Rwanda optimistic over single customs territory

Traders should not worry about the implementation of EAC Single Customs Treaty as the government is vigilant and ready to mitigate all the challenges that might arise, the Permanent Secretary in the Ministry for EAC Affairs, Amb. William Kayonga, has said.

Tuesday, July 02, 2013
Trucks in transit cross a bridge in Rusumo. Amb. Kayonga has said the single customs treaty will not affect traders. The New Times/ Timothy Kisambira.

Traders should not worry about the implementation of EAC Single Customs Treaty as the government is vigilant and ready to mitigate all the challenges that might arise, the Permanent Secretary in the Ministry for EAC Affairs, Amb. William Kayonga, has said.Amb. Kayonga was commenting on the concerns raised by some clearing and forwarding agents who say they might face some challenges if the single customs was implemented, saying a high-level taskforce, which is negotiating on behalf of Rwanda, was aware of the matter.The single customs territory will imply that land-locked countries like Rwanda and Burundi, will open shop at the Mombasa port in Kenya to facilitate the clearance of goods destined to these countries.   "The Rwandan team on the taskforce have the full knowledge of the benefits of implementing the  single customs territory and are  mindful of related challenges to its implementation to both public and private sectors and hence will ensure that the preconditions to implementation of the single customs territory are established to safeguard their interests,” he said.He said the Single Customs Territory is instrumental in any given customs union for it lays a strong foundation for both the Common Market and Monetary Union.Some of the benefits for the single customs territory include reducing  cost of doing business by elimination of NTBs duplication of processes; reduction of costs associated with  regulatory requirements; enhanced  synergies  through shared resources, provides a springboard for the free movement of other factors of production under the common market,Others are  increasing intra-EAC trade, increased turnaround of business, combating of smuggling, increased cross-border investment and enhanced application of information technology and data collection at regional level.Among the issues under discussion in the taskforce sessions under the new arrangement include the revenue management, free circulation of goods, legal and institutional framework.Under the revenue management pillar issues under discussions include, collection of duties and taxes, currency, revenue remittances, bond management, assessment, examination and release of goods, payment of domestic taxes for transfer of local goodsUnder the free circulation of goods pillar, issues include clearance of goods entered for home consumption, warehousing, transit, temporary importation ,transfer of duty paid goods, goods in Special Economic Zones and Export Processing Zones, transfer of locally produced goods, among others.Legal and Institutional Framework pillar includes , issues of standards, customs offences, clearing agencies, dispute settlement, harmonisation of domestic laws and other border agencies.