The East African reported that Tanzanian companies have been granted exemption on imported products that attract 35% duty, after the EAC Common External Tariff came into force. EAC Council of Ministers chair Ms Betty Maina signed a protocol that companies can now import at 0% for a year raw materials and inputs for the manufacture of wire products.The decision follows an application by Afriweld Industries, Tanuk Africa, MM Integrated Steel Mills and other firms for duty exemption.This came just as the region started to implement the four-band Common External Tariff structure that came into force on 1 July 2022. The structure has rates of 0%, 10%, 25% & 35% for all products imported into the EAC. The maximum tariff band of 35% was considered the most appropriate rate as it has a positive impact on regional growth. However, Tanzania’s successful application has raised questions on whether the determination of the maximum CET tariff rate is implementable when countries are facing a shortage of products that fall under the band.
The East African reported that Tanzanian companies have been granted exemption on imported products that attract 35% duty, after the EAC Common External Tariff came into force. EAC Council of Ministers chair Ms Betty Maina signed a protocol that companies can now import at 0% for a year raw materials and inputs for the manufacture of wire products.The decision follows an application by Afriweld Industries, Tanuk Africa, MM Integrated Steel Mills and other firms for duty exemption.This came just as the region started to implement the four-band Common External Tariff structure that came into force on 1 July 2022. The structure has rates of 0%, 10%, 25% & 35% for all products imported into the EAC. The maximum tariff band of 35% was considered the most appropriate rate as it has a positive impact on regional growth. However, Tanzania’s successful application has raised questions on whether the determination of the maximum CET tariff rate is implementable when countries are facing a shortage of products that fall under the band.
