Issue 01: Undertake Comprehensive Review of the EAC Common External Tariff (CET).
Challenge: The process to review the EAC CET has taken a long time as Partner States failed to agree on the maximum rate of either 30% or 35%. Tanzania and Uganda support 35% while Burundi, and Rwanda are pushing for 30%. Kenya is still undertaking national consultations.
Members Affected: Manufacturers, Importers and Agricultural sector.
EABC Secretariat organized a regional consultative meeting on EAC CET in Nairobi on the 22nd August 2019 to develop a private sector position. The Meeting came up with the following: • Private Sector stakeholders from EAC region unanimously proposed a shift from a 3-band tariff structure to a 4-band tariff structure of 0%, 10% 25% and a rate above 25% as maximum rate;
On the Maximum CET Rate above 25%, Private Sector stakeholders from Uganda, Tanzania, and Kenya proposed a Maximum CET Rate of 35% while Burundi, Rwanda and South Sudan proposed 30% as Maximum CET Rate.
The EAC SCTIFI held its 36th Extra Ordinary Meeting on 9 th -13 Sept 2019 to discuss among other things, CET Review and Persistent NTBs.
EABC was invited to a make presentation on EAC-CET Structure on Permanent/Principal Secretaries Retreat Session on 10th September 2019.
The key outcomes of the ExSCTIFI were: in line with EABC the private Sector Consultative Meeting, the Permanent/Principal Secretaries of SCTIFI adopted the four-band structure of 0%, 10%, 25% and above 25% as maximum rate.
On the rate above 25% as Maximum rate agreed, the Regional Task Force will determine products that will fall under upper limit as well as those that fall under the maximum rate of 30% or 35%.
From 28th Jan to 1 st February 2020, the Regional Task Force (RTF) met in Zanzibar and failed to agree on the Maximum rate being either 30% or 35%.
EABC has submitted a proposal of 32.50% as a maximum to EAC Partner States for consultations.