International Business News – Export to Kenya, Uganda, Tanzania, Burundi, Rwanda, South Sudan and Congo Attention!
From July 1 this year, the East African Community officially implemented the fourth 35% Common External Tariff (CET) decision. The planned products include:
Dairy products, meat products, grains, edible oils, beverages and alcohol, sugar and confectionery, fruits, nuts, coffee, tea, flowers, condiments, furniture, leather products, cotton textiles, clothing, steel products and ceramic products, etc.
To explain here, the members of the East African Community include: Kenya, Uganda, Tanzania, Burundi, Rwanda, South Sudan and the Democratic Republic of Congo, the seven East African countries.
At present, the EAC Common External Tariff (CET) rate is divided into three levels, 25% for final consumer goods, 10% for intermediate products, and 0% for raw materials and capital goods. The original intention was to protect local manufacturing from competition from cheap imports.
The current EAC Secretary General Peter Mathuki said the introduction of the 35% common external tariff this time is a positive step towards promoting the development of the industrial sector and maximizing the benefits of the African Continental Free Trade Area (AfCFTA). The move will stimulate intra-regional trade by encouraging the development of local manufacturing and increasing the value-added and industrialization of products.
According to local media, after the maximum common external tariff rate is raised from 25% to 35%, the intra-regional trade revenue of the EAC will increase by 18.9 million US dollars, the employment rate will increase by 0.03%, and the trade revenue of each member state will increase by 5.5%.
Trading Points to Note
First, avoid transactions with the above-mentioned high-risk payment methods, and try to pay by letter of credit to reduce risks;
The second is to carefully select trading partners, carefully screen foreign information, and understand the credit status of the other party through multiple channels, including calling the company headquarters to verify the authenticity of branches and orders;
The third is to take appropriate legal measures to protect their own rights and interests in a timely manner after the case occurs, such as reporting the case to the Interpol in a timely manner, and assign personnel to the location of the goods to handle the return or transshipment of the goods, try to minimize losses, and report to the competent authorities and embassies business office reports the situation.