Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 1 w w w. K R A. g o. k e Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 1 w w w. K R A. g o. k e FREE MOVEMENT OF GOODS, COLLECTION AND ACCOUNTING OF CUSTOMS REVENUE IN THE CUSTOMS UNION By: Wambui Namu 30 th October 2009

Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 2 w w w. K R A. g o. k e Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 2 w w w. K R A. g o. k e Outline Objectives of the EAC Customs Union Free movement of goods Revenue Collection Revenue Accounting Proposed Way Forward

Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 3 w w w. K R A. g o. k e Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 3 w w w. K R A. g o. k e Primary Mandate of Customs Administrations Facilitation of legitimate international trade Revenue collection Protection of society Collection of trade statistics

Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 4 w w w. K R A. g o. k e Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 4 w w w. K R A. g o. k e Objectives of the EAC Customs Union - Article 3 of the Protocol -  To further liberalize intra regional trade in goods  Promote efficiency in production within the Community  Enhance domestic, cross border and foreign investment in the Community  Promote economic development and industrial diversification in the Community

Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 5 w w w. K R A. g o. k e Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 5 w w w. K R A. g o. k e Free movement of goods Key pillars  Internal tariffs eliminated by 2010 in the Community  Fully implement the reviewed CET and avoid stay of CET application for certain goods in some partner states  Total commitment towards fully eliminating the existing non-tariff barriers  Simplify the EAC Rules of Origin

Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 6 w w w. K R A. g o. k e Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 6 w w w. K R A. g o. k e Other cross cutting issues  Regional harmonization of customs procedures to simplify clearance and enhance predictability  Enhanced partnership with non Customs Agencies  Harmonisation of the standards – Prohibitions and restrictions and counterfeits  Enhance joint border management by creating a regional single window for information sharing  Address challenges of multiple membership by partner states in different customs unions  Publicize and disseminate information about the Customs Union Free movement of goods (cont’d)

Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 7 w w w. K R A. g o. k e Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 7 w w w. K R A. g o. k e Revenue Collection modalities  Revenue collection at the first point of entry  Revenue payments at the banks with regional presence, depending on the Model agreed  Harmonization of the domestic taxes collected by customs (VAT & Excise).  Inter connectivity of the customs ICT systems within the Community

Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 8 w w w. K R A. g o. k e Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 8 w w w. K R A. g o. k e Revenue Accounting modalities  Revenue to be apportioned among Partner States depending on the agreed model drawing from other Customs Unions’ experiences.  Payment reconciliations against the customs declarations (residing in our IT Systems) for accountability and audit trail  Formula for financing the EAC institutions  Address the cost of collection

Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 9 w w w. K R A. g o. k e Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 9 w w w. K R A. g o. k e Proposed Way Forward Fast track the free circulation of goods which will in turn spur the flow of services, persons, capital and investments, hence lead to a natural progression to a Common Market Fast track the process of collecting revenue at the first point of entry and determine the appropriate model for apportionment taking into account funding of the EAC institutions Strengthen the existing Legal and Regulatory framework to support a fully fledged Customs Union Political goodwill and total commitment by all economic actors, with emphasis on eliminating the NTBs, is critical

Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 10 w w w. K R A. g o. k e Tulipe Ushuru Tujitegemee 04/08/08 20:33:06 ISO 9001:2000 CERTIFIED Slide 10 w w w. K R A. g o. k e Thank you for Listening