Complaint

Complaint number
NTB-000-816  
NTB Type
1.1. Export subsidies  
Complaint
LACK OF PREFERENTIAL TREATMENT CONFECTIONERY PRODUCTS FROM KENYA BY TANZANIA  
Status note
During the Regional Monitoring Committee held on 14th October, 2019 Tanzania has implemented the recommendations of the verification mission on confectionaries. Hence the NTB is resolved.  
Progress update note
1. The EAC Secretariat through the letter C&T 2/2/3 dated 13th March, 2018 advised and notified the Customs that confectionaries manufactured in Kenya using materials of any heading except that of the product, qualify under EAC Rules of origin, 2015 and should be accorded Community Preferential Tariff Treatment when transferred to another Partner State.
2. Tanzania wrote to the EAC Secretariat informing the reasons for their reservations for not granting preferential treatment to confectioneries from Kenya. URT proposed that this matter be taken back to be considered by experts (KRA and TRA).

Kenya reiterates that a verification mission was conducted in June 2018 as directed by SCTIFI. The report, which was signed by Partner States who participated in the verification mission including the United Republic of Tanzania, confirmed that Kenya confectionary producing companies verified, did not benefit from sugar imported under zero duty.
Kenya’s position is that the United Republic of Tanzania accords community market access as per the findings of the verification report without further hindrance or condition. The Republic of Kenya does not find merit in the second verification proposed by the United Republic of Tanzania.
The SCTIFI meeting agreed to escalate the issue to the EAC Council of Ministers to be held in November, 2018 for guidance.

3. The EAC Council of Ministers considered the matter and agreed to refer it to the Summit of EAC Heads of State for Guidance.

4. The Summit of the EAC Heads of State deliberated on the matter and directed the Two Partner States to hold a Bilateral meeting to resolve the NTB.

5. This matter was discussed by . the Ministerial Bilateral meeting held on 23- 27th April 2019 and the two Partner States agreed to have another verification in a moths time , ( May 2019).
6.A second Verification Mission was undertaken by EAC Secretariat and the Partner States and concluded that Confectioneries qualify for preferential treatment.
The recommendations of the verification are yet to be implemented.

Tanzania informed the SCTIFI meeting of September 2019 that they had received the report and will implement the recommendations /findings by 20th September 2019.  
Policy or regulatory NTB
No 
Location
Tanzania: Tanzania Revenue Authorities (Government institution)  
Reporting Country or Region
Kenya  
Country specific trade issue
No  
Date of incident
2018-03-01  
Status
Resolved  
Date of resolution
2019-10-15  
Product Description
All products  
Total value
0  
Date reported
2018-04-19 10:17  
Modified
2019-10-15 13:37