Non-Tariff Barriers

Complaint

Complaint number

NTB-000-760  

NTB Type

2.3. Issues related to the rules of origin  

Complaint

Lack of preferential treatment. Payment of full CET duty on cement exports from Kenya to Tanzania due to interpretation of Chapter 25. This also affects situations where the local content is at a high percentile. Tanzania authorities attach a 35% duty to cement that is not ‘wholly produced’ in an EAC state. This is opposed to previous practice which had other categories on the rules of origin certificate that for cement included ‘value addition’ and/or ‘substantially transformed using material content not exceeding 60%’ - the Authorities do not consider these categories anymore; the rules of origin must state whether the item is either wholly produced or not.  

Status note

During the Bilateral Meeting held on 27th April 2019, both Kenya and Tanzania, Tanzania reported that Cement transfered from Kenya is granted preferential treatment which was disputed by Kenya. The Tanzania Revenue Authority agreed to provide feedback in one week. The meeting was informed by the Secretariat that the NTB was resolved during the CoC meeting of April 2019.  

Progress update note

1. The Extra Ordinary SCTIFI that sat in February, 2018 directed that the EAC Secretariat coordinates a verification mission on edible oils, cement, lubricants in Kenya by 31st March 2018.
2. During the SCTIFI meeting of 16th November, 2018, Kenya reported that the NTB for Lubricants & edible oils has been resolved but the NTB on cement in respect of Clinker that is locally sourced and imported is not resolved.The Meeting of the SCTIFI directed the Secretariat and CoC to develop guidelines on applicability of separation of materials as provided by Rule 11 of the EAC Rules of Origin, 2015.
3.During the bilateral meeting in December 2018,Kenya reported that the NTB for Lubricants & edible oils has been resolved but the NTB on cement in respect of Clinker that is locally sourced and imported is not resolved.
The Meeting recommends to the SCTIFI to direct the Secretariat and CoC to develop guidelines on applicability of separation of materials as provided by Rule 11 of the EAC Rules of Origin, 2015.
4. In July 2019, Kenya Focal Point observed that URT has not complied with recommendations of verification. Kenya provided evidence. Kenya further reported that, in addition, Tanzania has introduced another requirement whereby before Kenya export cement, Kenya manufacturers need to send a sample of cement to Tanzania Government chemist for sampling. This is causing delays and it's costly to test and to take samples to Tanzania. This is really frustrating cement from Kenya.  

Policy or regulatory NTB

Yes 

Location

Tanzania: Tanzania Revenue Authority (Government institution)  

Reporting Country or Region

Kenya  

Country specific trade issue

No  

Date of incident

2017-05-05  

Status

Resolved  

Date of resolution

2019-10-16  

Product Description

Cement

Computer-assisted translation

• English
• Arabic
• French
• Portuguese

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Total value

0  

Date reported

2017-08-02 11:13  

Modified

2019-11-01 08:06