Regional external tariffs slated for July

The Rwanda Revenue Authority (RRA) is close to the adoption of the regional Common External Tariff (CET). This is part of the efforts to synchronise the country’s tax administration policies with those of the East African Community (EAC) under the Customs Union Protocol. CET is the application of the same customs duties, import quotas, preferences or other non-tariff barriers to trade on all products entering the bloc. It follows Rwanda’s joining of the economic bloc in 2007, where member states are required to align their tax policies with the Customs Union. The RRA Deputy Commissioner General, Eugene Torero said that several steps have been taken paving way for the implementation of EAC external tariff by 1st July. “We have drafted a list of sensitive products and raw materials, which has undergone consultations with different stakeholders such as the private sector and the Ministry of Trade and Industry,” he said. “The list is almost ready and currently in the Ministry of Finance for alignment with the tax policy,” Torero explained. Experts say the treatment of sensitive products is crucial to market access. It implies that the interim Eastern African Economic Partnership Arrangement (EPA) with the European Union (EU) and any successor agreement would also apply to Rwanda. Others steps towards implementation include the training of RRA staff on the EAC customs management and sensitisation of the public countrywide. Government believes that the CET will protect regional products from competition with emerging from products the EAC regional bloc. Torero said that the region needs to produce enough products for its population to avoid importation. However, it is expected that the application of the EAC CET which is a three band structure will cause revenue losses to Rwanda with a four band tariff structure. This is because some products that earn Rwanda’s coffers significant revenue will be taxed at a lower import duty rate. The regional rates are 5 percent lower than the country’s current import duties on intermediary and finished goods. Ends

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Regional external tariffs slated for July