East African Community Trade Rules and
Procedures
A Guide for Women Cross Border Traders
Page 1 of 44
Table of Contents
ACRONYMS
3
FORWARD
4
SECTION 1: INTRODUCTION
5
SECTION 2: TRADE AND INVESTMENT IN THE EAST AFRICA COMMUNITY
8
SECTION 3: EAC TRADE RULES AND REGULATIONS
10
SECTION 4: REGULATIONS ON FREE MOVEMENT OF PERSONS
33
SECTION 5: REGULATIONS ON MOVEMENT OF WORKERS
35
SECTION 6: KEY SUPPORT SERVICES FOR TRADERS
43
Page 2 of 44
ACRONYMS
BMOs
Business Membership Organizations
CMP
Common Market Protocol
EAC
East Africa Community
FDI
Foreign Direct Investment
DVS
Department of Veterinary Services
DFR
Department of Fisheries
GDP
Gross Domestic Product
MAFC
The Ministry of Agriculture, Food Security and Cooperatives
MLDF
Ministry of Livestock Development and Fisheries
NGOs
Non-Governmental Organizations
KEPHIS
Kenya Plant Health Inspectorate Services
RoO
Rules of Origin (EAC)
SPS
Sanitary and Phyto-sanitary measures
TAEC
Tanzania Atomic Energy Commission
TFDA
Tanzania Food and Drugs Authority
TPRI
The Tropical Pesticide Research Institute
VAT
Value Added Tax
Page 3 of 44
FORWARD
Page 4 of 44
SECTION 1: INTRODUCTION
1.1 About the East African Community (EAC)
The East African Community (EAC) is the regional intergovernmental organization of
the Republics of Burundi, Kenya, Rwanda, Tanzania and Uganda with headquarters
in Arusha, Tanzania. The Treaty for the Establishment of the East African
Community was signed on 30th November 1999 and become operational on 7th July
2000.
The EAC aims at widening and deepening the cooperation among the
Partners States in political, economic and social fields for their mutual benefit. To
this extent, the EAC countries established the Customs Union in 2005, Common
Market in 2010 and are working to establish a Monetary Union and eventually a
Political Federation of East African States.
It is notable, that EAC countries have committed to promote gender equality and
women’s empowerment. These commitments are contained in various sections of
the EAC Treaty and include:

Article 5(e)- Objectives of the Community

Article 121- The Role of Women in Socio-Economic Development

Articled 122- The Role of Women in Business
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1.2 Scope and Objectives of Guide
This guide provides information on key EAC trade rules and procedures, related to
trade taking place within the EAC (intra-EAC trade) in a simplified and user-friendly
manner. The rules and procedures have been presented in the three key sections
namely; 1) rules relating to trade in agricultural produce; 2) rules relating to trade in
semi-processed and manufactured goods and 3) rules relating to trade in services.
Country specific information on registration of businesses and companies has also
been provided in the Appendix Section of this Guide.
1.3 Users of the Guide
The main users of this guide are as follows:
1. Primary users will be women cross border traders and associations and
networks of women entrepreneurs
2. Secondary users will be male cross border traders, the private sector in
general, investors, Business Membership Organizations (BMOs), NonGovernmental Organizations (NGOs), development partners as well as
Ministries responsible for Trade, Gender and East African Community Affairs.
1.4
Key Sources of Information
Information provided in this Guide was obtained for the following key EAC
documents:
a) The Treaty for the Establishment of the EAC (2000)
b) The EAC Customs Union Protocol and its Annexes (2005)
c) The EAC Common Market Protocol and its Annexes (2010)
d) The EAC Customs Management Act
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e) The EAC Trade Report (2012)
f)
The EAC Facts and Figures (2012)
g) The EAC Investment Guide (2013)
h) The Manual on Application for EAC Rules of Origin (2006)
1.5 Structure of the Guide
This Guide takes the following structure:
Section 1:
Introduction
Section 2:
Trade and Investment in the East African Community
Section 3:
EAC Trade Rules and Regulations
Section 4:
Regulations on Free Movement of Persons
Section 5:
Regulations on Movement of Workers
Section 6:
Key Support Services for Traders
APPENDIX
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SECTION 2: TRADE AND INVESTMENT IN THE
EAST AFRICA COMMUNITY
Table 1: Key Trade and Development Descriptive Statistics of the East
African Community
Total surface Area (including water)
1,817.7 thousand square kilometers
Total Population
143.5 Million; 68,605,181 Females and
68,605,045 males ( 71,500,000)
Total Gross Domestic Product (GDP)
US$ 110.3 Billion
Average GDP per capita ( individual
purchasing power)
Total
Intra-EAC
US$ 769
Trade
volumes(Exports and Imports)
US$ 5,470 Million
Total EAC imports volumes
US$ 2,315 Million
Total EAC exports volumes
US$ 3,155 Million
Total Foreign Direct Investment (FDI)
US$ 6.3 Billion
Total Intra-EAC FDI inflows
US$215.4 Million
Source: EAC Trade Report (2012), EAC Facts and Figures (2014)
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Table 2: Top Three (3) Most Traded Goods within the EAC and EAC and the Rest of
the World
EAC Country
Burundi
Kenya
Rwanda
Tanzania
Main exports within
the EAC
Tea, Aluminum waste
and crap, soap
Beef, pork, meat of
sheep or goat, milk
products
Rare metals ores, tea,
tin ores
Paper& paperboards,
machines having
individual functions,
mixture of nitrogen,
phosphorus fertilizers
Tea, raw tobacco and
cement
Uganda
Main imports within
EAC
Mixture of nitrogen,
cement and iron
Beef, pork, meat of
sheep or goat
Main exports to the
Rest of the World
Unwrought gold,
coffee and tea
Tea, petroleum oils,
cut flowers
Cement, animal and
vegetable oils, palm
oil
Medicine mixtures,
petroleum oils and
electrical appliances
for line telephony
Rare metal ores, tea,
tin ores
Petroleum oils,
cement and flat iron
rods.
Unwrought gold,
precious metal ores
and nuts (incl.
cashew nuts, brazil
nuts)
Coffee, petroleum
oils, raw tobacco
Source: ITC Trade Map (4-digit cluster)
Goods that are commonly traded by small-scale traders ( women and men) in
the EAC
1. Cereal and grains
2. Clothes and shoes
3. African jewellery and clothes
4. Cigarettes
5. Metal spare parts
6. Mobile phones
Source: African Trade Policy Centre-UNECA (2009)
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SECTION 3: EAC
REGULATIONS
TRADE
RULES
AND
3.1 Introduction
In the EAC, there are different rules and procedures when trading in;
a.
Unprocessed agricultural produce;
b.
Manufactured and goods and;
c.
Services.
This section outlines these rules, regulation and procedures in each
category.
3.2 Trading in Unprocessed Agricultural Produce
This section will cover trade in agricultural produce. This includes trade in
live animals, plants, seeds, fruits (other than those packed), cereals (other
than those packed), fish and poultry.
Q: What rules apply when trading in agricultural produce?
The main rules that apply are:
1. The EAC Rules of Origin which are described in detail in paragraph
3.3.1 below.
A trader will need to show evidence that his/her
agricultural produce is entirely produced or obtained in one of the
EAC countries.
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2. Additional certificates are required in order to ensure food, animal
and human health and safety. This is commonly referred to as
Sanitary and Phyto-Sanitary measures (SPS measures). A trader is
required to obtain an import license from the appointed government
agency before being able to import the agricultural produce into
another EAC country.
Table 3: Main government agencies involved in ensuring food,
animal and human health and safety
EAC Country
Main Government Agencies
Burundi
Plant Protection Department under the Ministry responsible for
Agriculture, Livestock and Fisheries.
Kenya
a. The Kenya Plant Health Inspectorate Service (KEPHIS),
under the Ministry in charge of Agriculture ( for import
licensing of seeds and plants)
b. Kenya Bureau of Standards (KEBS)
c. The Department of Fisheries (DFR), in the Ministry in charge
of Fisheries Development;
d. The Department of Veterinary Services (DVS), under the
Ministry in charge of Livestock Development and;
Rwanda
Tanzania
e. The Department of Food Safety and Quality, under the
Ministry in charge of Public Health ( for import licensing for
food stuffs)
Ministry of Agriculture and Animal Resources.
a. Tanzania Food and Drugs Authority (TFDA). All importers of
food to Tanzania must be registered with this agency.
b. Tanzania Atomic Energy Commission (TAEC)- All imported
food into Tanzania must be inspected for radiation by this
agency.
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c. The Fisheries Department of the Ministry of Livestock
Development and Fisheries
d. The Ministry of Agriculture, Food Security and Cooperatives
(MAFC) and its departments
e. The Tropical Pesticide Research Institute (TPRI) which issues
import permits for plant and plant products
The Directorate of Veterinary Services (DVS) of the Ministry
of Livestock Development and Fisheries (MLDF) which is
responsible for animal health matters.
a. The Ministry of Health which is responsible for issues
related to drugs and food safety.
f.
Uganda
b. The Ministry of Agriculture, Animal Industry, and Fisheries
(MAAIF) and its various directorates that is animal, crop and
fisheries resources.
Example 1:
Pendo is a Tanzanian business woman who owns 6 acres of farming land in
Tanzania in which she grows maize commercially. She has just got a bumper harvest
and now wants to export and sell some of her maize in Kenya. Before she can sell her
maize in Kenya, she will need to get an import licence from the Kenya Plant
Health Inspectorate Service (KEPHIS), under the Ministry in charge of
Agriculture. This government agency has satellite offices at most border posts/exit
points.
Q: Is agricultural produce charged internal taxes such as Value Added
Tax (VAT) and/or Excise Taxes?
In most EAC partner states countries, unprocessed/raw agricultural
products are NOT charged Value Added Tax (VAT) or Excise Tax. However, it
is advisable that a trader obtains up-to-date information on internal taxes
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from the Revenue Authority offices (at border posts or national or regional
offices) of the country where the goods will be sold.
Note:
A country may prohibit the import of some products in order to protect
animal, plants and human health. For example, Uganda has banned
importation of beef (due to mad cow disease); dressed chicken and poultry
(due to bird flu); soil; banana leaves; rice straw; wheat straw; leaf; leaf
mold;
and chaff.
Tanzania also prohibits imports of poultry and poultry
products due to bird flu.
Therefore, if you are planning to export your goods to an EAC country, make
sure to find out through the relevant government agency of the country you
wish to export to, the current list of the banned goods in that country.
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3.3 Trading in manufactured and/or semi-processed
goods within the EAC region
The main regulations and procedures relating to trading in manufactured and semiprocessed goods within the EAC region are as follows;
1. The EAC Rules of Origin,
2. Product Quality Standards and,
3. Domestic/internal taxes
3.3.1 What are the EAC Rules of Origin?
The EAC Rules of Origin (RoO) is a set of rules that are used to differentiate between
goods that are produced within the EAC region and those that are not. Generally,
goods produced or obtained within the EAC region will not be charged any import
duty or tariffs; in other words zero tariff/duties will be charged on the goods.
3.3.1.1 EAC Rules for goods valued at US$ 2,000 and above
As mentioned above, goods must come from or be produced from one of the EAC’s
countries so as to qualify for zero tariff/duty treatment under the EAC Rules of
Origin. The criteria used, is on how the goods have actually been produced.
If you are a trader (of manufactured goods valued at US$ 2,000 and above) and wish
to benefit from a zero tariff/duties on your goods, you must comply with AT LEAST
ONE of the four rules below.
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What are the 4 Rules of Origin for Goods Above US$ 2,000?
Rule 1: Wholly produced Rule; the goods must be completely produced OR got
from one of the EAC countries. In other words, no materials from outside the EAC
have been used. These goods include:
animal, products obtained
mineral products, vegetable products, live
from live animals,
products obtained by hunting or
fishing conducted within the EAC; products obtained
from the sea and from
rivers and lakes, products manufactured in a factory, used articles and scrap and
waste resulting from manufacturing operations.
Rule 2: Material content Rule1: the value of any foreign
(that is, non-EAC)
materials used to produce the good does not exceed 60% of the total cost of all
materials used in the production of the goods.
Rule 3: Value addition Rule: At least 35% value has been added to the goods
from the process of production of the goods. This means that some form of
processing has taken place. For example, fruits have been transformed into packed
fruit juices.
1
The EAC Rules Origin for Goods Valued over US$ 2000 will soon change for Rule 2 and 3. However,
these Rules have not yet been made official and therefore the current Rules continue to apply. In the new rules
the price of goods (Ex-work price ie price after processing/manufacturing + profit margin) will be used to
calculate the Rules 2 and 3. Further, the 60% (Rule 2) and 35% (Rule 3) requirements will be abolished and a
Schedule with different percentages depending on the goods will be used to calculate.
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Rule 4: Change of Tariff Heading Rule: goods
produced
are classified
or
become classified under a different tariff heading other than the tariff heading
under which they were imported. For example, an uncut tanzanite ( Kisii soapstone)
is subsequently cut and polished using an industrial process. The classification of
the uncut tanzanite (kisii soapstone) will be different from the cut and polished
tanzanite (Kisii soapstone) as substantial transformation or change from the
original state (through an industrial process) of the uncut tanzanite (Kisii
soapstone) has taken place.
Q: How does a trader calculate the requirements of Rule 2, 3 and 4 of the
Rules of Origin? It is advisable that you visit your local chamber of commerce or
government revenue authority to seek assistance in calculating this requirements as
it can be technical. However, a trader must ensure to record all information from
the first step of production or processing of the goods/products.
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3.3.1.2 EAC Rules of Origin for goods valued at below US$ 2,000
To
facilitate small-scale traders who trade in goods not above a value of US$
2,000, an EAC Simplified Certificate of Origin is used. The general rule is that
the goods can either be produced or manufactured in one of the EAC countries.
Example 2: Asimwe is a Ugandan business lady who wants to travel to Kenya to sell
her Ugandan made Kitenge clothes worth US$ 1,000. On entry into Kenya, she will
require a Simplified Certificate of Origin in order for her clothes not to be charged any
duties or tariffs. The following are the steps she will follow to obtain the Simplified
Certificate of Origin.
Step 1: Complete the EAC Simplified Certificate of Origin and attach an invoice (or
evidence of value) of the goods and present these documents to the designated
customs official at Uganda’s point of exit at the border for confirmation.
Step 2: The customs official should confirm that the goods qualify for the simplified
procedures. If satisfied, the customs official should stamp and sign the Simplified
Certificate of Origin.
Step 3: Asimwe should then present the signed and stamped Simplified Certificate
of Origin to Kenya’s customs officials on the other side.
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Step 4:
The custom officials on the Kenyan side ( importing country) will
check that the goods declared
by the trader on the simplified Certificate of
origin is in the reference to the common list of approved products.
Step 4:
The custom official will then confirm the signature and stamp
appearing on the certificate are the same as those notified by the Customs Authority
of Uganda.
Step 5: If everything is in order, the goods will NOT be charged any duties or
tariffs in Kenya ( importing country).
Note:
 The signed Simplified Certificate of Origin will ensure that NO tariff or
duties are charged in the importing Partner State.
 Where the trader makes a false declaration of value of goods OR splits the
goods in order to qualify for a simplified certificate origin he/she will have
committed an offence as provided in the EAC Customs Management
Law.
 A trader can get a Simplified Certificate of Origin from their National
Chambers of Commerce, Revenue Authority or from Custom Officials at
Border points.
Sample Simplified Certificate of Origin ( to be included in printed version)
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3.3.2 Product Quality Standards
In order to protect consumers’ health and protect them from sub-standard
and harmful products, manufactured products are required to meet certain
minimum quality standards.
Q: How does a trader ensure that his/her products meet the required
quality standards?
Generally, a trader will need to obtain an Import Clearance Certificate or
Certificate of Conformity of product standards before he/she is allowed to
sell a product in another EAC country.
This Certificate is given by the appointed government agency responsible for
ensuring product quality standards in two situations:

Situation 1: When the
Government Standards Agency in the
importing country recognize or accepts the ‘mark of quality’ from
the country of origin of the trader; OR

Situation 2: A sample of the product (s) is laboratory tested and
found to meet the required minimum standards.
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Some product quality standards are the same across the region. However,
EAC countries could have different regulations and procedures on some
issues. These different regulations are mostly on:

Inspection and laboratory testing at border of imported food stuffs and
products;

Product marking, labeling and packaging requirements;

Banned products list due to danger to human beings.
The following table provides more information on these regulations.
Table 4: Key Regulations on Product Quality Standards in each EAC
Country
EAC Partner
State
Country
Kenya
Key Government Agency Key Regulations
Responsible for Product
Quality Standards
Kenya
Bureau
of  KEBS conducts testing and inspection at border
Standards (KEBS).
of imported food products such as sugar,
cereals and pulses, fertilizer, animal, fishery,
and dairy products. This approach is commonly
referred to as Route A.

For non-food products, a trader can use two
approaches to ensure his/her products are
certified/confirmed to meet the required
minimum standards;
a. Route B (Fast track Lane)- in which the
trader must register for one year, and pay a
specified fee. In this case the registered
products of trader are exempt from
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EAC Partner Key Government Agency Key Regulations
State
Responsible for Product
Country
Quality Standards
mandatory testing, but KEBS can still
conduct random testing ; OR
b. Route
Cthis
is
open
to
manufacturers/trader who can demonstrate
the existence of a quality management
system in their manufacturing/production
process at their factories. A 1(one) year
license is given to manufacturers/trader,
after a successful inspection of their
production processes.
Tanzania
Tanzania
Bureau
Standards (TBS)

Additionally, all products sold/traded in Kenya
should be labelled with measurements and
packaged. All foodstuffs must also be labelled in
English or Kiswahili and the manufacturer must
indicate on the labels the date of manufacture
and expiry. Banana leaves, maize, rice, sorghum
or wheat straw, and bags containing or having
contained malt, soil or leaf mould must not be
used as packing material.
of 
In April 2012 TBS allowed small scale traders to
use the destination inspection system. This
means that products transported by small-scale
traders will be tested for product quality
standards at the point of entry into Tanzania.

The requirements for marking, labelling, and
packaging apply to three broad categories of
food namely:
1) food, 2) non-food, and 3)
dangerous goods. Sensitive products such as
food, pharmaceuticals and dangerous goods (e.g.
explosives and flammable liquids) must be well
packaged,
labelled
and
marked.
Marking/labelling information requirements
include:
name of the product, date of
manufacture and expiry, contents or ingredients,
directions
for
use,
storage
conditions,
warning/safety information and symbols, lot
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EAC Partner Key Government Agency Key Regulations
State
Responsible for Product
Country
Quality Standards
identification, country of origin, and name and
address of the manufacturer.
Uganda
Rwanda
Uganda National Bureau 
of Standards (UNBS)
Only imports covered by mandatory standards
are inspected at entry points/ border points.
Where necessary, the UNBS draws samples of
the product for laboratory testing. If the product
does
not
meet
the
critical
minimum
requirements
for
health,
safety,
and
performance the product is prohibited entry on
those grounds.

Surprise inspection visits are also conducted
and products are sampled from a seller’s place
of business for laboratory testing.

Additionally, the following information must be
clearly marked on imports; importer/exporter
name, consignee, flight/vehicles details, place of
discharge, number of packages, container
identity, description of goods, airway bill
number/bill of lading, and country of
origin/destination. There are additional labeling
requirement for clothing and this information
can be obtained from UNBS.
Imports of selected products and materials of
high risk to humans and the environment
require a batch certificate from the RBS,
confirming that a particular product is in line
with Rwanda standards, or international or
foreign standard recognized by the RBS.
Rwanda
Bureau
Standards (RBS)
of 

All imported foodstuffs must indicate the
date of manufacture and expiry. Importers
must apply for the batch certificate one week
before the goods arrive. If the imports include
food or food products, the test certificate must
indicate that the food or food products are
consumed in the country they are coming from.
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EAC Partner Key Government Agency Key Regulations
State
Responsible for Product
Country
Quality Standards
 RBS officials usually take samples from
imported goods and test the sample to ensure
they meet the required standards. The RBS
official will then issue a batch certificate for
imports that comply with requirements.

Burundi
The Burundi Bureau of 
Standards and Quality
Control (BBN)
Additionally, goods and containers of goods
must be labelled and marked clearly to facilitate
identification of the articles indicated on the
accompanying documents/forms. Labels must
give the name of the product, ingredients, net
weight, name and address of the manufacturer,
packer, distributor, importer, exporter or
vendor, lot identification, date marking and
storage instructions, and instructions for use.
All mandatory information must be in one of
the three official languages (English, French,
or Kinyarwanda). Also worth noting is that
Rwanda prohibits the importation of plastic
bags.
Products already inspected and certified by
the countries of origin may also undergo
additional inspection and testing upon arrival
in Burundi.

The BBN may refuse to allow certain products to
enter Burundi if they have been rejected in
other EAC countries.

Burundi does not have any national
provisions
on
marking,
labelling
and
packaging. BBN uses international standards
on labelling for food stuffs.
Source: Agency websites and WTO Trade Policy Review Reports (2012)
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Chart 1: Summary of procedure of confirming manufactured and semiprocessed goods meet the required quality standards
Step 1
Step 2
Step 3
Step 4
Step 5
•The trader should show evidence that his/her goods meet the required minimum
standards and that they are properly labelled and packaged to the Bureau of
Standards official in the country where the goods will be sold.
•If the goods have the 'mark of quality' from the traders home country, the trader
should show this mark and the clearing official should recognise the mark and
allow the goods to enter the country.
•Note:The clearing official has the right to reject the mark of quality if he/she is
suspects (or has evidence) the mark is fake OR was obtained corruptly.
•If the goods do not have the mark of quality ( or the mark is suspected to be fake)
the clearing official has the right to get a sample of the goods for laboratory
testing.
•The goods will then be taken for testing in a government laboratory. Testing might
take a few days as most EAC countries do have fully equipped laboratories at
border posts.
•If goods are tested and found to meet minimum standards OR if the goods 'mark of quality' is
accpeted by the clearing official, the trader will be given an Import Clearance Certificate ( also
know as Certificate of Conformity )which will allow the trader to sell his/her goods.
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Note:

At the EAC /regional level over 1,200 standards have been harmonized that
will be used by all EAC countries. The standards can be viewed on;
file:///C:/Users/Admin/Downloads/eac-catalogue.pdf.

From 2006, EAC countries are required to recognize or accept each
others ‘marks of quality’. This means that a trader whose products have
obtained a ‘mark of quality’ from his/her home country’s Bureau of
Standard, should import those products to another EAC country without
the products been tested again for quality standards in that other country.

Some products have been banned from been imported or sold in EAC
countries. For example in Kenya, a full information on banned goods can
be found on; http://www.kebs.org/index.php?opt=qai&view=banned#.

Products that do not meet the required minimum standards are either
destroyed or re-exported with supervision of the government agency in
charge of ensuring standards.
3.3.3 Internal Taxes
The major internal taxes affecting goods (manufactured and semi-processed)
is Value Added Tax (VAT) and Excise Tax. The following table shows the
applicable rate of VAT and excise rates for manufactured/semi-processed
goods coming from outside the country, by each EAC country. Usually a
trader will be required to pay these taxes before his/her goods are cleared for
sale or circulation in the importing country.
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Table 5: Rate of VAT and Excise Tax across the East African Community
EAC Partner State
Country
Kenya
VAT Rate
Excise Tax
16%
This is also applied on goods coming from
outside the country. Visit the Kenya Revenue
Authority (KRA) for full list of excise rates
applied to different products.
Uganda
18%
This is also applied on goods coming from
outside the country. Visit the Uganda
Revenue Authority (URA) for full list of excise
rates applied to different products.
Tanzania
18%
This is also applied on goods coming from
outside the country. Visit the Tanzania
Revenue Authority (TRA) to get the full list of
rates applied to different products.
Rwanda
18%
This is also applied on goods coming from
outside the country. Visit the Rwanda
Revenue Authority (RRA) for full list of excise
rates applied to different products.
Burundi
18%
This is also applied on goods coming from
outside the country. Visit the Burundi
Revenue Authority (BRA) for full list of excise
rates applied to different products.
Page 26 of 44
Example 3: How does a trader avoid double taxation?
To avoid paying internal taxes twice (i.e paying taxes in the home country and in the
country where the goods will be sold) a trader should ensure that when buying
goods (especially if buying in wholesale or from the factory) he/she should indicate
to the seller that the goods are for export purposes and not for local
consumption2. The seller will, therefore, not include internal tax on the selling price
of goods. However, the trader will be obligated to pay internal taxes in the county
where the goods will be sold.
Example 4: Raha, a Tanzanian business lady, wants to buy 50 (wholly produced)
kitenges from Burundi’s X and Y company and then sell them in Kenya. The selling
price is Tshs 15,000 per Kitenge. If VAT (at the rate of 18& in Tanzania) is included in
the total selling price per Kitenge, this will amount to Tshs 885,000 [750,000+
(18/100*750,000)].
To avoid double taxation, Raha should advise the business/export officer at X and Y
company that the goods are for export and therefore VAT should not be included on
the selling price (invoice). However, when Raha reaches the border of Tanzania
and Kenya, she is required to pay 16% VAT to Kenya’s customs authority before her
kitenges are allowed to enter Kenya for sale.
2
VAT is a consumption tax therefore exports should not be charged VAT. Read more:
http://www.mof.go.tz/mofdocs/revenue/revvat.htm AND http://www.tra.go.tz/index.php/export-procedures OR
http://www.revenue.go.ke/index.php/domestic-taxes/vat/about-vat/how-vat-works
Page 27 of 44
Chart 2: Summary of Process of Clearing Manufactured and Semi-Processed
Goods at the Border for Small-Scale Traders
Step 1
Step 3
• Obtain an Import Clearance Certificate (Certificate of
Conformity) for Products Quality Standarsd from the
country where the goodds will be sold
• Obtain a signed and stamped Simplified Certficate of
Origin from the country where the goods will be sold
• Pay VAT and/or Excise Tax in the country where the
goods will be sold
Step 4
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Table 6: Checklist of Required Documents for Selling in another EAC
Country
Trade
Trading in agricultural
produce
Required Documents
 Genuine Sales Invoice/Receipt or
evidence showing value/cost of produce
 Signed and Stamped Simplified
Certificate of Origin
 Signed and Stamped Import License ( for
sanitary regulations)
Trading in semiprocessed or
manufactured products
 Genuine Sales Invoice/Receipt or
evidence showing value/cost of products
 Signed and Stamped Simplified
Certificate of Origin
 Signed and Stamped Import Clearance
Certificate (for quality products
standards
Page 29 of 44
3.4 Trading in Services
The main rules and procedures relating to trade in services are mainly found
in the EAC Common Market Protocol (CMP). The key rules are those related
to the free movement of temporary service suppliers. Examples of
services suppliers include: independent consultants, business sales persons
and IT maintenance persons.
The EAC Common Market Protocol provides for free movement of temporary
services suppliers under Article 16.6. “Services suppliers” are different from
“workers/or employees” in terms of the regularity, periodicity and continuity
of the services they supply.
The key features of temporary service suppliers are;

The services to be provided are on temporary basis.

The service suppliers is paid in their home country and it is not
necessary for the service supplier to live (even temporarily) in the
host country.

The services supplier has no access to the host country domestic
market as would a worker, and does not benefit from rights that
workers have such as spousal and dependents entitlements or rights
to social security benefits.
Page 30 of 44
Table 7: Differences between temporary services suppliers and workers
Issue
Free Movement of
Workers Regulations
Freedom to Provide
Services Schedule
Basic right
Right of an individual to
apply for and accept
employment
Right of a service provider
(business) to provide
services
Basis of movement
Permanent
Temporary
Length of stay
Long-term
Short-term
Access to labour market
Yes
No
Right to remain
Yes
No, unless period reaches
[five] years
Access to social security
benefits
Yes
No
Where employee paid
Country where worker
moves to
Country where employed
by service provider
Spouse and dependants
Yes
No
Page 31 of 44
Q: What are the specific rules relating to temporary service suppliers?
Despite the differences between temporary service suppliers and workers,
there are currently no separate rules in the EAC. The regulations on
movement of workers also apply to movement of temporary service
suppliers. The regulations on movement of workers are discussed in
paragraph 5.0 below.
New dawn for temporary service suppliers!
After much deliberation and negotiations, EAC Partner States have committed to
develop a separate set of regulations for temporary services suppliers. Negotiations
are expected to commence in November 2014 and should lead to new and less strict
regulations governing movement of temporary service suppliers.
Page 32 of 44
SECTION 4: REGULATIONS
MOVEMENT OF PERSONS
ON
FREE
Free movement of persons (human beings) is provided for under Article 7 of
EAC Common Market Protocol. Movement of traders/business people
(except services suppliers OR those wishing to move to3 and stay) falls under
this section.
A citizen of an EAC country can enter and remain in another EAC country
without a visa for purposes of visiting, seeking medical treatment, transiting,
undertaking studies or any other lawful purpose for a period of up to 6
months with a possibility of renewal. The immigration officer has the right
to give one a period between one (1) day to six (6) months.
It is important to note, that a person entering an EAC country for purposes
of employment or work is NOT covered under this provision and therefore
different requirements apply which are discussed under Section 5.
In order to benefit from this right, a citizen of an EAC Partner State Country
must have;

a valid travel document, i.e. passport or temporary pass document

comply with immigration procedures e.g. filling in the required
immigration forms, and getting the right medical vaccinations such as
yellow fever vaccination.
Tanzania for example requires that persons
3
Read more on Right of Establishment in the EAC for those wishing to move to and stay in an EAC
Country, file:///C:/Users/Admin/Downloads/Annex%20on%20the%20Right%20of%20Establishment%20(1).pdf
Page 33 of 44
entering Tanzania must be vaccinated against yellow fever.
It is important to note that no payment or fee is required for immigration
forms or the six months stamp.
Q: Does a trader require a travel document to enter another EAC
partner state country?
Yes. A trader will need a valid travel document usually a passport or
temporary pass. Kenya, Uganda and Rwanda recognize National Identity
Cards as valid travel documents.
Q: Can a trader live and establish a business in another EAC partner
state country?
Yes. However, the trader will need to apply for a residence permit. He/she
will also need to register the business in accordance with the regulations of
that country.
Page 34 of 44
SECTION 5: REGULATIONS ON MOVEMENT
OF WORKERS
Article 10 of the Common Market Protocol provides that citizens of EAC
countries have a right to seek and take-up employment in another EAC
country. Workers also have right to social security, rights for their
dependents (i.e. spouse and children), the freedom of association and
collective bargaining, as well as opportunity for dispute settlement.
Q: Is one required to have a permit to work in an EAC country?
Yes. In order to work in another EAC country, a worker is required to have a
valid work permit.
For one to apply for a work permit, the person is
required to have;
 A valid passport;
 A contract of employment and;
 Any other document(s) that the authorities may require.
All work permit application must be made within 15 days of entering into
the host (other) country, or within 15 days from the date of concluding
the contract in the case where the worker is already in the host (other)
country. The worker and his/her dependents will also be given a pass to
remain in the host county for a period of 6 months pending the processing of
the work permit.
Page 35 of 44
In cases where employment does not exceed more than 90 working days,
workers can apply for a special pass which can be issued at the point of
entry into the host country upon presentation of a contract and a valid travel
document.
Q: Is one required to pay fee in order to obtain a work permit?
The EAC Common Market Protocol directs that EAC countries to harmonize
work permit fees. However, this has not been implemented to date and EAC
countries apply different work permit fees.
Kenya and Rwanda have waived work permit fees for citizens of EAC partner
countries.
Uganda has also waived work permit fees for Kenyan and
Rwandan citizens. However, Tanzanian and Burundi still treat all citizens of
the EAC countries as non-EAC citizens with respect to work permit fees. This
means one must pay a fee in order to obtain a work permit.
Q: What is the procedure to be followed when a worker stops working?
In the event where a worker stops working, he/she is obliged to inform the
competent authority in writing within 15 days.
If he/ she wishes to change employment, the worker is also obliged to
notify authorities in writing within 15 days of ending his/ her employment
and must apply for a new work permit.
Page 36 of 44
Q: What happens if a work permit application is rejected?
In the event that a work permit application has been rejected by the
authorities, the worker will be informed by the authorities in writing
specifying the grounds for the reject. Further, when a work permit is
denied, the authority should give reasonable time for applicant and
his/her dependents reasonable time to leave the country.
Q: Can a work permit be cancelled?
Yes. A work permit can be canceled if a worker/ employee is removed, stops
to be engaged in employment for which the permit was issued or if the permit
was acquired fraudulently.
Where the work permit has been canceled, the worker should either leave
the country or regularize his or her status within 30 days. If the worker
does not comply with the 30day deadline, the host country may remove him/
her back to her country.
The following table summarizes the requirements and procedures for
obtaining work permits in the five partner states.
Page 37 of 44
Table 8: Requirements and procedures for issuing work permits in the EAC
General Conditions Applicable to all EAC Countries
Condition
KENYA
UGANDA
TANZANIA
RWANDA
BURUNDI
Completion
of Applicable
application forms
Applicable
Applicable
Applicable
Applicable
Permit
application
letter should be
addressed
to
the
Director
General
of
Immigration
Letter
of
application for
work
permit
should
be
addressed
to
Inspector
General
of
Labour
Attachment
of Applicable
Passport
Size
2 photos
Photographs
Applicable
Applicable
Applicable
Applicable
2 photos
6 photos
1 photo
2 photos
Copy
of
the Applicable
National Passport
Applicable
Applicable.
Applicable.
The
Passport
should
be
valid for not
less than 6
months
Applicable
Attachment
of Applicable
Introduction
Letter
OR Introductio
Curriculum Vitae n letter
Applicable
Applicable
Applicable
Applicable
Introduction
letter
Introduction
letter
Curriculum
Vitae
Curriculum
Vitae
Attachment
Copies
Academic
Certificates
Applicable
Applicable
Applicable
Applicable
of Applicable
of
Preferable
certified
copies
Attachment
of Applicable
Evidence
of
Payment
of
Processing Fees
N/a
N/a
Employment
Contract
Applicable
Applicable
Applicable
Applicable
Applicable
Security Bonds
N/a
Applicable
Applicable
N/a
N/a
Page 38 of 44
N/a
N/a
General Conditions Applicable to all EAC Countries
Condition
KENYA
UGANDA
TANZANIA
RWANDA
BURUNDI
Recommendation N/a
Letter (employer)
from
the
Institution
attached to in
host country
N/a
N/a
Applicable
N/a
Letter of
Conduct
Applicable
N/a
Applicable
in N/a
the
form
of
Police clearance
(original) from
the
country
where you have
lived for the last
6 months
Good N/a
Page 39 of 44
Table 9: Work Permits Fees in Tanzania
Class
Sector
Fees for 2
years
(US $)
A-1
Prospecting and Mining
3,000
A-2
Large Scale Farming
3,000
A-3
Prescribed Profession and consultancy Services
3,000
A-4
Large scale Manufacturing and Processing
2,500
A-5
Large scale agriculture and husbandry
2,000
A-6
Artisans
2,000
A-7
Small scale farming trade, business and fishing
1,000
A-8
Peasants
6
B-1
Specific Employment by Specific Employer
2,000
C-1
Researchers and employees of
Organizations(NGO) duly registered
C-2
Retired Persons
500
C-3
Approved Religious Activities
200
C-4
Winding up affairs of Contract and Sick Persons
200
non-
Governmental 500
Note: Those seeking to work in Zanzibar must make double payments.
This is because the worker must obtain a work permit for both United
Republic of Tanzania and Zanzibar.
Page 40 of 44
Table 10: Work Permits Fees in Burundi
Class
1
Sector
Professionals
Duration
2 years
Fees
3% of
gross
annual
salary
2
Investors or their representatives
3
Foreigners
born
and
living
Permanent
FREE
in Permanent
FREE
Burundi
4
Staying for more than 20 years
5 years
FREE
5
A spouse of a Burundian
Permanent
FREE
6
Refugees
5 years
FREE
Table 11: Work Permit Fees in Uganda
CATEGORY OF WORK PERMIT
FEES IN
US $
Category 1: 6 months work permit
a) Class B (agriculture)
b) Class C (Mining)
c) Class E (Manufacturing)
d) Class F (Professional)
e) Class G (Expatriate Employment
Category 2: 12 months work permit
a) Class B (agriculture)
b) Class C (Mining)
c) Class D (Business persons)
d) Class E (Manufacturing)
e) Class F (Professional)
f) Class G (Expatriate Employment
Category 3: 24 months work permits
a) Class B (agriculture)
b) Class C (Mining)
c) Class E (Manufacturing)
d) Class F (Professional)
e) Class G (Expatriate Employment
Category 4: 36 months work permits
a) Class B (agriculture)
b) Class C (Mining)
c) Class E (Manufacturing)
Page 41 of 44
800
800
800
800
800
2,500
2,500
2,500
2,500
2,500
2,500
4,000
4,000
4,000
4,000
4,000
5,000
5,000
5,000
d) Class F (Professional)
e) Class G (Expatriate Employment
5,000
5,000
Table 12: Checklist of Required Documents for Business Persons,
Workers and Temporary Service Suppliers
Category
Business
Persons/Trader
Required Documents
 Valid travel document i.e National
Identification Card( for some cases),
passport or temporary pass
 Some evidence of intended trading
activity i.e invoice, Certificate of Origin
or Purchase Order
 Signed and Stamped Immigration Stamp
Workers
 Valid travel document i.e National
Identification Card ( for some cases),
passport or temporary pass
 Work permit OR special pass( pending the
processing of work permit)
 Signed and Stamped Immigration Stamp
Temporary service
suppliers
 Valid travel document i.e National
Identification Card (for some Countries),
passport or temporary pass
 Work permit OR special pass( pending the
processing of work permit)
 Signed and Stamped Immigration Stamp
Page 42 of 44
SECTION 6: KEY SUPPORT SERVICES FOR
TRADERS
Goods clearing, customs and immigration services are most in use by
traders. However, traders should also endeavor to obtain additional support
services that can help secure and grow their businesses. These services
include;
1. National social security; all EAC partner states countries have rolled out
national social security funds. These funds are important as they help an
individual save for retirement or when unable to conduct normal daily
activities due to illness or accidents. Traders who are self-employed can
apply to be members of the funds and after been accepted to the fund,
pay a monthly contribution.
Table 12: Fee payable by self-employed persons in EAC Partner States
Country
Contribution
currency)
Kenya
Kshs 2004
Uganda
TBC
Tanzania
Rwanda
Minimum contribution is Tshs
20,000 but one can contribute more
depending on earnings.
6% of the declared fixed salary
Burundi
TBC
4
per
This might soon change to a minimum contribution of Kshs 150
Page 43 of 44
month(
local
2. Insurance services – an insurance cover is important in order to secure
the trader’s goods and business. Most insurance companies in the region
have developed innovative and affordable insurance covers that be
accessed by small-scale traders.
3. Legal services- it is important to retain the services of a lawyer to assist,
especially,
in
drafting
and
interpretation
of
legal
contracts
and
documents. This will ensure that the trader does not loss his/her
property, does not breach legal commitments or become liable under
contracts.
These services can be obtained from National Chambers of
Commerce usually at a small fee.
4. National hospital Funds- all partner states have put in place in national
health insurance funds and it is important for trader to join such funds in
order to receive financial support from the government for health services.
Huge medical bills can lead to the collapse of business, if the business
person is solely depending on his/her business to pay for medical bills.
Page 44 of 44