| Complaint number |
NTB Type
|
Date of incident |
Location |
Reporting country or region (additional) |
Status |
Actions |
|
NTB-001-209 |
2.9. Issues related to transit fees |
2024-10-13 |
Kenya: Ministry of Forestry and Wildlife |
Uganda |
In process |
View |
|
Complaint:
|
Additional fees charged on timber in transit.
Kenya charges charges Ksh 48000 on transit vehicles carrying forest and timber products from Uganda transit through Kenya to destinations outside the EAC. Transit vehicles are charged fees for a transit license in addition to payment of road user fees. The timber products are extracted from forests in Uganda and not Kenya. This additional fee is wrongly charged and causes additional costs to trade in forest products from Uganda. |
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|
Progress:
|
1. During the RMC of 17th October 2024, the Republic of Kenya committed to consult and revert during the 38th RMC.
2.The Senior Officials were informed that the Republic of Kenya is in consultation with Forestry Services to address the matter and will report back by the 46th SCTIFI. |
|
|
NTB-001-208 |
5.15. Other |
2024-05-01 |
Uganda: Fish protection unit |
Kenya |
In process |
View |
|
Complaint:
|
Uganda is intercepting fish export from Kenya which is in transit to DRC on grounds that Kenya is transferring immature fish that is not accepted in Uganda.
The fish protection unit in Uganda opens the goods on transit in the sealed containers which is against the provisions of goods in transit. |
|
|
Progress:
|
1. The RMC of 17th October 2024, noted that this act is against Trade Facilitation Laws on goods in Transit and urged the Republic of Uganda to respect the free movement of transit cargo and allow transit fish from RSS, Kenya and Tanzania to transit freely to DRC. Transit goods should not be subjected to TBT regulations under the WTO Agreement of Trade Facilitation and EAC Instruments.The Republic of Uganda committed to follow up with relevant institutions to allow transit trucks carrying fish to go through Ugandan territory without any restrictions or interceptions in the Uganda territory.
2.The Senior Officials noted that the act was against Trade Facilitation Laws on goods in Transit urged the Republic of Uganda to respect the free movement of transit cargo and allow transit fish from RSS, Kenya and Tanzania to transit freely to Democratic Republic of Congo. Transit goods should not be subjected to TBT regulations under WTO Agreement of Trade Facilitation and EAC Instruments.
The Republic of Uganda informed the Senior Officials that an investigation has been commissioned and is committed to follow up with relevant institutions to allow transit trucks carrying fish to Democratic Republic of Congo to go through the Uganda territory without any restrictions or interceptions.
The Sectoral Council on Trade, Industry, Finance and Investment urged the Republic of Uganda to accord fish on transfer to the Democratic Republic of Congo and other Partner States right of passage without any restrictions by 31st December 2024 and report to the 46th Sectoral Council for Trade, Industry, Finance and Investment (EAC / SCTIFI 45 / Directive / 50). |
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|
NTB-001-205 |
2.3. Issues related to the rules of origin |
2024-07-01 |
Uganda: Busia |
Kenya |
In process |
View |
|
Complaint:
|
Uganda's denial of market access of biscuit and wafers manufactured and transferred into Uganda by Sunveat Industries of Kenya. Reason being that wheat flour materials supplied by Kenblest LTD benefited from imported wheat under Duty Remission Scheme (DRS) |
|
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Progress:
|
The RMC of 17th OCTOBER 2024 noted that the Republic of Uganda had written to the Republic of Kenya requesting some information that would guide them to make an informed decision but the letter had not been responded to. The Republic of Kenya committed to respond to URA on the information requested. |
|
|
NTB-001-204 |
2.9. Issues related to transit fees |
2024-10-01 |
Rwanda: Gatuna |
Uganda |
In process |
View |
|
Complaint:
|
Republic of Rwanda is charging un harmonized flat rates for vehicles transiting through the Rwanda borders. This is against the agreed principle of distance x weight for transit vehicles.
Uganda is upholding the principle of distance*weight.
|
|
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Progress:
|
1.The RMC of 17th October 2024 was informed that the NTB on discriminatory road user charges was considered by the 45th Council of Ministers which noted the following submission from Partner States:The Republic of Rwanda informed the Council that:
a) The decision of TCM to calculate the Road User Charges based on weight and distance is discriminatory in nature. It favours big states and discriminates against smaller ones. In view of the above, Rwanda being a small state and landlocked as well cannot accept being punished based on its size.
b) The EAC Partner States had gone beyond this level by harmonizing fees and charges. The harmonization of charges, Levies and fees is ongoing. From 1 7 to 21 June 2024 in Entebbe - Uganda, the Community convened a regional meeting to identify and compile Fees, Levies and charges in Agriculture and Transport Sectors. The Republic of Rwanda proposes to continue in the same spirit of harmonizing charges and fees by putting in place flat rates.
c) That Road User Charges which are calculated based on axle load and distance should only apply to cargo trucks which originate from non-EAC Partner States i.e. SADC & COMESA Countries. EAC Partner States should enjoy equal benefits of regional integration by removing anything identified as barriers
d) That high transportation costs, including levies, fees, and charges, result in higher final prices, impacting businesses, trade, and end consumers, particularly in landlocked countries.
e) There is a need for the EAC to agree on fair and fact-based Road User Charges, not only focusing on micro-level factors like axle load/weight and distance but also considering other factors that favour all of us as a region
f) There is a need to do a study to determine the impact of the Road User Charges on the EAC economies.
The Republic of Burundi informed the Council that:
a) The bilateral meeting between the Republic of Burundi and the United Republic of Tanzania as directed by the TCM has not yet been convened by the Secretariat; and
b) They were still consulting on the matter.
The Council therefore observed that:
a) Road User Charges are intended for infrastructural development and maintenance, end-to-end facilitation of transportation, and not revenue; and
b) All the Partner States participated in the meeting of the SC TCM that adopted the proposals and recommendations of SC TCM on harmonisation of Road User Charges.
The Sectoral Council (TCM) Directed:
a) Partner States to apply the distance + weight (axles) charging principle;
b) Partner States that use flat rates to abolish them and adopt distance + weight (axles) charging principle.
c) Partner States to charge Road User Charges based on the following three categories of vehicles:
• Buses;
• Trucks of three or less axles; and
• Heavy Goods Vehicles of more than three axles (truck with a drawbar trailer or articulated vehicles/semi-trailers);
d) Partner States applying COMESA harmonised rates between themselves to continue doing so;
e) Partner States to reciprocate the distance + weight (axles) rates charged by counterpart states;
f) The Secretariat to prepare Terms of Reference for a study to review the existing Road User Charges and develop harmonised charging formulas to be applicable in the EAC;
g) Secretariat to mobilise funds for the study in (vi) above;
h) Foreign registered vehicles to be charged RUCs on the basis of a round trip from the point of entry to the destination and back provided the destination is within the country of entry;
i) Partner States to always display the gazetted RUC rates at all points of entry; and
j) Partner States to prepare a schedule of distances and their respective computed charges from their point of entry to various destinations within their respective territories and display them at all points of entry.
The Council directed the Secretariat to refer the Harmonization of Road User Charges in the Community back to the Sectoral Council on Transport Communication and Meteorology (TCM) for consideration and report back to the 46th meeting of Council (EAC/CM 45/ Directive 56). As per the directives of TCM, there are two Road User Charges adopted in the Community.
(i) distance + weight (axles) rates
(ii) COMESA harmonised rates of USD 10 per 100 KM
The Republic of Rwanda committed to consult and revert during the 38th RMC.
2.Directives from 18th Sectoral Council on TCM:
The 18th Sectoral Council (TCM) Directed:
(a) Partner States to apply the distance + weight (axles) charging principle;
(b) Partner States that use flat rates to abolish them and adopt distance + weight (axles) charging principle.
(c) Partner States to charge Road User Charges based on the following three categories of vehicles:
● Buses;
● Trucks of three or less axles; and
● Heavy Goods Vehicles of more than three axles (truck with a drawbar trailer or articulated vehicles / semi-trailers);
(d) Partner States applying COMESA harmonized rates between themselves to continue doing so;
(e) Partner States to reciprocate the distance + weight (axles) rates charged by counterpart states;
(f) The Secretariat to prepare Terms of Reference for a study to review the existing Road User Charges and develop harmonized charging formulas to be applicable in the EAC;
(g) Secretariat to mobilize funds for the study in (vi) above;
(h) Foreign registered vehicles to be charged RUCs on the basis of a round trip from the point of entry to the destination and back provided the destination is within the country of entry;
(i) Partner States to always display the gazetted RUC rates at all points of entry; and
(j) Partner States prepare a schedule of distances and their respective computed charges from their point of entry to various destinations within their respective territories and display them at all points of entry.
Updates from the 45th Council of Ministers:
The NTBs on Road User Charges were also considered by the 45th Council of Ministers which noted the following submission from Partner States:
The Republic of Rwanda informed the Council that:
(a) The decision of TCM to calculate the Road User Charges based on weight and distance is discriminatory in nature. It favors big states and discriminates against smaller ones. In view of the above, Rwanda being a small state and landlocked as well cannot accept being punished based on its size.
(b) The EAC Partner States had gone beyond this level by harmonizing fees and charges. The harmonization of charges, Levies and fees is ongoing. From 1 7 to 21 June 2024 in Entebbe - Uganda, the Community convened a regional meeting to identify and compile Fees, Levies and charges in Agriculture and Transport Sectors. The Republic of Rwanda proposes to continue in the same spirit of harmonizing charges and fees by putting in place flat rates.
(c) That Road User Charges which are calculated based on axle load and distance should only apply to cargo trucks which originate from non-EAC Partner States i.e. SADC & COMESA Countries. EAC Partner States should enjoy equal benefits of regional integration by removing anything identified as barriers
(d) That high transportation costs, including levies, fees, and charges, result in higher final prices, impacting businesses, trade, and end consumers, particularly in landlocked countries.
(e) There is a need for the EAC to agree on fair and fact-based Road User Charges, not only focusing on micro-level factors like axle load / weight and distance but also considering other factors that favor all of us as a region
(f) There is a need to do a study to determine the impact of the Road User Charges on the EAC economies.
The Republic of Burundi informed the Council that:
(a) The bilateral meeting between the Republic of Burundi and the United Republic of Tanzania as directed by the TCM has not yet been convened by the Secretariat; and
(b) They were still consulting on the matter.
The Council therefore observed that:
(a) Road User Charges are intended for infrastructural development and maintenance, end-to-end facilitation of transportation, and not revenue; and
(b) All the Partner States participated in the meeting of the Sectoral Council on TCM that adopted the proposals and recommendations of the Sectoral Council on TCM on harmonization of Road User Charges.
The Council directed the Secretariat to refer the Harmonization of Road User Charges in the Community back to the Sectoral Council on Transport Communication and Meteorology (TCM) for consideration and report back to the 46th meeting of Council (EAC / CM 45 / Directive 56).
Update from the 19th Sectoral Council on TCM:
The 19th Sectoral Council on TCM considered the matter and received inputs from Partner States as follows:
United Republic of Tanzania
Tanzania provided a presentation containing the background, findings and recommendations on the issues of Road User Charges as follows:
(i) Prior to the 18th TCM, United Republic of Tanzania was charging a rate of USD 16 / 100km for vehicles over three axles and USD 6 / 100 km for vehicles of up to 3 axles;
(ii) After the 18th TCM, United Republic of Tanzania reviewed her rates to USD 10 / 100km for vehicles above three axles and USD 06 / 100 km for vehicles below three axles
(iii) Under the road-user principle, road users are supposed to pay RUCs to compensate damage caused by vehicles;
(iv) There is need for non-discriminatory charging for road users from foreign vehicles;
(v) Studies reveal that the principles to be used to calculate RUCs should be foreign operators to pay for road use; non-discrimination and charges related to damage caused on the road infrastructure.
Uganda
Uganda submitted that:
(i) All roads are paid for by citizens through taxes and there are no free roads
(ii) Roads have a design life, and the main cause of deterioration is the weight (load carried by vehicles), and the distance moved. The heavier the weight carried the more the degradation and the longer the distance the more the degradation; hence the higher the repair costs required;
(iii) Road user charges are not profits for utilization of the roads but a contribution for the maintenance and repair of the roads;
(iv) The position of the 18th Sectoral Council of TCM is not discriminatory at all as it stipulates that whoever degrades the roads should meet a proportionate contribution to their repair and maintenance; moreover, all Partner States were involved in making that decision;
(v) The weight + distance consideration in the road user charge is an equitable basis for contributing to the maintenance and repair of roads;
(vi) Tanzania has already carried out a study similar to the one being proposed by some Partner States whose results were shared in the meeting, and they support the weight + distance basis for determining the road user charges;
(vii) Deferring the decision on the user charges will cause an unnecessary vacuum which will have serious effects in the road sector; the largest mode of transport at the moment.
The Republic of Uganda therefore supports the position of the 18th TCM.
Burundi
Burundi was of the view that landlocked countries should not be disadvantaged to access the world markets through high transit charges along coastal countries. The fixed rate for RUCs should be maintained. The RUCs include fuel levy for road maintenance, vehicle license fees, international transit fees and others such as congestion fees. The concern raised by Burundi is that RUC should be restricted to transit fees. The road user from neighboring countries pay for damage to the road network is catered for by the fuel levy.
Rwanda
Rwanda was of the opinion that the rates should be determined by the Committee responsible for fees, charges and levies since that committee handles all sectors of the economy that includes all modes of transport. What was needed was the timeline within which to harmonize the charges. The charges incurred by transporters are actually borne by the citizens, who are the end users of the cargo being transported.
Kenya
Kenya supports the directives of the 18th TCM. However, EAC Secretariat was supposed to prepare TORs for a regional study on harmonized RUCs. Alternatively, the study could be done by a TWG. Through a bilateral arrangement, Kenya and Tanzania harmonized their charges to comply with COMESA rates. But the proposed study by the Secretariat should take into account the principals. further, the quality of roads in the region are not the same, hence there was a need to harmonize the road quality standards so that the cost of maintenance of roads is similar for all countries.
The Secretariat clarified that the draft TORs had been prepared but needed to be updated and submitted to Partner States for review in two weeks. Regarding the modality for the study, the TCM had agreed that the study be carried out by an independent consultant oversighted by a technical working group. The issue of RUCs is also an agenda in SADC and COMESA and, therefore, is a Tripartite issue. Currently discussions are ongoing with the EU and TMA, and it is hoped that a solution will be found.
Conclusion
Uganda, Kenya and Tanzania were of the opinion that the principles of charging agreed by the 18th TCM (distance + weight) should be maintained, as the region awaits the outcome of the study by the Secretariat. However, Rwanda and Burundi positions are that the charges should be further analyzed by the Committee on rates, fees and levies.
The meeting noted that the 19th TCM among others reiterated its directive to Partner States applying the COMESA rates on RUCs as directed by the 18th TCM (EAC / TCM 19 / Directive 08).
The Republic of Rwanda and Republic of Burundi were of the view that the study should come first before implementation of the TCM Directives.
Permanent / Principal / Under Secretaries noted the need for the study by TCM on harmonization of road user charges, as they have direct impact on the cost of doing business in the Region and be subjected to the joint consideration by the Sectoral Council on TCM and SCTIFI.
The Sectoral Council on Trade, Industry, Finance and Investment took note of the directives of the Sectoral Council on Transport, Communications and Meteorology on the harmonized road user charges; and recommended to Council to direct the Secretariat to convene a joint meeting of the Sectoral Council of the Sectoral Council on Transport, Communications and Meteorology and Sectoral Council on Trade, Industry, Finance and Investment to consider the recommendations of the study on the harmonization of road user charges once finalized by the Sectoral Council on Transport, Communications and Meteorology (EAC / SCTIFI 45 / Directive / 47). |
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|
NTB-001-203 |
5.3. Export taxes
Policy/Regulatory |
2023-04-12 |
Malawi: Malawi Revenue Authority |
Zambia |
In process |
View |
|
Complaint:
|
Malawi Laundry & confectionary imports into Zambia are levied MK20,000 to MK25,000 per invoice, where
Zambian products going to Malawi are charged with 13-27% (MBS, Surcharge, Excise duty). |
|
|
Progress:
|
NFPs for the two countries to hold bilateral meeting by August 2024. This issue was also discussed during bilateral meeting held in Addis Ababa at the 4th NTBs Forum . Malawi to report progress from internal consultations. |
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NTB-001-202 |
8.8. Issues related to transit |
2024-09-16 |
Uganda: Elegu |
Tanzania |
In process |
View |
|
Complaint:
|
Uganda through the Fisheries Protection Unit intercepted fish from South Sudan at Pakwach Check Point and Elegu One Stop Border Post, breaking seals and inspecting fish which is in transit to DRC, on the grounds that RSS is transferring immature fish that are not accepted in Uganda. |
|
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Progress:
|
1.The RMC of 17th October 2024, noted that this act is against Trade Facilitation Laws on goods in Transit and urged the Republic of Uganda to respect the free movement of transit cargo and allow transit fish from RSS, Kenya and Tanzania to transit freely to DRC. Transit goods should not be subjected to TBT regulations under the WTO Agreement of Trade Facilitation and EAC Instruments. The Republic of Uganda committed to follow up with relevant institutions to allow transit trucks carrying fish to go through Ugandan territory without any restrictions or interceptions in the Uganda territory.
2.The Senior Officials noted that the act was against Trade Facilitation Laws on goods in Transit urged the Republic of Uganda to respect the free movement of transit cargo and allow transit fish from RSS, Kenya and Tanzania to transit freely to Democratic Republic of Congo. Transit goods should not be subjected to TBT regulations under WTO Agreement of Trade Facilitation and EAC Instruments.
The Republic of Uganda informed the Senior Officials that an investigation has been commissioned and is committed to follow up with relevant institutions to allow transit trucks carrying fish to Democratic Republic of Congo to go through the Uganda territory without any restrictions or interceptions.
The Sectoral Council on Trade, Industry, Finance and Investment urged the Republic of Uganda to agree fish on transfer to the Democratic Republic of Congo and other Partner States right of passage without any restrictions by 31st December 2024 and report to the 46th Sectoral Council for Trade , Industry, Finance and Investment (EAC / SCTIFI 45 / Directive / 50). |
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|
NTB-001-200 |
2.4. Import licensing |
2024-07-16 |
Zimbabwe: Ministry of Trade |
Malawi |
New |
View |
|
Complaint:
|
In June 2024, a member of Malawi Confederation of Chambers of Commerce and Industry, Nuline Textiles Blanket Manufacturers Limited, entered into an agreement with a Zimbabwean company, Middlefield Investment Pvt. Ltd, to supply them with blankets.
Starting on July 11, 2024, Nuline Textiles Blanket Manufacturers Limited completed all the necessary procedures in Malawi to facilitate the export of blankets to Zimbabwe under the COMESA trade agreement to ensure they would receive preferential treatment. On July 16, 2024, the Export Bill of Entry No. E 3645 (dated July 15, 2024) was released by Customs in Malawi, and the consignment was loaded onto Truck No. NE 10666 / NE 10702.
However, on the same day, just as the truck driver was about to depart, Nuline Textiles received a call from their client in Zimbabwe, instructing them to hold off on the shipment. The following day, the client, Middlefield Investment Pvt. Ltd, informed Nuline Textiles that the blankets required an import permit or license, which the client had not yet obtained. They assured Nuline Textiles that they were working to secure the permit as quickly as possible.
On July 18, 2024, Middlefield Investment Pvt. Ltd requested additional time to work on obtaining the import license and asked Nuline Textiles to offload the truck and return the blankets to their warehouse.
As of today, the import license has still not been secured. |
|
|
NTB-001-199 |
1.8. Import bans |
2024-06-20 |
Democratic Republic of the Congo: Ministry of External Trade |
Uganda |
In process |
View |
|
Complaint:
|
The Democratic Republic of Congo (DRC) has instituted a suspension on the transfer of grey cement and clinkers to its Western and Eastern regions. This action raises concerns as it disrupts trade flows and hinders the movement of these essential construction materials within the region.
Such a suspension could have broader implications for trade and economic cooperation within the region, affecting both producers and consumers. The measure may also contravene regional trade agreements aimed at facilitating the free movement of goods, as outlined in the East African Community (EAC) protocols, and could undermine the spirit of regional integration.
A review of this suspension is essential to ensure the continued trade of critical materials and to uphold the principles of regional cooperation.
|
|
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Progress:
|
1. DRC informed the RMC meeting of 17th October 2024 that the measure is temporary based on WTO Law on Safeguard measures and is meant to protect domestic industries.
The RMC meeting noted that even based on WTO Rules, DRC had not followed the right procedures for the application of the safeguard measures as there was no investigation done to show proof of serious injury or threat to injury caused to DRC factories by the excess transfer of drinks from other Partner States and there was no investigation done to establish the causal link between the closure of the factories and the transferred of goods from EAC Partner States. The meeting further observed that DRC is a member of EAC and any safeguards measures taken should be per the EAC Customs Union Protocol Safeguard Measures stipulated under Article 19.
2.The meeting observed that when the Democratic Republic of Congo joined the Community a roadmap was developed to help the Democratic Republic of Congo to be integrated into EAC Projects and Programmes. Democratic Republic of Congo should commence implementation of the roadmap and comply with EAC Laws, among others, the Customs Union Protocol to allow free movement of goods. The Sectoral Council on Trade, Industry, Finance and Investment urged Democratic Republic of Congo to lift the ban on cement and clinker from the EAC Partner States as it contravenes the EAC Treaty and report to the 46th Sectoral Council for Trade, Industry, Finance and Investment (EAC / SCTIFI 45 / Directive / 52). |
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NTB-001-197 |
1.8. Import bans |
2024-09-11 |
Democratic Republic of the Congo: Ministry of External Trade |
Uganda |
In process |
View |
|
Complaint:
|
The Democratic Republic of Congo (DRC) suspended the transfer of soft drinks and beer from other countries, citing that only products from nations with bilateral agreements will be accepted. This suspension directly contravenes the spirit of the East African Community (EAC) and its commitment to fostering free trade and economic cooperation among Partner States.
The Memorandum of Understanding (MOU) that limits acceptance of products to those from countries with bilateral agreements undermines the EAC's principles of regional integration and free movement of goods. It creates unnecessary trade barriers and hinders the seamless exchange of goods between EAC Partner States, which is fundamental to the EAC Customs Union's objectives.
Addressing this issue is critical to ensuring that all EAC partner States can trade without restrictions and continue to benefit from the shared economic goals outlined in the EAC Treaty. |
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Progress:
|
1. DRC informed the RMC meeting of 17th October 2024 that the measure is temporary based on WTO Law on Safeguard measures and is meant to protect domestic industries.
The RMC meeting noted that even based on WTO Rules, DRC had not followed the right procedures for the application of the safeguard measures as there was no investigation done to show proof of serious injury or threat to injury caused to DRC factories by the excess transfer of drinks from other Partner States and there was no investigation done to establish the causal link between the closure of the factories and the transferred of goods from EAC Partner States. The meeting further observed that DRC is a member of EAC and any safeguards measures taken should be per the EAC Customs Union Protocol Safeguard Measures stipulated under Article 19.
2.Democratic Republic of Congo informed the meeting that the measure is temporary based on WTO Law on Safeguard measures and is meant to protect domestic industries which were dying as a result of transfers from Partner States.
The meeting noted that even based on WTO Rules, Democratic Republic of Congo had not followed the right procedures for the application of the safeguard measures as there was no investigation done to show proof of serious injury or threat to injury caused to Democratic Republic of Congo factories by the excess transfer of drinks from other Partner States and there was no investigation done to establish the causal link between the closure of the factories and the transferred of goods from EAC Partner States. The meeting further observed that the Democratic Republic of Congo is a member of EAC, and any safeguards measures taken should be per the EAC Customs Union Protocol Safeguard Measures stipulated under Article 19.
The Sectoral Council on Trade, Industry, Finance and Investment urged Democratic Republic of Congo to lift the ban on soft drinks and beer from the EAC Partner States as it contravenes the EAC Treaty and report to the 46th Sectoral Council for Trade, Industry, Finance and Investment (EAC / SCTIFI 45 / Directive / 51). |
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NTB-001-193 |
3. Technical barriers to trade (TBT)
B14: Authorization requirements for importing certain products |
2023-12-10 |
Botswana: Instructions provided to the Rwanda's commercial agent based in Botswana |
Rwanda |
New |
View |
|
Complaint:
|
Requirement by Botswana authority in charge of food imports that Rwanda needs to provide a " Free Sale certificate" prior to exporting coffee to Botswana. The issue is that such certificate is not required in 20 countries where Rwanda is exporting coffee globally. In addition, there is no institution in Rwanda that issues such certification. |
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Products:
|
0901: Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion. |
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NTB-001-191 |
1.15. Other |
2024-05-20 |
South Africa: Ficksburg Bridge |
Lesotho |
New |
View |
|
Complaint:
|
I am writing on behalf of Mind Health, a Lesotho-registered company actively engaged in the research and development of medicinal products. We are currently collaborating with the University of the Free State (UFS) in South Africa to conduct studies on one of our products. This relationship is critical for advancing our work in the medicinal sector, a key area of growth for Lesotho.
However, we have encountered significant challenges due to the implementation of Section 4.8 of the Guideline for the Importation and Exportation of Medicines (Regulatory Compliance Unit) by SAHPRA. The guideline requires the use of specific ports of entry, namely Cape Town, Port Elizabeth, Durban, and OR Tambo International Airport, for the export of medicines. Consequently, we are prohibited from using more practical and geographically closer border posts such as the Maseru Bridge or Ficksburg Bridge.
Given Lesotho's landlocked nature and the fact that the University of the Free State is only 227 km from our facility, this regulation has drastically inflated the cost of exporting small quantities of medicinal samples. For instance, we are now compelled to fly samples from Maseru to OR Tambo, have them cleared by customs, and then transport them by road back to the university—a total of 424 km. What would have cost us a few hundred rand using nearby border posts now costs several thousand rand. Additionally, this significantly increases shipment times, delaying our research and impacting the efficiency of our studies. |
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NTB-001-184 |
8.8. Issues related to transit |
2024-08-09 |
Zimbabwe: Forbes |
Zambia |
In process |
View |
|
Complaint:
|
On 10 August 2024, Zimbabwe imposed a requirement enforcing payment of duty on fuel in transit at the Port of Entry at all border posts ‘in order to secure duty and levies on fuel imported under Removal in Transit Facility’. Such duty and levies shall be recovered on acquittal at the Port of Exit. Zimbabwe Revenue Authority (ZIMRA) advised that the payment of duty for fuel in transit was to mitigate against transit fraud. With effect from 10 August 2024 all fuel, petrol, diesel, paraffin and jet A1, in transit imported through ports of entry by road is now required to pay duty and levies on entry. The duty and levies will be refunded at the port of exit upon compliance with all the transit procedures, including submission of proof that the fuel has been exported. Consignee’s and/or their representatives should approach ZIMRA at the port of entry to initiate the fuel clearance and payment process. For the refund process, once the fuel has been exported, they should approach ZIMRA at the port of exit to initiate the requisite refund process.
This requirement increases cost of transport. The refund procedures are not clear, and the risk of delayed refunds is very high negatively affecting cashflows for transporters. Also this requirement is treating compliant and non-compliant transporters without distinction and is penalizing the transporters who have been compliant to the Electronic Cargo Tracking System (ECTS) where the alleged abuse has been detected.
We therefore request The Minister to urgently reconsider improving this measure to facilitate movement of fuel at reasonable costs. |
|
|
NTB-001-183 |
3. Technical barriers to trade (TBT)
B1: Import authorization/licensing related to technical barriers to trade |
2024-08-08 |
Kenya: Kenya Bureau of Standards |
Uganda |
In process |
View |
|
Complaint:
|
We are experiencing unfair treatment by KEBS, Where the institution refused to recognize PERMITS Issued by UNBS.
Unfortunately, efforts to engage with border KEBS officials have not been fruitful because we didn't receive any help insisting we pay the Inspection fee. |
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Progress:
|
1. The RMC was informed that in EAC there are some Harmonised Standards for Furniture, but they are not exhaustive. The trader was transferring types of furniture falling in a category where no harmonised standard exists. In such circumstances, the goods might be subject to retesting.
The meeting hence noted that this was not an NTB but an operational challenge that could be resolved through the harmonisation of standards and recommended to the Sectoral Committee on Trade to recommend to the Sectoral Council on Trade, Industry, Finance and Investment to direct the Standards Committee to consider prioritising the development of harmonised standards for furniture in their workplan.
2.During the Sectoral Committee on Trade meeting held in November 2024, Partner States agreed that this was not an NTB but an operational challenge and was referred to the East African Standards Committee (EASC) for consideration. |
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|
Products:
|
4412.94: Laminated wood as blockboard, laminboard or battenboard (excl. of bamboo, plywood consisting solely of sheets of wood <= 6 mm thick, sheets of compressed wood, inlaid wood and sheets identifiable as furniture components) |
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|
NTB-001-183 |
3. Technical barriers to trade (TBT)
B1: Import authorization/licensing related to technical barriers to trade |
2024-08-08 |
Kenya: Kenya Bureau of Standards |
Uganda |
In process |
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Complaint:
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We are experiencing unfair treatment by KEBS, Where the institution refused to recognize PERMITS Issued by UNBS.
Unfortunately, efforts to engage with border KEBS officials have not been fruitful because we didn't receive any help insisting we pay the Inspection fee. |
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Progress:
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1. The RMC was informed that in EAC there are some Harmonised Standards for Furniture, but they are not exhaustive. The trader was transferring types of furniture falling in a category where no harmonised standard exists. In such circumstances, the goods might be subject to retesting.
The meeting hence noted that this was not an NTB but an operational challenge that could be resolved through the harmonisation of standards and recommended to the Sectoral Committee on Trade to recommend to the Sectoral Council on Trade, Industry, Finance and Investment to direct the Standards Committee to consider prioritising the development of harmonised standards for furniture in their workplan.
2.During the Sectoral Committee on Trade meeting held in November 2024, Partner States agreed that this was not an NTB but an operational challenge and was referred to the East African Standards Committee (EASC) for consideration. |
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Products:
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4412.94: Laminated wood as blockboard, laminboard or battenboard (excl. of bamboo, plywood consisting solely of sheets of wood <= 6 mm thick, sheets of compressed wood, inlaid wood and sheets identifiable as furniture components) |
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NTB-001-180 |
1.15. Other |
2024-06-17 |
South Africa: Maseru Bridge |
Lesotho |
New |
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Complaint:
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MG Health Ltd cultivates and manufactures cannabis products for the European market. We started exporting Cannabis and transiting via Maseru Bridge since September 2020. On the 17 July 2024, after getting all export documents and submitting them to SARS on the South African side we were informed that Cannabis cannot be exported via Maseru Bridge as it not amongst designated ports according to South African law. MG Health's truck was then returned to Lesotho.
MG health initiated Meetings thereafter and the response that MG Health received was that this practice that MG Health and others who are in the same industry are accustomed to was a measure adopted during COVID-19 restrictions. It was explained to SARS that Lesotho is landlocked as a result the consignment will have to be flown out to get to OR Tambo. Secondly, given the quantities that are exported, using available flights will require multiple flights for just one consignment thus making the export process difficult and expensive. SARS response was that Medical Cannabis must be exported using designated ports irrespective of whether it is in transit or it is being exported to SA as the SA law is very clear on this matter and MG Health cannot make reference to Article 16 SACU Agreement. |
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Products:
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5302.90: True hemp "Cannabis sativa L.", processed but not spun; tow and waste of hemp, incl. yarn waste and garnetted stock (excl. retted hemp) |
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NTB-001-179 |
8.8. Issues related to transit |
2024-05-01 |
Uganda: Government officials |
Tanzania |
In process |
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Complaint:
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Mpondwe Border Government Officials forcefully offload transit cargo for Tanzania traders.
In May 2024, Government Officials from the Republic of Uganda intercepted processed salted fish from Tanzania in transit to the Democratic Republic of Congo at the Mpondwe Border and were forced to break the seal of the cargo and sell the fish at the Mpondwe market. This is against Trade Facilitation Laws on how to treat Goods in Transit and led to great loss to Tanzanian traders in terms of capital and market. |
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Progress:
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1. The RMC of 17th October 2024, noted that this act is against Trade Facilitation Laws on goods in Transit and urged the Republic of Uganda to respect the free movement of transit cargo and allow transit fish from RSS, Kenya and Tanzania to transit freely to DRC. Transit goods should not be subjected to TBT regulations under the WTO Agreement of Trade Facilitation and EAC Instruments. The Republic of Uganda committed to follow up with relevant institutions to allow transit trucks carrying fish to go through Ugandan territory without any restrictions or interceptions in the Uganda territory.
2.The Senior Officials noted that the act was against Trade Facilitation Laws on goods in Transit urged the Republic of Uganda to respect the free movement of transit cargo and allow transit fish from RSS, Kenya and Tanzania to transit freely to Democratic Republic of Congo. Transit goods should not be subjected to TBT regulations under WTO Agreement of Trade Facilitation and EAC Instruments.
The Republic of Uganda informed the Senior Officials that an investigation has been commissioned and is committed to follow up with relevant institutions to allow transit trucks carrying fish to Democratic Republic of
Congo to go through the Uganda territory without any restrictions or interceptions.
The Sectoral Council on Trade, Industry, Finance and Investment urged the Republic of Uganda to agree fish on transfer to the Democratic Republic of Congo and other Partner States right of passage without any restrictions by 31st December 2024 and report to the 46th Sectoral Council for Trade , Industry, Finance and Investment (EAC / SCTIFI 45 / Directive / 50). |
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NTB-001-178 |
8.8. Issues related to transit |
2024-05-13 |
Uganda: kasindi |
Democratic Republic of the Congo |
In process |
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Complaint:
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On May 13, 2024 the vehicles of certain economic operators transporting salted fish from South Sudan, Kenya and Tanzania in transit through Uganda destined for the DRC are blocked in Uganda. The reason given by the protection unit was that these vehicles transported small fish whose marketing was formally prohibited in Uganda |
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Progress:
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1. The RMC of 17th October 2024, noted that this act is against Trade Facilitation Laws on goods in Transit and urged the Republic of Uganda to respect the free movement of transit cargo and allow transit fish from RSS, Kenya and Tanzania to transit freely to DRC. Transit goods should not be subjected to TBT regulations under the WTO Agreement of Trade Facilitation and EAC Instruments. The Republic of Uganda committed to follow up with relevant institutions to allow transit trucks carrying fish to go through Ugandan territory without any restrictions or interceptions in the Uganda territory.
2.The Senior Officials noted that the act was against Trade Facilitation Laws on goods in Transit urged the Republic of Uganda to respect the free movement of transit cargo and allow transit fish from RSS, Kenya and Tanzania to transit freely to Democratic Republic of Congo. Transit goods should not be subjected to TBT regulations under WTO Agreement of Trade Facilitation and EAC Instruments.
The Republic of Uganda informed the Senior Officials that an investigation has been commissioned and is committed to follow up with relevant institutions to allow transit trucks carrying fish to Democratic Republic of Congo to go through the Uganda territory without any restrictions or interceptions.
The Sectoral Council on Trade, Industry, Finance and Investment urged the Republic of Uganda to agree fish on transfer to the Democratic Republic of Congo and other Partner States right of passage without any restrictions by 31st December 2024 and report to the 46th Sectoral Council for Trade , Industry, Finance and Investment (EAC / SCTIFI 45 / Directive / 50). |
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NTB-001-169 |
7.2. Discrimination |
2024-01-01 |
Burundi: Rugerero |
Tanzania |
In process |
View |
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Complaint:
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Republic of Burundi is charging USD 152 Flat rate on Road user Charges from Kobero/Kabangato Bujumbura which is equivalent to USD 65.5 per 100KM, While Tanzania is charging USD 10 per 100KM. This discriminatory charge is contrary to directives made on the 18th Meeting of Sector Council on Transport,Communication and Meteorology |
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Progress:
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Directives from 18th Sectoral Council on TCM:
The 18th Sectoral Council (TCM) Directed:
(a) Partner States to apply the distance + weight (axles) charging principle;
(b) Partner States that use flat rates to abolish them and adopt distance + weight (axles) charging principle.
(c) Partner States to charge Road User Charges based on the following three categories of vehicles:
● Buses;
● Trucks of three or less axles; and
● Heavy Goods Vehicles of more than three axles (truck with a drawbar trailer or articulated vehicles / semi-trailers);
(d) Partner States applying COMESA harmonized rates between themselves to continue doing so;
(e) Partner States to reciprocate the distance + weight (axles) rates charged by counterpart states;
(f) The Secretariat to prepare Terms of Reference for a study to review the existing Road User Charges and develop harmonized charging formulas to be applicable in the EAC;
(g) Secretariat to mobilize funds for the study in (vi) above;
(h) Foreign registered vehicles to be charged RUCs on the basis of a round trip from the point of entry to the destination and back provided the destination is within the country of entry;
(i) Partner States to always display the gazetted RUC rates at all points of entry; and
(j) Partner States prepare a schedule of distances and their respective computed charges from their point of entry to various destinations within their respective territories and display them at all points of entry.
Updates from the 45th Council of Ministers:
The NTBs on Road User Charges were also considered by the 45th Council of Ministers which noted the following submission from Partner States:
The Republic of Rwanda informed the Council that:
(a) The decision of TCM to calculate the Road User Charges based on weight and distance is discriminatory in nature. It favors big states and discriminates against smaller ones. In view of the above, Rwanda being a small state and landlocked as well cannot accept being punished based on its size.
(b) The EAC Partner States had gone beyond this level by harmonizing fees and charges. The harmonization of charges, Levies and fees is ongoing. From 1 7 to 21 June 2024 in Entebbe - Uganda, the Community convened a regional meeting to identify and compile Fees, Levies and charges in Agriculture and Transport Sectors. The Republic of Rwanda proposes to continue in the same spirit of harmonizing charges and fees by putting in place flat rates.
(c) That Road User Charges which are calculated based on axle load and distance should only apply to cargo trucks which originate from non-EAC Partner States i.e. SADC & COMESA Countries. EAC Partner States should enjoy equal benefits of regional integration by removing anything identified as barriers
(d) That high transportation costs, including levies, fees, and charges, result in higher final prices, impacting businesses, trade, and end consumers, particularly in landlocked countries.
(e) There is a need for the EAC to agree on fair and fact-based Road User Charges, not only focusing on micro-level factors like axle load / weight and distance but also considering other factors that favor all of us as a region
(f) There is a need to do a study to determine the impact of the Road User Charges on the EAC economies.
The Republic of Burundi informed the Council that:
(a) The bilateral meeting between the Republic of Burundi and the United Republic of Tanzania as directed by the TCM has not yet been convened by the Secretariat; and
(b) They were still consulting on the matter.
The Council therefore observed that:
(a) Road User Charges are intended for infrastructural development and maintenance, end-to-end facilitation of transportation, and not revenue; and
(b) All the Partner States participated in the meeting of the Sectoral Council on TCM that adopted the proposals and recommendations of the Sectoral Council on TCM on harmonization of Road User Charges.
The Council directed the Secretariat to refer the Harmonization of Road User Charges in the Community back to the Sectoral Council on Transport Communication and Meteorology (TCM) for consideration and report back to the 46th meeting of Council (EAC / CM 45 / Directive 56).
Update from the 19th Sectoral Council on TCM:
The 19th Sectoral Council on TCM considered the matter and received inputs from Partner States as follows:
United Republic of Tanzania
Tanzania provided a presentation containing the background, findings and recommendations on the issues of Road User Charges as follows:
(i) Prior to the 18th TCM, United Republic of Tanzania was charging a rate of USD 16 / 100km for vehicles over three axles and USD 6 / 100 km for vehicles of up to 3 axles;
(ii) After the 18th TCM, United Republic of Tanzania reviewed her rates to USD 10 / 100km for vehicles above three axles and USD 06 / 100 km for vehicles below three axles
(iii) Under the road-user principle, road users are supposed to pay RUCs to compensate damage caused by vehicles;
(iv) There is need for non-discriminatory charging for road users from foreign vehicles;
(v) Studies reveal that the principles to be used to calculate RUCs should be foreign operators to pay for road use; non-discrimination and charges related to damage caused on the road infrastructure.
Uganda
Uganda submitted that:
(i) All roads are paid for by citizens through taxes and there are no free roads
(ii) Roads have a design life, and the main cause of deterioration is the weight (load carried by vehicles), and the distance moved. The heavier the weight carried the more the degradation and the longer the distance the more the degradation; hence the higher the repair costs required;
(iii) Road user charges are not profits for utilization of the roads but a contribution for the maintenance and repair of the roads;
(iv) The position of the 18th Sectoral Council of TCM is not discriminatory at all as it stipulates that whoever degrades the roads should meet a proportionate contribution to their repair and maintenance; moreover, all Partner States were involved in making that decision;
(v) The weight + distance consideration in the road user charge is an equitable basis for contributing to the maintenance and repair of roads;
(vi) Tanzania has already carried out a study similar to the one being proposed by some Partner States whose results were shared in the meeting, and they support the weight + distance basis for determining the road user charges;
(vii) Deferring the decision on the user charges will cause an unnecessary vacuum which will have serious effects in the road sector; the largest mode of transport at the moment.
The Republic of Uganda therefore supports the position of the 18th TCM.
Burundi
Burundi was of the view that landlocked countries should not be disadvantaged to access the world markets through high transit charges along coastal countries. The fixed rate for RUCs should be maintained. The RUCs include fuel levy for road maintenance, vehicle license fees, international transit fees and others such as congestion fees. The concern raised by Burundi is that RUC should be restricted to transit fees. The road user from neighboring countries pay for damage to the road network is catered for by the fuel levy.
Rwanda
Rwanda was of the opinion that the rates should be determined by the Committee responsible for fees, charges and levies since that committee handles all sectors of the economy that includes all modes of transport. What was needed was the timeline within which to harmonize the charges. The charges incurred by transporters are actually borne by the citizens, who are the end users of the cargo being transported.
Kenya
Kenya supports the directives of the 18th TCM. However, EAC Secretariat was supposed to prepare TORs for a regional study on harmonized RUCs. Alternatively, the study could be done by a TWG. Through a bilateral arrangement, Kenya and Tanzania harmonized their charges to comply with COMESA rates. But the proposed study by the Secretariat should take into account the principals. further, the quality of roads in the region are not the same, hence there was a need to harmonize the road quality standards so that the cost of maintenance of roads is similar for all countries.
The Secretariat clarified that the draft TORs had been prepared but needed to be updated and submitted to Partner States for review in two weeks. Regarding the modality for the study, the TCM had agreed that the study be carried out by an independent consultant oversighted by a technical working group. The issue of RUCs is also an agenda in SADC and COMESA and, therefore, is a Tripartite issue. Currently discussions are ongoing with the EU and TMA, and it is hoped that a solution will be found.
Conclusion
Uganda, Kenya and Tanzania were of the opinion that the principles of charging agreed by the 18th TCM (distance + weight) should be maintained, as the region awaits the outcome of the study by the Secretariat. However, Rwanda and Burundi positions are that the charges should be further analyzed by the Committee on rates, fees and levies.
The meeting noted that the 19th TCM among others reiterated its directive to Partner States applying the COMESA rates on RUCs as directed by the 18th TCM (EAC / TCM 19 / Directive 08).
The Republic of Rwanda and Republic of Burundi were of the view that the study should come first before implementation of the TCM Directives.
Permanent / Principal / Under Secretaries noted the need for the study by TCM on harmonization of road user charges, as they have direct impact on the cost of doing business in the Region and be subjected to the joint consideration by the Sectoral Council on TCM and SCTIFI.
The Sectoral Council on Trade, Industry, Finance and Investment took note of the directives of the Sectoral Council on Transport, Communications and Meteorology on the harmonized road user charges; and recommended to Council to direct the Secretariat to convene a joint meeting of the Sectoral Council of the Sectoral Council on Transport, Communications and Meteorology and Sectoral Council on Trade, Industry, Finance and Investment to consider the recommendations of the study on the harmonization of road user charges once finalized by the Sectoral Council on Transport, Communications and Meteorology (EAC / SCTIFI 45 / Directive / 47). |
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NTB-001-168 |
3. Technical barriers to trade (TBT)
B11: Prohibition for TBT reasons |
2024-05-14 |
South Africa: Maseru Bridge |
Lesotho |
New |
View |
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Complaint:
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We have been told by Port Health via SAHPRA that as per regulations 6 & 7 of the Medicines Control Act of 1965, we are no longer allowed to transport medications to our customers in Eswatini by road In- transit through South Africa. This is despite the fact that we have done so since May of 1990 up 13 May 2024. We have 2 order ready, packed and waiting to be supplied, but we are being prevented from making declarations to deliver to our customers.
This summary decision to prevent Trade with Eswatini is totally unacceptable. We ask for your help to resolve this issue urgently! |
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Products:
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3003.10: Medicaments containing penicillins or derivatives thereof with a penicillanic acid structure, or streptomycins or derivatives thereof, not in measured doses or put up for retail sale, 3003.20: Medicaments containing antibiotics, not in measured doses or put up for retail sale (excl. medicaments containing penicillins or derivatives thereof with a penicillanic acid structure, or streptomycins or derivatives thereof) and 3003.31: Medicaments containing insulin, not in measured doses or put up for retail sale |
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NTB-001-167 |
5.5. Import licensing requirements |
2024-05-16 |
South Africa: All border crossings by road, air or sea |
Namibia |
New |
View |
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Complaint:
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Nakara (pty) , a Namibian company formally requests a dispensation from the South African Veterinary (SA VET) import permit required for imports of Namibian finished leather. Nakara (pty) Ltd, a Namibian tannery, has maintained an unblemished record and has never been implicated in any wrongdoing in the past. However, due to the current regulatory framework, we find ourselves inadvertently impacted by the necessity of the SA VET import permit on Namibian leather exports. It is important to note that no other country imposes such a requirement on imports of finished leather into South Africa. South Africa is Nakara's biggest export market and the aforementioned unnecessary NTB puts Nakara into a competitive disadvantage. A disadvantage that hinders further growth in the trade relationship between Namibia and South Africa in the leather sector, both being members of the SADC region. |
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Products:
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4107.99: Leather "incl. parchment-dressed leather" of the portions, strips or sheets of hides and skins of bovine "incl. buffalo" or equine animals, further prepared after tanning or crusting, without hair on (excl. unsplit full grains leather, grain splits leath |
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