Non-Tariff Barriers

Complaint

Complaint number

NTB-000-882  

NTB Type

2.3. Issues related to the rules of origin  

Complaint

Denial of preferntial treatment for products produced by Tanzania Breweries (TBL) Ltd.
Kenya is insisting that Tanzania produced Beer (Redds and Castle Lite) are manufactured in South Africa.  

Status note

During the Bilateral Meeting held on 23- 27 April, both parties agreed to undertake verification of the plants. Meanwhile, Kenya will accord preferential treatment to Tanzania beer .  

Progress update note

During Bilateral Meeting held between Tanzania and Kenya on 23rd - 27th April, 2019 in Arusha, Tanzania.
Kenya reported that the recognized the Rules of Origin for products wholly produced and originate from EAC Partner States. For Redds & Castle Lite, Kenya doubts the two products under the Rules of Origin. Tanzania requested Kenya to conduct verification on the two products in case they have doubt. Meanwhile the products should be allowed under preferential treatment.
Kenya requested for the documentary record from client to assist with investigation on the matter after which will revert back. Kenya proposed that instead of waiting for bilateral meetings, the aggrieved parties should use alternative dispute resolution mechanism which are effective and operate within the time frame. The dispute resolution mechanisms are clients (Bakhresa, Gypsum, TBL, Minerals). This will enable clients to avoid waiting for 9 months before presenting their cases
Tanzania informed the meeting that, this matter had been on the table for so long and evidence was given and therefore urged Kenya to accord preferential treatment to redds and castle lite produced in Tanzania.

It was observed that the issues of uplifting, bulk clearance of goods, ban of stripping transshipment and holding of the Tanzania consignment are emanating from legal or public notice issued by Kenya. Hence they are not tax matters to be handled by tax tribunal. Finally, Tanzania does not agree with Kenya on the use of domestic dispute resolution mechanism on disputes emanating from the implementation of the regional agreements. Tanzania provided evidence .

Recommendation: Both Parties agreed to do all the verification within a month  

Policy or regulatory NTB

No 

Location

Tanzania: Namanga (Border post)  

Reporting Country or Region

Tanzania  

Country specific trade issue

No  

Date of incident

2018-12-17  

Status

Resolved  

Date of resolution

2019-04-27  

Product Description

Beverages and winery

Computer-assisted translation

• English
• Arabic
• French
• Portuguese

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Total value

0  

Date reported

2019-03-08 17:35  

Modified

2019-05-08 12:55