TAX ALERT EAST AFRICAN COMMUNITY GAZETTE NOTICE 30 JUNE 2021 - PWC
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Tax Alert
East African Community Gazette Notice
30 June 2021
Introduction
On 30 June 2021, the East African Community (“EAC”) Secretariat published the EAC Gazette
Notice No. 14 of 2021 (“the Gazette”). The Gazette highlights changes effected by the Council
of Ministers (“the Council”) to the East African Community Customs Management Act, 2004
(“EACCMA”) and the East African Community Common External Tariff (“EAC CET”) with effect
from 1 July 2021.
We set out below some of the key changes affecting individual Partner States and the EAC
region as a whole:
www.pwc.com/ke
Changes Specific to Kenya
The Council approved various stays of application of EAC CET duty rates for the next one year on certain items. As is the
norm, the metal and allied sector, textile and shoe manufacturers, and timber product manufacturers will continue to enjoy
protection from stiff foreign competition. This year, the Council has also increased duty on importation of agricultural products
including coffee, tea, frozen meat and chicken, peanut butter, oils and rice in order to cushion local farmers against the adverse
effects of cheap agricultural imports. The changes are highlighted in the table below:
Description Decision
Decrease in duty EAC CET Rate Applicable rate for 1 year
Rice in the husk, husked (brown) rice, semi milled or wholly milled rice and 75% or USD 345/MT 35% or USD 200/MT
broken rice
Polymers of vinyl acetate or of other vinyl esters, in primary forms; other 10% 0%
vinyl polymers in primary forms – Others: Copolymer
Bars - Other, not further worked than hot-rolled, in coils (7225.30.00). 10% 0%
Worn items of clothing, worn items of footwear and other worn articles of 35% or USD 0.40/Kg 35% or USD 0.20/Kg
HS codes 6309.00.10, 6309.00.20, and 6309.00.90.
Increase in duty EAC CET Rate Applicable rate for 1 year
Cooked potatoes, fresh or chilled, of tariff codes 0701.90.00, 0710.10.00, 25% Assigned as sensitive items - 30%
2004.10.00, and 2005.20.00.
Other vegetables prepared or preserved of tariff code 2005.59.00. 25% 25% or US$ 400/MT
Sweet corn (Zea mays var. saccharate) and tomatoes, whole or in pieces of 25% 25% or US$ 250/MT
tariff codes 2005.80.00 and 2002.10.00 respectively.
Poultry and other meat products of tariff classification 25% Assigned as sensitive items - 30%
0207.11.00, 0207.12.00, 0207.13.00, and 0207.14.00.
Peanut butter (2008.11.00). 25% 30%
Chocolate and other food preparations containing cocoa of tariff heading 25% Assigned as sensitive items - 30%
18.06.
Butter and other fats and oils derived from milk and dairy spreads of tariff 25% Assigned as sensitive items - 30%
heading 04.05.
Detergent powder, laundry soaps, bathing bar soaps/toilet soap, and soap 25% Assigned as sensitive items - 30%
noodles. or USD 300/MT
Liquid Gas Cylinders (“LPG”) of tariff code 7311.00.00. 0% 25%
Chewing gum (1704.10.00). 25% Assigned as sensitive items - 30%
Other sugar confectionery (sweets) of tariff code 1704.90.00. 25% Assigned as sensitive items - 30%
Sweet biscuits (1905.31.00). 25% Assigned as sensitive items -
30% or USD 525/MT
Tomato sauce (2103.20.00) 25% 25% or US$ 250/MT
Sauces and preparations therefore; mixed condiments and mixed 25% 25% or US$ 500/MT
seasonings; mustard flour & meal & prepared mustard (2103.90.00).
Other food preparations of flour, groats, meal, starch (1901.90.90). 25% 25% or US$ 250/MT
Prepared foods obtained by the swelling or roasting of cereals or cereal 25% 30%
products (1904.10.00) and other items of tariff code 1904.90.00).
Lubricants in liquid form (2710.19.51) and lubricating greases (2710.19.52). 25% Assigned as sensitive items - 30%
PwC Kenya 2 East African Community Gazette Notice
Changes Specific to Kenya
Description Decision
Increase in duty EAC CET Rate Applicable rate for 1 year
Non-lubricant oils (cutting oils, coolant, anti- rust, brake fluids and similar 10% 25%
oils) of tariff number 2710.19.56
Coated electrodes of base metal, for electric arc-welding (8311.10.00). 25% 25% or USD 250 per MT
Safety matches (3605.00.00). 25% 25% or USD 1.35/Kg
Refined soya bean oil, RDB Palm olein, RDB Palm stearine, other palm oil 25% 25% or USD 500 per MT
refined, sunflower oil and refined corn oil
Nails, tacks, and drawing pins, corrugated nails staple other than those of 25% Assigned as sensitive items - 30%
heading 83.05 and similar articles of iron or steel, whether or not with heads or USD 350/MT
of other materials.
Margarine and edible mixtures (1517.90.00). 25% 25% or USD 500/MT
Styrene acrylic (3903.20.00). 0% 10%
Particle board, oriented strand board (OSB) and other items of HS codes 25% 25% or 130/MT
4410.11.000, 4410.12.000, 4410.19.000 and 4410.90.00
Medium Density Fireboard (“MDF”) of HS codes 4411.12.00, 4411.13.00, 25% 25% or USD 150/MT
4411.14.00, 4411.92.00 44111.93.00 and 4411.94.00
Plywood of HS codes 4412.10.00, 4412.31.00, 4412.33.00, 4412.34.00, 25% 25% or USD 200 per m3
4412.39.00
Blockboard, laminboard and battenboard of HS codes 4412.94.00 and 25% 25% or USD 225/MT
others of 4412.99.00
Uncoated paper and paper board in rolls or sheets of HS codes 4805.19.00 10% 25%
Skillets, free hinge lid packets (4819.20.10). 10% 25%
Articles of apparel and clothing accessories, knitted or crocheted, and 25% Assigned as sensitive items – duty
not knitted or crocheted of chapters 61 and 62 respectively (excluding the rate 30%
sensitive items at 50% rate)
Shoes with leather uppers 25% 25% or USD 1.5/Pair
Shoes with uppers of textile materials of HS codes 6405.20.00 and other 25% 25% or USD 1/Pair
shoes of HS codes 6405.90.00, 6401.10.00,6401.92.00,6401.99.00,6402.19
.00, 6402.20.00, 6402.91.00 and 6402.99.00.
Footwear of HS codes 6403.20.00 and 6403.40.00. 25% 25% or USD 1.5/Pair
Iron and steel products of HS codes 7209.16.00, 7209.17.00, 7209.18.00, 10% 10% or USD 125/MT
7209.26.00, 7209.27.00, 7209.28.00, 7209.90.00.
Various iron and steel products of tariff number 7210.30.00, 25% 25% or USD 250/MT
7210.61.00 and 7212.30.00.
Various iron and steel products of tariff number 7210.41.00 and 7210.70.00. 25% 25% or USD 275MT
Various iron and steel products of tariff number 7211.23.00, 7211.29.00, 25%/10% 10% or USD 125/MT
7211.90.00, and 7212.20.00.
Various iron and steel products of tariff number 7212.40.00 and 7212.50.00. 25% Assigned as sensitive items - 30%
or USD 300/MT
Clad 25% 25% or USD 250/MT
U sections, I section, H sections, L or T sections 0% 25% or USD 275/MT
Wire of iron or non alloy steel - not plated or coated, whether or not 10% 25% or USD 250/MT
polished (7217.10.00) and others of HS codes 7222.11.00, 7222.19.00,
7222.20.00, 7222.30.00, and 7222.40.00.
PwC Kenya 3 East African Community Gazette NoticeChanges Specific to Kenya
Description Decision
Increase in duty EAC CET Rate Applicable rate for 1 year
Items of tariff number 7225.50.00 (Other, not further worked than cold-rolled 10% 10% or USD 125/MT
(cold-reduced))
Items of HS code 7225.91.00 and 7225.92.00. 10% 25% or USD 250/MT
Items of HS code 7225.99.00. 10% 25% or USD 275/MT
Items of HS code 7226.92.00 and 7226.99.00. 10% 10% or USD 125/MT
Items of HS code 7306.30.00 and 7306.40.00. 25% 25% or USD 200/MT
Items of HS code 7306.50.00, 7306.61.00, 7306.69.00 and 7306.90.00. 25% 25% or USD 250/MT
Wire of a kind used in the manufacture of tyres (7217.30.10). 0% 25% or USD 275/MT
Bridges and bridge sections, towers and lattice masts, doors, windows and 25% 25% or USD 250/MT
their frames; equipment for scaffolding, shuttering, propping or pitpropping
thresholds for doors, road guard rails and other structural steelwork.
Coach screws, other wood screws and screw hooks and screw rings 10% Assigned as sensitive items –
and other items of HS codes 7318.11.00, 7318.12.00, 7318.13.00, and 30% or USD 350/MT
7318.19.00.
Rivets and other items of HS codes 7318.23.00 and 7318.29.00. 10% Assigned as sensitive items –
30% or USD 350/MT
Leaf-springs and leaves therefore (7320.10.00). 25% 25% or USD 250/MT
Other screws and bolts, whether or not with their nuts or washers and nuts 10%/25% Assigned as sensitive items –
of HS codes 7318.14.00, 7318.15.00 and 7318.16.00. 30% or USD 350/MT
Stove, range, grates, cookers (including those with subsidiary boilers for 10% 25%
central heating), and similar items of HS codes 7321.19.00 and 7321.89.00.
Articles of iron or steel of HS codes 7323.10.00 and 7326.90.90. 25% 25% or USD 250/MT
Filing cabinets (8304.00.00). 25% 25% or USD 250/MT
Wooden furniture of a kind used in offices, wooden furniture of a kind 25% Assigned as sensitive items –
used in the kitchen, wooden furniture of a kind used in the bedroom, other 35%
wooden furniture and other metal furniture.
Jams, fruit jellies, marmalades, fruit or nut purée and fruit or nut pastes, 25% 25% or USD 250/MT
obtained by cooking, whether or not containing added sugar or other
sweeting matter—other (2007.99.00 and 2007.10.00).
Prefabricated buildings of HS code 9406.90.90. 25% Assigned as sensitive items –
30% or USD 350/MT
Ceramic flags and paving, hearth or wall tiles; unglazed ceramic mosaic 25% Assigned as sensitive items –
cubes and the like, whether or not on a backing; finishing ceramics 30% or USD 1.75 / SQM
(6907.21.00, 6907.22.00, 6907.23.00, 6907.30.00 and 6907.40.00).
Sports footwear, tennis shoes, basketball shoes, gym shoes, training shoes 25% 25% or USD 1 per pair
and the like; and ski Boots, cross country ski footwear and snowboard
boots.
Travel Goods, bags, suitcases and similar items of HS codes 4202.11.00, 25% Assigned as sensitive items –
4202.12.00, 4202.19.00, 4202.21.00, 4202.22.00, 4202.29.00, 4202.31.00, 30%
4202.32.00, 4202.39.00, 4202.91.00, 4202.92.00, and 4202.99.00.
Other Sportswear (6403.19.00). 25% 25% or USD 1 per pair
Other footwear covering ankle (6403.51.00). 25% 25% or USD 1.5 per pair
Footwear with outer soles of rubber, plastics, leather or composition leather 25% 25% or USD 1 per pair
and uppers of textile materials -Other
PwC Kenya 4 East African Community Gazette NoticeChanges Specific to Kenya
Description Decision
Increase in duty EAC CET Rate Applicable rate for 1 year
Footwear; tennis shoes, basketball shoes, gym shoes, 25% 25% or USD 1.5 per pair
Helicopters and aero planes of headings 8802.11.00, 8802.12.00 and 0% 25%
8802.20.00
Wire of iron or non-alloy, steel-plated or coated with zinc (7217.20.00). 10% 25% or USD 250/MT
Insulated (including enameled or anodized) wire, cable (including co-axial 25% Assigned as sensitive items –
cable) and other insulated electric conductors, whether or not fitted with 30%
connectors; optical fibre cables, made up of individually sheathed fibres,
whether or not assembled excluding cables of tariff 854470.
Other switches for a volt not exceeding 1,000 volts (8536.50.00). 10% Assigned as sensitive items –
30%
Lead-acid, of a kind used for starting piston engines (8507.10.00). 25% Assigned as sensitive items –
30%
Other lead-acid accumulators (8507.20.00). 25% Assigned as sensitive items –
30%
Aluminum sufurias, kettles, milk can (7615.10.00). 25% Assigned as sensitive items –
30%
Barbed wire of iron or steel; twisted hoop or single flat wire, barbed or not, 25% Assigned as sensitive items –
and loosely twisted double wire, of a kind used for fencing, of iron or steel 30% or USD 300/MT
(7313.00.00).
Cloth (including endless bands), grill, netting and fencing, of iron or 25% Assigned as sensitive items –
steel wire; expanded metal of iron or steel - plated or coated with zinc 30% or USD 300/MT
(7314.31.00).
Bars and rods, hotrolled, in irregularly wound coils, of stainless steel 25% 25% or USD 250/MT
(7221.00.00).
PwC Kenya 5 East African Community Gazette NoticeChanges Specific to EAC Member States
Duty remission approvals granted 0% duty remission on various packaging materials
In exercise of the powers conferred under Section 140 of for processed tea, coffee, agricultural seeds, etc.
EACCMA, the Council has approved remission of duty on the ● Uganda, Tanzania, Rwanda and Burundi have granted duty
following raw materials and industrial inputs for a period of one remissions on varied items to incentivize manufacturers in
year: the footwear and textile industries.
Changes affecting the EAC as a whole
# Item description Applicable
duty rates Stay of conditions for remission
under ● Motorcycle assemblers: Similarly to previous years, the
remission Council has stayed the application of conditions contained
1 Inputs for the assembly/manufacture of mobile 0% in Legal Notice no. EAC/39/2013 of 30 June 2013, pertaining
phones to duty remission on the motorcycle assembly industry,
for one more year. The Legal Notice of 2013 provides for
2 Aerosol cans of HS code 7310.29.10 0%
duty remission for assemblers of Completely Knocked
Down (“CKD”) kits who procure/ manufacture the following
3 Wheat grain of HS codes 1001.99.10 and 10%
specified parts within the EAC; main frame, suspension, or
1001.99.90
a combination of seat and seat frame, mudguard, wheel rim,
4 Bars and rods of circular cross-section 0% break gear and exhaust pipe.
measuring more than 14 mm in diameter of HS
code 7213.99.00 Remissions relating to Personal Protective Equipment
5 Inputs and raw materials for use in the 0% (“PPE”)
manufacture of energy saving stoves. ● The Council has extended the remission of duty for PPE for
another year. Duty will apply at a rate of 0% on importation
6 Geobitec Stone Chips, Alu-Zinc Coated Steel 0%
Coils, Acrylic co- polymers of HS codes of raw materials and inputs for the manufacture of essential
2517.49.00 medical products and supplies including masks, sanitizers,
coveralls, face shields and ventilators. This extension is in
7 Seats, parts, recliner mechanism of HS code 0%
appreciation of the fact that countries are yet to overcome
9401.90.00
the COVID-19 pandemic.
8 Various fabrics of HS codes 5211.39.00, 10%
5211.42.00, 5211.43.00, 5407.42.00, Preferential tariff treatment under COMESA and SADC
5408.10.00, 5408.22.00, 5408.24.00, ● The Council has approved a stay of the application of
5801.22.00, 5801.26.00 and 5804.10.00.
the EAC CET rates on originating goods imported from
9 Copper/brass foils and other items of HS codes 0% the Common Market for Eastern and Southern Africa
7409.11.00, 7409.19.00, 7410.11.00 (“COMESA”) with effect from 1 July 2021 to 30 June 2022.
This stay of application has been granted to Burundi,
Changes affecting the other EAC Partner States Rwanda, Uganda and Kenya. Further, the Council has
approved a similar stay for Tanzania on originating
The EAC member states continue to be keen on boosting
goods imported from the Southern African Development
manufacturing, textiles, shoe, and the telecommunication
Community (“SADC”) for a similar period.
sector. Various measures adopted by EAC Partner States last
year have been extended for further one year as follows: ● The effect of this stay of application is to further extend
preferential tariff treatment of goods imported from COMESA
● The Council has approved a stay of the CET rates in
and SADC under Section 112 of the EACCMA which had
favour of a duty rate of 0% on various telecommunication
expired on 31 December, 2019 and been extended vide
equipment imported for use by the telecommunication
Gazette Notice No. 17 of 2020 dated 15 September 2020
sector in Rwanda.
from 1 January 2020 up to 30 June 2021.
● Manufacturers in Uganda and Rwanda will enjoy duty
remission of between 0% to 10% on the importation of Conclusion
raw materials and industrial inputs for the manufacture of
This alert highlights the key trends and changes introduced
furniture and textiles.
by the Gazette Notice. Kindly reach out to any of our experts
● Manufacturers in Tanzania and Uganda have been granted below for advice on how the Gazette may impact your specific
0% duty remission on equipment for polishing and heating business affairs.
gemstones. Further, manufacturers in Tanzania have been
PwC Kenya 6 East African Community Gazette NoticeContacts For further information on the East African Community Gazette Notice, please contact any of the people below or your usual PwC contact. Job Kabochi David Nyakinyua Director Senior Associate job.kabochi@pwc.com david.x.nyakinyua@pwc.com +254 020 285 5653 +254 020 285 5763 Maurice Mwaniki Ben Kangangi Associate Director Associate maurice.mwaniki@pwc.com ben.kangangi@pwc.com +254 020 285 5334 +254 020 285 5130 Corazon Ongoro Manager corazon.ongoro@pwc.com +254 020 285 5732 Please note that this tax alert does not constitute tax or legal advice. The alert has been prepared using resources and documents immediately available to the preparer and which may not constitute the final documents. No decision should be made on the basis of this alert. Please consult your regular advisor should you require any advice. PwC Kenya 7 East African Community Gazette Notice
www.pwc.com/ke This publication has been prepared as general information on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. © 2021 PricewaterhouseCoopers Limited. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Limited which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. PwC Kenya 8 East African Community Gazette Notice
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