Complaint

Complaint number
NTB-001-206  
NTB Type
2.7. International taxes and charges levied on imports and other tariff measures  
Complaint
Kenya granted a lower tariff rate of 25% on alcohol imports from the United Kingdom under their Economic Partnership Agreement (EPA), a move that contravenes the spirit of the East African Community (EAC) and the Common External Tariff (CET) framework. The CET for alcohol within the EAC region is set at 35%, and this preferential treatment for UK imports creates a significant inconsistency in the application of regional trade policies.
This action undermines the principles of the EAC Customs Union, which promotes uniformity in tariff application to enhance regional integration and fair trade among partner states. The granting of preferential tariffs to non-EAC countries could distort competition and negatively impact regional businesses, highlighting the need for adherence to the established CET structure within the EAC.
It is crucial for this issue to be addressed to uphold the integrity of the EAC trade framework and ensure equal treatment for all partner states in line with the objectives of the community.  
Progress update note
On 20 October 2024, the EAC NTB Unit reported that the meeting noted that while it was true that Kenya signed an EPA with the EU. The Partner State was yet to commence trade under that agreement. The meeting was informed that there are modalities under which such goods shall be treated once they are imported into the Community and hence it shall become an NTB once trade starts and affects East African Partner States. There is no proof of an NTB as yet.  
Policy or regulatory NTB
No 
Location
Kenya: Kenya Revenue Authority (Government institution)  
Reporting Country or Region
Uganda  
Country specific trade issue
No  
Date of incident
2024-08-31  
Status
New  
Product Description
Alcohol


 
Total value
0  
Date reported
2024-10-15 16:14  
Modified
2024-10-19 17:45  

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