Tom Butime confirms zero tariffs
Jan 06, 2005
<br><br>Imported raw materials used by Ugandan manufacturers will continue to enjoy zero tariffs subject to the approval of an east African verification committee, foreign affairs minister Tom Butime told the Uganda Manufacturers Association (UMA) yesterday.
By Paul Busharizi
Imported raw materials used by Ugandan manufacturers will continue to enjoy zero tariffs subject to the approval of an east African verification committee, foreign affairs minister Tom Butime told the Uganda Manufacturers Association (UMA) yesterday.
There was resistance from Kenya and Tanzania to the zero tariffs on industrial inputs to Uganda, which would otherwise have attracted up to 25% tariff under the new protocol because they are semi-finished or finished imports.
The decision was made at the 9th extraordinary East Africa Community (EAC) Council of Ministers meeting in Arusha on December 30, 2004.
“The council adopted in principle the summit decision of March 1, 2004 to provide protection for Uganda inputs at zero per cent,†Butime said.
“This acceptance, however, will be in accordance with the protocol and therefore a committee will be coming to verify the authenticity of Uganda’s list.â€
A nine-member East African Community committee on trade remedies will carry out the verification exercise, which will vet a list of companies and the imported inputs and decide whether they will enjoy the zero tariff, Butime said.
UMA was happy with the new arrangement and said it gave Ugandan industry a fair chance of survival.
“This is positive and we are moving in the right direction,†UMA chairman Abid Alam told The New Vision.
“For those companies which will be left out they can still appeal to the council of ministers but we believe the bulk of them will be accepted,†he said.
Uganda will enjoy this benefit for the next five years as they adjust their process in readiness to compete with Kenyan and Tanzanian manufacturers.
The December 30 meeting was attended by foreign affairs ministers Jakaya Kikwete of Tanzania, J.K. Arap Koech of Kenya and Butime.
Ministers of finance, trade and officials of the line ministries, revenue authorities and the private sector attended.
The East Africa Customs Union was launched simultaneously among the three partner states on Friday and became effective on January 1, 2005.
The union will give way to free movement of goods, at zero percent duty, among the three EA states, Uganda, Kenya and Tanzania.
Ends
Imported raw materials used by Ugandan manufacturers will continue to enjoy zero tariffs subject to the approval of an east African verification committee, foreign affairs minister Tom Butime told the Uganda Manufacturers Association (UMA) yesterday.
There was resistance from Kenya and Tanzania to the zero tariffs on industrial inputs to Uganda, which would otherwise have attracted up to 25% tariff under the new protocol because they are semi-finished or finished imports.
The decision was made at the 9th extraordinary East Africa Community (EAC) Council of Ministers meeting in Arusha on December 30, 2004.
“The council adopted in principle the summit decision of March 1, 2004 to provide protection for Uganda inputs at zero per cent,†Butime said.
“This acceptance, however, will be in accordance with the protocol and therefore a committee will be coming to verify the authenticity of Uganda’s list.â€
A nine-member East African Community committee on trade remedies will carry out the verification exercise, which will vet a list of companies and the imported inputs and decide whether they will enjoy the zero tariff, Butime said.
UMA was happy with the new arrangement and said it gave Ugandan industry a fair chance of survival.
“This is positive and we are moving in the right direction,†UMA chairman Abid Alam told The New Vision.
“For those companies which will be left out they can still appeal to the council of ministers but we believe the bulk of them will be accepted,†he said.
Uganda will enjoy this benefit for the next five years as they adjust their process in readiness to compete with Kenyan and Tanzanian manufacturers.
The December 30 meeting was attended by foreign affairs ministers Jakaya Kikwete of Tanzania, J.K. Arap Koech of Kenya and Butime.
Ministers of finance, trade and officials of the line ministries, revenue authorities and the private sector attended.
The East Africa Customs Union was launched simultaneously among the three partner states on Friday and became effective on January 1, 2005.
The union will give way to free movement of goods, at zero percent duty, among the three EA states, Uganda, Kenya and Tanzania.
Ends