Complaint

Complaint number
NTB-001-110  
NTB Type
1.7. Discriminatory or flawed government procurement policies  
Complaint
United Republic of Tanzania subject a discriminatory treatment to Kenyan export/transfer on products of animal and animal products despite their commitment in the bilateral meeting to amend the Act to resolve the discriminatory charges on the Kenya animal and animal products by June 2022.

Tanzania charges descriminatory meat products an import fees of Tshs 3,000 per kilogram (Kg) for imports consignment. The fees is contained in the animal diseases (animals and animal products movement control) .(amendment) regulations, 2022 of the United Republic of Tanzania that came into operation on 1st July 2022. These charges have rendered Kenyan exports especially milk and milk products, meat and meat products including sausages uncompetitive in the Tanzanian market while Kenya facilitates Tanzania meat and meat products sausages into Kenya without any discrimination.

These charges contravene the GATT 1994 Art III on National Treatment, Articles 1 and 75 (6) of the Treaty as well as Articles 1 (1) (definition of imports) and 15 (1) (a) and (2) (National Treatment) of the Customs Union Protocol and Article 6 (1) of the Common Market Protocol of the Community Laws.

The charges are also in violation of Article 10 of the Custom Union Protocol that obligates Partner States to remove all internal tariffs and other charges of equivalent effect.

Kenya urges:-
a)Tanzania to abolish these prohibitive discriminatory charges and treat our animal and animal products as from the local market and accord same rate as their own without discriminating not to call it import as import is from outside EAC.
b) URT to abolish the discriminatory charges as per the customs union protocol.
d) URT to treat Kenya meat and meat products as local and not as an import.
C)URT to stop restricting the quantities to be imported/transfered by the Kenya companies.

In addition URT charges xthe following discriminative charges:
1) URT charges import fee of 2% FOB by Tanzania Meat Board
2) 0.4% on FOB by Tanzania Atomic Energy
3) 0.2% FOB by Weight and Measure Agency

Kenya request URT to consider abolishing the discriminatory charges which are equivalent import duty prohibited in the EAC Protocal.

On the contrary Kenya facilitates Tanzania sausages without any charge.

This is really unfair practices where URT is charging import charges to Kenya products despite Kenya being in the EAC Customs union where we transfer products and not import  
Progress update note
1. Kenya recognized the effort made by URT in reducing the fee from 5,000 Tshs to 3,000 Tshs per kg of meat. The Republic of Kenya indicated that the fee is still very high, discriminative, and amounts to import duty. The Kenyan companies exporting meat products to URT have been negatively affected by a sharp decline in the volume of meat products exported to URT, since the imposition of these charges. A consignment of 25,000 kgs exported from Kenya to URT is charged Kshs 3,750,000. In addition, it is charged an import fee of 2% FOB by the Tanzania Meat Board, 0.4% FOB by the Tanzania Atomic Energy Commission, and 0.2% FOB by Weight and Measures Agency. A similar consignment exported to Kenya from URT is charged Kshs 3,000. Thus, Kenya proposes that the two Partner States engage and harmonize these regulations to either charge per kg or per consignment.
Tanzania Meat Board had also denied market access to beef products imported from Kenya and thus Kenya urges URT to address this matter.
2. The 34th RMC noted that the NTB was new. URT reported that they would consult the relevant stakeholders and revert during the 35th RMC
3.During the 36th RMC Kenya reported that the NTB was considered during a bilateral meeting between Republic of Kenya & the United Republic of Tanzania whereby the two Partner States agreed to harmonization of all conditions, levies, fees and charges related to import / exports for holistic consideration by 30th June 2024  
Policy or regulatory NTB
Yes 
Location
 
Reporting Country or Region
Kenya  
Country specific trade issue
No  
Date of incident
2022-07-01  
Status
In process  
Product Description
Animal and Animal products i.e. meat & meat products, milk & milk products among others


 
Total value
0  
Date reported
2023-05-12 10:37  
Modified
2023-07-03 17:21