On Tuesday, July 16, the East African Community (EAC) announced new duty rates for manufacturing and industrial inputs imported by Tanzanian companies and industries.
Through a Gazette notice, the EAC noted that despite the EAC common tariff, some of the final products from the inputs shall attract duties, levies and other charges provided in the EAC Common External Tariffs if sold in Kenya.
Those products include: soap, tea packaging materials, food and beverage flavours and compounds, automotive/non-automotive toughened glass, electrical cables and wire products, and televisions.
EAC approved a remission of import duty for Tanzania for manufacturers on specified quantities of RBD Palm Stearin for the manufacture of soap to apply a duty rate of zero per cent up to June 30, 2025.
The RBD Palm Stearin will be used in the manufacture of laundry, beauty, anti-bacterial, toilet and laundry soaps.
“In the event that the above-finished products are sold in the Republic of Kenya, the Republic of Uganda and the Republic of Burundi, such goods shall attract duties, levies and other charges provided in the EAC Common External Tariff,” the Gazette notice read in part.
Washing powder, detergent powder and paste as well as liquid soap and handwash were further poised to attract extra levy if sold in Kenya.
EAC also approved duty remission on raw materials and inputs used to package tea by tea blenders for Tanzania.
The raw materials include inner cartons, printed paper boxes, tea bag material, laminated film, and branded plastic wrapping.
While the zero per cent duty rate on the materials ensures cheap tea packaging bags in Tanzania, the goods will be sold at a higher price in Kenya, Uganda and Burundi.
Food and beverage flavours and compounds as well as juice and soft drinks will also be sold cheaply in Tanzania duty to a zero per cent duty rate of a mixture of odiferous substances as well as apple flavouring.
Should the companies importing the raw materials in Tanzania decide to sell the final products in Kenya, the goods will attract duties, levies and other charges.
“A remission of import duty is approved for Tanzania for manufacturers on specified quantities of raw materials and inputs used to manufacture electric cables to apply a duty rate of zero per cent up to June 30, 2025,” the Gazzete notice further indicated.
The raw materials and inputs include: galvanised steel and stranded wire, galvanised steel earth and tape, aluminium alloy, tinned copper wire and tape as well as petroleum jelly.
Duty will be imposed should electric cables and wire products made using the raw materials be sold in Kenya.
Lastly, Tanzanians will enjoy competitive television prices after EAC approved a zero per cent duty rate on the importation of unassembled television.
The provision was given to two companies with an agreement that should they export televisions to Kenya, duty rates and levies would be imposed.
