This archive report was first published on 12 July 2020.
On July 1, the East African Community (EAC) implemented a new Common External Tariff (CET) aimed at promoting local production in the region.
The EAC member states, including Kenya, Burundi, Rwanda, Tanzania, and Uganda, had approved the tariff changes in pre-budget consultations on May 13.
According to East African Business Council executive director Peter Mathuki, the duty remission measures will allow local manufacturers to import raw materials and inputs at a lower rate, safeguarding them against cheap imports.
The targeted products include textiles, leather goods, edible oil, tiles, processed tea, coffee, and cocoa, meat and meat products, and steel articles.
The CET is structured into three bands: 25% for finished goods, 10% for intermediate goods, and zero percent for raw materials and capital goods.
However, some products will attract higher duty rates, ranging from 35% to 100%.
Kenya has also assigned certain products, such as apparel and clothing accessories, as sensitive for the next year and will apply a duty rate of 35%.
The duty remission measures are specific to gazetted manufacturers who applied for the importation of a specific amount of input or product at the reduced import duty rate.
The decisions to stay application of the CET rate and apply a higher duty rate aim to stimulate local production by safeguarding manufacturing against similar cheap imports.
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