English
FrançaisComplaint
- Complaint number
- NTB-001-124
- NTB Type
- 2.3. Issues related to the rules of origin
- Complaint
-
URT denial of preferential Treatment to Motorcycle Accessories exported to TZ by Silverline Accessories LTD in Kenya. URT is charging full CET despite the exported spares having the EAC Certificate of origin confirming that the spares have been manufactured in Kenya and qualify for the EAC preferential treatment. In addition, URT have declined to respond to interventions by the Kenya Revenue Authority and the EAC Secretariat.
We request URT to grant preferential treatment to Motorcycle Accessories exported by Silverline LTD in Kenya and incase URT have any doubts on the origin they should facilitate delivery of the goods and follow the ROO/protocal/EACCMA procedures to verify & ascertain their concerns. - Status note
- The 45th SCTIFI meeting noted that a verification was undertaken whereby the headlamps, tail lamps, and indicators qualified for preferential treatment and are being granted preferential treatment in the United Republic of Tanzania as directed by the 44th SCTIFI. The side mirrors however that had not qualified in the first verification also qualified for preferential tariff treatment under Rule 4(1) (b) of the EAC Rules of Origin, 2015, since they met both criteria i.e. material content and Change in Tariff Heading (CTH) after a second verification.
- Progress update note
-
1.The Sectoral Committee on Trade noted that the rules of origin 2015 provide for execution of a Customs Security pending verification and confirmation of origin. The meeting therefore agreed that the United Republic of Tanzania will grant preferential tariff Treatment to Motorcycle Accessories exported to TZ by Kenya pending joint verification exercise by both Partner States.The meeting was informed that the verification was not conducted as planned in November 2023 meanwhile the Republic of Kenya is being granted preferential market access upon execution of a customs bond by the United Republic of Tanzania while verification is awaited.
2. The Republic of Kenya submitted two entries; one from 2023 where motorcycle mirror covers were granted preferential treatment and the one for 2024 where the same item was not granted preferential treatment.
The two Partner States agreed to meet bilaterally before the end of this SCTIFI meeting to deliberate on the evidence submitted.
3. The meeting reminded Partner States that all complaints related to Rules of Origin should first be considered by the RoO experts before capturing them as NTBs in EAC Time Bound Programme. Partner States NMC coordinators should also communicate frequently to resolve any issues related to NTBs timely.
The 43rd Sectoral Council on Trade Industry Finance and Investment directed the Republic of Kenya and the United Republic of Tanzania to undertake a joint verification on motorcycle accessories transferred from Kenya to Tanzania by 30th June, 2024 and report to the 45th SCTIFI (EAC / SCTIFI / 43 / 2024 / Directive 40 )
4.A verification took place from 18th to 22nd March 2024 and the Report of the verification was considered by the Committee on Customs meeting of 25th April 2024 and made the following recommendations: (a) urge Partner States to continue facilitating transfers and the clearance of originating goods. (b) that headlamps produced by Silverline Accessories Limited qualify for preferential tariff treatment under Rule 4(1) (b) of the EAC Rules of Origin, 2015. (c) that tail lamps produced by Silverline Accessories Limited qualify for preferential tariff treatment under Rule 4(1) (b) of the EAC Rules of Origin, 2015. (d) that indicators produced by Silverline Accessories Limited qualify for preferential tariff treatment under Rule 4(1) (b) of the EAC Rules of Origin, 2015. (e) direct the team of experts from all Partner States to undertake a verification mission to ascertain the originating status of the side mirrors for the motorcycles manufactured in Kenya
5. The 45th meeting of SCTIFI noted that verification was undertaken whereby the headlamps, tail lamps, and indicators qualified for preferential treatment and are being granted preferential treatment in the United Republic of Tanzania as directed by the 44th SCTIFI. The side mirrors however that had not qualified in the first verification also qualified for preferential tariff treatment under Rule 4(1) (b) of the EAC Rules of Origin, 2015, since they met both criteria i.e. material content and Change in Tariff Heading (CTH) after a second verification. - Policy or regulatory NTB
- No
- Location
- Tanzania: Namanga (Border post)
- Reporting Country or Region
- Kenya
- Country specific trade issue
- No
- Date of incident
- 2023-05-01
- Status
- Resolved
- Date of resolution
- 2024-11-23
- Product Description
-
Motorcycle spare parts manufactured in Kenya with the certificates of origin
- Total value
- 0
- Date reported
- 2023-07-05 12:51
- Modified
- 2024-11-23 13:52
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