IMPLEMENTATION OF TRADE FACILITATION AGREEMENT IN EAC Trade

IMPLEMENTATION OF TRADE FACILITATION AGREEMENT IN EAC Trade Facilitation Arusha, Kibo Palace 11 th April 2016 By Evariste Munyampundu; Emunyampundu@eachq. org; evampundu@gmail. com. +255 762593756 1

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Legal mandate • The Treaty for the establishment of the EAC - Art. 74 : In order to promote the achievement of the objectives of the Community as set out in artcle 5 of this Treaty, and in furtherance of Article 2 of this Treaty, the Partner States shall develop and adopt and EAC trade Regime and Cooperate in trade liberalisation and development in accordance therewith. - Article 75. 1 (m): Simplification and harmonisation of trade documentation and procedures • Articles 6 and 7 of the EAC Customs Union Protocol Among others, the Protocol under Article 6 and 7, emphasis is placed on the cooperation on trade facilitation initiatives at a regional level. Specifically the articles articulate the following: a) Reducing the number and volume of documentation required in respect of trade among the Partner States; b) Adopting common standards of trade documentation and procedures within the community where international requirements do not suit the conditions prevailing among the Partner States.

Legal mandate (cnd) • EAC Protocol on SPS • OSBP Act (Under assent process) • Customs Management Act, 2004 All provisions of the act • final provisions of WTO TFA 5) Members of a customs union or a regional economic arrangement may adopt regional approaches to assist in the implementation of their obligations under the Agreement on Trade Facilitation including through the establishment and use of regional bodies. • The 2 nd Extraordinary Summit of 11 th April 2002 directed the Partner States to negotiate as EAC Bloc in the WTO and EPAs

EAC FT Status Post Bali Ministers of Trade B A LI EAC Regional forum in Nairobi : 16 -18 th July 2014 EAC Regional forum in Kigali : 2 nd to 6 th March 2015 Video conference consultations : 25 th and 30 th /3/ 2015. Kenya Notified 2 0 / 4 / 2 0 1 5 Uganda Notified 22 nd May 2015 Compared notes on measures and Agreed to notify on 31 st as directed by Ministers of Trade Notifcation Target dates 31/3/2015 Decembe r 2013 Rwanda, Burundi and Tanzania notified 7 / 8 / 2 0 1 5

Categories of Provisions • Category A- generally, those provisions that can be implemented upon entry into force. • Category B- generally, those provisions that are designated for implementation on a date after a transitional period. • Category C- generally, those provisions that are designated for implementation on a date after a transitional period and requiring capacity building for implementation. 6

EAC Category A Notifications Rwanda notification of measures : WT/PCTF/N/RWA/1 Circulated on 27 th April 2015 Article 1. 4 Notification Article 2. 2 Consultation Article 5. 2 Detention Article 6. 2 Specific Disciplines on Fees and Charges for Customs Processing Imposed on or in connection with Importation and Exportation Article 7. 1 Pre-arrival Processing Article 7. 2 Electronic Payment Article 7. 3 Separation of Release from Final Determination of Customs Duties, Taxes, Fees and charges Article 7. 4. 1 Risk Management (Risk management system for customs control) Article 7. 4. 2 Risk Management (Risk management in a manner as to avoid arbitrary or unjustifiable discrimination or disguised restrictions to international trade)

Rwanda notification of measures : WT/PCTF/N/RWA/1 April 2015 Circulated on 27 th Article 7. 4. 4 Risk Management (each Member shall base risk management on assessment of risk through appropriate selectivity criteria) Article 7. 5 Post-clearance Audit Article 7. 9 Perishable Goods Article 9 Movement of goods intended for import under customs control Article 10. 2 Acceptance of Copies Article 10. 5. 1 Pre-shipment Inspection Article 10. 7 Common Border Procedures and Uniform Documentation Requirements Article 10. 8 Rejected Goods Article 11 Freedom of Transit

Burundi Notification of A Measures : WT/PCTF/N/BDI/1 Circulated on 1 st May 2015 Article 1. 4 Notification Article 5. 2 Detention Article 7. 8 Expedited Shipments Article 9 Movement of goods intended for import under customs control Article 10. 5 Preshipment inspection Article 10. 6 Use of Customs brokers Article 10. 8 Rejected goods Article 10. 9 Temporary admission of goods and inward and outward processing Article 12 Customs cooperation Tanzania Notification of A Measures: 5 th May 2015 Article 1. 4 Article 5. 2 Article 7. 5 Article 9 Article 10. 5 Article 10. 6 WT/PCTF/N/TZA/1 Circulated on Notification Detention Post-clearance Audit Movement of goods intended for import under customs control Preshipment Inspection Use of customs brokers

Kenya Notification of A Measures: WT/PCTF/N/KEN/1 2015 Circulated on 29 th April Article 1. 4 Notification; Article 4 Procedures for Appeal or Review (Articles 4. 1, 4. 2, 4. 3, 4. 4, and 4. 5); Article 5. 2 Detention; Article 9 Movement of goods intended for import under customs control; Article 10. 5. 1 Pre-shipment Inspection; and Article 10. 6 Use of customs brokers Uganda Notification of A Measures: WT/PCTF/N/UGA/1 Circulated on 7 August 2015 Article 1. 4 Notification Article 5. 2: Detention Article 7. 5 Post Clearance Audit article 9: Movement of goods intended for import under customs control 10. 5: pre-shipment inspection 10. 6 : Use of Customs Brokers’ 10. 8 (i): Rejected Goods 10. 9: Temporary Admission of Goods/Inward and Outward Processing

EAC Partner States priority measures (category C) 1. Publication : Information available through internet; 2. Enquiry points 3. Advance Ruling ; 4. Notification for enhanced control of Inspections. 5. Test procedures 6. General discipline on fees and charges imposed on or in connection with importation and exportation 7. Specific Disciplines on Fees And Charges Imposed or In connection With Importation and Exportation 8. Penalty Discipline 9. Pre arrival processing 10. Electronic Payment 11. Risk Management 12. Post clearance audit

EAC Partner States priority measures for support (category C) 13. Average release time 14. Perishable goods 15. Border agency cooperation 16. Formalities and documents 17. Acceptance of copies 18. Use of international standards 19. Single Window; 21. Common Border procedures; 22. Freedom of transit; 23. Customs cooperation 24. Institutional arrangements

Way forward Continue Capacity Building of the members of National Committees on Trade Facilitation (NCTF); Kenya, Rwanda, Tanzania and Uganda. Support Ratification Process; the Finalised the FTA Implementation Plans; . 1114/8/20 15 under EAC_US TORs of NCTF and Work plans Kenya and Rwanda ratified Organise donors roundtable to mobilise resources Regional Committee/Fo rum on TF Meeting To take stock of the implementatio n of TF No ve mb er /20 15 WTO Ministe rial in Nairobi D E C E M B E R 2 0 1 5

SCTIFI Decision The Sectoral Council on Trade, Industry, Finance and Investment meeting of 26 th February 2016 directed: • The Secretariat to convene a meeting to finalize the EAC Regional Trade Facilitation Action Plan by 30 th April 2016; and • The Republic of Burundi, Republic of Uganda and the United Republic of Tanzania to expedite the ratification of the WTO Trade Facilitation Agreement. 14

What is happening now? • Finalization of National Implementation Plans and regional plans (meeting of the regional sub. committee held in dar (29 th march to 1 st April 2016). Another meeting is scheduled in June. • Ratification (Only Kenya and Rwanda have ratified) • When 2/3 of the Membership has deposited their documents of ratification, the TFA will be entered into force. 15

Summary of Commitments Status Signature of the TFA Agreement Bali December 2013 Notification of Category A WT/PCTF/N/RWA/1 Circulated on 27 th April 2015 WT/PCTF/N/BDI/1 Circulated on 1 st May 2015 WT/PCTF/N/TZA/1 Circulated on 5 th May 2015 WT/PCTF/N/UGA/1 Circulated on 7 August 2015 WT/PCTF/N/KEN/1 Circulated on 29 th April 2015 Notification of B and C Not yet. Still in consultation to finalize the national plans. Draft regional plan was developed National Committee on TF Except Burundi and Tanzania. A regional Trade Facilitation was created by the Council Capacity Building is Underway Ratification Kenya and Rwanda (acceptance instruments not submitted to WTO. Note 2/3 of members to enter into force Q 2: Partners and potential GIZ, UNCTAD, US; TMEA, ………. . The SCTIFI directed EAC Secretarita to mobilise resources 16

Q 3 : Strategies : EAC Customs Union • Coordination; • Amend regional instruments, regulations and procedures • Harmonization; • Mobilize resources for regional projects (donors Roundtable ) ; • Create a unit to coordinate the implementation • Capacity building of the staff and stakeholders • Implementation measures with regional nature, … 17

Q 3 : Strategies : Partner States role • Notification; • Ratification; • Establish a National Committee on TF (Private Sector should play a big role; • Implementation measures with national nature and Collaborate regionally and internationally ; • Mobilize resources (Donors Roundtable) , …. 18

Q 4: Opportunities • Obligations in the agreement (Donors and recipients ); • Exiting Partnership on TF in the regional; • Regional obligations in the Customs Union Protocol; • Trade facilitation benefits for all countries 19

Reference ; 1. 2. 3. www. WTO. org ; https: //www. wto. org/english/tratop_e/tradfa_e. htm www. eac. int; 20

Thank you for your attention 21