Public and private partnership in identifying and raising trade concerns

Transcription

1 Public and private partnership in identifying and raising trade concerns Presented by MR. Luzze Andrew Executive Director EABC At the Africa Dialogue on Managing Trade Concerns September 2014 Geneva

2 Presentation Outline: About EABC EAC Integration Process EAC NTB Monitoring Mechanism Conclusion

3 About EABC The East African Business Council is the apex body of business associations of the private sector in East Africa. Key Mandate a.policy Review and Formulation b.track progress of policy commitments c.provide a private public dialogue platform and B2B

4 EAC Integration Process Customs Union (CET, Elimination of Internal tariffs, Elimination of NTBs Common Market Protocol (Free Movement of Persons, Labour, Capital, Services, Right of Establishment and Residence) Monetary Union

5 NTB MONITORING MECHANISM EAC Treaty Articles 75 (5) provides for the elimination of Non Tariff Barriers, and further prohibit the introduction of new ones. Laws, regulations, administrative and technical requirements other than tariffs imposed by a Partner State whose effect is to impede trade

6 EAC Customs Union Article 13 (1) and (2) provides for the immediate removal of NTBS and prohibition of introducing new ones as well as the establishment of a mechanism for identifying and monitoring the removal of NTBs

7 National Monitoring Committee

8 About EABC cont MEMBERSHIP: Drawn from all the 5 EAC Partner States. Membership grown from 19 in 2004 to 170 by mid March Membership Comprises: i. Ordinary members: - Business Associations at the national level, including manufacturers & employer associations; Chambers of Commerce and national apex bodies. ii. Associate Members: - Government institutions which directly facilitate the private sector as their main clientele e.g. Export Promotion Boards, Investment Promotion Agencies, National Standards Bureaus, Port Authorities etc. iii. Corporate Members: - Individual companies in their own right and include both multinational companies and other regional companies Large, Medium, mainly.

9 Background The EAC Council of Ministers decided (EAC/CM 14/Decision 38 of April 2007) to harmonize the age limit of vehicles imported into the region by April 2009 The East African Standards Committee (EASC) submitted a proposal to the EAC Council of Ministers to harmonise the age limits for imported used motor vehicles at 10 years with exception of Kenya who wishes to retain 8 years

10 The Committee referred the matter back to the standards technical sub committee for further consultations and conclusion based on scientific, environmental, social and economic impact.

11 REPUBLIC OF BURUNDI There is no age limit for imported used motor vehicles into the country

12 REPUBLIC OF KENYA In Kenya Importation of used vehicles is limited to eight years. Import duty, excise duty, VAT and I. D. F fees are calculated based on dutiable value which is determined by Cost of Retail Selling Price (CRSP) of same or similar brand new model available locally appropriately depreciated according to age.

13 REPUBLIC OF RWANDA No age limit imposed on importation of used motor vehicles.

14 UNITED REPUBLIC OF TANZANIA Age limit is 10 years however there is room to import older vehicles at an additional cost of 20% of CIF Reasons: to deter influx of older imported vehicles into the country

15 REPUBLIC OF UGANDA No. of cars imported per month The age limit for imported used motor vehicles is 10 years however there is the option to import older vehicles at an additional cost of 20% of CIF as environment levy Reasons : to reduce the environmental degradation caused by the pollution from the old motor vehicle engines.

16

17 Number Vehicles in East Africa TRUCKS BURUNDI TANZANIA 7,178 43,811 51,477 59,066 64,790 UGANDA 18,684 20,496 23,323 28,501 33,425 KENYA 66,472 35,838 42,654 51,445 60,365 67,668 RWANDA 2,100 2,351 2,784 3,054 3,319 3,595 PRIVATE VEHICLES BURUNDI TANZANIA 163, , , , ,907 UGANDA 123, , , , ,176 KENYA 329, , , , , ,799 RWANDA 23,772 26,210 30,420 34,956 38,454 41,124 PASSENGER VEHICLES BURUNDI TANZANIA 132, , , , , ,929 UGANDA 28,436 32,863 40,471 50,472 63,789 KENYA 60,109 30,578 35,830 42,279 47,819 52,683 RWANDA 3,549 3,846 4,117 4,880 5,125 5,380 3 WHEELERS BURUNDI TANZANIA ,098 2,406 4,531 6,556 UGANDA KENYA 869 1,944 3,016 3,720 4,583 6,104 RWANDA MOTOR CYCLES BURUNDI TANZANIA 31,006 47,888 76, , , ,192 UGANDA 108, , , , ,263 KENYA 57,465 29,572 45,865 97, , ,694 RWANDA 11,653 15,224 20,598 28,416 33,121 28,521

18 60% of all motorized (excluding three wheelers & motorcycles) in the region are private vehicles Slightly more than 20% are public passenger vehicles Less than 10% are trucks

19 Tanzania s share in the vehicle population over the period has overtaken that of Kenya TANZANIA 31.6% 60.7% KENYA 47.6% 35.8% This could be attributed to, among other the different regimes on the age limit of vehicles imported

20 Conclusion THANK YOU

21 CONTACT US East African Business Council Olorien House Along Old Moshi Road Arusha, Tanzania Tel: / Fax: Website: