English
FrançaisComplaint
- Complaint number
- NTB-001-204
- NTB Type
- 2.9. Issues related to transit fees
- Complaint
-
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.
- Progress update note
-
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. - Policy or regulatory NTB
- No
- Location
- Rwanda: Gatuna (Border post)
- Reporting Country or Region
- Uganda
- Country specific trade issue
- No
- Date of incident
- 2024-10-01
- Status
- In process
- Product Description
-
Road User Charges
- Total value
- 0
- Date reported
- 2024-10-15 09:12
- Modified
- 2024-10-19 18:03
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