Non-Tariff Barriers

Complaint

Complaint number

NTB-000-836  

NTB Type

2.6. Additional taxes and other charges  

Complaint

Milk exported to Tanzania attracts numerous charges collected by different institutions including Tanzania Bureau of Standards, Tanzania Foods and Drugs Authority and Tanzania Dairy Board.

Also, to import a kilogramme of milk in Tanzania, under the newly signed Animal Diseases and Animal Products Movement Control Regulations published on 31st August 2018 (Government Notice No 476) and which entered into force on 1st October 2018, Tanzania now requires to pay Tsh 2,000 on milk imported from outside the country from Tsh150. This is a 1,233% increase (https://allafrica.com/stories/201810030671.html ).

This is a total ban since milk imported cannot compete with the local one.  

Status note

URT reported to the regional meeting that TFDA does not exist, TBS and TMDA do not charge. Hence the issue of numerous charges is resolved. The Tanzania Dairy Board Charges have been revised from 2,000 to 1,000 through Government Notice number 478 of July 2022. The remaining charge is part of the ongoing process of harmonization of fees, levies, and charges. Hence the meeting agreed that the NTB is resolved.  

Progress update note

1. The meeting reviewed the list of other charges of equivalent effect imposed on dairy products and noted that not all Partner States submitted the relevant charges as directed by SCTIFI. It was recommended that PS should forward the charges to the Secretatiat for compilation and harmonization.
It was noted that most of the charges are not customs-related and there is need to write through MEAC for ministries of Agriculture and Trade to facilitate provision of the information. The Forum directed the Secretariat to officially re-write to Partner States requesting for all the information on diary charges applied on imported processed milk by 30th May 2018. The Secretariat wrote to the Partner States and Partner States are yet to respond.
The Meeting of SC on Trade recommended that Partner States should submit comprehensive charges imposed on milk and milk products to the Secretariat by 30th November 2018.
2. In the Miisterial bilateral meeting held on 19 December 2018 URT reported that it is taking steps to harmonize fees and charges in order to facilitate trade, in line with the directive of H.E the President of URT to ease the doing business environment. Regarding the delays, URT indicated that they have received testing kits and as result, food and drug tests will be conducted at the border within one hour depending on the que. URT to communicate the implementation timelines by June 2019.
3. During the regional monitoring committee meeting held from 29 April - 3 May 2019, the Secretariat reported that they had sent a letter to Partner States to submit the additional charges for harmonization.
4.The EAC Secretariat reported that they are commissioning a comprehensive Study to conduct an inventory of discriminatory Levies, Fees and Charges of Equivalent Effects imposed by regulatory institutions in Partner States and their Impact on Intra EAC Trade.
5. Rwanda reported that there is good progress on resolving the issue.
6.The Regional Monitoring Committee held on 15th October, 2019 agreed that the EAC Secretariat gives an update on the study by May, 2020.
7.The Secretariat reported that the study on discriminative fees and charges of the equivalent effect that affect trade in the region was conducted and the report was validated on 28th February 2020 via Video Conference. Tanzania did not participate in the VC meeting due to connection challenges and will submit their comments once the validated report is shared. The study recommended the establishment of a regional task force to harmonize the fees and charges.
8.During the Sectoral Committee on Trade held in September 2020, the United Republic of Tanzania requested for more time to consult on the study and provide comments. The final comments will be submitted not later than 30th September, 2020.
9. On 24th November 2020, the Secretariat reported that the comments were provided to the EAC Secretariat and they will be incorporated into the report. Another Validation meeting will be convened to finalize the report.
10. On 11 March 2021, Secretariat reported that Tanzania provided the comments which were circulated to all Partner States as working document for the NMC meetings.
10.The Secretariat wrote to the Partner States to provide names of RTF members. All Partner States have nominated members. The Secretariat will convene a meeting of the RTF by January 2022.
11. On 25 May 2022, Rwanda provided following update:
This NTB was reported to show numerous charges that are being charged by different institutions from Tanzania including those mentioned in the reported NTB. In addition, The Tanzania Revenue Authority taxes and duties at Glance of July 2018 page 16 charges import duties and states that:
"Some sensitive items are charged at a higher rate than 25% with the intention of protecting local industries. (E.g. Yoghurt milk and Cream containing sweetening matter, Cane or beet sugar and chemically pure sucrose in solid form, Sacks and bags of a kind used for the packing of goods, Worn clothing and other worn articles (mitumba)."
Animal Diseases (Animal and Animal Products Movement Control) (AMENDMENT) REGULATIONS, 2020 GOVERNMENT NOTICE NO 489A published on 29/6/2020 (page 3) impose 2000Tsh import fees per litre.
This regulations are against Common Market Protocol where by goods from any other partner states of EAC should not be charged any import duties and fees.These charges therefore clearly present how expensive it is to export Milk to United Republic of Tanzania.
12. On 14 June 2022, the EAC Secretariat submitted following report: Tanzania informed the SCTIFI meeting that TFDA was dissolved in 2019 and TBS does not charge the said charges. Furthermore, the Tanzania milk board is not responsible for packaged milk products. TBS deals with EAC Certified products under the arrangements of mutual recognition of notified standard marks as provided for in the EAC SQMT Act.
The Senior Officials noted that there was no evidence that Rwandan Traders have been affected by the Tanzania Law. The meeting therefore agreed that Rwanda should report the NTB as new if traders have been affected by the law.
During the bilateral meeting it was noted that the Republic of Rwanda will report it as a new NTB with new evidence if any.
The Sectoral Committee on Trade had agreed that the NTB was resolved.
However, during the Senior Officials Session, the Republic of Rwanda insisted that the NTB should be maintained in the TBP.The Republic of Rwanda further elaborated that the NTB was reported to show numerous charges that are being charged by different institutions from Tanzania including those mentioned in the reported NTB.In addition, Tanzania Revenue Authority taxes and duties at Glance of July 2018 page 16 charges import duties and states that:
"Some sensitive items are charged at a higher rate than 25% with the intention of protecting local industries. (E.g., Yogurt milk and Cream containing sweetening matter, Cane or beet sugar and chemically pure sucrose in solid form, Sacks and bags of a kind used for the packing of goods, Worn clothing and other worn articles (mitumba)."
And Animal Diseases (Animal and Animal Products Movement Control) (AMENDMENT) REGULATIONS, 2020 GOVERNMENT NOTICE NO 489A published on 29/6/2020 (page 3) impose 2000 Tsh import fees per liter.This is against the Common Market Protocol whereby goods from any other partner states of EAC should not be charged any import duties and fees.
These charges clearly present how expensive it is to export Milk to the United Republic of Tanzania.
The SCTIFI meeting agreed that the two Partner States resolve the matter bilaterally.  

Policy or regulatory NTB

Yes 

Location

Tanzania: Tanzania Dairy Board (Government institution)  

Reporting Country or Region

Rwanda  

Country specific trade issue

No  

Date of incident

2018-10-26  

Status

Resolved  

Date of resolution

2023-02-20  

Product Description

Computer-assisted translation

• English
• Arabic
• French
• Portuguese

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Total value

0  

Date reported

2018-10-31 16:52  

Modified

2023-02-23 11:23