EAC launches new unified system to ease cargo movement

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The East African Community (EAC) has launched the pilot implementation phase of the EAC Bond Guarantee (EACBond) to ease the movement of cargo across the region.

Veronica Muein Nduva, EAC Secretariat Secretary General, said EACBond, the product, is anchored in the EAC Customs Management Act (2004) and developed in alignment with the principles and procedures of the EAC Single Customs Territory.

“This initiative is not only a digital innovation, but also a symbol of our shared resolve to facilitate trade, deepen regional integration, and ensure sustainable economic development across the EAC. I encourage all stakeholders to continue supporting its operationalisation,” she said during the launch ceremony at Sheraton Kampala on August 4 after flagging off two consignments to DRC and South Sudan.

Nduva also noted that the solution comes from extensive collaboration between the EAC Secretariat, Partner States’ Customs administrations, Insurance Regulatory Authorities, Banks, the Private Sector, among others.

The EACBond is primarily designed to boost intra-EAC trade by removing redundant processes and fostering greater private sector participation and confidence in the Single Customs Territory.

For traders, especially Authorised Economic Operators (AEOs), who are considered the most compliant companies, will benefit from a single customs security that covers multiple countries, reducing the number of instruments and transactions required.

According to Jaffer Abdallah, President, Uganda Clearing Industry and Forwarding Association (UCIFA), this will bring huge cost savings on premiums and service charges.

He said the EACBond offers clearing agents a wider choice of guarantors, including banks and the EAC itself, in addition to insurance companies.  He said this increased competition is expected to lower premiums.

Customs authorities stand to gain from reinforced revenue protection through automated risk management tools.

Asadu Kigozi Kisitu, Commissioner of Customs at the Uganda Revenue Authority (URA), noted that the bond's digital nature will enhance the capacity to monitor transit performance and reduce clearance times and bottlenecks at borders.

About the EACBond

 Its core function is to allow the secure movement of goods under customs control across multiple Partner States without requiring separate national bonds for each country. This addresses a long-standing challenge where individual country-specific transit bonds were predominantly manual and sometimes online.

The bond secures the movement of goods in both the Central and Northern EAC corridors, covers warehousing regimes within Partner States, and facilitates temporary imports, such as exhibition plant and machinery.

The system is managed via an online portal, which provides stakeholders with real-time access for creating, tracking, settling, and processing claims related to guarantees. It integrates seamlessly with national customs systems and the EAC Regional Electronic Cargo Tracking System, ensuring transparency and full visibility of cargo journeys.