TRADING IN THE ECOWAS
FREE TRADE AREA
ECOWAS Trade Liberalization
Scheme Rules for Traders
Contents
Contents
5
Definition of terms and acronyms
7
What is the ETLS ?
9
Who can benefit from the ETLS ?
11
What goods can benefit from the ETLS ?
12
How to get a Certificate of Origin
for industrial goods?
14
What are the steps for manufacturers of
industrial goods to trade under the ETLS?
15
What documents are needed for applying
for acceptance into the ETLS ?
19
23
Where can I get information on the ETLS?
Frequently Asked Questions
TRADING IN THE ECOWAS FREE TRADE AREA
E C O WA S Tr a d e L i b e r a l i z a t i o n S c h e m e R u l e s f o r Tr a d e r s
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Definition of terms and acronyms
Definition
of terms and acronyms
•Common Market : In a Common Market there are no barriers to the movement
of goods, services and factors of production.
•Customs Union : A customs union is a free trade area in which members
also determine and apply a common external tariff (customs duties) to goods
originating from a third country.
•ECOWAS : Economic Community of West African States.
BENIN
BURKINA FASO
CABO VERDE
COTE D’IVOIRE
GAMBIE
GHANA
GUINEA
GUINEA-BISSAU
LIBERIA
MALI
NIGER
NIGERIA
SENEGAL
SIERRA LEONE
TOGO
•ECOWAS Certificate of Origin : The certificate that identifies and confirms
goods as originating in ECOWAS and therefore eligible to benefit from ETLS.
•ETLS : ECOWAS Trade Liberalization Scheme.
•Ex-Factory Price : This refers to the price of the product at the factory gate.
It is made up of all production costs with the exception of profit tax, Value
Added Tax (VAT) and turnover tax.
•Free Trade Area : A free trade area consists of a group of countries that
remove the tariff and non tariff barriers to the imports originating from
another country of the same free trade area.
•Member States : These are the 15 member countries that make up ECOWAS.
•Tariff : A financial charge in form of a tax imposed on imported products.
(There are also export tariffs but these are uncommon.)
• Third Country : Any country that is not one of the 15 ECOWAS countries.
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What is the ETLS
What is the ETLS ?
A
rticle 3 of the ECOWAS revised treaty highlights one of the main objectives
of ECOWAS as promoting economic integration in the region by, among
others, creating a common market. One essential step towards realising
this objective was the setting up of the ECOWAS Trade Liberalization Scheme
(ETLS). The ETLS is a tool to facilitate the working of the Free Trade Area. It
ensures that goods can be circulated freely without the payment of customs
duties and taxes with similar effects on imports. Aside from this, it also includes
putting in place measures aimed at facilitating trade by reducing red tape and
paperwork at borders.
The ETLS came into existence first in 1979 and only covered agricultural
goods and artisan handcrafted products at that point. However, in 1990 it was
expanded to also include industrial goods. This expansion created the need for
rules defining the notion of ECOWAS “originating products”. “Rules of Origin”
were therefore spelt out (see page 13). An industrial good which complies with
these Rules of Origin is eligible to benefit from ETLS.
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Who can benefit from the ETLS ?
Who can benefit from the ETLS ?
T
he ETLS is open to every enterprise located and operating in any of the 15
ECOWAS Member States that intend to export the product within the region.
All enterprises are bound by the rules spelt out in the protocols and regulations
governing the ETLS, in particular :
Protocol A/P1/1/03 of 31st January 2003 and
Regulations C/REG.3/4/02, C/REG.4/4/02, C/REG.5/4/02 of 23 April 2002
(available on www.etls.ecowas.int, www.ecowas.int, from the ECOWAS
Commission and ECOWAS National Units).
Enterprises from Export Processing Zones or Free Zones and any other special
economic schemes or customs territory may not benefit from the ETLS.
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What goods can benefit from the ETLS ?
What goods can benefit
from the ETLS?
T
he following product groups benefit from ETLS, provided they originate
from the ECOWAS region :
• agricultural and livestock products
• fishery products from the sea, rivers or lakes
• mining products
• artisanal handicrafts
• industrial goods
The following goods do not require an ETLS Certificate of Origin to be traded duty
free within the region but the appropriate sanitary and phytosanitary certificates
must be obtained at the countries of origin for agricultural goods :
• agricultural and livestock products
• handmade articles manufactured with or without the use of tools,
instruments, or implements directly operated by the craftsman
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12
How to get a Certificate of Origin for industrial goods ?
How to get a Certificate of
Origin for industrial goods?
I
f an enterprise wants to trade industrial goods duty-free within the region, it
needs a Certificate of Origin. It will get this certificate, if the product complies
with one of the following rules. These “Rules of Origin” define whether an
industrial product can be considered as originating from the ECOWAS region.
Rule 1 : Wholly Produced Goods
Goods are regarded as wholly produced within ECOWAS, if at least 60% of the total
quantity of raw materials used originate from the ECOWAS region.
Rule 2 : Change in Tariff Heading
Every product can be classified according to a list developed by the World Customs
Organisation (the HS tariff classification). This list is made up of numbers broken
down in :
• “Chapters”- 2 digits,
• “Headings”- 4 digits and
• “Sub-headings”- 6 digits.
If the finished product requires the exclusive use of materials which are classified
under a different tariff heading from that of the finished product, it can be traded
duty-free.
There is a list of exceptions to this rule mentioning the cases where the change in
tariff heading is not substantial enough to grant originating status.
Rule 3 : Value Added Criteria
If input materials receive a value addition of at least 30% of the ex-factory price of the
finished goods, the goods are considered as originating from the region and can be
traded duty-free within the region.
Exemption from customs duties and from taxes with similar effects
does not however include Value Added Tax (VAT) and excise duties if
they prevail in a Member State.
Please note that industrial goods in transit, proceeding to and from
Member States are exempt from customs duties and taxes with
similar effect.
TRADING IN THE ECOWAS FREE TRADE AREA
E C O WA S Tr a d e L i b e r a l i z a t i o n S c h e m e R u l e s f o r T r a d e r s
TRADING IN THE ECOWAS FREE TRADE AREA
E C O WA S Tr a d e L i b e r a l i z a t i o n S c h e m e R u l e s f o r Tr a d e r s
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What are the steps for manufacturers of industrial goods to trade under the ETLS ?
What are the steps for
manufacturers of industrial goods
to trade under the ETLS?
• First, collect an application form from the competent authority in your country
which is designated for that purpose (see below for a list of focal points in each
Member State).
• Fill out and send these application forms back to the competent authority who
forwards the applications to a Committee responsible for the ETLS known as the
National Approvals Committee (NAC).
• Wait for the applications to be reviewed by the National Approvals Committee.
• The list of approved and disapproved enterprises is submitted to the ECOWAS
Commission for validation and notification to all ECOWAS Member States.
• The competent authority notifies you when the products are approved. You can
now apply for the Certificate of Origin. A Certificate of Origin is valid for 6 months
commencing from the date of its issuance. However, it is valid for one product
only.
What documents are needed for applying for acceptance into the ETLS?
What documents are needed
for applying for acceptance
into the ETLS?
• An ETLS application form containing :
- A full description of the identity
of the enterprise.
- A full description of goods and raw materials
used in the production in sufficient detail and
in accordance with the commercial practise.
- A full description of the manufacturing
process and the items and all other costs
such as salaries and wages.
• Copies of statutes, company certificates
and all documents to support company
registration.
• Export your goods to any of the 15 ECOWAS Member States duty free using
your Certificate of Origin. Please ensure to have your certificate in hand before
attempting to export.
TRADING IN THE ECOWAS FREE TRADE AREA
E C O WA S Tr a d e L i b e r a l i z a t i o n S c h e m e R u l e s f o r T r a d e r s
TRADING IN THE ECOWAS FREE TRADE AREA
E C O WA S Tr a d e L i b e r a l i z a t i o n S c h e m e R u l e s f o r Tr a d e r s
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Where can I get information on the ETLS ?
Where can I get
information on the ETLS ?
Find out more about the ETLS from the website www.etls.ecowas.int
or from your national authority in charge of ETLS matters :
COUNTRY
NAME AND ADDRESS OF FOCAL POINT
TELEPHONE & EMAIL ADDRESS
BENIN
MINISTERE DE L’ECONOMIE ET DES FINANCES
(DIRECTION DE L’INTEGRATION REGIONALE)
ADDRESS : BP 302 COTONOU
TEL : +229 21 30 50 26 /21 30 81 74
CEL : +229 95 28 96 99 /96 16 13 13
EMAIL : zinsoudu@yahoo.fr
zinsoudu@gmail.com
DESK OFFICER : TCHEKOUNOU DANIEL
BURKINA FASO
CABO VERDE
DIRECTION GENERALE
DU DEVELOPPEMENT INDUSTRIEL
ADDRESS : 01 BP 258 OUGADOUGOU
01-BURKINA FASO
DESK OFFICER : M. ZOUNGRANA
TEL: +226 78 20 22 20
EMAIL: zoum77@yahoo.fr
MINISTERE DU TOURISME DE L’INDUSTRIE
ET DE L’ENERGIE.
(DIRECTION GENERALE DE L’INDUSTRIE
ET DU COMMERCE)
TEL : +238 260 48 20
CEL : +238 910 30 10
EMAIL : pedro.Estevao@mtie.gov.cv
DESK OFFICER : PEDRO GOMES ESTAVÃO
COTE D’IVOIRE
MINISTERE DE L’INTEGRATION AFRICAINE
ADDRESS : 01 BP 7661 ABJ 01
DESK OFFICER : ATTE DOFFOU
TEL: +225 01 10 50 80
EMAIL: doffoupaul@yahoo.fr
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Where can I get information on the ETLS ?
COUNTRY
NAME AND ADDRESS OF FOCAL POINT
TELEPHONE & EMAIL ADDRESS
THE GAMBIA
MINISTRY OF TRADE, INDUSTRY, REGIONAL
INTEGRATION & EMPLOYMENT
ADDRESS : INDEPENDENCE DRIVE,
BANJUL
DESK OFFICER : ABDOULIE JAMMEH
(DIRECTOR OF TRADE)
TEL: +220 422 88 68
abdouliejam@yahoo.com
MINISTRY OF FOREIGN AFFAIRS
& REGIONAL INTEGRATION
ADDRESS : P. O. BOX M53 ACCRA
DESK OFFICER : EMMANUEL QUAD
(DIRECTOR AFRICA & REGIONAL
INTEGRATION BUREAU)
TEL: +233 244 23 40 26
EMAIL: emmanuelq@hotmail.com
MINISTERE DE LA COOPERATION
INTERNATIONALE
ADDRESS : BP 1210 Conakry-Guinea
DESK OFFICER : DR DJIGUIBA SY SAVANE
(DIRECTEUR GENERAL DE L’INTEGRATION
AFRICAINE)
TEL: +224 60 21 10 19
EMAIL: mordjisysavane@yahoo.fr
DIRECTION GENERAL DE L’INDUSTRIE
TEL: +245 685 68 72
+245 596 87 57
EMAIL: suleimanejalo@yahoo.com.br
GHANA
GUINEA
GUINEA-BISSAU
DESK OFFICER : SULEIMANE JALO
LIBERIA
MINISTRY OF PLANNING
& ECONOMIC AFFAIRS
DESK OFFICER : ALVIN JOHNSON
MINISTRY OF FINANCE
MALI
MINISTERE DES MALIENS DE L’EXTERIEUR
ET DE L’INTEGRATION AFRICAINE BAMAKO
TEL: +231 652 74 02
CEL: +231 685 11 41
+231 652 74 02
EMAIL: alvingjo@yahoo.com
TEL : +223 667 162 97
EMAIL : idrissaktraore@gmail.com
DESK OFFICER : IDRISSA TRAORE
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Where can I get information on the ETLS ?
COUNTRY
NAME AND ADDRESS OF FOCAL POINT
TELEPHONE & EMAIL ADDRESS
NIGER
MINISTERE DU DEVELOPPEMENT INDUSTRIEL,
ARTISANAT ET TOURISME
ADDRESS : BP 480
TEL: +227 20 73 58 25
CEL: +227 90 31 20 45/96 88 93 74
EMAIL : nouhouadama@yahoo.fr
DESK OFFICER : ADAMA NOUHOU
(DIRECTION DE LA PROMOTION
INDUSTRIELLE)
NIGERIA
MINISTRY OF FOREIGN AFFAIRS,
ECOWAS DIVISION
DESK OFFICER :
MR ADESOYE SAMOTU
BEATRICE ARCHIBONG
SENEGAL
SIERRA LEONE
TEL: +234 7035800840
CEL: +234 8037053911
EMAIL: adesam95@yahoo.com
adesam95@gmail.com
CEL: +234 8059655843
EMAIL: uyainne@yahoo.co.uk
MINISTERE DES MINES, DE L’INDUSTRIE,
DE L’AGRO-INDUSTRIE ET DES PME.
ADDRESS : 122 Bis, Avenue André
Peytavin BP 4037 Dakar-Sénégal.
TEL: +221 33 889 57 57
Fax: +221 33 822 55 94
LA DIRECTION NATIONALE DE L’INDUSTRIE.
DESK OFFICER : BOUBACAR DIEME
ADDRESS :
104, Rue Carnot BP 4037 Dakar-RP
TEL/Fax : +221 33 822 04 20
TEL: +221 33 822 04 15
+221 77 641 64 55
EMAIL : dieme_ediataye53@yahoo.fr
MINISTRY OF TRADE & INDUSTRY
ADDRESS : Ministry of Trade & Industry
6th Floor, Youyi Building, Brookfields,
Freetown Sierra Leone.
DESK OFFICER : BENGA YOUSUF
EMAIL : freebenga@yahoo.com
TOGO
CEDEAO
MINISTRY OF INDUSTRY
TEL: +228 995 83 75
DESK OFFICER : ATTITSOKOKOU BIAVA
EMAIL : attitsokokou@yahoo.fr
ECOWAS COMMISSION
CUSTOMS DIRECTORATE
EMAIL: etls-sle@ecowas.int
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Frequently Asked Questions
Frequently Asked Questions
• How often can I use my Certificate of Origin ?
The Certificate of Origin can be used each time you export and is valid for 6 months
from the date of its issuance.
• Can I use one Certificate of Origin to export to different or several countries ?
No, the ETLS Certificate of Origin is issued for one specific product and can only
be used for one specific recipient (with name, trade name and complete address)
of the ECOWAS region.
• Can one Certificate of Origin be used for several products so long as it is
the same enterprise?
No, each Certificate of Origin covers one type of good and so applications must
be made for each type of good that is to be exported.
• What national rules and regulations do I need to know when I export
under the ETLS ?
Before you export a good, you must make enquiries regarding the national rules
in the destination country, especially with regards to norms and quality.
• Are there taxes which I have to pay despite the approval of my product
into ETLS ?
Yes, even an approved product has to pay Value Added Tax (VAT) and, if applicable,
excise duties.
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TRADING IN THE ECOWAS
FREE TRADE AREA
ECOWAS Trade Liberalization
Scheme Rules for Traders
ECOWAS COMMISSION
Customs Directorate
101, Yakubu Gowon Crescent
Abuja, Nigeria 1st edition : 2012
germany – ecowas
ZUSAMMENARBEIT DEUTSCHLAND – ECOWAS