‘Simplified Trade Regime’ to boost cross border trade

Kirehe - Small-scale traders on either side of the Rusumo border post between Rwanda and Tanzania will easily import and export goods following the launch of a simplified clearance procedure dubbed ‘Simplified Trade Regime.’

Monday, March 19, 2012
Rwanda and Tanzania officials at the launch of STR at Rusumo border. The New Times S. / Rwembeho.

Kirehe - Small-scale traders on either side of the Rusumo border post between Rwanda and Tanzania will easily import and export goods following the launch of a simplified clearance procedure dubbed ‘Simplified Trade Regime.’The Simplified Trade Regime (STR) is meant to waive taxes on goods originating from either one of the two states with commercial value not exceeding $2000. It was launched last Friday at Rusumo border by custom officials and local leaders from both countries.The STR intends to simplify the whole process of clearing goods for small scale cross border traders by introducing a simplified certificate of origin which should be obtained at the border for all goods that appear on the common list."The rules only benefited the big traders who are able to go to EAC cities and regional provinces to obtain certificates of origin. Small traders will now obtain, freely, the certificates of origin at the borders forthwith,” the Deputy Commissioner General for Customs, Rwanda Revenue Authority (RRA), Richard Tusabe, said at the launch.He added that EAC introduced the STR specifically for cross border trade in an effort to address the imbalance."STR trade facility is very crucial...small scale cross-border traders play an important role in development of partner states. Goods of commercial value not exceeding USD 2000 for each consignment, an EAC Simplified certificate of origin shall apply”.Tanzania Deputy Commission for Customs (TRA), Tiagi Kabisi, said that STR was expected to succeed, as it did at other borders in region.He underscored that Tanzania was working round the clock to reduce trade delays, adding that all trade irregularities were expected to end."We are going to close road blocks along our highways to international ports.The newly introduced electronic cargo monitoring system is set to do a great job,” Kabisi said.The Governor of the Eastern Province, Odette Uwamariya, challenged businesspersons to utilise the facilities at their disposal."Most of our districts touch border lines...business people shouldn’t take this chance for granted. They should think of starting up, for example, Forex bureaus, banks, etc,” she said.Rusumo is said to be the most active border handling 65 per cent export and 90 per cent imports of Rwanda.