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EAC, Common External Tariff (CET)

Trade Principal Secretary Johnson Weru in a statement released on 14th September stated that UK is demanding that its exports to Kenya be exempted from the newly raised Common External Tariff (CET) tax charges that took effect on 1st July and that the country should abide by the provisions of an Economic Partnership Agreement (EPA) signed between the two nations on 8th December 2020.

The EAC Common External Tariff (CET) requires all imports entering the block to be raised by up to 35 per cent effective from 1st July 2022.The levy is imposed on imported finished products from non-member States in a strategy to stimulate local industry and production. The new levy affects a tax band of products including iron and steel, edible oils, furniture, leather products, and fresh-cut flowers, fruits, nuts, sugar and confectionery, coffee, tea, spices, head gears, ceramic products and paints. If the request to abide by the EPA is granted, this presents a challenge to the implementation of the new CET and could trigger similar demands from other nations.

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