Complaint

Complaint number
NTB-000-864  
NTB Type
2.3. Issues related to the rules of origin  
Complaint
Discriminatory treatment (Excise duty) of Kenyan manufactured products among others Juices products Kenya reported that the Juices are still charged 13% excise duty.  
Progress update note
1.Delmonte Pineapple Juice:
Uganda reported that it is difficult to differentiate between pineapple juice manufactured using the locally-acquired concentrate and juice manufactured using concentrate imported under duty remission for exports.
Therefore, Uganda could not accord preferential treatment to Delmonte pineapple Juice.
2. During the JPC held with Kenya,Uganda stated that this provision in the excise Duty Act is global and not specific to juices coming in from Kenya. This provision is under a law which is considered domestic and the country has a sovereign mandate to make provisions related to internal tax.Uganda however promised to undertake stake holder consultation on the excise duty tax and report by June 2019.
3.The Regional Monitoring Committee held on 15th October, 2019 noted that these are two separate NTBs on Juices and Pharmaceuticals and should be treated separately. The NTB on Juice was referred to the Customs Committee for resolution during the SCTIFI meeting on 10th November, 2018.
On Pharmaceuticals: Kenya and Uganda agreed to resolve the NTB bilaterally as it was agreed by Heads of State. The two Partner States agreed to update the EACS on the progress.
During the Regional Monitoring Committee held on 15th October, 2019Uganda informed the meeting that work is ongoing to resolve the NTB and would report back by November, 2019
4.During the Sectoral Committee on Trade that took place on 31st October, 2019 Uganda reported that the two Partner States agreed on how to resolve the NTB on Juice bilaterally and have agreed on the framework for resolution and will consult with the responsible agencies to resolve the NTB as agreed by November, 2019.
5.Uganda to resolve the NTB as committed in the Bilateral meeting and also sensitize its Regulatory Authorities on the implementation of EAC Provisions.
6. During the RMC meeting held on 10 August 2020, Uganda reported that national consultations were ongoing and will report in next meeting.Uganda requested for amendment on this NTB since Kenya also charges excise duty on Ugandan juices as attached in the evidence.
7. During the RMC meeting held on 1 SeptemberThe Republic of Kenya informed the meeting that there is a Court (EACJ) ruling on a similar matter and hence Uganda should implement the ruling of the Court.The Republic of Uganda informed the RMC meeting that due to budget constraints the NTB will be resolved together with the one on Pharmaceuticals by 1st July 2021.The meeting therefore agreed to escalate the NTB to the SCTIFI through the SCoT.
8. During the SCTIFI, held in September 2020, the Republic of Uganda informed that resolving this NTB has a budget implication and hence committed to resolve the NTB by 1st July, 2021.
The Republic of Kenya requested that the Republic of Uganda considers implementing interim measures while awaiting resolution of this NTB.
9.The NTB was forwarded to the Directorate of Tax and Policy in the Ministry of Finance to be resolved in the FY 2022/2023. Uganda to invite Kenya for a midterm review of the Bilateral meetings in November 2021..Kenya requested Uganda to consider an interim measure to treat Kenyan products as Uganda products.
10. On 14 June 2022, the EAC Secretariat reported that Uganda recognizes the Initial Bill under discussion may not address the current NTB raised by Kenya and the Government is taking steps to ensure that bill will address the concern, also in the same spirit, Uganda reviewed the initial bills of Kenya, and noticed also the bills are not addressing the Uganda NTBs. Therefore Uganda would recommend that the issue is forwarded to the SCTIFI to urge the 2 Partner states to ensure that the current bills under discussion in the respective Partner States should address the NTBs as agreed in Bilateral Meetings between the two Partner States in April and December 2021.  
Policy or regulatory NTB
No 
Location
Uganda: URA (Government institution)  
Reporting Country or Region
Kenya  
Country specific trade issue
No  
Date of incident
2017-11-17  
Status
In process  
Product Description
Juices


 
Total value
0  
Date reported
2019-01-14 08:05  
Modified
2019-01-14 08:05