(b) directed Partner States to retain status quo with respect to the Road User Charges (EAC/CM 46 / Directive 18); and
(c) direct the Secretariat to prioritize and expedite undertaking the study on harmonization of EAC Road User Charges within six months and report to the 47th Council. (EAC/CM 46 / Directive 19) |
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NTB-001-214 |
6.6. Border taxes |
2024-10-01 |
Tanzania: Rusumo, Mutukula, Kabanga |
Rwanda |
In process |
View |
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Complaint:
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Through Port Health at Rusumo, Kobero / Kabanga and Mutukula/Mutukula, the United Republic of Tanzania charges the Republic of Rwanda and the Republic of Burundi Trucks 5 USD or the equivalent in Tshs as Free Pratique which is not in the EAC legal framework for free movement of cross-border trade. |
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Progress:
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1.The United Republic of Tanzania submitted that Free Pratique is an internal health practice for taking samples, inspections, maintenance, vaccination, and sanitising at points of entry and exit. The fee which is charged once per vehicle per journey, is charged based on the Tanzania Public Health Act 2009 http://elibrary.osg.go.tz/bitstream/handle/123456789/1006/01-2009%20The%20Public%20Health%20Act%2c%202009%20.pdf?sequence=1&isAllowed=y and International Health Regulations 2005.
Free Pratique in the Tanzania Public Health Act 2009
Definition: "free pratique" means permission for a ship or an aircraft to enter a port embark or disembark, discharge or load cargo or stores;
When is it granted:
Section 40 (3) Where the Port Health Officer is satisfied that -
a) a communicable or infectious disease is not on board;
b) The Responses on the Maritime Declaration of Health Form are negative:
c) the Ship Sanitation Control Certificate or Ship Sanitation Control Exemption Certificate is valid; and
d) there is no other reason for the ship to be further inspected he shall grant a certificate for free pratique and allow the ship to enter the port as prescribed in the Seventh Schedule to this Act.
Section 43: Except in the case of danger, the Master of a vessel arriving at any port or place in the country and a person on board the vessel, shall not communicate or attempt to communicate with the shore or any other vessel, other than by signal, until a certificate for free pratique has been granted to that vessel in accordance with the provisions of this Act and any other relevant laws.
Partner States expressed their concern on the discriminatory fee charged at Rusumo, Kabanga and Mutukula OSBPs only and is demanded on truck drivers without any service being provided to them.
2.The United Republic of Tanzania submitted that Free Pratique is an internal health practice for taking samples, inspections, maintenance, vaccination, and sanitizing at points of entry and exit. The fee which is charged once per vehicle per journey, is charged based on the Tanzania Public Health Act 2009 http://elibrary.osg.go.tz/bitstream/handle/123456789/1006/02009%20The%20Public%20Health%20Act%2c%202009%20.pdf?sequence=1&isAllowed=y and International Health Regulations 2005.
Further, the United Republic of Tanzania reported that the charges are not confined to regional trade only and not discriminative as they are applied to all borders and all vehicles including those registered in Tanzania. In that view, the United Republic of Tanzania considers that the charges are not qualified to be NTB. In addition, the United Republic of Tanzania reported that the charges are 5 USD for buses / trucks and other surface vehicles; and USD 20 for trains.
Other Partner States noted that the charge of 5 USD is only imposed at Rusumo, Kabanga and Mutukula OSBPs and hence, it is discriminatory. The meeting emphasized that the fee is an NTB because it impedes trade in goods and services and increases the cost of doing business in the region thus it should be removed.
The United Republic of Tanzania requested for time to undertake consultations on the matter and report resolution by 28th February 2025.
The Sectoral Council on Trade, Industry, Finance and Investment urged the United Republic of Tanzania to finalize the internal processes on the removal of the charges related to conveyance inspection and resolve the matter by 28th February 2025 (EAC / SCTIFI 45 / Directive / 48).
2.Tanzania through the Ministry of Health undertook a consultative meeting and agreed to consider the matter during the financial year 2025/26 |
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NTB-001-209 |
2.9. Issues related to transit fees |
2024-10-13 |
Kenya: Ministry of Forestry and Wildlife |
Uganda |
In process |
View |
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Complaint:
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Additional fees are charged on timber in transit.
Kenya charges Ksh 48000 on transit vehicles carrying forest and timber products from Uganda that transit through Kenya to destinations outside the EAC. Transit vehicles are charged fees for a transit license in addition to payment of road user fees. The timber products are extracted from forests in Uganda and not Kenya. This additional fee is wrongly charged and causes additional costs to trade in forest products from Uganda. |
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Progress:
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1. During the RMC of 17th October 2024, the Republic of Kenya committed to consult and revert during the 38th RMC.
2.The Senior Officials were informed that the Republic of Kenya is in consultation with Forestry Services to address the matter and will report back by the 46th SCTIFI.
3.During the Senior Officials Session, Kenya reported that:
This is a consolidated charge for movement permits for timber on transit for 18 trucks.
The fees and charges are contained in the Fourth Schedule of Legal Notice No. 21 of 2016 (item 9) as follows:
Movement permit per consignment- 2000
VAT 16% 320
E citizen fee 50
Total 2370
The movement permits are meant to provide control, traceability as well as monitoring the movement of forest products till they reach the required destination. |
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NTB-001-218 |
2.6. Additional taxes and other charges |
2024-10-29 |
Tanzania: Dar es Salaam |
Kenya |
In process |
View |
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Complaint:
|
Tanzania's Finance Act 2024 introduced an excise duty for ‘’imported’’ products under HS Code 32.08 (Paints and varnishes including enamels and lacquers) of T Shs. 500 per kilo. However, this excise duty has NOT been imposed on any local manufacturers of the same products.
We intend to import items under this heading made in Kenya. Under the spirit of the EAC Trade protocols, which allows for free movement of goods, no duties, taxes or other non-tariff barriers should be imposed on any goods from a EAC partner country that a local manufacturer does not pay.
Therefore we believe this excise duty represents a huge disincentive to Kenyan manufacturers and hindrance to free trade within the EAC.
After writing to the TRA for assistance in the above issue, we were told that the Excise duty is chargeable to all goods falling under that heading even if it is of Kenyan origin (see our letter and their response)
We therefore request your assistance on way forward for us to import items under the HS codes mentioned from Kenya without being subject to this new excise duty of 500 T Shs. Per kilo. |
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Progress:
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The SCTIFI of May 2025 noted that, although the Republic of Kenya had not provided transactional evidence on the reported excise duty, broader concerns remain regarding the misapplication of the term “imports” within the EAC context. Partner States were reminded that Article 15 of the Customs Union Protocol on National Treatment prohibits discriminatory treatment of goods originating from other EAC Partner States. The meeting therefore urged all Partner States to harmonize the interpretation and application of the term “imports” in national laws and practices with the EAC legal framework, in order to facilitate intra EAC Trade. |
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NTB-001-246 |
2.3. Issues related to the rules of origin |
2024-11-01 |
Tanzania: Ministry of Agriculture |
Uganda |
In process |
View |
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Complaint:
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Quantitative restrictions on Ugandan Sugar transfers to Tanzania only up to 20,000 MT, are accepted
These Quotas have been subject to bilateral negotiations to allow market access for Uganda Sugar.
We request that Tanzania to remove quantitative restrictions. |
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Progress:
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During the RMC Uganda submitted that engagements with URT on the NTB had not achieved results and would seek the issue to be escalated to the Policy level.
During the SCoT URT submitted that Uganda requested the quota and was granted through a bilateral agreement and hence discussions to resolve the NTB should be continued bilaterally |
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NTB-001-226 |
1.1. Export subsidies |
2024-11-20 |
Lesotho: Maseru Bridge |
Lesotho |
New |
View |
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Complaint:
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Samples being sent by road-freight to South Africa for testing at an accredited laboratory were refused passage.
Company was informed that the only way to send the samples for testing was to send via air. The challenges are that bulk orders do not fit on an Airlink flight and therefore would require a specific mode of chartered transport .This increases costs significantly and could potentially be the cause that orders are cancelled |
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NTB-001-224 |
2.8. Lengthy and costly customs clearance procedures |
2024-11-22 |
South Africa: South African Revenue Authority |
Mauritius |
New |
View |
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Complaint:
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Mauritius Customs is unable to accept the SADC Certificate ZA PQ 56085 issued by Customs in South Africa due to missing of specimen signature at their level. The Mauritius Customs sent a request to RSA Customs to get a confirmation of the signature .Up to date they have not yet received any reply. |
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NTB-001-271 |
2.6. Additional taxes and other charges |
2024-12-01 |
COMESA |
Egypt |
In process |
View |
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Complaint:
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Unipak Nile Ltd., a subsidiary of INDEVCO Group in Egypt, export corrugated boxes to Kenya under the COMESA Agreement.
The Kenyan government imposed a 25% excise duty on corrugated boxes imported from Egypt, violating the principles of the COMESA Agreement and creating an unfair competitive environment. This tax favours local Kenyan producers, some of whom do not pay the required taxes, further distorting the market.
This unilateral action undermines ability of Egyptian exporter to compete fairly and has halted UNIPAK Nile Ltd export operations and expansion plans in Kenya whose exports to Kenya reached $9–10 million annually, particularly in the agriculture and dairy sectors. |
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NTB-001-231 |
2.6. Additional taxes and other charges |
2024-12-12 |
EAC |
Rwanda |
New |
View |
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Complaint:
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Illegal fees on Rwandan nationals crossing into Tanzania more than three times a month.$100 is charged on Rwandan nationals crossing into Tanzania more than three times a month, this was identified by the Central Corridor Team during a survey from Rusumo to Dar es Salaam port. |
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Progress:
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During the 38th RMC, Tanzania informed the meeting that the fee is not illegal, but it is a special pass paid once in 90 days to all EAC Citizens. However, if the person exits URT within 90 days and wants to re-enter URT the person will again be charged $100.
The meeting agreed that the matter be referred to the Regional Implementation Committee on the Common Market Protocol for further discussion and resolution |
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NTB-001-242 |
6.5. Variable levies |
2024-12-27 |
Kenya: Ministry of Finance |
Tanzania |
In process |
View |
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Complaint:
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Through, the Tax Laws (Amendment) Act, 2024 of Kenya passed on 11 December 2024 and came into force on 27 December 2024, the Government of Kenya, among other things, introduced excise duty on various products such as marble, transformers, float glass, coal imported from outside Kenya including East African Community countries. Also, has increased the valuation rates in calculating tax on tiles when they are sold in the country. These challenges have affected production due to the decline in the market for the products in Kenya caused by competition after the prices of the products in question became high |
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Progress:
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1.On excise duty charged on originating goods from Tanzania, Kenya was urged to refrain from enacting discriminatory laws that treat EAC originating goods as imports. The RMC was informed by Kenya that, through the Supplementary Legal Notice, excise duty was removed from Glass and Transformer. Kenya provided the supplementary gazette removing the two products.
(b) On valuation rates on tiles from Tanzania and Uganda when they are sold in the country as per the complaint from Tanzania below, entries as evidence on valuation adjustments examined showed adjustments as noted in the Internal KRA Memo on valuation for tiles from Uganda & Tanzania. The meeting noted that valuation of goods is administrative and operational, hence the valuation matter be referred to the Sectoral Committee on Customs for Commissioners (SCOC) to consider and resolve. The EAC guided that Valuation in EAC is guided by Section 122 and Fourth Schedule of the EAC CMA.
The 38th RMC meeting referred the NTB on valuation to SCOC for consideration and resolution and report back to the next RMC |
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NTB-001-225 |
5.3. Export taxes |
2024-12-28 |
Kenya: Malaba |
Uganda |
In process |
View |
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Complaint:
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The Kenyan government has violated the East African Community trade agreement and has begun to impose consumption taxes on products from other East African Community countries. |
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Progress:
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During the 46TH SCTIFI Kenya reported that There are ongoing consultations to resolve this issue in the financial year 2025/26 |
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NTB-001-290 |
2.3. Issues related to the rules of origin |
2025-01-01 |
South Sudan: South Sudan Revenue Authority |
Kenya |
New |
View |
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Complaint:
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Non-recognition of EAC Certificates of Origin: Despite South Sudan’s membership in the East African Community (EAC), goods are taxed as if they originate from outside the region, such as Asia or Europe. The East African Community Customs Management Act (EACCMA) is not fully recognized, even though it provides guidance and reference. Instead, sections of the East African Community Regulation are selectively used for matters related to the Electronic Cargo Tracking device, with the Community service provider enforcing the new tax collection requirements. |
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NTB-001-291 |
1.2. Government monopoly in export/import |
2025-01-01 |
South Sudan: South Sudan Revenue Authority |
Kenya |
New |
View |
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Complaint:
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Double Taxation: Traders are required to pay taxes in both USD at the point of loading and South Sudanese Pounds (SSP) at the entry point. This is contrary to WTO/International Chamber of commerce global trade facilitation norms and other incoterms. It is untenable to calculate taxes using two different currencies. |
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NTB-001-228 |
2.8. Lengthy and costly customs clearance procedures |
2025-01-16 |
Tanzania: Tanzania Revenue Authority
Ministry of Minerals |
Zambia |
New |
View |
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Complaint:
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Tanzania Revenue Authority has introduced a new system for copper imports whereby the Ministry of Minerals must stamp the export permit. Only once this is done can the assessment be completed and the vehicles cross the border (Nakonde/Tunduma) to Tanzania. Once the vehicle is on the Tanzania side, the Ministry of Minerals must stamp the assessment. After the assessment is stamped, it must be scanned to the TRA HQ in Dar es Salaam for approval. The Approval is then scanned back to the border, and the T1 can be generated and the vehicles cleared for movement. This is time-consuming and leads to further congestion at this border post, where containerised cargo to Zambia takes a fortnight to cross between Tunduma and Nakonde. |
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NTB-001-229 |
1.14. Lack of coordination between government institutions |
2025-01-16 |
Madagascar: other |
Tunisia |
New |
View |
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Complaint:
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The Tunisian company "Société des Boissons du Cap Bon" has entered into a partnership with a Madagascan distributor, "4 Seasons", represented by Mrs. Safa Hamdi, for the distribution of its products, in particular juices, soft drinks and cheeses. The Tunisian company agreed to an annual forecast of 12 to 15 containers and in return granted the distributor exclusive rights to distribute its products on the Madagascan market.
The Tunisian company began working with this distributor with a first shipment on March 23, 2024, consisting of a total of four containers: three of juice and one of cheese. Attached are photos of the "Délice" brand products distributed by 4 Seasons in gas stations, supermarkets and traditional markets. Our distributor has also made considerable efforts to promote the products through sponsorship campaigns, urban billboards and a strong digital presence, demonstrating its commitment.
However, the Tunisian company encountered a problem: a company called IBC, which we understand is in the construction business and is neither a distributor nor a juice producer, registered the "Délice" brand in Madagascar under the name "Délice de Fruit" using our logo. It has since contacted the distributor of the Tunisian brand to try to persuade it to work with IBC using its trademark registration.
It should be noted that the "Délide de Fruits" trademark has been registered with the African Intellectual Property Organization (OAPI) since December 2022 and with the National Institute for Standardization and Industrial Property (INNORPI) since 2006, 2019 and 2022 (all documents are attached). |
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NTB-001-249 |
6.5. Variable levies |
2025-02-04 |
Kenya: KRA |
Uganda |
In process |
View |
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Complaint:
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Excise duty being charged on onions, potatoes, potato crisps and potato chips transferred from Uganda to Kenya.
This means they are being treated as imports. This was effective 1st July 2022, at a rate of 25% imposed against the EAC CUP.
Kenya is requested to consider removing the excise duty with immediate effect |
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Progress:
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During the RMC, Uganda submitted that the Law refers to imports, but Kenya is charging Uganda for transfers.
Uganda requested that Kenya to adhere to the definition of imports as per the EAC Laws and stop charging Uganda transfers. The NTB is to be resolved in the financial year 2025/2026. |
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NTB-001-274 |
8.5. Infrastructure (Air, Port, Rail, Road, Border Posts,) |
2025-02-07 |
South Sudan: Nimule |
Uganda |
In process |
View |
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Complaint:
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RSS Charges a USD 40 weighbridge service fee per truck that crosses at Nimule weighbridge station at Jalie, as in the circular attached issued by weighbridge management 2. In the event of having an overload, they negotiate between USD600 and USD2,500 3. Road blocks between Nimule and Juba charge USD100 unreceipted. 4 . Between Juba and Torit, they ask for USD 50 VISA fees We request that South Sudan to immediately remove this NTB |
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Progress:
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The Republic of South Sudan informed the meeting that the weighbridge belongs to a private company, which charges money to recoup its capital investment.
RSS reported that she had reported the same to the Ministry of Transport for resolution.
Partner States noted that they also run investments and are not charged on EAC Citizens. |
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NTB-001-238 |
1.11. Occupational safety and health regulation |
2025-02-16 |
South Africa: Beit Bridge |
Zimbabwe |
New |
View |
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Complaint:
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Our delivery truck (ADS 3378, AFQ 8744, AFQ 8746) destined for South Africa was detained at Beitbridge border post last night by South Africa Port Health authorities due to concerns regarding a cholera outbreak in Zimbabwe and the potential risk of contamination in the water. |
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NTB-001-268 |
6.2. Administrative fees |
2025-03-13 |
Kenya: Busia |
Uganda |
In process |
View |
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Complaint:
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The EAC Simplified certificate of origin is issued to cross-border traders at a fee charged for a photocopy (10 KES) without giving a receipt. This is to request the Regional Monitoring Committee (RMC) to urge Partner States to issue EAC Simplified Certificates of Origin free of charge to small-scale cross-border traders. |
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