Introduction:
The East African Community Customs Management Act (EACCMA), 2004 was enacted to
provide a uniform customs law for the partner states of the East African Community (EAC).
The Act came into effect on 1 st January 2005 and governs the administration, enforcement, and
regulation of customs activities within the EAC member countries (Kenya, Uganda, Tanzania,
Rwanda, Burundi, and South Sudan).
Objectives of East Africa Community Customs Union
i. Make trade easier between countries; they want to allow goods to move more freely
between EAC countries. Example: A business in Tanzania can sell its products easily to
Uganda without too many taxes or restrictions.
ii.Increase Production Efficiency; Encourage companies in East Africa to produce goods
more efficiently, making better use of resources and saving costs. Example: A Kenyan
factory making clothes can produce more at lower costs and sell faster across East Africa.
iii.Boost Investment; Help businesses invest not only inside their own countries but also
across East Africa. Example: A Rwandan company can set up a factory in Tanzania
without many problems.
iv.Promote Economic Growth; Help the whole East Africa region grow economically and
industrially by working together. Example: Building industries like food processing and
manufacturing across all member countries.
Scope of Cooperation in the East Africa Customs Union
i.Customs administration; Work together to manage goods entering and leaving countries
like shared system for checking goods at borders.
ii.Trade liberalization; Reduce or remove taxes and barriers on goods traded between
EAC countries through eliminating internal tariffs and non-tariff barriers among partner
states. Example: No heavy taxes for sugar moving from Uganda to Kenya. To establish a
Customs Union among the Partner States
iii.Trade remedies; Take steps to protect local industries from unfair competition such as
Imposing special taxes if cheap imports threaten local farmers.
iv. National and joint institutional arrangements; Create and support local and regional
offices to manage the customs union and each country has a customs office that connects
with others.
v. Trade related aspects including the simplification and harmonization of trade
documentation, customs regulation and procedure.
TAXATION-CUSTOMS LAW TO EACCMA 2004
Under the East African Community Customs Management Act
(EACCMA), "custom" generally refers to the body of rules, laws,
and procedures established and administered by the customs
authorities of the EAC Partner States (Burundi, Kenya, Rwanda,
South Sudan, Tanzania, and Uganda) to regulate the movement of
goods into, out of, and within the customs territory of the East
African Community.It encompasses various aspects, including;
a.Import and Export Procedures: The processes and documentation
required for bringing goods into and taking them out of the EAC.
Importation Procedures
• Some of the regulatory authorities involved in
the importation of goods include; the
– Tanzania Food and and Nutrition Centre(TFNC),
– Tanzania Medicines & Medical Devices Authority (TMDA)
– Tanzania Bureau of Standards (TBS),
– Tanzania Radiation Commission,
– Ministry of Agriculture for phytosanitory services,
– Tanzania Pesticides Research Institute.
• The roles played by these regulatory authorities are
the certification, verification and testing the
quality and/or standards of imported goods
b.Tariffs and Duties: The taxes imposed on imported goods and the
rules governing their application and collection.
C.Rules of Origin: The criteria used to determine the country of
origin of goods, which is crucial for preferential tariff treatment
within the EAC.
d.Customs Offences and Penalties: The illegal acts related to
customs regulations and the punishments for such violations.
e.Warehousing: The procedures for storing goods under customs
control in designated areas.
f.Transit and Transhipment: The regulations governing the
movement of goods through the EAC to a final destination outside
the region or the transfer of goods between different customs
points
There are three types of transits under the East African
Customs Union (EACU), and they encompass:-
• Through Transit involving goods imported from a foreign
country through a customs office of a partner state where
they are entered for transit.
– Then the goods are conveyed in one or more partner states to
another
foreign country after customs clearance at an office of exit in a
partner
state
• Inward Transit covering goods imported for the use in the
upcountry regions of a partner state.
– The goods are entered for Inward Transit at the entry customs
office for
clearance at the upcountry customs office and then subjected to
other
customs formalities which involve clearance for home consumption
or
warehousing at the office
• Outward Transit covering goods which are to be exported
from upcountry station.
– The goods are entered for outward transit at the upcountry
customs
office and conveyed to a customs office of exit where export
procedures
are finalised
g.Trade Facilitation: Measures aimed at simplifying, standardizing,
and harmonizing customs procedures to ease the flow of legitimate
trade.
h.Enforcement: The powers and responsibilities of customs officers
in ensuring compliance with the EACCMA and related regulations,
so that EACCMA is the entire system that governs the flow of goods
and the collection of revenue related to international trade within
the East African Community
: Reasons for imposition of prohibitions and restrictions:
1.Political reasons The state governments do encourage
importation of items or goods that incites or encourage
antagonism or resistance to the government in power. Arms and
weapons that may be used to fight against the government in
power are undesirable and therefore prohibited or restricted.
2. Economic reasons Importation of number of goods has a
serious impact on local industries especially manufacturing,
agriculture and even employment and inflation levels. Duties
imposition plus restriction or prohibitions serve as deterrent
measures to check importation that foster both consumption of
goods not locally available and safeguard local industries.
3. Social reasons, Uncontrolled importation goods has severe
effects on social life especially employment, inflation, behavior
and even faith and belief. Prohibition and restriction of goods
not conforming to the desired social values and interest serve as
measure to check and control such importation of such goods.
4. Security reasons, Prohibition and restriction of goods
considered being dangerous and harmful to security and safety is
necessary to attain a controllable level of the same in any state.
5. Health reasons, Restrictions and prohibitions Importation of
drugs and chemicals approved for use in a given state safeguard
its residents against consumption drugs, chemicals and other
compounds not conforming to the desired health and social
standards.
B: Machinery Provisions under EACCMA
The machinery provisions; Refer to the structures, roles, powers and responsibilities created by
EACCMA to implement and enforce customs management across the region. These provisions
are critical to ensure the smooth and consistent application of the law.
1.Appointment and powers of customs officers
The Commissioner General has the authority to appoint customs officers to oversee and
implement customs operations. Section 4: Appointment of customs officers
Customs officers are granted powers such as examining goods, inspecting records, arresting
offenders and seizing smuggled goods. Section 6: Powers of customs officers
2.Customs control over goods
The Act mandates that all imported, exported, and in-transit goods remain under customs control
until they are properly cleared. This measure is crucial to prevent smuggling, ensure the accurate
collection of duties and maintain compliance with trade laws. Section 12: Customs control of
goods
The following goods shall be subject to Customs control
a.Imported goods, including goods imported through the Post Office, from the time of
importation until delivery for home consumption or until exportation, whichever first
happens;
b. Goods under duty drawback from the time of the claim for duty drawback until
exportation;
c . Goods subject to any export duty from the time when the goods are brought to any
port or place for exportation until exportation;
d.Goods subject to any restriction on exportation from the time the goods are brought to
any port or place for exportation until exportation.
e.Goods on board of any aircraft or vessel whilst within any part or place in a Partner
States.
3.Entry, Declaration and clearance of goods
Importers, exporters and their agents are required to accurately declare goods and submit the
necessary documentation for verification and duty assessment. Goods cannot be removed from
customs areas without proper clearance, ensuring transparency and accountability in trade
activities. Sections 34 to 47: Entry and clearance of goods
Entry
Entry involve submission or furnishing by the owner or agents at the goods the fully particulars
of goods imported with the documentary evidence which include invoice, certificate of origin,
bills of loading and import declaration form
Types of entry
Entering goods for home consumption
When goods are entered for home consumption, it implies that the importer intends to use or sell
the goods within the country immediately. According to S. 60(1) which state “Goods entered for
home consumption or sold shall be removed from a warehouse within fourteen days after such
entry or sale”. All applicable duties and taxes must be paid before the goods are released for
domestic use. Time of duty payment; Import duties are paid at the time of entry before the goods
can be released to the importer. Section 60(1)
Entering goods for warehousing
This is when imported goods are not required immediately and allows the importer to store the
goods in a licensed warehouse without immediate payment of duties. According to S. 48(1) state
that “Where any goods entered to be warehoused are delivered into the custody of the person in
charge of a warehouse, the proper officer shall... take a particular account of such goods...”
Time of duty payment; duties are deferred and only paid when the goods are removed from the
warehouse for local use or export. Section 49(2) state that Duties must be paid before goods are
removed from a warehouse.
Customs Warehouses
• The customs warehouses are the warehouses approved by the CG for the deposit
of the following:-
– Un-entered goods, – Unexamined goods, – Abandoned goods, – Detained goods
and – Seized goods
• Goods are deposited for security and duty
• The owner of the goods pay rent for the services of the warehouse
Customs Warehouses
• Goods imported vide a vessel, aircraft or arriving overland are deposited in the
customs warehouse within 21 days
– from the date the vessel or aircraft commence to discharge or
–after arrival at the frontier in case arrival overland.
Customs Warehouses
• Goods are kept in the warehouse for not more than 30 days.
• If they are not removed within these days, the customs will give a public notice
requiring the removal of the goods from the warehouse within further 30 days from
the date of the notice.
• In case the goods are still not removed after expiration of the period of the public
notice, then they will be presumed to have been abandoned to the customs
– And will subjected to public auction
• The perishable goods and animals are sold by the customs official through either
public auction or privately without giving the public notice
Customs Warehouses
• The period for the removal of goods from the customs warehouses may be
extended if the goods are imported by the following
–Partner state –Government –Diplomatic mission and –Any aid agency
Customs Warehouses
• The proceeds of the sale are applied in the following order of priority
–Duties if any,
–Removal and sale expenses
–The rent and other charges due to customs
–The port charges
–Freight and other related charges
Customs Warehouses
• The unutilized balance of the proceeds will be paid to the owner of the goods if
application for the balance is made within one year from the date of the sale.
• Where the auctioned goods are prohibited or restricted and a condition relating to
restriction is violated then the balance will be
forfeited and paid to customs revenue.
Deemed Customs Warehouse
• The customs warehouse may not be suitable for the deposit of certain goods.
• These goods will be deposited in the places other than the customs warehouse but
they will be deemed to deposited in the customs warehouses.
• Customs is not responsible for the goods deposited in the deemed customs
warehouse
– In addition to rent and other charges payable for the use of the customs
warehouses, the owner of the goods also pays other expenses incurred for securing
and guarding while they are in the deemed customs warehouse. .
Government Warehouses
• It is a warehouse owned and operated by a government for the storage of supplies
and equipment, confiscated property and goods passing through the customs.
• EACCMA 2004 define the warehouse as a place provided by a government of a
partner state and approved by the CG for the deposit of dutiable goods on which
duty has not been paid and which have been entered to be warehoused.
Government Warehouses
• Rent and other charges are paid by the owner of the goods deposited in the
government warehouse.
– In case these expense are not paid, then the goods may be sold in the public
auction to cover for the expenses
• The goods deposited in the government warehouses may be removed from the
warehouse to another Government warehouse at the expense of the customs.
• Customs officials are allowed to take necessary measures for proper custody and
preservation of the goods in the warehouse
• If the Government warehouse is to be closed, the owner of the goods deposited in
the warehouse will be informed by notice in writing.
• The notice must be furnished to the owner of the goods within three months prior
to the proposed date of closing the warehouses
Entry for transit
When goods are transported through a country without being consumed domestically (example:
goods moving from Kenya through Tanzania to Uganda).
Entry for Transshipment
When goods are transferred from one vessel to another at a port without being imported into the
country.
Entry for Export Processing Zone (EPZ)
Goods imported duty-free into special zones for manufacturing or processing for export purposes
only.
4. Warehousing Provisions
The Act provides guidelines for the storage of goods in bonded warehouses under customs
supervision. It outlines procedures for licensing warehouses, conditions for storage, and the
responsibilities of warehouse keepers to maintain the integrity of stored goods.
Section 62: Licensing of warehouses
Sections 63–66: Bonded warehouse operations
5. Valuation and Classification of Goods
To determine the appropriate duties payable, goods must be valued and classified according to
established international standards. This process promotes fairness and consistency in the
assessment of customs duties.
Section 122: Determination of value of imported goods.
6. Appeals and Dispute Resolution
The Act provides mechanisms for importers and exporters to appeal decisions made by customs
authorities. If dissatisfied with a decision, stakeholders can seek administrative review or
escalate the matter to the Customs Tribunal for resolution.
Section 229: Appeal procedures against decisions of the Commissioner
7. Enforcement Measures
Customs officers are authorized to enforce compliance through actions such as seizing smuggled
goods, arresting offenders, and prosecuting violations of customs laws. These measures are
essential to uphold the integrity of the customs system and deter illegal activities.Sections 199–
202: Offenses and penalties
Directorate of custom and commissioner
Directorate of Customs provides the regional strategic direction, policy framework, and coordination,
while the Commissioners in each Partner State are responsible for the direct on-the-ground
implementation and enforcement of the EACCMA within their national borders.
1. The Directorate of Customs at the EAC
a.Policy Initiation and Coordination: The Directorate is responsible for initiating policies on
customs and related trade matters for the entire EAC region. It also coordinates the
implementation of these policies across all Partner States.
b.Monitoring and Evaluation: It monitors the application of the Common External Tariff (CET),
the enforcement of customs laws, and the administration of the Rules of Origin.
c.Trade Facilitation: The Directorate plays a key role in developing and coordinating measures
aimed at simplifying and harmonizing customs procedures to facilitate trade within the EAC.
2. The Commissioners in each Partner State (at the National Revenue Authorities):
a.Implementation and Enforcement: The Commissioners, heading the customs administrations
within their respective Partner States, are directly responsible for implementing and enforcing
the EACCMA and related regulations at the national level.
b.Operational Management: They oversee the day-to-day operations of customs, including
import and export procedures, customs control, warehousing, transit, and transhipment.
c.Revenue Collection: The Commissioners are responsible for the assessment, collection, and
accounting of customs duties and taxes within their jurisdiction.
d.Licensing and Authorizations: They issue licenses to customs agents, operators of bonded
warehouses, and other relevant entities.
e.Border Control: Commissioners are in charge of managing customs controls at ports of entry
and exit to prevent smuggling and ensure compliance.
f.Investigation and Prosecution of Offences: Their mandate includes investigating customs
offences and initiating legal proceedings against offenders.
g.Providing Administrative Assistance: Commissioners are expected to provide administrative
assistance and exchange information with their counterparts in other Partner States to ensure
the proper application of customs laws and the prevention of offences.
Therefore ,EACCMA establishes a framework for applying a common tariff on imports from
outside the EAC, while promoting internal trade through preferential treatment based on the
Rules of Origin. It also provides mechanisms to protect the EAC's domestic industries from unfair
trade practices like dumping and subsidies through the application of anti-dumping and
countervailing duties, alongside outlining specific duty exemptions.
REFERENCES
East African Community Customs Management Act (EACMA), 2004 (Revised Editions 2009,
2017, 2020, 2021).
EAC Customs Management (Amendment) Act, 2019.
EAC Gazette Notice No. 11 of 2023.
Tanzania Revenue Authority (www.tra.go.tz).
East African Community Secretariat (www.eac.int).
Kenya Revenue Authority, Kenya School of Revenue Administration (ikesra.kra.go.ke).
Tanzania Trade Portal (trade.tanzania.go.tz).
Kenya Trade Portal (infotradekenya.go.ke).
