EAC Trade Facilitation Arusha Kibo Palace 11 th April 2016 By Evariste Munyampundu Emunyampundueachq org evampundugmailcom 255 762593756 1 What do you see on this map ID: 531314
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IMPLEMENTATION OF TRADE FACILITATION AGREEMENT IN EAC
EAC Trade Facilitation Arusha, Kibo Palace 11th April 2016By Evariste Munyampundu; Emunyampundu@eachq.org; evampundu@gmail.com . +255 762593756
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What do you see on this map ? Slide3
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 artcle5 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.Slide4
Legal mandate (cnd
) EAC Protocol on SPSOSBP Act (Under assent process)Customs Management Act, 2004All provisions of the actfinal provisions of WTO TFA5) 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 2nd Extraordinary Summit of 11th April 2002 directed the Partner States to negotiate as EAC Bloc in the WTO and EPAsSlide5
EAC FT Status Post Bali
EAC Regional forum in Nairobi : 16-18th July 2014 EAC Regional forum in Kigali : 2nd to 6th March 2015 Video conference consultations : 25th and 30th /3/ 2015.Notifcation Target dates 31/3/2015
Rwanda, Burundi and Tanzania notified
Kenya Notified
20/4/2015
7/8/2015
Uganda Notified
BALI
December
2013
22nd May 2015
Ministers of Trade
Compared notes on measures and Agreed to notify on 31
st
as directed by Ministers of TradeSlide6
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.6Slide7
EAC Category A Notifications
Rwanda notification of measures : WT/PCTF/N/RWA/1 Circulated on 27th April 2015Article 1.4 NotificationArticle 2.2 ConsultationArticle 5.2 DetentionArticle 6.2 Specific Disciplines on Fees and Charges for Customs Processing Imposed on or in connection with Importation and ExportationArticle 7.1 Pre-arrival ProcessingArticle 7.2 Electronic PaymentArticle 7.3 Separation of Release from Final Determination of Customs Duties, Taxes, Fees and chargesArticle 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)Slide8
Rwanda notification of measures : WT/PCTF/N/RWA/1 Circulated on 27th April 2015
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 AuditArticle 7.9 Perishable GoodsArticle 9 Movement of goods intended for import under customs controlArticle 10.2 Acceptance of CopiesArticle 10.5.1 Pre-shipment InspectionArticle 10.7 Common Border Procedures and Uniform Documentation RequirementsArticle 10.8 Rejected GoodsArticle 11 Freedom of TransitArticle 7.4.4 Risk Management (each Member shall base risk management on assessment of risk through appropriate selectivity criteria)Article 7.5 Post-clearance AuditArticle 7.9 Perishable GoodsArticle 9 Movement of goods intended for import under customs controlArticle 10.2 Acceptance of CopiesArticle 10.5.1 Pre-shipment InspectionArticle 10.7 Common Border Procedures and Uniform Documentation RequirementsArticle 10.8 Rejected GoodsArticle 11 Freedom of TransitSlide9
Burundi Notification of A Measures
: WT/PCTF/N/BDI/1 Circulated on 1st May 2015Article 1.4 NotificationArticle 5.2 DetentionArticle 7.8 Expedited ShipmentsArticle 9 Movement of goods intended for import under customs controlArticle 10.5 Preshipment inspectionArticle 10.6 Use of Customs brokersArticle 10.8 Rejected goodsArticle 10.9 Temporary admission of goods and inward and outward processingArticle 12 Customs cooperationTanzania Notification of A Measures: WT/PCTF/N/TZA/1 Circulated on 5th May 2015Article 1.4 NotificationArticle 5.2 DetentionArticle 7.5 Post-clearance AuditArticle 9 Movement of goods intended for import under customs controlArticle 10.5 Preshipment InspectionArticle 10.6 Use of customs brokersSlide10
Kenya Notification of A Measures
: WT/PCTF/N/KEN/1 Circulated on 29th April 2015Article 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; andArticle 10.6 Use of customs brokersUganda Notification of A Measures: WT/PCTF/N/UGA/1 Circulated on 7 August 2015Article 1.4 NotificationArticle 5.2: Detention Article 7.5 Post Clearance AuditArticle 7.5 Post Clearance Auditarticle 9: Movement of goods intended for import under customs control 10.5: pre-shipment inspection10.6 : Use of Customs Brokers’10.8 (i): Rejected Goods10. 9: Temporary Admission of Goods/Inward and Outward ProcessingSlide11
EAC Partner States priority measures
(category C) Publication :Information available through internet;Enquiry pointsAdvance Ruling ;Notification for enhanced control of Inspections. Test proceduresGeneral discipline on fees and charges imposed on or in connection with importation and exportation Specific Disciplines on Fees And Charges Imposed or In connection With Importation and ExportationPenalty DisciplinePre arrival processingElectronic PaymentRisk ManagementPost clearance auditSlide12
EAC Partner States priority measures for support (category C)
13. Average release time14. Perishable goods15. Border agency cooperation16. Formalities and documents17. Acceptance of copies18. Use of international standards19. Single Window;21. Common Border procedures;22. Freedom of transit;23. Customs cooperation24. Institutional arrangementsSlide13
Way forward
Continue Capacity Building of the members of National Committees on Trade Facilitation (NCTF);Support the Ratification Process; Finalised the FTA Implementation Plans;.Organise donors roundtable to mobilise resources November /2015 Regional Committee/Forum on TF Meeting
11-14/8/2015 under EAC_US
Kenya, Rwanda, Tanzania and Uganda.
WTO Ministerial in Nairobi
DECEMBER 2015
TORs of NCTF and Work plans
To take stock of the implementation of TF
Kenya and Rwanda ratified Slide14
SCTIFI Decision
The Sectoral Council on Trade, Industry, Finance and Investment meeting of 26th February 2016 directed: The Secretariat to convene a meeting to finalize the EAC Regional Trade Facilitation Action Plan by 30th April 2016; andThe Republic of Burundi, Republic of Uganda and the United Republic of Tanzania to expedite the ratification of the WTO Trade Facilitation Agreement.14Slide15
What is happening now?
Finalization of National Implementation Plans and regional plans (meeting of the regional sub.committee held in dar (29th march to 1st 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. 15Slide16
Summary of Commitments
Commitments Status Signature of the TFA Agreement Bali December 2013Notification of Category AWT/PCTF/N/RWA/1 Circulated on 27th April 2015WT/PCTF/N/BDI/1 Circulated on 1st May 2015WT/PCTF/N/TZA/1 Circulated on 5th May 2015WT/PCTF/N/UGA/1 Circulated on 7 August 2015WT/PCTF/N/KEN/1 Circulated on 29th April 2015Notification of B and CNot yet . Still in consultation to finalize the national plans . Draft regional plan was developed National Committee on TFExcept Burundi and Tanzania. A regional Trade Facilitation was created by the CouncilCapacity Building is UnderwayRatification 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
Donors
Obligations
Transparency, Coordination,
harmonisation
and ownership
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Q3 : 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,… 17Slide18
Q3 : 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) ,….18Slide19
Q4: 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 19Slide20
Reference
;www.WTO.org ;https://www.wto.org/english/tratop_e/tradfa_e/tradfa_e.htm www.eac.int;20Slide21
Thank you for your attention
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