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Maize Program > Highlights

East Africa Community Custom Union Launched

After almost four years in the making, the much anticipated East Africa Community Custom Union was launched on December 31st, 2004 throughout the region. As expected, the launching was quickly followed by some confusion at the borders and ports of entry. Reports started trickling in that customs officials were not recognizing the new EAC tariffs. RATES staff learned that grain maize imported into Kenya from Uganda and Tanzania was still being charged duty, along with increased duties on rice, used clothes and other commodities.

In order to help in the regional understanding of the Custom Union, the RATES Trade Office organized three open forums held in Dar es Saalam, Nairobi and Kampala with the theme, "Implications of the EAC Customs Union on Regional Trade". Mr. Peter Kiguta, EAC Customs and Trade Director General, was the keynote speaker for all three forums. In his presentation, he informed the participants that the new Custom Union Protocol consisted of two components: the common external tariffs and the elimination of the internal tariffs among member states. Mr. Kiguta's presentation went on to clearly outline the specifics and regulations of the Customs Union. He made it clear that some imports will continue to attract between 35%-100% duty if they enjoy subsidies at origin or if they are used goods that offer competition to local production.

Internal tariffs will be eliminated in five years but, as of now, maize, beans, and rice, while attracting zero duty internally, must still meet the rules of origin. All agricultural inputs will attract 0% tariff.

Given that each member state is a member of COMESA or SADC, it was agreed that each member state would continue to observe all the tariff agreements with either COMESA or SADC for a period of two years. After the two years, EAC will negotiate with both COMESA and SADC as one trading block and agree on common external tariffs with other regional trading blocks.