Transcript Accelerating Implementation of Regional Trade and

“HIGHLIGHT ON EAC TF”” By James S. Kuleiye
East African Community Secretariat
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Introduction to EAC: Quick Facts
about EAC, EAC Treaty
EAC Customs Union: Objectives and
legal instruments
Regional Trade Facilitation initiatives
Comparative TF Indicators
Challenges of TF in the EAC
Indicators
BR
KE
RW
TZ
UG
EAC
Population (in
mill)
8.4
40.5
10.6
44.8
33.4
137.8
GDP per capita
(2010) in current
US $
192
795
530
524
509
576
Total Imports
(2009) mill.$
345
10,202
1,112
6,531
4,247
22,437
Total Exports
(2009) mil. $
113
4,463
261
2,982
1,568
9,387
Share of total EAC
imports, 2009
2%
45%
5%
29%
19%
Share of total EAC
Exports, 2009
1%
48%
3%
32%
17%
Source: World Bank: “World Development Indicators” (data base accessed June 2012)
Customs
Union
Common
Market
Monetary
Union
Political
Federation
2005
2010
201..
2012???
?
1. Further liberalisation of intra-regional trade in
goods.
2. Promotion of efficiency in production within
the Community;
3. Enhancement of domestic, cross-border and
foreign investment in the Community; and
4. Promotion of economic development and
diversification in industrialisation in the
Community.
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EAC CMA 2004, Rev.2009
EAC CET (0%, 10%, 25%) plus 56 Tariff lines
under the Sensitive bracket
EAC CMA Regulations 2006, Revised 2010
EAC Rules of Origin
Other Annexes
Under the CU, Partner States agreed to initiate
trade facilitation by:
 Reducing
the
number
and
volume
of
documentation
 Adopt
common
standards
of
trade
documentation and procedures
 Ensure adequate co-ordination and facilitation of
trade and transport activities
 Review procedures adopted in international trade
and transport facilitation in order to simplify and
adopt them in the EAC
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Collect and disseminate information on
trade and trade documentation
Promoting and development and adoption
of common solutions to problems in trade
facilitation
Establishing joint training programmes
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Adoption of the regional of customs laws and
regulations since 2004 which are applied
uniformly. The CMA contained a number of
TF measures from the RKC.
Development and adoption of the harmonised
EAC customs procedures with reduced and
standardised
customs forms, to ensure
standard practices. C17A for ASCUDA and
C17B for SIMBA
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Interconnectivity of customs systems Project
being funded by ADB to build on the RADDEX
Project.
Sharing
experience
on
Reforms
and
Modernisation through the Committee on
Customs.
Application of risk management in customs
operations
Partial
Application
of
the
Authorised
Economic Operators scheme (AEO) which is
being scaled up to the regional level under
the WCO-EAC Project
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Establishment of One Stop Border Posts
(OSBP) to reduce delays in clearance of goods
at border posts as part of the IBM Strategy.
The OSBP Bill has been finalised and is to be
tabled in the Regional Parliament (EALA).
Programmes to enhance integrity and fight
corruption in customs- a regional framework
of cooperation on customs integrity matters
in line with WCO’s Arusha Declaration has
been developed.
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Harmonization of Business Hours and
attempt to operate on 24 hours in some
borders stations
Strengthen the NTB’s monitoring mechanisms
in each Partner State: Program on elimination
of NTB is implemented and coordinated by
EAC. The Regional Law to address NTB is being
developed.
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Use of the EAC Passport to facilitate ease
cross borders movement .
Time Release Study- to measure the bottlenecks in
the supply chain and to develop measures to
addressed them.
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Strengthen the mutual recognition of
harmonized EAC Standards certificates.
Harmonization of Transport regulations and
standards (weighbridges, axle loads etc) to
reduce delays and cost of doing business.
The Load Control Bill has been finalized and
is waiting enactment by EALA.
Consolidation of the gains recorded in the
EAC-COMESA-SADC TF negotiations (trade
documents and procedures)
Logistics performance index
scores
Burundi
Kenya
Rwanda
Tanzania
Uganda
Benin
Singapore
Efficiency of Customs
Procedures 1 ( worst) to 5 (best)
1.67
2.08
2.27
2.65
2.82
2.59
4.13
Percentage of Cargo inspected
60%
25%
25%
n/a
35%+
11%
1%
Documents needed for imports
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7
8
6
9
8
4
Docs for Exports
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8
8
6
9
7
4
Days to import
54
24
31
24
34
32
4
Days for exports
35
26
29
18
37
30
5
Source: World Bank “ Logistics Performance Index” 2010-12 and World Bank Doing Business Report 2012
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Each PS faces unique challenges in improving
its trade and Transport facilitation.
EAC requires large number of trade
documentation
Low level of the application of Risk based
inspections systems hence high level of
inspection of imported goods.
Cumbersome Processes at Ports
Take off from the Port for Transit
Countries….very
slow
due
to
poor
infrastructure!
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A quick survey conducted by EAC on WTO’s
TF measures under negotiations suggests
that Partner States are implementing some of
the elements of TF at different paces.
Some measures like advance rulings,
requires both Policy and legal framework
Capacity Building is needed to consolidate
some of the existing TF measures such as
Risk Management, AEO and Post Clearance
Audit (PCA).
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Consolidation and develop trade facilitation
instruments based on the WTO’s TF guide.
Harmonization of Customs and non customs
procedures
though
an
integrated
Border
Management framework.
Finalize the interconnectivity of Customs Systems
from RADDEX to a more vibrant and integrated
systems
Eliminations/reduction of NTBs across the supply
chain
Fully employment of Risk Based Management
System in Customs Process
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The Summit at its 10th Extra-Ordinary Meeting in
April, 2012: “adopted in principle the destination
model of clearance of goods where assessment and
collection of revenue is at the first point of entry
and revenues are remitted to the destination
Partner States subject to the fulfillment of key preconditions to be developed by the High Level Task
Force”.
Accelerating trade and transport facilitation in
Infrastructure
…… address the supply side
constraints! Investment in infrastructure is key to
unlock the potential of the EAC!!
But we have our own challenges
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……. and at considerable cost
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….
With devastating consequences
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