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These Rules may be cited as the East African Community Customs Union (Rules of Origin) Rules (hereinafter referred to as the "Rules ").
Purpose of the Rules of Origin
The purpose of these Rules is to implement the provisions of Article 14 of the Protocol and to ensure that there is uniformity among Partner States in the application of the Rules of Origin and that to the extent possible the process is transparent, accountable, fair, predictable and consistent with the provisions of the Protocol.
In these Rules, unless where the context otherwise requires:
- "change in tariff heading criteria" means the criteria according to which substantial transformation is deemed to have occurred when all the materials used in the production of a product are classified in a heading other than that of the product;
- "classified" means the classification of a product of material under a particular heading in the Harmonised Commodity Description and Coding System;
- "Committee" means the East African Community Committee on Trade Remedies established under Article 24 of the Protocol on the Establishment of the East African Community Customs Union;
- "competent authority" means a body or organization designated by a Partner State to issue East African Community Certificates of Origin;
- "Council" means the Council of Ministers of the Community established by Article 9 of the Treaty;
- "customs value" means the value as determined in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade, 1994 (WTO Agreement on Customs Valuation);
- "ex-factory cost" means the value of the total inputs required to produce a given product;
- "goods" means both materials and products;
- "heading" means four digit codes used in the Harmonised Commodity Description and Coding System;
- "manufacturing" means any kind of working or processing, including assembly or specific operations;
- "materials" means raw materials, semi-finished products, products, ingredients, parts and components used in the production of goods;
- "Partner States" means the Republic of Uganda, the Republic of Kenya and the United Republic of Tanzania and any other country granted membership to the Community under Article 3 of the Treaty;
- "produced" and "a process of production" include the application of any operation or processes with the exception of any operation or processes as set out in Rule 7 of these Rules;
- "producer" includes a mining, manufacturing or agricultural enterprise or any individual grower or craftsman who supplies goods for export;
- "product" means a manufactured product and includes a product intended for later use in another manufacturing operation;
- "Secretariat" means the Secretariat of the Community established by Article 9 of the Treaty;
- "substantial transformation criteria" means the criteria according to which origin is determined by regarding as the country of origin, the country in which the last substantial manufacturing or processing, deemed sufficient to give the commodity its essential character is carried out";
- "Summit" means the Summit established by Article 9 of the Treaty;
- "Treaty" means the Treaty for the Establishment of the East African Community;
- "value added" means the ex-factory cost of a finished product minus the customs value of the materials imported from outside the Partner States and used in the process of production;
- "vessel of a Partner State" means a vessel of a Partner State which is registered in a Partner State and satisfies one of the following conditions:
a) at least 75 per centum of the officers of the vessel are nationals of the Partner State;
b) at least 75 per centum of the crew of the vessel are nationals of the Partner State; or
c) at least the majority control and equity holding in respect of the vessel are held by nationals of the Partner State or institution, agency, enterprise or corporation of the Government of that Partner State.
1. Goods shall be accepted as originating in a Partner State where they are consigned directly from a Partner State to a consignee in another Partner State and where:
(a) they have been wholly produced as provided for in Rule 5 of these Rules; or
(b) they have been produced in a Partner State wholly or partially from materials imported from outside the Partner State or of undetermined origin by a process of production which effects a substantial transformation of those materials such that:
(i) the c.i.f. value of those materials does not exceed sixty per centum of the total cost of the materials used in the production of the goods;
(ii) the value added resulting from the process of production accounts for at least thirty five per centum of the ex-factory cost of the goods as specified in the First Schedule to these Rules; and
(iii) the goods are classified or become classifiable under a tariff heading other than the tariff heading under which they were imported as specified in the Second Schedule to these Rules.
2. The following are the principles of cumulative treatment:
(a) for purposes of implementing these Rules, the Partner States shall be considered as one territory; and
(b) raw materials or semi-finished goods originating in any of the Partner States and undergoing working or processing either in one or more Partner State shall, for the purpose of determining the origin of the finished product be deemed to have originated in the Partner State where the final processing or manufacturing takes place.
3. In determining:
(a) the place of production of marine, river or lake products and goods in relation to a Partner State, a vessel of a Partner State shall be regarded as part of the territory of that Partner State; and
(b) the place from which goods originated, marine, river or lake products taken from the sea, river or lake or goods produced from the sea, river or lake shall be regarded as having their origin in the territory of a Partner State where they were taken by a vessel or produced in a vessel of that Partner State and are brought directly to the territory of the Partner States.