EAC Blogs

EAC Director General (Customs and Trade) Mr Peter Kiguta answers questions from journalists in the region.

1.  Are you aware of Uganda’s request for exemption on CET for 66 industrial inputs? [David Mugabe, New Vision, Uganda]

First of all, it would have been helpful if you indicated whether Uganda’s request for exemption on CET for 66 industrial inputs is a new request or a request for extension of the remission of duty to zero on Uganda’s list of raw materials and industrial inputs that was granted in 2005 and expired on 31st December 2010. All the same, I am not aware of any request by Uganda for exemption on CET for 66 industrial inputs.

2. Apparently the status quo regarding an interim Customs Union remains in Uganda, is this true? [David Mugabe, New Vision, Uganda]

It’s not true that [the] status quo regarding an interim Customs Union remains in Uganda since there is no Council decision to that effect.

3. Have the revenue authorities of the member states adjusted their tax structures to fit the fully fledged Customs Union? [David Mugabe, New Vision, Uganda]

Yes the revenue authorities have transposed their tax structures to meet requirements for a fully fledged Customs Union. We have been working with them to do and we are satisfied they were all set for 1st January 2010.

4. We saw trade rise by over 40% since the commencement of the customs union, what will it be like in the fully fledged Union? [David Mugabe, New Vision, Uganda]

We expect trade to rise higher than 40 per cent in the coming years,  especially taking into account that the Uganda list has expired and inputs that were being remitted to zero while imported from outside the region will now attract a CET of 10 per cent while they will attract zero duty if sourced from the region. This will create an incentive to source imports from within rather than from outside, thereby making trade to go up.

5. I am a journalist from Burundi and I would like to ask how the Customs Union protocol can be fully achieved while Tanzania is still charging entry visa fees for nationals from Burundi. Yet, Burundi has abolished the visa fee for Tanzanians entering Burundi. [Apollinaire Niyirora, Senior Reporter, Radio Burundi]
 
The Customs Union protocol is under implementation in Burundi from 1st July 2009. Indeed, free movement of goods requires people to also move freely especially while accompanying the goods. Therefore, any measures that could hinder free flow of goods and people should be discouraged. The EAC Partner States agreed that their peoples should be allowed to move freely within the region. I trust that the issue of Tanzania requiring/charging for visas from Burundi nationals is being given the due attention, since I am aware that Burundi has in numerous times urged Tanzania to resolve the issue.