July 17, 2020
2020-1823 East African Community implements trade and duty changes Executive summary On 30 June 2020, the East African Community (EAC) Secretariat released EAC Gazette Notice No. 10 of 2020 (the Gazette).1 The Gazette highlights changes to the EAC Customs Management Act, 2004 (EACCMA) and the EAC Common External Tariff (EAC CET) with effect from 1 July 2020. The Council of Ministers (The Council) has, through the Gazette, implemented a number of trade changes which affect both individual EAC Partner States and the EAC region as a whole. This Alert highlights certain international trade-related changes introduced by the Gazette across Kenya, Uganda, Tanzania and Rwanda affecting importers. Detailed discussion EAC policy changes CET amendments There were no amendments to the existing CET import duty rates. Changes to the CET rate are scheduled to be implemented following a comprehensive review of the EAC CET regime adopted by the Council. Amendments to the exemptions regime Effective 1 July 2020, the Gazette introduced amendments to general exemptions from import duty under the Fifth Schedule of the EACCMA covering the following: - Amendment of the exemption of horticulture, aquaculture, agriculture and floriculture inputs:
- The new amendment has included agricultural implements and fertilized eggs for incubation as part of imported goods qualifying for exemption from import duty.
- This exemption now requires the involvement of the Ministry of Agriculture to get a recommendation and approval of the exemption. In Kenya, the involvement of the Ministry of Agriculture is now aligned with "Guidelines/framework for requesting, processing and granting of tax exemption/waiver/variation/remission on a national tax, a fee or a charge," issued on 18 October 2019.
- Amendment of the exemption of relief goods imported for emergency use in specific areas where natural disaster/calamity has occurred to include any supplies for diagnosis, prevention, treatment, and management of epidemics, pandemics and health hazards as recommended by the competent authority in the Ministry responsible for Health.
- Amendment of the exemption of specialized solar and wind energy equipment. The EAC has over time revised several times the duty exemption policy relating to renewable energy, moreso, specialized solar and wind equipment. The initial L.N. No. 12 dated 30 June 2006 applied the exemption on solar power which was amended in 2010 to include wind energy. This was further amended through L.N. No. 23 dated 20 June 2014 and L.N. No. 39 dated 30 June 2016 to provide further clarification on which items are exempted under this provision.
The current amendment has provided additional clarification as follows: - Removal of the requirement of imported goods under the exemption to be used in the development of solar or wind energy.
- Clarification that the following items also qualify for exemption; Photovoltaic (PV) Modules, Direct Current Charge Controllers, Direct Current Inverters and Solar.
Duty remission The EAC duty remission scheme allows waiver of duty or refrainment from exacting of duty on Gazetted inputs imported by Gazetted users (inputs and users set forth under the Gazette). The Gazette stipulates items approved by the council to be imported at a lower rate under remission in accordance with Section 140 of EACCMA and the EAC Duty Remission Regulations, 2008. Updated remission list The following items have been granted duty remission and are available to applicants from the respective EAC countries provided that the importers are approved and Gazetted before importation: Tariff and description | Countries eligible for duty remission on imported items | Import duty | Current rate | Rate under remission | Wheat (wheat grain) under 1001.99.10 or 1001.99.90 | Kenya and Tanzania | 35% | 10% | Burundi | 0% | Palm stearin (RBD) of 1511.90.40 | Tanzania | 10% | 0% | Inputs for use in the manufacture of Energy Saving Stoves | Kenya and Uganda | | 0% | Sear parts (recliner mechanism) of 9401.90.00 for the manufacture of automotive seats | Kenya | 25% | 0% | Equipment for polishing and heating gemstones | Tanzania and Uganda | | 0% | Other organic surface agents (3402.19.00) | Uganda and Burundi | 25% | 0% | Industrial sugar of 1701.99.10 | Burundi | 100% or $460/MT whichever is higher | 0% | 8414.51.00 Unassembled floor, table and wall fans | Uganda | 25% | 10% | 8516.60.00 Unassembled cookers | Uganda | 10% | 10% | 3302.10.00 Odiferous mixtures of a kind used as raw materials in the food or drink industries | Uganda | 10% | 0% | In the event that finished products (manufactured using inputs imported under country specific remission are sold in the Customs territory (EAC), such goods shall attract duties, levies and other charges provided in the EAC CET. If a remission regime is applied across all the EAC countries (i.e., favoring all EAC manufacturers), the restriction above would not apply. EAC duty remission The Council has stayed the application of conditions contained in Legal Notice LN EAC/39/2013, pertaining to duty remission on the motorcycle assembly industry, for one more year. The Legal Notice provides for duty remission for assemblers of Completely Knocked Down (CKD) kits who procure/manufacture the following specified parts within the EAC; main frame, suspension, or a combination of seat and seat frame, mudguard, wheel rim, break gear and exhaust pipe. Tariff and description | Countries eligible for duty remission on imported items | Import duty | Current rate | Rate under remission | Motorcycle kits imported by gazetted assemblers | EAC countries | 25% | 10% | Country specific stays of application of the CET Kenya The Council has approved various stays of application of CET duty rates on select items in Kenya, effective for the one-year period from 1 July 2020. These measures, implemented to address specific economic needs, have a two-fold effect; either an increase or a decrease in duty rates as follows: Duty increment Tariff | Description | Import duty | Previous rate | Effective rate from 1 July 2020 –
1 July 2021 | 1507.90.00 1511.90.30 1511.90.40 1511.90.90 1512.19.00 1515.29.00 | Refined soya bean oil RDB palm olein RDB palm stearine Other palm oil refined Sunflower oil Refined corn oil | 25% | 25% or US $500/MT | 4410.11.00 4410.12.00 4410.19.00 4410.90.00 | Particle board Oriented strand board (OSB) Other Other | 25% | 25% or US$110/MT | 4805.19.00 4805.91.00 | Other uncoated paper and paper board in rolls or sheets, not further worked or processed Weighing 150g/m2 | 10% | 25% | 4819.20.10 | Skillets, free hinge lid packets | 10% | 25% | 6405.10.00 | Shoes with leather uppers | 25% | 25% or US$5/Pair | 6403.12.00 | Ski boots, cross country ski footwear and snowboard boots | 25% | 25% or US$2.5/Pair | 4202.11.00 | Travel goods (i.e., trunks, suitcases, sports bags and similar items of leather | 25% | 35% | 6401.10.00 | Waterproof footwear with outer soles and uppers of rubber or of plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes. Footwear incorporating a protective metal toecap. Articles like Safety Gumboots. | 25% | 25% or US$2.5/Pair | 6402.19.00 | Other footwear with outer soles and uppers of rubber or Plastics. Full Plastic footwear. | 25% | 25% or US$2.5/Pair | 6403.20.00 | Footwear with outer soles of leather, and uppers which consist of leather straps across the instep and around the big toe | 25% | 25% or US$5/Pair | 7211.90.00 7212.20.00 | Other Electrolytically plated or coated with zinc (Metal Coating) | 10% | 10% or US$125/MT | 7212.60.00 | Clad | 10% | 10% or US$125/MT | 7216.31.10 7216.32.10 7216.33.10 7216.40.10 | U sections I sections H sections L or T sections | 0% | 25% or US$250/MT | 7217.10.00 7222.11.00 7222.19.00 7222.20.00 7222.30.00 7222.40.00 | Not plated or coated, whether or not polished Other bars and rods of stainless steel; angles, shapes and sections of stainless steel | 10% | 25% or US$250/MT | 7225.50.00 | Other, not further worked than cold-rolled (cold-reduced) | 10% | 10% or US$125/MT | 7226.92.00 | Flat-rolled products of other alloy steel, of a width of less than 600 mm. – Not further worked than cold-rolled (cold-reduced) | 10% | 10% or US$125/MT | 7306.30.00 7306.50.00 7306.61.00 7306.69.00 7306.90.00 | Other, welded, of circular cross-section, of iron or non-alloy steel Other, welded, of circular cross-section, of other alloy steel Of square or rectangular cross-section Of other non-circular cross-section Other Tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed) of iron or steel | 25% | 25% or US$200/MT | 7308.90.91 | Road guard rails | 10% | 25% or US$250/MT | 7311.00.00 | Containers for compressed or liquefied gas, of iron or steel – Liquid Gas cylinders (LPG) | 0% | 25% | 7317.00.00 | Nails, tacks, drawing pins, corrugated nails, staples (other than those of heading 83.05) and similar articles, of iron or steel, whether or not with heads of other material, but excluding such articles with heads of copper | 25% | 35% or US$350/MT | 7318.15.00 | Other screws and bolts, whether or not with their nuts or washers | 25% | 35% or US$250/MT | 7318.16.00 | Nuts | 10% | 35% or US250/MT | 7318.19.00 7318.23.00 7318.29.00 | Other Rivets Other | 10% | 35% or US$350/MT | 7320.10.00 | Leaf-springs and leaves therefore | 25% | 25% or US$250/MT | 7321.19.00 7321.89.00 | Stove, range, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, gas rings, plage warmers and similar non-electric domestic appliances, and part thereof, of iron or steel – other, including appliances for solid fuel – other, including appliances for solid fuel | 10% | 25% | 7326.90.90 | Other articles of iron or steel | 25% | 25% or US$250/MT | 8304.00.00 8311.10.00 | Filing cabinets Coated electrodes of base metal, for electric arc-welding | 25% | 25% or US$250/MT | 9403.30.00 9403.40.00 9403.50.00 9403.60.00 | Wooden furniture of a kind used in offices Wooden furniture of a kind used in the kitchen Wooden furniture of a kind used in the bedroom Other wooden furniture | 25% | 35% for one year | 9406.90.90 | Prefabricated buildings-Others | 25% | 35% or US$ 250/MT | 6907.21.00 6907.22.00 6907.23.00 6907.30.00 6907.40.00 | Ceramic flags and paving, hearth or wall tiles; unglazed ceramic mosaic cubes and the like, whether or not on a backing; finishing ceramics | 25% | 30% or US$1.75/SQM | 8802.11.00 8802.12.00 8802.20.00 | Helicopters of unladen weight of below 2000kgs Helicopters of unladen weight of above 2000kgs Airplanes and other aircraft, of an unladen weight not exceeding 2,000 kg | 0% | 25% | Heading 8544 excluding cables of tariff 8544.70 | Insulated (including enameled or anodized) wire, cable (including co-axial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled. | 25% | 35% | 8536.50.00 | Other switches for a volt not exceeding 1,000 volts | 10% | 35% | The stays of application that aim at increasing duty rates of imported items are geared towards protection of local industries from competing similar imports. Duty reduction This is mainly aimed at ensuring accessibility and affordability of these imports that are a necessity in the country. Tariff | Description | Import duty | Previous rate | Effective rate from 1 July 2020 –
1 July 2021 | 1006.10.00 1006.20.00 1006.30.00 1006.40.00 | Rice in the husk Husked (brown) rice Semi milled or wholly milled rice Broken rice | 75% or US$345/MT | 35% or US$200/MT | 7225.30.00 | Other, not further worked than hot-rolled, in coils | 10% | 0% | Chapter 61 and 62 (Excluding the sensitive items at 50% rate – {6211.42.10 6211.43.10 6211.49.10} | Articles of apparel and clothing accessories, knitted or crocheted and Articles of apparel and clothing accessories, not knitted or crocheted | 50% | 35% | 6309.00.10 | Worn items of clothing | 35% or US$0.40/kg whichever is higher | 35% or US$ 0.20/Kg | 3905.91.00 | Polymers of vinyl acetate or of other vinyl esters, in primary forms; other vinyl polymers in primary forms – Others: Copolymer. | 10% | 0% | Uganda The Council has approved various stays of application of CET duty rates on select items in Uganda, effective for a one-year period from 1 July 2020. These measures, effected to address specific economic needs, have a two-fold effect; either an increase or a decrease in duty rates as follows: Duty increment Tariff | Description | Import duty | Previous rate | Effective rate from 1 July 2020 –
1 July 2021 | 6115.21.00 6115.22.00 6403.99.00 | Gum boot linings | 25% | 35% | 33.04 33.05 | Beauty or make up preparations | 25% | 35% | 8504.31.00 8504.32.00 | Transformers (Both dry and liquid) | 10% | 25% | 3920.20.90 | Other of polymers of styrene (Printed plastic labels) | 25% | 35% | 8517.12.00 | Mobile phones | 0% | 10% | 3919.90.90 | Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes of plastics, whether or not in rolls | 25% | 35% | 3605.00.00 | Safety matches | 25% | 25% or US$1.35/Kg | 7311.00.00 | Containers for compressed or liquefied gas, of iron or steel – Liquid Gas cylinders (LPG) | 0% | 25% | 7317.00.00 | Nails, tacks, drawing pins, corrugated nails, staples (other than those of heading 83.05) and similar articles, of iron or steel, whether or not with heads of other material, but excluding such articles with heads of copper. | 25% | 35% or US$350/MT | 0701.90.00 0710.10.00 2004.10.00 2005.20.00 | Cooked potatoes, fresh or chilled, other than seed | 25% | 60% | 0409.00.00 1702.90.00 | Honey – natural and artificial | 25% | 60% | 2002.90.00 | Tomato paste and other preserved tomatoes | 25% | 35% | 8528.72.90 | Television sets | 25% | 35% | 9503.00.00 | Toys | 25% | 35% | 3306.10.00 3306.90.00 | Toothpaste and other mouth wash preparations | 25% | 35% | 0901.21.00 0901.22.00 0901.90.00 2101.11.00 2102.12.00 | Processed coffee | 25% | 60% | 09.02 2101.20.00 | Processed tea | 25% | 60% | 0910.11.00 0910.12.00 | Ginger | 25% | 60% | 20.07 | Jams, marmalades, jelly | 25% | 60% | 3405.10.00 | Shoe polish | 25% | 35% | 2008.11.00 | Peanut butter | 25% | 60% | 1806.90.00 | Bread spreads | 25% | 60% | 0703.10.00 0703.20.00 0703.90.00 | Onions, shallots, garlic, leeks... etc., fresh or chilled | 25% | 60% | 1512.29.00 | Refined cotton-seed oil | 25% | 60% | 1512.19.00 | Refined sunflower seed or sunflower oil | 25% | 60% | 18.05 | Cocoa powder in packing with a net content exceeding | 0% | 60% | 18.06 | Chocolate and other food preparations containing cocoa | 25% | 60% | 3808.91.31 3808.91.32 3808.91.39 | Other insecticides put up for retail sale | 25% | 35% | 67.04 | Wigs, false beards, eyebrows and eyelashes, etc.; human hair, nes | 25% | 35% | 04.05 | Butter and other fats and oils de-rived from milk; dairy spreads | 25% | 60% | 1901.20.90 | Mixes and doughs for the preparation of bakers' wares of heading | 25% | 35% | 6306.12.00 6306.19.00 | Tarpaulins | 25% | 35% | 6912.00.00 | Ceramic toilet seats and cisterns | 25% | 35% | 8212.20.00 | Maternity (Mama) kit | 25% | 0% | 3401.20.10 | Other soap in other forms – Soap Noodles | 25% | 10% | 4011.40.00 | New pneumatic tires of rubber, of a kind used on motorcycles | 10% | 35% | 7217.20.00 | Wire of iron or non-alloy steel | 10% | 35% or US$350/MT | 7210.11.00 7210.20.00 7216.50.00 | Flat rolled products of iron or non-alloy steel products of iron or non-alloy steel | 25% | 25% or US$200/MT | 7212.60.00 | Flat rolled products of iron or non-alloy steel | 10% | 25% or US$250/MT | 5408.33.00 | Jacquard material for making spring mattresses (printed with Logo | 25% | 10% | 5513.49.00 | Poly cotton material for making mattresses | | 10% | 1003.90.00 | Barley | | 10% | 3905.30.00 | Poly vinyl alcohol | | 0% | 1601.00.00 | Sausages and similar products | 25% | 60% | 1704.10.00 1704.90.00 | Chewing gum Other sugar confectionery (sweets) | 25% | 35% | 17.04 | Chocolates | 25% | 35% | 19.05 | Biscuits | 25% | 60% | 2103.20.00 | Tomato sauce | 25% | 60% | 2201.10.00 | Mineral water | 25% | 60% | 2710.19.10 | Partly refined base oil | 0% | 10% | 2710.19.51 | Lubricants in liquid form | 25% | 60% | 2710.19.52 | Lubricating greases | 25% | 60% | 3401.11.00 3401.19.00 3401.20.90 3401.30.00 | Soap and organic surface-active products for use as soap | 25% | 35% | 48.19 | Cartons, boxes, cases, bags and other packing containers of paper | 25% | 35% | 4818.10.00 4820.20.00 | Toilet paper Exercise books | 25% | 60% | 4911.10.00 4911.91.00 4911.99.10 | Trade advertising material Pictures, designs and photographs Instructional charts and diagrams | 25% | 35% | 63.01 | Blankets | 25% | 35% | 7308.30.00 7610.10.00 3925.20.00 | Doors, windows and their frames and thresholds for doors of iron and steel and Plastic/polymers | 25% | 35% | 94.03 94.01 9402.90.90 | Furniture and parts thereof | 25% | 35% | 94.04 | Mattress supports and mattresses | 25% | 35% | 9603.21.00 | Toothbrushes | 25% | 60% | 9608.10.00 | Ball point pens | 25% | 60% | 85.07 | Electric accumulators | 25% | 35% | 7323.10.00 | Iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like | 25% | 35% | 8311.10.00 | Coated electrodes of base metal, for electric arc-welding | 25% | 35% | 8704.22.90 8704.23.90 | Motor vehicles for transport of goods with gross vehicle weight exceeding 5 tons but not exceeding 20 tons Motor vehicles for transport of goods with gross vehicle weight exceeding 20 tons | 25% 25% | 10% 0% | 8470.50.00 | EFD, cash registers, point of sale (POS), cashless machines | 10% | 0% | 8701.20.90 | Road tractors for semitrailers | 10% | 0% | 8421.12.00 | Clothes-dryers imported by licensed hotels | 10% | 0% | 8451.30.00 | Clothes-dryers imported by licensed hotels | 0% | 0% | 7007.19.00 7007.29.00 | Other toughened (tempered) and laminated safety glass | 25% | 10% | Duty reduction Tariff | Description | Import duty | Previous rate | Effective rate from 1 July 2020 –
1 July 2021 | 6309.00.10 6309.00.20 6309.00.90 | Worn clothing and other worn articles | 35% or US$0.4/Kg | 35% | 1001.99.10 1001.99.90 | Wheat grain | 35% | 10% | 6309.00.10 6309.00.20 6309.00.90 | Worn items of clothing Worn items of footwear Other worn articles | 35% or US$0.40/Kg | 35% | Tanzania The Council has approved various stays of application of CET duty rates on select items in Tanzania, effective for one-year period from 1 July 2020. These measures, effected to address specific economic needs, have a two-fold effect; either an increase or a decrease in duty rates as follows: Duty increment Tariff | Description | Import duty | Previous rate | Effective rate from 1 July 2020 –
1 July 2021 | 6305.10.00 | Sacks and bags, of Jute or other textile-based fibers of heading 53.03 | | 35% | 3605.00.00 | Safety matches | | 25% or US$1.35/Kg | 6907.21.00 6907.22.00 6907.23.00 | Tiles | 25% | 35% | 09.02 | Processed tea | 25% | 35% | 1805.00.00 | Cocoa powder, not containing added sugar or other sweetening matter | 0% | 10% | 18.06 | Chocolate and other food preparations containing cocoa | 25% | 35% | 1601.00.00 | Sausages and similar products | 25% | 35% | 1704.10.00 1704.90.00 | Chewing gum Other sugar confectionery (sweets) | 25% | 35% | 19.05 | Biscuits | 25% | 35% | 2103.20.00 | Tomato sauce | 25% | 35% | 2201.10.00 | Mineral water | 25% | 60% | 4804.29.00 | Sack kraft paper (Other) | 10% | 25% | 7225.50.00 7226.92.00 | Flat-rolled products of other alloy steel, of a width of 600 mm or more | 10% | 10% or US$125/MT | 7212.30.00 7212.40.00 7212.50.00 | Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, clad, plated or coat-ed for one more year | 25% | 25% or US$250/MT | 7212.60.00 | Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm (clad) | 10% | 10% or US$250/MT | 2520.20.00 | Gypsum powder | 0% | 10% | 3916.10.00 3916.20.00 3916.90.00 | Monofilament of which any cross-sectional dimension exceeds 1 mm, rods, sticks and profile shapes whether or not surface – worked but not otherwise worked of plastics | 0% | 10% | 1701.14.90 | Other cane sugar | 100% or US$460/MT | 35% on 40,000 | Various tariffs | Meat and edible offals under Chapter 2 | 25% | 35% | Duty reduction Tariff | Description | Import duty | Previous rate | Effective rate from 1 July 2020 –
1 July 2021 | 6309.00.10 6309.00.20 6309.00.90 | Worn items of clothing Worn items of footwear Other worn articles | 35% or US$0.40/Kg | 35% | 8470.50.00 | EFD, cash registers, point of sale (POS), cashless machines | 10% | 0% | 8470.90.00 | EFD, cash registers, point of sale (POS), cashless machines | 10% | 0% | Rwanda The Council has approved various stays of application of CET duty rates on select items in Rwanda, effective for the one-year period from 1 July 2020. These measures, effected to address specific economic needs, have a two-fold effect; either an increase or a decrease in duty rates as follows: Duty increment Tariff | Description | Import duty | Previous rate | Effective rate from 1 July 2020 –
1 July 2021 | 1006.30.00 | Semi milled or wholly milled rice | 75% or US$345/MT | 45% or US$345/MT | 6309.00.10 6309.00.90 | Worn items of clothing Other worn articles | 35% or US$0.40/Kg | US$2.5/Kg | 6309.00.20 | Worn items of footwear | 35% or US$0.40/Kg | US$5/Kg | 7311.00.00 | Containers for compressed or liquefied gas, of iron or steel – liquid gas cylinders (LPG) | 0% | 25% | 1701.12.90 1701.14.90 1701.91.00 1701.99.90 | Other beet sugar Other cane sugar Containing added flavoring or coloring matter Other sugar | 100% or US$460/MT | 25% for one year for imported sugar up to 70,000 MT quota limit | 3505.20.00 3506.99.00 | Glues based on starch Other glues | 25% | 0% | 41.07 4112.00.00 41.13 | Leather further prepared after tanning or crusting, including parchment-dressed leather, of bovine (including buffalo) or equine Leather further prepared after tanning... Leather further prepared after tanning or crusting, including parchment-dressed leather, of other animals, without wool or hair on, whether or not split, other than leather of heading 41.14. | 10% | 0% | 8470.50.00 | EFD, cash registers, point of sale (POS), cashless machines | 10% | 0% | 8470.90.00 | EFD, cash registers, point of sale (POS), cashless machines | 10% | 0% | Various tariffs | Telecommunication equipment | Various | 0% | Various tariffs | Goods imported for the use by Armed Forces Shop (AFOS)Rwanda | Various | 0% | 8421.12.00 | Clothes dryers imported by licensed hotels | 10% | 0% | 8451.30.00 | Clothes dryers imported by licensed hotels | 0% | 0% | 8704.22.90 | Motor vehicles for transport of goods with gross vehicle weight exceeding 5 tons but not exceeding 20 tons | 25% | 10% | 8704.23.90 | Motor vehicles for transport of goods with gross vehicle weight exceeding 20 tons | 25% | 0% | 8716.31.90 | Other tanker trailers and tanker semi-trailers | 10% | 0% | 8716.39.90 | Other trailers and semi-trailers for the transport of goods | 10% | 0% | Duty reduction Tariff | Description | Import duty | Previous rate | Effective rate from 1 July 2020 –
1 July 2021 | 8701.20.90 | Road tractors for semitrailers | 10% | 0% | 1001.99.10 1001.99.90 | Wheat grain | 35% | 0% | 8702.10.99 | Buses for transportation of more than 25 persons not exceeding 50 persons | 25% | 10% | 5608.11.00 | Made up fishing nets | 25% | 10% | 8523.52.00 | Smart cards | 25% | 0% | 8542.39.00 | Other (sim cards) | 25% | 0% | 7612.90.90 | Milk cans | 25% | 10% | | | Goods imported for use by the Armed Forces Shop (AFOS) for Rwanda | Various | 0% | Burundi The Council has approved various stays of application of CET duty rates on select items in Burundi, effective for the one-year period from 1 July 2018. All measures granted to Burundi were decreases in applicable duty rates as follows: Duty reduction Tariff | Description | Import duty | Previous rate | Effective rate from 1 July 2020 –
1 July 2021 | 6309.00.10 6309.00.90 6309.00.20 | Worn clothing and other worn articles | 35% or US$0.4/Kg | 35% | 8704.22.90 | Motor vehicles for transport of goods with gross vehicle weight exceeding 5 tons but not exceeding 20 tons | 25% | 10% | 8704.23.90 | Motor vehicles for transport of goods with gross vehicle weight exceeding 5 tons but not exceeding 20 tons | 25% | 0% | 8701.20.90 | Road tractors for semitrailers | 10% | 0% | 8702.10.99 | Buses for transportation of more than 25 persons and not exceeding 50 persons for one year Buses for transportation of more than 50 persons for one year | 25% 25% | 10% 0% | Impact Each of the EAC Member States, just like any other economy, is challenged every year to broaden the tax base and increase its tax to GDP ratio. Whereas higher tax rates are introduced to protect local industries, other new taxes are introduced to broaden the base. It is likely that the need to broaden the tax base will continue in the foreseeable future until countries become less reliant on borrowed funds to finance their budgets. The new rates became effective on 1 July 2020. ———————————————
CONTACTS For additional information with respect to this Alert, please contact the following: Ernst & Young (Kenya), Nairobi - Hadijah Nannyomo
hadijah.nannyomo@ke.ey.com - Robert Maina
robert.maina@ke.ey.com - Emmanuel Makheti
emmanuel.makheti@ke.ey.com
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ATTACHMENT PDF version of this Tax Alert 
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