Complaint

Complaint number
NTB-000-760  
NTB Type
2.3. Issues related to the rules of origin  
Complaint
Lack of preferential treatment. Payment of full CET duty on cement exports from Kenya to Tanzania due to interpretation of Chapter 25. This also affects situations where the local content is at a high percentile. Tanzania authorities attach a 35% duty to cement that is not ‘wholly produced’ in an EAC state. This is opposed to previous practice which had other categories on the rules of origin certificate that for cement included ‘value addition’ and/or ‘substantially transformed using material content not exceeding 60%’ - the Authorities do not consider these categories anymore; the rules of origin must state whether the item is either wholly produced or not.  
Progress update note
1. The Extra Ordinary SCTIFI that sat in February, 2018 directed that the EAC Secretariat coordinates a verification mission on edible oils, cement, lubricants in Kenya by 31st March 2018.
2. During the SCTIFI meeting of 16th November, 2018, Kenya reported that the NTB for Lubricants & edible oils has been resolved but the NTB on cement in respect of Clinker that is locally sourced and imported is not resolved.The Meeting of the SCTIFI directed the Secretariat and CoC to develop guidelines on applicability of separation of materials as provided by Rule 11 of the EAC Rules of Origin, 2015.
3.During the bilateral meeting in December 2018,Kenya reported that the NTB for Lubricants & edible oils has been resolved but the NTB on cement in respect of Clinker that is locally sourced and imported is not resolved.
The Meeting recommends to the SCTIFI to direct the Secretariat and CoC to develop guidelines on applicability of separation of materials as provided by Rule 11 of the EAC Rules of Origin, 2015.  
Policy or regulatory NTB
Yes 
Location
Tanzania: Tanzania Revenue Authority (Government institution)  
Reporting Country or Region
Kenya  
Date of incident
2017-05-05  
Status
In process  
Product Description
 
Total value
0  
Date reported
2017-08-02 11:13  
Modified
2017-08-02 11:13