ALAN PEAT THERE ARE major problems hampering implementation of the East African Customs Union (EACU) - established at the beginning of this year. Under the EACU, common duty rates should apply uniformly on goods imported into East Africa, regardless of whether the point of entry is Kenya, Tanzania, or Uganda. A common customs valuation system should also apply in all three countries. There is a list of prohibited and restricted imports and exports, and the states are obliged to apply harmonised export promotion arrangements - such as export processing zones (EPZs) and free ports. During a senior government meeting in Nairobi recently, called to assess how the union was progressing, according to The East African, it was revealed that value added Tax (VAT) rates and other internal taxes such as excise duties had not yet been harmonised. “This,” said writer Jaindi Kisero, “defeats the purpose of a common external tariff - as VAT and excise duties are levied on imports.” And, where tariffs have been removed, he added, non-tariff barriers, such as surcharges and restriction on movement by traders, have been introduced by some states.” Part of the blame, he added, was that the handbook on the common external tariff was not well distributed and not immediately available at border posts.
