Eac - Customs Union Class

EAC LAW:
CUSTOMS UNION
BY
MS. OSIEMO EMILY
STAGES OF EAC INTEGRATION: ART. 5 (2) OF EAC
TREATYY
EAC MILESTONES
3
EAC CUSTOMS UNION
• Is the first stage of EAC Integration and is
characterized by free movement of goods through
the elimination of tariff and non tariff/charges of
equivalent effect and application of a common
external tariff for goods imported into the
community from non-EAC Partner States.
• What do tariffs mean: Customs duty on imports or
exports
• Non-tariff barriers: laws, regulations, administrative
requirements other than tariffs imposed by Partner
States to impede trade
• Charges/measures of equivalent effect: tax other
than customs duty, surtax, levy/charge imposed on
imports
EAC CUSTOMS UNION CONT’
• It is the first stage of EAC Integration
• Article 5(2) of the EAC Treaty provides that the
Partner States undertake to establish a
customs union as the first stage of integration
followed by a Common Market, subsequently
a Monetary Union and ultimately a Political
federation
Legal Framework of the EAC Customs Union
• The customs Union is administered under the customs law
of the Community comprised of:
 Relevant provisions of the EAC Treaty

 Protocol on the Establishment of the East African Customs Union
and its Annexes
 Acts of the Community enacted by the Assembly:
 The East African Community Customs Management Act,
 The East African Community Elimination of Non-tariff Barriers Act, 2017
 Decisions made by the EAC Court of Justice
 East African Law Society versus Secretary General of EAC, EACJ Reference no. 1
of 2011
 The East African Centre for Trade Policy and Law versus The Secretary General
of EAC, EACJ Reference no. 9 of 2012
 Kioo Ltd vs. Attorney General of the Republic of Kenya. EACJ Application No. 9
of 2020
 BAT vs. Attorney General of the Republic of Uganda, EAC Reference No. 7 of
2017
Protocol on the Establishment of East
African Customs Union
• Under Art. 75 (7) of EAC Treaty: EAC Partner
States committed to conclude a Protocol on
the Establishment of EA Customs Union
• The Protocol was signed in 2004, launched on
1st January 2005, and became fully-fledged on
1st January 2010.
7
Annexes to the Protocol on the
Establishment of EA Customs Union
• Annex I: EAC CET, 2017
Annex II: Internal Tariff Elimination schedule
Annex III: EAC Rules of Origin, 2015
Annex IV: EAC Anti Dumping Regulations
Annex V: Subsidies and Countervailing measures Regulations
Annex VI: Safeguard Measures Regulations
Annex VII: EPZ regulations
Annex VIII: Free Port Operations Regulations
Annex IX: Dispute Settlement Mechanism Regulations.

Objectives of EAC Customs Union set out Art. 3
of Protocol on Establishment of EA Customs
Union
• Liberalization and promotion of Intra EAC
trade for mutual benefit of all
• Enhance production efficiency
• Promote domestic, cross-border and foreign
investment
• Industrial diversification – import substitution
leading to Economic development
BASIC GUIDING PRINCIPLES OF EAC
CUSTOMS UNION
• Besides principles of Art. 6 and 7 of EAC
Treaty
• National treatment principle is a key principle
set out in the Customs Union Protocol:
• Partner States are under obligation not to
enact legislation/apply administrative
measures / internal taxation to directly or
indirectly discriminate similar goods from
other EAC Partner states
Key Features of EAC Customs Union
1. It provides for the free movement of goods between
Partner States with zero internal tariffs (Art. 10 of the
Protocol)
2. Application of a Common External Tariff in respect of all
products imported into the Community from non EAC
States (Art. 12 of Protocol)
3. Elimination of all Non-tariff barriers to trade and charge of
equivalent effect affecting free movement of goods within
the Community (Art. 13 of Protocol)
4. Develop and harmonization of EAC Customs standards/
rules (rules of origin/ customs clearance & trade
documentation/competition/standardization/ sanitary &
Note
• Sanitary and Phyto sanitary measures mean:
a) Measures applied in the EAC to protect animal
and plant life within the territory of a Partner
State from risks arising entry or spread of pests
and diseases; or
b) Measures applied to protect human life within
a territory of a partner state from risks arising
from plant and animal food products
containing toxins/diseases.
Source: Art. 1 of the EAC Protocol on Sanitary
and Phytosanitary measures
EAC Common External Tariff (CET)
• The East African Community (EAC) implemented

its Common External Tariff (CET) in 2005, for the
three countries that were then members (Kenya,
Uganda, and Tanzania).
• Burundi and Rwanda joined later, with CET
implementation taking place in 2009.
• Customs duty is levied at rates
between 0% and 100%, with an average rate
of 25% depending on the nature of goods.
EAC Common External Tariff (CET) Cont’
• The CET is structured in three bands,:
• Zero (0%) percent for raw materials, capital goods,
agricultural inputs, certain medicines and certain
medical equipment. The rationale behind this tariff
structure was to enable local manufacturers to build
capacity to produce locally within the regional bloc.
• In this respect, the zero rate was for capital goods,
the 10 % bands were established for raw materials
and intermediate goods and other essential inputs
needed in production, and
• 25 % band was established for finished products to
reduce imports and support local producers.
APPLICATION OF EAC RULES OF ORIGIN OF
2015
• Rules of Origin are the laws, regulations and
administrative procedures which determine
country of origin of goods.
• The Protocol provides that trade within the EAC
will be conducted in accordance with agreed
East African Rules of Origin 2015 .
• The EAC Rules of Origin form Annex 111 of the
Protocol.
EAC GOODS ORIGIN CRITERIA
• Under Rule 4 of EAC Rules of Origin, 2015 goods
shall be accepted as originating in an EAC
Partner State where the goods are-
• (a) wholly produced in the Partner State as
provided for in rule 5; or
• (b) produced in the Partner State incorporating
materials which have not been wholly obtained
there, provided that such materials have
undergone sufficient working or processing in
the Partner State and they are listed in first
The following does not amount to sufficient
working/processing of goods not wholly produced in
the EAC (see rule. 7 of EAC Rules of Origin)
1. Packaging of goods
2. simple mixing of ingredients imported from
outside the Partner State
3. simple assembly of components and parts
imported from outside the Partner State to
constitute a complete product;
4. Operations to ensure the preservation of
goods
5. Marking and labelling of the goods
EAC Rules of Origin Cont’
• The rule 4 to 7 apply to goods worth US$ 2,000 and above.
• However, to facilitate small-scale traders who trade in goods not
exceeding a value of US$ 2,000, an EAC Simplified Certificate of
Origin is used.
• The small scale trader who import goods from the community is
required to complete the EAC Simplified Certificate of Origin and
attach an invoice (or evidence of value) of the goods and present
these documents to the designated customs official at point of
exit.
• The officers at the other side of the border will check the EAC
Simplified Certificate of Origin and if everything is in order clearer
the goods
• EAC Simplified Certificate of Origin is not charged any duty
where goods are from the community.
• EAC Simplified Certificate of origin is available at KRA/Customs
APPLICATION OF THE
REMOVAL OF ALL COMMON EXTERNAL
INTERNAL TARIFFS TARIFF AND RULES OF
ACROSS THE EAC ORIGIN
EAC
FREE MOVEMENT
CUSTOMS OF GOODS WITHIN
UNION THE EAC
ELIMINATION OF ALL
DEVELOPMENT &
NON-TARIFF
HARMONISATION OF
MEASURES AND
EAC STANDARDS
MEASURES OF
EQUIVALENT EFFECT
19
DISPUTE RESOLUTION UNDER THE
CUSTOMS UNION PROTOCOL
• The Article 24 of the Customs Union Protocol establishes an EAC
Committee on Trade Remedies as a dispute settlement
mechanism.
• Decisions of the Committee with respect to settlement of
disputes are final (Article 24 (5) of Customs Union Protocol)
• The Committee is to investigate hear, determine matters
pertaining to:
• Rules of origin
• Anti-dumping measures
• Subsidies and countervailing measures
• Disputes provided for under Annex VI of the Protocol and other
matters referred to it by the Council
DISPUTE RESOLUTION UNDER THE
CUSTOMS UNION PROTOCOL
• VERY IMPORTANT TO NOTE:
• The jurisdiction of EAC Committee on Trade Remedies does
not oust the jurisdiction of the EACJ under Article 27 (1) of
EAC Treaty with respect to interpretation and application of
EAC Treaty including Protocols (Customs Union, Common
Market e.t.c)
• Read the cases:
1. East African Law Society versus Secretary General of EAC,
EACJ Reference no. 1 of 2011
2. The East African Centre for Trade Policy and Law versus The
Secretary General of EAC, EACJ Reference no. 9 of 2012
NOTE: The EACJ found in the two cases that Article 24 of the
Customs Union Protocol did not oust the interpretative and

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EAC LAW:

 Relevant provisions of the EAC Treaty

Annex II: Internal Tariff Elimination schedule

Annex III: EAC Rules of Origin, 2015

Annex IV: EAC Anti Dumping Regulations

Annex V: Subsidies and Countervailing measures Regulations

Annex VI: Safeguard Measures Regulations

Annex VII: EPZ regulations

Annex VIII: Free Port Operations Regulations

Annex IX: Dispute Settlement Mechanism Regulations.

• The East African Community (EAC) implemented

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