Non-Tariff Barriers

Complaint

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.  

Progress update note

1.he 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 )  

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

In process  

Product Description

Motorcycle spare parts manufactured in Kenya with the certificates of origin

Computer-assisted translation

• English
• Arabic
• French
• Portuguese

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Total value

0  

Date reported

2023-07-05 12:51  

Modified

2023-08-04 11:10