By John Oyuke
Local motor vehicle manufacturers can now export buses to Tanzania under the East African Common Rules of Origin, the East African Business Council (EABC) has said.
The development means two General Motors East Africa (GMEA) buses, which have been grounded at Namanga border since December last year, can gain entry into the Tanzanian market under a preferential tariff as per East African rules of origin.
The apex body of East Africa Community business associations said the move was taken following a meeting between its officials and those from the Tanzania Revenue Authority (TRA), and Tanzania Ministry for East African Community.
"It is in line with our mission to promote Private Sector’s regional and global competitiveness in Trade and Investment and also eliminate the negative effect Non-Tariff Barriers have on business in the region," said EABC Executive Director Charles Mbogori in a statement.
AGENDA
The meeting, attended by Tanzania EAC Minister Diodorus Kamala, TRA Commissioner General Harry Kittlya, EAC Director of Customs Kenneth Bagamuhunda, and EABC Board Members was held in Dar es Salaam, Tanzania last week. Mbogori said the meeting agreed to reinstate to the vehicles assembled in East Africa the favourable rates spelt out under the EAC Origin Status by EAC Treaty.
He explained that EABC petitioned the Tanzania following complaints from GMEA, one of EABC members, that TRA had taken an arbitrary decision to waive the EAC Origin Status to large buses that have since 1999 been enjoying preferential treatment.
CONCERNS
Mbogori said Tanzania Revenue Authority in December last year, refused to grant EAC Origin Status to two buses destined for Tanzania, citing concerns that the affected vehicles did not conform to the earlier verification it had carried out in 1999.
He, however, noted that the meeting managed to break the deadlock and TRA officials finally agreed to restore the preferential status pending a verification mission that should be carried out within three months as per EAC rules.
