FINANCIAL, TAXING AND MANAGERIAL REGULATIONS


Trading in manufactured goods within the EAC region

The main requirements relating to trading in manufactured goods within the EAC region are:

  1. a) The EAC Rules of Origin (2015);
  2. b) Product Quality Standards; and
  3. c) Domestic Taxes- that is Value Added Tax (VAT) and Excise Tax
a. EAC Rules of Origin (2015)

EAC Rules of Origin for manufactured goods worth US$ 2,000 and above

 Goods must come from/obtained or be produced from one of the EAC Partner States so as to qualify for zero tariff/duty under the EAC Rules of Origin.

If a trader (of manufactured goods worth US$ 2,000 above) wishes to benefit from zero tariff/duties on goods, they must comply with AT LEAST ONE of the 2 (two) origin criteria/rules as follows.

 

Criteria/Rule 1:

Wholly produced or obtained goods must be completely/wholly produced or got from one of the EAC Partner States. In other words, no materials from outside the EAC region have been used to produce the goods. Example of wholly produced goods include: mineral products, vegetable products, live animals born and raised within EAC, products obtained from live animals, products obtained by hunting or fishing conducted within the EAC; products from sea fishing with EAC region, scrap and waste resulting from manufacturing operations with the EAC region

 

Criteria/Rule 2:

Sufficient Processing Criteria/Rule; goods which have been produced in the EAC region using materials from outside EAC MUST go through sufficient/significant industrial processing before they can comply with this criteria/rule. A list of sufficiently processed goods is provided for under the EAC Customs Union (Rules of Origin) Rules, 2015 First Schedule Part 1. EAC Rules of Origin 2015 are available on the EAC website.

 

It is advisable that a trader visits the local chamber of commerce or revenue authority to seek advice and instructions.


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