Non-Tariff Barriers

Complaint

Complaint number

NTB-001-137  

NTB Type

1.7. Discriminatory or flawed government procurement policies  

Complaint

Rwanda has introduced higher excise duties on confectioneries transferred from Kenya to Rwanda thus making the products uncompetitive. We request Rwanda to waive these higher excise duties on confectioneries from Kenya

The Rwanda new excise tax is vide Rwanda Official and special gazette of 14/09/2023 under article 4: products and corresponding rates section 2 at FRW 322/kg to confectionary and Chocolate at FRW 1930/KG and other products. This will greatly increase the tax burden on confectionery and discourage Kenya trans-fer/export to Rwanda.  

Status note

Rwanda advised that " According to Article 1 of the Law nº 050/2023 of 05/09/2023 establishing the excise duty, which provides that “This Law establishes the excise duty levied on some of the imported products and products manufactured in Rwanda”. It is clear that provision of Article 4 applies to Rwandan manufactured products and foreign manufactured products equally. Therefore, is no issue of discrimination.
On the other hand, this claim related to confectioneries is not an NTB because a non-tariff barrier is any measure, other than a customs tariff, that acts as a barrier to international trade. This issue is related to fees paid by manufacturers of confectioneries be they manufactured in Rwanda or in Kenya. Therefore, this claim of NTB should be withdrawn"  

Progress update note

1. In November 2023, Rwanda Focal Point reported that they were consulting relevant institutions on this specific case, and would provide feedback soon
2. On 20 March 2024, Rwanda Focal Point provided following feedback :
According to Article 1 of the Law nº 050/2023 of 05/09/2023 establishing the excise duty, which provides that “This Law establishes the excise duty levied on some of the imported products and products manufactured in Rwanda”. It is clear that provision of Article 4 applies to Rwandan manufactured products and foreign manufactured products equally. Therefore, is no issue of discrimination.
On the other hand, this claim related to confectionaries is not an NTB because a non-tariff barrier is any measure, other than a customs tariff, that acts as a barrier to international trade. This issue is related to fees paid by manufacturers of confectioneries be they manufactured in Rwanda or in Kenya. Therefore, this claim of NTB should be withdrawn  

Policy or regulatory NTB

No 

Location

Rwanda: Rwanda Revenue Authority (Government institution)  

Reporting Country or Region

Kenya  

Country specific trade issue

No  

Date of incident

2023-09-04  

Status

Resolved  

Date of resolution

2024-03-20  

Product Description

Confectionary/Chocolate

Computer-assisted translation

• English
• Arabic
• French
• Portuguese

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Total value

0  

Date reported

2023-11-03 15:35  

Modified

2024-04-29 13:04