EAC Extends Duty Reduction on Uganda's Raw Materials

The East African Community (EAC) ministers of Trade, Industry, Finance and Investment have extended duty reduction for the Uganda list of raw materials and industrial inputs for another year.

The list of 137 raw materials, which was meant to expire last month, following a one-year extension in 2010 has now been extended to June 2012, according to a statement from the EAC secretariat.

The list includes inputs such as galvanised steel, fibre board, cement clinkers, copper wire, aluminium alloys and printing ink.

Others are newsprint in rolls or sheets, bread improver, corrugated paper, non-wood parts of foot wear, active yeasts, vinyl, alcohol, adhesive paper and sewing thread among others.

Ministers, who were attending the Ministerial Sectoral Council meeting on Trade, Industry, Finance and Investment in Arusha, Tanzania recently, however, agreed that goods exported from Uganda produced by industries benefiting from the list should attract the EAC Common External Tariff (CET).

Uganda Manufacturers Association in a report submitted to the ministry of Finance for the 2011/12 budgetary proposals, asked the government to maintain the list of raw materials until the existing infrastructural constraints in energy and transport are tackled.

The East African Community Customs Management Act of 2004, section 140 gives the Council of Ministers powers to grant remission of duty on goods imported for use in the manufacture of goods for export and such goods imported for use in the manufacture of approved goods for home consumption.

Mr Richard Owora Othieno, EAC Head of Corporate Communications said that the secretariat has also been directed by the council of ministers to carry out a final study on the impact of that list to the economies of partner states by December 2011.

Dr Richard Sezibera called for the elimination of non-tariff barriers and non-uniform application of the common external tariff, which have continued to hinder the smooth operations of the Customs Union.

He explained that the imbalances in the implementation of the Customs Union were affecting prospects of the Common Market since an effective Common Market entirely depends on a well-functioning Customs Union.