| Complaint number |
NTB Type
|
Date of incident |
Location (additional) |
Reporting country or region |
Status |
Actions |
|
NTB-001-074 |
7.1. Arbitrariness |
2022-08-19 |
Namibia: Namibia Vet Authroities |
South Africa |
New |
View |
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Complaint:
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a. On the 19th August 2022, a Nestle Cremora stock was held at the border in Namibia, but subsequently released 2 days later. To trade export, Nestle Cremora into Nambia , Nestle Cremora products are now required to be accompanied by a Vet Import Permit to enter Nambia. The authorities there argue that CREMORA is a dairy product and as such should be accompanied by Vet Import Permit. Nestle is arguing that CREMORA is a non-dairy product as ingredients indicate.Nestlé CREMORA® is composed of the following ingredients:
i. Glucose syrup solids, Vegetable Oils (Palm Kennel Oil and Palm Fruit), Stabilisers (E340ii, E451i). Sodium Caseinate (milk protein), Hydrolised Wheat Protein (gluten), Emulsifier (E481), Salt, Anti-caking Agent (E551), Flavouring, Colourants: Riboflavin (E101i) and Beta Carotene (E160a). DocuSign Envelope ID: CE740444-68E4-45B9-A6C0-69A8F1392060 – 2
ii. Sodium Caseinate which is a milk protein contributes about 0.8% of the recipe with ±0.2% milk protein level. 1 – this is below requirements for dairy products.
b. Nestle therefore, confirms that CREMORA® is a non-dairy creamer based on the ingredients used on the product. That CREMORA is labelled a “Coffee & Tea Creamer” is complying with the Imitation Dairy Standard in R1510: Dairy & Imitation Dairy Product Regulation of South Africa. Labelling regulations requires that Nestlé CREMORA® is classified as a “Coffee & Tea Creamer” and that its front-of-pack is labelled as such. Labelling regulations further denote other requirements to which the Nestlé CREMORA product and its packaging must comply with
c. Also Cremora’s tariff code is classified as HS 2106.90.09 Food preparations not elsewhere specified or included – Other.
d. The exact date when the truck was held up at the border was the 19th August 2022 and prior to that we had no episode similar to this. During August, there was no financial impact as the orders were allowed with the warning that the next shipment (if not preceded by the paper work) will be sent back, however, the order for September that Nestle in possession of is valued at R 2,841mio. |
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Progress:
|
During a bilateral meeting facilitated by the SADC Business Council held on 10 October 2022, it was agreed that the issue was not related to misclassification of Cremora but rather, the introduction of import permits by Namibia. The SADC BC will engage the Namibia Ministry of Industry representatives to set up a follow up meeting with the Ministry of Veterinary (Namibia) who will provide clarity on the introduction of import permit as there relate to Nestle and to Cremora |
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NTB-001-106 |
1.1. Export subsidies |
2022-07-05 |
COMESA |
Zambia |
New |
View |
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Complaint:
|
• Multiple duties and taxes within neighbouring countries (Despite trade support treaties like COMESA/SADC etc.) defeat the purpose of promoting trade among African countries.
• Porous border smuggling and undervalued products at official borders wipe out the business viability for structured players like Tradekings.
• Lengthy Compliance processes, Multiple agency approvals and complex certification requirements further discourage sincere exporters as these layers increase the product turnaround time and further increase RTM cost and delivery time.
For example: Tanzania/Zimbabwe - COC, Inspection, Route plan B, Importer licenses & various agency registrations (Multiple window clearance, COMESA certificate). |
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NTB-001-085 |
1.4. Preference given to domestic bidders/suppliers |
2022-07-01 |
Kenya: Customs |
Uganda |
New |
View |
|
Complaint:
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Kenya's restriction of supplies to the Kenyan Electricity Supply Industry (ESI) to only Kenya originating cables and other ESI materials by Kenya (Public Bid Notice ) |
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NTB-001-110 |
1.7. Discriminatory or flawed government procurement policies
Policy/Regulatory |
2022-07-01 |
|
Kenya |
New |
View |
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Complaint:
|
United Republic of Tanzania subject a discriminatory treatment to Kenyan export/transfer on products of animal and animal products despite their commitment in the bilateral meeting to amend the Act to resolve the discriminatory charges on the Kenya animal and animal products by June 2022.
Tanzania charges descriminatory meat products an import fees of Tshs 3,000 per kilogram (Kg) for imports consignment. The fees is contained in the animal diseases (animals and animal products movement control) .(amendment) regulations, 2022 of the United Republic of Tanzania that came into operation on 1st July 2022. These charges have rendered Kenyan exports especially milk and milk products, meat and meat products including sausages uncompetitive in the Tanzanian market while Kenya facilitates Tanzania meat and meat products sausages into Kenya without any discrimination.
These charges contravene the GATT 1994 Art III on National Treatment, Articles 1 and 75 (6) of the Treaty as well as Articles 1 (1) (definition of imports) and 15 (1) (a) and (2) (National Treatment) of the Customs Union Protocol and Article 6 (1) of the Common Market Protocol of the Community Laws.
The charges are also in violation of Article 10 of the Custom Union Protocol that obligates Partner States to remove all internal tariffs and other charges of equivalent effect.
Kenya urges:-
a)Tanzania to abolish these prohibitive discriminatory charges and treat our animal and animal products as from the local market and accord same rate as their own without discriminating not to call it import as import is from outside EAC.
b) URT to abolish the discriminatory charges as per the customs union protocol.
d) URT to treat Kenya meat and meat products as local and not as an import.
C)URT to stop restricting the quantities to be imported/transfered by the Kenya companies.
In addition URT charges xthe following discriminative charges:
1) URT charges import fee of 2% FOB by Tanzania Meat Board
2) 0.4% on FOB by Tanzania Atomic Energy
3) 0.2% FOB by Weight and Measure Agency
Kenya request URT to consider abolishing the discriminatory charges which are equivalent import duty prohibited in the EAC Protocal.
On the contrary Kenya facilitates Tanzania sausages without any charge.
This is really unfair practices where URT is charging import charges to Kenya products despite Kenya being in the EAC Customs union where we transfer products and not import |
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Progress:
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The 34th RMC noted that the NTB was new. URT reported that they would consult the relevant stakeholders and revert during the 35th RMC |
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NTB-001-070 |
1.7. Discriminatory or flawed government procurement policies |
2022-06-30 |
Tanzania: Namanga |
Kenya |
In process |
View |
|
Complaint:
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URT charging Kenya an import discriminatory Excise Duty introduced vide URT Finance Act 2022. Additionally, some consignments are discriminatively subjected to Tsh.1000/kg not anywhere in the URT Finance Act 2022. The same excise duty is not applicable to the same or like products produced in URT hence creating unfair competition between the Partners States Originating products.
This violates the EAC Treaty Article 75(6) and Article 15 of the EAC Common Market Protocol on the establishment of the East African Community Customs Union where Partner States undertook to refrain from enacting legislation or applying administrative measures which directly or indirectly discriminate against the same or like products of other Partner States.
Section 2 of the East African Community Customs Management Act, 2004 defines import as to bring or cause to be brought into the Partner States from a foreign country, and export as to take or cause to be taken out of Partner States. Accordingly, Article 8 of the Treaty for Establishment of East African Community, EAC Community Laws take precedence over similar national laws on matters pertaining to the implementation of the Treaty |
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Progress:
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During the Regional NTBs Forum,URT informed the meeting that the complaint is not an NTB but a charge of equivalent effect which is like what is in the Kenya’s Finance Act of 2022. This is a result of non-harmonization of domestic taxes in the Region. The Republic of Kenya informed the meeting that the Kenya Finance Act is not discriminatory and hence the Charge on Confectionary Sugar by URT is an NTB and should be resolved by abolishing the discriminative fees. The Trade Committee meeting recommends that the process of harmonizing the fees, levies and charges should be fast tracked. During the 41st SCTIFI meeting Kenya observed that confectionary products from Kenya should not be treated differently from confectionery products produced in Tanzania. At the 41st SCTIFI meeting, the Republic of Kenya observed that NTB-001-070: “URT discriminatory charges of import TSh.700 and unfounded charges of Tsh.1000 to Kenya confectionary, sugar and sugar products.” The EAC TBP submissions has referred to the excise duty as fees and subsequently recommended the process of harmonizing the Fees, levies and charges should be fast tracked. Kenya’s submission is that the description of the charges as fees is erroneous. The charge is an excise duty as contained in the United Republic of Tanzania Finance Act of 2022 and the custom entry presented as evidence. This measure is therefore disciplined under Article 15 of the Protocol establishing the EAC Custom Union and not subject to the process of harmonization of fees, levies and charges. The excise duty discriminates transfers of confectionary, sugar and sugar products from Kenya which are levied Tshs 700 per kilogram against locally produced like-products which are levied Tshs 500 per kilogram. This measure is a violation of Article 15 on National Treatment which prohibits Partner States from imposing, directly or indirectly, on the products of other Partner States any internal taxation of any kind in excess of that imposed, directly or indirectly, on similar domestic products In addition, in the custom entry presented as evidence, the Kenya exporter has been charged an excise duty of Tshs 1,000 per kilogram which is not justified by the existing Tanzania excise law (Tshs 700). Kenya therefore requested the United Republic of Tanzania to accord Kenyan transfers of confectionaries and sugar products the same treatment as accorded to similar domestic products at Tshs. 500. |
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NTB-001-078 |
1.2. Government monopoly in export/import
Policy/Regulatory |
2022-06-13 |
Kenya: Mombasa sea port |
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In process |
View |
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Complaint:
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The government of South Sudan through the Ministry of Transport on 25 Feb 2022 had request the government of Kenya through the Ministry of Transport to facilitate the clearing of all South Sudan cargo at Nairobi Dry Port by moving all containerize cargo by rail and to be cleared at a Private Container Freight Stations (CFS) Autoport Freight Terminals Ltd. When the directive was implemented on 13 June 2022, Stakeholders and the private sector in particulars did not appreciate the move and it see as monopolistic in nature and it did increase the cost of doing business for South Sudan importers, This was brought to the attention of the Ministry of Trade and Industry South Sudan which is the line ministry, The ministry of trade communicated to ministry of transport South Sudan on the implication raise by the private on the cost of import and the monopoly fact, after the consultation between the two ministry in South Sudan, The minister of Trade and Industry wrote two communication letters to the Ministry of Trade Kenya on 23rd May 2022 and Ministry of Transport Kenya on 13 June 2022. However, all the communication had not been responded to from Kenya ministries mention, on 28 July 2022 Members of Parliament summon the ministries of Trade and Transport and resolve to Suspend relocation of South Sudan Cargo via Nairobi to protect South Sudanese and the Minister of Transport South Sudan was requested to revoke his letter to the Ministry of Transport Kenya to allow South Sudanese cargo owner to clear their goods directly from the Port of Mombasa. On 28 July 2022 the Ministry of Transport South Sudan wrote to his counterpart in Kenya requesting the suspension of his previous letter dated 25 Feb 2022. All those communications did not bear fruit on trade facilitation update. Unfortunately on 4th October 2022 the Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works. Wrote a letter to the National Treasury and Planning Kenya informing the Cabinet Secretary on not receiving any formal communication from South Sudan Government and for his guidance all South Sudanese cargo is to be rail and cleared at Nairobi.
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Progress:
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1. The Republic of South Sudan informed the meeting that, on 25th February 2022, the Republic of South Sudan requested the Republic of Kenya to clear cargo at Nairobi but then realized that the costs were higher in Nairobi than Mombasa by USD 500 - USD 780; the containers are supposed to be dropped back to Mombasa after clearance and drive back an empty truck to pick the cargo. It increases the cost of doing business.
It also causes delay as the RSS felt that SGR doesn’t give priority to RSS cargo. Hence, on 23rd of May, and 28th of July 2022 respectively the RSS requested the Republic of Kenya to revert to the original clearance plan of clearing in Mombasa. Kenya has since not responded to the letters from RSS. The Republic of South Sudan submitted evidence of the letters to the Republic of Kenya.
The Republic of Kenya informed the meeting that the letters had not been received and hence could not take any action. The Republic of Kenya received the copies of the letters as evidence during the RMC meeting.
The meeting agreed that the Republic of Kenya consults and revert clearance of RSS cargo from Nairobi to Mombasa.
2. The Republic of South Sudan informed the Regional meeting that, on 25th February 2022, the Republic of South Sudan requested the Republic of Kenya to clear cargo at Nairobi but then realized that the costs were higher in Nairobi than Mombasa by USD 500 - USD 780; the containers are supposed to be dropped back to Mombasa after clearence and drive back an empty truck to pick the cargo. It increases the cost of doing business. It also caused delay as the RSS felt that SGR doesn’t give priority to RSS cargo. Hence, on 23rd of May, and 28th of July 2022 respectively the RSS requested the Republic of Kenya to revert to the original clearance plan of clearing in Mombasa. Kenya has since not responded to the letters from RSS. The Republic of South Sudan submitted evidence of the letters to the Republic of Kenya. The Republic of Kenya informed the meeting that the letters had not been received and hence could not take any action. The Republic of Kenya received copies of the letters as evidence during the RMC meeting. The meeting agreed that the Republic of Kenya consults and revert clearance of RSS cargo from Nairobi to Mombasa. During the 41st SCTIFI the Republic of Kenya agreed to address the matter by 30th December 2022.
3.The 34th RMC noted that Kenya reiterated Her commitment to facilitating the transportation of RSS people and cargo. The Republic of Kenya issued a letter on that matter following a Presidential directive.The Republic of South Sudan informed that half of the RSS cargo was being cleared at the Port of Mombasa while the other half is cleared at the dry port in Nairobi. This practice of dividing the cargo is still affecting RSS trade and Kenya is requested to clear all the goods in Mombasa as per the Presidential directives. RSS Requests Kenya to share the Presidential Order and also to implement the Presidential Directives and clear all RSS the Cargo in Mombasa. |
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NTB-001-065 |
5.3. Export taxes |
2022-04-01 |
Botswana: Ministry of Finance |
South Africa |
New |
View |
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Complaint:
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Botswana government is about to introduce the Tax Stamps on all imported products and that would affect the South African Wine Industry. The Tax Stamp imposition has been confirmed by the Botswana Minister of Finance and they have appointed the Service Provide that would conduct a Research. |
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NTB-001-058 |
2.3. Issues related to the rules of origin |
2022-03-12 |
Egypt: Egypt Revenue Authority |
Egypt |
New |
View |
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Complaint:
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The Egyptian customs rejected to apply the COMESA certificate of origin issued by Madagascar attached because the signature is different. COMESA Secretariat is therefore requested to check the attached received from the shipper and advise on way forward. |
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NTB-001-048 |
3. Technical barriers to trade (TBT)
B31: Labelling requirements |
2022-01-03 |
Tanzania: Standards Authority |
South Africa |
New |
View |
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Complaint:
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Vague Labelling requirement "Statutory Warning" Clause 12 (k), rejection of the UK Chief Medical Warning which is accepted in other African countries such as Uganda, Kenya without any objection in addition to their requirement. |
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Progress:
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The stakeholder consultative meeting organized by the SADC Business Council which was attended by the concerned parties from South Africa and Tanzania and SADC Secretariat on 7 march 2022, agreed that the UK Chief Medical Officers Guidelines labelling should be retained (The UK Chief Medical Officers recommend adult do not regularly drink more than 14 units per week) provided that the Wine producer affixes an additional sticker which covers all missing information on the product package.
The additional sticker (label) should be legibly and indelibly marked.
The additional sticker should be submitted to the Tanzania Bureau of Standards for approval accompanied by the declaration letter from the Manufacturer stating that additional label originating from them and products imported in Tanzania will be labelled as such. |
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NTB-001-066 |
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2022-01-01 |
Mozambique: Delegação Aduaneira de Ressano Garcia (Road) |
Mozambique |
In process |
View |
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Complaint:
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Introduction by Autoridade Tributária de Moçambique of a SINGLE ENTRY Temporary Import Permit (TIP) at a cost of MZN700, which is currently processed manually for the majority of vehicles at Ressano Garcia's KM4 facility.
The costs are prohibitive for companies moving transit cargo from South Africa to the Port of Maputo, with 15 loads per week per vehicle a common achievement. In addition, the delays experienced by the manual processing of the TIP document adds significant cost on account of the waiting time that drivers are subjected to. The Port of Maputo has collaborated with Customs in Mozambique to collect electronic payments for the TIPs, but so far only 10 companies have taken up the use of the facility. Even those companies registered on the Port's electronic system are not guaranteed speedy processing, and delays are still experienced by drivers as they still have to queue to collect the TIP document. Electronic payments should take precedent over manual payments, but in reality this is not the case. It is common knowledge that a R50 bribe will speed up the processing of the TIP document.
The SADC Protocol on Trade is clear in its reference to the removal of tariffs and non tariff barriers. At this point, the TIP cost to one company moving 180 trucks per month, is in excess of R1,4million ZAR or USD88,000. The manual processing compromises the integrity of the system and the costs directly impact the competitiveness of the trade route for imports and transit imports into Mozambique.
With the push towards the harmonization of regulations within the SADC and TRIPARTITE region, the TIP process should be harmonized with that of South Africa which has a multiple entry TIP valid for 6 months and is processed at no cost to the user. |
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Progress:
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1. On 30 June 2022, Mozambique Focal Point reported that they were attending to the matter and will submit feedback as soon a s possible.
2.On 28 september 2022, Mozambique provided update that the legal instrument concerning the payment of 750 Meticais fees paid for issuing and extending the Vehicles Temporary Import License on the foreign carriers is under review with the aim of elimination of the requirement to pay the said fee and the introduction of the multiple entry system. |
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NTB-001-040 |
2.3. Issues related to the rules of origin |
2021-10-14 |
Tanzania: URT TRA |
Kenya |
In process |
View |
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Complaint:
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Tanzania denial of preferential market access for Apple Juice and Strawberry manufactured in Kenya while citing reasons that the products are not originating from Kenya. URT delayed the shipment instead of facilitating clearance as is required by the protocal and the EAC Rules of Origin then follow the process of reporting the matter to the secretariat for action/guidance. |
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Progress:
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1. On 02May 2022, URT Focal Point reported that: Based with conclusion from Verification report done from 15-27 July 2019, concluded that, Juices manufactured using fruit concentrated sourced locally qualify for preferential treatment under Rule 4 (1) (a). On juices manufactured using non originating concentrate the team had divergent views on how to calculate the weight of non originating material (concentrate) while considering the provision of Rule 6(1)(a). I suggest our officers (Tanzania Revenue Authority) based in Nairobi to visit the industry to verify and advise accordingly.
2. On 14 June 2022, EAC Secretariat reported that:
URT cited reasons that the products are not originating from Kenya.
The verification was done in 2019 and the two parties did not agree on the application of Rule 6 of the EAC Rules of Origin. The matter was referred to the Committee of Customs. It will be considered by the next Customs Committee in October 2022.
3.The Committee on Customs considered the matter and agreed that the two Partner States include it among the list of items to be verified in the planned bilateral verification scheduled on 15th December 2022.
4.TRA/KRA undertook a verification and it was agreed that juices manufactured by Kevian Kenya Limited and Delmonte Kenya Limited except for Grape Juice, Apple Juice, Cranberry Apple Juice Blend, and Grape Blackberry Blend qualify for preferential tariff treatment under Rule 4(1) (a) and (b) of the EAC Rules of Origin, 2015. The Report has been forwarded t the Committee on Customs for consideration.
5. The RMC noted that the Verification report was considered and approved by the Committee on Customs in May 2023. The verification recommendations had been implemented whereby the qualified products were granted preferential treatment. The report of the Customs Committee would be considered by SCTIFI in June 2023 |
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NTB-001-072 |
Misclassification of Product and subsequent wrongful incursion of tax (Sugar tax) |
2021-09-21 |
Mauritius: Mauritius Revenue Authority and customs, upon clearing consignmnet |
South Africa |
In process |
View |
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Complaint:
|
Misclassfication of Sweetened Condensed MILk as a beverage.
Misuse of tariff code - where others use 0402.99.90 MRA uses 0402.99.10. Furthermore;
Post the 2020 budget, we were made to understand by the Mauritius Chamber of Commerce and Industry that sweetened condensed milk (SCM) doesn’t attract sugar tax. Thus, we wrote to the Director of Excise duty to seek clarifications on the application of sugar tax.
The director requested us to apply for a ruling without giving any further explanations.
We filled in the ‘Request for ruling on H.S Classifications of goods’ form in Dec. 2020 and submitted all relevant technical documents requested on the form and a sample of SCM to MRA.
However, we didn’t hear from MRA since there was a lockdown in March. We have cleared 3 consignments of SCM in March, June and July without paying the sugar tax and only received the MRA - Customs Declaration Form in August while clearing SCM consignments, and we were asked to pay for the sugar tax.
We took cognizance of the ruling only in August and this is when we started the objection process.
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Progress:
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1. On 24 August 2022, Mauritius Focal Point reported that the Customs Dept of Mauritius is looking into the matter and will submit a report as soon as possible.
2. Mauritius Customs reported that : Under the Customs Act whenever a person is dissatisfied with a ruling may object to the ruling.in this case, an objection has been made on 27.09.2021.The objection is being dealt with independently by the objection directorate. An update has been requested from them.
3. On 30th August 2022, Mauritius provided further update that:
The Objection Directorate has maintained the tariff classification under HS Code 0402.99.10 as provided by the Mauritius Revenue Authority Customs Department and the objection was disallowed. A Notice of Determination was issued to this effect on 15/11/2021.Applicant (Nestlé’s Products (Mauritius) Ltd ) made representations to the Assessment Revenue Committee (ARC) on 10/12/2021.The case was called Pro Forma before the ARC on 01/07/2022. Hearing by ARC on this case is still awaited. An update will be provided upon availability. |
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Products:
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0402.99.90: --- Other |
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NTB-001-028 |
2.3. Issues related to the rules of origin |
2021-09-07 |
South Africa: SARS |
Mauritius |
In process |
View |
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Complaint:
|
On 6 September 2021, the SADC Business Council convened an online Non Tariff Barrier Workshop with the private sector in Mauritius. In the meeting, participants indicated challenges in the application for SADC for export to South Africa. Mauritian exporters need to make a fresh application to customs each and every time they export to South Africa even if the manufacturing process remains the same and same materials are used. They need to resubmit all documents (raw material import documents, BOE, Stock movement statement etc) at each shipment. This is time consuming and complicates export procedures. It also put exporters at risk if they don’t get the certificate or it is delayed and the goods have already been produced.
Mauritian exporters request the region's policy makers to develop a longer certificate of origin that can be used repeatedly for similar shipments. And may be a yearly review/assessment by Customs for renewal |
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Progress:
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1. On 11 October 2021, Mauritius reported that:
The processing and submission of preferential certificates of origin are effected electronically and are issued on a consignment basis in compliance with SADC Protocol on Trade and Section 14(4) of the SADC Rules of Origin Regulations. Our national legislation is in line with the former. The proposal to develop a longer certificate of origin that can be used repeatedly for similar shipments should be addressed to the proper organ of SADC
2. On 20 October 2021, South Africa Focal Point provided following feedback from SARs:
a)There is nothing wrong with the requirements and this is what we are doing in our policy https://www.sars.gov.za/sc-ro-02-administration-of-trade-agreements-external-policy/
b)SARS require regular Traders to apply for an Origin Determination that is available under Section 49(8) of the Customs and Excise Act No. 91 of 1964 as amended. This is a best practice that can be included in the Proposed Amendments to Annex I that is being long in the making.
3. On 12 May 2022, South Africa Focal Point recommended that the NTB be considered resolved on the basis of above . |
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NTB-001-029 |
2.3. Issues related to the rules of origin |
2021-09-07 |
South Africa: South Africa Revenue Services ( SARS) |
Mauritius |
In process |
View |
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Complaint:
|
On 6 September 2021, the SADC Business Council convened an online Non Tariff Barrier Workshop with the private sector in Mauritius. In the meeting, participants indicated challenges in the application for SADC for export to South Africa. Mauritian exporters need to make a fresh application to customs each and every time they export to South Africa even if the manufacturing process remains the same and same materials are used. They need to resubmit all documents (raw material import documents, BOE, Stock movement statement etc) at each shipment. This is time consuming and complicates export procedures. It also put exporters at risk if they don’t get the certificate or it is delayed and the goods have already been produced.
Mauritian exporters request the region's policy makers to develop a longer certificate of origin that can be used repeatedly for similar shipments. And may be a yearly review/assessment by Customs for renewal |
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Progress:
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1. On 12 May 2022, South Africa Focal Point provided the response by SARS below and recommended that the NTB be resolved on that basis:
a)There is nothing wrong with the requirements and this is what we are doing in our policy https://www.sars.gov.za/sc-ro-02-administration-of-trade-agreements-external-policy/
b)SARS require regular Traders to apply for an Origin Determination that is available under Section 49(8) of the Customs and Excise Act No. 91 of 1964 as amended. This is a best practice that can be included in the Proposed Amendments to Annex I that is being long in the making.
Therefore, this matter should be marked as resolved |
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NTB-001-026 |
8.2. Administrative (Border Operating Hours, delays at border posts, etc.) |
2021-08-18 |
Zimbabwe: Beitbridge |
South Africa |
New |
View |
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Complaint:
|
There has been noticeable decrease in the volume of traffic crossing the Beitbridge border on the Zimbabwean side of the border for a few months now. On a normal working day +/- 1 500 trucks can cross the North South Corridor Border. The crossing entails Customs releases with the verification of other Government agencies to test and verify safety and security of the goods (Consignment).
However, in the last few months, the number has reduced to a maximum of +/- 400 trucks crossing the North South corridor. The drop in the movement of cargo is a combination of many factors and cannot be blamed solely on the hard infrastructure layout. An alignment with clear roles, responsibility, risk management profile , screening and removing of old outdated manual processes is required.
The challenge emanates from lack of harmonisation by enforcement Government agencies operating at the border which creates a huge bottleneck with minimal peace of mind, i.e SAPS on the South African side, Zimbabwe with its multiple Other Government Agencies involvement and linkage to a Private security company controlling the flow of cargo movement.
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NTB-001-030 |
2.3. Issues related to the rules of origin |
2021-08-17 |
South Africa: SARS Customs |
Mauritius |
In process |
View |
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Complaint:
|
On 6 September 2021, the SADC Business Council (SADC BC) convened an online Non Tariff Barrier Workshop with the private sector in Mauritius. In the meeting, participants indicated challenges with variances in alignment of HS codes between Mauritius and South Africa(RSA).
1. …For exports from Mauritius to RSA, where a SADC is applicable, an exporter can insert 10 HS CODES on one SADC certificate. This is because the SADC certificate has now become electronic while before it was manual.
2. When it was manual, if someone had a nice handwriting, the person could insert more than 10 HS CODES as long as it legible.
3. When importing from RSA, Mauritian importers receive SADC certificates with 1 HS CODE only. Meaning RSA issues SADC certificates with ONE Line HS code only.
4. Thus if a Mauritian exporter is sending 10 different items to RSA and SADC is applicable, only one SADC certificate will be issued by Mauritian Revenue Authourity CUSTOMS.
5. On the other hand, if a SOUTH AFRICAN exporter sends only 3 different items to Mauritius, and of course SADC is applicable, SARS will issue THREE sadc certificates.
6. IMPORTANT TO NOTE THAT: SADC certificates are payable at both ends. Meaning a local broker will charge an exporter when issuing a SADC certificate and SARS will charge a SOUTH AFRICAN exporter when issuing on their side.
If a Mauritian exporter has 18 ITEMS to be exported out of Mauritius and a SADC certificate is applicable, he/she will have to have TWO SADC certificates only WHILE on the other hand, if a Mauritian imports 18 ITEMS from RSA, he/she will have 18 SADC certificates with each certificate obtained at a cost which represents a huge amount for the one who pays for these certificates. |
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Progress:
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1. On 11 October 2021, Mauritius Focal Point reported that: HS Codes are harmonized at 6 digit level internationally. However, at national level, as from 7th digit onwards, each Customs administration under the SADC are using their nationally-defined HS Codes. With respect to paragraph 6, it is to be noted that the SADC Certificate of Origin are processed electronically for multiple items (up to 10 items per certificate) and are issued by the MRA Customs Department in hard copy, free of charge.
2. On 12 May 2022, South Africa Focal Point provided following feedback from SARS and recommended that the NTB be resolved on those basis :
a)There is nothing wrong with the requirements and this is what we are doing in our policy https://www.sars.gov.za/sc-ro-02-administration-of-trade-agreements-external-policy/
b)SARS require regular Traders to apply for an Origin Determination that is available under Section 49(8) of the Customs and Excise Act No. 91 of 1964 as amended. This is a best practice that can be included in the Proposed Amendments to Annex I that is being long in the making.
Therefore, this matter should be marked as resolved |
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NTB-001-025 |
8.1. Government Policy and regulations |
2021-08-10 |
Malawi: SONGWE KARONGA BOX 8 WEIGHBRIDGE |
Rwanda |
New |
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Complaint:
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The Rwanda truck carrying Fertilizer TPT from Tanzania to Malawi Lilongwe was refused to enter Malawi and charged USD 1000 for violating third country rule a provision that is being applied betwen Zambia and Malawi to protect their national transport operators against foreign transporters not registered in Malawi. This is a discrimination against other trucks transporting goods to Malawi |
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Progress:
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1. On 14 September 2021, Malawi Focal Point advised that the complaint was being attended and would revert with concrete feedback as soon as possible.
2. On 13 October advised that "The Third Country Rule is operational in Malawi and is supported by the bilateral Agreements in force between Malawi and its neighbouring countries. The charges were gazetted as per the attached Regulations" However it is observed that this is a Non tariff Measure . It is recommended that The COMESA Secretariat NTB Unit facilitates consultations with relevant authorities to get this matter considered . |
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NTB-001-023 |
8.1. Government Policy and regulations |
2021-07-26 |
Democratic Republic of the Congo: The DRC government. Ministry of Transport |
South Africa |
New |
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Complaint:
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The DRC has just published legislation prohibiting foreign vehicles from loading mining products and to remove (export) them from the DRC. The unofficial translation of the new DRC amendment:Article 4-It is strictly forbidden for any vehicle not registered in the Democratic Republic of Congo to load goods, in this case mining products from the national territory; In the event of violation of the above paragraph, the goods are immediately unloaded at the shipper's risk.
According to an unofficial translation of article four of the amendment affecting the DRC's road freight sector, "it is strictly forbidden for any vehicle not registered in the DRC to load goods, in this case mining products, from the national territory”.
The article continues, saying "in the event of violation of the above paragraph, the goods are immediately unloaded at the shipper's risk”. The decision is expected to have a wide-ranging impact on exports out of the DRC's Copperbelt region, with some transporters going so far as to say that it's wholly impractical and a protectionist strategy that is bound to boomerang against the government in Kinshasa. |
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NTB-001-087 |
2.6. Additional taxes and other charges |
2021-07-01 |
Kenya: Customs |
Uganda |
New |
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Complaint:
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Imposition of 35% Excise duty on Ugandan LPG gas cylinders |
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NTB-001-031 |
2.6. Additional taxes and other charges |
2021-06-30 |
Kenya: |
Egypt |
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Complaint:
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The Kenyan Government, through the Finance Act 2021, introduced a new Excise Duty on imported pasta of tariff 1902 whether cooked or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni, couscous, whether or not prepared, at
the rate of 20%. This Excise Duty is to be levied at the point of importation and is effective from 1st July 2021.
• Excise Duty is a tax imposed on goods and services manufactured in Kenya or imported into Kenya and specified in the first schedule of the Excise Duty Act (2015). This is usually considered on luxury products such as Alcohol, Fuel, Chocolates, Airtime, etc…
• Excise Duty is different from Customs Duty (imposition of tax on imports to protect local industries) Imposition of this new Excise Duty came as a surprise to us since it was not part of the Finance Bill 2021 that had been tabled before the Kenyan Parliament and was only introduced as a new amendment to the Bill on 24 June 2021 at the second reading stage, in Parliament.
• The Kenyan Constitution as well as the Public Finance Management Act requires that the Kenyan Government to call for public participation on the Finance Bill before amendment of tax laws through the enactment of the Finance Act. Unfortunately, this was not done in this case since the amendment introducing the Excise Duty was done way after public participation on the Bill had taken place.
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