  
  
WT/TPR/S/384/Rev.1  
5 June 2019  
(19-3885) Page: 1/417 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
EAST AFRICAN COMMUNITY (EAC)  
Revision  
This report, prepared for the third joint Trade Policy Review of the East African Community (EAC), 
has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required 
by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh 
Agreement Establishing the World Tr ade Organization), sought clarification from the EAC members  
on its trade policies and practices.  
 
Any technical questions arising from this report may be addressed to Mr. Jacques Degbelo (tel: 022 
739 5583), M s. Denby Probst (tel: 022 739 5847), Mr. Micha el Kolie (tel: 022 739 5931), Mr. Rosen 
Marinov (tel: 022 739 6391), Mr. Xiny i Li (tel: 022 739 5579), Mr. Nelnan Koumtingue (tel: 022 739 
6252) and M s. Mena  Hassan  (tel: 022 739 6 522). 
 
Document WT/TPR/G/ 384 contains the policy statement s submitted by Burundi, Kenya, Rwanda, 
Tanzania and Uganda . 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report was drafted in English.  
  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  5 
1   ECONOMIC ENVIRON MENT  ................................ ................................ ..........................  9 
1.1   Main Features of the Community  ................................ ................................ ...................  9 
1.2   Recent Economic Developments  ................................ ................................ ................... 10 
1.3   Developments in Trade and Investment  ................................ ................................ ........ 11 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ................ 11 
1.3.2    Trends and patterns in foreign direct investment (FDI)  ................................ ................. 13 
2   TRADE AND INVEST MENT REGIMES ................................ ................................ ...........  15 
2.1   General Framework  ................................ ................................ ................................ ....15 
2.2   The EAC in practice  ................................ ................................ ................................ .....16 
2.3   Participation in the WTO  ................................ ................................ .............................. 17 
2.4   Trade Agreements and Arrangements  ................................ ................................ ........... 18 
2.4.1    The COMESA -EAC-SADC Tripartite Forum  ................................ ................................ ...18 
2.4.2    Relations with the European Union  ................................ ................................ ............. 19 
2.4.3    Relations with the United States  ................................ ................................ ................ 19 
2.4.4   Other agreements and arrangements  ................................ ................................ ......... 20 
2.5   Investment Regime  ................................ ................................ ................................ ....20 
3   TRADE POLICIES A ND PRACTICES BY MEAS URE ................................ ........................  22 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 22 
3.1.1   Customs procedures and documentation  ................................ ................................ .....22 
3.1.2    Customs valuation  ................................ ................................ ................................ ...23 
3.1.3    Rules of origin  ................................ ................................ ................................ ......... 24 
3.1.4    Tariffs  ................................ ................................ ................................ .................... 24 
3.1.4.1    The applied MFN tariff  ................................ ................................ ........................... 25 
3.1.4.2    WTO tariff bindings  ................................ ................................ ............................... 29 
3.1.4.3    Tariff exemptions and reductions  ................................ ................................ ............ 30 
3.1.4.4    Tariff preferences  ................................ ................................ ................................ ..32 
3.1.4.5    Other duties and charges  ................................ ................................ ....................... 32 
3.1.5    Internal taxes ................................ ................................ ................................ .......... 32 
3.1.6    Import prohibitions, restrictions, and licensing  ................................ ............................ 33 
3.1.7    Contingency measures  ................................ ................................ ............................. 33 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 33 
3.2.1    Documentation  ................................ ................................ ................................ ........ 33 
3.2.2    Taxation  ................................ ................................ ................................ ................. 34 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ............................. 34 
3.2.4    Export assistance  ................................ ................................ ................................ .....34 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......34 
3.3.1    Incentives  ................................ ................................ ................................ ............... 34 
3.3.2    Standards and other technical requirements  ................................ ............................... 35 WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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3.3.3    Sanitary and phytosanitary measures  ................................ ................................ ......... 36 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 36 
3.3.5    Intellectual property rights  ................................ ................................ ........................ 37 
4   TRADE POLICIES B Y SECTOR  ................................ ................................ .....................  39 
4.1   Agriculture  ................................ ................................ ................................ ................. 39 
4.1.1    Overview  ................................ ................................ ................................ ................ 39 
4.1.2    Agricultural policy  ................................ ................................ ................................ ....39 
4.1.3    Livestoc k ................................ ................................ ................................ ................ 40 
4.1.4    Fisheries  ................................ ................................ ................................ ................. 40 
4.2   Mining and Energy  ................................ ................................ ................................ ......41 
4.2.1    Mining  ................................ ................................ ................................ .................... 41 
4.2.2    Energy  ................................ ................................ ................................ ................... 41 
4.3   Manufacturing  ................................ ................................ ................................ ............ 42 
4.4   Services  ................................ ................................ ................................ .................... 43 
4.4.1    Transport  ................................ ................................ ................................ ................ 43 
4.4.1.1    Road and rail transport  ................................ ................................ .......................... 43 
4.4.1.2    Water transport  ................................ ................................ ................................ ....43 
4.4.1.3    Air transport  ................................ ................................ ................................ ......... 44 
4.4.2    Tourism  ................................ ................................ ................................ .................. 44 
4.4.3    Professional services  ................................ ................................ ................................ 45 
5   APPENDIX TABLES  ................................ ................................ ................................ .... 46 
 
CHARTS  
 
Chart 3.1 Distribution of CET applied tariffs, 2011 and 2018  ................................ .................... 27 
Chart 3.2 Tariff escalation by manufacturing sector (ISIC 2 -digit level), 2018  ............................ 29 
 
TABLES  
 
Table 1.1 Selected indicators, 2011 -17 ................................ ................................ ..................  9 
Table 1.2 Extra -EAC trade by major trading partners, 2011 -17 ................................ ................ 12 
Table 1.3 EAC trade in services, 2011 -17 ................................ ................................ .............. 13 
Table 1.4 Total FDI inflows and intra -EAC FDI, 2011 -17 ................................ .......................... 14 
Table 2.1 The legal framework of the EAC  ................................ ................................ ............. 16 
Table 3.1 Summary table on sensitive items subject to high tariffs, 2011 and 2018  ................... 25 
Table 3.2 Structure of the CET, 2011 and 2018  ................................ ................................ .....26 
Table 3.3 Summary analysis of the CET, 2018  ................................ ................................ .......27 
Table 3.4 WTO tariff bindings by EAC members  ................................ ................................ .....29 
Table 3.5 Tariff lines (at the 8 -digit level) with nation al rates different from the CET  
rates, 2018  ................................ ................................ ................................ ....................... 31 
Table 3.6 Fees for services and documents  ................................ ................................ ........... 32 WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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Table 3.7 Overview of EAC's main export promotion schemes  ................................ .................. 34 
Table 3.8 EAC's harmonized SPS measures and procedures  as of December 2017  ...................... 36 
Table 3.9 Year of entry into force of selected international IP treaties by EAC countries  .............. 37 
Table 4.1 Number of services subsectors committed by EAC members  ................................ ......43 
 
BOXES  
 
Box 2.1 The EAC mechanism for the elimination of NTBs  ................................ ......................... 17 
Box 3.1 Main principles governing the EAC's SCT  ................................ ................................ ...23 
 
APPENDIX TABLES  
 
Table A1.1 EAC trade, 2011 -17 ................................ ................................ ............................ 46 
Table A1.2 Extra -EAC merchandise imports by group of products, 2011 -17 ............................... 47 
Table A1.3 Extra -EAC merchandise exports by group of  products, including re -exports  
2011-17 ................................ ................................ ................................ ........................... 48 
 
 
Table A3. 1 "Sensitive" products subject to high tariffs, 2017  ................................ .................. 49 
Table A3. 2 Non -ad valorem tariffs, 2017  ................................ ................................ .............. 51 
 
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SUMMARY  
1. The East African Community (EAC) consists of Burundi, Kenya, Rwanda, Tanzania, Uganda, 
and South Sudan (which is not yet a WTO Member). Agriculture remain s the key driver of the 
economies of the EAC countries but the services sector is the main contributor to their GDP.  In fact, 
most of the populations (about 80%) live in rural areas and depend on agriculture for their livelihood. 
High costs of doing busine ss limit the importance of manufacturing to these economies, while recent 
oil discoveries, mainly in Kenya and Uganda, are expected to boost the economic development of 
the countries. Nonetheless, EAC countries face various socio -economic challenges despit e their 
favourable conditions for agriculture, their important sources of renewable energy, and their total 
population of over 168.2 million. With the exception of Kenya, they all remain least developed 
countries (LDCs) and are yet to significantly diversi fy their economies.  
2. During the period under review, the EAC WTO Members recorded strong GDP growth driven 
by increased public investments in transport and energy infrastructures, favourable weather 
conditions and strategic policy interventions. Agricultur al production was boosted and, driven by 
buoyant tourism activities, the services sector also recorded a good performance. Individually, 
performance was mixed. Kenya's good economic performance helped it to acquire the status of 
lower -middle -income country  in 2014, according to the World Bank's classification.  Rwanda's strong 
and continuous economic growth has also been accompanied by steady improvements in many of 
its social indicators. However, the  economy  of Burundi  has been severely affected by its political 
crisis since 2015 , although recovery signs were noticeable in 2016 and 2017.  
3. Ongoing reform efforts by EAC countries aim at establishing  a monetary union by 2024 . 
Indeed, in 2013, they adopted the  East African Monetary Union Protocol (EAMU Protoc ol), on top of 
the macroeconomic convergence framework  in place since 2007. P rice stability is the primary 
objective of monetary policies in all EAC WTO Members . However, core macroeconomic policies are 
not yet harmonized and remain country specific. Infla tion, highly volatile during the review period, 
is driven mainly by international food and oil prices. As a consequence, agricultural performance, 
especially domestic food supply, is also a determinant of inflation. Regarding fiscal matters, 
notwithstandin g reforms undertaken, domestic resources mobilization remained insufficient to match 
increased public expenditures, mainly on ongoing infrastructure projects, which translate into 
continued fiscal deficits.   
4. The ratio of EAC WTO Members' trade  (including intra -EAC trade)  in goods and services to 
GDP remains moderate, at about 50%. The low i ntra-EAC trade in goods (at around 10% of the total 
merchandise trade of the Community over the review period ) reflects, inter alia , informal 
(unrecorded) cr oss-border trade; poor infrastructure; and non -tariff barriers including cumbersome 
administrative procedures. In other words, n early 90% of the EAC's trade in good takes place outside 
the region, with imports originating mainly from China, India, th e Euro pean Union and the United 
Arab Emirates , which are also among the main export markets. Common Market for Eastern and 
Southern Africa ( COMESA ) and Southern African Development Community ( SADC ) countries 
(excluding EAC member States) are also  important desti nations .  
5. Overlapping  membership of regional economic communities by individual EAC countries, 
notably COMESA and SADC,  remains a challenge and further complicates the national trade regimes. 
In June 2015, negotiations were concluded for a Tripartite (COME SA-EAC-SADC) Free Trade 
Agreement (FTA) in Goods , with a view to rationalizing the integration process in the region . 
Negotiations on trade in services and on other trade -related areas ( including competition policy, 
intellectual property rights) are expect ed to start after the launch of the FTA on trade in goods.  
6. Under the U.S. African Growth and Opportunity Act (AGOA), Kenya, Rwanda,  Tanzania, and 
Uganda benefit from duty-free and quota -free access for a range of products, including selected 
agricultural and textile products. Kenya, Tanzania, and Uganda are also eligible for preferences under 
the "wearing apparel" provisions of the AGOA . The negotiations on an Economic  Partnership 
Agreement (EPA) with the European Union were concluded in October 2014 . As at December 2017, 
the EPA was ratified by Kenya and signed by Rwanda . Under the Everything but Arms initiative of 
the European Union, all EAC countries, except Kenya, a re eligible for preferences.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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7. The EAC seeks to promote the Community as a single investment area ; its Treaty calls for the 
harmonization and rationalization of  investment incentives, including those relating to taxation of 
industries . However, the legal an d institutional frameworks for investment remain country -specific.  
8. The national investment c odes are general ly liberal, with no major  restrictions on foreign 
presence . Local and foreign investors receive the same treatment in terms of incentives . 
9. Under th e WTO Trade Facilitation Agreement (TFA), Kenya, Rwanda, and Uganda have 
deposited their instrumen ts of acceptance . All EAC WTO Members have notified their Category A 
commitments. A Regional Trade Facilitation Sub -Committee  was established in 2015 to coord inate 
the implementation of the TFA and other trade facilitation measures decided at the regional level . 
EAC countries continue to fulfil their notification obligations at various degrees . However, there are 
several areas where notifications remain outstan ding. 
10. Customs procedures are  carried out by licensed customs clearing agents . Pre-shipment or 
destination inspections for customs valuation purposes  are not required in any EAC country . 
However, p re-shipment inspection for conformity assessment purposes is required for certain goods 
in Burundi and Kenya.  Although some customs procedures and documentation requirements 
continue to be country -specific, and national customs continue to use different co mputer systems, 
noticeable progress has been made towards full harmonization, in accordance with the provisions of 
the EAC Customs Management Act, 2004 (as amended in 2009), and the EAC Customs Management 
Regulations,  2010.  
11. A regional A uthorized Economic Operator (AEO)  programme was introduced in 2016. All 
imports into the EAC and intra -EAC transfers of goods are cleared under the EAC's single customs 
territory (SCT) model. Under the SCT, i mports are declared only at the country of destination, and 
are rel eased at the first point of entry; the goods are then moved under a single bond to the final 
destination.  Customs valuation is broadly based on the provisions of the WTO Agreement on 
Implementation of Article VII of GATT 1994. However, national customs adm inistrations encounter 
implementation difficulties.  
12. Since the last Review of EAC  members , the CET average rate slightly increased from 12.7% 
in 2011 to 12.9%  in 2018 . Three tariff bands (zero, 10%, and 25%) apply to most imports; higher 
rates, ranging from 35% to 100%, and alternate duties apply to a list of "sensitive" items. As a 
consequence, the ad valorem  CET rates exceed a number of corresponding ad valorem  rates bound 
by Burundi, Kenya and Rwanda. Moreover, for some lines, applied alternate tariffs  may exceed 
bound ad valorem  rates. Bindings  cover 22.4% of all Burundi's tariff lines, 16.1 % of Kenya's, 100% 
of Rwanda's, 14 % of Tanzania's,  and 16.5 % of Uganda's. In accordance with the provisions of the 
EAC Customs Management Act, 2004, and the EAC Customs Management (Duty Remission) 
Regulations, 2008 , the national d uty and tax exemption and concession schemes are mostly 
harmonized in the EAC . The schemes, including ad hoc duty and tax exemptions, have  led to 
significant revenue forgone by EAC countr ies. 
13. Fees on some services and documents issued by Customs have been harmonized . A 
development levy of 1.5% on a list of products from non -EAC countries is also collected . Various 
other duties and charges are levied individually by EAC countries.  
14. All EAC members apply internal taxes (VAT and excise duties), whose regimes are not yet 
harmonized. VAT applies to goods and services, including imports, at standard rates ranging from 
16% in Kenya to 20% in Tanzania . Reduced rates are in place in Kenya (12%) and Uganda (6%). 
Exports are zero -rated under the national VAT regimes . Excise duties are levied on a list of products 
at rates which are determined by individual EAC members.  
15. No contingency  measures have so far been imposed by EAC countries. They are governed  by 
the EAC Customs Union (Anti -Dumping Measures) Regulations, 2004 ; the EAC Customs Union 
(Subsidies and Countervailing Measures) Regulations, 2004 ; and the EAC Customs Union (Safeguard 
Measures) Regulation s, 2004 . EAC members may initiate investigations and reviews against each 
other. However, this has never happened.  Kenya also has national legislation on trade remedies.  
16. The export regime, including procedures and documentation requirements , is not yet fully 
harmonized. All EAC countries apply export tax es on raw hides and skins . In addition, export duties WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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and taxes are collected on  specified items  by Burundi (minerals); Kenya ( wet blue leather,  crust 
leather, and raw macadamia nuts); Tanzania (raw cashew nuts, wet blue leather, and fish and fish 
products ); and by Uganda (raw tobacco, fish and fish products, and coffee). In general, these 
measures are meant to encourage domestic value addition. A number of export promotion 
instruments are harmonized within the EAC. These include: manufacturing under bond, export 
processing zones, and duty remission schemes.  Goods benefiting from any of these schemes are 
destined primarily for export , and manufacturers are required to sell at least 80% of their products 
outside the EAC.  
17. Standards and technical regulations regimes remain country -specific to a large extent. 
However, harmonization efforts are ongoing at the regional level, and the East African Standards 
Committee (EASC ) oversees the  development of  new standards and the harmo nization of the  
existing ones.  As at 30 September 2018, the EAC catalogue included 1,526 standards, of which 
1,007 were international.  On SPS, harmonized measures and procedures have been developed for 
plants; mammal s, birds and bees; fish and fishery prod ucts; and food safety . In general, EAC 
countries continue to experience challenges in the harmonization of their regimes on SPS -related 
measures, standards and technical regulations, particularly with regards to the mutual  recognition 
of inspection certifi cates, and this contributes to further increasing trade costs in the region. During 
the review period, several measures were notified by EAC countries in the areas of SPS and TBT.  
18. None of the EAC countries has notified a state -trading enterprise pursuant t o Article XVII:4(a) 
of GATT 1994 and paragraph 1 of the Understanding on the Interpretation of Article XVII. However, 
state-owned enterprises remain an important feature of the economies . Competition is regulated at 
both regional and national levels. The E AC's Competition Act was adopted in 2006, and came into 
force in 2014. Its implementation agency, the EAC Competition Authority , deals with all competition 
issues having cross-border effects . In principle, d omestic competition issues remain under the 
jurisdiction of national competition laws and institutions. Uganda does not have a formal regime on 
competition, and Burundi and Rwanda are yet to establish their competition authorities . 
19. Intellectual Property Right (IPR) issues are not harmonized in the EAC, b ut efforts are being 
made at regional level to assist EAC member States to implement the TRIPS Agreement with a view 
to promoting copyright and cultural industries, traditional knowledge, geographical indications, and 
technology transfer.  Furthermore, a r egional IP Protocol and Policy were adopted by the Council of 
Ministers in 2013 to maximiz e the benefits of TRIPS flexibilities. The protection of IPR remains a 
challenge for individual EAC countries. While the framework for IPR protection is yet to be full y 
established in Burundi, in Kenya for example, a well -established Anti-Counterfeit Agency is tasked 
with combatting counterfeiting, trade in counterfeit goods and other related dealings; and anti -
counterfeit legislation is being amended to increase the pe nalties , and broaden the scope to include 
unbranded goods and labels. At the regional level, actions are being initiated  to fight counterfeit and 
pirated products. An EAC Anti -Counterfeit Bill is being drafted to pro vide a legal framework for EAC 
members to prohibit trade in counterfeit goods.  
20. Sectoral policies are not harmonized within the EAC, but countries are making joint efforts 
under several regional initiatives, mainly on agriculture and services, their main economic sectors. 
Agriculture plays a key  role in the economies of all EAC member States, in terms of contribution to 
GDP, livelihood, and foreign exchange earnings; one of the agriculture policy priority is to achieve 
food security. Its contribution to GDP ranged from around 25% in Uganda to aro und 42% in Burundi. 
Agricultural exports are dominated by coffee, cut flowers, tea, tobacco, fish and vegetables.   
21. With high costs of doing business due, inter alia , to high regulatory burden and increased 
import competition, manufacturing is characte rized by limited value addition. It is highly 
concentrated in agro -processing activities , and is dominated by micro, small and medium 
enterprises . Costly and unreliable energy supply is also a major impediment to the development of 
manufacturing within the EAC.  In a move to attract foreign investment,  including in the 
manufacturing sector,  the EAC countries provide , inter alia , corporate income tax  incentives , and 
remission of customs duties and VAT . 
22. The services sector constitutes the main contributor to GDP in  all EAC countries. However, its 
potential remains untapped. Under the GATS, EAC countries have individually undertaken  
commitments , generally on a few service categories.  Under the EAC Common Market Protocol , the 
member States are committed to liberalizin g a list of services in, inter alia , finance, transport, 
communication, tourism, and business  services across all modes of supply . The num ber of WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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subsectors covered by the commitments range  from 59 in Tanzania to 101 in Rwanda. Countries  are 
also committed to refraining from introducing any new restrictions on the provision of services.  
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1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Community  
1.1.  The East African Community (EAC)  is comprised of Burundi, Kenya, Rwanda, Tanzania, Uganda, 
and South Sudan. South Sudan, the last country to join the EAC in April 2016, is not yet a WTO 
Member. The five EAC WTO Members cover a land area of 1.8 million km2, and  had a population 
estimated at 1 79.2 million in 201 7 (Table 1.1).1 Tanzania accounts for over half of the Community's 
land area and a third of its population. Kenya, the largest economy in terms of gross domestic 
production (GDP), accounts for about a thir d of the land area and a similar share of the population. 
The Community's population has a relatively young age structur e. The population  is increasing at an 
average annual rate of 3%, and is projected to double every 23 years.  
Table 1.1 Selected indicators, 2011 -17  
  2011  2012  2013  2014  2015  2016  2017  
Population (million)  144.7  149.1  153.7  158.3  163.1  168.2  179.2  
  Urban (million)  33.6 35.4 37.3 39.2 41.2 43.3 45.6 
  Density (per km2) 84.8 87.4 90.1 92.8 95.6 98.5 101.4  
  Annual %age change  3.1 3.1 3.0 3.0 3.0 3.0 3.0 
Life expectancy  61.2 62.0 62.6 63.2 63.8 64.2 .. 
GDP at market price  
(USD billion, current prices)  106.1  123.6  135.3  148.2  145.6  155.0  170.9  
GDP per capita  
(USD, current prices)  733.4 828.8  880.4  936.1  894.1  923.0  988.0  
Real GDP per capita  
(constant 2010 US D prices)  737.8 750.4  770.1  792.0  815.2 838.1 858.3  
Real GDP  
(constant 2010 US D billion) 106.8 111.9 118.4 125.4 132.9 140.8 148.4  
  Annual %age change  7.4 4.8 5.8 5.9 6.0 5.9 5.4 
Share of GDP at current basic prices  
Agriculture  30.0 30.6 30.6 30.2 31.3 32.4 34.2 
Mining and quarrying  2.5 2.5 2.2 2.0 2.1 2.3 2.2 
Manufacturing  10.7 10.1 9.5 8.8 8.6 8.3 7.8 
Electricity and water supply  1.8 2.1 2.1 2.2 2.3 2.4 2.3 
Construction  7.2 6.8 7.9 8.7 8.9 9.0 9.3 
Services incl. FISIMa 47.8 47.9 47.7 48.1 46.9 45.7 44.2 
Exports of goods and services 
(USD billion)  22.1 25.6 25.3 26.7 26.7 25.1 25.1 
Imports of goods and services 
(USD billion)  38.7 41.8 43.1 46.0 40.6 36.9 39.0 
Trade in  goods and services 
(%age of GDP)  57.2 54.6 50.5 49.1 46.2 40.0 37.5 
.. Not available.  
a FISIM: F inancial Intermediation Services Indirectly Measured . 
Note:  Aggregate figures do not include South Sudan.  
Source:  Member states' statistics offices; and World Bank's World Development Indicators. Viewed at: 
http://databank.worldbank.org/data/reports.aspx?source=world -development -indicators# .  
1.2.  EAC WTO Members had a combined GDP estimated at USD 170.9 billion in 2017 . Kenya, 
Tanzania, and Uganda are by far the largest  economies of the Community ; they accounted for about 
46.4%, 30.5% and 16 .0% of this total , respectively. R wanda accounted for  5.3%, and Burundi, 
1.8%. All countries except Kenya are in the low -income group, according to the World Bank's 2018 
country classifications by income level.2 Kenya i s in the lower -middle -income group. The average 
                                                
1 EAC's total population, including South Sudan, was estimated at 18 6 million in 2017  (World Bank's 
World Development Indicators) .  
2 Low-income economies are defined as those with a gross national income (GNI) per capita of 
USD 1,005 or less. L ower-middle -income economies are those with a GNI per capita of between USD 1,006 
and USD 3,955. World Bank. Viewed at: https://datahelpdesk.worldbank.org/knowledgebase/articles/906519 -
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GDP per capita of the E AC countries (excluding So uth Sudan) was estimated at USD  988 in 2017 , 
with those of Kenya and Tanzania being higher.  
1.3.  Agriculture and services remain  the two main drivers of EAC economies. The services sector is 
the largest contributor, accounting on avera ge for about 47% of the GDP over the review period, 
followed by  agriculture (between 30% and 34.2 %). However, about 80% of the population lives in 
rural areas and depends on agriculture for their livelihood. The contribution of the manufacturing 
sector dec lined slightl y during the review period, to 7.8% in 2017  (Table 1.1).  
1.4.  The EAC aims at "a prosperous, competitive, secure and politically united" region, through the 
successive establishment of a customs union, a common market, and a monetary union.3 This vision 
is operationalized through five-year development strategies. During the review period, t he 
implementation of the 4th EAC Development Strategy focused on the consolidation of the customs 
union and the establishment of the common market (Section 2.2) .4 
1.5.  The adoption of the East African Monetary Union Protocol (EAMU Protocol) in 2013 is an other  
milestone  in the region's integration  process. The Protocol lays the groundwork for the establishment 
of a monetary union by 2024. A centrepiece of this framework  is the creation of a common currency, 
to be managed by a supranational central bank. As a prerequisite, EAC countries adopted a 
macroeconomic convergence framework  in 2007, with the following primary criteria: a ceiling of 8% 
on headline inflation rates; a ceiling of 3% on fiscal deficit -to-GDP ratios (including grants); a ceiling 
of 50% on gross public debt -to-GDP ratios; and a floor of 4.5 months of imports for the levels of 
foreign exchange reserves. These criteria are supplemented by indicative criteri a, consisting of: a 
ceiling on core inflation rates (5%); a ceiling on fiscal deficits, excluding grants (6% of GDP); and a 
floor on tax -to-GDP ratios (25%). According to the EAC Secretariat, given the significant 
infrastructure projects in EAC countries, most of them are not likely to meet the threshold of 3% on 
the fiscal deficit including grants.  The relative performances of EAC member States are available in 
section 1 of annexes 1 -5. 
1.6.  Efforts are ongoing with a view to strengthening financial operations within the region. The 
African Development Bank is funding the EAC Payment and Settlement Systems Integration Project 
(EAC-PSSIP). The objective  of the Project is to contribute to the modernization, harmonization and 
cross-border interoperability of paymen t and settlement systems for commercial, securities market 
and retail transactions across the EAC. A cross -border payment system was launched in 2013, 
allowing traders in the Community to conduct real -time transactions in their local currencies. In 
2018, t he East African Legislative Assembly passed the East African Monetary Institute Bill, 
establishing the EAC Monetary Institute as a transitional institution in charge of carrying out the 
preparatory work for the monetary union.  
1.7.  Adopted in March 2016, EAC V ision 2050  provides a long-term perspective on transfo rming the 
region into an upper middle -income economy.5 The 5th EAC Development Strategy is the translation 
of this Vision in the medium term (2016 -2021). It targets the movement to the lower -middle -income 
group by the economies by 2021 through, inter alia , the consolidation the customs union; the 
enhancement of the f ree movement of factors of production; industrial development; and 
improvements in agricultural productivity, value addition, and trade.  
1.2  Recent Economic Developments  
1.8.  EAC countries' economic performance was relatively strong during the review period 
(Table  1.1). With a few exceptions, all countries consistently recorded annual real GDP growth rates 
exceeding 5% over the 201 1-2017 period , supported by public investment in infrastructure, 
favourable commodity and oil prices, and driven largely by the services sector6 (see country 
                                                
3 Treaty  for the Establishment of the East African Community.  
4 EAC (2011), 4th EAC Development Strate gy (2011/12 –2015/16), Deepening and Accelerating 
Integration . Arusha, August 2011. Viewed at: https://www.eac.int/documents/category/strategy . 
5 EAC (2016), EAC Vision 2050 – Regional Vision for Socio -Economic Transformation and Development.  
Arusha, Tanzania, February 2016. Viewed at: 
https://www.eac.int/index.php?option=com_documentmananger&task=download.document&file=bWFpbl9kb2
N1bWVudHNfcGRmX0NYYkVheGJrY2Fu SnNIQkVNdU93VkRNRUFDIFZpc2lvbnMgMjA1MA==&counter=43 .  
6 EAC (2018) , Draft EAC Trade and Investment Report 2016 – Linking EAC to the Global Economy.  EAC 
Secretariat, Arusha.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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annexes).  Economic growth in Burundi remained subdued from 2015 -2017, with some signs of 
steady recovery.  
1.9.  Headline i nflation  rates were relatively high in 2011 and 2012, and reached double digits in all 
EAC countries, reflecting mainly  weather -related fo od price hikes and the persistence of the 2011 
global food and fuel price shocks. A coordinated tightening of the monetary policy by central banks,  
together with improved food supply and stable international oil prices , contributed to br inging 
inflation rates below the 8% ceiling. Inflation rates remained subdued in subsequent years, except 
for 2017 in Burundi .  
1.10.   Fiscal deficits (including grants) were generally above the 3% -of-GDP ceiling adopted in the 
macroeconomic convergence framework . These deficits were partly due to weak domestic resource 
mobilization (in Burundi and Kenya) and high public investment spending. Domestic saving s levels 
were generally low and remained relatively stabl e, resulting in increasing current account deficits.  
In response, countries resorted to a mix of domestic and external borrowing, leading to rising levels 
of external debt.  
1.11.   Price stability is the primary objective of monetary policies in the EAC countries. To achieve 
it, Kenya and Uganda have put in place inflation targeting frameworks, while the other economies 
are targeting  monetary aggregates. However, all central banks have agreed to converge toward s a 
price-based monetary policy framework  by December 2018. Other harmonization efforts include the  
Foreca sting and Policy Analysis System (FPAS) , which is being developed  to facilitate the adoption 
of a forward -looking interest rate -based monetary policy framework.  Initiatives are also in place to 
harmoniz e the reserve requirement regimes.  
1.12.   The EAC countries currently maintain  different national currencies with different e xchange 
rate regimes , but aspire to establish a single currency by 2024 . According to the International 
Monetary Fund 's (IMF) classification, the de jure  exchange rate regime s of all EAC WTO Members 
are classified as floating.7 The widening of current account deficits, together with inflationary 
pressures arising from weather -related shocks, caused significant exchange rate depreciations in 
2015 and 2016. Central banks actively intervened in t he foreign exchange market to stabilize 
currencies, leading the IMF to move  the de facto  exchange rate regimes of most of the countries to 
a less flexible category. Since  end-2016, the de facto  exchange rate regime has been  classified, 
retroactively, as fl oating in Uganda, stabilized in Kenya and Tanzania (from floating), and crawl -like 
in Burundi and Rwanda (from stabilized or managed).  
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.13.   After several years of steady increases in the first years of the launch of the customs union, 
intra-EAC trade in goods has stabilized at around 10% of the total merchandise trade of the 
Community over the review period (Table A1.1). On average, EAC countries source 6% of their total 
imports from the region, and supply 20% of their total exports to the region. The major factors 
behind this low level of intra -EAC trade include informal (unrecorded) cross -border trade; and 
natural and non -tariff barriers to trade, mainly poor infrastructu re, although this is being addressed 
by most countries; sanitary and phytosanitary measures; technical barriers to trade; similarities in 
the production of a limited number of identical manufactured goods (e.g. cement, petroleum, 
textiles, sugar, confectio nery, beer, salt, fats and oils, iron and steel products, paper, plastics and 
pharmaceuticals)  for which the production capacities have recently increased in most countries; and 
the use of different currencies.  
1.14.   The lack of statistical data on cross-border  trade (largely informal within the EAC ), prolonged 
droughts in the region during the review period, and  duty and tax exemption s (granted on an MFN 
basis) on inputs , have also played their part .8 
                                                
7 IMF Annual Report on Exchange Arrangements and Exchange Restrictions  (AREAER) onl ine. Viewed at:  
https://www.elibrary -areaer.imf.org/Pages/Home.aspx . 
8 EAC (2018) , Draft EAC Trade and Investment Report 2016 – Linking EAC to the Global Economy . EAC 
Secretariat, Arusha.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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1.15.   The ratio of EAC countries' trade  (including intra -EAC trade)  in goods and services to GDP 
remains moderate, at about 50%. It  declined noticeably from 57 .2% in 2011 to 37.5% in 201 7 
(Table  1.1). Despite significant disparities between EAC countries in their individual trade 
performances ( Table A1.1), the ratio declined for all of them, except Rwanda. Merchandise trade 
remains important to the Community, accounting for over 70% of its total trade (in goods and 
services) throughout the review period.9 
1.16.   Extra -EAC trade in goods continues to di splay a deficit, with exports generally covering less 
than 50% of imports (Table 1.2). The deficit recently narrowed from USD 25.3 billion in 2015 to 
USD 19.2 billion in 201 7 as a result of falls in global prices of crude oil. Exports are dominated by 
comm odities for which EAC countries are price takers: tea; coffee; cut f lowers; and non -monetary 
gold. Imports are dominated by manufactured products, including  fuels, chemicals (e.g. 
medicaments, fertilizers), and machinery and transport equipment  (Tables A1. 2 and A1.3).  
1.17.   In 2017, Kenya and Uganda are the major player s in intra -EAC trade. Major traded goods 
across the region include agricultural products (e.g. sugar, maize, and vegetable and animal oils) 
and manufactured products (e.g. cement, steel and steel products, plastics and pharmaceuticals) .10 
1.18.   The relative importance of extra-EAC trade partners has not significantly changed since 2011. 
The EAC has continually sourced its imports from Asian countries ( almost 50%  in 2017 up from 
40.5% in 2011), mainly Chin a and India. The European Union and the United Arab Emirates are 
other major suppliers. The European Union remains the EAC's main export market, but its share has 
declined in favour of countries such as India (Table 1.2). Moreover, despite the downward tre nd in 
their share of exports from the EAC, COMESA and SADC countries (excluding EAC member States) 
remain important destinations, accounting for about 21% of the total in 2017(Table 1.2).  
Table 1.2 Extra -EAC trade by major trading partners, 2011 -17a 
(USD billion and %)   
2011  2012  2013  2014  2015  2016  2017  
Total imports (USD billion)  32.0 34.3 35.3 37.1 37.2 27.7 30.7 
 (% of total extra -EAC imports)  
China  10.6 12.0 13.1 16.2 17.3 22.8 21.3 
India 13.5 13.6 20.2 19.3 14.3 16.5 11.9 
EU-28 15.5 14.5 13.6 13.1 11.9 14.5 12.9 
United Arab Emirates  12.5 9.9 8.8 7.9 6.5 7.7 8.9 
Japan  4.8 4.9 5.3 5.2 4.6 5.5 5.3 
South Africa  6.7 6.0 5.3 4.5 4.0 4.5 6.4 
Saudi Arabia  3.9 4.2 2.5 3.0 18.4 4.3 6.5 
United States  3.3 3.5 3.1 6.5 4.7 3.1 2.9 
Indonesia  3.1 3.3 2.4 2.3 2.2 2.6 3.0 
Malaysia  0.8 0.7 0.8 1.6 0.9 1.6 1.3 
Other  25.4 27.5 24.9 20.2 15.2 17.0 19.6 
Memo:         
Asia  40.5 40.9 49.7 51.3 45.1 55.0 48.9 
Africa  10.3 9.2 8.3 7.1 6.4 8.1 10.4 
COMESA and SADCa 9.7 8.9 7.9 6.9 6.3 7.7 10.1 
Total exports (USD billion)b 10.8 11.9 10.9 12.9 11.9 11.3 11.5 
 (% of total extra -EAC exports)  
EU-28 23.5 22.0 20.6 20.0 20.3 20.7 20.5 
Switzerland  11.7 9.0 6.8 2.4 2.7 8.2 3.4 
Dem. Rep. of the Congo  5.4 6.1 8.3 7.2 7.3 8.0 7.4 
India 3.1 4.9 8.0 10.8 10.6 7.7 9.5 
United Arab Emirates  4.7 6.1 5.4 3.6 5.0 7.6 9.5 
South Africa  8.4 8.7 7.5 12.1 6.1 6.4 6.5 
United States  3.6 3.6 4.2 5.1 4.7 4.9 5.5 
China  7.1 5.3 3.9 6.6 6.1 4.3 2.4 
Pakistan  2.3 2.7 2.7 2.1 3.2 3.7 5.8 
South Sudan  0.0 0.2 3.4 4.0 3.7 3.5 4.0 
Other  30.1 31.5 29.2 26.2 30.1 24.9 25.5 
                                                
9 WTO, World Trade Statistical Review, 201 7. Viewed at: 
https://www.wto.org/english/res_e/statis_e/wts2017_e/wts17_toc_e.htm .  
10 WTO Secretariat's calculations based on data provided by the authorities and the UNSD Comtrade 
database.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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2011  2012  2013  2014  2015  2016  2017  
Memo:         
Asia  21.4 21.3 23.4 27.2 28.1 23.9 26.8 
Africa  29.9 30.3 33.1 35.5 29.8 28.4 28.4 
COMESA and SADCa 27.1 27.1 25.9 27.0 22.4 22.2 21.4 
a Excluding EAC member States.  
b Including re -exports.  
Source:  WTO Secretariat's calculations, based on data provided by the authorities; and UNSD Comtrade.  
1.19.   The EAC is a net exporter of services, and its surplus  has continued to grow : in 201 7, it had 
a services trade surplus of USD 2.8  billion, with exports of USD 11 .2 billion and imports of 
USD 8.4 billion  (Table 1.3), mainly driven by Tanzania  and Kenya,  while the other countries 
registered a deficit  (see annexes 1 -5). The EAC's services trade, both exports and imports, was 
conce ntrated in transport (28% and 42%, respectively), travel (41% and 19 %, respectively), and 
other business services (5% and 16 %, respectively) in 2016; this did not change significantly during 
the review period.  
Table 1.3 EAC trade in services, 2011 -17a 
(USD billion and %)   
2011  2012  2013  2014  2015  2016  2017  
EAC imports (USD billion)  7.6 8.0 8.0 9.6 9.7 8.2 8.4 
 (% of total EAC imports)  
Burundi  2.8 2.7 3.0 2.8 2.4 2.6 2.7 
Kenya  28.0 30.0 27.8 34.8 34.3 33.1 36.8 
Rwanda  8.1 6.5 7.4 7.0 11.3 13.2 12.2 
Tanzania  28.9 29.6 31.3 27.7 27.6 27.1 24.0 
Uganda 32.2 31.2 30.5 27.8 24.6 24.0 24.3 
By main categories  
Transport  49.1 50.7 50.1 45.7 43.3 41.4 41.5 
Travel  21.2 21.7 20.0 16.8 19.4 19.0 19.1 
Construction services  3.6 3.8 6.3 5.4 5.7 7.2 6.0 
Insurance and pension services  3.8 3.7 3.4 3.4 3.3 2.7 2.3 
Other business services  12.9 12.3 15.2 17.2 16.2 17.2 15.8 
EAC exports (USD billion)  8.8 10.5 11.1 11.3 11.0 10.6 11.2 
 (% of total EAC exports)  
Burundi  1.3 0.9 1.1 0.6 0.5 0.7 0.6 
Kenya  46.8 47.5 46.1 44.6 42.2 39.3 41.5 
Rwanda  5.8 4.9 5.2 5.3 7.4 7.9 8.9 
Tanzania  26.0 26.5 28.7 30.1 31.1 34.1 34.4 
Uganda  20.1 20.2 18.9 19.4 18.7 18.0 14.6 
By main categories  
Transport  28.3 28.8 30.4 29.1 29.2 26.9 27.9 
Travel  39.5 38.7 35.9 36.3 36.7 42.0 40.7 
Financial services  2.2 2.5 2.6 2.1 2.4 3.2 4.2 
Telecommunication, computer, 
and information services  6.2 5.8 6.3 7.9 6.3 5.1 4.9 
Other business services  4.8 5.9 7.1 8.1 6.4 5.5 5.5 
a Based on Balance of Payments, covering both intra -and extra trade.  
Source:  IMF online database. Viewed at: http://data.imf.org , and information provided by the authorities.  
1.3.2   Trends and patterns in foreign direct investment (FDI)  
1.20.   Foreign direct investment (FDI) remains an important source of external financing in EAC 
countries. Between 2011 and 2016, FDI inflows into the region increased more than twofold, to 
USD 7.5 billion ( Table 1.4 ). A peak of USD 8.5 billion w as recorded in 2014, reflecting Kenya's 
Standard Gauge Railway investment project (Annex 2, Section 4). Investment inflows are largely 
channelled to the manufacturing and construction sectors. Tanzania is by far the first destination of 
FDI inflows within the EAC, reflecting its booming gas industry; it accounted for 64.8% of FDI inflows 
in 2014. China is the main source of FDI flows into the EAC.  
1.21.   In contrast to global FDI inflows to the region, cross -border investments in the EAC were 
relatively stagnant until 2016, before a significant decrease in 2017 ( Table 1.4 ). Kenya is the major 
source of intra -EAC investment, accounting for 75.3% of all cross -border investments in 2014. In WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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2016, Uganda and Burundi emerged as major players, contributing 34% and 14.5% , respectively, 
to cross -border investments. There is a strong temporal variation in the destination of these 
investments; the largest recipient of intra -EAC investment flows was Tanzania in 2014, Kenya in 
2015, Rwanda and Uganda in 2016 and 2017.  
Table 1.4 Total FDI inflows and intra -EAC FDI, 2011 -17 
 
2011  2012  2013  2014  2015  2016  2017  
Global FDI inflows  
Total (US D million)  2,567.0  3,425.0  3,650.0  8,494.4  7,221.2  7,528.3  6,164.2  
Share, by destination (%)        
Burundi  0.1 0.0 0.2 0.0 0.0 0.2 1.1 
Kenya  13.1 7.6 14.1 10.3 30.3 24.2 11.6 
Rwanda  4.1 4.7 3.0 4.2 14.8 8.0 18.6 
Tanzania  47.9 52.6 51.3 64.8 47.8 47.4 54.8 
Uganda  34.8 35.2 31.4 20.7 7.2 20.3 14.8 
Intra-EAC FDI flows  
Total (US D million)  234.9  217.2  236.6  207.7  237.8  254.1  153.3  
Share, by origin (%)  
Burundi  0.6 1.6 0.2 4.9 0.1 14.5 .. 
Kenya  75 73.9 57.8 75.3 30.6 46.2 48.0 
Rwanda  5 2.8 3.3 0.7 52.2 1.3 2.7 
Tanzania  19.4 13.3 37.9 4.5 8.3 3.9 19.1 
Uganda  0 8.4 0.8 14.6 8.8 34.0 32.9 
Share,  by destination (%)  
Burundi  13.2 1.9 13.1 0.7 0 1 .. 
Kenya  0.3 14.5 28.1 0.4 55.6 2.3 12.8 
Rwanda  23.4 3.7 5.3 12.6 12.8 48.2 33.8 
Tanzania  21.4 46.2 24.9 50.1 23.3 2.2 17.1 
Uganda  41.8 33.6 28.6 36.2 8.3 46.3 36.2 
.. Not available.  
Source:  EAC (2018) , Draft EAC Trade and Investment Report 2016 – Linking EAC to the Global Economy. 
EAC Secretariat, Arusha.  
1.22.   According to the authorities, the operationalization of regional arrangements, such as the 
Continental Free Trade Area and the EAC -COMESA -SADC  Tripartite, could expand the prospects for 
investment inflows in the region.  
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2  TRADE AND INVESTMENT  REGIMES  
2.1  General Framework  
2.1.  The EAC is comprised of Burundi, Kenya, Rwanda, Tanzania, Uganda, and of South Sudan since 
April 2016.1 The Treaty for the Establishment of the East African Community  (EAC Treaty) entered 
into force in July 20002, and its last amendment took place in 2007. The broad objective of the 
Community is to develop policies and programmes aim ed at widening and deepe ning cooperation 
among its member  countries in the following areas: political, economic, social , cultural, research 
and technology, defence, security , and legal and judicial affairs . This is to be achieved through the 
progressive establishment of a customs  union, a common market, a monetary union, and a political 
federation.  
2.2.  The executive arm of the EAC comprises: the Summit (of Heads of States or governments), in 
charge of setting the broad vision for the Community; the Council of Ministers, acting as the decision -
making organ; the Coordinating Committee (composed of permanent secretaries); and sectoral 
committees, which are technical in nature and in charge of sectoral matters. Sectoral councils are 
set up by the Council of Ministers. They oversee the proper implementation of the EAC sectoral 
programmes.  Trade -related matters are under the purview of the Sectoral Council on Trade, 
Industry, Finance and Investment (SCTIFI). The SCTIFI is responsible for making decisions and 
recommendations to the Council of Ministers on trade policy issues, such as  customs tariff, trade 
remedies,  duty remissions, elimination of non-tariff barriers ( NTBs), export promo tion, competition, 
SME development, trade in services, trade relations with external parties, industrial development , 
and investment promotion . Based in Arusha (Tanzania), the EAC Secretariat ensures the 
implementation of regulations and directives adopted  by the Council of Ministers. The EAC also relies 
on a number of specialized institutions to carry out its mandate.3  
2.3.  The East African Court of Justice (EACJ) is the judicial arm of the Community. With its ten 
judges, it has jurisdiction over the interpret ation and application of the EAC Treaty.  Since its 
establishment in 2001, the Court has been  operating on an ad hoc  basis at its temporary 
headquarters  in Arusha , and the judges convene only as needed. According to the EAC Secretariat, 
a final decision is to be made by the Council of Ministers for permanent services of the EACJ . As at 
end-2017, about 175 cases were brought before the Court4; none was trade -related, as the Treaty 
has no direct trade -related  provisions. A  protocol on the extended jurisdiction  of the Court has been 
signed by the Summit , to enable the Court to handle trade -related  issues . However, it is still 
undergoing the ratification process . 
2.4.  The East African Legislative Assembly (EALA), with nine elected members per country, is the 
legislative body of the Community. Its core mandate is to legislate on all matters relating to the 
operationalization of the Treaty. The legal framework of the EAC consists of the Treaty and its 
protocols, and several pieces  of legislation (Table 2.1). Bills can be introduced in the Assembly by a 
member of the EALA, an EALA committee, or the Council of Ministers.  After a bill is passed into law 
by the EALA, it must b e signed by EAC Heads of States  before it is gazetted.  If a Head of State 
refuses to sign; the bill shall be referred to the Assembly, with a request that the bill, or a particular 
provision thereof , be reconsidered. However, if a Head of State with holds s ignature to a re -submitted 
bill, the b ill shall lapse. Members of the 4th EALA were sworn in , in December 2017 , for a five -year 
(renewable) term.  
                                                
1 Somalia applied to join the Community in 2012, and reapplied in 2017.  
2 The EAC Treaty, available at: https://www.eac.int/documents/category/key -documents . 
3 These are: the East African Court of Justice  (EACJ); the East African Development Bank (EADB); the 
Lake Victoria Basin Commission (LVBC); the Lake Victoria Fisheries Organizatio n (LVFO); the Inter -University 
Council for East Africa (IUCEA); the Civil Aviation Safety and Security Oversight Agency (CASSOA); the East 
African Health Research Commission (EAHRC);  the East African Kiswahili Commission (EAKC); and the East 
African Scienc e and Technology Commission (EASTECO).  
4 The EACJ. Information viewed online at: http://eacj.org/ .  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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Table 2.1 The legal framework of the EAC  
Act Status  
Treaty and  Protocols  
  Treaty for the Establishment of the EAC  Signed in 1999, in force since 2000  
  Protocol on the Establishment of the EAC Customs Union  Signed in November 2004 , in force 
since January 2005  
  Protocol on the Establishment of the EAC Common Market  Signed in November 2009, in force 
since July 2010 
  Protocol for the Establishment of the EAC Monetary Union  Signed in November 2013, in force  
since 2014  
Legislation  
  The EAC Customs Management Act, 2004  Last amendment in 2012 , in force  
  The EAC Elimination of Non -Tariff Barriers Act, 2017  In force  
  The EAC One Stop Border Posts Act, 2016  In force  
  The EAC Vehicle Load Control Act, 2013  In force  
  The EAC Civil Aviation Safety and Security Oversight Agency Act,  
2009 In force  
  The EAC Co mpetition Act, 2006  Last amendment in 2009, in force 
since December 2014  
  The EAC Trade Negotiations Act , 2008 In force (in the process of being 
repealed)  
  The EAC Standardization Quality Assurance Metrology and 
Testing Act, 2006  In force  
Source:  Information provided by the EAC Secretariat.  
2.5.  In matters related to trade with third parties, EAC countries negotiate in principle as a bloc. 
Under the Customs Union Protocol, a member may separately negotiate bilateral trade agreements, 
subject to notification to the other members. Such agreements should not conflict with the provisions 
of the Customs Protocol. In principle, pursuant to the Trade Negotiations Act, 2008, negotiations are 
led by a Join t Trade Negotiations Commission . However, accordin g to the authorities, the Act has 
never been operationalized. In 2014, the EAC Trade Negotiations (Repeal) Bill, 2014 was drafted by 
the Sectoral Council on Legal and Judicial Affairs , and submitted to the EALA for deliberations. In 
2018, the Repeal Bill w as referred to the Committee on Communication, Trade and Investment.  
2.6.  The 2016 EAC Trade Negotiations Framework (TNF) is the main reference for trade  negotiations 
with third parties.5 Its goal is to ensure that the Community's interests are properly conside red in 
trade negotiations. Under the TNF, EAC's priority areas in trade negotiations include: the elimination 
of trade barriers related to customs, SPS and TBT issues; rules of origins that promote 
industrialization and value addition within the EAC; and t he pursuit of tariff liberalization while 
ensuring the protection of "sensitive" sectors, infant industries and SMEs.  
2.7.  The 2016 EAC Model Regional Investment Treaty is the main reference for investment 
negotiations with third parties. The aim of the Treaty is to serve as: a template for investment 
negotiations of the EAC and/or individual EAC member  States with third cou ntries or a bloc of 
countries; and  an instrument to guide the EAC 's negotiating position.  
2.8.  Private sector interests and concerns are conveyed  to the EAC's policy making sphere mainly 
through th e East African Business Council  (EABC). E stablished in 1997 , the EABC is composed of 
about 170 associations, government agencies and corporations from the Community. It has observer 
status at the EAC , and can participate in activities and meeting s at the EAC Secretariat.   
2.9.  EAC institutions are  financed mainly through annual contributions from member countries and 
support from development partners . 
2.2  The EAC in practice  
2.10.   The ultimate goal  of the EAC is the establishment of a political federation among its member 
countries . A number of milestones have been achieved since its establishment in 2000. The customs 
union was launched in 2005, and a common external tariff (CET) was implemented in 2010 (WTO, 
2012).  EAC countries have been consolidating their free trade area through  several reform steps, 
                                                
5 EAC (2016), The East African Community Trade Negotiations Framework.  February 2016.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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including the interconnectivity of their customs systems, the adoption of an Authori zed Economic 
Operator (AEO) system, and the establishment of one-stop border posts ( Section 3.1.1).  
2.11.   To dismantle NTBs (the major impediments to intra -EAC trade), a mechanism was p ut in place 
in 2007 (Box 2.1). As at May 2018, about 127 NTBs (out of the 133 identified) ha d been eliminated 
through the mechanism. Repor ted NTBs are mainly: customs and administrative documentation and 
procedures; inspection requirements; police road blocks/check points; transit procedures; and 
standards. It was reported that about 30% of the NTBs were dismantled within three months from 
the date of their notification, while another 30% were dismantled after more than a year.  
Box 2.1 The EAC mechanism for the elimination of NTBs  
Under the EAC Customs Union Protocol, member countries agreed to r emove all existing NTBs to intra -EAC 
trade , and to refrain from imposing new ones . In order to facilitate the removal of NTBs within the EAC, an 
NTB elimination mechanism was adopted by the Council of Ministers in 2009. At the institutional level, the 
mech anism comprises the EAC NTB Monitoring Committee  and National Monitoring Committees (NMCs). NMCs 
meet quarterly to discuss progress in the elimination of barriers.  
Companies that face trade barriers in their operations can report them directly to their NMC  through an online 
or SMS -based platform. If the complaint is found to concern  a valid NTB, the NMC can pursue its elimination 
through one of the following three channels6:  
a. Mutual agreement: the concerned NMCs can hold discussions and agree on a strategy to eliminate 
the reported barrier. The strategy typically includes an assessment of the measure and a timeline 
for its elimination;  
b. The EAC Time -Bound Programme for the Elimination of Identified/Reported NTBs: upon a written 
notification from a reporting c ountry, the NMC of the responsible country investigates the impact 
of the barrier , and identifies the required timeframe and potential challenges to its elimination;  
c. Referral to the Council of Ministers: if NMCs fail to reach an agreement, the case can be  referred 
to the Council of Ministers. The Council shall consider the matter and issue a directive, decision or 
recommendation with regard to the elimination of the NTB in question , or refer the matter to the 
EAC Committee on Trade Remedies. Any person agg rieved by a directive, decision or 
recommendation of the Council or a decision of the Committee on Trade Remedies may refer such 
matter to the EACJ. 
The NTB elimination mechanism was reinforced with the enactment of the EAC Elimination of Non -Tariff 
Barrie rs Act in 2017. The Act contains a list of measures identified as NTBs, but also provides for the Council 
of Ministers to add any activity identified as such.  
Under the COMESA -EAC-SADC Tripartite FTA, a regional platform for the elimination of NTBs was es tablished 
in 2008.7 
2.12.   The Protocol on the Establishment of the EAC Common Market (CM Protocol) was signed in 
2009 and became operational in July 2010. The main objective is to establish a single market across 
member countries. The CM Protocol provides for five freedoms (free movement of people, goods, 
services, labour, and capital), and two rights (rights of residence and establishment). It contains 
detailed provisions on the freedoms and rights, and on the removal of restrictions on the cross -
border provis ion of services.  
2.13.   In November 2013, EAC members took a step further with the signing of the Protocol on the 
Establishment of the EAC Monetary Union (MU Protocol), which  entered into force in 2014. The 
Protocol lays out the framework for the harmonization of  monetary and fiscal policies, with a view 
to converging toward a single currency within ten years.  
2.3  Participation in the WTO  
2.14.   With the exception of South Sudan, all EAC countries are original WTO Members. South Sudan 
has the status of Observer. The EAC Treaty was notified to the WTO in October 2000 under the 
Enabling Clause.  All EAC WTO Members except Kenya have least developed country (LDC) status, 
and are therefore eligible for the WTO's Enhanced Integrated Framework (EIF) initiative. None of 
the EAC memb ers is either a signator y or an observer to any of the WTO plurilateral agreements. 
All EAC WTO Members except Burundi have accepted the 2005 Protocol Amending the TRIPS 
                                                
6 The East African Community Eliminat ion of Non -Tariff Barriers Act, 2017.  
7 The regional platform for reporting NTBs is available at: http://www.tradebarriers.org/ .  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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Agreement. They accord at least the most -favoured -nation ( MFN) treatment to all their trading 
partners.  
2.15.   Under the WTO Trade Facilitation Agreement (TFA), all EAC WTO Members have notified their 
Category A commitments. Kenya, Rwanda, and Uganda have deposited their instruments of 
acceptance of the Agreement. In 2015, the EAC countries  establ ished a Regional Trade Facilitation 
Sub-Committee, which reports to the Sectoral Committee on Trade and , subsequently , the SCTIFI.  
Its main mandate is to coordinate the implementation of the WTO TFA and other trade facilitation 
measures decided at the regi onal level, including ensuring the convergence of national 
implementation plans, and to mobilize resources. A regional TFA implementation plan was adopted 
in 2016.  
2.16.   At the WTO, EAC countries participate in, and align their positions with, those of the follo wing 
negotiating groups: African, Caribbean and Pacific (ACP) countries; the African Group; the G -90; 
and "W52" sponsors. All of them except Kenya are members of the LDC Group. Kenya, Tanzania and 
Uganda are members of the G -33 (also called the "Friends of  Special Products in Agriculture"). In 
addition, Kenya is a member of the "Paragraph 6 countries", and Tanzania, a member of the G -20.8 
None of the EAC countries has been involved directly  in the WTO dispute settlement mechanism , 
either as a complainant or  a defendant. However, Kenya and Tanzania have participated, as third 
parties, in disputes brought separately by Australia, Brazil, and Thailand, on " European Communities 
- Export Subsidies on Sugar".9 
2.17.   EAC WTO Members' trade policies were jointly reviewed under the Trade Policies Review 
Mechanism in 2005 and 2012. They have individually established Permanent Missions to the WTO.  
2.18.   EAC countries also face challenges to the development of their trade in are as such as trade 
facilitation, trade policy and regulations, corridors and transit procedures, export development and 
promotion, transport infrastructure development, energy, access to credit, and skills development.  
To meet these challenges, a regional Ai d for Trade (AfT) strategy was adopted in 2017.10 The main 
expected outcome from the strategy is the expansion and diversification of trade in value -added 
products and services, and more investment inflows. In practice, AfT flows in the region have been 
increasing, and are accounting for a growing share of its official development assistance. In 2015, 
EAC countries received a total of about EUR 810 million in AfT, compared to EUR 610 million in 
2012.11 Tanzania and Kenya are the two largest recipients. The su pport is mostly concentrated in 
trade -related infrastructure, trade facilitation, and capacity building.  
2.19.   EAC countries continue to fulfil their notification obligations at the WTO, although to various 
degrees (see Annexes). Participation in trade -related technical assistance activities fluctuated , 
between 22 in 2011 to only 3 in 2016.  
2.4  Trade Agreements and Arrangements  
2.4.1   The COMESA -EAC-SADC Tripartite Forum  
2.20.   EAC countries are engaged in the establishment of a tripartite free trade area (FTA) involving 
members of the Common Market for Eastern and Southern Africa (COMESA) and the South African 
Development Community (SADC) (COMESA -EAC-SADC Tripartite FTA). The FTA covers 26 African 
countries that account for about 57% of the continent's population and 58 % of its G DP. It is part of 
an overarching project aimed at establishing a continental FTA, and ultimately the African Economic 
Community.12  
                                                
8 The G -20 negotiation group is a c oalition of developing countries pressing for  ambitious reforms of 
agriculture in developed countries with some flexibility for developing countries . 
9 Documents WT/DS265/R, WT/DS266/R, and WT/DS283/R, 15 October 2004.  
10 EAC (2017), EAC Aid for Trade Strategy 2017 -2021.  
11 European Commission (2017),  Aid for Trade Report 2017. Review of progress by the EU and its 
Member States.  Viewed at: https://ec.europa.eu/europeaid/sites/devco/files/report -aid-for-traid-2017-final-
with-stories_en_0.pdf . 
12 All EAC countries have signed and ratified the Treaty Establishing the African Economic Community  
(Abuja Treaty), adopted in June 1991.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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2.21.   Negotiations for the Tripartite FTA were launched in 2011, and are to be conducted in two 
phases.  A first phase of the negoti ations on trade in goods was concluded with the signing and the 
official launch of the Tripartite FTA Trade in Goods in June 2015.13 The Agreement provid es for the 
liberalization of all  tariff lines, with some exceptions. Between 60% and 80% of tariff lines , 
depending on the country, are to be liberalized upon the entry into force of the Agreement. The 
remaining portion is to be liberalized over a period of five to eight years. Although the Agreement 
has been signed, annex es relating to tariff schedules and rules of origin are still under negotiation. 
The Agreement will enter into force after the completion of the negotiations on these annexes , and 
the ratification by at least 14 parties.  Negotiations on  trade in services and other trade -related areas 
(compet ition policy, intellectual property rights) are expected to start after the launch of the FTA on 
trade in goods.  
2.22.   NTBs are seen as the main impediment to trade within the region, and e ach of the three 
regional blocs has in place procedures for their reporti ng, monitoring and elimination.14 The 
Agreement provides for the harmonization of these procedures under a single mechanism, i.e. the 
Tripartite NTBs Reporting, Resolving and Monitoring Mechanism.15 Through a web -based platform, 
stakeholders from the three communities can report and monitor the resolution of barriers 
encountered in the conduct of their business. As of September 2017, there were 79 active 
complaints, of which 42 were by stakeholders f rom EAC countries against measures taken by other 
EAC members.  
2.23.   The full implementation of the Tripartite FTA is projected to increase  intra-regional trade.16 
Manufacturing, including food processing, is the sector that would benefit the most from the FTA.  
2.4.2   Relations with the European Union  
2.24.   The European Union is a major trading partner for EAC countries (Section 1.3). Exports to the 
European Union are dominated by coffee, cut flowers, tea, tobacco, fish and vegetables. Imports are 
composed mainly of machiner y and mechanical appliances, equipment and parts, vehicles and 
pharmaceutical products. In addition, a  large share of FDI inflows to the EAC originates in the 
European Union.  
2.25.   Negotiations for an Economic Partnership Agreement (EPA) between the E uropean Union and 
the EAC started in 2007 and were concluded in October 2014. Under the EPA, EAC exports are 
granted duty -free and quota -free access to the EU market. EAC countries are committed to liberalize 
about 82.6% (in value) of their imports from the E uropean  Union upon entry into force of the 
Agreement, and to gradually liberalize the remainder over a period of 15 years. The Agreement 
contains safeguarding clauses. It also lays the ground work for further talks on trade in services, 
competition, intellectual p roperty rights, and public procurement. As of December 2017, the 
Agreement was ratified by Kenya and signed by Rwanda.17 In the meantime, all EAC countries except 
Kenya (see annex on Kenya)  benefit from duty -free and quota -free access to the EU market under  
the Everything But Arms  (EBA) initiative available to LDCs.  
2.4.3   Relations with the United States  
Kenya, Rwanda, Tanzania, and Uganda are eligible for trade preferences under the U.S. 
African Growth and Opportunity Ac t (AGOA ), duty-free and quota -free access for a range of products, 
including selected agricultural products. In 2015, the United States suspended Burundi's eligibility 
for the AGOA. Kenya, Tanzania, and Uganda are also eligible for preferences  under the "wearing 
apparel" provisions of the AGOA .18 
                                                
13 Sharm El She ikh Declaration Launching the COMESA -EAC-SADC Tripartite Free Trade Area.  
14 The elimination of NTBs is provided for by Article 6 of the SADC Protocol, Article 49 of the COMESA 
Treaty, and Article 75 of the EAC Treaty.  
15 The mechanism is available at: http://www.tradebarriers.org .  
16 Mold, A. and Mukwaya, R. (2015), The Effects of the Tripartite Free Trade Area: Towards a New 
Economic Geography in Southern, Eastern and Northern Africa?  CREDIT Research Paper No. 15/04. Viewed at: 
https://www.nottingham.ac.uk/credit/documents/papers/2015/15 -04.pdf  [November 2018].  
17 Online information. Viewed at: http://www.europarl.europa.eu/legislative -train/theme -a-balanced -
and-progressive -trade-policy -to-harness -globalisation/file -epa-with-east-africa .  
18 To export apparel (and certain textile items) to the United States under the AGOA, countries must , 
inter alia , implement a "visa system" that ensures compliance with the required rules of origin.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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2.27.   Cooperation on investment matters has led to the signing of the Trade and Investment 
Framework Agreement (TIFA) in 2008 . The Agreement aims to strengthen bilateral trade and 
investment relationship s, and improv e the business climate.  A joint C ouncil was established in 2010 
to operationalize trade and investment relations under the TIFA. It is responsible for, inter alia, 
monitoring trade and investment relations between the EAC and the U nited States; tackling all the 
unnecessa ry impediments to trade and investment between them; and  identifying trade and 
investment opportunities for both parties.  
2.28.   Cooperation in the areas of t rade facilitation, SPS, and TBT is governed by an agreement 
signed in February 2015.19 The agreement provi des for cooperation and capacity building on customs 
issues, including the implementation of the WTO TFA; food safety, and plant and animal health; and 
technical regulations, standards, testing and certification.  
2.29.   In practice, Kenya is the main trader under  the AGOA  among the EAC countries . Its exports 
under the AGOA were worth US D 394 million in 2016, compared with US D 43 million for the rest of 
EAC countries.  Kenya, Uganda and Tanzania remain eligible for all AGOA benefits. With the exception 
of apparel pr oducts, Rwanda remains eligible for duty -free benefits under  the AGOA.   
2.4.4   Other agreements and arrangements  
2.30.   All EAC countries  are members of the African Union (AU).  Negotiations for the African 
Continental Free Trade Area (AfCFTA) were launched in June 2015, and a consolidated text  (the 
Protocol on Trade in Goods; the Protocol on Trade in Services ; the Protocol on Rules ; and the 
Procedures on the Settlement of Disputes ) was adopted  in March 2018. As at August 2018 , 
49 member States had signed the AfCFTA, and 6, including Kenya and Rwanda,  had ratified  it. 
2.31.   EAC countries are , individually , members of other arrangements , such as the 
Inter-Governmental Authority on Development (IGAD), COMESA, the SADC, the Indian Ocean 
Rim-Association fo r Regional Cooperation (IOR -ARC), and the Economic Communi ty of Great Lakes 
Countries (CEPGL) (see Annexes  1-5). 
2.32.   In general, EAC countries are eligible for non-reciprocal preferential treatment by many 
trading partners  under the ir Generalized System of Pre ferences  (GSP) regimes (see country  
annexes) . 
2.5  Investment Regime  
2.33.   There is no investment agreement between EAC members, although their objective is to 
promote the Community as a single investment area. Under the EAC Treaty, members are to 
"harmonise and rati onalise investment incentives, including those relating to taxation of industries". 
The CM Protocol provides for freedom of movement of goods, labour, services, and capital. Its 
provisions on investment call for the protection and harmonization of tax regu lations. According to 
the authorities, a Policy on EAC Domestic Tax Harmonization was developed and endorsed by the 
finance ministers during the 8th Meeting of the Sectoral Council on Finance and Economic Affairs 
held in May 2018. Detailed harmonization proposals for VAT and excise taxes rates were being 
developed for consideration by the finance ministers in November 2018.  
2.34.   The 2006 EAC Model Investment Code remains the reference guide for the design of national 
investment policies and laws. However, i t does not have any binding effect on countries. It provides 
for national treatment of , and non -discrimination against , foreign in vestors. Furthermore, it also 
provides for the free transfer of assets , and protection from uncompensated expropriation.  
2.35.   EAC countries can negotiate and enter investment treaties with third countries. A Model 
Investment Treaty was adopted in 2016, with th e objective of guiding, and serving as a template 
for, negotiations.  
2.36.   Double taxation remains a major hurdle for cross -border investment flows. Investment 
income generated from cross -border operations are taxed not only in the country of generation, but 
also in the country of residence of the taxpayer. An Agreement on the Avoidance of Double Taxation 
                                                
19 US-EAC Cooperation Agreement on T rade Facilitation, SPS, and TBT . WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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was signed in November 2011, but the ratification process is ongoing.20 The ratification process is 
slow due to fears of loss of revenue and tax evasion. As at December  2017, Kenya, Rwanda and 
Uganda ha d ratified the Agreement.  
                                                
20 EAC (2016), The Double Taxation Avoidance Agreement of the East African Community Handbook . WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures and documentation  
3.1.  Customs procedures  and documentations are not yet fully harmonized within the EAC (see 
annexes). They are governed mainly by national legislations, the provisions of the EAC Customs 
Management Act, 2004 (as amended in 2009), and the EAC Custo ms Management Regulations, 
2010.  
3.2.  Within the EAC, national customs use different computer systems. ASYCUDA World is in place 
in Rwanda, Uganda and Burundi. In 2017, Kenya replaced its Simba system with the Integrated 
Customs Management System ( iCMS). Tanzania also replaced ASYCUDA++ with the Tanzania 
Customs Integrated System (TANCIS). The use of these  different systems is potentially a source of 
delays in cargo clearance, mainly for transit goods. During the review period, the EAC countries have 
taken steps to interconnect their systems in order to facilitate the flow of information between 
customs authorities.  
3.3.  In line with the Customs Management Act, only licensed vessels are allowed to carry goods 
subject to customs control. Licences are issued b y the customs authorities, are renewable annually, 
and are subject to a renewal fee of USD 400. Licensed vessels can operate freely within the 
Community.   
3.4.  None of EAC countries  have recourse to pre -shipment or destination inspection s for customs 
valuation purposes. Pre-shipment inspection for conformity assessment purposes is required for 
certain goods in Burundi and Kenya  (see country annexes).  
3.5.  A regional AEO programme was introduced in 2016. Under the programme, any individual or 
business entity involved  in international trade may benefit from faster customs clearance 
procedures, if recognized as a low -risk company by customs authorities. Customs declarations from 
traders and manufacturers with AEO status are given priority throughout the whole clearance 
process.1 AEO clearing and forwarding agents are accorded priority treatment in the cargo clearance 
chain, and a waiver for the bond requirement. Benefits for AEO transporters include priority 
clearance at the borders, and an exemption from the mandatory u se of the electronic cargo tracking 
system. Participation in the programme is free of charge, and AEO status is granted for three years, 
renewable. The programme was introduced in 2012 on a pilot basis , and was fully rolled out in 2015 
in all EAC countries . There are currently 82 regional operators.  
3.6.  Up until 2017, EAC countries were using different cargo tracking systems, which resulted in 
cargos being traced only up to border points; delays at border points ; increased costs for traders ; 
and an  increased ri sk of cargo theft or diversion of goods in transit. In 2017, Kenya, Uganda and 
Rwanda jointly launched an electronic cargo tracking system along the northern corridor, from the 
port of Mombasa to Kampala and Kigali. The system is free of charge. Tanzania i s in the process of 
having the system extended to the central corridor by June 2019.   
3.7.  EAC countries have improved the procedures for goods in transit , through the implementation , 
in 2015 , of a single regional bond system. However, requirements vary from co untry to country.  
3.8.  The EAC's single customs territory (SCT) model relies on three pillars:  free circulation of goods; 
a revenue management system; and an adequate legal and institutional framework  (Box 3.1). The 
SCT was rolled out in July 2014. According to the authorities, all imports into the EAC and intra -EAC 
transfer s of goods are cleared under the SCT, and its extension to the e xport regime is under 
consideration . 
                                                
1 The benefits include: the automatic processing of the customs declaration, exemption from the 
physical examination of goods (except for risk -based interventions), expedited payment of refund claims, 
priority treatment in the cargo clearance chain, and wai ver of the bond requirement.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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Box 3.1 Main principles governing the EAC's  SCT 
The EAC's single customs territory rests on three pillars: ensuring the free circulation of goods, establishing a 
revenue management system, and an adequate legal and institutional framework. The free circulation of goods 
is based on the following pri nciples:  
a. Imports into the EAC: they are subject to the CET. Imports are declared only at the country of 
destination , and are released at the first point of entry ; the goods are then move d under a single 
bond to the final destination . Unlike the previous sy stem, where transit goods and goods for 
warehousing enter as such in each country, they are now declared only once and are covered by 
a single regional bond system ;  
b. Intra-EAC transfer of goods: duty -paid goods continue to be subject to customs duties when  
transferred to another EAC country. Locally -produced goods are subjected to applicable domestic 
taxes and levies when transferred to another member country;  
c. Exports to markets outside the EAC: they are covered by a single regional bond guarantee. 
Dependi ng on the level of risk, they are monitored through an electronic cargo tracking system;  
and 
d. Port and border operations: the activities of agencies involved in the clearance of cargo at ports 
and borders are to be centralized through a single window system at designated one-stop border 
posts. 
Each revenue authority has its own  distinctive revenue management system. Taxes and duties are assessed 
and paid at destination Partner States.  
Source:  EAC (2014), Single Customs Territory Procedures Manual.  Arusha, July 2014.  
3.9.  The establishment of one -stop border posts is another key step in the operationali zation of the 
customs union. The EAC One -Stop Border Posts Act was enacted in 2016, and provides for the 
establishment and implementation of one -stop border posts at common borders. The objective is to 
improve the efficiency of the movement of goods, perso ns and services within the Community. About 
15 posts have been designated as one -stop border posts. Border controls in these posts continue to 
be carried out according to national laws. However, officers are encouraged to proceed to 
simultaneous processing  of documents , joint inspections and verifications . Although the legislation 
has not yet entered into force, countries have been operating these border posts based on bilateral 
agreements that are consistent with the legislation. According to the authoriti es, ten one-stop border 
posts are functional. The major challenge is interconnectivity between the respective systems of the 
Partner States.  
3.10.   The steps taken to operationalize the SCT have contributed to reducing delays in cargo 
clearance. For instance, on the Northern Corridor, the turnaround time of goods transiting from 
Mombasa to Kampala has been reduced from 18 days to 4, and goods from Mombasa to Kigali, fr om 
21 days to 6.2 Similarly, on the Central Corridor, the turnaround time between the port of Dar  es 
Salaam and Kigali (or Bujumbura) has been reduced from over 20  days to 6.  
3.11.   Customs procedures are to be carried out by licensed customs clearing agents , who  are 
licensed by the customs commissioner. Licences are valid for one calendar year, and are subj ect to 
an application fee of US D 10 and an annual fee of US D 400. Customs clearing agents may apply for 
a licence valid only nationwide or in any other EAC country.  
3.12.   Kenya, Rwanda and Uganda have ratified the WTO TFA; the other EAC countries have not yet 
done so. All the countries have notified their category A commitments under the Agreement, and 
have adopted a regional action plan for its implementation.  
3.13.   All EAC countries are members of the World Customs Organization. Kenya, Rwanda and 
Uganda have ratifie d the International Convention on the Simplification and Harmonization of 
Customs Procedures (revised Kyoto Convention).  
3.1.2   Customs valuation  
3.14.   Customs valuation is broadly based on the provisions of the Agreement on Implementation of 
Article VII of the GATT 19 94 (WTO Customs Valuation Agreement (WTO CVA)).3 According to the 
authorities, the transaction value  is primar ily used for the determination of the customs value of 
                                                
2 EALA online information. Viewed at: http://www.eala.org/uploads/14_May_2015.pdf .   
3 EAC Customs Management Act of 2004, Section 122 and Fourth Schedule.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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goods. A customs valuation manual was developed in 2012  to help ensure a uniform interpretation 
and application of customs valuation provisions.4 The authorities indicated that no products were 
subject to minimum values.   
3.15.   The EAC Secretariat has developed some guidelines for high -risk products that might pose 
valuation challenges. These guidelines ("Product Identification Bull etins") provide further details , on 
the products, including possible countries of origin as well as their past  f.o.b. values. Declared 
product values that do  not fall within "acceptable ra nges" under the guidelines are subject to further 
research by customs.   
3.16.   The valuation of used motor vehicles is one of the areas where many EAC countries face 
challenges in implementing the WTO CVA . Methods based on domestic retail prices are typically 
used. The customs value is then determined by applying the depreciation rate approved by the 
authorities. The lack of uniformity in the depreciation schedules and the assessment of the age of 
the car (year of manufacture vs. date of first registration) seem t o cause distortions in intra -
community trade in used cars. In 2015, the Council of Ministers adopted new rules that reduce the 
depreciation rates by five percentage points , effectively increasing dutiable values of vehicles . Under 
the new rules, depreciati on rate s for motor vehicles range from 20% (for vehicles of one year old) 
to 80% (for vehicles that are ten years old or over) . The determination of the domestic retail value 
may vary  from country to country .  
3.1.3   Rules of origin  
3.17.   EAC preferential rules of orig in are provided for in Article 14 of the Customs Union Protocol. 
They were reviewed i n 2015, with a view to boost ing intra -community trade.5 Goods are defined as 
originating in the country where they are wholly produced or undergo substantial work or processing . 
Origin criteria for substantial work or processing are defined at product level .6 
3.18.   The principle of absorption is allowed under the new rules of origin. Under the principle, a 
product with originating status, used as a raw material in the manufa cture of another product, is 
treated as an originating material. Non -originating materials used in its manufacture are not taken 
into account when determining the origin of the new product.  Cumulation of origin is allowed, except 
for "sensitive" items (Sch edule 2 of the EAC CET). Furthermore, a set of originating and non -
originating products can be conferred with originating status if the value of the non -originating 
products does not exceed 15% of the ex-works  price of the set.  
3.19.   The legislation  also provide s for a model certificate of origin.  Certificates of origin are valid 
for six months from the date of issuance; the related fees are not harmonized across countries. A 
simplified procedure is available for small traders engaged in cross -border trade. For c onsignments 
worth USD 2,000 or less, traders can obtain an EAC Simplified Certificate of Origin at the border, 
free of charge.  
3.20.   EAC countries are currently negotiating preferential rules of origin with COMESA and the 
SADC, under the Tripartite FTA. According to the authorities, as of September 2018, rules of origin 
have been  adopted on 3,267 tariff lines (at six-digit level based on HS 2017) of the total tariff lines 
(5,387), and negotiations are still ongoing.   
3.21.   EAC countries are also applying prefer ential rules of origin under their individual preferential 
trade agreements (see country annexes).  
3.1.4   Tariffs  
3.22.   Pursuant to Article 12 of the Customs Union Protocol , the Council of Ministers may review the 
CET structure and approve measures to remedy any adver se effects that any of the EAC countries 
may experience due to the implementation of the CET. Any customs exemption, duty remission, or 
other type of concession must be in accordance with the Protocol and the East African Community 
                                                
4 EAC (2012 ) EAC Customs Valuation Manual - A Guide to the Customs Valuation of Imported  Goods in 
the East African Community.  Arusha, April. Viewed at: http://pdf.usaid.gov/pdf_docs/PA00JZ31.pdf 
[15 January 2018].  
5 East African Community Customs Union (Rules of Origin) Rules, 2015.  
6 Part 1 of the First Schedule.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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Customs Management Act ( EACCMA), 2004 .7,8 According to the authorities, the review of the current 
EAC CET is underway, and it is planned to be finalized in 2019 .  
3.23.   In 2016, EAC customs duties and taxes (including VAT and excise duties) accounted for over 
38% of total tax revenue, with the largest source being VAT on imports (13% of total tax revenue).9 
Customs tariffs accounted for approximately 8% of fiscal receipts in 2016.  
3.1.4.1   The applied MFN tariff  
3.24.   All EAC countries apply the CET to imports from non -member States. However, 
country -specific deviations from the CET are allowed (Section 3.1.4.3). The EAC CET is based on the 
HS 2017 version of the Harmonized Commodity Description and Coding System (HS).  Tariff rates 
are mostly ad valorem , and are applied on the c.i.f. value of imports.  The 2018 tariff  consists of 
5,685 lines at the HS eight -digit level, of which 99% carry ad valorem  duties. Some 55 tariff lines 
(1% of the total) carry mixed duties. There are no seasonal or variable tariffs, or tariff quotas.  
3.25.   The EAC CET comprises : zero on raw materials and capital goods ; 10% on intermediate 
goods; 25% on finished goods; and rates above 25% on some items deemed sensitive. The sensitive 
items specified in Schedule 2 of the EAC CET are, in principle, goods where EAC member States see 
potent ial for local production and trade .10 In the 2018 tariff schedule, the sensitive items, consisting 
of some 63 tariff lines, cover, inter alia , dairy products, wheat, rice, sugar, woven fabrics, and worn 
clothing (Table 3.1 and Table A3 .1). According to the authorities, these products are considered 
sensitive, especially with regards to promoting local productive capacities and taking into a ccount 
environmental purposes.  
3.26.   Since the previous Review in 2012 , changes to the CET have included: cement, from 55% to 
25% due to a shortage in the region; dairy products such as yogurt and cheese, from 25% to 60%; 
wheat or meslin flour, from 60% to 50%; and worn clothing , from USD 0.2/kg to USD  0.4/kg.  
Table 3.1 Summary table on sensitive items subject to high tariffs, 2011 and 2018  
Product description  2011 CET rate  2018  CET rate  
Milk and cream  60 60 
Buttermilk, curdled milk and cream, yogurt , etc 60 60 
Cheese and curd  25a 60 
Wheat and meslin  35 35 
Rice 75% or USD 200/Mtb 75% or USD 345/Mtb 
Wheat or meslin flour  60 50 
Maize (corn) flour  50 50 
Cane and beet sugar  30%; 10 0% or USD 200/Mtb 100% or USD 460/Mtb  
Cigarettes containing tobacco  35 35 
Portland cement other than white  55 25a 
Matches  50 25a 
Woven fabrics of cotton: Khanga, Kikoi and Kitenge  50 50 
Track suits, ski suits and swimwear; women's or 
girls' other garments related to Khanga, Kikoi and 
Kitenge  50 50 
Bed, table, toilet and kitchen linen s of cotton  50 50 
Worn clothing and other worn articles  35% or USD 0.20/kgb 35% or US D 0.40/kgb  
Sacks and bags, of a kind used for the packing of 
goods  45% or US D 0.45 per bagb 25a 
                                                
7 The EAC CET schedule and its Gazette were viewed at: https://www.eac.int/ .  
8 Recent EAC Gazette Noti ces related to duty concessions include: No. 8 o f 30 June 2017 ; No. 9 of 14 July 
2017; No. 11 of 10 September 2017 ; and No. 1 of 3 January 2018 . 
9 EAC (2017), EAC trade and investment report, 2016" .  
10 Shepherd, B .; de Melo , J.; and Sen , R. (2017); Reform of the EAC Common External Tariff: Evidence 
from Trade Costs.  International Growth Centre, November. Viewed at : https://www.theigc.org/wp -
content/uploads /2017/11/Sheperd -et-al-2017-policy -paper1.pdf . WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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Product description  2011 CET rate  2018  CET rate  
Crown corks  40 25a 
Manganese dioxide, mercuric oxide, silver oxide, 
lithium, air -zinc, and other primary cells and 
primary batteries  35 35 
a These items have been added or removed since 2017.  
b Whichever is higher.  
Source:  EAC Secretariat, CET schedules, 2007 and 2017 version s.  
3.27.   The 2018 simple average applied MFN tariff is 12.9%, slightly up from 12.7% in 2011 
(Table  3.2). The coefficient of variation of 0.95 (up from 0.94 in 2011) indicates moderate tariff 
dispersion, with rates ranging from zero to 100%, including  the ad valorem  part of mixed rates. The 
highest ad valorem  rate (60%) applies to 16 tariff lines, for dairy products; and the mixed tariff rate, 
including  the ad valorem  rate of 100%, applies to cane and beet sugar.  
Table 3.2 Structure of the CET, 2011 and 2018  
 
2011a 2018  
Simple average tariff rate  12.7 12.9 
WTO agricultural products  20.2 20.7 
WTO n on-agricultural products  11.5 11.7 
Agriculture, hunting, forestry and fishing (ISIC 1)  17.7 18.1 
Mining and quarrying (ISIC 2)  4.8 4.7 
Manufacturing (ISIC 3)  12.5 12.7 
Duty-free tariff lines (% of all tariff lines)  37.4 37.4 
Simple average rate of dutiable lines only  20.2 20.7 
Tariff quotas (% of all tariff lines)  0.0 0.0 
Non-ad valorem  tariffs (% of all tariff lines)  0.2 1.0 
Non-ad valorem tariffs with no ad valorem  equivalents  (% of all tariff lines)  0.2 1.0 
Domestic tariff "peaks" (% of all tariff lines)b 0.9 0.8 
International tariff "peaks" (% of all tariff lines)c 40.5 42.2 
Overall standard deviation of applied rates  12.0 12.3 
Coefficient of variation  0.94 0.95 
"Nuisance" applied rates (% of all tariff lines)d 0.0 0.0 
Note:  Fiscal year runs from 1 July to 30 June.  
 2011 tariff is based on HS07 nomenclature consisting of 5,274 tariff lines (at 8 -digit tariff line level).  
 2018 tariff  is based on HS17 nomenclature consisting of 5,68 5 tariff lines (at 8 -digit tariff line level).  
 For mixed  duties, the ad-valorem  components are used for the calculations .  
a WTO (2012), Trade Policy Review : East African Community (EAC) Countries . Geneva,  November.  
b Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
c International tariff peaks are defined as those exceeding 15%.  
d Nuisance rates are those greater than zero, but less than or equal to 2%. 
Source:  WTO Secretariat calculations, based on data provided by the EAC Secretariat . 
3.28.   Overall, the distribution of the EAC CET structure has not changed considerably since the last 
Review. The modal rate is 25%, applying to over 40% of all tariff lines  (Chart 3.1 ). Some 37% of all 
tariff lines are duty -free, and 20% carry the rate of 10%. The proportion of duty -free lines in 2018 
remains the same as in 2011; duty -free items include fruit and spore seeds (HS 12), vegetable oils 
(HS 15), chemicals (HS28 a nd 29), and machinery and mechanical appliances ( HS 84). The number 
of non -ad valorem  tariff lines increased from 13 (0.2% of total lines) in 2011 to 55 (1.0% of total 
lines)  in 201 8 (Table 3.2 ), as a result of, inter alia , shifts from ad valorem  (e.g. the rate of 10%)  to 
mixed tariffs , mainly  on steel products (HS 72) ( Table A3 .2). The increasing number of tariff lines  
with non-ad valorem  rates adds to the complexity of the tariff structure. According to the authorities, 
tariff lines with non -ad valorem  rates are meant to protect against adverse effects of undervaluation 
due to complexities in the valuation of products . WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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Chart 3.1 Distribution of CET applied tariffs, 2011 and 2018  
 
a Including the ad valorem  part of mixed duties in 2018.  
Note:  Figures in parenth eses indicate the share of total lines.  
Source:  WTO Secretariat calculations, based on data provided by the EAC Secretariat.  
3.29.   Agriculture remains the most tariff -protected sector: the average applied tariff on agricultural 
products (WTO definition) is 20.7%, whereas the corresponding average for non -agricultural 
products stands at 11.7% (Table 3.2 and Table 3.3). Animals and anim al products, cereals, sugar, 
beverages, dairy products, fish products, fruits and vegetables, and clothing are the product groups 
with high import duties of over 20%. Furthermore, some product groups s uch as sugar, chemicals, 
non-electric machinery, petrol eum, and transport equipment  display higher coefficients of variation, 
implying larger t ariff dispersion  within these product categories.  
Table 3.3 Summary analysis of the CET, 2018  
 Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) CVa Share of 
duty free 
lines (%)b Non-ad 
valorem  
linesb 
Total  5,685  12.9 0-100 0.9 37.4 1.0 
HS 01 -24 977 23.0 0-100 0.5 7.7 1.3 
HS 25 -97 4,708  10.9 0-50 1.0 43.6 0.9 
By WTO category        
WTO agricultural products  782 20.7 0-100 0.7 15.5 1.7 
Animals and products thereof  116 22.6 0-25 0.3 9.5 0.0 
Dairy products  21 51.7 25-60 0.3 0.0 0.0 
Fruit, vegetables, and plants  212 21.8 0-25 0.4 9.0 0.0 
Coffee, tea, and cocoa and cocoa 
preparations  24 19.6 0-25 0.5 16.7 0.0 
Cereals  and preparations  100 22.9 0-75 0.7 12.0 4.0 
Oil seeds, fats, oil s and their 
products  87 11.8 0-25 0.7 19.5 0.0 
Sugars and confectionary  21 51.4 10-100 0.8 0.0 42.9 
Beverages, spirits and tobacco  55 25.5 10-35 0.1 0.0 0.0 
Cotton  5 0.0 0.0 0.0 100.0  0.0 
Other agricultural products, n.e.s.  141 11.1 0-25 0.9 37.6 0.0 
WTO non -agricultural products  4,903  11.7 0-50 1.0 40.9 0.9 
Fish and fishery products  262 24.6 0-25 0.1 0.8 0.0 
Minerals and metals  933 11.2 0-25 0.9 36.1 4.2 
Chemicals and photographic 
supplies  986 4.1 0-25 2.0 77.3 0.0 
Wood, pulp, paper and furniture  299 13.4 0-25 0.8 28.4 0.0 
(37.4%)
(22.1%)(39.3%)
(1.1%)(37.4%)
(20.4%)(41.1%)
(1.1%)
0%5%10%15%20%25%30%35%40%45%
Duty free 10% 25% >25%
("Sensitive" items)2011 2018Chart 3.[EAC] Distribution of CET applied tariff rates, 2011 and 2018
Source:  WTO Secretariat calculations, based on data provided by the EAC Secretariat.% of total tariff lines
Figures in parentheses indicate the share of total lines.  Note:a
Including the ad-valorem part of mixed duties in 2018. aWT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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 Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) CVa Share of 
duty free 
lines (%)b Non-ad 
valorem  
linesb 
Textiles  606 19.6 0-50 0.5 7.4 0.5 
Clothing  221 25.3 25-50 0.1 0.0 0.0 
Leather, rubber, footwear and 
travel goods  157 12.9 0-25 0.7 21.0 0.0 
Non-electric machinery  545 3.4 0-25 2.0 74.7 0.0 
Electric machinery  251 11.0 0-35 0.9 35.1 0.0 
Transport equipment  190 8.6 0-25 1.3 55.8 0.0 
Non-agricultural products, n.e.s.  424 15.6 0-25 0.7 28.5 0.0 
Petroleum  29 4.3 0-25 1.8 72.4 0.0 
By ISIC sectorc       
Agriculture, hunting and fishing  402 18.1 0-75 0.7 22.9 0.2 
Mining and quarrying  98 4.7 0-25 1.6 66.3 0.0 
Manufacturing  5,184  12.7 0-100 1.0 38.0 1.0 
By stage of processing        
First stage of processing  785 14.9 0-75 0.9 35.3 0.9 
Semi-processed products  1,859  9.9 0-100 1.3 48.0 2.6 
Fully processed products  3,041  14.3 0-60 0.8 31.5 0.0 
a Coefficient  of variation.  
b  Share of duty -free and share of non -ad valorem  in the total number of tariff lines of the product 
group.  
c International Standard Industrial Classification (Rev.2). Electricity , gas and water are excluded 
(1 tariff line).  
Note:  The 2018 tariff schedule is based on  the HS17 nomenclature cons isting of 5,685  tariff lines (at the 
8-digit tariff line level).  
Source:  WTO Secretariat calculations, based on data provided by the EAC Secretariat.  
3.30.   In aggregate, t he applied MFN tariff structure displays mixed escalation: the average tariff in 
2018 is  estimated at 14.9% on raw materials; 9.9% on semi -processed products, and 14.3% on 
fully pr ocessed products ( Table 3.3 ). The high overall tariff protection of raw materials may 
discourage investment in the processing industries, due to high duties on imported inputs adding to 
production costs; this may eventually reduce the competitiveness with respect to identical imported 
semi-processed products. As a consequence, EAC member States have applied a number of duty 
and tax concessions  (Section 3.1.4.4).  
3.31.   At a more disaggregated level, positive escalation (indicating higher rates of effective 
protect ion for more processed products) seems to exist mainly in some industries such as: textile s 
and apparel ; wood products ; paper, printing, and publishing; and chemicals and plastics  (Chart  3.2). 
The high tariff protection of certain finished products may act  as a disincentive to increase 
international competitiveness of the finished products. Besides, the positive escalation and the 
effective rate of protection may be more evident if duty concessions were taken into account.   WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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Chart 3.2 Tariff escalation by manufacturing sector (ISIC 2 -digit level), 2018  
 
n.a. Not applicable.  
Source:  WTO Secretariat calculations, based on data provided by the EAC Secretariat.  
3.1.4.2   WTO tariff bindings  
3.32.   EAC member States have separately bound their tariffs at the WTO . Their schedules of 
concessions were transposed into the HS 2012 version and certified in 2017 and 2018 as part of the 
transposition exercise undertaken by the WTO Secretariat.11  
3.33.   Bindings vary considerably in terms of coverag e of tariff lines and le vels of bound rates (Table 
3.4): while Rwan da has bound 100% of its tariff lines , other EAC member States have bound less 
than 25% of them. The overall average bound tariff for all goods differs from one member State to 
another, fro m the lowest rate of 68.3% in Burundi to the highest rate of 120% in Tanzania. No tariff 
quotas are included in the commitments . The large gap between the bound and applied MFN rates 
and the absence of bindings for over 70% of tariff lines (except Rwanda) leaves EAC members great 
flexibility to increase MFN duties, thus reduc ing the predictability of the tariff regime . 
3.34.   Although the CET rates are, in most cases, considerably lower than bound rates, they exceed 
the corresponding bound rates for some tariff li nes (Table 3.4; see Annexes 1 -5 for further details).  
Table 3.4 WTO tariff bindings by EAC members  
 Burundi  Kenya  Rwanda  Tanzania  Uganda  
Bound tariff lines (% of all tariff lines)  22.4 16.1 100.0  14.0 16.5 
Simple average tariff ratea 68.3 94.0 89.4 120.0  72.8 
  WTO a gricultural products  95.1 100.0  74.6 120.0  77.1 
  WTO n on-agricultural products  25.6 58.8 91.7 120.0  51.1 
   Agriculture, hunting, forestry and fishing 
(ISIC 1)  98.6 95.0 84.9 120.0  73.6 
  Mining and quarrying (ISIC 2)  Ub Ub 100.0  Ub Ub 
  Manufacturing (ISIC 3)  59.4 93.5 89.5 120.0  72.3 
Range of bound rates (%)  0-100 18-100 0-100 120.0  40-80 
Duty -free tariff lines  
(% of all tariff lines)  0.7 0.0 1.0 0.0 0.0 
                                                
11 Documents G/MA/330 , 19 October 2016; Burundi (G/MA/TAR/RS/516), 27 February 2018; Kenya 
(G/MA/TAR/RS/528), 27 March 2018 ; Rwanda (WT/Let/1323 ), 1 December 2017 ; Tanzania (WT/Let/1299 ), 
17 November 2017 ; and Uganda (WT/Let/1302 ), 20 November 2017 . 
0%5%10%15%20%25%30%35%Chart 3.3 Tariff escalation by manufacturing sector (ISIC 2 -digit level), 2017Food, 
beverages, 
and  
tobacco
Textiles, 
apparel
Wood 
products
Paper, 
printing, and 
publishing
Chemicals, 
plastics
Non-metallic 
mineral 
products
Basic metal 
products
Fabricated 
metal 
products
Other 
manufacturingRaw materials Semi -processed Fully processed
n.a.
n.a.Average applied rate in manufacturing 
(12.7%)
n.a.           Not applicable.
Total 
manufacturing 
WTO Secretariat calculations, based on WTO IDB. Source:WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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 Burundi  Kenya  Rwanda  Tanzania  Uganda  
Number of lines for which the applied 
customs dut ies exceed the bound rate s, 
of whichc,d: 390 (13)  20 (19)  342 (44)  (13) (13) 
WTO a gricultural products  43 (13)  (19) 57 (13)  (13) (13) 
WTO n on-agricultural products  347 1 285 (31)  0 0 
Note:  The final bound rates (HS 2012 nomenclature) are aligned with the 2018 applied tariff schedule 
(HS 2017 nomenclature) by the Secretariat for the purpose of tariff analysis.  
a Calculations on bound averages are based on the following number of bound tariff lines (including 
partially boun d): Burundi - 1,272; Kenya - 913; Rwanda - 5,685; Tanzania - 795; and Uganda - 938. 
b Unbound.  
c Country -specific tariff waivers (i.e. temporary tariff deviation from the CET) are taken into account 
in calculations.  
d Figures in parenthesis are number of ta riff lines with mixed duty tariffs; applied mixed tariffs may 
exceed bound ad valorem  rates, depending on the unit import price of the product. For example, in 
case of Kenya, 19 out of 20 tariff lines are mixed duty tariffs.  
Source:  WTO Secretariat calculations, based on data provided by the EAC Secretariat and WTO Consolidated 
Tariff Schedules (CTS) database.  
3.1.4.3   Tariff exemptions and reductions  
3.35.   Pursuant to Article 33 of the Protocol, EAC members have agreed to harmonize their duty and 
tax exemption and  concession schemes. These measures are regulated by the Fifth Schedule of the 
EAC Customs Management Act, 2004, as amended.12 Furthermore, the EAC member States also 
provide a variety of duty and tax concessions under already -harmonized schemes , such as th e 
temporary admission of goods/inward processing, duty drawback, rebates, remission or refund.  
3.36.   In addition to goods imported by , or on behalf of , privileged persons and institutions (Part A  
- Specific Exemption), a general duty exemption applies to goods s uch as13: containers and pallets;  
fish, crustaceans and molluscs; mosquito nets and materials for the manufacture of mosquito nets; 
seeds for sowing; fertilizers; horticulture, agriculture or floriculture inputs; items imported for use 
in licensed hospitals ; educational articles; inputs for use in the manufacture of agricultural 
equipment; hotel equipment; refrigerated trucks and refrigerated trailers; insulated tankers; 
computer software; specialized solar and wind energy equipment; and woven fabrics for th e 
manufacture of textile materials.14 
3.37.   Moreover, EAC members are allowed to eliminate, reduce, or sometimes increase tariffs, for 
a temporary period , on both sensitive and non -sensitive products , through concession schemes such 
as the "stay application" sche me and the "duty remission" scheme.15 
3.38.   Under the "stay application" scheme, the Council of Ministers may allow member countries to 
deviate from the CET rates for a period of one year. Country -specific waivers are granted by the 
Council on a case -by-case basi s, on justification of any injury or threat of injury, upon request from 
the member State. Approval should be by consensus.16 The number of tariff lines under the scheme 
varies significantly in terms of coverage and margins of temporary changes to the rates  (Table 3.5; 
see Annexes 1 -5 for further details).17 The Council has approved a wide range of items (over 
400 tariff lines) for Rwanda, whereas other EAC countries utilize the scheme at relatively low levels 
(Table 3.5). Rwanda and Uganda have increased the  number of tariff lines with temporary reduced 
rates (lower than the CET rates), while other EAC countries have applied either higher rates or mixed 
tariffs. Moreover, Rwanda applies tariff quotas on sugar products (HS 1701 .12.90, HS 1701 .14.90, 
HS 1701 .91.00, and HS 1701 .99.90) on  a temporary basis.  
                                                
12 Recent EAC Gazette Notices relating to amendments to the Fifth Schedule (Exemption Regime) 
include: No.  8 of 30 June 2011; No.  10 of 30 June 2012; No.  10 of 30 June 2013; No.  8 of 20 June 2014; No . 9 
of 19 June 2015; No. 5 of 30 June 2016; and No. 8 of 30 June 2017 . 
13 EAC CM Protocol, Fifth Schedule , Part B.  
14 Information compiled by the WTO Secretariat, based on the Fifth Schedule of the  EAC Customs 
Management  Act, 2004 and its amendments issued in EAC Gazettes (see footnote 13).  
15 Articles 12(3) and 39(c) of the Protocol on the Establishment of the EAC Customs Union for the "stay 
application" scheme; and Section 140 of the EACCMA 2004 for the "duty remission" scheme.  
16 WTO ( 2012), Trade Policy Review: The East African Community (EAC)  Countries . Geneva , November.  
17 EAC Gazette Notice No. 8 o f 30 June 2017 is currently in effect since 1 July 2017 . WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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3.39.   There is a Duty Remission Committee in each EAC country, established the East African 
Community Customs Management (Duty Remission) Regulations, 2008. The Committee receives, 
vets and process es application s for remission.  
Table 3.5 Tariff lines (at the 8 -digit level) with national rates  different from the CET 
rates, 2018   
  Burundi  Kenya  Rwanda  Tanzania  Uganda  
Number of tariff lines  8 376 437 98 228 
Changes to EAC  CET rates       
 Reduced tariff rates  5 9 417 2 41 
 Increased tariff rates   
28 2 91 142 
 Different type of duty rates applied  
(e.g. switches from ad valorem  to non -ad valorem 
rates)  3 339 18 5 45 
By HS Section       
01 Live animals and products  0 0 0 66 66 
02 Vegetable products  0 4 3 1 4 
03 Fats and oils  0 6 0 5 0 
04 Prepared food, beverages and tobacco  0 0 4 18 18 
05 Mineral products  0 0 0 1 4 
06 Chemicals and products thereof  0 1 15 1 6 
07 Plastics, rubber, and articles thereof  1 3 12 1 7 
08 Raw hides and skins, leather, and its products  0 0 11 0 0 
09 Wood and articles of wood  0 16 2 0 0 
10 Pulp of wood, paper and paperboard  0 10 1 0 12 
11 Textiles and textile articles  3 265 269 3 11 
12 Footwear, headgear, etc  0 3 3 0 0 
13 Articles of stone, plaster, cement  0 0 0 0 11 
14 Precious stones and metals, pearls  0 0 4 0 0 
15 Base metals and articles thereof  0 62 46 1 58 
16 Machinery, electrical equipment, etc.  0 0 54 1 9 
17 Transport equipment  4 1 6 0 4 
18 Precision equipment  0 0 1 0 0 
20 Miscellaneous manufactured articles  0 5 6 0 18 
Note:  No relevant tariff lines in HS section s 19 and 21. 
Source:  WTO Secretariat calculations, based on data provided by EAC Secretariat; and EAC Gazette Vol. 
AT1-No.8, 30 June 2018.  
3.40.   The "duty remission" scheme (DRS) is governed by the provisions of the EAC Customs 
Management Act, 2004, and the EAC Customs Management ( Duty Remission ) Regulations, 2008. 
The DRS allows manufacturers to import raw materials and industrial inputs for the m anufacture of 
goods at a duty rate of 10% or under ; the final goods are meant to be sold outside the EAC. In each 
country, a Duty Remission Committee rec eives the applications, and advis es on the quantities of 
goods on which remission may be granted. The r ecommendations are then submitted to the Council 
of Ministers for approval. If approved, a duty remission is granted for a period of 12 months from 
the date of its publication in the Gazette ; it is renewable for 12 months .18 As part of the conditions 
relate d to the DRS, a bond covering the applicable duty on the approved quantity is required. 
Manufacturers are subject to a penalty of 10% of the dutiable value if they fail to export the final 
goods or to use the imported goods for the intended purpose.19 If finished products are sold in the 
customs territory, duties, levies other charges apply.  
3.41.   Items under the DRS vary, depending on each member State. In general, inputs imported 
under the DRS include wheat, industrial sugar, completely knocked down (CKDs) kits  for motor 
cycles, raw materials for textiles and shoes, and paper for exercise books and text books (see 
Annexes 1 -5 for further details). Detailed information, including specific  items, tariff codes, 
manufacturers, rates of duty remissions, and quantities for individual EAC countries are published 
in the EAC Gazette.  
                                                
18 Article 6 of the EAC Customs Management (Duty Remission) Regulations, 2008.  
19 Article 7 and 8 of th e EAC Customs Management (Duty Remission) Regulations, 2008.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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3.1.4.4   Tariff preferences  
3.42.   In accordance with the Customs Union Protocol, each EAC country must grant duty -free 
access to imports from the other countries.  
3.43.   EAC members also grant tariff preferences on a reciprocal basis under trade agreements in 
which they engage individually. Acco rdingly, tariff preferences may differ from one country to 
another (see annexes 1 -5). The main preferences are under FTA agreements (COMESA and SADC): 
Burundi, Kenya, Rwanda, and Uganda are under the COMESA; and Tanzania is under the SADC. 
Burundi, Kenya a nd Rwanda participate in the FTA under COMESA, while Uganda applies an 80% 
reduction in the CET rate to goods originating in other COMESA countries, excluding EAC members.  
3.44.   Moreover, the  negotiations for the Economic Partnership Agreement (EPA) with the Eu ropean 
Union were concluded on 16 October 2014. Kenya and Rwanda signed the EPA , while other EAC 
member s are yet to do so.20  
3.1.4.5   Other duties and charges  
3.45.   EAC countries have individually bound their other duties and charges at various levels and 
different rates  (see annexes 1 -5). At the Community level, fees for some services and documents 
issued by the customs have been harmonized (Table 3.6). In addition, a development levy of 1.5% 
on a list of products from no n-EAC countries  is imposed.  
Table 3.6 Fees for services and documents  
(USD) 
Service s or certificate s Fees 
Certification of a copy of any document  5.00 
Issuance of a landing certificate, for each original entry in which goods are entered  10.00  
Transhipment  10.00  
Transfer of ownership  10.00  
Issuance of certificate of weight for a consignment  5.00 
Approval of alterations to the mark, number , or other particular , in any document submitted 
to customs, other than an inward manifest  5.00 
Cancellation of entries  10.00  
Issuance of any other certificate or certification of document issued by customs  3.00 
Amendment of an inward report  10.00  
Source:  EAC Customs Management Regulations, 2010.  
3.46.   The authorities indicated that EAC countries are considering the introduction of a 1% levy on 
extra-bloc imports , to fund the Community's budget.  In addition, Rwanda and Kenya are 
implementing the decision , taken at the 27th AU Summit , to introduce a 0.2% levy on imports from 
non-African countries.  
3.1.5   Internal taxes  
3.47.   Under the EAC CM Protocol, member States  are to harmoniz e their  tax policies and related 
laws. A Policy on EAC Domestic Tax Harmonization was developed and endorsed by the finance 
ministers during the 8th Meeting of the Sectoral Council on Finance and Economic A ffairs, held in 
May 2018. Detailed harmonization proposals for VAT and excise taxes are currently being developed . 
3.48.   The rates of VAT are not harmonized across the EAC countries. They apply to goods and 
services, including imports, at standard rates ranging from 16% in Kenya to 20% in Tanzania, with 
the other countries applying 18%. However, exports are zero -rated under the national VA T regimes 
of EAC countries (see  Annexes 1 -5).  
                                                
20 European Commission, Overview of Economic Partnership Agreements , October  2018. Viewed at: 
http://trade.ec.europa.eu/doclib/docs/2009/september/tradoc_144912.pdf . WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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3.49.   Excise taxes are levied following national legislation, and are not harmonized in terms of 
coverage or rates  (see A nnexes  1-5). According to the authorities, i nternal taxes are payable on 
intra-EAC trade unless otherwise provided for by domestic legislation . 
3.1.6   Import prohibitions, restrictions, and licensing  
3.50.   Imports prohibitions and re strictions are largely determined at the Community level.21 
Prohibited goods include: counterfeit goods; pornographic material s; matches containing white 
phosphorous ; distilled beverages containing essential oils or chemical products deemed injurious to 
health; soaps and cosmetic products containing mercury; used tyres ; plastic articles of less than 
30 microns;  and various agricultural and industrial chemicals. In accordance with international 
regulations, the importation of narcotic drugs and hazardous wast e is prohibited.  
3.51.   Since 2011, the EAC Polythene Materials Control Act, 2011 , the importation , use, sale and 
manufacturing of polythene have been  prohibited.22 However, to date, only Kenya, Rwanda and 
Uganda have banned the use of polythene. Exceptions apply to its use in the construction industry, 
the manufacturing of tents, industrial packaging , and medical services .  
3.52.   An import permit is required for a number of product categories, such as: arms and 
ammunition ; worked and unworked ivory ; genetically modified  products ; non-indigenous species of 
fish; and historical artefacts .23 In accordance with their international obligations, the importation of 
ozone -depleting substances and endangered species of wild flora and fauna into any EAC member 
is subject to a permi t.   
3.1.7   Contingency measures  
3.53.   According to the EAC Secretariat, current EAC provisions on anti -dumping, countervailing, 
and safeguard measures are based on the relevant WTO agreements, and have not changed since 
the previous TPR. Anti -dumping  measures are gove rned by the EAC Customs Union (Anti -Dumping 
Measures)  Regulations , 2004. With  the transition to a full y-fledged customs union, members are 
allowed to initiate anti-dumping investigations and reviews against  each other . However, this has 
never happened. Ken ya and Tanzania are the only EAC countries with national legislation on trade 
remedies.  
3.54.   Countervailing measures are governed by the EAC Customs Union (Subsidies and 
Countervailing Measures) Regulations, 2004.  
3.55.   Safeguard measures are governed by the EAC Cus toms Union (Safeguard Measures) 
Regulations, 2004.  Countries may resort  to a safeguard measure in the case of a sudden surge in 
imports of a product from a trading partner (including another EAC member). Safeguard measures 
can be maintained for a period of  one year. Their annual extension (for up to three years) is subject 
to approval by the Council of Ministers. Provisional safeguard measures can be taken for a period 
not exceeding 200 days.  
3.56.   The Customs Union Protocol provides for the establishment of an East African Community 
Committee on Trade Remedies. In addition to contingency measures, the Committee is to deal with 
issues relating to rules of origin and dispute settlement.  
3.2  Measures Directly Affecting Exports  
3.2.1   Documentation  
3.57.   EAC countries have not yet fully harmonized c ustoms documentation requirement s for 
export s. 
                                                
21 EAC Customs Management Act, 2004, Second Schedule.  
22 EAC Polythene Materials Control Act, 2011.  
23 EAC Customs Management Act, 2004, Second and Third Schedules.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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3.2.2   Taxation  
3.58.   All EAC countries apply export taxes on specified items (see Annexes 1 -5).  
3.2.3   Export prohibitions, restrictions, and licensing  
3.59.   The Third Schedule of the EAC  Customs Management Act, 200 4 provide s for a list of restricted 
and prohibited exports. In addition,  on national levels , export prohibitions  may apply in accordance 
with relevant international agreements (see Annexes 1 -5).  
3.2.4   Export assistance  
3.60.   The EAC countries have a number of export promotion tools in common , such as duty 
drawbacks, manufacturing under bonds , and Export Processing Zones (EPZs)  (Table 3. 7). Goods 
benefiting from any of these schemes are destined primarily for export ; their sale within  the customs 
union is subject to th e payment of applicable duties and charges.  Domestic sales of goods produced 
by an EPZ company should not exceed 20% of its annual production .  
Table 3.7 Overview of EAC's main export promotion schemes  
Scheme  Description/conditions  Implementation  
Duty drawback  Refund of the duty paid on imports when goods are 
exported to a third  country  In place in Kenya, Tanzania 
and Uganda  
Manufacturing under 
bond Possibility of import ing plant, machinery, 
equipment and raw materials tax -free when used 
exclusively in the manufacture of goods for export. 
Licence fee: US D 1,500  In place in Kenya and 
Uganda  
EPZs Designated customs area s where participants can 
import machinery, and resources  used for the 
manufacture of export goods , without payment of 
duty In place in Burundi, Kenya 
and Tanzania  
Source:  Information provided by the EAC Secretariat.  
3.61.   The EAC has enacted E xport Processing Zone R egulations  to ensure uniformity in the 
implementation of the Customs Union's EPZ provisions. An EAC member  that does not have national 
legislation on EPZs must, before applying the EAC regulations, enact national implementation 
legislation. Membe rs must align national legislation with the R egulations.24 The EAC Model Export 
Processing Zones Operational Manual , adopted in November 2011,  provides for  exemptions from 
duties and taxes on specific imports for the exclusive use in eligible business activities . The Manual 
encourages EAC members  to develop a harmonized list of exemptions under these Regulations . 
According to the EAC Secretariat, t he harmonized list of exemptions is being finalized.  
3.62.   During the review period, the EAC countries implemented their second Expo rt and Investment 
Promotion Strategy (EAC EIPA 2011 -16).25 Strategic objectives and interventions for export 
promotion include: f acilitating  the consolidation, expansion and diversification of export markets; 
expanding the export basket through the identifi cation and promotion of new exportable products; 
enhancing export competitiveness through product development and value -addition; improving 
regional and global trade flows through a better business environment; and ensuring the 
implementation of key export  promotion initiatives. The EAC Export Promotion Strategy 2018 –23 
has not yet been adopted. The EAC Secretariat indicated that its adoption should take place by the 
end of 2018.  
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.63.   Under the EAC CM Protocol, member countries undertake to progressively harmonize their 
tax policies. In practice,  countries are yet to do so. Corporate tax is applied at the standard rate of 
30%, except in Kenya where non -resident corporations are taxed at 37.5%. The standard rate of 
                                                
24 EAC Customs Union (E xport Processing Zones) Regulations.  
25 EAC (2011), Joint EAC Export and Investment Promotion Strategy: 2011 -2016.  EAC Secretariat, 
Arusha, Tanzania.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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VAT ranges between 16% and 20% (Section 3.1.5). In a move to attract foreign investme nt, the 
EAC countries provide tax incentives in various forms, including corporate income tax, remission of 
customs duties, and VAT (see Annexes 1 -5). Recent estimates put the revenue foregone by Kenya, 
Uganda, Tanzania and Rwanda at above USD 1.5 billion a year (up from USD 2.8 billion in 2012).26  
3.64.   The 2006 EAC Model Investment Code provides for investment incentives in the context of 
special economic zones. The Code is not binding, but rather is intended to serve as a guide in the 
design of national invest ment codes.  
3.65.   A number of incentives schemes are available for business es engaged in exports 
(Section  3.2.4). 
3.3.2   Standards and other technical requirements  
3.66.   Under the EAC Treaty, member countries are to adopt a common policy on standardization, 
quality assuranc e, metrology, and testing of goods and services produced and traded within the 
Community. The CM Protocol further calls on members to "harmonize and mutually recognize 
standards and implement a common trade policy for the Community".27 
3.67.   The Standards, Qualit y, Metrology and Testing (SQMT) Act, 2006 and the SQMT Protocol of 
2001 constitute the main framework for the Community's evolution towards a common policy. During 
the review period, a number of regulations have been adopted to operationalize the SQMT Act.  These 
relate, inter alia , to product certification, designation of laboratories, and enforcement of technical 
regulations.  The implementation of the SQMT Act is hindered by a number of challenges , includ ing 
limited awareness about the issue, and the lack of financial resources in some countries . According 
to the EAC Secretariat, the Act was reviewed in 2010, which resulted in the adoption of a Metrology 
Bill and a Standardization, Accreditation and Conformity Assessment (SACA) Bill . 
3.68.   The SQMT Act provides f or the adoption and harmonization of standards by member states, 
the enforcement of technical regulations, the declaration and acceptance of certification marks, and 
the alignment of national laws and regulations. At the regional level, the institutional s etting 
comprises: the East African Standards Committee (EASC), in charge of coordinating activities related 
to standardiz ation, metrology and conformity assessment, and monitoring their implementation at 
national and community levels; the Liaison Office, t asked with providing administrative support to 
the EASC; and the East African Accreditation Board (EAAB). The EASC is responsible for developing 
new standards and harmonizing existing ones. It has four technical subcommittees on: standards, 
quality assuran ce, metrology, and testing. Efforts are underway to establish a " TBT-SPS Forum" to 
address issues including technical regulations.  At national level, the institutional setting is 
supplemented by national standard bodies (NSBs) and bodies in charge of metrology, and 
accreditation.  
3.69.   Proposals for standards and technical regulations are received by NSBs. The proposal must 
be endorsed by at least two NSBs before being considered as accepted at the regional level and 
developed by the relevant committee or subcommittee. The "Draft EAC Standard" goes through a 
60-day public comments stage.28 The Draft is then revised accordingly and sent to th e NSBs. If 
accepted by all the NSBs, the Draft Standard is adopted and declared an " EAC standard" by the 
Council of Ministers . Countries have six months to adopt the EAC standard as a national one. The 
maximum duration allowed for the completion of a stand ard project is 24 months, from the proposal 
stage to the time of approval. As at 30  September  2018, the EAC catalogue include d 
1,526 standards, of which 1,007  are international.  
3.70.   The Council of Ministers may declare a  standard to be a  technical regulation , upon 
recommendation by the EASC . The related notice must be published in the Gazette and in at least 
one newspaper of national circulation in each country before the enforcement of the regulation.  
                                                
26 Actionaid International and Tax Justice Network Africa (2016), Still racing toward the bottom? 
Corporate tax incentives in East Africa.  July 2016. Viewed at: 
http://www.actionaid.org/sites/files/actionaid/corporate_tax_incentives_in_east _africa_to_print.pdf 
[15 February 2017].  
27 EAC CM Protocol, Article 5.  
28 The comments may come from stakeholders in the EAC or in any WTO Member country.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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3.71.   EAC countries experience some challenges in the harmonizat ion of their regimes on standards  
and technical regulations, particularly with regards to the mutual  recognition of inspection 
certificates. This forces traders to undergo repeated certification tests within the region . The p riority 
in the harmonization pr ocess is based on goods  traded in the region.  
3.3.3   Sanitary and phytosanitary measures  
3.72.   The EAC Treaty requires the countries to harmonize sanitary and phytosanitary (SPS) 
measures for pest and disease control. Under the Customs Union Protocol, the EAC countries  are to 
cooperate in several areas, including SPS measures. In this context, an SPS Protocol was  developed 
in 2013, based on the provisions of the WTO SPS Agreement. As of December 2017, harmonized 
measures and procedures have been developed for plants; mammal s, birds and bees; fish and 
fishery products; and food safety (see Table 3.8).  
Table 3.8 EAC's harmonized SPS measures and procedures as of December 2017  
Area  Import  requirements  Export  requirements  
Plants  − A plant import permit  from the relevant 
authority;  
− A phytosanitary certificate is required at 
the port of entry;  
− Compliance with relevant EAC quality 
standards  − A plant import permit from the 
destination country;  
− A phytosanitary certificate;  
− Inspect ions are carried out if required  
Mammals, birds 
and bees − An import permit from the veterinary 
administration specifying all the tests 
and conditions have been fulfilled;  
− Compliance with relevant EAC standards  − Compliance with exportation permit 
requirement s from the relevant 
veterinary authorities ; 
− Certification systems consistent with 
OIE guidelines  
 
Fish and fishery 
products  Risk analysis to assess disease risks 
associated with the importation of fish and 
fishery products  
 - Control of aquatic animal feed and feed 
ingredients , and use of veterinary drugs ; 
- Requirements for certification using OIE 
standards ;  
- Aquatic animal health measures  
Food safety  - Compliance with the requirements set 
out in relevant EAC standards ; member 
States ' standards ; or food and feed safety 
measures  
 
- In the absence of relevant EAC standards 
and member States ' standards, 
international food and feed safety 
standards , such as Codex Alimentarius, 
IPPC and OIE , must be used  − Compliance with EAC food and feed 
safety measures, standards, laws, 
regulations and other legal procedures  
 
Source:  EAC Harmonized Sanitary Measures and Procedures (Vols. I to IV), and information provided by the 
EAC Secretariat.  
3.73.   To date, the SPS Protocol has been ratified by Rwanda, Buru ndi, Kenya and Uganda.  The 
Phytosanitary (Plant Health) Measures Act was adopted in 2016. It aims at minimizing  phytosanitary 
risk, and facilitating the implementation of common and harmonized procedures in the areas of 
inspection and certification, moveme nts of plants and plant products, and import and export 
requirements. The related  SPS Bill was adopted by the Sectoral Council on Agriculture and Food 
Security in June 2017. Approval of the Bill by the Council of Ministers and  its enactment into law by 
EALA are awaiting full ratification by all EAC member  States.  
3.74.   A mutual recognition procedure for veterinary vaccines and pharmaceuticals was adopted in 
2015, together with a harmonized registration system.  
3.3.4   Competition policy and price controls  
3.75.   The EAC Competi tion Act  of 2006 aims at promoting fair trade, ensuring consumer welfare, 
and establishing the EAC Competition Authority. Its enabling regulations were adopted in 2010. The 
Act applies to all economic activities and sectors having cross -border effects. Domestic activities 
remain under the purview of national competition laws and institutions. The Act  came into force in 
2014, and was amended in 2015.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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3.76.   The EAC  Competition Authority has jurisdiction over all mergers and enforcement matters 
that have cross -border effects. The c ommissioners were sworn  in in November 2016 . 
3.3.5   Intellectual property rights  
3.77.   The EAC countries have different levels of intellectual property (IP) protection. Howev er, the 
CM Protocol calls on member countries to cooperate in the field of IP rights (IPRs).  
3.78.   The EAC Secretariat indicated that the region is seeking to undertake a comprehensive 
regional programme on IPR that would assist member States to implement the T RIPS Agreement in 
a manner that promotes the development priorities of the region in areas such as the promotion of 
copyright and cultural industries, traditional knowledge, geographical indications, and technology 
transfer.  
3.79.   All EAC countries are contracti ng parties to the World Intellectual Property Organization 
(WIPO). Participation in WIPO -administered treaties varies across countries (Table 3.9).  
Table 3.9 Year of entry into force of selected international IP treaties by EAC countries  
International IP treaty  Burundi  Kenya  Rwanda  Tanzania  Uganda  
Berne Convention for the Protection of Literary 
and Artistic Works  2016 1993 1984 1994 n.a. 
Paris Convention for the Protection of Industrial 
Property  1977 1965 1984 1963 1965 
Phonograms Convention  n.a. 1976 n.a. n.a. n.a. 
International Convention for the Protection of 
New Varieties of Plants  n.a. 1993 n.a. 2015 n.a. 
Patent Cooperation Treaty  n.a. 1994 2011 1999 1995 
Madrid Agreement concerning the International 
Registration of Marks  n.a. 1998 n.a. n.a. n.a. 
WIPO Copyright Treaty  2016 n.a. n.a. n.a. n.a. 
n.a. Not applicable.  
Source:  WIPO online information.  
3.80.   At the regional level, Kenya, Rwanda, Tanzania and Uganda are members of the African 
Regional Intellectual Property Organization (ARIPO), and Burundi has observer status.29 Patents and 
industrial designs are protected under the Harare Protocol and its implementing regulations, to which 
the four EAC countries are signatories. Under the Proto col, patents are protected for a period of 
20 years.  Uganda and Tanzania are also parties to the Banjul Protocol  (on the protection of 
trademarks).  Tanzania is the only EAC country to have signed the newly adopted  Arusha Protocol 
for the Protection of New Varieties of Plants.30 
3.81.   During the review period, the EAC countries have also pursued their efforts to maximize the 
benefits of the TRIPS flexibilities. A  Regional IP Protocol and Policy on the Utilization of Public 
Health -Related WTO -TRIPS Flexibilities was  adopted by the Council of Ministers in 2013 . This 
initiative aims at maximiz ing the benefits of TRIPS flexibilities, through the harmonization of EAC 
countries' policies on IPRs , and f acilitat ing the manufactur ing and import of essential medicines. A 
Technical Committee on TRIPS and Access to Medicines (TECTAM) is in place and is in charge of 
oversee ing the implementation of th e initiative.  
3.82.   Under the EAC's Regional Pharmaceutical Manufacturing Plan of Action, the EAC countries are 
promoting the domestic pr oduction of some essential medicines.31 The region has made progress in, 
                                                
29 ARIPO was established in 1976 under the Lusaka Agreement. Its objectives are, inter alia , to 
promot e, harmonize and develop IP systems in Africa.  
30 The Arusha Protocol aims at providing member countries with a regional plant protection system that 
takes into account the need to provide growers and farmers with improved varieties of plants. The Protocol will 
enter into force 12 months after its ratification by four countries.  
31 UNCTAD (2016), TRIPS Flexibilities and Anti -Counterfeit Legislation in Kenya and the East African 
Community: Implications for Generic Producers.  Viewed at: 
http://unctad.org/en/PublicationsLibrary/diaepcb2015d6_en.pdf . WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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inter alia , increasing investments in pharmaceutical production, strengthening the regulatory 
framework, and boosting research in pharmaceutical activities.  
3.83.   Counterfeiting and piracy of trademarks and copyrights  remain a serious challenge to IPR 
protection in the region. E fforts are being made at the regional level to fight counterfeit and pirated 
products. An EAC Policy on Anti -Counterfeiting, which resulted in the Draft EAC Anti -Counterfeit Bill 
(2013) being  developed. The Bill seeks to provide a legal framework for EAC members to prohibit 
trade in counterfeit goods.   WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture  
4.1.1   Overview  
4.1.  The agricultural sector is central to the EAC economy. It is the main source of livelihood for 
about 80% of the rural population. In 2015, its contribution to GDP ranged from around 25% in 
Uganda to around 42% in Burundi.  Agriculture is also a major source  of foreign exchange earnings , 
as well as of raw materials (more than 50%  of total raw materials)  for the manufacturing sector .1 
Major cash crops include tea, cotton, coffee, pyrethrum, sugar cane, sisal, horticultural crops, oil -
crops, cloves, tobacco, co conut and cashew nuts. EAC exports are dominated by agricultural 
products such as coffee, cut flowers, tea, tobacco, fish and vegetables.  
4.2.  Agriculture is essentially rain -fed and is dominated by s mallholder s. Persistent challenges to 
the sector include dec lining yields, drought, and the degradation of the ecosystem.  In addition, low 
expenditure on agricultural research, poor infrastructure, low adoption of improved agricultural 
technologies, and a poor policy environment continue to keep agriculture product ion far below its 
potential.   
4.1.2   Agricultural policy  
4.3.  At the EAC level, the Sectoral Council on Agriculture and Food Secur ity, a body made up of 
agriculture m inisters , is responsible for all issues related to the sector . The main objective of the 
EAC in the ag ricultural sector is to achieve food security and a greater rationalization of production. 
Under the EAC Treaty, member countries are called upon to increase their agricultural productivity 
and output to reduce hunger  and poverty, and to achieve food and n utrition security in the region.  
To this end, the EAC Agriculture and Rural Development Policy (EAC -ARDP) constitutes the main 
framework for interventions in the sector. It  provides for detailed actions to be implemented over 
the period 2005 -30.  
4.4.  One of th e key instruments developed to operationalize the EAC -ARDP was the Food Security 
Action Plan (FSAP), adopted by the Summit in 2011. FSAP 2011 -15 served as an instrument to guide 
the coordination and implementation of EAC member States' joint regional food security 
programming activities. Key policies and strategies developed in this context include the EAC Food 
and Nutrition Security Policy; the EAC Food and Nutrition Security Strategy and Action Plan; the EAC 
Regional Strategy on Aflatoxin Prevention and C ontrol; the Livestock Policy to enhance growth in 
livestock productivity and competitiveness (Section 4.1.3); the Sanitary and Phytosanitary Protocol; 
the EAC Fisheries and Aquaculture Strategy; and a total of 23 staple food standards.  
4.5.  In addition, the EAC  has established two online systems (the regional Food Balance Sheet, and 
the Animal Resources Data Base ), to facilitate information exchange , and to support 
evidenced -based decision -making about food stock availability and strategic investments in the 
livestock and fisheries sub -sectors.   
4.6.  A regional collaboration and harmonization framework has  been established in the area of farm 
inputs, with a view to improving farmers' access to a wide variety of high -quality fertilizers, seeds 
and pesticides at affordable prices. The EAC has also developed and adopted a mutual recognition 
procedure for the r egistration of vaccines for the management of animal diseases.   
4.7.  The East African region is a hotspot for aflatoxins, and the control of aflatoxin contamination 
is a key intervention area in the implementation of the EAC Food Security Action Plan (EAC -FSP). A 
regional project on aflatoxin was launched in March 2014 . A region -wide strategy for th e prevention 
and control of aflatoxin was adopted in 2018 . 
4.8.  The harmonization of the regulatory framework and procedures for fertilizers is another priority 
area unde r the EAC -FSP. According to the EAC Secretariat , a framework to guide the harmonization 
                                                
1 EAC online information. Viewed at: https://www.eac.int/agriculture/constraints -and-challenges/63 -
sector/agriculture -food-security [6 February 2018].  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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of EAC fertilizer instruments has been a dopted. The process of developing the related  policy and 
legislation will be initiated in 2018.  
4.9.  Other agricultural programmes i mplemented during the review period include: the East African 
Agro-enterprises and Agro -industries Development Program, which aims at increasing the capacity 
and competitiveness of these businesses; and the Planning for Resilience in East Africa through 
Policy, Adaptation and Economic Development programme.  
4.10.   The EAC countries are also engaged in the Comprehensive Africa Agriculture Development 
Programme (CAADP) , an initiative by the AU in 2003 to eliminate hunger and reduce poverty through 
agriculture. Unde r the Programme, African governments committed to rais e agricultural productivity 
by at least 6% per year until 2015, and to increase the share of the national budget allocated to the 
agricultural sector  to at least 10% . The EAC countries  signed  a CAADP Compact in June 2017  that 
had the following priorities:  to increase regional trade and enhance the functioning of national and 
regional markets; to expand local agro -industry and value chain development; to increas e the  
resilience of livelihoods and improve  risk management in the agricultural sector; and to improve the 
management of natural resources.  The related EAC Regional Agriculture Investment Plan (RAIP) was 
completed in January 2018.  
4.11.   In gener al, agricultural products enjoy  a higher protection under the CET, with an average 
tariff of 20.7% , compared to an overall average of 12.9%  (Table 3.2 ). Some agricultural products 
(Table 3.1)  are on a "sensitive list", and are subject to even higher import duties.  
4.12.   Under the EAC duty exemption regime, a number of agricultural inputs can be imported 
duty-free. These include: seeds approved as fit for sowing; fertilizers approved by the relevant 
national authorities; horticulture, agriculture and floriculture inputs; and inputs for use in the 
manufacture of  agricultural equipment.2 
4.1.3   Livestock  
4.13.   The EAC's livestock population in 2015 was  estimated at 57.2 million ca ttle, 62.3 million goats, 
29 million sheep, and 7.5 million pigs . The contribution of livestock resources to agricultural GDP is 
estimated to range f rom 20% to 50%.3 
4.14.   The EAC Livestock Policy was adopted in 2016. It aims at reinvigorating the sector, and rests 
on four pillars: securing access to basic production inputs; building resilience to risks and shocks; 
enhancing growth in livestock productivity and competitiveness ; and sustaining growth in livestock 
productivity and competitiveness.  
4.15.   The EAC countries have adopted a strategy for the prevention and control of transboundary 
animal and zoonotic diseases, with a view to managing and preventing disease  outbreaks in the 
region. A regional emergency preparedness and response plan for the inhabitants of arid and 
semi-arid areas in the EAC region has also been developed.  
4.16.   In addition, the Reinforcing Veterinary Governance Project in the EAC aims to strength en 
regional institutions to stimulate a more conducive environment for public and private investments 
in the livestock sector.  
4.1.4   Fisheries  
4.17.   The EAC countries share the Lake Victoria basin, one of the largest transboundary water 
resources in Africa.4 Kenya, Ug anda and Tanzania share Lake Victoria. In addition to its ecological 
role, about 35 million people depend , directly or indirectly , on the lake's resources.5 With annual 
                                                
2 EAC Customs Management Act, Fifth Schedule, Part B.  
3 EAC (2017), East African Community Facts and Fig ures – 2016 Report.  EAC Secretariat, Arusha, 
Tanzania. November.  
4 The basin's area of about 194,200 km2 is shared among the five countries: Tanzania (44%), Kenya 
(22%), Uganda (16%), Rwanda (11%), and Burundi (7%).  
5 AU-IBAR (2016), Fisheries Management a nd Development Processes in Lake Victoria - Enhancing 
Regional Fisheries Management Plan.  AU-IBAR Reports.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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production estimated at about 1 million tonnes, fisheries provide direct employment to about 
800,000 people.  
4.18.   The Lake Victoria Fisheries Organization (LVFO) is responsible for the management of the 
lake's fisheries resources . It was established in 1994 by a convention between Kenya, Tanzania and 
Uganda6, and has become a specialized institu tion of the EAC. Its objectives are to foster cooperation 
among the EAC countries, to harmonize national measures for the sustainable utilization of the 
resources, and to develop and adopt conservation and management measures. Fisheries 
management is under taken through rounds of five -year fisheries management plans.  
4.19.   Illegal fishing and the lack of regulation are cited as the main challenges to sustainable 
fisheries in Lake Victoria. In a decade, revenues from fish exports have declined by about 30%, to 
USD 840 million in 2015. In 2009, t he Council of Ministers launched "Operation Save the Nile Perch ", 
an initiative aiming at recover ing some species ' population s.  
4.2  Mining and Energy  
4.2.1   Mining  
4.20.   The EAC region detains a great potential of minerals , such as oil, natural gas, gold, and 
titanium.  
4.21.   The EAC Treaty calls for the harmonization of countries' mining regulations, in order  to ensure 
environmentally -friendly and sound mining practices .7 Harmonization is a key component of the 
EAC's development s trategy for the period 2011 –16. The strategy calls upon member States to take 
measures to promote the development of strategic regional industries/value chains, including 
extractive and mineral processing, petrochemical and gas processing, and iron and ste el.  
4.22.   At the continental level, countries are seeking to align their mineral and mining policies with 
the Africa Mining Vision.8 To this end, an EAC Mining Bill was tabled before the EALA in 2016; the 
process is still ongoing.  
4.2.2   Energy  
4.23.   The EAC countries are e ndowed with various energy resources, including wind, solar, and 
geothermal  (see Annexes 1 -5).  
4.24.   As at end -2014, the EAC countries (excluding South Sudan) had a combined installed capacity 
of 2,203  MW for hydroelectricity, and 1,619  MW for thermal electrici ty.9 This installed capacity is 
located essentially in Kenya, Uganda and Tanzania. The electricity generated in 2014 stood at 
9,352  GWH from hydro power plants and 4,222  GWH from thermal sources. There is some 
non-negligible generation of geothermal electr icity in Kenya, and natural gas in Tanzania. Trade in 
electricity takes place among the EAC countries at a noticeable level, with Kenya and Uganda being 
large importers and exporters, and the other countries being essentially importers.  
4.25.   In the energy secto r, the EAC countries are encouraged to "adopt policies and mechanisms 
to promote efficient exploitation, development, joint research and utilisation of the various energy 
resources available within the region".10 To this end, the countries are implementing joint initiatives, 
including:  
a. The Eastern Africa Power Pool (EAPP), an initiative aimed at fostering the interconnectivity 
of power systems in Eastern Africa, through the d evelopment of the Power Master Plan, 
and of market rules and operational guidelines11; 
                                                
6 Convention for the Establishment of the Lake Victoria Fisheries Organization.  
7 EAC Treaty, Article 114.  
8 Africa Mining Vision was adopted by Head s of State at the February 2009 AU summit.  
9 EAC (2017), EAC Facts and Figures, 2016.   
10 EAC Treaty, Article 101.  
11 In addition to EAC countries, other members of the EAPP are: Democratic Republic of the Congo, 
Egypt, Ethiopia, Libya, and Sudan.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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b. The East Africa Power Master Plan, which aims at achieving economies of scale through 
electricity interconnections and intra -EAC trade; and  
c. Cross -border electrification programmes through which border towns are electrified using 
the nearest and most econ omical grid.  
4.26.   An Energy Security Policy  Framework was adopted in 2017. It aims at providing guidance to 
the countries in the management and mitigation of challenges in the energy sector.  
4.27.   A number of policies are in place for the promotion of renewable energ y. For instance, 
specialized solar equipment and accessories are exempted from the payment of import duties.  
4.28.   Since 2003, the East African Petroleum Conference and Exhibition has provided a biennial 
forum for promoting investment in the region's oil and gas  sector; a forum for discussing policy, 
including the legal framework, in the energy sector; and an opportunity for stakeholders to interact 
with decision -makers in the region.  
4.3  Manufacturing  
4.29.   The contribution of manufacturing to GDP in the EAC  is estimated at 8.9%.12 The sector is 
composed essentially of micro, small and medium enterprises (MSMEs) characterized by limited 
value addition, and is highly concentrated in agro -processing activities. The aim of the EAC is to 
promote self -sustaining an d balanced industrial growth, improve the competitiveness of the 
industrial sector, and encourage the development of local entrepreneurs.13 In line with these goals, 
a 20-year industrialization policy and strategy was adopted in November 2011. The overall o bjective 
of the East African Industr ialization Strategy (2012 -2032) is to enhance production and productivity , 
and accelerate the structural transformation of its economies.  These are to be achieved through, 
inter alia , diversifying the manufacturing base and raising local value -added content of exports to at 
least 40% by 2032;  strengthening institutional frameworks;  expanding trade in manufacturing ; and 
transforming MSMEs  into viable and sustainable business entities.   
4.30.   Several actions have been undertaken in the framework of the Strategy. During the review 
period, EAC countries implemented an Industrial Upgrading and Modernization Programme (IUMP) 
for small and medium -sized enterprises (SMEs). The Programme has four components: reform of 
the institutional f ramework, the business environment and financial instruments; strengthening  of 
the capacities and capabilities of technical support institutions; support of SME development, 
investment promotion , and improv ement of  competitiveness; and facilitati on of the transfer of 
industrial technologies and best innovation practices.  The EAC has also developed frameworks to 
promote food processing, pharmaceutical production, and value addition in the mineral resources 
industry.  
4.31.   A number of policy tools are in place to p romote the manufacturing sector. Under the CET, 
intermediate goods attract , in principle , the 10% rate. Duty remission and export promotion schemes  
allow manufacturers to import their inputs tax free under certain conditions (S ection  3.2.3). The 
2015 revision of the EAC rules of origin lowered the threshold of local content required from 35% to 
30%, thus allowing more manufactured goods to benefit from the preferential treatment.   
4.32.   Operational since July 2015, the East African Science and Technology Com mission was 
established, inter alia , to facilitate technological innovation and the commercialization of research 
and development (R&D) findings.  
                                                
12 EAC (2017) , EAC Industrial Competitiveness Report 2017: Harnessing the EAC Market to Drive 
Industrial Competitiveness and Growth.  Viewed at: http://eabc -online.com/uploads/EAC_Industrial 
_Competitiveness_Report.pdf . 
13 EAC Treaty, Article 79.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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4.4  Services  
4.33.   EAC member countries individually undertook various horizontal and sector -specific 
commitments under  the GATS (see Annexes 1 -5).14  
4.34.   In their mutual services liberalization plans, the EAC countries adopted a positive list 
approach, scheduling only those subsectors they were willing to open up. They committed to 
liberalizing these subsectors across all mode s of supply by end -2015, with the number of subsectors 
ranging from 59 in Tanzania to 101 in Rwanda (Table 4.1). They also committed to refraining from 
introducing any new restrictions on the provision of services.  
Table 4.1 Number of services subsectors committed by EAC members  
Services  
(number of subsectors)a Burundi  Kenya  Rwanda  Tanzania  Uganda  
Business (46)  31 15 32 7 33 
Communication (24)  6 17 21 17 21 
Distribution (5)  3 3 4 2 4 
Education (5)  4 4 5 4 5 
Finance (17)  9 12 15 16 11 
Tourism and travel (4)  4 3 4 4 4 
Transport (35)  17 9 20 9 20 
Total (136)  74 63 101 59 98 
a Based on the Services Sectoral Classification List (W/120).  
Source:  EAC Common Market Protocol, Annex V.  
4.4.1   Transport  
4.4.1.1   Road and rail transport  
4.35.   EAC countries had a combined road network of 18,317 km in 2008, of which 91% was paved, 
with ten corridors totalling 15,800  km. The corridors are: the Northern Corridor (1,800  km); the 
Central Corridor (3,100  km); the Dar es Salaam Corridor (1,10 0 km); the Namanga Corridor 
(1,800  km); the Sumbawanga Corridor (1,300  km); the Sirari Corridor (1,500  km); the Coastal 
Corridor (1,500  km); the Mtwara Corridor (800  km); the Arusha Corridor (500  km); the Gulu 
Corridor (600  km); and the Lamu Port, South Su dan, Ethiopia Transport (LAPSSET - Lamu -Isiolo -
Lodwar -Nadapal) Corridor, 1,700  km). 
4.36.   The EAC countries ha ve a railway network of about 7, 363 km. In addition, important regional -
scale railway projects are ongoing. Along the Central Corridor, there is a 1,219-km railway project 
to connect the port of Dar es Salaam , via Isaka , to Mwanza on Lake Victoria. The railway project on 
the Northern Corridor (1 ,096 km) started in December 2014. On the LAPSSET corridor, the railway 
network is yet to be developed.  
4.37.   The EAC countries have also taken steps to harmonize their vehicle load limits, through the 
adoption of the EAC Vehicle Load Control Act, 2013, which came into force in 2016. U nder the Act, 
vehicles with a weight of 3.5  tonnes or more are to be weighed at every we ighing station on the EAC 
road network.   
4.38.   Adopted in 2009, the East African Railway Master Plan aims to restor e some of the existing 
railway lines serving Tanzania, Kenya and Uganda, and extend them to Rwanda and Burundi. The 
USD 29 billion project is to be  run by the East Africa Railway Authority. However, the Authority has 
not yet been established.  
4.4.1.2   Water transport  
4.39.   The EAC countries plan to promote the coordination and harmonization of their maritime 
transport policies, and establish a common maritime trans port policy.  According to the authorities, 
                                                
14 For more details on country -specific commitment under GATS, see the I -TIP Services  database. 
Viewed at: http://i -tip.wto.org/services/default.aspx .  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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the EAC does not yet have a common regional maritime transport policy , due to resource constraints. 
However , member  States have harmonized regulatory frameworks for transport on Lake Victoria , 
through the Lake Vic toria Transport Act, 2007.  
4.4.1.3   Air transport  
4.40.   Under the EAC Treaty, member countries are to harmonize their policies on civil aviation, and 
facilitate the establishment of joint air services and the efficient use of aircraft. The Civil Aviation 
Safety and Security Oversight Agency  was established in 2009, with the mandate of ensuring civil 
aviation safety and security oversight, and the harmonization of rules and regulations. Its main 
functions are: the harmonization of operating regulations to ensure that they meet international 
standards and recommended practices; the development of standardized procedures for licensing, 
approving, certifying and supervising civil aviation activities; and the provision of assistance to 
countries.  
4.41.   During the review period,  the Agency undertook several activities, mainly providing technical 
support to member States in the preparation of ICAO Safety Audits  and in establishing and 
maintaining State safety programme s. It also carried out activities related to the operation of t he 
Centre for Aviation Medicine . In addition, it developed documents to guide EAC members on the 
development of regulations in technical areas such as aircraft accident and incident investigation; 
safety management; safety assessment of foreign aircraft; c abin safety; and dangerous goods.  
4.42.   The EAC countries are signatories to the 1988 Yamoussoukro Declaration, which sets out the 
principles for air services liberalization. They also endorsed the 1999 Yamoussoukro Decision, which 
allows the multilateral exchan ge of up to the fifth freedom of the air between the parties to the 
Decision using a simple notification procedure. Kenya and Rwanda are among the 23 countries that 
launched the Single African Air Transport Market in January 2018.  
4.4.2   Tourism  
4.43.   The EAC region ho sts several natur al attractions. Kenya and Tanzania have a coastal tourism 
segment , while the landlocked countries have beautiful nature and wildlife.  Tourism contributes 
significantly to the economies of Tanzania, Kenya, and Uganda (see Annexes 1 -5).  
4.44.   Under the EAC Treaty, countries are to coordinate their tourism policies. This includes: 
establishing a common code of conduct for tour and travel operators, standardizing hotel 
classifications, and harmonizing the professional standards of agents in the indu stry. Common 
criteria for the classification of tourist accommodation establishments and restaurants have been  
developed by Kenya, Rwanda, Uganda and Tanzania . 
4.45.   The EAC's Sectoral Committee on Tourism and Wildlife Management is the main institution 
for cooperation in tourism  among the member countries . Established in 2012, the East Africa Tourism 
Platform is the private sector body for tourism. Its goal is to promote the interest and participation 
of the private sector in the E AC integration process.  
4.46.   During the review period, the EAC countries took a number of initiatives to strengthen their 
tourism subsector. A single tourist visa was introduced in 2014 on a pilot basis between Kenya, 
Uganda, and Rwanda. Under the initiative, tourists can choose between a single country visa or an 
EAC tourist visa. With the latter, they are allowed to move freely between the three countries for a 
period of up to 90 days.  
4.47.   The EAC Tourism and Wildlife Management Bill has not  yet been enacted . It seeks to establish 
a cooperative framework for the management of tourism and wildlife resources in the region. It 
provides for the establishment of an East African Tourism and Wildlife Management Commission to 
supervise, coordinate and manage all issues related to the promotion and d evelopment of the 
tourism and wildlife industry in the Community.15 
                                                
15 Tourism and Wildlife Management Bill, 2008.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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4.48.   Under the EAC Customs Management Act, hotel equipment imported by licensed 
establishments is exempted from import duties.  
4.4.3   Professional services  
4.49.   The free movement of labo ur is one of the key  pillars of the EAC common market. The CM 
Protocol contains provisions that deal with trade in services, the freedom of movement of capital, 
the freedom of movement of labour, the freedom of movement of persons , and the right of 
establishment and residence .  
4.50.   In practice, the free movement of workers within the EAC is restricted to selected 
highly -skilled workers, and craft and related trade workers. Free movement is further hindered by 
issues relating to, inter alia , the mutual recognition of professional qualifications and experience, 
procedures for obtaining work permits, and the inconsistent  quality of training institutions.16 The 
EAC member States are currently amending their respective national policies, including laws and 
regulations, to conform to the CM Protocol.  
4.51.   A Cross -Border Trade in Professional Services Bill was introduced to the  EAC Parliament in 
2016, and the process wa s still ongoing as at 30 September 2018.  
4.52.   The right of establishment is limited to companies and firms established in a member country , 
and self-employed persons (and their family).17 A work permit is required to undertake an economic 
activity. Work permit f ees vary from country to country.  
 
                                                
16 Basnett, Y. (2013), Labour Mobility in East Africa: An Analysis of the East African Community's 
Common Market and the Free Movement of Workers . Development Policy Review, Vol. 31, Issue 2, 
pp. 131-148.  
17 East African Community Common Market (Right of Est ablishment) Regulations.  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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5  APPENDIX TABLES  
Table A1. 1 EAC trade, 2011 -17 
(USD million and %)   
2011  2012  2013  2014  2015  2016  2017  
 Total trade  
EAC 47,457  51,558  52,241  55,670  54,206  43,347  46,696  
Intra (%)  9.8 10.4 11.5 10.2 9.4 9.9 9.7 
Extra (%)  90.2 89.6 88.5 89.8 90.6 90.1 90.3 
Burundi  1,325  1,043  862  958  856  751  867 
Intra (%)  22.4  18.4  23.7  20.6  20.9  24.3  17.3 
Extra (%)  77.6  81.6  76.3  79.4  79.1  75.7  82.7 
Kenya  20,418  22,388  22,243  24,520  21,987  19,800  22,438  
Intra (%)   9.0   8.8   8.0   7.5   7.7   7.7  7.6 
Extra (%)   91.0   91.2   92.0   92.5   92.3   92.3  92.4 
Rwanda   1,859   2,277   2,449   2,658   2,593   2,619  2,819  
Intra (%)   24.7   25.3   22.0   31.2   21.2   22.3  19.7 
Extra (%)   75.3   74.7   78.0   68.8   78.8   77.7  80.3 
Tanzania   16,064   17,449   18,462   19,199   20,976   12,865  12,075  
Intra (%)   5.3   7.9   12.0   7.6   5.9   6.0  6.1 
Extra (%)   94.7   92.1   88.0   92.4   94.1   94.0  93.9 
Uganda   7,790   8,402   8,225   8,335   7,795   7,312  8,497  
Intra (%)   15.4   14.6   15.1   15.9   18.0   17.0  16.3 
Extra (%)   84.6   85.4   84.9   84.1   82.0   83.0  83.7 
 Imports  
EAC 34,045  36,625  37,252  39,575  39,091  29,447  32,611  
Intra (%) 5.9 6.2 5.2 6.1 4.8 5.9 5.9 
Extra (%)  94.1 93.8 94.8 93.9 95.2 94.1 94.1 
Burundi  1,128  798 646 802 730 628 725 
Intra (%)  23.8 19.9 26.6 21.0 20.7 25.0 19.1 
Extra (%)  76.2 80.1 73.4 79.0 79.3 75.0 80.9 
Kenya  14,646  16,262  16,410  18,406  16,068  14,105  16,690  
Intra (%)  2.1 2.2 2.0 2.3 2.5 2.3 3.5 
Extra (%)  97.9 97.8 98.0 97.7 97.5 97.7 96.5 
Rwanda  1,456  1,806  1,853  2,004  1,980  1,970  1,839  
Intra (%)  26.0 24.3 22.6 23.7 21.0 21.6 20.3 
Extra (%)  74.0 75.7 77.4 76.3 79.0 78.4 79.7 
Tanzania  11,184  11,716  12,525  12,289   14,784   7,914  7,761  
Intra (%)  3.4 5.8 3.2 5.6  1.9   3.8  3.4 
Extra (%)  96.6 94.2 96.8 94.4  98.1   96.2  96.6 
Uganda  5,631  6,044  5,818  6,074  5,528  4,829  5,596  
Intra (%)  12.3 10.7 10.6 11.3 11.4 11.0 10.0 
Extra (%)  87.7 89.3 89.4 88.7 88.6 89.0 90.0 
 Exportsa 
EAC 13,412  14,933  14,990  16,094  15,115  13,900  14,085  
Intra (%)  19.6 20.5 27.0 20.1 21.1 18.5 18.5 
Extra (%)  80.4 79.5 73.0 79.9 78.9 81.5 81.5 
Burundi  198 245 216 156 126 123 142 
Intra (%)  14.4 13.5 15.0 18.6 21.8 20.5 7.7 
Extra (%)  85.6 86.5 85.0 81.4 78.2 79.5 92.3 
Kenya  5,772  6,126  5,832  6,114  5,918  5,695  5,747  
Intra (%)  26.8 26.1 24.9 23.5 21.8 21.1 19.3 
Extra (%)  73.2 73.9 75.1 76.5 78.2 78.9 80.7 
Rwanda  403 471 596 653 612 648 980 
Intra (%)  19.8 29.4 20.4 54.0 21.9 24.3 18.5 
Extra (%)  80.2 70.6 79.6 46.0 78.1 75.7 81.5 
Tanzania  4,880  5,733  5,937  6,910   6,192   4,951  4,314  
Intra (%)  9.7 12.3 30.6 11.3  15.5   9.5  10.9 
Extra (%)  90.3 87.7 69.4 88.7  84.5   90.5  89.1 
Uganda  2,159  2,357  2,408  2,262  2,267  2,482  2,901  
Intra (%)  23.3 24.6 26.1 28.4 34.0 28.7 28.5 
Extra (%)  76.7 75.4 73.9 71.6 66.0 71.3 71.5 
a Including re -exports.  
Source : WTO Secretariat , based on data provided by the authorities; and UNSD Comtrade.  
  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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Table A1. 2 Extra -EAC merchandise imports by group of products, 2011 -17 
(USD billion and %)   
2011  2012  2013  2014  2015  2016  2017  
Total imports (US D billion)  32.0  34.3  35.3  37.1  37.2  27.7  30.7 
 (% of total)   
Total primary products  41.0 40.1 40.3 36.5 40.1 29.8 35.0 
Agriculture  12.2 11.6 10.7 11.0 9.5 12.8 15.7 
Food 11.2 10.5 9.6 9.8 8.3 11.2 14.4 
Agricultural raw material  1.0 1.2 1.1 1.2 1.2 1.6 1.3 
Mining  28.8 28.5 29.6 25.5 30.7 17.0 19.3 
Ores and other minerals  0.3 0.3 0.3 0.3 0.3 0.4 0.3 
Non-ferrous metals  0.8 0.7 0.7 0.8 0.7 0.8 0.8 
Fuels 27.8 27.5 28.6 24.4 29.7 15.8 18.2 
Manufactures  56.0 58.9 59.4 63.0 59.0 69.3 64.8 
Iron and steel  4.4 4.2 5.6 4.4 4.2 4.5 4.5 
Chemicals  12.2 12.0 13.2 13.7 13.4 16.3 16.0 
5429 - Medicaments, n.e.s.  2.0 2.0 2.2 2.8 2.9 3.3 3.2 
5711 - Polyethylene  1.2 1.0 1.1 1.2 1.0 1.3 1.1 
5629 - Fertilizers, n.e.s.  0.8 0.7 1.0 0.7 0.9 1.0 1.0 
Other semi -manufactures  6.6 7.2 7.1 7.7 6.9 9.2 7.4 
Machinery and transport equipment  27.2 29.6 26.8 30.7 28.3 31.0 29.1 
Non-electrical machinery  9.6 10.1 8.3 10.0 8.8 10.5 10.3 
Electrical machines  7.9 8.3 7.5 7.1 7.9 10.0 8.3 
Transport equipment  9.8 11.2 10.9 13.5 11.6 10.5 10.5 
Textiles  1.6 1.5 1.8 1.6 1.7 2.3 2.1 
Clothing  0.5 0.5 0.6 0.6 0.5 0.7 0.9 
Other consumer goods  3.5 3.8 4.2 4.3 4.1 5.2 4.9 
Other  3.0 1.0 0.3 0.5 0.8 0.9 0.3 
Note:  SITC Rev.3. for product groups.  
Source : WTO Secretariat , based on data provided by the authorities ; and the UNSD Comtrade database.  
  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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Table A1. 3 Extra -EAC merchandise exports by group of products, including re -exports 
2011 -17 
(USD billion and %)   
2011  2012  2013  2014  2015  2016  2017  
Total exports (US D billion)  10.8  11.9  10.9  12.9  11.9  11.3  11.5 
 (% of total)  
Total primary products  61.9 58.6 58.9 64.9 69.0 60.5 66.0 
Agriculture  47.4 47.1 50.7 50.9 54.8 51.0 55.6 
Food 38.6 38.0 42.2 43.5 47.7 42.9 47.0 
0741 - Tea, whether or not flavoured  11.0 10.5 11.6 8.5 10.8 11.2 13.0 
0711 - Coffee, not roasted  8.4 7.5 7.3 6.5 7.2 7.3 8.7 
0577 - Edible nuts, fresh or dried  1.4 1.7 2.0 3.5 2.5 3.7 5.5 
1212 - Tobacco, wholly or partly 
 stemmed/stripped  1.6 2.1 1.6 2.1 2.2 3.7 2.0 
0542 - Leguminous vegetables  0.8 1.0 1.4 1.8 2.7 2.2 1.2 
0545 - Other fresh or chilled 
 vegetables  2.0 1.8 1.8 1.5 1.5 1.3 1.2 
Agricultural raw material  8.8 9.1 8.5 7.3 7.0 8.1 8.6 
2927 - Cut flowers and foliage  4.3 4.1 4.5 4.4 4.1 4.6 4.8 
Mining  14.4 11.5 8.2 14.0 14.3 9.6 10.4 
Ores and other minerals  12.0 8.4 4.7 7.7 7.1 5.4 5.7 
Non-ferrous metals  0.4 0.3 0.2 0.2 0.2 0.2 0.2 
Fuels 2.1 2.7 3.2 6.1 7.0 3.9 4.5 
Manufactures  19.7 21.1 21.7 24.2 17.8 19.2 16.3 
Iron and steel  1.5 1.4 1.7 1.1 1.0 0.9 0.9 
Chemicals  4.0 3.8 3.6 3.3 3.0 3.0 3.4 
Other semi -manufactures  3.7 4.2 4.8 3.6 3.9 5.2 3.5 
Machinery and transport equipment  4.9 6.2 5.4 10.0 3.4 3.7 2.2 
Non-electrical machinery  1.4 2.2 2.0 1.5 1.3 1.2 0.7 
Electrical machines  2.2 2.1 1.2 0.7 0.8 1.2 0.4 
Transport equipment  1.3 1.9 2.2 7.8 1.3 1.3 1.1 
Textiles  1.0 1.0 1.0 0.9 1.0 0.8 0.9 
Clothing  2.3 2.0 2.6 2.7 2.7 3.1 3.3 
Other consumer goods  2.4 2.4 2.7 2.5 2.8 2.6 2.1 
Other  18.5 20.3 19.4 10.9 13.1 20.3 17.7 
9710 - Gold, non -monetary  16.8 18.1 16.1 10.6 12.8 18.6 17.6 
Note:  SITC Rev.3. for product groups.  
Source:  WTO Secretariat , based on data provided by the authorities ; and the UNSD Comtrade database.  
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Table A3. 1 "Sensitive" products subject to high tariffs, 2017  
  HS Code  Description  2017 CET rate    
Milk and cream,  not concentrated or containing added sugar or 
other sweetening matter   
1 04011000  - Of a fat content, by weight, not exceeding 1%  60.0 
2 04012000  - Of a fat content, by weight, exceeding 1% but not exceeding 6%  60.0 
3 04014000  - Of a fat content, by weight, exceeding 6% but not exceeding 
10% 60.0 
4 04015000  - Of a fat content, by weight, exceeding 10%  60.0   
Milk and cream, concentrated or containing added sugar or other 
sweetening matter   
5 04021000  - In powder, granules or other solid forms, of a  fat content, by 
weight, not exceeding 1.5%  60.0 
6 04022100  - - Not containing added sugar or other sweetening matter  60.0 
7 04022900  - - Other  60.0 
8 04029100  - - Not containing added sugar or other sweetening matter  60.0 
9 04029900  - - Other  60.0 
  Buttermilk, curdled milk and cream, yogurt, kephir and other 
fermented or acidified milk and cream   
10 04031000  - Yogurt  60.0 
11 04039000  - Other  60.0   
Cheese and curd   
12 04061000  - Fresh (unripened or uncured) cheese, including whey cheese, 
and curd  60.0 
13 04062000  - Grated or powdered cheese, of all kinds  60.0 
14 04063000  - Processed cheese, not grated or powdered  60.0 
15 04064000  - Blue-veined cheese and other cheese containing veins produced 
by penicillium roqueforti  60.0 
16 04069000  - Other cheese  60.0   
Wheat and meslin.   
17 10019910  --- Hard wheat 35.0 
18 10019990  --- Other  35.0 
19 10059000  - Other  50.0   
Rice  
20 10061000  - Rice in the husk (paddy or rough)  75% or 
USD 345/MTa 
21 10062000  - Husked (brown) rice  75% or 
USD 345/MTa 
22 10063000  - Semi-milled or wholly milled rice, whether or not polished or 
glazed  75% or 
USD 345/MTa 
23 10064000  - Broken rice  75% or 
USD 345/MTa 
24 11010000  Wheat or meslin flour  50.0 
25 11022000  - Maize (corn) flour  50.0   
Cane or beet sugar and chemically pure sucrose, in solid form   
  
- - Beet sugar   
26 17011210  --- Jaggery  100% or 
USD 460/MTa  
27 17011290  --- Other  100% or 
USD 460/MTa  
  
- - Cane sugar , as specified    
28 17011310  --- Jaggery  100% or 
USD 460/MTa  
29 17011390  --- Other  100% or 
USD 460/MTa  
30 17011410  --- Jaggery  100% or 
USD 460/MTa  
31 17011490  --- Other  100% or 
USD 460/MTa    
Cane or beet sugar and chemically pure sucrose, in solid form   
32 17019100  - - Containing added flavouring or colouring matter  100% or 
USD 460/MTa 
33 17019910  --- Sugar for industrial use  100% or 
USD 460/MTa 
34 17019990  --- Other  100% or 
USD 460/MTa  WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
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  HS Code  Description  2017 CET rate    
- Cigarettes containing tobacco   
35 24022010  ---Of length not exceeding 72 mm including the filter tip  35.0 
36 24022090  --- Other  35.0   
Other manufactured tobacco and manufactured tobacco 
substitutes   
37 24031100  - - Water pipe tobacco specified (as specified)  35.0 
38 24031900  - - Other  35.0   
Woven fabrics of cotton   
39 52085110  --- Khanga, Kikoi and Kitenge  50.0 
40 52085210  --- Khanga, Kikoi and Kitenge  50.0 
41 52095110  --- Khanga, Kikoi and Kitenge  50.0 
42 52105110  --- Khanga, Kikoi and Kitenge  50.0 
43 52115110  --- Khanga, Kikoi and Kitenge  50.0   
Other woven fabrics of cotton   
44 52121510  --- Khanga, Kikoi and Kitenge  50.0 
45 52122510  --- Khanga, Kikoi and Kitenge  50.0   
Woven fabrics of synthetic staple fibres   
46 55134110  --- Khanga, Kikoi and Kitenge  50.0 
47 55144110  --- Khanga, Kikoi and Kitenge  50.0   
Track suits, ski suits and swimwear; other garments, women's or  
girls'  
48 62114210  - - Of cotton; --- Khanga, Kikoi and Kitenge  50.0 
49 62114310  - - Of man -made fibres; --- Khanga, Kikoi and Kitenge  50.0 
50 62114910  - - Of other textile materials; --- Khanga, Kikoi and Kitenge  50.0   
Bed linen, table linen, toilet linen and kitchen linen   
51 63022100  - - Of cotton  50.0 
52 63023100  - - Of cotton  50.0 
53 63025100  - - Of cotton  50.0 
54 63029100  - - Of cotton  50.0   
Worn clothing and other worn articles   
55 63090010  --- Worn items of clothing  35% or 
USD 0.40/kga  
56 63090020  --- Worn items of footwear  35% or 
USD 0.40/kga  
57 63090090  --- Other worn items  35% or 
USD 0.40/kga    
Primary cells and primary batteries   
58 85061000  - Manganese dioxide  35.0 
59 85063000  - Mercuric oxide  35.0 
60 85064000  - Silver oxide  35.0 
61 85065000  - Lithium  35.0 
62 85066000  - Air-zinc 35.0 
63 85068000  - Other primary cells and primary batteries  35.0 
a Whichever is the highest.  
Source:  EAC Secretariat, CET 2017 version.  
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Table A3. 2 Non-ad valorem  tariffs, 2017  
HS code  Description  2017 tariff  2011 tariff  
Rice 
10061000  - Rice in the husk (paddy or rough)  75% or USD 345/Mta, b 75% or USD 200/MTa, b 
10062000  - Husked (brown) rice  75% or USD 345/Mta, b 75% or USD 200/MTa, b 
10063000  - Semi-milled or wholly milled rice, 
whether or not polished or glazed  75% or USD 345/Mta, b 75% or USD 200/MTa, b 
10064000  - Broken rice  75% or USD 345/Mta, b 75% or USD 200/MTa, b 
Cane or beet sugar and chemically pure sucrose, in solid form  
17011210  --- Jaggery  100% or USD 460/Mta,b 35a, b 
17011290  --- Other  100% or USD 460/Mta,b 100% or USD 200/MTa, b 
17011310  --- Jaggery  100% or USD 460/Mta,b 35a, b 
17011390  --- Other  100% or USD 460/Mta,b 100% or USD 200/MTa, b 
17011410  --- Jaggery  100% or USD 460/Mta,b 35a, b 
17011490  --- Other  100% or USD 460/Mta,b 100% or USD 200/MTa, b 
17019100  - - Containing added flavouring or 
colouring matter  100% or USD 460/Mta,b 100% or USD 200/MTa, b 
17019910  --- Sugar for industrial use  100% or USD 460/Mta,b 100% or USD 200/MTa, b 
17019990  --- Other  100% or USD 460/Mta,b 100% or USD 200/MTa, b 
Worn clothing and other worn articles  
63090010  --- Worn items of clothing  35% or USD 0.40/kga,b 35% or USD 0.2/kga,b 
63090020  --- Worn items of footwear  35% or USD 0.40/kga,b 35% or USD 0.2/kga,b 
63090090  --- Other worn items  35% or USD 0.40/kga,b 35% or USD 0.2/kga,b 
Flat-rolled products of iron or non -alloy steel  
72104100  - - Corrugated  25% or USD 200/M ta 25 
72104900  - - Other  25% or US D 200/M ta 25 
72106100  - - Plated or coated with aluminium -zinc 
alloys  25% or USD 200/M ta 25 
72106900  - - Other  25% or USD 200/M ta 25 
72107000  - Painted, varnished or coated with 
plastics  25% or USD 200/M ta 25 
72109000  - Other  25% or USD 200/M ta 25 
72123000  - Otherwise plated or coated with zinc  25% or USD 200/M ta 10 
72124000  - Painted, varnished or coated with 
plastics  25% or USD 200/M ta 10 
72125000  - Otherwise plated or coated  25% or USD 200/M ta 10 
Bars and rods, hot -rolled, in irregularly wound coils, of iron or non -alloy  steel  
72131000  - Containing indentations, ribs, grooves or 
other deformations  25% or USD 200/M ta 10 
72132000  - Other, of free -cutting steel  25% or USD 200/M ta 10 
72139900  - - Other  25% or USD 200/M ta 0 
Other bars and rods of iron or non -alloy steel  
72141000  - Forged  25% or USD 200/M ta 10 
72142000  - Containing indentations, ribs, grooves or 
other deformations  25% or USD 200/MTa 10 
72143000  - Other, of free -cutting steel  25% or USD 200/M ta 10 
72149100  - - Of rectangular (other than square) 
cross-section  25% or USD 200/M ta 10 
72149900  - - Other  25% or USD 200/M ta 10 
Other bars and rods of iron or non -alloy steel  
72151000  - Of free -cutting steel  25% or USD 200/M ta 10 
72155000  - Other, not further worked than cold -
formed or cold -finished  25% or USD 200/M ta 10 
72159000  - Other  25% or USD 200/M ta 10 
Angles, shapes and sections of iron or non -alloy steel  
72161000  - U, I or H sections  25% or USD 200/M ta 10 
72162100  - - L sections  25% or USD 200/M ta 10 
72162200  - - T sections  25% or USD 200/M ta 10 WT/TPR/S/ 384/Rev.1  • East African Community (EAC)  
 
- 52 - 
 
HS code  Description  2017 tariff  2011 tariff  
72165000  - Other angles, shapes and sections, not 
further worked than hot -rolled, hot -drawn 
or extruded  25% or USD 200/M ta 10 
72166100  - - Obtained from flat -rolled products  25% or USD 200/M ta 10 
72166900  - - Other  25% or USD 200/M ta 10 
72169100  - - Cold-formed or cold -finished from flat -
rolled products  25% or USD 200/M ta 10 
72169900  - - Other  25% or USD 200/M ta 10 
Bars and rods, hot -rolled, in irregularly wound coils, of other alloy steel  
72271000  - Of high speed steel  25% or USD 200/Mta 10 
72272000  - Of silico -manganese steel  25% or USD 200/M ta 10 
72279000  - Other  25% or USD 200/M ta 10 
Other bars and rods of other alloy steel  
72281000  - Bars and rods, of high speed steel  25% or USD 200/M ta 10 
72282000  - Bars and rods, of silico-manganese steel  25% or USD 200/M ta 10 
72283000  - Other bars and rods, not further worked 
than hot -rolled, hot -drawn or extruded  25% or USD 200/M ta 10 
72284000  - Other bars and rods, not further worked 
than forged  25% or USD 200/M ta 10 
72285000  - Other bars and rods, not further worked 
than cold -formed or cold -finished  25% or USD 200/M ta 10 
72286000  - Other bars and rods  25% or USD 200/M ta 10 
72287000  - Angles, shapes and sections  25% or USD 200/M ta 10 
72288000  - Hollow drill bars and rods  25% or USD 200/M ta 10 
a Whichever is  higher . 
b Sensitive items list.  
Source:  EAC Secretariat , CET 2017 and 2007 version s. 
 
 