WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/171/Add.1 
20 December 2006 
 (06-6091) 
Trade Policy Review Body 
25 and 27 October 2006  Original:   English/ 
                 anglais/                  inglés 
  
TRADE POLICY REVIEW 
EAST AFRICAN COMMUNITY 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Mrs. Claudia Uribe (Colombia) 
 This document contains the advance writte n questions, and replies provided by the 
East African Community members.1 
__________________________________________________________________________________  
Organe d'examen des politiques commerciales 
25 et 27 octobre 2006 
 
EXAMEN DES POLITIQUES COMMERCIALES 
COMMUNAUTÉ DE L'AFRIQUE DE L'EST 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. Mme Claudia Uribe (Colombie)  
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par les membres de la Communauté de l'Afrique de l'Est.1 
__________________________________________________________________________________  
Órgano de Examen de las Políticas Comerciales 
25 y 27 de octubre de 2006 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
COMUNIDAD DEL ÁFRICA ORIENTAL 
Acta de la reunión
 
Addendum  
Presidente:  Excma. Sra. Claudia Uribe (Colombia) 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por los miem bros de la Comunidad del África Oriental.1 
 
                                                      
1 In English only./En anglais seulement./En inglés solamente.    WT/TPR/M/171/Add.1 
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  ADVANCE WRITTEN QUESTIONS 
QUESTIONS FROM SINGAPORE 
1. Para 7 of the Secretariat Report states that  the EAC is envisaged to be an economic area, 
although no timetable for this was established, when  the EAC Treaty  entered into force in 2000. 
 Now that it is 6 years since the entry into force of the EAC Treaty, have the EAC Members 
decided on or discussed the time-frame for the establishment of the economic area? 
2. With regard to para 13 of the Secretariat Re port, it would be appreciated if the EAC Members 
could confirm when the  free-trade component of the EAC customs union would be fully established? 
3. Footnote 6 states that the "Council of Minist ers of the EAC is mandated to review the CET 
structure, and approve measures to remedy any adver se effects, on any member state, induced by the 
implementation of the CET or, by exceptional circumstances". 
 Since the entry into force of the EAC, has there been any situation/s of "adverse effects" or 
"exceptional circumstances" that  had require d EAC Ministers to intervene and remedy these 
situation/s? 
4. We welcome the fact that the adoption of the EAC common external tariff in 2005 has led to 
a marked reduction in the applied tariffs of at least two Members of the EAC, ie. Kenya and  
Tanzania.  This is laudable. However, we cannot  but notice the sizeable difference in the CET and 
MFN tariff rates.  In addition,  all three Members have relatively low tariff bindings for all tariff lines 
in the WTO: Kenya (14.9%); Tanzania (13.5%); and Uganda (15.9%). 
 Given the benefits (eg. certainty that it would create for businesses), do the EAC Members 
have plans  to increase their tariff bindings in the WTO. 
5. Para 15 of the Secretariat Report states that EAC negotiations on trade in services are to 
commence in 2006 as part of the EAC common market.  Have these negotiations started?  If so, it 
would be useful if the EAC Members could share  how the services liberalisation process in the EAC 
would be structured? For example, would it be b ased on the GATS structure? If not, what model do 
the EAC plan to use for services liberalisation among themselves? 
QUESTIONS FROM CANADA TANZANIA
 
Report by the Secretariat on the East African Community  
East African Community, Part I) The East Af rican Community (EAC), (2) Legal Framework, 
page 2, paragraph 9 
 The Report states that the 2001-2005 EAC Development Strategy identifies 12 areas of 
cooperation, including tourism. Moreover, the 2006-2010 strategy is described as currently in draft, 
with its adoption expected by the end of 2006.  
1. What are the specific cooperative arrangements cu rrently in place in respect of tourism? What 
new changes, if any, are contemplated under the new 5-year development strategy? WT/TPR/M/171/Add.1 
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  East African Community, Part I) Overview, paragraph 3 
 Unlike Kenya and Uganda, Tanzania is a me mber of the Southern African Development 
Community (SADC).  This overlapping membership  poses certain difficulties for the EAC members, 
mainly because of difference in, inter alia, origin criteria, and intra-regional trade liberalization 
scenarios under the various agreements. 
2. As the United Republic of Tanzania is current ly a member of both the EAC and SADC, could 
the government please articulate its strategy with  respect to its participation in the customs 
unions of these two organisations?   
East African Community, Part II) Trad e Arrangements Involving EAC Members: 
(1) Participation in the WTO; page 7 Paragraph 7 
Canada notes that according to the Secretaria t Report the United Republic of Tanzania was 
“granted an extension of the transition period fo r the implementation of the TRIPS Agreement until 1 
July 2013, which was due to expire on 1 January 2006”.    
3. Canada would be grateful if the United Repub lic of Tanzania could advise whether it is 
considering requesting technical cooperation fro m WIPO or the WTO to enable it to move 
forward towards full implementation of its WTO TRIPS obligations by July 1, 2013.  If so, Canada would be grateful if the United Republic  of Tanzania could advise what might be the 
priority areas? 
East African Community, Other Trade Arrangements,  paragraph 25 et seq 
4. Has there been any move by Tanzania and its EA C partners to maximise the use of Canada's 
LDC Market Access Initiative by cooperating on the production of goods  to coordinate the 
competitiveness of conditionally eligible Kenyan  industry, with those of Tanzania and 
Uganda which are fully eligible?  
Secretariat Report 
 
Part II. Trade and Investment Regimes,  (1) General Framework, Paragraph 1,  page A2-143 
The Secretariat Report notes the dual authority of the Government of the United Republic of 
Tanzania and the Revolutionary Government of Zanz ibar in the area of investment.  Given that the 
investment policies and programs of the two abov e-mentioned authorities are not identical, and in 
light of the fact that the existence of two separat e and distinct investment regimes within the same 
country could be seen as a deterrent by some potential investors… 
5. Could Tanzania indicate if it intends to harmonise its investment regime with that of the 
Government of Zanzibar? 
Part II. Trade and Investment Regimes, (4) In vestment Framework, Paragraph 17, page A2-147 
The Secretariat Report notes that the Investme nt Act allows for “enhanced incentives” for 
investments that are considered to be “strategic to the economy”.   
6. Could Tanzania indicate the specific criteria th at are used to determine if a particular 
investment is “strategic”, what additional in centives are available once an investment has  WT/TPR/M/171/Add.1 
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  been determined to be strategic, and if and ho w this information is made available to potential 
investors? 
Part III. Trade Policies and Practices by Measure, (I) Introduction, page A2-151 
The adoption of the EAC CET in January 2005 le d to a reduction in Tanzania's applied MFN 
tariffs from an average rate of 13.5% at the end of 2003 to 12.9%.  Nonetheless, in addition to 
customs tariffs, certain imports are now subject to a destination inspection fee of 1.2% on the f.o.b. 
value, and to a US$10 customs processing fee, although Tanzania bound other duties and charges on 
the products covered by its tariff binding commitmen ts at zero.  Imports, as well as locally produced 
goods, are also subject to a VAT at a standard rate of 20%, and to excise duties.  Tanzania's tariff 
bindings cover 13.5% of all its tariff lines, with bound ceiling rates of 120% for both agricultural and 
non-agricultural products. 
7. We note that Tanzania's destinati on inspection fee is charged on an ad valorem  basis rather 
than reflecting the cost of the service provided, which is contrary to GATT Article VIII 1 (a). Has Tanzania considered adjus ting this fee to reflect the cost of service?  
Part III. Trade Policies and Practices by Meas ure, (4) Measures Affecting Production and 
Trade, Paragraph 78, page A2-165 
The Secretariat Report notes that although Tanzan ia has made considerable progress in its 
privatisation efforts, a number of significant SOEs, particularly those involving utilities and 
infrastructure, have yet to be dealt with.   
8. Given that the reform process has been underw ay since the early 1990s, could Tanzania 
indicate the measures that it is taking to finalise the privatisation process? 
Part IV. Trade Policies by Sector, (1) Introduction, page A2-170, paragraph 4 
 The Report notes that several state-owned ente rprises in tourism sector have already been 
privatized or concessioned.  
9. What is actually meant by “concessioned”? What are the criteria used to determine whether 
an SOE will be privatized or concessioned? 
Part IV. Trade Policies by Sector: (3) Mining and Energy (i) Mining; page A2-180, 
paragraph 48 
The Report notes that mining is the fastest growing sector in Tanzania's economy: 
contribution to GDP was 3.2% in 2004 and is pr edicted to reach the level of around 10% by 2025 
according to Tanzania's Development Vision 2025.  
10. Given Tanzania's goal for 2025, are Tanzania's existing goals, policies and practices in this 
area expected to remain for some time or are significant changes under consideration in 
any key areas?  
Part IV. Trade Policies by Sector: (3) Mining and Energy, (i) Mining; pages A2-180-181, 
paragraph 49  
11. Has Tanzania conducted a recent evaluation of  its existing regulatory framework or its 
practices in order to ensure continued support from the private sector, which is identified as 
the leader for mining growth? WT/TPR/M/171/Add.1 
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  12. Given Tanzania's stated desire to foster priv ate-sector-led mining growth, can Tanzania please 
provide its rationale for its practice of  conducting extensive company audits of 
firms operating in this sector in Tanzania?  
13. Could Tanzania indicate what it has learned a nd whether changes have been made to its 
regulatory framework or its practices as a direct result of these audits? 
Secretariat Report on the East African Community, Annex 2: Tanzania, IV. Trade Policies by 
Sector, (5) Services, (iv) Tourism, page A2-195, paragraph 118 
 According to the Report, the National Touris m Policy (NTP) of 1999 calls for a repeal of 
existing tourism legislation and re gulations, and the adoption of a Tourism Act that is transparent, 
enforceable, and fair.  In footnote 200, the Report i ndicated that a draft bill for the consolidation and 
amendment of tourism laws was prepared in 2001, with the Tourism Act intending to serve as a legal 
basis for implementing the NTP.  
14. What is the status of the Tourism Act? Wh en is it expected to enter into force? 
Report by the Government of the United Republic of Tanzania 
 
Section 2. Economic Environment: Sector Performance, Mining and Minerals; page 22, 
paragraph 25 
The reports notes that the gemstone mining industry employs more than 700,000 people and 
that these figures could increase dramatically if the trade can be formalized and more value adding activities undertaken in the country.   
15. Is Tanzania offering incentives or taking other st eps to promote investment to add value in the 
gemstone mining sector? 
Section 2. Economic Environment: Sector Perfor mance, Transit Trade; page 22, paragraph 26 
It is note on the report that Tanzania has strong historical bonds with the countries of the 
Great Lakes:  Burundi, Congo DRC, Malawi, Rwa nda, Uganda and Zambia .  Dar es Salaam port 
remains the primary gateway for these countries.   
16. What trade benefits are expected from the take -over by the government port authority of the 
Great Lake ports? 
Section 3. Policy Objectives and Structural Reforms: Economic Infrastructure, Ports and 
Customs, page 27, paragraph 52 
The report stated that “the Economic Refo rm Programme incorporates measures for the 
modernization of Dar es Salaam port and that the Container Terminal has raised efficiency in 
container through-put, and dwell-tim es to internationally competitive levels in spite of rapid 
expansion of economic activity.  Ship turn around time has been reduced from 4.1 days in year 2000 
to 2 days at present, while waiting time has been reduced from 0.5 days to 0.2 days over the same 
duration”. 
17. Nothwistanding that, we have been repor ted of Canadian companies delays and 
unexpected charges in the clearing of their containers. Is this a general problem? What steps are being taken to address it?  WT/TPR/M/171/Add.1 
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  KENYA  
Report by the Secretariat on the East African Community  
East African Community, Summary (1) Economic environment, paragraph 5 
18. Has there been any move by Kenya to maximise use of Canada's LDC Market Access 
Initiative by cumulating the production of goods with Tanzania and Uganda, both eligible as 
countries to gain eligibility for Kenyan goods? 
East African Community, Part VI. Investment Regime; page 10, paragraph 20 
19. Kenya's report states that the Kenya Investment  Authority is implementing the Investment 
Targeting Strategy that focuses on specific se rvice sectors, including tourism. What 
investment initiatives are under consideration for tourism? 
Secretariat Report  
Part II. Measures directly affecting imports (vi) Standards and Technical 
requirements, paragraph 33, page A1-51 
20. The KeBS requirement that most imports be accompanied by a Pre-export Verification of 
Conformity (PVoC) with relevant technical regulation would seem to be a major obstacle to 
smooth flow of trade. How has it worked out in practice? 
Part II. Trade and Investment Regimes, (4) In vestment Framework, Paragraph 16, page A1-51  
The Secretariat Report notes that foreigners can request an investment certificate from the 
Kenya Investment Authority (KIA).  Barring special circumstances (security, environmental, or health 
concerns, etc.), and given that a ll other relevant requirements have been met, said certificate should be 
granted if an investment is deemed by the KIA to be “beneficial in terms of  creation of employment 
for Kenyans, acquisition of new skills and technolog y; and contribution to tax or other government 
revenues.”   
21. Could Kenya please indicate the specific criteria that are used to determine if a particular 
investment complies with the above-mentioned requ irements, and if this information is made 
available to potential investors? 
Part II. Trade and Investment Regimes, (4) In vestment Framework, Paragraph 19, page A1-66  
The Investment Climate Action Plan (ICAP) w as designed to improve the investment climate 
“by addressing, inter alia, the escalating insecurity; inefficient business licensing regime; protracted 
approval procedures for constructi on and development; time-consuming customs, tax administration, 
and business registration procedures; poor land admini stration measures;  and costly electricity hook-
ups”.  
22. Could Kenya comment on any developments a ssociated with the implementation of the 
ICAP? 
Part III. Trade Policies and Practices by Meas ure, (4) Measures Affecting Production and 
Trade, page A1-86, paragraph 85  
The Secretariat Report notes that a new Privati zation Commission was to be established by 
June 2006.   WT/TPR/M/171/Add.1 
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  23. Could Kenya indicate whether this new body has indeed been established and is functioning? 
Part IV. Trade Policies by Sector, (4) Invest ment Framework, page A1-51, paragraph 19 
24. Could Kenya set out some of the approva l procedures required for construction and 
development? 
Part IV. Trade Policies by Sector: (3) Mini ng, Quarrying, and Energy (i) Mining and 
quarrying; page A1-86, paragraph 55   
The Secretariat Report notes that Congress is discussing the draft of a new mining law and a 
new mining licensing system will be introduced. 
25. Could Kenya provide an update on the status of the new mining law? 
26. What principles have been used to develop th e framework of this new mining legislation? 
27. In preparing its new mining legislation, did Ke nya give consideration to the approaches taken 
in other jurisdictions? If "yes", could Keny a provide background information on the process 
which it utilized? 
28. Could Kenya advise as to when its new licensing system will be implemented? 
Part IV. Trade Policies by Sector: (4) Manufacturing, page A1, paragraph 71 
29. What progress is being made in addressing the obstacles to manufacturing sector development 
created by i.a. the unpredictable and wide discre tionary powers of administrators of laws and 
regulations? 
Part IV. Trade Policies by Sector, (5) Services, page A1-94, paragraph 79 
 The report indicates that some of Kenya's re maining SOEs (e.g. Tele kom Kenya Ltd., Kenya 
Commercial Bank, and Kenya Ports Authority)  will be privatized sometime soon.   
30. Can Kenya give a better indication of when the transition for these SOEs may take place? 
Part IV. Trade Policies by Sector: (5) Services,  (iv) Tourism, page A1-106, paragraph 136 
31. The Report states that, according to the EAC Treaty, member states shall, inter alia, 
coordinate their tourism policies, establish common code of conduct for tour and travel 
operators, standardize hotel classifications, and harmonize professional standards of agents in 
the tourism and travel industries. Please provi de an update of efforts in this regard. 
UGANDA
 
Report by the Secretariat on the East African Community  
East African Community. Summary (1) Economic environment, paragraph 4 page v 
32. Has there been any move by Uganda to make greater use of Canada's LDC Market Access 
Initiative by offering to finish Kenyan par tial manufactures, alone or with Tanzania, 
adding enough value to make the final products  eligible for the tariff and quota free entry 
to the Canadian market?    WT/TPR/M/171/Add.1 
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  East African Community. II) Trade Arrangemen ts Involving EAC Members: (1) Participation 
in the WTO; page 7 Paragraph 7 
Canada notes that according to the Secretariat Report the Republic of Uganda was “granted 
an extension of the transition period for th e implementation of the TRIPS Agreement until 
1 July 2013, which was due to e xpire on 1 January 2006”.    
33. Canada would be grateful if the United Re public of Uganda could advise whether it is 
considering requesting technical assistance from WIPO or the WTO to enable it to move 
forward towards full implementation of its WTO TRIPS obligations by July 1, 2013. If so, 
could the Republic of Uganda advise what might be the priority areas? 
Secretariat Report  
Part II. Trade and Investment regimes  (2)  Policy objectives, page A3-227 (19/68) paragraph 11 
34. If by 'regionalization' Uganda sees sectoral speci alization in the region, what does  Uganda 
expect to be its sectors of specialization?  
Part III. Trade Policies and Practices by Meas ure: (2) Measures Directly Affecting Imports 
(iii) Other duties and charges; page A3-235, paragraph 19 
The Report notes that smuggling is a major concern and that a number of actions are being 
taken to address this problem. 
35. What measures is Uganda taking to assist in the elimination of the smuggling of specific 
substances of significant economic value, such as coltan (a tantalum-niobium ore 
mined elsewhere in Africa)? 
Part IV. Trade Policies by Sector: (5) Services, page A3-260, paragraph 76 
36. Could Uganda please provide some more information on the Uganda Export Promotion Board 
mentioned in this paragraph?  For example, what  kinds of programs for services are in place?  
How were the sectors for export focus identified? 
Report by the Government of Uganda  
Section 4. Sectoral Performance, 4.2 Forestry, page 39,  paragraph  22 
37. How are the structural measures taken by Uganda in response to the challenge of 
deforestation expected to work? What are the results so far?  
Part 4. Sectoral Performance, 4.5 Services, 4. 5.2 Wildlife and Tourism,  page 40, paragraph 31 
38. According to Uganda's report, the governmen t has introduced legal and policy reforms to 
promote the growth of tourism. Please elaborate on the specific reforms being contemplated. 
Section 4. Sectoral Performance, 4.5.3 Energy, page 41, paragraph 33 
39. What share of the shortfall in energy produc tion can be addressed by the construction of 
micro and mini hydro electric power generation projects? WT/TPR/M/171/Add.1 
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  HONG KONG, CHINA 
Standards and technical requirements
 
(WT/TPR/S/171, P. 24, Paras. 21-22; WT/TPR/S/171/KEN, P. A1-56&57, Paras. 31&32; 
WT/TPR/S/171/TZA, P. A2-156, Paras. 30-31; WT /TPR/S/171/UGA, P. A3-236, Paras. 25 and 27) 
1. We note the EAC's initiative to remove all non-tariff barriers between Union members.  We 
would like to know whether this initiative would be extended equally to other WTO members. 
2. We are glad to know that standards and tec hnical requirements are applied equally to imports 
and locally produced goods in the EAC.  We also  appreciate efforts of EAC members to harmonise 
their national standards with international or re gional standards (i.e. EAC standards).  Kenya has 
indicated that about 50% of its 4 000 standards are e quivalent to ISO standards.  We are interested to 
know the progress of harmonization of the other two EAC members. 
Insurance  
(WT/TPR/S/171/KEN, P. A1-96 & 97, Paras. 90 & 94)  
3. It is noted that in Kenya the maximum fore ign equity allowed in insurance and reinsurance 
companies is 66.7% and at least one third of the members of the board of directors or management 
board must be citizens of Kenya.  We however  note that in Kenya's GATS schedule of specific 
commitments – 
(a) no foreign equity ceiling has been scheduled  in its mode 3 commitments for “non-life 
insurance” and “re-insurance and retrocession”; and 
(b) no citizenship requirement has been schedul ed in its mode 3 commitments for “life 
insurance”, “non-life insurance” and “re-insurance and retrocession”.  
Could Kenya advise on the compatibility of the subject limitations with its existing GATS 
commitments? 
QUESTIONS FROM THE EUROPEAN COMMUNITIES 
SUMMARY OBSERVATIONS  
(1) T HE ECONOMIC ENVIRONMENT  
 The region has lately been faced with a drought and energy crisis. 
•  Could more information be provided about th e impact of this crisis on the economies? 
I.   T HE EAST AFRICAN COMMUNITY  
•  The EC would be interested in an update  on progress with the roadmap for the Common 
 Market, also in light of Tan zania's declaration that the count ry is not ready to  commit to 
 the initially agreed timetable. 
Domestic Investment 
•  Does EAC believe that double taxation with in EAC is a hindrance to intra-regional 
 investments? Is there a plan to resolve the situation?   WT/TPR/M/171/Add.1 
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  Foreign Investment 
•  How do the EAC countries see foreign investment evolving over the coming years? 
Trade and social issues 
 The Service Sector Export Strategy, adopted by the Uganda Export Promotion Board in 2005, 
identified migrant labour one of five priority sub- sectors for intervention to enhance national capacity 
to export services.  
•  What policies are being put in place to address this issue? 
 The EAC states that labour law reform is one of the priority measures under Better 
Regulation.  
•  What legislation is in place for labour standards, particularly in export sectors? 
•  While some measures have been taken to allo w free movement of labour (e.g. recognition by 
 Kenya of lawyers from Uganda and Tanzania), th is is an area in which further steps could be 
 beneficial. What plans does EAC have to stimulate further mutual recognition of professions? 
 The potential of the services sector remains larg ely unexploited in the EAC. For example, the 
lack of skilled labour is one factor that has limited the development of tourism. 
•  Does the EAC have policies for skills training and working conditions to redress the problem?  
Sustainable development 
•  In what ways does EAC think trade policy can best contribute to sustainable development? 
Trade and environment 
•  What mechanisms does EAC have in place to ensure adequate coordi nation of environmental 
 policy and trade policy?  
II.   T RADE POLICY ARRANGEMENTS INVOLVING EAC MEMBERS  
The Members of the East Afri can Community (EAC) are also involved in several other 
regional groupings such as for example SADC and COMESA.  
• The EC would be interested in further info rmation concerning possible difficulties resulting 
from overlapping of these regional agreements in  certain areas, including, in some cases, 
contradictory commitments. For example, we  understand that EAC and COMESA plan to 
harmonize their Common External Tariffs in the near future. In parallel, Tanzania is a 
member of SADC and grants other SADC me mbers preferences under bilateral protocols. 
How does EAC plan to co-ordinate or harmoni ze these different and sometimes incompatible 
agendas? 
• Does Uganda plan to join the COMESA free trade area? 
• Could information be provided on the state of play of EAC accession negotiations with 
Rwanda and Burundi? WT/TPR/M/171/Add.1 
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  • Could the fact that the individual EAC members are negotiating EPAs with the EC under 
different regional configurations  eventually have an impact on the functioning of the EAC 
customs union? 
TRADE -RELATED TECHNICAL ASSISTANCE (TRTA)   
Tanzania 
• Is the DTIS a fully integrated part of Tanzania's NGPRS? If not, why not? 
Uganda 
• Will the draft DTIS become a fully integrated part  of the Uganda Joint Assistance Strategy? If 
not, why not? 
III.  C OMMON TRADE POLICY MEASURES  
(2) C USTOMS PROCEDURES  
Kenya 
 The EC welcomes the pursuit by Kenya of a customs reform programme.  
• What capacity constraints does Kenya face in taking this programme forward?  
• Has Kenya identified particular technical assistance needs in this field? 
Tanzania 
 The EC welcomes the reform plans of Tanzania's customs service.  
• What services does the destination inspection regime provide?  
• What is the division of tasks between this regime and customs?  
• As the customs service becomes increasingly effective, including through the introduction of 
improved automation (ASYCUDA++), does Tan zania have any plans to phase out the 
destination inspection regime? 
• Given the capacity constraints of Tanzania's  customs service, has Tanzania identified 
particular technical assistance needs in this field? 
Uganda 
• Has Uganda identified particular technical  assistance needs in the customs and Trade 
Facilitation field? 
(3)  T ARIFFS AND OTHER DUTIES AND CHARGES  
 The implementation of the Common External Tariff continues to pose practical difficulties to 
the EAC members. These include, for example, unila teral changes to the CET by one country, non-
application of agreed preferential rates for intra EA C trade, or circumvention of the official border 
controls.   WT/TPR/M/171/Add.1 
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  •  How does EAC plan to tackle these practical difficulties in the application of the CET?  
• Recent reports have concluded that some traders in the EAC bloc continue to transport their 
goods through illegal routes in orde r to evade tax, despite the f act that they can legally be 
exported duty free. If possible, we would be in terested in information on what scale this 
illegal trade is taking place and what me asures are being taken to prevent it? 
During the Uruguay Round, EAC members bound their tariffs individually. These tariffs 
binding commitments leave ample margins fo r discretionary increases in applied rates. 
• Do the EAC countries envisage binding the EAC Common External Tariff?  
(6) S TANDARDS AND OTHER TECHNICAL REQUIREMENTS  
 Article 13 of the Protocol on the Establishm ent of the East African Customs Union obliges 
member states to remove all non-tariffs barriers (N TBs), with immediate effect and not to impose any 
new ones. Furthermore, EAC member states mu st formulate a mechanism for identifying and 
monitoring the removal of NTBs, including st andards and technical requirements.   
• What kind of mechanism is going to be applied to achieve this aim and when? 
(7) E XPORT PROHIBITIONS , RESTRICTIONS , AND LICENSING  
 All three EAC countries maintain export taxes in various areas. 
• Could information be provided on plans to phase out export taxes? 
(9)  C OMPETITION POLICY  
• Do the EAC members plan to co-operate  in the area of competition policy?  
(10) G OVERNMENT PROCUREMENT  
• Could EAC provide statistical data on Government  Procurement contracts established by type 
of contracting entities (central, sub-central/regional/local), object (supply, services, and 
works), suppliers' status (local, foreign, intra-regional)? 
• Does EAC use or envisage using electronic tendering? 
• Is there any government procurement agreem ent between countries? If yes, please describe 
them. 
IV.  T RADE POLICIES BY SECTOR  
TRANSPORT SERVICES  
Kenya 
WTO Secretariat's Report, paragraph 123  It is stated that to further improve effi ciency and competitiveness at Kenyan ports, the 
Government is planning to upgrade Mombassa's port and privatize some of the services.  WT/TPR/M/171/Add.1 
Page 14  
 
  • Could the Kenyan Government provide further de tails of this planned privatisation of port 
services and indicate whether the market will be opened up to foreign operators? 
Tanzania 
WTO Secretariat's Report, paragraph 101 
 There is a significant difference in the pri ce of licenses (per year) for operating passenger 
vehicles that are charged to foreign operators, as opp osed to local operators (over 3 times higher for 
foreign operators). 
• Could the Tanzanian authorities explain why there is a significant difference in the fees paid 
for passenger vehicle licenses by national operators  on the one hand and by foreign operators 
on the other? 
E
NERGY  
Reports by the East African Community  Members,  section 4.3, paragraph 39   
The manufacturing and industry sector is reporte d to be growing most rapidly. However, 
shortages in the energy sector might put further expansion at risk. 
• Could Uganda provide further information about the current situation and future plans for the 
energy sector? 
QUESTIONS FROM THE UNITED STATES  
SECRETARIAT REPORT - WT/TPR/S/171 
1.   We believe there are two inaccuracies in the Secretariat Report, which we would like to draw 
to the attention of the Secretariat. 
In paragraph 32 on page 13, each of the EAC members is described as eligible for AGOA 
benefits in 2004.  Kenya, Tanzania and Uganda, in fact, have been eligible for benefits under 
AGOA since January 2001, February 2002 and October 2001, respectively. 
In Table III.4 on page 23, the last item HS6309. 0000 is listed with a different Applied MFN 
rate.  This is inconsistent with the MFN ra te for the same product listed on page 19 in 
Table III.2.  We believe the figures on page 19 are correct.   
ANNEX 1 – KENYA – WT/TPR/S/171/KEN 
TRADE POLICIES AND PRACTICES BY MEASURE  Measures Directly Affecting Imports – Standards and Technical Requirements – Standardization, 
testing, and certification  
2.   Paragraph 33 on page A1-57 of the Secretar iat Report states “In principle, products covered 
by technical regulations (Table AIII.3) must be in spected in their country of origin prior to their 
import by either SGS or Intertek; the inspec tion fees are to be paid by the importer.”  
Could the representative of Kenya please clarify whether the import inspection program 
described in paragraph 33 is the same as the Pre-Export Verification of Conformity (PVoC), notified in G/TBT/N/KEN/14?    WT/TPR/M/171/Add.1 
 Page 15 
 
 
  Measures Affecting Production and Trade – Intell ectual Property Rights – Legal and institutional 
framework  
3.   According to paragraph 95 on page A1- 68 of the Secretariat Report, Kenya drafted a new 
Geographical Indications bill in 2001, but it is still before Parliament as of May 2006.  
A.  What is the timeframe for implementing the new GI bill?   
B.  Does the draft preserve trademark rights in accordance with Articles 16(1) and 24(5) of 
the TRIPs Agreement with respect to the granti ng of protection for geographical indications?  
Also, does the draft bill protect trademarks from confusingly similar and later in time 
geographical indications?  
Measures Affecting Production and Trade – Intellectual Property Rights – Copyrights  
4.   Paragraph 105 on page A1-71 of the Secretar iat Report states the following:  “Under Section 
36 of the [Kenyan Copyright] Act, producers of sound recordings and audio-visual works must 
request authentication of their work from the Copy right Board.  This has introduced a registration 
requirement for certain copyrights in Kenya, in contrast to general practice.”  Kenya responded to a question regarding Section 36 as part of the TR IPS Council review.  See IP/Q/KEN/1, page 28 
(7 May 2004).  It is our understanding that, while the Copyright Board was created in 2003, it 
currently has no staff and no offices.   
Please explain how requests for authentication unde r Section 36 operate in practice.  Please 
also provide information regarding the number of requests that have been made since the 
Board was created in 2003, and the number of requests that have been granted. 
5.   It has come to our attention that copyright piracy rates in Kenya are extremely high, with rates 
for video and DVD approaching 100%.  Some sources estimate that Kenya has the highest rate of 
business software piracy in Africa.   
Please describe any efforts that are being made to reduce piracy of DVDs and business 
software. 
Measures Affecting Production and Trade – Intellectual Property Rights – Enforcement
 
6.   Paragraph 106 on page A1-72 of the Secretaria t Report explains that an anti-counterfeit bill is 
under preparation.  
Please indicate and summarize the contents, aim and purpose of the anti-counterfeiting bill 
that is currently under consideration. 
7.   We appreciate the information provided on IPR enforcement in paragraphs 106 – 108 on page 
A1-72 of the Secretariat Report.  We would like to request additi onal information on IPR enforcement 
in Kenya. 
A.  Please indicate whether Kenyan Customs officials may prevent the importation of pirated 
or counterfeit goods into Kenya.  If so, please indicate whether the Customs officials may act 
on their own (ex officio authority) or whether they must act only pursuant to a complaint that 
is filed by an aggrieved right holder. 
B.  What remedies are availabl e to trademark owners under the relevant laws and in Kenya's 
civil courts for infringement of their respec tive marks (including any provisional measures 
and ex parte enforcement mechanisms relating to the seizure of infringing merchandise)? WT/TPR/M/171/Add.1 
Page 16  
 
  C.  Does Kenyan law provide judges the authority to order that goods found to be infringing 
be disposed of outside the channels of commerce? 
D.  Does Kenyan law provide judges the author ity to order that materials and implements 
used to create the infringing goods be disposed of  outside the channels of commerce in such a 
manner as to minimize the risks of further infringements? 
E.  Are there any criminal penalties for copyri ght piracy and trademark counterfeiting? If yes, 
please state what the penalties are and indicat e whether Kenyan authorities may bring cases 
on their own or whether they may only act on a complaint from a copyright and/or trademark 
owner.  
Appendix Tables – Table AIII.3 – Products subject to pre-export verification of conformity to 
standards, May 2006  
8.  We note that in Table AIII.3 on page A1- 121 of the Secretariat Report, products from non-
MRA partners are subject to inspection.  
A.  Could the representative of Kenya explain the process for determining which products to 
include on the list?   
B.  Please clarify to which standards these products  are being tested to, and whether there is a 
process for recognizing equivalent standard s?  If so, what is the process?   
C.  Regarding the inspection fee of 0.2%, could the representative of Kenya explain how the 
fee is related to the service being performed?  
Annex 2 - Tanzania - WT/TPR/S/171/TZA  
TRADE POLICIES AND PRACTICES BY MEASURE  
Measures Directly Affecting Imports – Impor t prohibitions, restrictions, and licensing  
9.   We appreciate the import licensing informa tion included in paragra phs 23-24 on page A2-155 
of the Secretariat Report.  However, we note that Tanzania has not submitted any notifications to the 
WTO under the Agreement on Import Licensing Procedures. 
What steps is the Tanzania taking to fulfill its notification requirements under the Agreement 
on Import Licensing Procedures? 
Measures Directly Affecting Imports – Standards and other technical requirements – Standards, 
testing and certification  
10.   We appreciate the information on Tanzania's  standards, testing and certification provided on 
pages 156 and 157 of the Secretariat Report. We note however that Tanzania has not made any 
notifications to the WTO under the Agreement on Technical Barriers to Trade.  
What steps is Tanzania taking to fulfill its notification requirements under the Agreement on 
Technical Barriers to Trade? 
Measures Affecting Production and Trade – Intellectual Property Rights  
11.   According to Paragraph 86 on page A2 -168 of the Secretariat Report, we understand 
Tanzania is currently revising its Trademark and Geographical Indications legislation “to meet WTO 
commitments by 2013.”    WT/TPR/M/171/Add.1 
 Page 17 
 
 
  Will the new legislation provide for the principles of priority and exclusivity as provided for 
in TRIPs between trademarks and geographical  indications in which the preservation of 
trademark rights is maintained when gran ting protection for geographical indications? 
12.   Paragraph 88 on page A2-168 of the Secr etariat Report states that the Copyright and 
Neighboring Rights Act No. 7 of 1999 established th e Copyright Society of Tanzania (COSOTA).   
Could you please describe the functions of this office? 
13.   Paragraph 91 on page A2-169 of the Secretariat Report states that “Tanzania does not 
currently have the resources to enforce its inte llectual property laws but is moving toward active 
enforcement both domestically and at the border.  It is working with the Copyright Collective 
Management Association on enforcement issues.”   
A.  Please indicate what civil and criminal reme dies, if any, are available to trademark and 
copyright owners under the relevant laws and in  Tanzania's courts fo r infringement of their 
respective works and marks. 
B.  Please indicate whether Tanzanian Custom s officials may prevent the importation of 
pirated or counterfeit goods in to Tanzania.  If so, please indicate whether the Customs 
officials may act on their own (ex officio authority) or whether they must act ONLY pursuant 
to a complaint that is filed by an aggrieved right holder. 
Annex 3 – Uganda - WT/TPR/S/171/UGA 
TRADE POLICIES AND PRACTICES BY MEASURE 
Measures Affecting Production and Trade – Intell ectual Property Rights – Legal and institutional 
framework  
14. Paragraph 80 on page A3-245 of the Secretaria t Report states that “Pursuant to the Protocol 
on the Establishment of the EAC Customs Union, its  members states will conclude a protocol on IPR 
protection.”   
Please provide further information about the referenced protocol on IPR protection. 
15.  Table III.5 on page A3-245 of the Secretaria t Report states that Ugandan copyright law has 
exceptions for personal use, teaching, reporting of cu rrent events, and quotations  in the form of short 
excerpts. 
Please provide a full description of these exceptions to the copyright law. 
Measures Affecting Production and Trade – Intellectual Property Rights – Trade marks  
16.   Paragraph 88 on page A3-247 discusses Uga nda's trademark law, the “Trademark Act of 
1964, Amended”.  Upon review of th is law, it is not clear how well known marks are protected.   In 
general, please elaborate as to how "well known marks" are protected in Uganda and respond to the 
following:  
What factors are considered in the determination of a well known mark?   WT/TPR/M/171/Add.1 
Page 18  
 
  Measures Affecting Production and Trade – Intellectual Property Rights – Enforcement
 
17.   Paragraph 89 on page A3 -247 explains that a proposal for the establishment of IPR 
enforcement institutions is before Cabinet.  We would like to request additional information on IPR 
enforcement in Kenya. 
A.  Please indicate the contents, aim and pur pose of the recent proposal concerning the 
“establishment of IPR enforcement institutions” th at is currently under consideration before 
the Cabinet. 
B.  Please indicate what civil and criminal remedies are available to trademark and copyright 
owners under the relevant laws and in Uganda's courts for infringement of their respective 
works and marks. 
C.  Please indicate whether Ugandan Customs officials may prevent the importation of pirated 
or counterfeit goods into Uganda.  If so, pl ease indicate whether the Customs officials may 
act on their own (ex officio authority) or whether they must act only pursuant to a complaint that is filed by an aggrieved right holder. 
QUESTIONS FROM COLOMBIA  
1. Export Processing Zones Scheme in Kenya allows for duty and VAT exemption on imported 
machinery and raw materials. Companies located in  EPZs also benefit from a ten-year corporate, 
income, and withholding tax holiday, exemption from stamp duties, and 100% i nvestment allowance. 
Are all those benefits contingent upon export performance?  
2. Kenya applies an export tax of 25% to hides and skins. What is the policy objective to be 
attained by this export tax?  
QUESTIONS FROM AUSTRALIA For the EAC members collectively II. TRADE ARRANGEMENTS INVOLVING EAC MEMBERS
 
Trade policy generally 
 According to the Secretariat Report, despite recognition of the importance of trade and trade 
policy reform to their development prospects, trade po licy is yet to be systematically integrated into 
the development strategies of EAC members (WT/TP R/S/171, page 7, para 10).  Are there plans to 
develop, within the EAC, an organisational structure to coordinate the formulation and implementation of trade policy either at the national or EAC level?   
Membership of other pref erential trade agreements 
 Given that Kenya and Uganda are also members of the Common Market for Eastern and 
Southern Africa (COMESA) and Tanzania is a member of the Southern African Development 
Community (SADC), how will the EAC members mana ge policy conflicts (for example, differences 
in rules of origin criteria and intra-regional tr ade liberalisation) created by their overlapping 
memberships of other preferential trade agre ements?  (WT/TPR/S/171, page vi, para 10).  WT/TPR/M/171/Add.1 
 Page 19 
 
 
  III. COMMON TRADE POLICY MEASURES  
Competition law 
 At the time of writing of the WTO Secretariat Report, an EAC Competition Law was still 
under consideration.  Could the EAC members provide an update on the progress of the bill?  (WT/TPR/S/171, page 16, para 3) 
Customs procedures and valuation 
 Although the principles of EAC customs proce dures and valuation are provided for in the 
EAC Customs Management Act 2004, the WTO Secret ariat Report notes that in practice, customs 
procedures have not been fully harmonised (WT/TPR/S/171, page 16, para 4).  A recent report compiled by a special committee of the East A frican Legislative Assembly (and table on 
21 September) noted that “national regulations co ntinue to be used to administer the Customs 
Management Act, and is thus c onfusing to citizens" (reported in The East African , September 25-
October 1).  What steps are being taken by the EAC members to harmonise the administration of customs procedures? 
MFN bound and applied tariffs 
 Under the EAC common external tariff, there is an average applied MFN rate of 12.9%, with 
99% of tariff lines carrying rates of 0%, 10% or 25%, and some 58 tariff lines carrying higher rates 
(WT/TPR/S/171, page 17, para 6).  We note that  the maximum tariff band in the proposed COMESA 
Common External Tariff is 30%, but as most CO MESA members have maxi mum tariff bands below 
this, discussion is under way on reduc ing it (WT/TPR/S/171, page 8, para  12).  What is the position of 
the EAC members, of whom Kenya and Uganda ar e also COMESA members, on moving to this 
proposed 30% maximum tariff band? 
 In the area of non-agricultural goods, the EAC' s current average MFN applied tariff is 11.9% 
and there are only 27 lines with a tariff higher than 25% (WT/TPR/S/171, page 19).  Noting that 
under the current framework for the Doha non-ag ricultural market access negotiations, Kenya as a 
paragraph 6 country would bind its tariff lines about an average ad valorem  rate of 28.5, do EAC 
members consider that the EAC common tariff regime provide an obstacle to Kenya binding a high 
proportion, 95% or more, of its tariff lines about this 28.5 average? 
 In the area of agricultural goods, we note that the EAC's maximum tariff band is again 25%, 
with 31 lines carrying higher rates as an excepti on to this (WT/TPR/S/171, page 17-19).  Under the 
current framework in the Doha agriculture ne gotiations, only Kenya of the EAC Members would 
apply the formula to its bound tariffs, all of whic h for agriculture are currently at 100%, and would 
remain above 25% even after full application of  any proposed formula.  Do the EAC members 
envisage a need in the future to  increase substantially applied tariffs on any of the agricultural 
products where the current applied tariffs are at or  below 25%, and if so under what circumstances?   
Duty and tax exemptions and concessions 
 When will the EAC members harmonise duty a nd tax exemptions?  (WT/TPR/S/171, page 23 
para 13) 
Other duties and charges 
 The Secretariat Report states that the only im port duty provided for by the EAC trade regime 
are tariffs, yet members have individually imposed and bound other duties and charges. WT/TPR/M/171/Add.1 
Page 20  
 
  (WT/TPR/S/171, page 23 para 14)  Do the EAC memb ers plan to harmonise the currently individually 
imposed duties and charges, including internal taxes.  
Non-tariff barriers 
 Non-tariff barriers continue to be an obstacle to the smooth functioning of the customs union.  
What steps are the EAC members taking to remove NTBs impeding trade, including standards and 
technical requirements (as referred to in the re port) and others including requirements for temporary 
work permits, and the requirement for physical esco rt of goods by police at the port of Mombasa?  
(WT/TPR/S/171, page 24 para 21 and report in The East African , September 25-October 1). 
For Tanzania 
IV. TRADE POLICIES BY SECTOR
 
(3) MINING AND ENERGY 
 We understand that Tanzania is currently co nducting a review of mining contracts held by 
multi-national companies (reported in The East African , September 4-10, 2006).  We would be 
grateful for clarification of the terms, and an update on the progress of this review.   
QUESTIONS FROM BRAZIL WT/TPR/S/171/ KEN II (2) Paragraph 08 page A1-48 
 According to the report, “the Economic Rec overy Strategy for Wealth and Employment 
Creation, the centrepiece of Government polic y for 2003-07, is aimed at reducing poverty, 
particularly in rural areas (three quarters of the poor live in rural areas).  The Strategy is based on four 
pillars:  recognition that rapid economic growth w ill be required for macroeconomic stability over the 
next few years; the need to reform and stre ngthen public administration so as to have good 
governance and accountability; rehabilitation and expa nsion of infrastructure, especially roads, 
railways, and telecommunications; and investment in the human capital of the poor.”  
 Could the Government of Kenya comment on the main challenges in order to implement that 
plan and the positive results achieved so far? 
WT/TPR/S/171/ TZA I (3)(ii) Paragraph 18  page A2-141  The Secretariat report highlights that “Tanzan ia continued to be successful in attracting 
foreign direct investment (FDI) during the period under review(...). FDI inflows increased from an 
annual average of US$30 million during 1985-95  to an average of US$462 million over 1999-04 
(Table I.3).  In 2004, Tanzania's FDI stock r eached 48% of GDP (US$5,203 million), well above the 
average of African countries as a whole (27.8%) and of developing countries in general (26.4%).”  
 How is that flow of investments being translated into advantages for the country?  WT/PR/G/171 - Generic question  What is the role of trade agreements for the East African Community members? 
WT/TPR/S/171  III (2) PARAGRAPH 02 PAGE 16  Could The East African Community inform us what authority is responsible for issuing the 
certificate of origin when it is required by importing countries?  WT/TPR/M/171/Add.1 
 Page 21 
 
 
  WT/TPR/S/171  III (5) PARAGRAPH 20 PAGE 24 
 Could The East African Community inform us the administrative procedure costs on the 
processing of licenses? 
WT/TPR/G/171  III (iii) page 09 paragraph 12  According to the Secretariat's Report, touris m is the main foreign exchange source for the 
East African Community. Please inform the conditions for supplying services under Mode 3 – 
Commercial Presence – in these sectors, as per document MTN.GNS/W/120 Sector 9 – Tourism and 
Travel Related Services (CPCs 641, 642, 643, 7471 and 7472). 
WT/TPR/S/171 IV (5) (iv) paragraph 115 page 194 
 Please inform the conditions for the supply of th e following services in Tanzania, in all modes 
of supply (Modes 1, 2, 3 and 4), as per document MTN.GNS/W/120: Sub-sectors 1.A (d) Architectural services; (e) Engineering services; (f) Integrated Engineering Services; and Sector 3. 
Construction and Related Services. 
QUESTIONS FROM JAPAN 
Report by the Secretariat (WT/TPR/S/171) COMMON III. COMMON TRADE POLICY MEASURES
 
(2) CUSTOMS PROCEDURES 
(i) Customs clearance and valuation 
(Page 16, Paragraph 4) 
The Secretariat report notes that customs proce dures have not been fully harmonized by EAC 
members despite the EAC Customs Management Ac t 2004 that stipulates the principles of EAC 
customs procedures and valuation.  
1.  Please explain the reason why customs procedures have not been fully harmonized by EAC 
members on the basis of the EAC Customs Management Act 2004.    
ANNEX 1 KENYA  
III.  TRADE POLICIES AND PRACTICES BY MEASURE  
(2) MEASURES DIRECTLY AFFECTING IMPORTS (ii) Tariffs (Page A1-53, Paragraph 11) 
 Japan hopes that, as a major country among the subregion (EAC), Kenya will take the 
initiative in improving its binding rates of the MFN tariff bindings. 
2.  Please indicate the prospects of the Governme nt of Kenya for improving its binding rates of 
the MFN tariffs. WT/TPR/M/171/Add.1 
Page 22  
 
  IV.  TRADE POLICIES BY SECTOR
 
(5)  SERVICES 
(iii) Transport 
(Page A1-103, Paragraph 123) 
 The report by the Secretariat points out the complaints about delays of cargo handling at the 
port of Mombassa and about the lack of transparency in customs. 
3.  Please provide detailed information on the specific measures taken by the Government of 
Kenya to improve these issues, including the plans to upgrade Mombassa's port, to privatize some of 
the services, and to reform the Kenya Port Au thority (KPA), according to paragraph 123.  
(iv) Tourism 
(Page A1-103, Paragraph 128)  According to Table IV. 17 in the Secretariat repor t, the average length for tourists to stay in 
Kenya has been increasing from 8.7 days in 2000, to 12 days in 2005. 
4.  Please indicate specific factors that have in creased the length of the stay of tourists.   
(iv) Tourism 
(Page A1-105, Paragraph 132) 5.  Please indicate specific achievements, such  as the innovation of viable tourism products, of 
the Tourism Trust Fund, which was launched in Ja nuary 2003 as a joint initiative between the EC and 
the Government of Kenya. 
ANNEX 2 TANZANIA 
III.  TRADE POLICIES AND PRACTICES BY MEASURE
 
(2) MEASURES DIRECTLY AFFECTING IMPORTS 
(i)  Business registration, customs procedures, and valuation (Page A2-152, Paragraph 7) 
 The Secretariat report refers to the measures taken by the government to facilitate trade, 
including reducing smuggling and corruption. 
6.  Please provide detailed information on the specific measures that address such issues. 
(ii)  Tariffs 
(Page A2-154, Paragraph 15) 
7.  Please indicate the prospects of the Government of Tanzania for improving its binding rates 
of the MFN tariffs.  WT/TPR/M/171/Add.1 
 Page 23 
 
 
  ANNEX 3 UGANDA 
III.  TRADE POLICIES AND PRACTICES BY MEASURE  
(2)  MEASURES DIRECTLY AFFECTING IMPORTS (ii)  Tariffs (Page A3-233, Paragraph 9) 
8.  Please indicate the prospects of the Government of Uganda for improving its binding rates of 
the MFN tariffs. 
(iii) Other duties and charges 
(Page A3-235, Paragraph 19) 
 The Secretariat report notes that the effort s by the Government to address corruption, 
smuggling, falsification of doc uments, and under-declaring of goods and income, include the 
restructuring of the URA, integrating the anti-sm uggling function into the customs department, and 
increased cooperation with the cust oms administration of Kenya.  
9.  Please indicate how these measures taken by  the Government resolve the problems in 
practice.  
QUESTION FROM THE REPUBLIC OF KOREA 
EAC-Tanzania
 
Measures Directly Affecting Exports(WT/TPR/S/ 171/TZA p.A2-160 para.52~ 54, p.A2-181 para.50) 
Tanzanian government has prohibited exporting pa rticular agricultural products due to the 
food situation brought about by the drought, and also continued issuing licenses for mineral-mining 
and exporting. Shortage of such information has cau sed several fraud cases, wh ich leads to concerns 
about safety of transactions. Does Tanzanian government have plans to consider the way to 
enhance safety and transparency of transactions  in terms of exporting agricultural and mineral 
products?  
QUESTION FROM NORWAY  In addition to the EAC membership, Uganda is  a member of  the Common Market for Eastern 
and Southern Africa (COMESA), while  Tanzania is a member of the Southern African Development 
Community (SADC). COMESA and SADC both intend to form customs unions. This will entail two different Common External Tariffs. Overlappi ng customs unions are obviously problematic, as 
one country cannot operate two diffe rent external tariffs at the sam e time. How will this problem be 
approached? 
  WT/TPR/M/171/Add.1 
 Page 25 
 
 
  RESPONSES FROM KENYA  
Australia 
TRADE ARRANGEMENTS INVOLVING EAC MEMBERS 
Trade policy generally 
1. According to the Secretariat Report, despite recognition of the importance of trade and trade 
policy reform to their development prospects, trade po licy is yet to be systematically integrated into 
the development strategies of EAC members (WT/TP R/S/171, page 7, para 10).  Are there plans to 
develop, within the EAC, an organisational structure to coordinate the formulation and implementation of trade policy either at the national or EAC level?   
Response: 
The EAC recognizes the importance of an organi zation structure aimed at coordinating the 
formulation and implementation of trade policy at th e national and EAC level. This has been factored 
in the EAC development plan for 2006-2010.  
Membership of other pref erential trade agreements 
2. Given that Kenya and Uganda are also members of the Common Market for Eastern and 
Southern Africa (COMESA) and Tanzania is a member of the Southern African Development 
Community (SADC), how will the EAC members mana ge policy conflicts (for example, differences 
in rules of origin criteria and intra-regional tr ade liberalisation) created by their overlapping 
memberships of other preferential trade agre ements?  (WT/TPR/S/171, page vi, para 10). 
Response: 
This problem has been recognized by the E ast African Community Management Act (2004) 
and members are working towards an amicable  solution through a comprehensive action plan. 
III. COMMON TRADE POLICY MEASURES
 
Competition law 
3. At the time of writing of the WTO Secret ariat Report, an EAC Competition Law was still 
under consideration.  Could the EAC members provide an update on the progress of the bill?  
(WT/TPR/S/171, page 16, para 3) 
Response: 
The Competition law has been enacted by th e East African Legislature and is awaiting 
ratification by member states. A Competition Authority comprising of Commissioners from partner states will be responsible for the implementation of the law. 
Customs procedures and valuation 
4. Although the principles of EAC customs proc edures and valuation are provided for in the 
EAC Customs Management Act 2004, the WTO Secret ariat Report notes that in practice, customs 
procedures have not been fully harmonised (WT/TPR/S/171, page 16, para 4).  A recent report compiled by a special committee of the East A frican Legislative Assembly (and table on WT/TPR/M/171/Add.1 
Page 26  
 
  21 September) noted that “national regulations co ntinue to be used to administer the Customs 
Management Act, and is thus c onfusing to citizens" (reported in The East African , September 25-
October 1).  What steps are being taken by the EAC members to harmonise the administration of customs procedures? 
Response: 
The EAC Customs regulations have been harmonized while work on harmonization of 
customs procedures will commence soon. 
 
MFN bound and applied tariffs 
5. Under the EAC common external tariff, there is an average applied MFN rate of 12.9%, with 
99% of tariff lines carrying rates of 0%, 10% or 25%, and some 58 tariff lines carrying higher rates 
(WT/TPR/S/171, page 17, para 6).  We note that  the maximum tariff band in the proposed COMESA 
Common External Tariff is 30%, but as most CO MESA members have maxi mum tariff bands below 
this, discussion is under way on reduc ing it (WT/TPR/S/171, page 8, para  12).  What is the position of 
the EAC members, of whom Kenya and Uganda ar e also COMESA members, on moving to this 
proposed 30% maximum tariff band? 
Response: 
Kenya is committed to harmonise the discussions at the regional and the multilateral level to 
ensure that there is no contradiction. 
6. In the area of non-agricultural goods, the EA C's current average MFN applied tariff is 11.9% 
and there are only 27 lines with a tariff higher than 25% (WT/TPR/S/171, page 19).  Noting that 
under the current framework for the Doha non-ag ricultural market access negotiations, Kenya as a 
paragraph 6 country would bind its tariff lines about an average ad valorem  rate of 28.5, do EAC 
members consider that the EAC common tariff regime provide an obstacle to Kenya binding a high proportion, 95% or more, of its tariff lines about this 28.5 average? 
Response: 
The EAC CET provides a guide to Kenya's future  binding and as such it is not an obstacle. 
7. In the area of agricultural goods, we note that the EAC's maximum tariff band is again 25%, 
with 31 lines carrying higher rates as an excepti on to this (WT/TPR/S/171, page 17-19).  Under the 
current framework in the Doha agriculture ne gotiations, only Kenya of the EAC Members would 
apply the formula to its bound tariffs, all of whic h for agriculture are currently at 100%, and would 
remain above 25% even after full application of  any proposed formula.  Do the EAC members 
envisage a need in the future to  increase substantially applied tariffs on any of the agricultural 
products where the current applied tariffs are at or  below 25%, and if so under what circumstances?   
Response: 
We do not envisage an increase the current applie d tariffs in future. However, the protocol 
establishing the Customs Union provides a review after every five years.  
Duty and tax exemptions and concessions 
8. When will the EAC members harmonise duty a nd tax exemptions?  (WT/TPR/S/171, page 23 
para 13)  WT/TPR/M/171/Add.1 
 Page 27 
 
 
  Response: 
 Duty and tax exemptions have already been harmonized under the EAC Management 
Customs Act of 2004.  
Other duties and charges 
9. The Secretariat Report states that the only im port duty provided for by the EAC trade regime 
are tariffs, yet members have individually imposed and bound other duties and charges. 
(WT/TPR/S/171, page 23 para 14)  Do the EAC memb ers plan to harmonise the currently individually 
imposed duties and charges, including internal taxes.  
Response: 
Yes, this is an on going process as exte rnal taxes have already been harmonized. 
Non-tariff barriers 
10. Non-tariff barriers continue to be an obstacl e to the smooth functioning of the customs union.  
What steps are the EAC members taking to remove NTBs impeding trade, including standards and technical requirements (as referred to in the re port) and others including requirements for temporary 
work permits, and the requirement for physical esco rt of goods by police at the port of Mombasa?  
(WT/TPR/S/171, page 24 para 21 and report in The East African , September 25-October 1). 
Response: 
The EAC has already put in place a mechanism of monitoring and removal of NTB's using 
national monitoring committee which will be link ed to the regional monitoring committees and 
coordinated by the Directorate of Customs and Trade. 
Brazil  
WT/TPR/S/171/KEN II (2) Paragraph 08 page AI-48 
1. According to the report, "the Economic Re covery Strategy for wealth and Employment 
Creation, the centrepiece of Government polic y for 2003-07, is aimed at reducing poverty, 
particularly in rural areas (three quarters of the poor live in rural areas).  The Strategy is based on four 
pillars:  recognition that rapid economic growth w ill be required for macroeconomic stability over the 
next few years;  the need to reform and st rengthen public administration so as to have good 
governance and accountability, rehabilitation and expa nsion of infrastructure, especially roads, 
railways, and telecommunications;  and invest ment in the human capital of the poor". 
Could the Government of Kenya comment on the main challenges I order to implement that 
plan and the positive results achieved so far? 
Response: 
 Since, 2003, the Government has made tremendous effort to get the economy back on track 
through the Economic Recovery Strategy (ERS) with  the GDP growth rate shooting back to 5.8 per 
cent by 2005. The main challenge however is how to consolidate and increase economic growth in the 
long term. Other Challenges include the need to  in crease the national savings rate as well as ratio of 
investment to GDP; Ensure a more labour intensiv e, pro- poor and equitable growth; and providing  WT/TPR/M/171/Add.1 
Page 28  
 
  adequate resources to improve and rehabilitate infrastructural facilities in water, transport, energy, 
social services and ICT sector among others. 
 Not withstanding the various challenges the following achievements were made:  
• GDP growth performed better than targeted by recording 3.0 percent growth in 2003, 4.9 per 
 cent in 2004 and 5.8 per cent in 2005, all of which were above the ERS  targets of 2.7 percent 
 in 2003, 3.7 per cent in 2004 and 5.1 per cent in 2005.  
• Government revenue went above the ERS  targets by 2.1 per cent in 2003, and by 2.9 and 
 3.0 per cent in 2004 and 2005 respectively. The government is thus able to finance a higher  proportion of its expenditures from tax revenue , reducing government borrowing and stock of 
 public debt. 
• The ERS had targeted the current account defic it in the Balance of Pa yments at an average 
 6.2 percent of GDP.  In 2003, the current account recorded a surplus of KSh 11.1 billion 
 while in 2004 and 2005 the deficits were 2.2 and 2.6 per cent of GDP respectively. This were 
 well within the ERS target. 
• The ERS target was to maintain inflation with in 5 per cent. This has been broadly achieved 
 given that underlying inflation was about 3.5 per cent in the years 2003 and 2004 and 5.3 per 
 cent in 2005.  It is projected that the underly ing inflation will be below the targeted 5 percent 
 in 2006, at 4.25 per cent in 2006 and 3.5 percent in 2007. 
• The share of building and construction sector in GDP was targeted to increase to 4.2 per cent 
 in 2007. In 2005, the sector's share in GDP had reached 4.0 per cent from 3.3 per cent in 
 2003. This indicates therefore that the ERS  target for 2007 for this sector is likely to be 
 achieved. 
• Tourism sector exceeded the 5.4 % average grow th target by 25.6 and 6.0 per cents in 2004 
 and 2005 respectively. In value terms earnings from tourism rose by 27 per cent from  Kshs 38.5 billion in 2004 to  Kshs 48.9 billion in 2005. 
• The ERS  had also targeted the share of manufacturing sector in GDP to increase to 
 15.7 percent by 2007. The sector's share of GDP in 2005 stood at 10.5 from 9.7 in 2003 
 indicating that slow progress has been made.  
• Recent data shows that gross fixed capital formation as percentage of GDP increased from 
 16.1 per cent in 2004 to 18.6 per cent in 2006.  The ERS  had targeted gross fixed capital 
 formation as proportion of GDP at 23 per cent by 2007. 
• Public debt as a percentage of GDP has declin ed from 53.2 per cent in 2004 to an estimated 
 50.1 percent in 2006.  This will result in a dec line in debt service as a percentage of revenue 
 from 15.6 per cent in 2004 to 14.6 percent in 2006. 
• On governance the following have been achieved:   
(i) Crime prevention measures and general police reform. (ii) Reforms in the Provincial Administration. (iii) Reforms in the prison service.  WT/TPR/M/171/Add.1 
 Page 29 
 
 
  (iv) Completion of Kenya's Peer Review under the African Peer Review Mechanism 
(APRM) process. 
(v) Reforms in Judiciary and State Corporations. 
• Free primary education was implemented since 2003. 
• A Trade and Industrial Policy is being developed.  
• Proportion of the health Sector budgetary allo cations to the total government budget has 
increased from 7% in 2003/04 to 7.7% in 20 04/05 and further to 8.6% in 2005/06.  
In this respect the Government is focusi ng on transforming the Socio-economic Structure 
from a situation where Agriculture still accounts fo r 23 per cent of GDP & 56 per cent of employment 
while manufacturing accounts for barely 9.9 per cent of GDP & under 2 per cent of employment.  Services on the other hand account for the bulk of economic activity at 51.6 per cent of GDP constituted mainly by informal sector activities.  
Kenya therefore is charting an alternative path  involving radical  transformation with focused 
interventions towards elimination of  absolute pove rty; improvement of  equity and access to social 
services; promotion of private sector development through a regulatory fra mework that reduces the 
cost of doing business;  a sound legal system that  protects property rights and effectively dispenses 
justice all of which are underpinned by accountable  leadership at all levels of government.  
This path constitutes the basis for the developm ent of Kenya's long-term vision for sustained 
economic and social deve lopment. (Vision 2030) 
WT/TPR/G/171 – Generic question 2. What is the role of trade agreements  for the East African Community members? 
Response: 
To create a conducive and predictable trade and investment environment necessary for 
economic growth and integration into the global economy.   
3.  Could the East African Community inform us  what authority is responsible for issuing the 
certificate of origin when it is required by importing countries? 
Response:  In case of Kenya the Certificates of origin ar e issued by the Kenya Revenue Authority while 
ordinary certificates are issues by the Kenya Bur eau of Standards. The Partner States are working 
towards harmonization on the issuing authority. 
4.  Could the East African Community inform us the administrative procedure costs on the 
processing of licenses? 
Response:  Licensing costs are set by the national laws or  administrative authorities.  In Kenya Trade 
Licenses are issued free of charge. WT/TPR/M/171/Add.1 
Page 30  
 
  5.  According to the Secretariat's Report, tour ism is the main foreign exchange source for the 
East African Community.  Please inform the conditions for supplying services under Mode 3 – Commercial Presence – in these sectors, as per document MTN.GNS/W/120 Sector 9 – Tourism and Travel Related Services (CPCs 641, 642, 643, 7471 and 7472). 
Response: 
 The EAC is in the process of developing a harmonized framework within the context of the 
on going GATS negotiations. 
Canada 
1. Has there been any move by Kenya to maximise use of Canada's LDC Market Access 
Initiative by cumulating the production of goods with Tanzania and Uganda, both eligible as countries 
to gain eligibility for Kenyan goods? 
Response: 
The EAC member states are discussing on how best to utilize this facility and we would like 
to work with Canada to explore how  Kenya can benefit from this scheme. 
2. Kenya's report states that the Kenya Investme nt Authority is implementing the Investment 
Targeting Strategy that focuses on specific servi ce sectors, including tourism. What investment 
initiatives are under consideration for tourism? 
Response: 
The following are some of the investment in itiatives targeted towards the tourism sub sector: 
•  The expansion of bed capacity to cater for increased number of tourists. 
•  The development and promotion of new tourist circuits in Northern Rift and Western Kenya 
 Zones and the targeting of high spender tourists. 
•  The upgrading and development of infrastructure leading to the major parks across the 
 country. 
•  The government is promoting development of the sector by providing tax incentives to 
 incentives to investments related to provision of tourism of services. These include exemption 
 of duty on imported inputs and equipments for the purpose of tourism facilities development. 
•  The Government has also embarked on a ma jor expansion and rehabilitation programme of 
 the Jomo Kenyatta International Airport in Na irobi which is expected to result in increased 
 landing space and improved security thus enabling di rect flights  to destinations such as US, 
 China and Japan. 
•  The Government has adopted an open air policy focusing on concluding bilateral air 
 agreements which will boost the on going effort s by the national airline to open new routes 
 especially in the far east. 
•  There has been increased joint promotiona l activities on tourism within the EAC region 
 particularly by the private sector.    WT/TPR/M/171/Add.1 
 Page 31 
 
 
  •  The government is developing strategies to prom ote conference tourism, eco tourism, cultural 
 tourism and sports tourism. 
•  The establishment of Tourist Police Unit to enhance security of the tourism industry. 
3. The KeBS requirement that most imports be  accompanied by a Pre-export Verification of 
Conformity (PVoC) with relevant technical regulation would seem to be a major obstacle to smooth flow of trade. How has it worked out in practice? 
Response: 
The Standards Act provides for protection of consumers against sub standard goods. PVoC 
program is meant to assist to achieving this obj ective. It places the r esponsibility of  proving 
conformity to standards on the exporter as per arti cle V of the WTO/TBT agreement. Implementation 
has been smooth so far. The cost and delays of tes ting in the country of origin is however an area with 
room for improvement. 
4. The Secretariat Report notes that foreigners can request an investment certificate from the 
Kenya Investment Authority (KIA).  Barring special circumstances (security, environmental, or health 
concerns, etc.), and given that a ll other relevant requirements have been met, said certificate should be 
granted if an investment is deemed by the KIA to be “beneficial in terms of  creation of employment 
for Kenyans. 
 Could Kenya please indicate the specific criteria that are used to determine if a particular 
investment complies with the above-mentioned requi rements, and if this information is made 
available to potential investors? 
Response: 
The criteria is established and determined upon meeting the potential investor at the Kenya 
Investment Authority, and after discussions on the deta ils of the proposed project. Additionally, a site 
visit is usually conducted to complement the proj ect proposal. Other requirements are provided for in 
the Investment Promotion Act, 2004. 
5.  The Investment Climate Action Plan (ICAP) was designed to improve the investment climate 
“by addressing, inter alia, the escalating insecurity; inefficient business licensing regime; protracted 
approval procedures for constructi on and development; time-consuming customs, tax administration, 
and business registration procedures; poor land admini stration measures;  and costly electricity hook-
ups”.  
Could Kenya comment on any developments a ssociated with the implementation of the 
ICAP? 
Response: 
The Investment Climate Action Plan (ICAP), 2005-2007, was developed with the full 
participation of concerned ministries and public  bodies as a short-term framework, but an essential 
and integral part of the long-term PSDS.  It is inte nded to coordinate and address the reform efforts by 
various ministries and public agencies with a view  to producing immediate benefits to the private 
sector. The ICAP therefore focuses on fast track reforms, which are intended to improve the 
investment climate for the private sector with in 12-24 months over the period 2005-2007.  
The areas covered in the ICAP have been  organized into the following clusters: WT/TPR/M/171/Add.1 
Page 32  
 
  (i) Reforming the Police force including community policing to reducing instances of insecurity.  
(ii) Provision of substantial resources for rehabilitati on and construction of new roads to address 
 the poor state of roads. 
(iii) Review of building by laws and the formati on of urban development policy for all local 
 authorities for purposes of fast-tracking construction approvals. 
(iv) Review and harmonization of business licenses a nd establishment of bus iness regulatory Unit 
 to remove inefficient, unnecessary, unfriendly and cumbersome licensing. 
(v) The computerization of business registry to improving business registration and customer 
 service. 
(vi) Streamlining land registration pro cedures through integration of ICT in operational process to 
 improve land administration. 
(vii) Standardization of connecti ons, outsourcing services and reduc ing cost of hook up by 
 encouraging group connection to addr ess the problem of power hook-ups. 
(viii) Contracting consultancy services to facilitate  comprehensive reforms of Company Laws. 
(ix) Modernization and automation of customs cl earance procedures through the implementation 
 of Simba 2005 system to improve customs and tax administration. 
(x) Improving Business Competitiveness Dialogue on all the above. 
On the licensing regime The Working Comm ittee on Regulatory Reforms for Business 
Activity in Kenya has been charged with implemen ting Business Licensing Reforms in Kenya so as to 
revamp the regulatory environment for doing business in Kenya.  Up to now, it has carried out its task 
according to plan and on schedule. 
The first phase ending in May 2005 reviewed  86 licenses and recommended elimination of 
35 licenses and simplification of 4. Most have been eliminated and the others will be resubmitted to 
Parliament soon for elimination.
1  By 31 March, 2006 the Committee completed and submitted its 
report documenting the guillotine process and public c onsultations for 1,347 business licenses.  This 
concluded the second phase. 
The completion of the business licensing review including liaison with the budget team in the 
Ministry of Finance to complete phase two include  the preparation and implementation of a medium 
term regulatory reform strategy to coordina te the reform program so as to ensure: 
• Creation of an electronic regulatory re gistry for all business licenses; and 
• Establishment of a permanent regulatory reform unit. 
As a result of these reforms the following has been achieved: 
                                                      
1 In February 2006 the Ministry of Finance made a written request to the Attorney General's Office to 
resubmit for Parliamentary approval through the Statute Law Miscellaneous Amendments the licenses reviewed 
in March-May 2005. The or iginal submission is bein g resubmitted because under Kenyan law draft regulation 
pending Parliamentary approval cannot be carried over from one calendar year to the next. Parliamentary 
approval of the original submission was postponed due to last year's prorogation of Parliament.  WT/TPR/M/171/Add.1 
 Page 33 
 
 
  (i) 9 licenses were eliminated on 8 June 2005. 
(ii) 28 licenses were eliminated on 15 June 2006. 
(iii) 73 licenses will be eliminated once the Licensing Laws (Repeals and Amendments) Bill, 2006 
is enacted. 
(iv) 8 licenses have been simplified. 
(v) Another one thousand three hundred licences have been recommended for elimination. 
With regard to tax administration and customs,  there have been a number of reforms at the 
Kenya Revenue Authority, including implementation of the SIMBA electronic system of tracking and 
lodging customs' documents and paymen ts, and improvements in VAT refunds.  
In respect to electricity hook-ups, there are e xpected decreases in the cost of power as more 
independent power providers enter the market, as well as alternative producers of power start 
operations. 
6. The Secretariat Report notes that a new Priva tization Commission was to be established by 
June 2006.   
Could Kenya indicate whether this new body has indeed been established and is functioning? 
Response: 
The Privatization Act was passed by Parliament  in August 2005 and gazetted in October 
2005. The Privatization Commission office is expected to be in place in January 2007. The Minister 
for Finance will announce the effective date of th e Commission once Parliamentary approval for the 
proposed appointments is obtained  
7. Could Kenya set out some of the appr oval procedures required for construction and 
development? 
Response: 
- land transfer (use of land, i.e. commercial vis-à-vis residential). 
- approved building plans. 
- environmental impact assessment. 
- business premises occupation. 
8. The Secretariat Report notes that Congress is discussing the draft of a new mining law and a 
new mining licensing system will be introduced. 
Could Kenya provide an update on the status of the new mining law? 
Response: 
The stakeholders have presented their views, the final draft bi ll has been forwarded to the 
Attorney General Chambers for drafting. Once the draft is ready it will be presented to Parliament 
where it will be deliberated upon prior to enactment.  WT/TPR/M/171/Add.1 
Page 34  
 
  9. What principles have been used to develop the framework of this new mining legislation? 
Response: 
The Government in its bid to have an all inclusive legislative, brought  on board all 
stakeholders from civil society, environmentalists , private sector, as well as the Kenya Human Rights 
Commission, etc to ensure that all their concerns were taken care of. 
10. In preparing its new mining legislation, did Kenya give consideration to the approaches taken 
in other jurisdictions? If "yes", could Kenya provid e background information on the process which it 
utilized? 
Response:  The government is working closely with the mining Industry to improve on the governance 
that will ensure a win-win situation for the governme nt, the industry and the people. The Government 
has also requested the support of the Commonwea lth Secretariat in developing comprehensive 
proposals on a policy framework for regulating the mining sectors and designing appropriate legal and 
fiscal arrangements to be introduced by new legislation. 
11.  Could Kenya advise as to when its new licensing system will be implemented? Response: 
The new licensing system will be put in for ce as soon as the new legislation is enacted. 
12.  What progress is being made in addressing the obstacles to manufacturing sector development 
created by i.e. the unpredictable and wide discre tionary powers of administrators of laws and 
regulations? 
Response:  This is being addressed by the Investment Climate Action Plan and the on-going efforts to 
simplify and eliminate most of the business laws. 
13.  The report indicates that some of Kenya's remaining SOEs (e.g. Te lekom Kenya Ltd., Kenya 
Commercial Bank, and Kenya Ports Authority)  will be privatized sometime soon.   
Can Kenya give a better indication of when the transition for these SOEs may take place? 
Response: 
This is an on-going process and the Government is  negotiating with strategic partners to scale 
down its stake in these companies 
Colombia 
1. Export Processing Zones Scheme in Kenya allows for duty and VAT exemption on imported 
machinery and raw materials. Companies located in  EPZs also benefit from a ten-year corporate, 
income, and withholding tax holiday, exemption from stamp duties, and 100% i nvestment allowance. 
Are all those benefits contingent upon export performance?   WT/TPR/M/171/Add.1 
 Page 35 
 
 
  Response: 
The EPZ scheme is an investment initiative that targets both domestic and foreign investors 
and is geared towards attracting export oriented  production of which 80% must be exported. The 
broad objectives of this scheme are to increase em ployment, technology transfer, encourage backward 
linkage and diversification of pro duction and markets.  Therefore the benefits are not contingent upon 
export performance as such since it is an export orie nted programme and the benefits are available to 
all companies within EPZ without discrimination. It should be further noted that these schemes are consistent with Kenya's obligation under the WTO Agreement on subsidies and countervailing 
measures. 
2. Kenya applies an export tax of 25% to hides and skins. What is the policy objective to be 
attained by this export tax?  
Response: 
The leather industry has been one of the key sector s identified for restructuring in view of the 
poor performance in the past. In this regard the availability of raw materials to encourage value 
addition in the processing of leather has necessitated the need to impose an export tax for hides and 
skins. 
Hong Kong China 
1. We note the EAC's initiative to remove all non-tariff barriers between Union members.  We 
would like to know whether this initiative would be extended equally to other WTO members. 
Response: 
The removal of NTB's within the Customs Uni on was negotiated in the context of the EAC 
integration process. The removal of NTB's for othe r WTO members is currently under negotiation in 
WTO round of talks. 
2.  We are glad to know that standards and t echnical requirements are applied equally to imports 
and locally produced goods in the EAC.  We also  appreciate efforts of EAC members to harmonise 
their national standards with international or re gional standards (i.e. EAC standards).  Kenya has 
indicated that about 50% of its 4 000 standards are e quivalent to ISO standards.  We are interested to 
know the progress of harmonization of the other two EAC members. 
Response:   No response. 3. It is noted that in Kenya the maximum fore ign equity allowed in insurance and reinsurance 
companies is 66.7% and at least one third of the members of the board of directors or management 
board must be citizens of Kenya.  We however  note that in Kenya's GATS schedule of specific 
commitments:   
(a) no foreign equity ceiling has been schedul ed in its mode 3 commitments for “non-life 
 insurance” and “re-insurance and retrocession”; and 
(b) no citizenship requirement has been sche duled in its mode 3 commitments for “life 
 insurance”, “non-life insurance” a nd “re-insurance and retrocession”.  WT/TPR/M/171/Add.1 
Page 36  
 
   Could Kenya advise on the compatibility of the subject limitations with its existing GATS 
commitments? 
Response:  
Kenya wishes to clarify that the limitations on foreign equity varies among different types of 
insurance services. It is therefore important to note  that the maximum foreign equity of 66.7% is only 
applicable to life insurance and in the case of in surance broking, 40% of foreign capital participation 
is allowed while non-life insurance does not have  limitations other than those indicated under 
horizontal commitments as per the current schedule of commitments. 
Services commitments in sub-sectors and modes of supply are subject to horizontal 
commitments. The issue of citizenship require ments for life insurance, non-life insurance and 
retrocession is in line with Kenya's horizontal commitments.  
European Communities 
1. The region has lately been faced  with a drought and energy crisis. 
Could more information be provided about th e impact of this crisis on the economies? 
Response:  
Kenya experiences mild cyclical droughts approxi mately 3-5 years with severe dry periods on 
a ten year cycle. These largely affect the Arid and Semi Arid Lands (ASALs) where 12 million people live. The recent drought has severely affected over 3.5 million people in 25 districts otherwise known 
as Emergency Operation (EMOP) Districts and anothe r 2.5 people in 20 districts that were partly 
affected by the drought referred to as Non-EMOP Districts.  
It is estimated that the recent drought claimed livestock worth Kshs 16.67 billion which 
consist of: cattle 12.8 billion; Sheep , worth about Kshs 1.3 billion; Go ats, Kshs 1.9 billion and Camels 
about Kshs 0.67 billion. In addition, drought re duced supply of safe drinking water, affected the 
retention of about 1,060,400 primary and pre-primar y pupils in 27 districts, 73,000 children under 
5 years and 7,200 pregnant and lactating mothers suffered from malnutrition and about 
460,386 children lacked access to basic quality health care. In education, drought has also put 
pressure on Government to distribute additi onal Kshs. 3 billion-bursary funds to some 
316,193 secondary school child ren in 1,243 schools.  
The environment has also been adversely a ffected by overgrazing and cutting of trees for 
charcoal burning. The competition for water has also led to the depletion of the available water and 
pasture resources causing serious socio-cultu ral conflicts within some communities.  
Crop production was equally affected resulting in  acute food shortages. In some instances 
what was reserved as seed ended up being consumed as food. 
In addition cash crops were negatively affect ed like tea whose production dropped by about 
20% between 2004 and 2005. 
 To mitigate against future effect on droug ht the government has already come up with 
Economic Recovery Programmes for the North Eastern Province and four districts in the Eastern 
Province.   WT/TPR/M/171/Add.1 
 Page 37 
 
 
  Under the ERS the government is implementi ng land tenure reforms among other measures 
focusing on Infrastructure development including re habilitation of irrigation schemes and construction 
of dams, promotion of value addition in livestock production, community based early warning system 
for food security, review and harmonization of legal,  institutional and regulatory framework in crops 
and livestock sub sector.  
The energy sector was not affected much becau se of participation of independent power 
generators. The impact of the drought on the ener gy sector was not severe on the Kenyan economy.  
2. The EC welcomes the pursuit by Kenya of a customs reform programme.  
What capacity constraints does Kenya face in taking this programme forward? 
Response:  
The Kenya Revenue Authority has been impl ementing reforms in the Customs Services 
Department in accordance with a ppropriate WTO Agreements and WCO revised Kyoto Convention. 
This entails among others: 
• Modernisation and automation aimed at comprehensive business process improvement. 
• Improving enforcement function, anti-smuggling and compliance strategies. 
• Joint border initiatives under the East African  Trade and Transport Facilitation Project. 
In view of these reforms so far the followi ng modest achievements have been realised: 
• Increase in revenue collection by 1%  of GDP between 2002/03 and 2005/06. 
• The Income Tax, Value Added Tax and Domestic Taxes Department were merged to form the 
Domestic Taxes Department. 
• The Simba 2005 System was implemented to fac ilitate self assessment and Post clearance 
Audit function was strengthened. 
• Support Services Department was created to consolidate support f unctions and enhance 
taxpayer services while offices pf regional heads were established to bring services and decision making closer to the taxpayers. 
• The KRA Information Communication and technol ogy strategy was developed to act as a 
blue print for all future automation programmes.  
However despite the above achievements the Customs Modernisation Programme is faced 
with numerous challenges that have constrained th e successful implementation of the programme The 
main challenges are: 
• Lack of sufficient funding: Kenya is very keen  to comply with the WTO Agreements and the 
WCO requirements but the resources involved  in implementation of the modernisation 
programmes are quite enormous compared to what is available.  
• The Simba 2005 system experienced implemen tation hiccups. The system was unfamiliar to 
many users and there was a lot resistance to ch ange. The automation system is also not yet WT/TPR/M/171/Add.1 
Page 38  
 
  complete as it lacks a module for timely trade data capture, causing a backlog in data analysis 
and dissemination to stakeholders. 
• Enforcement and Compliance strategies. 
• There is a lack of capacity in post clearance audit.  
• KRA has not created a valuation database and therefore it is difficult to ascertain transactions 
price. This poses a big risk of overvaluation or undervaluation of prices of commodities.  
• Transit management problems: Kenya is pl aced in a unique position of serving many 
neighbouring countries some of which are landlocked. Given the infrastructural capacity 
constraints that the country is facing, the tr ansit of goods poses many challenges. Kenya roads 
and telecommunications services are constrained.  
• KRA does not have the electronic cargo tracking system and the rapid response system and 
relies on officers stationed on the ground to ensu re the smooth movement of goods. This in 
turn requires costly physical surveillance along the transit routes and there is likelihood of 
goods being diverted or being wasted due to lack of rapid response services.  
• Slow integration and harmonisati on process of taxes among EAC. This is partly attributed to 
lack of financial, human and technical capacity  within the regional body to formulate and 
implement regional policies. 
• There is lack of institutional monitoring a nd evaluation system to monitor implementation. 
• Domestic tax administration systems are still largely manual delays in reconciliation and 
compliance checks. 
3. Has Kenya identified particular technical assistance needs in this field?  Response:  
Kenya requires technical as well as financial assistance in our endeavour to modernise our 
customs procedures. 
The main areas in dire need of assistance are: 
• Creation of a valuation data base that will involve linking the customs department with 
overseas offices in order to ascertain transaction price and avoid undervaluation or overvaluation of commodities. 
• Post Clearance Audit. The current system lack s capacity to ensure that a proper assessment of 
cleared goods is made. 
• Transit management: There is urgent need for assistance in implementing the cargo tracking 
system in order to save resources and to ensure that goods destined to other countries are not 
diverted. 
• Financial and human resource constraints cut across all areas 
4. It is stated that to further improve effi ciency and competitiveness at Kenyan ports, the 
Government is planning to upgrade Mombassa's port and privatize some of the services.   WT/TPR/M/171/Add.1 
 Page 39 
 
 
  Could the Kenyan Government provide further de tails of this planned privatisation of port 
services and indicate whether the market will be opened up to foreign operators? 
Response:  
The Government has already embarked on priv atization of Mombasa port with a view to 
enhancing privatize sector participation in port op erations including the co ntainer handling facilities. 
However, under the proposed reforms Kenya Ports Au thority will remain the landlord. The services 
already privatised and currently operated by privat e companies include grain bulk handling and motor 
vehicle handling. 
The KPA in conjunction with KRA are impl ementing a Port Community Based System 
(CBS) project which will provide a platform and a single window for clearance of cargo from the port 
of Mombasa. The CBS will integrate all the majo r stakeholders in the cargo clearing process (e.g 
KPA, KRA, KEBS, Port Health, Ship agents and Clearing and Forwarding agents etc). The system 
will link them electronically. The current Simba system will be a part of the CBS. This will eliminate 
manual transmission of documents and cl earance will be done electronically.  
In addition the government is currently developi ng TORs for advisory services. The advisors 
will come up with possible options of how the privatisation process would be implemented. The 
government will then review the different private sector participation options with a view to implementing the preferred option. 
The government is seeking private companies w ith vast experience and with expertise in 
cargo handling operations. 
The privatization process will be made through open tendering giving equal opportunity to 
foreign companies to participate. 
The delays at the port are mainly caused by Cargo owners who don't collect their containers 
on time either because of not submitting the required documents or in instances where verification of 
the contents of all containers becomes necessary to stem customs fraud or misdeclaration of imports.  
The on going modernization reforms at the Ke nya Revenue Authority have resulted in the 
introduction of information technology (simba 2000) which has enhanced  the clearing goods and 
therefore improved transparency. 
5. The EC would be interested in an upda te on progress with the roadmap for the Common 
Market, also in light of Tanzania's declaration that  the country is not ready to commit to the initially 
agreed timetable. 
Response:  
The EAC has commissioned a study for common market to be completed by 2007 and the 
negotiation by 2009. 
6. Domestic Investment. Does EAC believe that double taxation within EAC is a hindrance to 
intra-regional investments? Is there a plan to resolve the situation? 
Response:  
 The Agreement on avoidance of double taxati on has been concluded by Partner States and 
adopted by the EAC. It is now awaiting ratif ication and implementation by Partner States. WT/TPR/M/171/Add.1 
Page 40  
 
  7. Foreign Investment; How do the EAC countri es see foreign investment evolving over the 
coming years? 
Response:   The EAC forms a bigger market and coupled with a common investment policy has great 
potential to attract foreign investment in future. 
Trade and social issues 
8. The Service Sector Export Strategy, adopted by the Uganda Export Promotion Board in 2005, 
identified migrant labour one of five priority sub- sectors for intervention to enhance national capacity 
to export services.  
 What policies are being put in place to address this issue? 
Response: 
 No response. 
The EAC states that labour law reform is one of the priority measures under Better 
Regulation.  
9. What legislation is in place for labour standards, particularly in export sectors? 
Response:  
The protocol on free movement of persons, capital, labour and right of ownership and 
residence which is under negotiation will address the issues of factors of production as they affect EAC.  
10. While some measures have been taken to a llow free movement of labour (e.g. recognition by 
Kenya of lawyers from Uganda and Tanzania), this  is an area in which further steps could be 
beneficial. What plans does EAC have to stimulate further mutual recognition of professions? 
Response:  
Mutual recognition of professionals is being handled by respective technical committees by 
EAC. This committees are harmonizing the professiona l requirements and so far doctors and lawyers 
have agreed on mutual recognition. 
11. The potential of the services sector remains larg ely unexploited in the EAC. For example, the 
lack of skilled labour is one factor that has limited the development of tourism. 
Does the EAC have policies for skills training and working conditions to redress the problem? 
Response:  
In Kenya there is a abundant skills in the tourism sector. The Utalii College and other 
institutions catering for hospitality sector produce not  only for the national market but also for the 
international one as well. The ongoing harmonization of  policies and labour laws in the region will 
address the problem of skills and working conditions in this sector.  WT/TPR/M/171/Add.1 
 Page 41 
 
 
  STANDARDS AND OTHER TECHNICAL REQUIREMENTS  
12. Article 13 of the Protocol on the Establishm ent of the East African Customs Union obliges 
member states to remove all non-tariffs barriers (N TBs), with immediate effect and not to impose any 
new ones. Furthermore, EAC member states mu st formulate a mechanism for identifying and 
monitoring the removal of NTBs, including standard s and technical requirements.  What kind of 
mechanism is going to be applie d to achieve this aim and when? 
Response:  
The three institutions of standards have harmoni zed the standards and recognized each others 
standard marks. The EAC has developed and adopt ed mechanisms for monitoring and removal of 
NTBs under the EAC Customs Act. At  national level there are also mechanisms linked to the regional 
mechanisms. 
Competition Policy 13. Do the EAC members plan to co-ope rate in the area of competition policy? 
Response:  
EAC legislature has enacted a competition law a nd policy that awaits ratification by member 
states and subsequent implementation. 
G
OVERNMENT PROCUREMENT  
14. Could EAC provide statistical data on Govern ment Procurement contracts established by type 
of contracting entities (central, sub-central/regional/local), object (supply, services, and works), suppliers' status (local, foreign, intra-regional)? 
Response:  
This information will take time to compile , and will discuss with the E.C. bilaterally. 
15. Does EAC use or envisage using electronic tendering? Response:  
Not yet. May have its advantages, but most of our businessmen are not electronically 
connected.  
16.  Is there any government procurement agre ement between countries? If yes, please describe 
them. 
Response:   None, but efforts to harmonize are being pursued by the three Countries. Trade and environment 17.  What mechanisms does EAC have in place to  ensure adequate coordi nation of environmental 
policy and trade policy?  WT/TPR/M/171/Add.1 
Page 42  
 
  Response:  
 The Environmental organizations in the three countries are coordinating at the regional level 
within the EAC. Protocols, strategies and programs are already in place. 
Japan  
1. The secretariat report notes that customs pro cedures have not been fully harmonized by EAC 
Members despite the EAC Customs Management Act 2004 that stipulates the principles of EAC 
customs procedures and valuation. 
Please explain the reason why customs procedures have not been harmonized by EAC 
Members on the basis of the EAC customs management Act 2004. 
Response:  
The EAC Customs Management Act 2004 is applied uniformly by the customs administration 
in the Partner States. The EAC customs regulat ions have been finalised and will commence 
application on 1
st November 2006. The harmonisation of cu stoms procedure is on plan and will 
commence in January 2007. 
2. Japan hopes that, as a major country among the subregion (EAC), Kenya will take the 
initiative in improving its binding rates of the MFN tariff bindings. 
Please indicate the prospects of the Government of Kenya for improving its binding rates of 
the MFN tariffs. 
Response:  
Kenya is keen to contribute to the rea lization of modalities for NAMA by increasing her 
binding coverage taking in to account the broader in terests of the other partner states in the EAC. 
3. The report by the Secretariat points out the complaints about delays of cargo handling at the 
port of Mombassa and about the lack of transparency in customs.  
 Please provide detailed information on the specific measures taken by the Government of 
Kenya to improve these issues, including the plans to upgrade Mombassa's port, to privatize some of 
the services, and to reform the Kenya Port Au thority (KPA), according to paragraph 123. 
Response:  
The Government has already embarked on priv atization of Mombasa port with a view to 
enhancing privatize sector participation in port op erations including the co ntainer handling facilities. 
However, under the proposed reforms Kenya Ports Au thority will remain the landlord. The services 
already privatised and currently operated by privat e companies include grain bulk handling and motor 
vehicle handling. 
The KPA in conjunction with KRA are impl ementing a Port Community Based System 
(CBS) project which will provide a platform and a single window for clearance of cargo from the port 
of Mombasa. The CBS will integrate all the majo r stakeholders in the cargo clearing process (e.g 
KPA, KRA, KEBS, Port Health, Ship agents and Clearing and Forwarding agents etc). The system 
will link them electronically. The current Simba system will be a part of the CBS. This will eliminate 
manual transmission of documents and cl earance will be done electronically.   WT/TPR/M/171/Add.1 
 Page 43 
 
 
   In addition the government is currently devel oping TORs for advisory services. The advisors 
will come up with possible options of how the privatisation process would be implemented. The 
government will then review the different private sector participation options with a view to implementing the preferred option. 
The government is seeking private companies w ith vast experience and with expertise in 
cargo handling operations. 
 The privatization process will be made through  open tendering giving equal opportunity to 
foreign companies to participate. 
The delays at the port are mainly caused by Cargo owners who don't collect their containers 
on time either because of not submitting the required documents or in instances where verification of 
the contents of all containers becomes necessary to stem customs fraud or misdeclaration of imports.  
The on going modernization reforms at the Ke nya Revenue Authority have resulted in the 
introduction of information technology (simba 2000) which has enhanced  the clearing goods and 
therefore improved transparency. 
4. According to Table IV. 17 in the Secretariat re port, the average length for tourists to stay in 
Kenya has been increasing from 8.7 days in 2000, to 12 days in 2005. 
Please indicate specific factors that have increased  the length of the stay of tourists.   
Response:  
• The major source of tourists in Kenya is from Europe and most packages are offered on a 
fortnightly basis.  
• The weather patterns is another factor, when it is winter in Europe, it is normally sunny in 
Kenya which is conductive for tourists to stay longer. 
• The age factor comes in, as most of the tourists  are elderly and thus retired so can stay as long 
as they please (up to three months).  
5. Please indicate specific achievements, such as the innovation of viable tourism products, of 
the Tourism Trust Fund, which was launched in Ja nuary 2003 as a joint initiative between the EC and 
the Government of Kenya.  
Response:  
• The combination of having the b each as well as the wildlife tourism. 
• The different heritage centres we have:   
(a) Lamu offers an attractive with its rich hist orical heritage that spans hundreds of years. 
(b) The Masai Mara especially during the world renown migratory of the wildebeest. 
(c) The rich flora and fauna found in most national parks. WT/TPR/M/171/Add.1 
Page 44  
 
  Singapore 
1. Para 7 of the Secretariat Report states that  the EAC is envisaged to be an economic area, 
although no timetable for this was established, wh en the EAC Treaty entered into force in 2000. 
Now that it is 6 years since the entry into force of the EAC Treaty, have the EAC Members 
decided on or discussed the time-frame for the establishment of the economic area? 
Response:  
 The Customs union was attained in January 200 5 with common external tariff of 0% for raw 
materials, 10% for intermediate goods and 25% for finished goods. Internal tariff elimination 
programme will be finalized in 20 09 and consequently establishment of the economic area which is 
foreseen in the Fourth Development Strategy.    
2. With regard to para 13 of the Secretariat Re port, it would be appreciated if the EAC Members 
could confirm when the  free-trade component of the EAC customs union would be fully established? 
Response:   The FTA is expected to be fully operational by 2010.  3 Footnote 6 states that the "Council of Minister s of the EAC is mandated to review the CET 
structure, and approve measures to remedy any adver se effects, on any member state, induced by the 
implementation of the CET or, by exceptional circumst ances". Since the entry in to force of the EAC, 
has there been any situations of "adverse effects"  or "exceptional circumstances" that had required 
EAC Ministers to intervene and remedy these situations? 
Response:   Yes, two situations have necessitated the re view of the CET by Council of Ministers as 
indicated hereunder:  
(a) In April 2006, when the region experienced a serious drought, the council reviewed the CET 
 and allowed Tanzania to import cereals at a lo wer tariff than the one stated in the CET in 
 order to address her food shortage. 
(b) Kenya also applied to the council for the moratorium on rice imports from Pakistan. 
4.  We welcome the fact that the adoption of the EAC common external tariff in 2005 has led to 
a marked reduction in the applied tariffs of at least two Members of the EAC, ie. Kenya and  
Tanzania.  This is laudable. However, we cannot  but notice the sizeable difference in the CET and 
MFN tariff rates.  In addition,  all three Members have relatively low tariff bindings for all tariff lines 
in the WTO: Kenya  (14.9%); Tanzania (13.5%); and Uganda (15.9%). 
Given the benefits (eg. certainty that it would create for businesses), do the EAC Members 
have plans  to increase their tariff bindings in the WTO? 
Response:   Kenya is keen to contribute the success of  the Doha Round by increasing the scope of it's 
tariff binding taking in to account the broader in terests of the other partner states in the EAC.  WT/TPR/M/171/Add.1 
 Page 45 
 
 
  5.  Para 15 of the Secretariat Report states that EAC negotiations on trade in services are to 
commence in 2006 as part of the EAC common market.  Have these negotiations started?   If so, it would be useful if the EAC Members could share how the services liberalisation process in the EAC would be structured? For example, would it be based on the GATS structure? If not, what models do the EAC plan to use for services liberalisation among themselves? 
Response:  
 As a first step towards EAC negotiations in services, a consultant has been contracted to 
undertake a study and make recommendations on ho w the services negotiations can be undertaken 
within the EAC. 
United States of America 
1. We belief there are two inaccuracies in the Secr etariat Report, which we would like to draw to 
the attention of the Secretariat. In paragraph 32 on  page 13, each of the EAC Members is described as 
eligible for AGOA benefits in 2004. Kenya, Tanzan ia and Uganda, have been  eligible for benefits 
under AGOA since January 2001, February  2002 and October 2001 respectively. 
Response:  
Kenya concurs with this correction by the USA. 
2. Could the representative of Kenya please cl arify whether the import inspection program 
described in paragraph 33 is the same as the Pre- Export Verification of Conformity (PVoC), notified 
in G/TBT/N/KEN/14?   
Response:  
The program is the same.  
3. According to paragraph 95 on page A1-68 of  the Secretariat Report, Kenya drafted a new 
Geographical Indications bill in 2001, but it is still before Parliament as of May 2006.  
A. What is the timeframe for implementing the new GI bill?   
Response:  
It is difficult to tell exactly when the GI law can be implemented because enactment of the GI 
bill into law will depend on the parliamentary calendar.  
B.   Does the draft preserve trademark rights in accordance with Articles 16(1) and 24(5) of the 
TRIPs Agreement with respect to the granting of protection for geographical indications?  Also, does 
the draft bill protect trademarks from confusingly si milar and later in time geographical indications?  
Response:  
 Yes! Section 22(2) of the GI Bill provides that “Where a trade mark has been applied for or 
registered in good faith, or where rights to a trade mark have been acquired through use in good faith 
either: 
(a) Before the date of entry into force of this Act; or 
(b) Before the geographical indication is protected in its country of origin. WT/TPR/M/171/Add.1 
Page 46  
 
   This Act shall not prejudice the registrability of  or the validity of the registration of the trade 
mark, or the right to use the trade mark, on the basis that such a trade mark is identical with, or similar 
to, a geographical indication. 
4.  Paragraph 105 on page A1-71 of the Secretar iat Report states the following:  “Under Section 
36 of the [Kenyan Copyright] Act, producers of sound recordings and audio-visual works must 
request authentication of their work from the Copy right Board.  This has introduced a registration 
requirement for certain copyrights in Kenya, in contrast to general practice.”  Kenya responded to a question regarding Section 36 as part of the TRIPS Council review.  See IP/Q/KEN/1, page 28 (7 May 
2004).  It is our understanding that, while the Copyright Board was created in 2003, it currently has no staff and no offices.   
 Please explain how requests for authentication under Section 36 operate in practice.  Please 
also provide information regarding the number of requests that have been made since the Board was 
created in 2003, and the number of requests that have been granted. 
Response:  
The Kenya Copyright Board has now been constitu ted and is keen to fully operationalize with 
personnel, offices and equipment. 
 It is reiterated that the authentication provide d for in Section 36 of the Copyright Act, 2001 is 
an enforcement measure aimed at curbing piracy of sound recordings, audio-visual works and to 
certain extent software. It is therefore neither a re gistration process nor a device to confer copyright to 
right holders. Thus the requirement is not in co ntrast with general practice since copyright is 
conferred in accordance with Article 5(2) of the Bern e Convention.  It is only applicable to those 
works where copyright subsists.  
It is required that the authentication devise be  affixed to each copy of the copyright work 
made or published by a manufacturer or a producer of sound and audio-visual works or recordings. 
Selling or offering for sale or exhibiting such work  without an authentication devise is an offence 
punishable by a fine not exceeding five hundred thou sand shillings, or to imprisonment for a term not 
exceeding four years, or both. 
 In this way it is clear that it is an industry driven measure necessitated by the high level of 
piracy and the low conviction rates. Thus the device is also to assist the Government regulate the 
industry and control the inflow of pirate sound r ecordings and audiovisual works at the border.  
 A manufacturer or a producer of sound and audio-visual works or recordings applies to the 
Board for authentication of copyright works. The Board authenticates the work  and issues an approval 
certificate in the prescribed form to the applicant for authority to purchase an authentication devise 
from the Kenya Revenue Authority. 
So far it is yet to be implemented, there are no applications received for the same.  
5.  It has come to our attention that copyright pi racy rates in Kenya are extremely high, with rates 
for video and DVD approaching 100%.  Some sources estimate that Kenya has the highest rate of business software piracy in Africa.   
Please describe any efforts that are being made to reduce piracy of DVDs and business 
software. 
Response:   WT/TPR/M/171/Add.1 
 Page 47 
 
 
  It is true that the piracy is still fairly high.  However, the figures have  remained the same for 
years. The Kenya Copyright Board together with a software lobby group have intensified enforcement 
mechanisms including raids and confiscations of  pirated goods. Through the joint sensitization 
program, there is growing appreciation and respect fo r intellectual property. A number of corporations 
have legitimized their software. Besides the US Chamber of Commerce is jointly working with the 
Government of Kenya towards eradication of  intellectual property infringement especially 
counterfeits and piracy. It is hoped that these effort s will translate into reduced piracy figures.  
6.  Paragraph 106 on page A1-72 of  the Secretariat Report explains that an anti-counterfeit bill is 
under preparation.  
Please indicate and summarize the contents, aim and purpose of the anti-counterfeiting bill 
that is currently under consideration. 
Response:   The Counterfeit Goods Bill, 2005 is meant to fac ilitate an Act of Parliament to prohibit trade 
in counterfeit goods that infringe upon protected inte llectual property rights; to prohibit release of 
counterfeit goods into the channels of commerce; to  create offences relating to trade in counterfeit 
goods; to empower the Commissioner for Customs and Excise to seize and detain suspected 
counterfeit goods; to establish the Counterfeit Goods Agency; and to provide for matters incidental 
thereto. 
7.  We appreciate the information provided on IP R enforcement in paragraphs 106 – 108 on page 
A1-72 of the Secretariat Report.  We would like to request additi onal information on IPR enforcement 
in Kenya. 
A.   Please indicate whether Kenyan Customs officials may prevent the importation of pirated or 
counterfeit goods into Kenya.  If so, please indicat e whether the Customs officials may act on their 
own (ex officio authority) or whether they must act only pursuant to a complaint that is filed by an 
aggrieved right holder. 
Response:   Yes. Kenyan Customs officials may prevent the importation of pirated or counterfeit goods 
into Kenya.  However, the Customs officials cannot act on their own (ex officio authority) but only 
pursuant to a complaint that is filed by an aggrieved right holder. 
B.   What remedies are available to trademark owne rs under the relevant la ws and in Kenya's civil 
courts for infringement of their respective mark s (including any provisional measures and ex parte 
enforcement mechanisms relating to the seizure of infringing merchandise)? 
Response:  
Under the Trade Marks Act, the Customs and Excise Act, and the Trade Descriptions Act 
three types of remedies are available for infringement of trademarks: 
(i) Criminal sanctions through various offences;   
(ii) Civil remedy;  and 
(iii) Border measures. WT/TPR/M/171/Add.1 
Page 48  
 
  C.   Does Kenyan law provide judges the authority to order that goods found to be infringing be 
disposed of outside the channels of commerce? 
D.   Does Kenyan law provide judges the authority to order that materials and implements used to 
create the infringing goods be disposed of outside th e channels of commerce in such a manner as to 
minimize the risks of further infringements? 
Responses:  
Yes, under section 58H(1) of the Trade Marks Act, the court may declare any goods in 
respect of or by means of which the offence was committed to be forfeited to the Government unless 
the owner shows cause to the contrary, or the same be destroyed. 
Under the Copyright Act, the court is required to  order that any article in the possession of the 
infringer which appears to the court to be an infringing co py or to be an article used or intended to be 
used for making infringing copies be destroyed or delivered up to the owner of the copyright, or otherwise be dealt with as the court may think fit. 
Under Section 106 of the Industrial Property Ac t, 2001 the Tribunal is required to grant an 
injunction to prevent infringement where infringement is imminent or to prohibit the continuation of 
the infringement, once the infringement has started and take any other remedy provided for in law. 
E.   Are there any criminal penalties for copyright piracy and trademark counterfeiting? If yes, 
please state what the penalties are and indicate wh ether Kenyan authorities may bring cases on their 
own or whether they may only act on a complaint from a copyright and/or trademark owner.  
Response:  
 Yes! Under section 58 of the Trade Marks Act,  forging a Trademark or sale or importation of 
goods or performance of services with forged regist ered Trademark constitute an offence liable to a 
fine not exceeding two hundred thousand Kenya shil lings or to imprisonment for a term not exceeding 
five years, or both.   
Under section 38 of the Copyright Act, 2001 copyrigh t piracy is an offence liable to a fine not 
exceeding ranges of one hundred,  four, five or ei ght hundred thousand shillings or imprisonment for 
a term not exceeding two, four, six or ten years or  to both fine and impr isonment, depending on the 
nature of infringement. 
8.   We note that in Table AIII.3 on page A1 -121 of the Secretariat Report, products from non-
MRA partners are subject to inspection.  
A.   Could the representative of Kenya explain the process for determining which products to 
include on the list?   
B.   Please clarify to which standards these produc ts are being tested to, and whether there is a 
process for recognizing equivalent standard s?  If so, what is the process?   
C.   Regarding the inspection fee of 0.2%, coul d the representative of Kenya explain how the fee 
is related to the service being performed?   WT/TPR/M/171/Add.1 
 Page 49 
 
 
  Responses:  
The list is prepared on the basis of issues affecting safety, health and environment. For 
instance food products are a potential high health ri sk, hence all foods are subject to PVoC. Electrical 
goods especially those meant for domestic use are a safe ty risk; hence these are subject to inspection. 
Goods that have a potential environmental risk are also subject to inspection for example paper for 
recycling. 
Products are tested using Kenya standards if available. These have been supplied to the 
partners. If no Kenya standard exists, the re levant international standards are used.  
 In cases where no relevant Kenya Standard or In ternational Standard ex ists, then equivalent 
National standards or manufacturers specifications from the exporting country are used. In this case 
the PvoC Partners need to seek author ity from KEBS to use such standards. 
 This fee no longer applies. It previously used to cater for standards development, inspection, 
testing, and technical consultations arising from th e import and was equivalent to the standards levy 
charged on local imports.  WT/TPR/M/171/Add.1 
Page 50  
 
  RESPONSES FROM TANZANIA 
Australia Trade policy generally 
1. According to the Secretariat Report, despite recognition of the importance of trade and trade 
policy reform to their development prospects, trade po licy is yet to be systematically integrated into 
the development strategies of EAC members (WT/TP R/S/171, page 7, para 10).  Are there plans to 
develop, within the EAC, an organizational structure to coordinate the formulation and implementation of trade policy either at the national or EAC level?   
Response:  
At the EAC level there is specific Dir ectorate for trade policy formulation and 
implementation.  At national level the formulati on and implementation of trade policy involve all 
stake holders from the public and private instituti on, civil societies, research and academic 
institutions.  These initiatives are coordinated by th e ministry of Industry, Trade and Marketing 
together with other sectoral ministries. 
Membership of other pref erential trade agreements 
2. Given that Kenya and Uganda are also members of the Common Market for Eastern and 
Southern Africa (COMESA) and Tanzania is a member of the Southern African Development 
Community (SADC), how will the EAC members mana ge policy conflicts (for example, differences 
in rules of origin criteria and intra-regional tr ade liberalization) created by their overlapping 
memberships of other preferential trade agreem ents?  (WT/TPR/S/171, page vi, para 10).   
Response:  
Given that the multiple membership affects all the three EAC Partner States consultations are 
going on with a view to agree on the best option.  
Customs procedures and valuation 
3. Although the principles of EAC customs proc edures and valuation are provided for in the 
EAC Customs Management Act 2004, the WTO Secret ariat Report notes that in practice, customs 
procedures have not been fully harmonized (WT/ TPR/S/171, page 16, para 4).  A recent report 
compiled by a special committee of the East A frican Legislative Assembly (and table on 
21 September) noted that “national regulations co ntinue to be used to administer the Customs 
Management Act, and is thus c onfusing to citizens" (reported in The East African , September 25-
October 1).  What steps are being taken by th e EAC members to harmonize the administration of 
customs procedures?  
Response:  
 The process of harmonization through, in ter alia, consultations, is going on. 
MFN bound and applied tariffs 
4. In the area of non-agricultural goods, the EA C's current average MFN applied tariff is 11.9% 
and there are only 27 lines with a tariff higher than 25% (WT/TPR/S/171, page 19).  Noting that 
under the current framework for the Doha non-ag ricultural market access negotiations, Kenya as a  WT/TPR/M/171/Add.1 
 Page 51 
 
 
  paragraph 6 country would bind its tariff lines about an average ad valorem  rate of 28.5, do EAC 
members consider that the EAC common tariff regime provide an obstacle to Kenya binding a high proportion, 95% or more, of its tariff lines about this 28.5 average?  
Response:  No response. 
5.  In the area of agricultural goods, we note that the EAC's maximum tariff band is again 25%, 
with 31 lines carrying higher rates as an excepti on to this (WT/TPR/S/171, page 17-19).  Under the 
current framework in the Doha agriculture ne gotiations, only Kenya of the EAC Members would 
apply the formula to its bound tariffs, all of whic h for agriculture are currently at 100%, and would 
remain above 25% even after full application of  any proposed formula.  Do the EAC members 
envisage a need in the future to  increase substantially applied tariffs on any of the agricultural 
products where the current applied tariffs are at or  below 25%, and if so under what circumstances?   
Response:  No response. 
Duty and tax exemptions and concessions  
6. When will the EAC members harmonize duty and tax exemptions?  (WT/TPR/S/171, page 
23, para 13)  
Response:  
The EAC Partners States are still discussing the issue; the time is not yet definite. 
Other duties and charges 
7. The Secretariat Report states that the only im port duty provided for by the EAC trade regime 
are tariffs, yet members have individually imposed and bound other duties and charges. 
(WT/TPR/S/171, page 23 para 14).  Do the EAC members plan to harmonize the currently 
individually imposed duties and charges, including internal taxes?  
Response:   Yes for import duties but we have not yet addressed the issue of harmonizing internal 
charges. 
Competition law 
8. At the time of writing of the WTO Secret ariat Report, an EAC Competition Law was still 
under consideration.  Could the EAC members provide an update on the progress of the bill?  (WT/TPR/S/171, page 16, para 3)  
Response:  
At national level, Tanzania has a National Competition Law in place.  An EAC Competition 
Law could be considered once every EAC Partner States have their competition laws in place.   WT/TPR/M/171/Add.1 
Page 52  
 
  Non-tariff barriers 
9. Non-tariff barriers continue to be an obstacl e to the smooth functioning of the customs union.  
What steps are the EAC members taking to remove NTBs impeding trade, including standards and technical requirements (as referred to in the re port) and others including requirements for temporary 
work permits, and the requirement for physical esco rt of goods by police at the port of Mombassa?  
(WT/TPR/S/171, page 24 para 21 and report in The East African , September 25-October 1).  
Response:  
A monitoring mechanism has already been established in the Region.  
Mining and Energy 
10. We understand that Tanzania is currently co nducting a review of mining contracts held by 
multi-national companies (reported in the  East African , September 4-10, 2006).  We would be grateful 
for clarification of the terms, and an  update on the progress of this review. 
Response:  
It is true a review of mining contracts has b een initiated and clarification of the terms and 
update of the review would be made available at a later stage. 
Brazil  
WT/TPR/S/171/TA I (3) (ii) Para 18 page A2-141 
1. The Secretariat report highlights that "Tanzan ia continued to be successful in attracting 
foreign direct investment (FDI) during the period under review (...).  FDI inflows increased from an 
annual average of US$30 million during 1985-95  to an average of US$462 million over 1999-04 
(Table I.3).  In 2004, Tanzania's FDI stock r eached 48% of GDP (US$203 million), well above the 
average of African countries as a whole (27.8%) and of developing countries in general (26.4%).  
How is that flow of investments being translated into advantages for the country? 
Response:  
At the macroeconomic level, FDI has brought ne w capital for investment, contributed to the 
balance of payments, added to the country's capital stock, and potentially adding to future economic 
growth.  Furthermore, FDI has also generated ot her benefits especially higher productivity new 
investment in productive sectors, increased employment, enhanced management capacity and the transfer of technology. Foreign investment has had also important spillover effects on local firms 
through supply and distribution chains, trading, and outsourcing.  
WT/TPR/G/171 – Generic question 2. What is the role of trade agreements for the East African Community members?  
Response:  
The primary role of trade agreements (if prope rly negotiated) is to expand small domestic 
markets with the limited effective demand to larger  common markets, to stimulate economies of scale 
and scope in production.   WT/TPR/M/171/Add.1 
 Page 53 
 
 
  WT/TPR/S/171 III (2) Para 02 page 16 
3. Could the East African Community inform us what authority is responsible for issuing the 
certificate of origin when it is required by importing countries?  
Response:  
At the National level the central authority that  issues certificates of origin is Chamber of 
Commerce. However, there is no central authority for EAC 
WT/TPR/S/171 III (5) Paragraph 20 page 24 
4. Could the East African Community inform us the administrative procedure costs on the 
processing of licenses?  
Response:  
Licenses are issues under National authorities. 
WT/TPR/G/171 III (iii) Paragraph 12 Page 9  
5. According to the Secretariat's Report, touris m is the main foreign exchange source for the 
East African Community.  Please inform the conditions for supplying services under Mode 3 – Commercial Presence – in these sectors, as per document MTN.GNS/W/120 Sector 9 – Tourism and 
Travel Related Services (CPCs 641, 642, 643, 7471 and 7472).  
Response:  
This is open for FDI provided the investor meets the domestic law. 
WT/TPR/S/171 IV (5) (iv) Paragraph 115 Page 194 
6. Please inform the conditions for the supply of the following services in Tanzania, in all modes 
of supply (modes 1, 2, 3, and 4), as per document MTN.GNS/W/120:  Subsectors 1.A 
(d) Architectural services, (e) Engineering services; ( f) Integrated Engineering Services; and Sector 3. 
Construction and Related Services. 
Response:   Being an LDC Tanzania is not obliged to make any commitment under GATS. 
Colombia 
None for Tanzania. 
Canada 
East African Community, Part I) The East African Community (EAC), (2) Legal Framework, page 2, 
paragraph 9 
1. The Report states that the 2001-2005 EAC Development Strategy identifies 12 areas of 
cooperation, including tourism. Moreover, the 2006-2010 strategy is described as currently in draft, 
with its adoption expected by the end of 2006.  WT/TPR/M/171/Add.1 
Page 54  
 
  What are the specific cooperative arrangements cu rrently in place in respect of tourism? What 
new changes, if any, are contemplated unde r the new 5-year development strategy?  
Response:  
 EAC has the following programmes at different st ages of development and implementation:  
• Marketing  and promoting  East Africa as a single tourist destination. 
• Developing regional approach in the protec tion of wildlife resources from illegal use and 
practice. 
• Enhancement of capacity building in the tourism and wildlife sector. 
• Operationalisation of  the East African Tourism and Wildlife Conservation Agency 
(EATWCA). 
• Implementation of the criteria for classification of hotels, restaurants, and other tourist 
facilities. 
• Harmonisation of policies and legislation on wildlife conservation and management. 
• Adoption of a regional approach for par ticipation in regional and international 
treaties/agreements on wildlife conservation and management. 
East African Community, Part I) Overview, paragraph 3 
2. Unlike Kenya and Uganda, Tanzania is a me mber of the Southern African Development 
Community (SADC).  This overlapping membership  poses certain difficulties for the EAC members, 
mainly because of difference in, inter alia, origin criteria, and intra-regional trade liberalization 
scenarios under the various agreements. 
 As the United Republic of Tanzania is current ly a member of both the EAC and SADC, could 
the government please articulate its strategy with resp ect to its participation in the customs unions of 
these two organisations?   
Response:  
Given that the multiple membership affects all the three EAC Partner States, consultations are 
going on with a view to agree on the best option. 
East African Community, Part II) Trade Arrangement s Involving EAC Members: (1) Participation in 
the WTO; page 7 Para 7 
3. Canada notes that according to the Secretar iat Report the United Republic of Tanzania was 
“granted an extension of the transition period fo r the implementation of the TRIPS Agreement until 
1 July 2013, which was due to expire on 1 January 2006”.   
Canada would be grateful if the United Repub lic of Tanzania could advise whether it is 
considering requesting technical cooperation from WI PO or the WTO to enable it to move forward 
towards full implementation of its WTO TRIPS obligati ons by July 1, 2013.  If so, Canada would be 
grateful if the United Republic of Tanzania could advise what might be the priority areas?    WT/TPR/M/171/Add.1 
 Page 55 
 
 
  Response:  
Although Tanzania has already undertaken vari ous technical programmes with WIPO and /or 
WTO, priority needs for technical assistance towa rds full implementation of its obligation under the 
TRIPS Agreement is yet to be conducted. Hence, technical and financial cooperation programmes are 
still needed that include: the formulation of the Na tional Intellectual Property Policy, review of the 
various industrial property laws making them TR IPS compliant, capacity building of the TRIPS 
enforcement agency and to create and enhance stak eholders' awareness for their effective involvement 
in the TRIPS Agreement implementation process. 
East African Community, Other Trade Arrangements, paragraph 25 et seq 4. Has there been any move by Tanzania and its EAC partners to maximise  the use of Canada's 
LDC Market Access Initiative by cooperating on the production of goods to coordinate the 
competitiveness of conditionally eligible Kenyan indu stry, with those of Tanzania and Uganda which 
are fully eligible?  
Response:  
The cumulative rule of origin within EA C would provide opportunities in maximizing 
Canada's market access. In view of this Tanzania will look into  possibilities of exploiting the 
potential. 
Secretariat Report  Part II. Trade and Investment Regimes,  (1) General Framew ork, Paragraph 1,  page A2-143 
5. The Secretariat Report notes the dual authority of the Government of the United Republic of 
Tanzania and the Revolutionary Government of Zanz ibar in the area of investment.  Given that the 
investment policies and programs of the two abov e-mentioned authorities are not identical, and in 
light of the fact that the existence of two separat e and distinct investment regimes within the same 
country could be seen as a deterrent by some potential investors… 
Could Tanzania indicate if it intends to harmonise its investment regime with that of the 
Government of Zanzibar?  
Response:  
Tanzania is the union between Tanganyika and Za nzibar.  Some issues such as investment  
are non-union matters.  TIC and ZIPA  promote Tanzania as one country  in the international forum but 
there are some specific issues of Zanzibar which ZI PA is the organ responsible for promotion. The 
establishment of a specific regime for Zanzibar re flects the autonomy of Zanzibar on domestic Trade 
development measures particularly expor t promotion and investment promotion 
Part II. Trade and Investment Regimes, (4) Inv estment Framework, Paragraph 17, page A2-147 
6. The Secretariat Report notes that the Invest ment Act allows for “enhanced incentives” for 
investments that are considered to be “strategic to the economy”.   
Could Tanzania indicate the specific criteria th at are used to determine if a particular 
investment is “strategic”, what additional incen tives are available once an investment has been 
determined to be strategic, and if  and how this information is made available to potential investors? WT/TPR/M/171/Add.1 
Page 56  
 
  Response:  
 Criteria for strategic investor status are menti oned under the Investment Regulations of 2002.  
These criteria area: 
• Magnitude of capital to be invested; 
• Employment creation; 
• Introduction of new and relevant technology; 
• High capacity to produce for the export market; and 
• Investment in disadvantaged regions. 
This information is published and widely distributed, including through Tanzanian Missions 
abroad. 
Part III. Trade Policies and Practices by  Measure, (I) Introduction, page A2-151 
7. The adoption of the EAC CET in January 2005 led to a reduction in Tanzania's applied MFN 
tariffs from an average rate of 13.5% at the end of 2003 to 12.9%.  Nonetheless, in addition to 
customs tariffs, certain imports are now subject to a destination inspection fee of 1.2% on the f.o.b. 
value, and to a US$10 customs processing fee, although Tanzania bound other duties and charges on 
the products covered by its tariff binding commitmen ts at zero.  Imports, as well as locally produced 
goods, are also subject to a VAT at a standard rate of 20%, and to excise duties.  Tanzania's tariff 
bindings cover 13.5% of all its tariff lines, with bound ceiling rates of 120% for both agricultural and 
non-agricultural products. 
We note that Tanzania's destinati on inspection fee is charged on an ad valorem  basis rather 
than reflecting the cost of the service provided, which is contrary to GATT Article VIII 
1(a) Has Tanzania considered adjusting th is fee to reflect the cost of service?  
Response:   The destination inspection fee is charged on an  ad valorem basis because of difficulties in 
determining the cost involved in each transaction. Also it is difficult for TRA to determine and verify 
the authenticity of cost incurred by their agent (TISCAN) in provi ding the destination inspection 
services. However after the expiry of TISCAN cont ract TRA will stop charging destination inspection 
fee because it will have built enough cap acity to perform the inspection. 
Part III. Trade Policies and Practices by Measure , (4) Measures Affecting Production and Trade, 
Paragraph 78, page A2-165 
8. The Secretariat Report notes that although Tan zania has made considerable progress in its 
privatisation efforts, a number of significant SOEs, particularly those involving utilities and 
infrastructure, have yet to be dealt with.   
Given that the reform process has been underw ay since the early 1990s, could Tanzania 
indicate the measures that it is taking to finalise the privatisation process?  WT/TPR/M/171/Add.1 
 Page 57 
 
 
  Response:  
 Tanzania has already completed the privatiza tion of productive sector SO's including those in 
Agriculture, Industry and tourism.  However, the privatization of utilities and transportation sector 
SOEs by concessioning is difficult and involves changes in strategy.  Best practice today shows that private sector participation is the key for success.  The government continues with initiatives in this 
direction. 
Part IV. Trade Policies by Sector, (1) Introduction, page A2-170, paragraph 4 9. The Report notes that several state-owned ente rprises in tourism sector have already been 
privatized or concessioned.  
What is actually meant by “concessioning? What are the criteria used to determine whether an 
SOE will be privatized or concessioned?   
Response:   Concessioning is a form of privatisation where the assets remain under the ownership of the 
Government while the private sector manages it under agreed terms over a long period of time.   
This is generally applicable in improving effici ency in the transport sector (railways, ports 
and airports etc) and utilities. 
Primary criteria is retention of assets in government hands. 
Part IV. Trade Policies by Sector: (3) Mining and Energy (i) Mining; page A2-180, paragraph 48 10. The Report notes that mining is the fastest growing sector in Tanzania's economy: 
contribution to GDP was 3.2% in 2004 and is pr edicted to reach the level of around 10% by 2025 
according to Tanzania's Development Vision 2025.  
  Given Tanzania's goal for 2025, are Tanzania's  existing goals, policies and practices in this 
area expected to remain for some  time or are significant changes under consideration in any key 
areas?  
Response:  
It is normal to fine-tune policies with a view to improving the investment climate and balance 
social and economic objectives over time.  Tanzania is committed to maintaining policy stability in a 
dynamic environment where review of sectoral po licy implementation instruments such as procedures 
with a view to achieve underlying goals and objectives is a prudent course of action.  Tanzania will 
continue to adjust its policy e nvironment from this perspective. 
Part IV. Trade Policies by Sector: (3) Mining and Energy, (i) Mining; pages A2-180-181, 
paragraph 49  
11. Has Tanzania conducted a recent evaluation of its existing regulatory framework or its  
practices in order to ensure continued support from the private sector, which is identified as the leader 
for mining growth? WT/TPR/M/171/Add.1 
Page 58  
 
  Response:  
In line with changed macro-economic policy of the country, the mining policy stresses private 
sector initiatives and the need to attract modern te chnology and necessary investment capital for large 
scale mining. 
It sets out strategies for rationalizing artisanal  and small-scale mining into organized and 
efficient operations in order to ensure gainful empl oyment and poverty alleviation. It also aims at 
initiating actions: 
To mitigate the adverse environmental and social aspects of mining. Under this policy the role of the government will be stimulate and guide private mining 
investment by administering, regulating and facilit ating the growth of the sector through a well 
organized and efficient institutional framework. Ho wever, the Government will not abdicate itself 
from the role of providing extension services to the artisanal and small scale miners. 
The Government of Tanzania recognises the pos itive contribution of the artisanal and small 
scale mining sub-sector to the economy which include  the discovery mineral occurrences, mineral 
production and creation of employment in incomes in  the rural communities. In view of this , the 
Government is committed to supporting the small scale mining sub-sector by facilitating the 
transformation of the present artisanal mining activities into more organized and modernized small-scale mining units, and by promoting modalities of mi neral marketing which encourage transparent 
business transaction and discourage smuggling. 
The private sector will play the role of being the principal vehicle for carrying out direct 
investment in mining. 
12. Given Tanzania's stated desire to foster pr ivate-sector-led mining growth, can Tanzania please 
provide its rationale for its practic e of conducting extensive company a udits of firms operating in this 
sector in Tanzania?  
Response:  
For about 8 years the government has not benefited accordingly from mining sectors. The 
audit aims to ascertain the mines operations incl uding investment expend iture and operating cost. 
13. Could Tanzania indicate what it has learned and whether changes have been made to its 
regulatory framework or its practices as a direct result of these audits?  
Response:  
The audit has revealed some discrepancies re lated to mine's operations which requires the 
Government intervention or measures 
Secretariat Report on the East African Community, Annex 2: Tanzania, IV. Trade Policies by Sector, 
(5) Services, (iv) Tourism, page A2-195, pa ragraph 118  
14. According to the Report, the National Tour ism Policy (NTP) of 1999 calls for a repeal of 
existing tourism legislation and re gulations, and the adoption of a Tourism Act that is transparent, 
enforceable, and fair.  In footnote 200, the Report i ndicated that a draft bill for the consolidation and 
amendment of tourism laws was prepared in 2001, with the Tourism Act intending to serve as a legal 
basis for implementing the NTP.   WT/TPR/M/171/Add.1 
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  What is the status of the Tourism Act? Wh en is it expected to enter into force? 
Response:  
The Cabinet has approved the paper and the B ill has already been prepared.  The Bill is 
expected to be tabled before the parliament in its Session of October/November 2006, to become an 
Act. 
Section 2. Economic Environment: Sector Performan ce, Mining and Minerals; page 22, paragraph 25 
15. The reports notes that the gemstone mining industry employs more than 700,000 people and 
that these figures could increase dramatically if the trade can be formalized and more value adding activities undertaken in the country.   
Is Tanzania offering incentives or taking other st eps to promote investment to add value in the 
gemstone mining sector?  
Response:  
Incentives include zero rated royalty for gemst one which are cut and polished where as rough 
gemstone are charged 5% royalty. 
Section 2. Economic Environment: Sector Perform ance, Transit Trade; page 22, paragraph 26 
16. It is noted on the report that Tanzania has strong historical bonds with the countries of the 
Great Lakes:  Burundi, Congo DRC, Malawi, Rwa nda, Uganda and Zambia .  Dar es Salaam port 
remains the primary gateway for these countries.   
What trade benefits are expected from the take -over by the government port authority of the 
Great Lake ports? 
Response:  
The following are the advantages of Great Lake  Ports being under Tanzania Port Authority 
(TPA): 
(i) Development and modernization of Great Lakes Ports. 
(ii) Benefit from intensive capital investment from a large pool of resources. 
(iii) Adherence to International Standards and in ternational maritime rules and regulations. 
(iv) TPA can be able to control and mon itor revenue collection in the ports. 
Improved performance and efficiency in cust omer services through modern and efficient 
clearance facilities is also expected.  
Section 3. Policy Objectives and Structural Reform s: Economic Infrastructure, Ports and Customs, 
page 27, paragraph 52 
17. The report stated that “the Economic Re form Programme incorporates measures for the 
modernization of Dar es Salaam port and that the Container Terminal has raised efficiency in 
container through-put, and dwell-tim es to internationally competitive levels in spite of rapid 
expansion of economic activity.  Ship turn around time has been reduced from 4.1 days in year 2000 WT/TPR/M/171/Add.1 
Page 60  
 
  to 2 days at present, while waiting time has been reduced from 0.5 days to 0.2 days over the same 
duration”. 
Notwithstanding that, we have been repor ted of Canadian companies delays and 
unexpected charges in the clearing of their containers . Is this a general problem? What steps are being 
taken to address it?  
Response:  
It is true that the container terminal at Da r es Salaam port has been privatised and improved 
tremendously and efficiency has been noted on the ship and container turn round. Delays and consequently unexpected charges th at has been expressed by the Cana dian companies is an isolated 
case. Measures are being taken to minimise the occurrence of such isolated cases. 
European Communities 
T
HE ECONOMIC ENVIRONMENT  
1. The region has lately been faced  with a drought and energy crisis. 
Could more information be provided about the impact of this crisis on the economies?  
Response:  
Except for the drought-hit 2003, trend shows that economic growth has been rising 
consistently over the past eight years. The stru cture of the Tanzania's economy is such that 
agriculture; trade (including tourism); finance a nd insurance and manufacturi ng have substantial size 
in the economy, and thus have an influence on the outturn of the overall GDP. Contribution of these 
sectors to the total GDP average 47.8; 16.5; 10.1; and 8.5 percent respectively for the same period. 
Performance of the economy might thus be at risk if any of the above sectors is affected. To a large 
extent, agriculture is rain-fed economic activity a nd is thus affected when there is prolonged drought 
or late rains. Following the severe drought that adve rsely affected the economy during the first half of 
2005/006, the GDP growth rate of agriculture is most  likely going to be low – projected at 3.8 percent 
in 2006 compared to 5.2 percent in 2005. Likewi se, manufacturing sector is expected to perform 
unsatisfactorily following the current power rati oning resulted from drought. Manufacturing sector is 
expected to grow by 7.1 in 2006 compared to 9.0 percent in 2005. On the other hand, electricity and 
water is the sector with the lowest contribution to the GDP, averaging 1.7 percent annually. Even 
under the current power rationing, electricity sub-secto r is not going to be affected much, but rather 
dependent sectors (e.g. manufacturing) will suffer the consequence. Furthermore, the performance of 
electricity sub-sector is not expected to have an y significance  impact on the overall GDP growth due 
to its smallest share to the total GDP. 
THE EAST AFRICAN COMMUNITY  
2. The EC would be interested in an upda te on progress with the roadmap for the Common 
Market, also in light of Tanzania's declaration that  the country is not ready to commit to the initially 
agreed timetable.  
Response: 
Tanzania is committed to the agreed timetabl e which impedes evolution of the negotiations 
and ratification of the related Protocol by 2009.  WT/TPR/M/171/Add.1 
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  Domestic Investment 
3. Does EAC believe that double taxation with in EAC is a hindrance to intra-regional 
investments? Is there a plan to resolve the situation?  
Response: 
An Agreement on Avoidance of Double Taxa tion for the three Partner States has been 
concluded and adopted by EAC.  Partner States  are expected to ratify the Agreement then 
implementation will follow. This will reso lve the hindrances posed to investment. 
Foreign Investment 4. How do the EAC countries see foreign investment evolving over the coming years?  Response: 
This is one of the aims of the Customs Union which has created a wider market, expected to 
promote cross border investment, cross listing on the stock markets by companies, improved investment climate, improvement in infrastruct ure and removal of non-tariff barriers and fair 
competition. EAC has concluded and adopted a Mode l Investment Code, Private Sector Development 
Strategy and a Joint Export and Investment Study as tools for attracting foreign and local Investment. 
Trade and social issues 
5. The Service Sector Export Strategy, adopted by the Uganda Export Promotion Board in 2005, 
identified migrant labour one of five priority sub- sectors for intervention to enhance national capacity 
to export services.  
What policies are being put in place to address this issue?  
Response: 
The draft National Trade Policy recognizes the importance of the services and specifically 
commits to implementation of the Services Export Strategy.   
6. The EAC states that labour law reform is one of the priority measures under Better 
Regulation.  
What legislation is in place for labour standards, particularly in export sectors?  
Response: 
The Labour Law reform includes passing of policies and enactment of legislation in three 
areas related to labour standards i.e. Workmen's Co mpensation Bill; and the Occupational Safety and 
Health Bill:  These bills are in the process of enactment . 
7.  While some measures have been taken to a llow free movement of labour (e.g. recognition by 
Kenya of lawyers from Uganda and Tanzania), this  is an area in which further steps could be 
beneficial. What plans does EAC have to stimulate further mutual recognition of professions?  WT/TPR/M/171/Add.1 
Page 62  
 
  Response: 
The Partner States are currently negotiating the free movement of labour, and the various 
professions will be taken on in this context .  
8. The potential of the services sector remains larg ely unexploited in the EAC. For example, the 
lack of skilled labour is one factor that has limited the development of tourism. 
Does the EAC have policies for skills training a nd working conditions to redress the problem?  
Response: 
Yes, these policies are in place at the national level. Tanzania is in the process of establishing a Tourism Training College for skills development 
across the industry. 
Sustainable development 
9. In what ways does EAC think trade policy can best contribute to sustainable development?  
Response: 
It is the engine of economic growth. 
Trade and environment 
10. What mechanisms does EAC have in place to ensure adequate coordi nation of environmental 
policy and trade policy?  
Response: 
The EAC has concluded a protocol on Envi ronment and Natural Resources Management. 
T
RADE POLICY ARRANGEMENTS INVOLVING EAC  MEMBERS  
11. The Members of the East African Community  (EAC) are also involved in several other 
regional groupings such as for example SADC and COMESA.  
The EC would be interested in further information concerning possible difficulties resulting 
from overlapping of these regional agreements in certain areas, including, in some cases, contradictory commitments. For example, we unde rstand that EAC and COMESA plan to harmonize 
their Common External Tariffs in th e near future. In parallel, Tanzania is a member of SADC and 
grants other SADC members prefer ences under bilateral protocols.  
How does EAC plan to co-ordinate or harmonize these different and sometimes incompatible 
agendas?  
Response:  Consultations on the issue are going on to come up with an ideal solution. 12. Could information be provi ded on the state of play of EAC accession negotiations with 
Rwanda and Burundi?   WT/TPR/M/171/Add.1 
 Page 63 
 
 
  Response: 
 Negotiations for admission of Rwanda and Bu rundi are in advanced stages.  Detailed 
technical evaluations based on verifiable indicators have been completed. The Summit is expected to 
pronounce itself on the admission in November 2006. A roadmap for joining the various programmes and organs is be ing developed. 
13. Could the fact that the individual EAC members are negotiating EPAs with the EC under 
different regional configurations eventually have an impact on the functioning of the EAC customs 
union?  
Response: 
This is an issue that EAC is critically looking at and proposals will be made in respect of the 
EPAs.  Currently EAC is consulting with Partner States on the best option that will cater for EAC 
interests. A study has been commissioned to provi de a way forward for EAC in negotiation of EPAs.   
T
RADE -RELATED TECHNICAL ASSISTANCE  
Tanzania 14. Is the DTIS a fully integrated part of Tanzania's NGPRS? If not, why not? 
Response: 
The Tanzanian DTIS is currently being subjected  to consultations within Government with a 
view to achieving the goal of integration into the P overty Reduction Strategy.  It is expected that this 
process will be completed before the end of 2006 so that implementation will start in January 2007.   
C
OMMON TRADE POLICY MEASURES  
CUSTOMS PROCEDURES  
Tanzania 
15. The EC welcomes the reform plans of Tanzania's customs service.  
What services does the destination inspection regime provide?  
Response: 
The provision of the DI services includes pr e-clearance arrangements including documentary 
checks on valuation  and classification of goods; Ri sk Management; and X-ray scanning services. The 
main objectives of the DI scheme is to ensure th at the correctness of quality, quantity, HS Code 
classification and the Valuation of the imported goods  are in accordance with the WTO Agreement on 
Customs Valuation (ACV). 
16. What is the division of tasks between this regime and customs?   
Response: 
TISCAN which conducts the DI is working as an agent of Customs but final decision on 
customs matters is done by th e Commissioner of Customs. WT/TPR/M/171/Add.1 
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  17. As the customs service beco mes increasingly effective, including through the introduction of 
improved automation (ASYCUDA++), does Tanzania have any plans to phase out the destination 
inspection regime? 
Response: 
After the expiry of TISCAN's seven years contract with TRA, which  commenced on 1
st 
January 2004, Customs will have the requisite ca pacity to perform all the functions, which are 
currently performed by TISCAN and therefore phase  out pre clearance arrangements  services, which 
TISCAN has been providing. 
18. Given the capacity constraints of Tanzan ia's customs service, has Tanzania identified 
particular technical assistance needs in this field? 
Response: 
Yes but not according to the current Trade Facilitation negotiations are concerned in the 
context of the Doha Development Round which are limited in scope to reviewing and clarifying 
GATT Articles V, VIII and X. 
The FAD Technical Assistance Mission conducted in April – May 2004  recommended a 
significant number of changes in areas related to  Customs legislation, procedures, compliance, 
enforcement and management. Following-on from th e mission and a more broad ranging review of 
Customs operations by Maxwell Stamp Plc (MSP), a  Modernization Plan for Customs was developed 
that is consistent with the FAD recommendati ons and the TRA 2008 Vision for a Modernized Tax 
Administration and the overall modernization was split in two stages.  
 In general terms, Stage 1 has been focuse d on the introduction and roll out of ASYCUDA ++, 
trade facilitation (specifically improving trade rela ted processes) and on streamlining  administrative 
arrangements  associated with Customs 'schemes'. The focus of Stage 2 is on the development and 
implementation of new approaches to complia nce management; border control, enforcement 
(including FAST teams), risk management and intelligence.  
The introduction of computers for the purpo ses of risk management and enforcement 
targeting is also covered as is  customs traini ng and training delivery. A Business Case was developed 
late in 2004 to seek Development Partner fundi ng for  further consultant support for Stage 2 
modernization initiatives. In all instances customs has implemented most modernization  initiatives 
falling under stage 1. However, some initiatives have  not been implemented for reasons of suitable 
resources (both consultant and cu stoms) not being available and/or because they are so interlinked 
with the Stage 2  initiatives that its implementation has not commenced.  
Moreover, of vital importance to Tanzania, is  the commitment in paragraphs 4 and 5 of 
Annex D of the July Framework relating to identifyi ng needs and priorities, and cost implications of 
the various measures, and the assurance of adequa te technical and financial assistance during the 
ongoing negotiations.  In conc rete terms, this types of assistance should be extended immediately if 
Tanzania as an  LDC is to be enabled to have fu ller and clearer understanding of all the implications 
of the various proposals that are being negotiated unde r Trade facilitation.  In the specialized area of 
Customs reform, it is vital that capital officials be more effectively involved in the discussion of the 
various proposals and their implications, and support a nd assistance in this regard will be vital in the 
coming months.  WT/TPR/M/171/Add.1 
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  TARIFFS AND OTHER DUTIES AND CHARGES  
19. The implementation of the Common External Ta riff continues to pose practical difficulties to 
the EAC members. These include, for example, unila teral changes to the CET by one country, non-
application of agreed preferential rates for intra EA C trade, or circumvention of the official border 
controls.  
 How does EAC plan to tackle these practical difficulties in the application of the CET?  
Response:  Consultations are going on. 
20. Recent reports have concluded that some traders in the EAC bloc continue to transport their 
goods through illegal routes in order to evade tax, d espite the fact that they can legally be exported 
duty free. If possible, we would be interested in in formation on what scale this illegal trade is taking 
place and what measures are being taken to prevent it?  
Response: 
The problem is largely prevalent in all border areas between nationals of adjacent countries. 
The solution is large scale publicity on the benefits of the EAC including products that can be traded 
duty free to encourage formal trade-flows. 
21. During the Uruguay Round, EAC members bound their tariffs individually. These tariffs 
binding commitments leave ample margins fo r discretionary increases in applied rates. 
Do the EAC countries envisage binding the EAC Common External Tariff?  
Response:  The EAC in consultation with the Partner Stat es will consider increase on tariff binding 
coverage in conformity with WTO agreements.   
S
TANDARDS AND OTHER TECHNICAL REQUIREMENTS  
22. Article 13 of the Protocol on the Establishm ent of the East African Customs Union obliges 
member states to remove all non-tariffs barriers (N TBs), with immediate effect and not to impose any 
new ones. Furthermore, EAC member states mu st formulate a mechanism for identifying and 
monitoring the removal of NTBs, including st andards and technical requirements.   
 What kind of mechanism is going to be applied to achieve this aim and when?  
Response: 
In the EAC there has been al ready an  established NTBs monitoring mechanism in the  
Region. It will work based on the monitoring of identified NTBs. 
EXPORT PROHIBITIONS , RESTRICTIONS , AND LICENSING  
23. All three EAC countries maintain export taxes in various areas. 
Could information be provided on plans to phase out export taxes?  WT/TPR/M/171/Add.1 
Page 66  
 
  Response: 
Basically Tanzania has already phased out export ta x, that is why only two products currently 
export tax apply namely hides and skins and on scrap metals. Export taxes on these products have 
been executed to excessive export of the products wh ich has endangered internal capacity in terms of 
value addition on local raw materials and industriali zation. Therefore in order to encourage value 
addition and provide enough raw mate rials to internal industries export taxes has been implemented 
on these products. 
The policy changes on these particular produc ts will depend on the ability and capacity of 
internal sectors namely leather sector and steel sector to sustain external shocks in terms of competing for the available raw materials. 
C
OMPETITION POLICY  
24. Do the EAC members plan to co-opera te in the area of competition policy?  
At national level, Tanzania has a National Competition Law in place.  An EAC Competition Law 
could be considered once every EAC Partner States have their competition laws in place.  
GOVERNMENT PROCUREMENT  
25. Could EAC provide statistical data on Govern ment Procurement contracts established by type 
of contracting entities (central, sub-central/regional/local), object (supply, services, and works), suppliers' status (local, foreign, intra-regional)?  
 Does EAC use or envisage using electronic tendering?   Is there any government procurement agreem ent between countries? If yes, please describe 
them.  
Response: 
This activity is handled at national level. Ther e is no computerized system in place to compile 
statistics therefore this information will take time to compile and will be discussed with EC. 
 The government has a programme to comput erizing its functions based on identified 
priorities. 
IV.
  T RADE POLICIES BY SECTOR  
TRANSPORT SERVICES  
WTO Secretariat's Report, paragraph 101 26. There is a significant difference in the pr ice of licenses (per year) for operating passenger 
vehicles that are charged to foreign operators, as opp osed to local operators (over 3 times higher for 
foreign operators). 
Could the Tanzanian authorities explain why ther e is a significant difference in the fees paid 
for passenger vehicle licenses by national operators  on the one hand and by foreign operators  on 
the other?   WT/TPR/M/171/Add.1 
 Page 67 
 
 
  Response: 
Tanzania as an LDC and developing countries are allowed under  various WTO agreements 
such as RTAs to undertake such measures as an  exception to create policy space for addressing 
development concerns.   
Hong Kong, China 
Standards and technical requirements 
(WT/TPR/S/171, P. 24, Paras. 21-22; WT/TPR/S/171/KEN, P. A1-56&57, Paras. 31&32; 
WT/TPR/S/171/TZA, P. A2-156, Paras. 30-31; WT /TPR/S/171/UGA, P. A3-236, Paras. 25 and 27) 
1. We note the EAC's initiative to remove all non-tariff barriers between Union members.  We 
would like to know whether this initiative would be extended equally to other WTO members.  
Response: 
 This is a Regional Trade Agreement, of which two-thirds are LDCs.  The concessions 
exchanged are internal to participating Partner St ates.  However, the concessions exchanged in a 
multilateral setting remain unaffected. 
2. We are glad to know that standards and tec hnical requirements are applied equally to imports 
and locally produced goods in the EAC.  We also  appreciate efforts of EAC members to harmonize 
their national standards with international or re gional standards (i.e. EAC standards).  Kenya has 
indicated that about 50% of its 4 000 standards are e quivalent to ISO standards.  We are interested to 
know the progress of harmonization of the other two EAC members.  
Response: 
In principle most of Tanzanian standards have  been adopted from ISO standards.  Tanzania 
has a total of  464 standards of which 68% are voluntary standards and 32% are mandatory. 
Japan 
COMMON TRADE POLICY MEASURES (2) CUSTOMS PROCEDURES (i) Customs clearance 
and valuation (Page 16, Paragraph 4) 
1. The Secretariat report notes that customs pro cedures have not been fully harmonized by EAC 
members despite the EAC Customs Management Ac t 2004 that stipulates the principles of EAC 
customs procedures and valuation.  
Please explain the reason why customs procedures have not been fully harmonized by EAC 
members on the basis of the EAC Customs Management Act 2004.    
Response: 
The EAC Customs Management Act is applied uniformly by the Customs Administration in 
the Partner States. 
The EAC Customs Regulations have been fi nalised and will commence application on 
1st November 2006. 
 The harmonisation of Customs procedure is  on plan and will commence in January 2007.  WT/TPR/M/171/Add.1 
Page 68  
 
  ANNEX 2 TANZANIA III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) MEASURES DIRECTLY AFFECTING IMPORTS (i) Business registration, customs procedures 
and valuation (Page A2-152, Paragraph 7) 
2. The Secretariat report refers to the measures taken by the government to facilitate trade, 
including reducing smuggling and corruption. 
Please provide detailed information on the sp ecific measures that address such issues. 
Response: 
Under the Customs modernization plan the a pproach of Customs is based on self-assessment  
with appropriate  facilitation such as modern clearance system and pre-arrival declaration, client 
compliance management and risk management. 
Initiatives taken by Customs to improve integrity and reduce corruption include 
Simplification of Customs Procedures, Automation,  Segregation of Duties and Rotation of Staff, 
Audits, Recruitments, Code of Conduct, Training and Incentives 
 Measures taken by Customs to reduce smuggling include: 
(a) Exchange of information with other Revenue  Authorities and effectively implementation of
 initiatives and agreements signed such as TRA/KRA/URA and other agreements.  
(b) Effective Control of EPZ, MUB and Custom s Bonded Warehouse and conduct risk based 
 audits of MUB to ascertain goods  have been exported as intended. 
(c) Enhance controls related to monitoring of tr ansit goods especially petroleum products, gather 
 transit documents and reconcile  transit documents from loading points to the exit points. 
(d) Enhance monitoring and Administration of tax exemptions consumption of Petroleum 
 products and importation of goods made throug h various laws including Investment Act, 
 Customs Management Act, Excise Ordinance as well as Value Added Tax Act. 
(e) Enhance monitoring of the bond movements and supervise changes made on the systems of 
 bonded warehouses for the purpose of protecting revenue leakage. 
(f) Continue to fight smuggling of goods by impos ing deterrent penalties including forfeiture of 
 goods to all defaulters.  
(g) Effective use of the risk profile in overseeing the intervention, management and monitoring of 
 scanning, examination operations, release and re assessments. 
(h) Installation of ASYCUDA++ processing system at all major customs stations to ensure that 
 all processing of transit goods is done electronically. 
 Furthermore, Customs has developed anti-sm uggling strategy and action plan based on a 
careful assessment of risk and the impact of ri sk on revenue, domestic industry, and legitimate 
importers. The action plan which is in the implementation process include assignment of 
responsibilities to senior managers. 
(ii) Tarifs (Page A2-154, Paragraph 15) 
3. Please indicate the prospects of the Government of Tanzania for improving its binding rates 
of the MFN tariffs.  WT/TPR/M/171/Add.1 
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  Response: 
 This requires extensive analysis in terms of special products to identify sectors and products 
that require special safeguards.   
Republic of Korea 
EAC-Tanzania 
Measures Directly Affecting Exports(WT/TPR/S/171 /TZAp.A2-160 para.52~54, p.A2-181 para.50) 
1. Tanzanian government has prohibited exporting particular agricultural products due to the 
food situation brought about by the drought, and also continued issuing licenses for mineral-mining 
and exporting. Shortage of such information has cau sed several fraud cases, wh ich leads to concerns 
about safety of transactions. Does Tanzanian government have plans to consider the way to enhance safety and transparency of transactions in terms of exporting agricultural and mineral 
products?  
Response: 
Yes. 
United States of America 
Annex 2 - Tanzania - WT/TPR/S/171/TZA  
TRADE POLICIES AND PRACTICES BY MEASURE  
Measures Directly Affecting Imports - Impor t prohibitions, restrictions, and licensing 
1. We appreciate the import licensing informati on included in paragraphs  23-24 on page A2-155 
of the Secretariat Report.  However, we note that Tanzania has not submitted any notifications to the 
WTO under the Agreement on Import Licensing Procedures. 
What steps is the Tanzania taking to fulfil its notification requirements under the Agreement 
on Import Licensing Procedures? 
Response: 
Tanzania has a liberal Import Licensing regime based on the Open General License that is 
granted to all importers with a few exceptions based  on a small negative list (Sensitive Products).   
Notifications requirement was one of the area s that was supposed to be covered under JITAP 
I and II of which Tanzania was a beneficiary. The im plementation of this issue is yet to be done while 
Tanzania exited in this programme at the end of la st year.  Tanzania intends to continue this work 
under measures for implementing the DTIS under the In tegrated Framework.  Technical assistance 
will be sought to address unfinished business such  as notifications in certain areas such as SPS 
standards, TBTs, TRIPS, Trade in Services and Trade Facilitation which is  still under negotiations. 
Measures Directly Affecting Imports – Standards and other technical requirements – Standards, 
testing and certification 
2. We appreciate the information on Tanzania's standards, testing and certification provided on 
pages 156 and 157 of the Secretariat Report. We note however that Tanzania has not made any 
notifications to the WTO under the Agreement on Technical Barriers to Trade.  WT/TPR/M/171/Add.1 
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  What steps is Tanzania taking to fulfill its notification requirements under the Agreement on 
Technical Barriers to Trade?  
Response: 
As mentioned earlier, Tanzania will seek to a ddress the issue of securing technical assistance 
to fulfill its notifications requirements under va rious Agreements which include TBT under the 
Integrated Framework. 
Measures Affecting Production and Trade – Intellectual Property Rights 3. According to Paragraph 86 on page A2- 168 of the Secretariat Report, we understand 
Tanzania is currently revising its Trademark and Geographical Indications legislation “to meet WTO 
commitments by 2013.”   
Will the new legislation provide for the principles of priority and exclusivity as provided for 
in TRIPs between trademarks and geographical indi cations in which the preservation of trademark 
rights is maintained when granting pr otection for geographical indications? 
Response: 
Yes, the principles of priority exclusive ri ghts have always been the essence of protection 
under the industrial property subject matters such as trade and service marks.  Tanzania is currently 
reviewing its Industrial Property Legislation with th e view to consolidating it and make it TRIPS 
compliant. 
Paragraph 88 on page A2-168 of the Secretariat Report states that the Copyright and Neighboring 
Rights Act No. 7 of 1999 established the Copyright Society of Tanzania (COSOTA).   
4. Could you please describe the functions of this office? Response: 
The functions of COSOTA are given under Sec tion 47 of the Copyright, Act No. 7 of 1999: 
(i) to promote and protect the interest of authors, performers, transistors, publishers and in 
particular to collect and distribute any royalties or other remuneration accruing to them in respect of their rights; 
(ii) to maintain registers of works, productions , and associations of authors, performers, 
translators, producers of sound recordings, broadcasters and publishers; 
(iii) to publicize the rights of owners and give evidence of ownership of these where there is a 
dispute or an infringement; 
(iv) to print, publish, issue or circulate any in formation reports, periodicals, books, pamphlets, 
leaflets, or any other material relating to co pyright, expressions of folklore and neighboring 
rights; 
(v) to advise the minister on all matters under the Act. 
5. Paragraph 91 on page A2-169 of the Secr etariat Report states that “Tanzania does not 
currently have the resources to enforce its inte llectual property laws but is moving toward active  WT/TPR/M/171/Add.1 
 Page 71 
 
 
  enforcement both domestically and at the border.  It is working with the Copyright Collective 
Management Association on enforcement issues.”   
Please indicate what civil and criminal remedies, if any, are available to trademark and 
copyright owners under the relevant laws and in Tanzania's courts fo r infringement of their respective 
works and marks. 
Response: 
 Civil remedies for infringing copyrights laws are provided for under section 36 of the Act: 
(i) Temporary or permanent injunction to preven t or prohibit continuation of infringement. 
(ii) Payment of damage suffered as a consequence of infringement. 
(iii) Seizure of pirate copies of e.g. books, cassettes, etc. 
(iv) Right of destruction of all infringing copies or equipments. 
(v) Modification of infringing copies or equipments. 
(vi) Right of delivery to the victim of all infringing copies and equipments. 
Criminal remedies are provided under section 42 of the Act. The Act provides for various 
fines and/or terms of imprisonment ranging from Tsh.  3,000,000/= to Tsh. 10,000,000/= on terms of 
imprisonment ranging from 3 years to 10 years. 
It should be noted that COSOTA also need  technical assistance from WTO and WIPO to 
build capacity for compliance with  TRIPS. The general public , ar tist, government and enforcement 
agencies such as Police, Customs, Judiciary, Culture and Trade, need many educational and 
sensitization seminars. Furthermore, after five years of implementation, the Act is now ripe for review 
e.g need to provide for droits des suites (resale rights of works of fine arts or handicrafts) 
 Civil remedies on infringing of trade marks are available by court action under provision of 
section 32 of the Trade and Service Marks Act No. 12 of 1986. However, this law does not provide for criminal remedies . 
6. Please indicate whether Tanzanian Customs officials may prevent the importation of pirated 
or counterfeit goods into Tanzania.  If so, please indicate whether the Customs officials may act on 
their own (ex officio authority) or whether they mu st act ONLY pursuant to a complaint that is filed 
by an aggrieved right holder. 
Response: 
Tanzanian Customs authorities can prevent the importation of pirate or counterfeit goods into 
Tanzania because pirate or count erfeit goods are prohibited goods as specified in Part A of the second 
schedule to the East African Community Customs Ma nagement Act, 2004. Section 18 of the same Act 
provides the legal power of prohibiting importati on of prohibited goods. In addition to that, section 
200 of that same Act stipulates that importation of  prohibited or restricted goods contrary to any 
condition regulating such importa tion constitutes an offence whereby offenders on conviction are 
liable to imprisonment for a term not exceeding five years or to forfeiture of goods. Currently the 
EACCMA, 2004 does not have a proper definition of pirate or counterfeit goods and that customs 
officials do not have the proper skills of identif ying goods of the said nature and highly depend on 
other competent Authorities e.g. Trade Commission. WT/TPR/M/171/Add.1 
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  Norway 
1. "In addition to the EAC membership, Uganda  is a member of  the Common Market for 
Eastern and Southern Africa (COMESA), while Tanzania is a member of the Southern African Development Community (SADC). COMESA and SADC both intend to form customs unions. 
This will entail two different Common External Tariffs. Overlapping customs unions are obviously 
problematic, as one country cannot ope rate two different external tari ffs at the same time. How will 
this problem be approached? "  
Response: 
 Given that the multiple membership affects all the three EAC Partner States consultations are 
going on with a view to agree on the best option.  
Singapore 
1. Para 7 of the Secretariat Report states that  the EAC is envisaged to be an economic area, 
although no timetable for this was established, when  the EAC Treaty  entered into force in 2000. 
Now that it is 6 years since the entry into force of the EAC Treaty, have the EAC Members 
decided on or discussed the time-frame for the establishment of the economic area? 
Response: 
There is a timetable for the EAC to become an economic area over the period 2006 to 2009. 
2. With regard to para 13 of the Secretariat Re port, it would be appreciated if the EAC Members 
could confirm when the  free-trade component of the EAC customs union would be fully established? 
Response: 
 Free trade component of the EAC Customs Union will be fully established by January 2010. 
3. Footnote 6 states that the "Council of Minist ers of the EAC is mandated to review the CET 
structure, and approve measures to remedy any adver se effects, on any member state, induced by the 
implementation of the CET or, by exceptional circumstances". 
Since the entry into force of th e EAC, has there been any situation/s of "adverse effects" or 
"exceptional circumstances" that  had require d EAC Ministers to intervene and remedy these 
situation/s?  
Response: 
Yes. 
4. We welcome the fact that the adoption of the EAC common external tariff in 2005 has led to 
a marked reduction in the applied tariffs of at least two Members of the EAC, ie. Kenya and  Tanzania. This is laudable. However, we cannot but notice the sizeable difference in the CET and 
MFN tariff rates.  In addition,  all three Members have relatively low tariff bindings for all tariff lines 
in the WTO: Kenya  (14.9%); Tanzania (13.5%); and Uganda (15.9%).  WT/TPR/M/171/Add.1 
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  Given the benefits (eg. certainty that it would create for businesses), do the EAC Members 
have plans  to increase their tariff bindings in the WTO.  
Response:   
We considering the initiation of a major analys is on special products to facilitate undertaking 
work on tariff binding. 
5. Para 15 of the Secretariat Report states that EAC negotiations on trade in services are to 
commence in 2006 as part of the EAC common market.  Have these negotiations started?   If so, it 
would be useful if the EAC Members could share  how the services liberalisation process in the EAC 
would be structured? For example, would it be b ased on the GATS structure? If not, what model do 
the EAC plan to use for services liberalisation among themselves? 
Response: 
No.  Preparations have however, started. WT/TPR/M/171/Add.1 
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  RESPONSES FROM UGANDA  
Australia Trade policy generally 
1. According to the Secretariat Report, despite recognition of the importance of trade and trade 
policy reform to their development prospects, trade po licy is yet to be systematically integrated into 
the development strategies of EAC members (WT/TP R/S/171, page 7, para 10).  Are there plans to 
develop, within the EAC, an organizational structure to coordinate the formulation and implementation of trade policy either at the national or EAC level?   
Response: 
The EAC countries have integrated trade policy into their development strategies.  Already, 
trade policy is an integral part of their nationa l Poverty Reduction Strategy Papers (PRSPs) which 
largely guide development planning in these countries.   The structures to coordinate the formulation 
and implementation of trade policy exist both at national and EAC levels.  For example, all the 
Partner States have a Ministry for East African Af fairs, and this helps in  coordinating a number of 
policy issues, including Trade Policy. 
Membership of other pref erential trade agreements 
2. Given that Kenya and Uganda are also members of the Common Market for Eastern and 
Southern Africa (COMESA) and Tanzania is a member of the Southern African Development 
Community (SADC), how will the EAC members mana ge policy conflicts (for example, differences 
in rules of origin criteria and intra-regional tr ade liberalization) created by their overlapping 
memberships of other preferential trade agre ements?  (WT/TPR/S/171, page vi, para 10).  
Response: 
 Consultations are going on with a view to agreeing on how to harmonize positions with 
regard to the regional integration blocs. 
Customs procedures and valuation 
3. Although the principles of EAC customs proc edures and valuation are provided for in the 
EAC Customs Management Act 2004, the WTO Secret ariat Report notes that in practice, customs 
procedures have not been fully harmonized (WT/ TPR/S/171, page 16, para 4).  A recent report 
compiled by a special committee of the East African Legislative Assembly (and table on 21 September) noted that “national regulations cont inue to be used to administer the Customs 
Management Act, and is thus c onfusing to citizens" (reported in The East African , September 25-
October 1).  What steps are being taken by th e EAC members to harmonize the administration of 
customs procedures? 
Response: 
Harmonized procedures have been agreed to and approved by the Council of Ministers.  Work 
on implementation is awaited.  
Duty and tax exemptions and concessions  
4. When will the EAC members harmonize duty and tax exemptions?  (WT/TPR/S/171, page 23 
para 13)    WT/TPR/M/171/Add.1 
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  Response: 
These are harmonized under the East African Community Customs Management Act 2004 
which entered into force on 1st January 2005.  
Other duties and charges 
5. The Secretariat Report states that the only im port duty provided for by the EAC trade regime 
are tariffs, yet members have individually imposed and bound other duties and charges. 
(WT/TPR/S/171, page 23 para 14).  Do the EAC members plan to harmonize the currently 
individually imposed duties and charges, including internal taxes?  
Response:  Ultimately, Yes  
Competition law 
6. At the time of writing of the WTO Secret ariat Report, an EAC Competition Law was still 
under consideration.  Could the EAC members provide an update on the progress of the bill?  
(WT/TPR/S/171, page 16, para 3)  
Response: 
The Competition Bill has been enacted by the E ast African Legislative Assembly and is now 
a law.  At national level, a draft law is in place.  
MFN bound and applied tariffs 
7. Under the EAC common external tariff, there is an average applied MFN rate of 12.9%, with 
99% of tariff lines carrying rates of 0%, 10% or 25%, and some 58 tariff lines carrying higher rates 
(WT/TPR/S/171, page 17, para 6).  We note that  the maximum tariff band in the proposed COMESA 
Common External Tariff is 30%, but as most CO MESA members have maxi mum tariff bands below 
this, discussion is under way on reduc ing it (WT/TPR/S/171, page 8, para  12).  What is the position of 
the EAC members, of whom Kenya and Uganda ar e also COMESA members, on moving to this 
proposed 30% maximum tariff band?  
Response: 
Consultations on the possible reduction of th e proposed maximum tariff band are still ongoing 
and Uganda is an active participant.  The two countries are committed to trade liberalization, and 
would prefer a lower tariff band. 
8. In the area of non-agricultural goods, the EA C's current average MFN applied tariff is 11.9% 
and there are only 27 lines with a tariff higher than 25% (WT/TPR/S/171, page 19).  Noting that 
under the current framework for the Doha non-ag ricultural market access negotiations, Kenya as a 
paragraph 6 country would bind its tariff lines about an average ad valorem  rate of 28.5, do EAC 
members consider that the EAC common tariff regime provide an obstacle to Kenya binding a high 
proportion, 95% or more, of its tariff lines about this 28.5 average?  
Response: 
The EAC Partner States acknowledge that it is an issue, and that two EAC States have 
flexibilities under the WTO.  We are still consulting on the issue while taking into account the fact 
that the issue is under the Doha Development Agenda negotiations.  WT/TPR/M/171/Add.1 
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  9. In the area of agricultural goods, we note that the EAC's maximum tariff band is again 25%, 
with 31 lines carrying higher rates as an excepti on to this (WT/TPR/S/171, page 17-19).  Under the 
current framework in the Doha agriculture ne gotiations, only Kenya of the EAC Members would 
apply the formula to its bound tariffs, all of whic h for agriculture are currently at 100%, and would 
remain above 25% even after full application of  any proposed formula.  Do the EAC members 
envisage a need in the future to  increase substantially applied tariffs on any of the agricultural 
products where the current applied tariffs are at or  below 25%, and if so under what circumstances?  
Response: 
The EAC Partner States are still consulting on the issue while taking into account the fact that 
the issue is under the Doha Development Agenda negotiations. 
Non-tariff barriers 
10. Non-tariff barriers continue to be an obstacl e to the smooth functioning of the customs union.  
What steps are the EAC members taking to remove NTBs impeding trade, including standards and technical requirements (as referred to in the re port) and others including requirements for temporary 
work permits, and the requirement for physical esco rt of goods by police at the port of Mombassa?  
(WT/TPR/S/171, page 24 para 21 and report in The East African , September 25-October 1).  
Response:  The process of addressing the issues raised is going on under various existing mechanisms.  
For example, Ministers of Trade meet regularly, there is increased cooperation between the Customs 
Authorities, standards are being harmonized, Road blocks have been removed, scanners are being 
installed to reduce physical checking, and electronic cargo monitoring done. 
Brazil  
WT/TPR/G/171 – Generic question 
1. What is the role of trade agreements for the East African Community members?  
Response: 
Trade agreements increase market/trade opportuni ties, and a predictable and transparency 
trade and investment climate for the EAC member states. 
WT/TPR/S/171 III (2) Paragraph 02 page 16 
2. Could the East African Community inform us what authority is responsible for issuing the 
certificate of origin when it is required by importing countries?  
Response: 
There is no central authority that issues certificat es of origin.  Individual Partner States have 
designated points, normally the Customs Authorities,  or Export Promotion Agencies.  The region is 
moving towards harmonization.  
WT/TPR/S/171 III (5) Paragraph 20 page 24 
3. Could the East African Community inform us the administrative procedure costs on the 
processing of licenses?   WT/TPR/M/171/Add.1 
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  Response: 
In Uganda, there are no charges imposed in r espect to the processing of licenses; one applies 
to the relevant Agency which considers the application. 
WT/TPR/G/171 III (iii) page 9 paragraph 12 4. According to the Secretariat's Report, touris m is the main foreign exchange source for the 
East African Community.  Please inform the conditions for supplying services under Mode 3 – 
Commercial Presence – in these sectors, as per document MTN.GNS/W/120 Sector 9 – Tourism and Travel Related Services (CPCs 641, 642, 643, 7471 and 7472).  
Response: 
Uganda never placed any limitations  on tourism in her GATS schedule. 
Colombia 
None for Uganda. 
Canada 
East African Community, Part I) The East African Community (EAC), (2) Legal Framework, page 2, 
paragraph 9 
1. The Report states that the 2001-2005 EAC Development Strategy identifies 12 areas of 
cooperation, including tourism. Moreover, the 2006-2010 strategy is described as currently in draft, 
with its adoption expected by the end of 2006.  
What are the specific cooperative arrangements cu rrently in place in respect of tourism? What 
new changes, if any, are contemplated unde r the new 5-year development strategy?  
Response: 
A number of initiatives have been put in place, including joint marketing of the East African 
Community as a tourist destination, grading and cl assification of tourist facilities, developing of a 
regional approach to wildlife prot ection, enhancement of capacity bu ilding in the tourism and wildlife 
sector, operationalization of  the East African Tourism and Wildlife Conservation Agency 
(EATWCA), implementation of the criteria for classi fication of hotels, restaurants, and other tourist 
facilities, harmonization of policies and legisla tion on wildlife conservation and management, 
adoption of a regional approach for participation in regional and inte rnational treaties/agreements on 
wildlife conservation and management.  
2. East African Community, Other Trade Arrangements, paragraph 25 et seq 
Has there been any move by Tanzania and its EA C partners to maximize the use of Canada's 
LDC Market Access Initiative by cooperating on  the production of goods to coordinate the 
competitiveness of conditionally eligible Kenyan indu stry, with those of Tanz ania and Uganda which 
are fully eligible?  
Response: 
Uganda appreciates Canada's o ffer and is exploring ways of how to take advantage of the 
initiative within the context of the East African Community. WT/TPR/M/171/Add.1 
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  East African Community. Summary (1) Econom ic environment, paragraph 4 page v 
3. Has there been any move by Uganda to ma ke greater use of Canada's LDC Market Access 
Initiative by offering to finish Kenyan partial ma nufactures, alone or with Tanzania, adding enough 
value to make the final products eligible for the ta riff and quota free entry to the Canadian market?   
Response: 
The country is keen to take advantage of th e Canadian Initiative.  Efforts are underway to 
explore how best to take advantage of the initi ative.  However, we lack capacity, and closer 
coordination between the Ugandan authorities and Canadian Development agencies would play an 
important role in developing the capacity. 
East African Community. II) Trade Arrangements Invol ving EAC Members: (1) Participation in the 
WTO; page 7 paragraph 7 
4. Canada notes that according to the Secretaria t Report the Republic of Uganda was “granted 
an extension of the transition period for th e implementation of the TRIPS Agreement until 
1 July 2013, which was due to e xpire on 1 January 2006”.    
Canada would be grateful if the United Re public of Uganda could advise whether it is 
considering requesting technical assistance from WIPO or the WTO to enable it to move forward 
towards full implementation of its WTO TRIPS obliga tions by July 1, 2013. If so, could the Republic 
of Uganda advise what might be the priority areas? 
Response:  The Republic of Uganda will continue seeking technical assistance from WIPO and the WTO 
to enable her to move forward towards full implem entation of its WTO TRIPS obligations by July 1, 
2013.  The process has already begun, and training on  the TRIPS Agreement scheduled for November 
2006 has been organized with support from both WIPO  and WTO Secretariats.  It is through such 
training that we hope to be able to inform the stakeh olders so that they can be able to meaningfully 
participate in an exercise to identify priority areas in which to request technical and financial 
assistance.  However, preliminary areas in which we would need the assistance include stakeholder 
sensitization/information sharing, legislative refo rms, and institutional founding and strengthening.  
Part II. Trade and Investment regimes  (2)  Policy objectives, page A3-227 (19/68) paragraph 11 
5. If by 'regionalization' Uganda sees sectoral specialization in the region, what does Uganda 
expect to be its sectors of specialization?  
Response: 
The priority sectors for Uganda include: 
(i) Agriculture and Agro-processing especially in  horticulture, tea coffee and cotton; 
(ii) Services like education, health, and In formation & Communication Technology; 
(iii) Energy especially hydropower generation; 
(iv) Mining;  WT/TPR/M/171/Add.1 
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  (v) Fresh water fisheries. 
Part III. Trade Policies and Practices by Measure: (2) Measures Directly Affecting Imports (iii) Other 
duties and charges; page A3-235, paragraph 19 
6. The Report notes that smuggling is a major c oncern and that a number of actions are being 
taken to address this problem.  
What measures is Uganda taking to assist in the elimination of the smuggling of specific 
substances of significant economic value, such as co ltan (a tantalum-niobium ore mined elsewhere in 
Africa)?  
Response: 
Concrete measures have been taken to reduce smuggling wherever it exists by intensifying 
boarder surveillance.  The Government of Uganda has taken a firm initiative to improve the standing 
of Uganda Revenue Authority through : 
(i) Building capacity of the staff of URA;  
(ii) Putting in place physical infrastructure eg place ment of scanners at border points to regulate 
and control goods that enter the country; 
(iii) Restructured the URA in 2005 to make more e fficient and responsive to taxpayers needs. 
Part IV. Trade Policies by Sector: (5) Services, page A3-260, paragraph 76 
7. Could Uganda please provide some more in formation on the Uganda Export Promotion Board 
(UEPB) mentioned in this paragraph?  For example,  what kinds of programs for services are in place?  
How were the sectors for export focus identified? 
Response: 
UEPB is organized around the usual mix of Trad e Promotion Organization activities, such as 
trade fair participation, market surveys, produc t surveys, publicity and trade information library 
services.  The Board is supervised by the Ministry of Tourism, Trade and Industry.  The five main 
pillars of the UEPB's interventions are: policy initiation and advocacy, trade information generation 
and delivery, exporters' skill development, market research and development, and trade promotion 
services.  The UEPB maintains a trade information centre, which provides pricing and marketing information, offers market research assistance, or ganizes participation in trade fairs, provides training 
(usually in collaboration with internationa l donors), and has a small commercial library. 
A Services Export Strategy has been devel oped to guide the broad policy objective of 
increasing Uganda's Services trade, and implementati on of the Strategy shoul d be beginning as soon 
as the resources are found.  The sectors for export focus were identified on the basis of baseline 
surveys that were carried.  The surveys focused on, inter alia, previous sector performance and 
potential.  Additional information exists in para graphs 54-57 of WT/TPR /S/171/UGA, page A3-240. 
Section 4. Sectoral Performance, 4.2 Forestry, page 39,  paragraph  22 
8. How are the structural measures taken by  Uganda in response to the challenge of 
deforestation expected to work? What are the results so far?  WT/TPR/M/171/Add.1 
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  Response: 
The Government of Uganda has set up the National Forestry Authority (NFA) to coordinate 
and spearhead the management of forests and affore station in Uganda.  NFA is guided in its activities 
by The Uganda Forestry Policy 2001 and The Nationa l Forest Plan 2002.  The results so far include: 
increased participation of the private sector in tree planting, and a decrease in illegal saw logging, all 
of which have contributed positively to resource conservation efforts.  
Part 4. Sectoral Performance, 4.5 Services, 4.5. 2 Wildlife and Tourism, page 40, paragraph 31 
9. According to Uganda's report, the governm ent has introduced legal and policy reforms to 
promote the growth of tourism. Please elaborate on the specific reforms being contemplated. 
Response: 
The Government launched the Tourism Policy in 2003.  This has helped to guide Government 
and private sector efforts aimed at developing th e tourism sector.  Some of the measures undertaken 
include improvement of security for tourists in mo st parts of the country, intensified marketing, 
identification and development of  new tourism products, and mainst reaming of tourism into the 
national development plans.  The classification/grading of tourism facilities such as hotels is also 
nearing completion. 
Section 4. Sectoral Performance, 4. 5.3 Energy, page  41, paragraph 33 
10. What share of the shortfall in energy pr oduction can be addressed by the construction of 
micro and mini hydro electric power generation projects? 
Response: 
There are 49 sites all over the country which ha ve the potential to ge nerate 200 Megawatts 
which is 87% of the current shortfall. The governme nt is focusing on 5 sites one in the central, eastern 
and north west and two in the western region. Th ese will have the capacity to generate 50 megawatts 
which is 22% of the shortfall. 
European Communities 
T
HE ECONOMIC ENVIRONMENT  
1. The region has lately been faced  with a drought and energy crisis. 
 Could more information be provided about th e impact of this crisis on the economies?  
Response: 
The impact of the energy crisis on the Uga ndan economy has certainly been negative. The 
effect of the energy crisis and high world oil pr ices resulted in a slow down of industrial production, 
which grew at 4.5 in 2005/6 percent as compared to 10.8 percent the previous year (2004/5), while 
growth in agricultural production slowed to 0.4 pe rcent (from 1.5% the previous year) on account of 
the prolonged drought conditions in most parts of  the country.  The Government is considering a 
range of options to address these problems, esp ecially with regard to the energy crisis.  WT/TPR/M/171/Add.1 
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  THE EAST AFRICAN COMMUNITY  
2. The EC would be interested in an upda te on progress with the roadmap for the Common 
Market, also in light of Tanzania's declaration that  the country is not ready to commit to the initially 
agreed timetable.  
Response: 
The Treaty provides for the establishment of a Common Market and a Decision Point.  We 
are confident that a position that promotes the goals of the EAC while giving due recognition to individual Partner States developmen t aspirations will be agreed to.  The process is expected to be 
completed in 2009. 
Domestic Investment 
3. Does EAC believe that double taxation with in EAC is a hindrance to intra-regional 
investments? Is there a plan to resolve the situation?  
Response: 
Yes.  An Agreement on the Avoidance of Doubl e Taxation has been adopted and is awaiting 
ratification by the Partner States.    
Foreign Investment 
4. How do the EAC countries see foreign investment evolving over the coming years?  Response: 
The Partner States are promoting East Africa as a single investment destination, and a single 
Investment Code has been developed.  As a country, Uganda has continued to benefit from 
macroeconomic and political stability to become one of the FDI frontrunners in the sub-region, with 
inflows rising by 16%, to $258 million in 2005.  The Government remains committed to ensuring a 
stable and conducive investment climate, and it is  our hope that this positive growth in foreign 
investment will be maintained over the coming years.   Indeed, with regional integration, the trend 
should continue to increase. 
Trade and social issues 
5. The Service Sector Export Strategy, adopted by the Uganda Export Promotion Board in 2005, 
identified migrant labour one of five priority sub- sectors for intervention to enhance national capacity 
to export services.  
What policies are being put in place to address this issue?  
Response: 
The draft National Trade Policy recognizes the importance of the services and specifically 
commits to implementation of the Services Export Strategy.   
Government has put in place a Policy on Extern alization of Employment, and a number of 
private agencies have been licensed  to implement the externalizati on of employment under the Policy. WT/TPR/M/171/Add.1 
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  6. The EAC states that labour law reform is one of the priority measures under Better 
Regulation.  
What legislation is in place for labour standards, particularly in export sectors?  
Response: 
A draft law has been prepared and will be in  place once a Common Market is in place.    
7.  While some measures have been taken to a llow free movement of labour (e.g. recognition by 
Kenya of lawyers from Uganda and Tanzania), this  is an area in which further steps could be 
beneficial. What plans does EAC have to stimulate further mutual recognition of professions?  
Response: 
The Partner States are currently negotiating the free movement of labour, and the various 
professions will be taken on  in this context.  
8. The potential of the services sector remains larg ely unexploited in the EAC. For example, the 
lack of skilled labour is one factor that has limited the development of tourism. 
Does the EAC have policies for skills training a nd working conditions to redress the problem?  
Response: 
Yes, these policies are in place.  For example,  Polytechnics like the Crested Crane Hotel and 
Tourism Training Institute in Jinja - Uganda is a Government supported institution that aims at 
addressing the skills problem in the tourism sector.  At the EAC level, there is an ongoing process to 
harmonize the training curriculum and identifying Centers of Excellence that will serve as regional centers for capacity building.   
Sustainable development 
9. In what ways does EAC think trade policy can best contribute to sustainable development?  
Response: 
Through the use of an optimal tariff regime, reduction in tariff barriers, and regulatory 
reforms. 
Trade and environment 
10. What mechanisms does EAC have in place to ensure adequate coordi nation of environmental 
policy and trade policy?  
Response:  The EAC Treaty is an integrated law that provi des for coordination of various sectors.  In 
Uganda, a consultative mechanis m – the Inter-Institutional Trade Committee exists.  This draws 
membership from the Government, private sector, civil society and the academia.  The national 
environment watchdog – the National Environment Ma nagement Authority is a member of this 
mechanism, and so are a number of civil society or ganizations dealing with trade and environment.  
This mechanism has helped in ensuring adequate coordination of trade and environmental policies.   WT/TPR/M/171/Add.1 
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  For example, the recently drafted National Trade Po licy explicitly brings out Government resolve to 
ensure that trade and environmental polic ies are complementary to each other.  
This is also happening all the Partner States  and the Inter Institutional Trade Committees 
regularly consult on a range of issues including trade and environment policies. 
TRADE POLICY ARRANGEMENTS INVOLVING EAC  MEMBERS  
11. The Members of the East African Community  (EAC) are also involved in several other 
regional groupings such as for example SADC and COMESA.  
The EC would be interested in further information concerning possible difficulties resulting 
from overlapping of these regional agreements in certain areas, including, in some cases, 
contradictory commitments. For example, we unde rstand that EAC and COMESA plan to harmonize 
their Common External Tariffs in th e near future. In parallel, Tanzania is a member of SADC and 
grants other SADC members preferences under bila teral protocols. How does EAC plan to co-
ordinate or harmonize these different and sometimes incompatible agendas?  
Response: 
Consultations on the issue are going on to come up with an ideal solution. 
12. Does Uganda plan to join the COMESA Free Trade Area? Response: 
Consultations on the issue are on going.    
13. Could information be provi ded on the state of play of EAC accession negotiations with 
Rwanda and Burundi?  
Response: 
The negotiations have been going on and are now in  advanced stages.  A high level task force 
is in place to deal with the negotiations, and a fo rmal announcement will be made at an appropriate 
forum by the appropriate authorities. 
14. Could the fact that the individual EAC members are negotiating EPAs with the EC under 
different regional configurations eventually have an impact on the functioning of the EAC customs 
union?  
Response: 
This is an issue that is currently being studied with a view to addressing any possible 
problems that could arise from belonging to di fferent negotiating confi gurations.  However, 
mechanisms have been put in place to ensure c oordination between the two configurations that the 
EAC Partner States are negotiating under.  The Pa rtner States are also considering intensified 
consultations before the regional EPAs negotiations so as to ensure coherence and avoid undermining 
the functioning of the EAC Customs Union. 
TRADE -RELATED TECHNICAL ASSISTANCE  
15. Will the draft Diagnostic Trade Integration Study (DTIS) become a fully integrated part of the 
Uganda Joint Assistance Strategy? If not, why not? WT/TPR/M/171/Add.1 
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  Response: 
Yes. In fact, the Validated Action Matrix of the DTIS is currently being used in the process of 
agreeing on priority issues under the Poverty Reduction Support Credit6 (PRSC6).  We look forward to continued cooperation from the IF Agencies, th e EC and our Developed Country counterparts in 
the implementation of the DTIS Action Matrix. 
C
OMMON TRADE POLICY MEASURES  
CUSTOMS PROCEDURES  
16. Has Uganda identified particular techni cal assistance needs in the customs and Trade 
Facilitation field? 
Response: 
Some preliminary work has been done and prel iminary needs identified.  Most of those 
identified relate, inter alia, to infrastructure upgr ading, development and ac quisition, human resource 
training, technology acquisition, etc.  Some program s such as the Uganda Revenue Authority Integrity 
Program have been designed as part of improving th e country's Trade Facilitation efforts.  On the 
Trade Facilitation Technical assistance needs, Ug anda would appreciate th e honoring of commitments 
contained in Annex D of the July 2004 Framework. 
TARIFFS AND OTHER DUTIES AND CHARGES  
17. The implementation of the Common External Ta riff continues to pose practical difficulties to 
the EAC members. These include, for example, unila teral changes to the CET by one country, non-
application of agreed preferential rates for intra EA C trade, or circumvention of the official border 
controls.  
 How does EAC plan to tackle these practical difficulties in the application of the CET?  
Response: 
 Consultations are going on. 
18. Recent reports have concluded that some traders in the EAC bloc continue to transport their 
goods through illegal routes in order to evade tax, d espite the fact that they can legally be exported 
duty free. If possible, we would be interested in in formation on what scale this illegal trade is taking 
place and what measures are being taken to prevent it?  
Response: 
 This problem does not exist on a large scale.  Only a few commodities are involved.  It arises 
mainly from differences from the taxes applied on some products.  With full implementation of the 
Customs Union, this problem should cease to exist.  Currently, there is increased border surveillance, 
and coordination between the Customs Authorities in the Partner States to address the problem. 
19. During the Uruguay Round, EAC members bound their tariffs individually. These tariffs 
binding commitments leave ample margins fo r discretionary increases in applied rates. 
Do the EAC countries envisage binding the EAC Common External Tariff?   WT/TPR/M/171/Add.1 
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  Response: 
 That is an option that we are open to.  However, we acknowledge that issues must be 
addressed at the right time, and the moment th e focus is on consolidating the Customs Union 
internally before we can look at exogenous fact ors that would help consolidate the Union.  
STANDARDS AND OTHER TECHNICAL REQUIREMENTS  
20. Article 13 of the Protocol on the Establishm ent of the East African Customs Union obliges 
member states to remove all non-tariffs barriers (N TBs), with immediate effect and not to impose any 
new ones. Furthermore, EAC member states mu st formulate a mechanism for identifying and 
monitoring the removal of NTBs, including st andards and technical requirements.   
 What kind of mechanism is going to be applied to achieve this aim and when?  
Response:  The Forum of the Trade Ministers and the Priv ate Sector under the umbrella of the East 
African Business Council is following up on the issue of Non-Tariff Barriers.  
E
XPORT PROHIBITIONS , RESTRICTIONS , AND LICENSING  
21. All three EAC countries maintain export taxes in various areas. 
Could information be provided on plans to phase out export taxes?  
Response: 
Uganda currently levies a modest export tax on a very limited number of commodities to 
encourage value addition to exports and industriali zation/development the sectors.  We consider the 
measure as an important development instrument.  
COMPETITION POLICY  
22. Do the EAC members plan to co-opera te in the area of competition policy?  
Response: 
Yes.  The Partner States are already cooperating in a broad range of areas, and cooperation in 
competition policy is one of the areas that there are activities on.  At regional level, a Competition Act 
has now been passed. 
GOVERNMENT PROCUREMENT  
23. Could EAC provide statistical data on Govern ment Procurement contracts established by type 
of contracting entities (central, sub-central/regional/local), object (supply, services, and works), 
suppliers' status (local, foreign, intra-regional)?  
Response: 
This information would take time to compile.  We are unable to provide it now. 
24. Does EAC use or envisage using electronic tendering?  WT/TPR/M/171/Add.1 
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  Response: 
 Not at the moment, capacity would need to be built first. 25. Is there any government procurement agre ement between countries? If yes, please describe 
them.  
Response:  
There is none at the moment.  Partner states trying to harmonize laws. 
E
NERGY  
Reports by the East African Community Members, section 4.3, paragraph 39  
26. The manufacturing and industry sector is reported to be growing most rapidly. However, 
shortages in the energy sector might put further expansion at risk. 
Could Uganda provide further information about the current situation an d future plans for the 
energy sector? 
Response:  
Currently there is a short fall of 230 megawa tts; Government is planning to reduce this 
shortfall by increasing thermal power generation in the short term, construc t small power generation 
plants in different parts of the country and also build a bigger dam.  
Hong Kong, China 
Standards and technical requirements 
(WT/TPR/S/171, P. 24, Paras. 21-22; WT/TPR/S/171/KEN, P. A1-56&57, Paras. 31&32; 
WT/TPR/S/171/TZA, P. A2-156, Paras. 30-31; WT /TPR/S/171/UGA, P. A3-236, Paras. 25 and 27) 
1. We note the EAC's initiative to remove all non-tariff barriers between Union members.  We 
would like to know whether this initiative would be extended equally to other WTO members.  
Response:  
This is a Regional Trade Agreement, of which two-thirds are LDCs.  The concessions 
exchanged are internal to participating Partner St ates.  However, the concessions exchanged in a 
multilateral setting remain unaffected, and the issu e of NTBs at multilateral level remains under 
negotiations in the WTO. 
2. We are glad to know that standards and tec hnical requirements are applied equally to imports 
and locally produced goods in the EAC.  We also  appreciate efforts of EAC members to harmonize 
their national standards with international or re gional standards (i.e. EAC standards).  Kenya has 
indicated that about 50% of its 4 000 standards are e quivalent to ISO standards.  We are interested to 
know the progress of harmonization of the other two EAC members.  
Response:   Uganda has developed 700 standards, of which 70% are equivalent to international standards 
such as ISO, CODEX and International Electrical Technical Commission.   WT/TPR/M/171/Add.1 
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   At the Community level, 600 standards have  been harmonized and the Standardization, 
Quality Assurance, metrology and Testing Act has been enacted. The harmonized standards are based 
on ISO standards.  The Bureaus in EAC accord mutual recognition for   each others mark.  
COMMON TRADE POLICY MEASURES (2) CUSTO MS PROCEDURES (i) Customs clearance 
and valuation (Page 16, Paragraph 4) 
3. The Secretariat report notes that customs pro cedures have not been fully harmonized by EAC 
members despite the EAC Customs Management Ac t 2004 that stipulates the principles of EAC 
customs procedures and valuation.  
Please explain the reason why customs procedures have not been fully harmonized by EAC 
members on the basis of the EAC Customs Management Act 2004.    
Response:  
The harmonized procedures have been agreed  upon and implementation is expected to 
commence soon.  
ANNEX 3 UGANDA III. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES 
DIRECTLY AFFECTING IMPORTS (ii) Ta riffs (Page A3-233, Paragraph 9) 
4. Please indicate the prospects of the Government  of Uganda for improving its binding rates of 
the MFN tariffs. 
Response:  
Consultations on the issue are still going on, taking into account the ongoing Doha 
Development Agenda negotiations. 
(iii) Other duties and charges (Page A3-235, Paragraph 19) 5. The Secretariat report notes that the effo rts by the Government to address corruption, 
smuggling, falsification of doc uments, and under-declaring of goods and income, include the 
restructuring of the URA, integrating the anti-sm uggling function into the customs department, and 
increased cooperation with the cust oms administration of Kenya.  
Please indicate how these measures taken by the Government resolve the problems in 
practice.  
Response:  
The public image of URA has improved and a substantial reduction in corruption has been 
registered. Smuggling has also reduced substan tially. There is more cooperation with Customs 
Authorities in Kenya and quicker response on suspected  malpractices.  There is faster exchange of 
information between the two organizations.  This  has helped to improve the efficiency and 
performance of the Uganda Revenue Authority.  
Norway 
1. In addition to the EAC Memb ership, Uganda is a Member of the Common Market for Eastern 
and Southern Africa (COMESA), while Tanzania is  a Member of the Southern African Development 
Community (SADC).  COMESA and SADC both inte nd to form Customs Unions.  This will entail 
two different Common External Tariffs.  Overlappi ng Customs Unions are obviously problematic, as WT/TPR/M/171/Add.1 
Page 88  
 
  one country cannot operate two differe nt external tariffs at the same time.  How will this problem be 
approached? 
Response:  
Consultations on the issue are already going on amongst the Partner States with a view to 
finding a solution that would leave no Partner worse off. 
Republic of Korea  None for Uganda. 
United States of America 
Measures Affecting Production and Trade – Intell ectual Property Rights – Legal and institutional 
framework 
1. Paragraph 80 on page A3-245 of the Secretaria t Report states that “Pursuant to the Protocol 
on the Establishment of the EAC Customs Union, its member states will conclude a protocol on IPR protection.”   
Please provide further information about the referenced protocol on IPR protection. 
Response:  
The process of concluding the Protocol on In tellectual Property Righ ts is still going on.  
2. Table III.5 on page A3-245 of the Secretariat Report states that Ugandan copyright 
law has exceptions for personal use, teaching, report ing of current events, and quotations in the form 
of short excerpts.   
Please provide a full description of these exceptions to the copyright law. 
Response:  
Uganda has just enacted a new Copy Right a nd Neighbouring Rights Act 2006.  Section 15 of 
the Copy Right and Neighbouring Rights Act 2006 provides for the exceptions. It allows for reproduction of work for judicial proceeding or e ducational purposes. Under the provision on the fair 
use of a protected original or translated work it is not an infringement of the author's right and his or 
her consent is not required:   
(a) the production, translation, adaptation, arrangement  or other transformation of the work is for 
 private personal use only; 
(b) a quotation from a published work is used in an other work e.g. quotation from a newspaper or 
 periodical in the form of press summary, where:  
(i) the quotation is compatible with fair practice;  
(ii) the quotation is justified for the purpose for which it is used; and  
(iii) the author is acknowledged.  WT/TPR/M/171/Add.1 
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  (c) a published work is used for teaching purposes to  the extent justified for the purpose by way 
 of illustration in a publication, broadcast, or sound  or visual recording in so far as the use is 
 compatible with fair practice and acknowledge ment is given to the work and the author; 
(d) the work is communicated to the public for teaching purposes for educational and training 
 institutions in so far as the u se is compatible with fair pr actice and acknowledgment is given 
 to the work and the author; 
(e) the work is reproduced , broadcast or comm unicated to the public with acknowledgment of 
 the work, in any article printed in newspa per, periodical or work broadcast on current 
 economic, social, political or religious topic unless the article or work expressly prohibits its  reproduction, broadcast or communication to the public; 
(f) work that can be seen or heard is reproduced or communicated to the public by means of 
 photograph, audio-visual work or broadcast to the extent justified for the purpose when 
 reporting on current events; 
(g) work of art or architecture in a photograph or an audio-visual or television broadcast is 
 reproduced and communicated to the public wh ere the work is perm anently located in a 
 public place or is included by way of background or is otherwise incidental to the main object 
 represented in the photogra ph or audio- visual work  or television broadcast; 
(h) for (purposes of current information), a reproduction in the press, broadcast or 
 communication to the public is made to a po litical speech or a speech delivered during any 
 judicial proceeding or an address, lecture, sermon delivered in public;   
(i) subject to conditions prescribed by the mini ster, a reproduction of a literary, artistic or 
 scientific work by a public library, a non- commercial documentation centre, a scientific 
 institution or an educational institute if the reproduction and the copies made:   
(i) do not conflict with the normal exploitation of the work reproduced;  
(ii) do not unreasonably affect the right of the author in the work; and 
(j) any work is transcribed into Braille or sign language for educational purpose of persons with 
 disabilities. 
Measures Affecting Production and Trade – Intellectual Property Rights – Trade marks 3. Paragraph 88 on pa ge A3-247 discusses Uganda's trademark law, the “Trademark Act of 
1964, Amended”.  Upon review of th is law, it is not clear how well known marks are protected.   In 
general, please elaborate as to how "well known marks" are protected in Uganda and respond to the 
following:  
What factors are considered in the determination of a well known mark?   
Response:  
There is no provision in the current Trade Mark s Act for well known marks.  However, the 
Trademarks and Service Marks Bill [Clauses 50(2)  and 51(2)] has made provisions for well known 
marks. In determining whether a mark is excepti onally well known regard is given 'all related 
circumstances, including the duration, extent to which it has become well known in relation to the WT/TPR/M/171/Add.1 
Page 90  
 
  goods in respect of which it is registered, the natu re of those goods and whether the notoriety of the 
mark is limited because of its use on goods that do not have wide distribution.' 
Measures Affecting Production and Trade – Intellectual Property Rights – Enforcement 4. Paragraph 89 on page A3-247 explains that a proposal for the establishment of IPR 
enforcement institutions is before Cabinet.  We would like to request additional information on IPR 
enforcement in Uganda. 
Please indicate the contents, aim and purpose of the recent proposal concerning the 
“establishment of IPR enforcement institutions” that  is currently under consideration before the 
Cabinet 
Response:  
 Currently one officer in the Registration of Se rvices Bureau (RSB) is designated to deal with 
intellectual property.  However, all the proposed intellectual property bills have provisions for the 
establishment of a specific department within the RS B to handle intellectual property. This is to 
enhance enforcement of intellectual property right s via having a specialized department. This has 
already provided under section 49 of the Copyrights and Neighbouring rights Act that has provided for the establishment of a copyright department unde r the Uganda RSB. The functions and powers of 
this department include:
  
(a) Promoting and encouraging creativity in the artis tic, literary and scientific fields in Uganda; 
(b) Creation of public awareness on copyright and neighbouring rights; 
(c) Advising Government on matters relating to copy right and neighbouring rights in Uganda and 
elsewhere; 
(d) Registering and issuing copy right and nei ghbouring rights licenses and ensure that the 
conditions attached to those licenses are complied with; and 
(e) Promoting dissemination of cultural work in and outside Uganda. 
5. Please indicate what civil and criminal remedies are available to trademark and copyright 
owners under the relevant laws and in Uganda's courts for infringem ent of their resp ective works and 
marks. 
Response:  Civil remedies for infringement of trademarks 
 Compensation is the only civil remedy availabl e to the injured party for the infringement of 
trace marks under the Trade Marks Act, Cap217 (section 44).  However, the proposed Trademark and 
Service Mark Bill (before Cabinet) has proposed additional remedies including injunctions, removal 
of rights from the pirate, and compensatory damages.  
Criminal remedies for the infringement of trademarks 
 Under the Trademarks Act, it is an offence to make false entries in a register and to falsely 
represent a registered trademark. The proposed Trademarks and Service Marks Bill, provides for  WT/TPR/M/171/Add.1 
 Page 91 
 
 
  offences of among others, falsification of entries in  the register, falsely representing a trademark as 
registered, falsely applying a registered trad emark and selling goods with a false mark.   
Civil remedies for infringement of copy rights 
 The Copy Rights and Neighbouring Rights Act provides for injunctions, removal of 
infringement rights or material and compensatory damages as civil remedies.  
 Under the Copy Rights and Neighbouring Rights Act it is an offence to a) publish, distribute 
or reproduce the work;  b) perform the work in publ ic;  c) broadcast the work; communicates the work 
to the public; or import any work and use it in a manner which, were the work made in Uganda, 
would constitute an infringement of copyright. Th e Act imposes both fines and custodial punishments 
- a fine not exceeding one hundred currency points (approximately US$ 1380 – a currency point is 
approximately US$ 13.8) or imprisonment not exceeding four years and four months or both. It is also 
an offence to trade or import apparatus, article, m achine or thing, knowing that it is to be used for 
making infringing copies of work. The Act imposes to a fine not exceeding fifty currency points or imprisonment not exceeding two years or both for ai ding and abetting copy right infringement.  In 
addition to a fine or imprisonment the guilty person shall forfeit the apparatus, article or thing which 
is the subject matter of the offence or which is used to commit the offen ce. Other offences include 
holding out as the author as well as concealing, altering or distribution of pirated products.  
A person who infringes a neighbouring right of another person under this Act commits an 
offence and is liable on conviction to a fine  not exceeding one hundred currency points or  
imprisonment not exceeding  four  years or both. 
Where an offence is committed by a corporati on, every director and the secretary shall be 
deemed to have committed the offence. In case of  a partnership or other non corporations, every 
partner or member shall be deemed to have committed the offence. 
A partner, member or director shall not be take n to have committed an offence if he or she 
proves that the offence for which he or she is charged was committed by some person other than 
himself or herself and was without his or her consen t or connivance and that he or she exercised all 
diligence to prevent the commission of the offence   as he or she ought to have exercised in the 
circumstances. 
6. Please indicate whether Ugandan Customs officials may prevent the importation of pirated or 
counterfeit goods into Uganda. If so, please indicate whether the Customs officials may act on their 
own (ex officio authority) or whether they must act  only pursuant to a complaint that is filed by an 
aggrieved right holder. 
Response:  
The Uganda Copyrights office currently ca nnot prevent the importation of pirated or 
counterfeit goods into Uganda on own initiative. Th ey may investigate pursuant to a complaint. 
However the Copyright and Neighbouring Rights Act empowers inspection of premises, articles, containers, or any plants by inspectors appointed by the copyright department. The provision 
empowers the officers to seize or detain any article or substance that they believe to be infringing 
copyright. 
__________