EAC locks out duty-free car imports from South Africa

PLAYERS in the automobile sectors from the East African Community and the Southern African Customs Union are developing a joint policy to encourage motor vehicle manufacturing that is benefi ial to oth lo s

This development comes at a time when the tripartite free trade area (TFTA) tariff negotiations launched more than four years ago are near con lusion

The two economic blocs have had a prolonged battle over whether to abolish the contentious 25 per cent import duty under the tripartite free trade area T T

The two blocs have agreed that import duty on some motor vehicle parts will be abolished within the first fi e years of the T T and others will enter duty free as provided under the T

The move ostensibly ur s a massi e influ of motor vehicles from South Africa into the EAC region once the more than 700 million-people TFTA omes into for e

It is estimated that the number of vehicles imported into East Africa each year has grown to over 0 000 and is e pe ted to rea h 00 000 y 0 0

s a result mem er states wanda urundi ganda enya Tan ania and South Sudan are pushing for the growth of the automotive assembling industry in the region

“Automobile industry players in the two regions are involved in development of the strategy said enedi t usengele acting director general in-charge of customs and trade at the Comesa Secretariat urrently finished goods imported into the EAC attract a duty of 25 per ent intermediate goods (10 per cent) and raw materials (0 per cent) under the ’s e isting three-band tariff structure which came into effect on anuary 00

oreo er there is a list of sensitive products such as mil sugar wheat ri e and garments which attract higher duty of above 25 per cent to protect such industries from competition

-The East African