Professional Documents
Culture Documents
STATUS OF ELIMINATION OF
NON TARIFF BARRIERS
IN THE EAST AFRICAN COMMUNITY
as of September 2015
www.eac.int
EAC SECRETARIAT
ARUSHA, TANZANIA
EAST AFRICAN COMMUNITY
STATUS OF ELIMINATION OF
NON TARIFF BARRIERS
IN THE EAST AFRICAN COMMUNITY
as of September 2015
EAC Secretariat
Arusha, Tanzania,
September, 2015
www.eac.int
EAC SECRETARIAT
ARUSHA, TANZANIA
SEPTEMBER, 2015
Contents
07 Foreword
09 Glossary
5
“
I note with appreciation that the EAC NTBs Act 2015 is
undergoing assent by the EAC Heads of State. Once the Act
becomes operational I have no doubt that this will be FOREword
landmark milestone on redressing NTBs which have
continued to hinder free flow of trade in the region.
I
take this opportunity to present to the readers and especially the policy makers of EAC Partner States the 9th
publication on the status of elimination of Non Tariff Barriers (NTBs) within EAC region as of the close of
September, 2015.
The publication highlights what EAC has achieved in redressing NTBs in the first quarter of the financial 2015/2016.
The publication is aimed at galvanizing more support for the removal of NTBs which continue to hinder full
achievement of the objectives of the EAC Customs Union and Common Market. In a nutshell the publication shows
that 87 NTBs were cumulatively resolved, 18 reported as unresolved while 13 were reported as new in September,
2015 as reflected in the EAC Time Bound Programme (TBP) on the elimination of identified NTBs. On the unresolved
NTBs, the EAC TBP recommends how and timeframes of resolving them.
I note with a lot of concerns that most of the new reported NTBs during the 18th Regional Forum were on lack of
conferring origin for goods originating from Partner States. There are laid down procedures on how to treat this
category of goods under the EAC Customs Management Act (CMA) 2004. I urge the Partner States to allow such goods
in their markets under execution of a bond while awaiting for undertaking of verification missions in accordance with
EAC Rules of Origin Manual to ascertain their origin.
I also note with appreciation that the EAC NTBs Act 2015 is undergoing assent by the EAC Heads of State. Once
the Act becomes operational I have no doubt that this will be landmark milestone on redressing NTBs which have
continued to hinder free flow of trade in the region.
I commend the good work being done by the National Monitoring Committees, the EAC Regional Forum on NTBs
and the National Implementation Committees on Common Market in championing the elimination of NTBs. It is my
expectation that the National Monitoring Committees on NTBs and the National Implementation Committees on the
EAC Common Market will build synergies in pursuit of elimination of NTBs hindering Intra-EAC trade.
The biggest challenge of our time now is for the Partner States to eliminate the NTBs in accordance with the agreed
EAC Time Bound Programme. To enhance the process of elimination of NTBs, I call upon Partner States to continue
holding bilateral meetings and establish Border Management Committees in pursuit of redressing NTBs in the EAC
TBP.
I finally commend the Development Partners specifically Trademark East Africa and Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) for their dedicated support in the elimination of NTBs. It is my hope that this
partnership will continue to grow stronger in future.
EWURA Energy, Water and Utilities Regulation TBP Time Bound Programme
Authority
TBT Technical Barriers to Trade
FTA Free Trade Area
TCD Time, Cost and Distance
GVW Gross Vehicle Weight
TCD Model Time Cost Distance model
KEBS Kenya Bureau of Standards
TCCIA Tanzania Chambers of Commerce,
KEPHIS Kenya Plant Health Inspectorate Industry and Agriculture
Services
TCM Transport, Communications and
KNNCI Kenya National Chamber of Commerce Metrology
and Industry
TCCIA Tanzania Chambers of Commerce,
KRA Kenya Revenue Authority Industry and Agriculture
MITC Ministry of Industry, Trade and UNCTAD United Nations Congress on Trade and
Cooperatives Development
NCTTA Northern Corridor Transit and Transport UNECAP United Nations Economic and Social
Agreement Commission for Asia and the Pacific
PCCB Prevention and Combating of Corruption VLC ACT Vehicle Load Control Act
Bureau
and
-3.0 %
The NMC with support of TMEA embarked on the process of designing,
2.1: Republic of Burundi benchmarking, developing and commissioning of an SMS based NTBs
Reporting System to intensify the efforts to eliminate NTBs. Kenya
The Republic of Burundi reported that during April – September, 2015, she did received terms of reference from the United Republic of Tanzania and the
not undertake many NTBs elimination activities because TMEA had temporarily Republic of Burundi in pursuit of enriching the capacity to roll out an
stopped facilitation of Burundi NMC activities. intelligent SMS based NTBs Reporting System. The system is expected to
be in place by 30th June, 2016. The value of intra-EAC trade
However the following activities were still undertaken: declined by 3.0% from US$
5,805.6 million in 2013
(a) In April 2015, the NMC followed up on the registration of Burundi (b) Inter-Counties Forum to US$ 5,632.9 million in
beers by Tanzania Food and Drug Authority and finally Brarudi 2014.
company received a certificate of registration; Border Inter-Counties Forums on Harmonization of Laws, Rules and
Regulations on Regional and Cross Border Trade were held in Mombasa, The decline was driven by
(b) The NMC made a follow up on the issue of EAC Preferential Tariff Kisumu and Bungoma in April, 2015. The main objective of the forums the decrease in the value of
Br Ke Rw Tz Ug
Treatment on Kaluworks Products from Kenya. The NTB was resolved 4.6% 5.3% 7.0% 7.0% 4.8% was to dialogue with counties to formulate a common strategy to combat exports that went down by
and Kaluworks products now enjoy EAC Preferential Tariff Treatment; and eliminate NTBs. The forums recommended that levies charged on 12.7%.
transit tracks by counties be abolished.
EAC Gross Domestic
(c) In partnership with EAC Ministry, the NMC organized a Sensitization Product (GDP) growth rate
Kenya, Tanzania and
Workshop on EAC Integration in Makamba Province (Tanzania Border). for the year 2014
Uganda recorded an
Elimination of NTBs at national and regional level were deliberated (c) Forum for security agencies
(e) NMC preparatory meeting in preparation of the 18th EAC regional forum
on NTBS
The NMC held a meeting on 17th September, 2015 to prepare for the
18th Regional Forum. Among other issues, the preparatory meeting
deliberated on emerging NTBs and updated the Matrix. The meeting
recommended that the regional Forum should strive to resolve the long
outstanding NTBs.
The NMC reported that it undertook the following activities for the period under review: The United Republic of Tanzania reported that her NMC (d) Study on Impact Assessment for selected priority
undertook the following activities for the period under NTBs
(a) The study on “National benefits from reducing time and costs to trade in Rwanda” was finalized. The study review:
sought to quantify the direct economic benefits to the Rwandan economy of reducing time and costs to trade. The United Republic of Tanzania with financial assistance
The proposed methodology used in the study would help the NMC to quantify the impact of removed and (a) National Monitoring Committee (NMC) meetings from TMEA was undertaking a study to assess the impact
outstanding NTBs in the future. of selected NTBs on trade. A consultant had been engaged
Two NMC meetings were held on 12th May and 11th Au- and the inception report had been submitted to the Minis-
gust, 2015. The objectives of the meetings were to: try of Industry and Trade for consideration.
(b) NMC members participated in the quarterly breakfast meeting between Private Sector Federation and the
Ministry of East Africa Community Affairs on 23rd April 2015. During the meeting, a presentation was made (i) Deliberate on NTBs;
by the NMC coordinator on the Status of Current NTBs along the central corridor. (e) Production of Publicity Materials on NTBs
(ii) receive updates from the NMC Members on NTBs
that fall under their Institutions; and The Ministry of Industry and Trade with the support of
(c) The Ministry of East African Community organized early in June 2015, a Fact finding mission on police check TMEA produced promotional materials to enhance aware-
points between Rusumo-Kigali and Rugende stop to help understand the issues raised by the private sector. (iii) receive new NTBs and updating the EAC Time ness on NTBs and the existing mechanisms of reporting
NMC members were part of the team and findings were presented to various stakeholders. Bound Programme on the elimination of NTBs. and elimination. About 12500 materials were produced
and distribution to various stakeholders and business com-
Another meeting was held on 18th September, 2015 in munity was ongoing.
(d) On 13th August 2015, an NMC meeting was held and it deliberated on the following items: the preparation for the 18th EAC Regional NTBs Forum. In
addition, The NMC considered the following activities:
(i) The NMC work plan and the M&E plan 2015-2016; (f) Private Sector Stakeholders dialogue on pending
NTBs
(ii) NTBs presented at MINEAC-PSF breakfast meeting (b) NTBs Surveillance in Central Corridor
The Tanzania Chamber of Commerce Industry and
(iii) Presentation of identified NTBs for the proposed bilateral meeting between Rwanda and Tanzania; The United Republic of Tanzania with financial support Agriculture (TCCIA) and the NTBs Private Sector Focal
and from Trademark East Africa (TMEA), conducted the third Point, with funding from TMEA,organized a Dialogue for
surveillance mission in the Central Corridor from 4th to Private Sectors on the pending NTBs. The outcome of the
(iv) Review NMC Membership composition. 17th May, 2015. The surveillance mission was conducted dialogue was the Private sector’s position for every NTB.
covertly by three members of the NMC boarding into tran- The positions have been used to strengthen advocacy
sit cargo trucks disguising as helpers to the truck drivers campaigns on reducing the cost of doing business in the
(e) On 9th September 2015, a delegation composed of the Ministry of East African Comunity and the NMC from Dar es Salaam Port to Kigali. The purpose was to find country.
coordinator visited Gatuna border post to engage with Rwanda border committee and deliberate on the out any progress that has been made along the corridor
progress on issues pertaining to cross border trade. The field mission objectives were to: since the last surveillance.
(g) Training of exporters on Electronic Certificate of
(i) assess the progress in the implementation of use of ID card at Gatuna border post and challenges for The mission generally confirmed the earlier documented Origin in Mtwara and Lindi
business people and other travelers; complaints that foreign registered truck drivers are not
experiencing NTBs previously reported by Tanzanian The electronic certificate of origin system is aimed at re-
(ii) evaluate the implementation of the single customs territory and identify associated challenges; and registered truck drivers of being subjected to rent seek- ducing the cost of doing business to exporters by simplify-
ing practices by some public officials operating along the ing the issuance of Certificates of Origin for the products
(iii) Identify other cross border trade issues and NTBs linked to Gatuna border crossing point. central corridor. from the United Republic of Tanzania.
(f) An NMC meeting was organized on 17th September 2015 in preparation of the 18th EAC regional forum on (c) Development of the National NTB Strategy
NTBs which considered the following: (h) Sensitization seminar by the Tanzania Food and
The United Republic of Tanzania with financial assistance Drug Authority (TFDA)
(i) NTBs in the EAC Time Bound Programme and reporting of new NTBs; from TMEA, hired a consultant to develop a National
Strategy that aims to address identified NTBs and ensure A Sensitization seminar was carried out in the EAC Partner
(ii) Presentation and discussion of EAC Bill on elimination of NTBs 2015; and eliminated NTBs do not re-emerge. The first draft of the states on TFDA activities and interplay between standards
strategy was presented to Stakeholders and circulated and technical regulations.
(iii) Presentation and discussion of NTBs study on Benefits to the Rwandan economy for reducing time NMC for comments. It is envisaged that the Strategy will
and costs to trade. be launched in the last quarter of 2015.
The Republic of Uganda reported that her NMC undertook (iii) Uganda now accords preferential tariff
the following activities under the period under review: treatment to rice imported from Tanzania
provided the importer presents a valid
EAC certificate of origin.
(a) The National Response Strategy on Elimination of
Non-Tariff Barriers Project
The National Response Strategy on Elimination of NTBs (iv) Alleged arbitrary delays on imports by
project which was to wind up in April 2015 was extended Tanzania Distillers Limited. Uganda
in order to finalize the implementation of the Communica- requested for evidence on this alleged
tions Strategy. During the period under review, the Project NTB.
concentrated on the development of the communications
materials namely,radio, TV and documentary. The procure-
ment process for media houses is currently ongoing.
(c) Sensitization programmes undertaken
Railway
Development Motor Salt
Levy Vehicles Exports
Work Permits
Plastics Single
Delays in issuance of work permits
for Burundian Officers posted at
Stripping Customs Juice
Dar es Salaam port under EAC Products Territory Exports
Single Customs Territory.
Plastics Stripping products URT has posted a few Exports of juices
exported to United personnel at the Port produced by Delmote
Evidence was provided Republic of Tanzania are of Mombasa which is company in Kenya
not accorded preferential affecting clearance of are not accorded
treatment by United imports and exports preferential treatment in
Republic of Tanzania. under the EAC Single Rwanda.
Customs Territory.
SCT SCT
Cement Documents Staff
Savannah cement Single Customs Territory Tanzanian Government
produced in Kenya is not officials posted in Kenya
(SCT) documents
accorded preferential under SCT were only 3
processing in Tanzania instead of 11 as agreed hence
treatment while exported were taking up to 10 causing delays of exports and
in Uganda. days to be cleared. payment of waiting charges
exporters thence, increasing
costs to business.
I II III
Provision of Review of SCT Implementation
Documentary Evidence Evidence Provided Structure
1. Lack of All EAC Partner Statutory Time wasted Need to Insufficient The Ministers 2. Existence of Rwanda, Uganda, Tanzania Time lost at Reduction Political The Ministers
coordination States agencies invest in financial decided that: several and Burundi the stations of the goodwill decided that
among the One-Stop- resources for weighbridge leading stations to from the the weigh-
i. collaboration
numerous Centres and investment stations in the to loss of two. one at Govern- bridges be
among the
institutions electronic in buildings, regulatory
central corridor business as the port of ment. reduced to
involved in single facilities and agencies be goods do entry and two, one at
testing goods window IT system/ enhanced; not reach the other at the point of
systems at equipment. their the port of entry and
border ii. agencies op- destination exit. other the port
stations. erate under in time of exit.
Reported in 2009 one stop post
Success Fac- as is current- Tanzania
tor ly being done reported that
between
she had intro-
Proposal by Ke- Kenya and
Uganda;
duced three
nya to amend stop inspec-
description of Collaboration tion centres
NTB: of all institu- iii. agencies (Vigwanza,
collaborate at
tions into the national Manyoni and
fast-tracking borders with Nyakanazi).
the proce- a view to One Stop In-
Lack of proper dures under fast tracking
coordination spection Sta-
the same clearance
tions (OSISs)
among border roof. of goods at
agencies in clear- border entry including
June, 2016
weighbridge
June, 2016
ance of goods points; and
to be con-
iv. Mutual structed at
recognition Vigwaza,
of certificates Manyoni and
issued by Nyakanazi.
agencies is Vigwaza
ongoing.
weighbridge
Construction for transit
of one border cargo is com-
posts in the plete and
Partner States operational.
will address the Manyoni and
NTB. Nyakanazi
under design
of construc- to be com-
tion of OBSPs pleted by June
is covered 2015.
under chapter
seven of this
report.
June, 2016
nized. community address this
of livestock markets. procedures, products No. 69 to Delays and NTB.
development inspection from EAC address the extra cost to
and Agricul- reports and Partner issues of the doing busi-
Reported ture certificates States due to BSE disease
in 1996 ness
fear of loss o by December
November, 2015
30th, 2012.
markets
6. Non-harmonized All Partner States Ministries of Additional Harmoniza- EAC, in col-
road user charges Transport and cost to do- tion the road laboration
A bilateral / road tolls Infrastructure ing business user charges with SADC
Success Factor meeting was /road toll and COMESA,
process is working on
June, 2016
held on 29th –
Political 30th October, a model for
goodwill to 2015 between harmonizing
recognize Kenya and the principles
EAC as a Uganda. The for road user
single next bilateral charges
market area is expected
to resolve the
NTB. 7. Cigarettes Kenya Tanzania Loss of Abolition Resistance During the
4. Charges of plant Burundi Kenya Plant Adds to cost Abolish Resistance The ministers manufactured in business of the from the 29th meeting
import permit Health of doing charges and from issuing decided that Kenya exported requirement private sector. of the Coun-
(PIP) at Malaba Services business. reorganiza- authority Partner States to Tanzania cil, Tanzania
for tea destined (KEPHIS) tion of the should recog- required to have undertook to
nize certificates a local 75% repeal the law
for auction at SPS certifi-
issued by ac- tobacco governing the
Mombasa cate . credited institu-
Burundi- 75% local to-
tions of other
Process on- bacco content
Partner States.
going by June, 2015.
EAC SPS Proto- Refer latest
col was signed council deci-
in July 2013 and sion.
Kenya- In once ratified by
July, 2016
progress Partner States it Tanzania re-
June, 2016
8. Tanzania Food Kenya, Burundi TFDA Loss of Abolition The 18th meeting 9. Re-introduction Tanzania Kajiado and Adds to cost Abolition Abolition of
of the East African
and Drugs market of the Standards Com-
of county transit Kwale counties of doing of county county transit
Authority requirement mittee held on Fee in Kenya business transit fee Fee.
June, 2016
June 2015.
Ltd through
The 18th meeting the Ministry
of the EAC regional
forum on NTBs of EAC Ke-
recommended that: nya.
November, 2015
i. EAC Secretar- The meeting
iat to facilitate
composition of recommend-
the technical ed that Ke-
expert team nya submits
of food safety
regulations to the required
review of the documents
EAC Partner by 15th April,
States food
safety systems 2015 to en-
and come up able the
with the recom- committee to
mendations to
be undertaken finalize.
in order to
facilitate rec-
ognition of test
certificates
11. Numerous All Partner States Various Harmoniza- The SCTIFI 13. Tanzania is Burundi Tanzania Adds to Abolition of Burundi pro-
monetary charges Partner State tion of the urged Part- charging USD Ministry of the cost the charge vided evidence
required by Agencies charges ner States 200 as transit fee Health of doing during the 16th
various agencies to forward for containers business EAC Regional
December, 2015
charges on Forum n NTBs.
in the United with chemical
dairy products
Republic of to the EAC products Tanzania
Tanzania on Secretariat in undertook to
exports of dairy order to work report progress
products modalities to on elimination
harmonize during the next
them. meeting.
The Secretariat
December, 2015
informed the
14. Rwandan Rwanda URT Adds to cost Harmoniza- Tanzania
meeting that
the Republic
Transporters of doing tion of tran- reported that
of Kenya, pays 300USD per business sit charges the charges
December, 2015
Burundi, truck as a had been
Rwanda and national park fee. harmonized
Tanzania who and all trans-
had submitted porters pay
their charges. $40 national
park fees.
The meeting
recommended
Uganda sub-
mits by 30th 15. Charge of Rwanda Uganda Adds to the Adherence Uganda and
October 2015 “export tax” of cost of do- to the EAC Rwanda un-
to enable the 0.2 % of raw ing business Preferential dertook to
December, 2015
Secretariat to materials Tariff hold a bilat-
undertake the exported from Treatment eral meeting
harmonization
Uganda by and report
exercise.
Rwanda Premier back dur-
12. Charging of Kenya Uganda Loss of According Political Kenya provid- Tobacco ing the next
25% duty rate business EAC goodwill ed evidence Company Ltd meeting.
on products preferential including
manufactured by treatment to the name of
the company
Vayas Kenya Ltd the products. 16. Mamimou Rwanda Ministry of Adds to cost Abolition Evidence was
during the
in using glucose meeting. Charcoal Export Environment of doing of transit provided.
imported under Ltd based in Kenya business. charges
EAC duty Uganda re- Kigali is charged Kenya un-
November, 2015
November, 2015
the NTB re- evidence and
solved because to Dubai via report back in
the 25% duty Mombasa Port. the next meet-
is a tariff. ing.
17. RRA was not Tanzania Rwanda Loss of According Political During the
according business EAC goodwill meeting
preferential preferential Tanzania
treatment to treatment provided
G&B Soap documentary
Industries (Ltd) evidence.
December, 2015
Rwanda
undertook
to study the
evidence and
report back
during the
next meeting
18. Kenya was Uganda Kenya Loss of Open Political Kenya and
restricting Cable business tendering goodwill Uganda un-
Corporation opportuni- process dertook to
December, 2015
(Uganda) Ltd ties hold a bilat-
from its eral meeting
tendering and report
processes for the back dur-
supply of electric ing the next
cable products. meeting.
The following NTBs have been resolved since 2009: 28. Lack of simplified certificates of origin issued 44. Kenya had issued new immigration
by Tanzania; regulations whereby work permits would
1. Tanzania requirement of cash bonds for 14.
Kenyan ban on one day old chicks from not be issued to other nationalities below
transportation of sugar to Rwanda; Uganda; 29. Non-implementation of EAC harmonised the age of thirty five years and earning not
documents by all Partner States; less than K.shs168, 000 per month;
2. Burundi charges entry fee for vehicles from 15. Cumbersome testing procedures for food
other Partner States; exports and imports into Tanzania; 30.
Non-implementation of EAC harmonized 45. Restriction of employment by Non-
documents; Governmental Organizations to Ugandans
3. Varying application of axle load specifications 16. Partner States not using green, yellow, red only which is affecting Tanzanians;
applied by all Partner States; channels while clearing goods; 31. Visa charges of US$ 250 for businessmen
entering Tanzania from other Partner States; 46. Charges by Container Freight Stations
4. Imposition of visa fee to Burundians entering 17. EAC Standards Bureaus had varying proce varied from port charges at the port of
United Republic of Tanzania; dures for issuance of certification marks, 32. Re-introduction by Kenya of a cash bond on Mombasa which was affecting imports to
inspection and testing; vehicles above 2000 cc and sugar transiting Uganda, Burundi and Rwanda;
5. Delays at the Ports of Mombasa & Dar es from Mombasa to Uganda;
Salaam, which affect imports and exports 18. Non-recognition of EAC Rules & Certificates 47. Congestion at the port of Dar Es Salaam
through the ports; of Origin by all Partner States; 33. Delays in issuing bonds at Kenya border with which affected Burundi, Rwanda and
Uganda tea meant for auction in Mombasa; Uganda;
6. Restriction of Konyagi exports from Tanzania 19. Charge of 1.5% dairy levy by Uganda for im
into Kenyan market; ports from Kenya; 34. Non recognition of EAC certificate of 48. Payment of double handling charges at the
origin by TRA for furniture products ICDs and at the Dar Es Salaam port
7. Lack of preferential treatment on galvanized 20.
Charge of 1.5 % diary levy on exports of dairy manufactured in Kenya;
sheets exported to Rwanda by Kenya; products from Kenya by [which partner 49. Inadequate Police Escort mechanism for
state) 35. Tanzania had re-imposed a visa charge of trucks ferrying goods in all Partner States;
8. Requirement for certificates of analysis for between U.S$ 200-250 on Ugandan
goods destined for export to Rwanda and 21. Uganda’s certification procedures on exports business persons travelling to Tanzania; 50. Controlled movements of Cargo Trucks
Burundi from Tanzania, Uganda and Kenya; of milk from Kenya; between Isaka / Rusumo and Isaka /
36. Requirement for original documentation at Kabanga were not allowed to move beyond
9. Levying of extra charges on Kenya 22. Delays in Releasing of cargo manifest by all the port of Mombasa and Dar es Salaam for 18:00hrs within Tanzania going to Burundi,
pharmaceutical firms exporting to Tanzania; Partner States; clearance of goods destined to Burundi; Rwanda and Uganda;
10. Requirement of TISCAN inspection 23. Reduction of grace period for transit cargo 37.
Kenya Import levy of Kshs 2 per Kg on 51. Harassment of informal businessmen from
procedure that requires documents to be at Dar port from 30 to 14 days which affects Agricultural Products from Tanzania; United Republic of Tanzania by Kenyan
transmitted to South Africa and cleared all Partner States; Immigration Officials at Namanga Border;
there for each lot in Tanzania for exports 38. Exports of plastic products from Kenya were
from Kenya; 24. Requirement that that exporters of Herbal subjected to 10% and 25% CET rate; 52. Prohibitions of imports of food products
products to Tanzania from Uganda must from Burundi to Rwanda;
11. Requirement of road consignment note from declare formulae; 39. Tourist vans from Kenya were not allowed
transporters even before the goods have entry to Tanzania; 53. Kenya Revenue Authority at Taveta Border
been parked; 25. Delays at Malaba border for trucks driving to required certificates of Origin from Tanzania
Uganda; 40. Lack of interface within the customs’ to have serial numbers;
12. Requirement for executing bonds for import systems in the Revenue Authorities in
taxes before being issued with stamps for 26. Kenya had introduced Cash Bond on used Partner States; 54. Uganda restricted export of mosquito nets
excise duty purposes in Tanzania for imports clothes and shoes / other items considered produced by A to Z Mills Company in Arusha;
for Kenya; of high value imported by Uganda through 41. Requirement for OTS (Open Tender System)
port of Mombasa; for bulk Fuel Procurement System to Burundi 55. Rice, small fish and palm oil from Burundi
13. Holding, retesting milk and milk products at port of Mombasa; were denied entry to Rwanda;
bearing quality marks and imposition of 27. Kenyan trucks entering Tanzania were
import quotas; charged a levy of US$ 200; 42. Imposition of 75% CET duty or $200 per 56. Tanzania did not accept copies of bill of
metric ton by Uganda on rice wholly landing while clearing cargo at Sirare border;
produced in Kenya;
57. Kenya notified clearing agents that there
43. Cut-flower from Tanzania for re-exports to would be no further extension of customs
Europe and Russia blocked by Kenya warehousing;
38 Status of Elimination of NTBs as of September 2015 | Vol 9 39
7.0: STATUS OF CONSTRUCTION OF
ONE STOP BORDER POSTS (OBSPs) IN THE
58. Kenya delayed inspection of export goods to 73. Uganda registered insurance companies
Tanzania at factory level; were not recognized in Kenya; EAC REGION
59. United Republic of Tanzania had restricted 74. Requirement Kenya for a single bond in the
imports of beer from Burundi; single customs territory; The construction of One Stop Border Posts (OSBPs) The International Office for Migration (IOM) and
in EAC region is implemented by Development United States Agency for International Development
60. Requirement by the Kenya Revenue 75. Lengthy, restrictive and unclear Partners in close collaboration with Partner States (USAID) are also involved in promoting the OSBP
Authority that tea from Uganda destined administrative procedures of licensing and EAC Secretariat. projects by supporting the soft infrastructure
for Mombasa auction market should be Ugandan owned container freight stations/ aspects.
stored at 3 selected Customs Transit warehouses at the Port of Mombasa; The construction and operationalization of OSBPs in
Go-down in Mombasa EAC Partner States is anticipated to eliminate some Seven (7) OSBPs construction projects are fully
76. Delays by KRA in posting online clearance of of the NTBs in the region. There are fifteen OSBP completed, though only three (3) are officially
61. Kenya required Uganda imports of oil to be goods destined to Tanzania; projects at various levels of construction at internal operational under bilateral arrangements between
transported through rail and by road to have borders supported by the following Development Partner States.
bond guaranteed by bank; 77. Re-introduction of yellow fever requirement Partners:
at Namanga border and Kilimanjaro Four (4) OSBPs are not operational because of lack
62. A requirement that Cigarettes exported to International Airport; i. Trade Mark East Africa (TMEA); of operational legal framework though the EAC
Uganda from Kenya had to have a local OSBPs Act is undergoing the process of assent by
material content of 75%; 78. Auto-Axillary Ltd products (U bolt and ii. African Development Bank (AfDB); EAC Heads of States.
Center bolts) from Kenya were charged
63. Lack of Verification sheds and parking yards CET of 25% in Tanzania; iii. Japan International Cooperation The current status of the construction of OSBPs in
at border posts affecting all Partner States; Agency (JICA); and Partner States is summarized below:
79. Tanzania Port Authority charged USD90 as
64. Charging of full duty on aluminum products way leave fees for transit container of 20 iv. World Bank
from Kenya to Uganda which didnot not feet and 140USD for container of 40 feet for
enjoy EAC duty remission scheme; transit trucks from Burundi;
In the Republic of Rwanda, nine (9) OSBPs were Seven (7) OSBPs were under construction in the The following initiatives are being undertaken 8.1.2 UNBS IICIMS
under construction namely; Rusumo, Gatuna, Republic of Uganda namely Malaba, Busia, Katuna, towards elimination of NTBs affecting intra-EAC
Kagitumba, Cyanika, Rusizi I & II, Nemba, Ruhwa, Mirama Hills, Mutukula, Elegu and Cyanika. trade. The Emphasis of IICIMS is on Import Inspection and
Akanyaru Haut and Gisenyi. Rusumo OSBP was Clearance procedure.The process was mapped out
completed and the facility was occupied in At the Malaba OSBP, construction of buildings had and streamlined. The Support from the senior man-
February 2015. been completed and the construction of the exit agement had led to rapid adoption of the system.
road was ongoing and expected to be 8.1 AUTOMATION IN TRADE: The Malaba, Mutukula, Entebbe border stations are
Nemba and Ruhwa OSBPs were also completed completed by December 2015 but the bridge using the system. Additional functionality was be-
and are now operational. between Uganda and Kenya was not complete. A SOLUTION FOR NTBs IN THE ing requested by internal users as well as external
Officials from Uganda and Kenya had relocated to EAC stakeholders.
At Kagitumba OSBP, construction had been the new facility.
completed and the facility was handed over to During the meeting of the 18th EAC Regional Forum
the Rwandan government. The project awaited At Busia, construction was 85% complete and on NTBs, TMEA informed the meeting that it had
launching and official opening. it was expected to be completed by December undertaken a study on Automation in Trade as one 8.1.3 Automating Certificate of Origin (RoO)
2015. However, this project was behind schedule of the solutions for NTBs in the EAC. Mr. Alex Kipy-
At Gatuna OSBP, 20% of the civil works had been and was likely not to meet the completion deadline egon, Programme Manager, ICT4TRADE who is the TCCIA had already automated their certificate
completed. The feasibility studies for Akanyaru of December 2015. lead consultant, presented the study findings which on RoO. KNCCI was still issuing certificate of RoO
Haut and Gisenyi were completed and awaited include the following: manually. It was anticipated that the automated
potential Development Partners to fund the next At Katuna, civil works were at 20% completion due certificates would be rolled out before the end of
stage of construction. to delays caused by border location as a result (a) Rwanda Bureau of Standards Management the 2015.
of being surrounded by the mountains and the Information System Enterprise Resource
In Cyanika, designing of OSBP had commenced, marshland. Planning (RBS MIS/ERP). New functionalities such online payment was ex-
while at Rusizi I & II infrastructure and procedure pected to be a game changer. Notifications would
audits were being conducted to determine the At Mirama Hills, construction had been completed (b) Uganda National Bureau, imports and be done through emails and SMS system.
suitability of OSBP. and the facility was handed over to the Ugandan Clearance Information Management System
Government. The project awaits official opening. (UNBS IICIMS).
At Mutukula construction of buildings was (c) Kenya National Chamber of Commerce and 8.2 MONITORING THE
7.5: United Republic of complete but works on the exit road, parking yard
and fence were not yet complete.
Industry, Automating certificates of Origin
(KNCCI- CoO). PERFORMANCE OF THE
Tanzania NORTHERN CORRIDOR BY THE
At Elegu OSBP, the contract was signed in NORTHERN CORRIDOR TRANSIT
September 2015 and construction was expected
to be completed by February 2017. AND TRANSPORT COORDINATION
AUTHORITY
In the United Republic of Tanzania, nine (9) OSBPs At Cyanika infrastructure and procedure audits to 8.1.1 RSB MIS/ERP
were under construction namely, Namanga, assess suitability for OSBP were conducted in 2011
Horohoro, Holili, Sirari, Rusumo, Mutukula, Kabanga, but construction had not commenced. RSB presented a unique scenario and the
Tunduma, and Manyovu. functionalities of the project include: a complaint 8.2.1 Introduction
module, standard catalogue, System Certifica-
Civil works at Namanga had been completed and tion, and S-Mark Application. It has also an Import The Northern Corridor Transit and Transport
the facility was handed over to Tanzania Revenue Inspection and Clearance Module and sits within Coordination Authority (NCTTCA) is an inter-
Authority. ReSW. Discussions were ongoing to integrate the governmental organization established under
ReSW so as to allow sharing of information. the Northern Corridor Transit and Transport
Other OSBPs completed are: Horohoro, Holili, Agreement(NCTTA) comprising of six Member
Sirari, Rusumo, Mutukula, and Kabanga. Whereas States namely; Burundi, Democratic Republic of
Tunduma OSBP, the designs were awaiting Congo, Kenya, Rwanda, South Sudan and Uganda.
approval, while Manyovu OSBP, the study was
completed and awaits a potential funder.
(c) Efficiency and Productivity; and National Monitoring Committees on NTBs and Corri-
dor Authorities are encouraged to collaborate and There is need for collaboration between National
(d) Cost and Rates. align their monitoring frameworks and ensure that Monitoring Committees on NTBs and the Corridor in
there is a clear mechanism to ensure that recom- identifying and resolving NTBs as well as deliberating
mendations on NTB removal are implemented. on the regular use of Transport Observatory Portals
Ten of these indicators are monitored on a weekly Stakeholders encouraged make use of the Obser- reports, presentations and findings during quarterly
basis through the Northern Corridor Performance vatory Data and survey reports meetings so as to address emerging NTBs related
Dashboard which could also be accessed via information along the corridors.
http://top.ttcanc.org or www.kandalakaskazini.
or.ke
8.3 EMERGING NTBS RELATED
The Dashboard measures the implementation of
the Mombasa Port Community Charter which INFORMATION ON THE
commits both Private and Public sector CENTRAL C ORRIDOR
stakeholders involved in handling of and clearing of
goods transported through the Port of Mombasa to
undertake measures that will enhance efficiency of 8.3.1 Introduction
the port and the Northern Corridor.
The Central Corridor Transit Transport Facilita-
The Observatory provides key information to tion Agency (CCTTFA) is implementing the Central
inform policy interventions along the Corridor. Corridor Transport Observatory Project (CCTO)
Weekly, monthly, quarterly and Semi-annual reports with funding from TMEA. The Transport Observa-
can be accessed via the Transport Observatory tory was officially launched on 9th July 2013 by the
Portals (TOP). Council of Ministers.
www.eac.int