WORLD TRADE  
ORGANIZATION  WT/COMTD/25/Add.1 
1 November 2006 
 (06-5241) 
Committee on Trade and Development Original:   English 
  
 
EAST AFRICAN COMMUNITY 
 
Communication from the Parties
 
 
Addendum  
 
  The following text reproduces the Protocol on the Establishment of the East African Customs 
Union.  
_______________ 
 
  
PROTOCOL ON THE ESTABLISHMENT OF  
THE EAST AFRICAN CUSTOMS UNION  
 
 WT/COMTD/25/Add.1 
Page 2  
 
   
PREAMBLE....................................................................................................................... ....................4
 
PART A - INTER PRETATION ........................................................................................................ ...5 
Article 1 - Interpretation .........................................................................................................................5  
PART B -  ESTABLISHMENT OF THE EAST AFRICAN COMMUNITY CUSTOMS 
UNION .......................................................................................................................... .............9  
Article 2 - Establishment of the Ea st African Community Customs Union .........................................9  
Article 3 - Objectives of the Customs Union ..........................................................................................9  
Article 4 - Scope of Co-operation in the Customs Union ....................................................................10  
PART C – CUSTOMS ADMINISTRATION....................................................................................11  
Article 5 - Communication of Customs and Trade Information .........................................................11  
Article 6 – Trade Facilation ..................................................................................................................11  
Article 7 – Simplification, Standardisation and Harmonisation of Trade Information and 
Documentation .........................................................................................................................12  
Article 8 – Commodity Description and Coding System ......................................................................12  
Article 9 – Prevention, Investigation and Suppression of Customs Offences .....................................12  
PART D – TRADE LIBERALISATION ...........................................................................................13  
Article 10 – Internal Tariff ...................................................................................................................13  
Article 11 – Transitional Provisions on  the Elimination of Internal Tariffs ......................................13  
Article 12 – Common External Tariff ..................................................................................................14  
Article 13 – Non-tariffs Barriers ..........................................................................................................14  
PART E – TRADE RELATED ASPECTS........................................................................................14  
Article 14 – Rules of Origin ..................................................................................................................14  
Article 15 – National Treatment ...........................................................................................................15  
Article 16 – Anti-dumping Measures ...................................................................................................15  
Article 17 - Subsidies .............................................................................................................................16  
Article 18 – Countervailing Measures ..................................................................................................16  
Article 19 – Safeguard Measures .........................................................................................................16  
Article 20 -  Co-operation in the Investigatio n of Dumping, Subsidies and Application of 
Safeguard Measures ................................................................................................................17  
Article 21 - Competition ........................................................................................................................17  
Article 22 – Restrictions and Prohibitions to Trade .............................................................................18  
Article 23 – Re-exportaion of Goods ....................................................................................................18  
Article 24 – East African Community Committee on Trade Remedies ...............................................18  
PART F – EXPORT PROMOTION SCHEMES..............................................................................20  
Article 25 – Principles of Export Promotion Schemes ........................................................................20  
Article 26 – Duty Drawback Schemes ..................................................................................................20   WT/COMTD/25/Add.1 
 Page 3 
 
 
  Article 27 – Duty and Value Added Tax Remission Schemes .............................................................21  
Article 28 – Manufacturing under Bond Schemes ..............................................................................21  
Article 29 – Export Processing Zones ..................................................................................................21  
Article 30 – Other Export Promotion Schemes ....................................................................................21  
PART G – SPECIAL EC ONOMIC ZONES.....................................................................................22  
Article 31 - Freeports ............................................................................................................................22  
Article 32 – Other Arrangements .........................................................................................................22  
PART H – EXEMPTION REGIMES ................................................................................................22  
Article 33 – Exemption Regimes ...........................................................................................................22  
PART I – GENERAL PROVISIONS.................................................................................................23  
Article 34 - Administration of the Customs Union ..............................................................................23  
Article 35 – Measures to Address Imbalances ar ising from the Establishment of the 
Customs Union .........................................................................................................................23  
Article 36 – Safeguard Clause ..............................................................................................................23  
Article 37 – Trade Arrangements with Count ries and Organisations Outside the Customs 
Union ............................................................................................................................... .........23  
Article 38 – Inter-linkages with Other Areas of Co-operation ............................................................24  
Article 39 – Customs Law of the Community ......................................................................................24  
Article 40 – Annexes to the Protocol ....................................................................................................25  
Article 41 – Dispute Settlement ............................................................................................................25  
Article 42 – Amendment of the Protocol ..............................................................................................25  
Article 43 – Entry into Force ................................................................................................................26  
Article 44 – Depository and Registration .............................................................................................26  
 
 WT/COMTD/25/Add.1 
Page 4  
 
  PURSUANT TO THE PROVISIONS OF ARTICLE 75 OF THE TREATY FOR  
THE ESTABLISHMENT OF THE EAST AFRICAN COMMUNITY, THE PROVISIONS 
FOR THE ESTABLISHMENT OF THE EAST AFRICAN CUSTOMS UNION  
ARE HEREBY SET FORTH: 
 
PREAMBLE  
 
 WHEREAS the Republic of Uganda, the Republic of  Kenya and the United Republic of Tanzania 
(hereinafter referred to as "the Partner States") si gned the Treaty for the Establishment of the East 
African Community (hereinafter referred to as "the Treaty") on the 30
th day of November, 1999;  
  AND WHEREAS:    
(a) under the provisions of Articles 2 and 5 of the Treaty, the Partner States undertake to, 
inter alia , establish among themselves a customs union, as a transitional stage to, and an 
integral part of the Community;  and  
  (b) under the provisions of paragraph 2 of Artic le 75 of the Treaty, the Partner States have 
determined that the establishment of a custom s union shall be progressive in the course of 
a transitional period;  
 
AND WHEREAS by the provisions of paragraph 7 of Article 75 of the Treaty, the Partner States 
agreed to conclude the Protocol on the Establishm ent of a Customs Union within a period of four 
years;     
AND WHEREAS by the provisions of paragraph 1 of Article 151 of the Treaty, the Partner States 
undertook to conclude such Protocols as may be necessary in each area of co-operation, which shall 
spell out the objectives and scope of, and institutiona l mechanisms for co-operation and integration;  
  AND WHEREAS the Partner States, while aware that they have reached different stages of development with each Partner State having a comp arative advantage on trade in some commodities, 
are resolved and determined to reduce existing imba lances and to foster and encourage the accelerated 
and sustained development of the Community;    AND WHEREAS the Partner States are desirous to deepen and strengthen trade among themselves 
and are resolved to abolish tariff and non-tariff ba rriers to create the most favourable environment for 
the development of regional trade;   
  RECOGNIZING that a customs union would enhance economic growth and the development of the 
Community;     CONSCIOUS of their obligations, as contracting part ies to the Marrakesh Agreement Establishing the 
World Trade Organisation, 1994 (the WTO Agr eement), and to the Convention Establishing a 
Customs Co-operation Council, 1950 to contribute , in the common interest, to the harmonious 
development of world trade;     CONSCIOUS of their other individual obligations  and commitments under other regional economic 
partnerships;  
  RESOLVING to act in concert for the establishment of a Customs Union;  
  AGREE AS FOLLOWS:   WT/COMTD/25/Add.1 
 Page 5 
 
 
  PART A  
INTERPRETATION  
 
Article 1  
 
Interpretation  
  1. In this Protocol, except where the context otherwise requires:     "Acts of the Community" means Acts of th e Community enacted in accordance with the 
Treaty;  
   "anti-dumping measures" means measures take n by the investigating authority of the 
importing Partner State after conducting an investigation and determining dumping and 
material injury resulting from the dumping;  
  
 "common external tariff" means an identical  rate of tariff imposed on goods imported from 
foreign countries;  
   "Community" means the East African Community established by Article 2 of the Treaty;    
 "community goods" means goods originating from the Community;  
  
 "community tariff" means a five year interi m tariff imposed on specific goods originating 
from the Republic of Uganda to the Republic of  Kenya, and from the Republic of Uganda to 
the United Republic of Tanzania under the principle of asymmetry;  
  
 "compensating product" means a product r esulting from the manufacturing, processing or 
repair of goods for which the use of the inward processing procedure is authorised;  
   "competent authority" means a body or or ganisation designated by the Community to 
administer the customs law of the Community;  
  
"co-operation" includes any undertaking by the Partner States, jointly or in concert, of 
activities undertaken in furtherance of the objectives of the Community, as provided for under the Treaty or under any contract or agreement made under the Treaty or in relation to the 
objectives of the Community;  
  
"Council" means the Council of Ministers of the Community established by Article 9 of the Treaty;    "countervailing duty" means a specific duty levied  for the purpose of offsetting any subsidy 
bestowed directly or indirectly upon the manufacture, production or export of a product;  
  
"countervailing measures" means measures taken to counteract the effect of injurious 
subsidies;    "Court" means the East African Court of Justice established by Article 9 of the Treaty;  
  
"customs area" means that area licensed by a competent authority for purposes of specific 
customs operations;    WT/COMTD/25/Add.1 
Page 6  
 
  "customs and excise authority" means a body or an institution designated as such by a 
Government of a Partner State;    "customs data bank" means a depository of customs and trade data and information;  
  
"customs duties" means import or export duties a nd other charges of equivalent effect levied 
on goods by reason of their importation or exportation, respectively, on the basis of legislation in the Partner States and includes fi scal duties or taxes where such duties or taxes 
affect the importation or exportation of goods but does not include internal duties and taxes 
such as sales, turnover or consumption taxes, imposed otherwise than in respect of the 
importation or exportation of goods;  
  "customs law of the Community" means the customs law of the Community as provided 
under Article 39 of this Protocol;    
"customs offence"  means any breach or attempted breach of customs law;  
  
"customs territory" means the geographical area  of the Republic of Uganda, the Republic of 
Kenya and the United Republic of Tanzania and any other country granted membership of the 
Community under Article 3 of the Treaty;    
"Customs Union" means the East African Community Customs Union established by 
Article 2 of this Protocol;    "days" means working days in any calendar month;    
"dumping" in relation to goods means the situation where the export price of goods imported 
or intended to be imported into the Community is less than the normal value of like goods in 
the market of a country of origin as determin ed in accordance with the provisions of this 
Protocol, and "dumped product" has the corresponding meaning;    "duty" means any duty leviable under any customs law and includes surtax;  
  
"duty drawback" means a refund of all or part of any excise or import duty paid in respect of goods confirmed to have been exported or used  in a manner or for a purpose prescribed as a 
condition for granting duty drawback;    
"excise duty" means a non-discriminative duty imposed by a Partner State on locally 
produced or similar imported goods;    "export" with its grammatical variations and cognate expressi ons means to take or cause 
goods to be taken out of the customs territory;    
"export duties"  means customs duties and other charges of equivalent effect levied on goods 
by reason of their exportation;    "export processing zone" means a designated area or region in which firms can import duty 
free as long as the imports are used as inputs into the production of exports;  
   
"export promotion" means an undertaking in the facilitation of production or manufacturing 
for purposes of export;      WT/COMTD/25/Add.1 
 Page 7 
 
 
  "freeport" means a customs controlled area w ithin a Partner State where imported duty free 
goods are stored for the purpose of trade;    "freeport authority" means an authority appointed by a Partner State under national legislation to establish, co-ordinate and operate freeport re lated facilities in a Partner State and it shall 
include all the staff thereof;  
  "freeport zone" means a designated area placed at  the disposal of the freeport authority where 
goods introduced into the designated area are gene rally regarded, in so far as import duties are 
concerned, as being outside the customs territory;  
  
"foreign country" means a country other than a Partner State;    "goods" includes all wares, articles, merchandise,  animals, matter, baggage, stores, materials, 
currency and includes postal items other than personal correspondence, and where any such 
goods are sold under the auspices of this Protocol, the proceeds of sale;  
  "goods in transit" means goods being conveye d through the customs territory to a foreign 
country;    "import" with its grammatical variations a nd cognate expressions means to bring or cause 
goods to be brought into the customs territory;  
  "import duties" means customs duties and other charges of equivalent effect levied on goods 
by reason of their importation;    
"imported goods" means goods other than Community goods;  
  "importing Partner State" means a Partner State into which goods are imported;    "international standards" means standards that are adopted by international standardising or 
standards  organisations made available to the public;  
  
"inward processing" means the customs proce dure under which certain goods can be brought 
into a customs territory conditionally relieved from payment of import duties and taxes, on 
the basis that such goods are intended for manufacturing, processing or repair and subsequent exportation;  
  
"Legislative Assembly" means the East African Legislative Assembly established by Article 9 
of the Treaty;    "manufacturing under bond" means a facility ex tended to manufacturers to import plant, 
machinery, equipment and raw materials tax fr ee, exclusively for use in the manufacture of 
goods for export;  
  "non-tariff barriers" means laws, regulations, ad ministrative and technical requirements other 
than tariffs imposed by a Partner State whose effect is to impede trade;    
"other charges of equivalent effect" means any tax, surtax, levy or charge imposed on imports 
and not on like locally produced products and does not include fees and similar charges 
commensurate with the cost of services rendered;     WT/COMTD/25/Add.1 
Page 8  
 
  "Partner States" means the Republic of Ug anda, the Republic of Kenya and the United 
Republic of Tanzania and any other country granted membership to the Community under 
Article 3 of the Treaty;    "person" means a natural or legal person;  
 
"primary production" means initial or basic production of goods using raw materials or 
original inputs which have not  undergone processing;  
  "principle of asymmetry" means the pr inciple which addresses variances in the 
implementation of measures in an economic integration process for purposes of achieving a 
common objective;    "Protocol" means this Protocol establishing th e East African Community Customs Union and 
any annexes to the Protocol;  
  
"publications" means printed material in hard or soft form;    "refund” means the return or repayment of duties and taxes already collected;  
  "re-exports"  means goods which are imported and re-exported from the customs territory;  
  
"remission" means the waiver of duty or refrainment from exacting of duty;   "safeguard measures" means protective measures taken by a Partner State to prevent serious 
injury to her economy as provided under this Protocol;  
  
"Secretariat" means the Secretariat of the Community established by Article 9 of the Treaty;    "Secretary General" means the Secretary General of the Community appointed under Article 67 of the Treaty;    
"subsidy" means assistance by a government of a Partner State or a public body to the 
production, manufacture, or export of specific goods, taking the form of either direct 
payments, such as grants or loans, or of measu res with equivalent effect, such as guarantees, 
operational or support services or facilities, and fiscal incentives;    
"tariff" means any customs duty on imports or exports;  
"trade data" means trade related in formation and statistics on trade;  
  "trade facilitation"  means the co-ordinatio n and rationalisation of trade procedures and 
documents relating to the movement of goods from their  place of origin to their destination;    
"trade procedures" means activities related to  the collection, presentation, processing and 
dissemination of data and information c oncerning all activities constituting trade;  
  "Treaty" means the Treaty for the Establis hment of the East African Community.  
 
2. In this Protocol, a reference to a law or prot ocol shall be construed as reference to the law or 
protocol as from time to time amended.    
  WT/COMTD/25/Add.1 
 Page 9 
 
 
  PART B  
ESTABLISHMENT OF THE EAST AFRICAN COMMUNITY CUSTOMS UNION  
  
Article 2   
 
Establishment of the East African Community Customs Union  
  1. In order to promote the objectives of the Community provided under Article 5 of the Treaty and in accordance with the provisions of this Prot ocol, the Partner States hereby establish a customs 
union as an integral part of the Community.  
  
2. The Customs Union established under Paragraph 1 of this Article, sha ll be called the East 
African Community Customs Union (hereinafter  referred to as "the Customs Union").  
  3. The Customs Union shall be managed in accord ance with the customs law of the Community.  
  
4. Within the Customs Union:    
(a) customs duties and other charges of equi valent effect imposed on imports shall be 
eliminated save as is provided for in this Protocol;   
 
(b) non-tariff barriers to trade among the Pa rtner States shall be removed;  and  
 (c) a common external tariff in respect of a ll goods imported into the Partner States from 
foreign countries shall be es tablished and maintained.  
 
5. In accordance with the provisions of Article 75 of the Treaty, this Protocol, inter alia , 
provides for the following:    
(a) the application of the principle of asymmetry;  (b) the elimination of internal tariffs a nd other charges of equivalent effect;  
(c) the elimination of non-tariff barriers;  
(d) establishment of a common external tariff;  
(e) rules of origin;  (f) anti-dumping measures;  (g) subsidies and countervailing duties;  (h) security and other restrictions to trade;  
(i) competition;  
(j) duty drawback, refund and remission of duties and taxes;  (k) customs co-operation;  (l) re-exportation of goods;  (m) simplification and harmonisation of trade documentation and procedures;   
(n) exemption regimes;   
(o) harmonised commodity description and coding system; and  
(p) freeports.  
 
Article 3 
 
Objectives of the Customs Union
 
  The objectives of the Customs Union shall be to:    WT/COMTD/25/Add.1 
Page 10  
 
   (a) further liberalise intra-regional trade in  goods on the basis of mutually beneficial 
trade arrangements among the Partner States;  
  (b) promote efficiency in production within the Community;   
 (c) enhance domestic, cross border and foreign investment in the Community;  and 
  (d) promote economic development and dive rsification in industrialisation in the 
Community.  
 
Article 4 
  
Scope of Co-operation in the Customs Union 
 
  1. The provisions of this Part of the Protocol shall apply to any activity undertaken in co-
operation by the Partner States in the field of cu stoms management and trade and shall include:  
   (a) matters concerning trade liberalisation;   
  (b) trade related aspects including the simplification and harmonisation of trade 
documentation, customs regulations and proce dures with particular reference to such 
matters as the valuation of goods, tariff classification, the collection of customs 
duties, temporary admission, warehousing, cross-border trade and export drawbacks;  
 
 (c) trade remedies and  the prevention, investigation and suppression of customs 
offences;  
 
 (d) national and joint instit utional arrangements;   
 
 (e) training facilities and programmes on customs and trade;  
 
 (f) production and exchange of customs and  trade statistics and information;  and  
 
 (g) the promotion of exports.  
 2. For purposes of sub-paragraph 1( a) of this Article, the Partner States shall co-operate in:  
  
 (a) adopting uniform, comprehensive and system atic tariff classification of goods with a 
specific description and interpretation in accordance with internationally accepted 
standards;  
  
 (b)  adopting a standard system of valuat ion of goods based on principles of equity, 
uniformity and simplicity of application in accordance with internationally accepted 
standards and guidelines;  
  
 (c) establishing common terms and cond itions governing temporary importation 
procedures including the list or range of goods to be covered and the nature of 
manufacturing or processing to be authorised;  
  
 (d) implementing the customs require ments for re-exportation of goods;  
  
 (e) implementing the customs requirements for the transit of goods;    WT/COMTD/25/Add.1 
 Page 11 
 
 
    
 (f) harmonising and simplifying customs and trade formalities and documentation and 
dissemination of information;  
  
 (g) harmonising the customs requirements for the control of warehoused goods;  and  
  
 (h) adopting common procedures for the establishment and operation of export 
promotion schemes and freeports.  
  
PART C  
CUSTOMS ADMINISTRATION  
  
Article 5 
 
Communication of Customs and Trade Information 
 
  
 The Partner States shall exchange information on matters relating to customs and trade and in 
particular:    
 (a) the prevention, investigation and suppression of customs offences; and  
  
 (b) the operation of a harmonised information sy stem to facilitate the sharing of customs 
and trade information.  
  
Article 6   
 
Trade Facilitation 
 
   The Partner States shall initiate trade facilitation by:     (a) reducing the number and volume of docum entation required in respect of trade 
among the Partner States;  
  
 (b) adopting common standards of trade documentation and procedures within the 
Community where international requirements do not suit the conditions prevailing among the Partner States;  
  
 (c) ensuring adequate co-ordination and f acilitation of trade and transport activities 
within the Community;  
  
 (d) regularly reviewing the procedures adopt ed in international trade and transport 
facilitation with a view to simplifying a nd adopting them for use by the Partner 
States;  
  
 (e) collecting and disseminating information on trade and trade documentation;  
  
 (f) promoting the development and adoption of common solutio ns to problems in trade 
facilitation among the Partner States;  and  
  (g) establishing joint training programmes on trade.    WT/COMTD/25/Add.1 
Page 12  
 
  Article 7 
 
Simplification, Standardis ation and Harmonisation of 
 
Trade Information and Documentation  
  
1. The Partner States agree to simplify their tr ade documentation and procedures in order to 
facilitate trade in goods within the Community.    2. Subject to the provisions of Article 6 of this Protocol, the Partner States agree to design and standardise their trade information and documen tation in accordance with internationally accepted 
standards, taking into account the use of electronic data processing systems in order to ensure the 
efficient and effective application of  the provisions of this Protocol.  
  3. For purposes of this Article:    
(a) a customs data bank shall be established at the Secretariat;  and  
  (b) the Partner States hereby agree to adopt the Harmonised Customs Documentation to 
be specified in the customs law of the Community.  
  
Article 8 
 
Commodity Description and Coding System 
 
  
1. The Partner States agree to harmonise thei r customs nomenclature and standardise their 
foreign trade statistics to ensure comparability and reliability of the relevant information.  
  
2. The Partner States hereby adopt the Harmoni sed Commodity Description and Coding System 
specified in Annex I to this Protocol.    
Article 9 
 
Prevention, Investigation and 
 
Suppression of Customs Offences  
  
1. The Partner States agree to co-operate in the prevention, investigation and suppression of 
customs offences within their territories.  
  
2. For purposes of paragraph 1 of this  Article, the Partner States shall:  
  
 (a) afford each other mutual assistance w ith a view to preventing, repressing and 
investigating customs offences;  
  
 (b) exchange information on goods and publi cations known to be the subject of illicit 
traffic and maintain special surveillan ce over the movement of such goods and 
publications;  and  
  
 (c) consult each other on the establishment of  common border posts and take steps as 
may be deemed appropriate to ensure  that goods exported or imported through 
common frontiers pass through the competent and recognised customs offices and along approved routes.  
  WT/COMTD/25/Add.1 
 Page 13 
 
 
  3. The implementation of this Part of the Protoc ol shall be in accordance with the provisions of 
the customs law of the Community.    
PART D 
TRADE LIBERALISATION 
  
Article 10 
 
Internal Tariff 
 
  
1. Save as is provided in Article 11 of this Pr otocol, the Partner States shall, upon the coming 
into force of this Protocol, eliminate all internal ta riffs and other charges of equivalent effect on trade 
among them, in accordance with the provisions of Article 14 of this Protocol.  
  
2. The Council may, at any time, decide that a ny tariff rate shall be reduced more rapidly or 
eliminated earlier than is provided for in accordance with paragraph 1 of this Article.  
 
Article 11 
  
Transitional Provisions on the Elimination  
of Internal Tariffs  
 
1. The establishment of the Customs Union shall be progressive in the course of a transitional 
period of five years from the coming into force of this Protocol.    
2. The Partner States agree that upon the coming into  force of this Protocol  and for the purpose 
of the transition into a Customs Union:     (a) goods to and from the Republic of Uganda and the United Republic of Tanzania shall 
be duty free;  and  
  
 (b) goods from the Republic of Uganda and th e United Republic of Tanzania into the 
Republic of Kenya shall be duty free.  
 3. Goods from the Republic of Kenya into the Republic of Uganda and the United Republic of 
Tanzania shall be categorised as follows:  
  
 (a) Category A goods, which shall be eligible  for immediate duty free treatment;  and  
  
 (b) Category B goods, which shall be e ligible for gradual tariff reduction.  
  
4. Category B goods from the Republic of Kenya into the Republic of Uganda shall have a 
phase out tariff reduction period of five years for all products as follows:  
   (a) 10 per centum during the first year;  
  
 (b) 8 per centum during the second year;  
  
 (c) 6 per centum during the third year;  
  
 (d) 4 per centum during the fourth year;  
  WT/COMTD/25/Add.1 
Page 14  
 
   (e) 2 per centum during the fifth year;  and  
  
 (f) 0 per centum thereafter,  
 as specified in Annex II to this Protocol.  
  
5. Category B goods from the Republic of Kenya into the United Republic of Tanzania shall 
have a phase out tariff reduction period as sp ecified in Annex II to this Protocol.  
  
6. Internal tariffs specified under the provisi ons of this Article shall not exceed the Common 
External Tariff with regard to any of the specified products.  
  
Article 12 
 
Common External Tariff
 
  
1. The Partner States hereby establish a three band common external tariff with a minimum rate of 0 per centum, a middle rate of 10 per centum a nd a maximum rate of 25 per centum in respect of 
all products imported  into the Community.    2. The Partner States hereby undertake to review  the maximum rate of the common external 
tariff after a period of five years from the coming into force of the Customs Union.  
  3. The Council may review the common external tariff structure and approve measures designed 
to remedy any adverse effects which any of the Partner States may experience by reason of the implementation of this part of the Protocol or, in exceptional circumstances, to safeguard 
Community interests.  
  
4. For purposes of this Article, the Partner Stat es shall use the Harmonised Customs Commodity 
Description and Coding System referred to  in Article 8 of this Protocol.  
  
Article 13 
  
Non-tariff Barriers 
 
  1. Except as may be provided for or permitted by this Protocol, each of the Partner States agrees 
to remove, with immediate effect, all the existin g non-tariff barriers to the importation into their 
respective territories of goods originating in the othe r Partner States and, thereafter, not to impose any 
new non-tariff barriers.    2. The Partner States shall formulate a mechanis m for identifying and monitoring the removal of 
non-tariff barriers.  
 
 
PART E  
TRADE RELATED ASPECTS  
  
Article 14 
 
Rules of Origin 
 
  
1. For purposes of this Protocol, goods shall be accepted as eligible for Community tariff 
treatment if they originate in the Partner States.   WT/COMTD/25/Add.1 
 Page 15 
 
 
    
2. Goods shall be considered to originate in the Partner States if they meet the criteria set out in 
the Rules of Origin adopted under this Article.  
   
3. The Partner States hereby adopt the East A frican Community Rules of Origin specified in 
Annex III to this Protocol.  
  
Article 15 
 
National Treatment  
  
1. The Partner States shall not:     
(a) enact legislation or apply administrativ e measures which directly or indirectly 
discriminate against the same or like products of other Partner States;  or  
 
(b) impose on each other's products any internal  taxation of such a nature as to afford 
indirect protection to other products.  
 
2. No Partner State shall impose, directly or i ndirectly, on the products of other Partner States 
any internal taxation of any kind in excess of that imposed, directly or indirectly, on similar domestic 
products.  
  
3. Where products are exported to the territory of  any Partner State, any repayment of internal 
taxation shall not exceed the internal taxation impos ed on them, whether directly or indirectly.   
 
Article 16  
 
Anti-dumping Measures 
 
  1. The Partner States recognise that dumping is prohibited if it causes or threatens material 
injury to an established industry in  any of the Partner States, materially retards the establishment of a 
domestic industry therein or frustrates the benefits expected from the removal or absence of duties and 
quantitative restrictions of trade between the Partner States.  
  
2. The Secretariat shall notify the World Trade Organisation on the anti-dumping measures 
taken by the Partner States.  
  
3. The implementation of this Part of the Protoc ol shall be in accordance with the East African 
Community Customs Union (Anti Dumping Measures) Regulations, specified in Annex IV to this 
Protocol.    4. For purposes of this Article, the term "domestic  industry" shall be interpreted as referring to 
the domestic producers as a whole of the like products or to those of them whose collective output of 
the products constitutes a major proportion of the total domestic production of those products, except 
that:  
  
(a) when producers are related to the exporter s or importers or are themselves importers 
of the allegedly dumped product, the term "d omestic industry" may be interpreted as 
referring to the rest of the producers;   
  WT/COMTD/25/Add.1 
Page 16  
 
  (b) in exceptional circumstances, the territo ry of the Partner States may, for the 
production in question, be di vided into two or more competitive markets and the 
producers within each market may be rega rded as a separate industry where:   
  
(i)  the producers within that market sell all or most of their production of the 
product in question in that market;  and  
  (ii) the demand in that market is not to any substantial degree supplied by 
producers of the product in question located elsewhere in the territory.  
  
(c) In the circumstances referr ed to in sub-paragraph (b) of  this Article, industry is not 
injured, except where there is  concentrati on of dumped imports into such an isolated 
market and provided the dumped imports are causing injury to the producers of all or most of the production within such market.  
  
Article 17 
 
Subsidies  
 
  
1. If a Partner State grants or maintains any subsidy, including any form of income or price support which operates directly or indirectly to distort competition by favouring certain undertakings 
or the production of certain goods in the Partner State, it shall notify the other Partner States in 
writing.   
  
2. The notification in paragraph 1 of this Artic le shall contain the extent and nature of the 
subsidisation, the estimated effect of the subsidisa tion, the quantity of the a ffected product or products 
exported to the Partner States and the circum stances making the subsidisation necessary.  
  
Article 18  
 
Countervailing Measures 
 
  
1. (a) The Community may, for the purposes of  offsetting the effects of subsidies and 
subject to regulations made under this Article, levy a countervailing duty on any 
product of any foreign country imported into the Customs Union.   
  
(b) The countervailing duty shall be equal to the amount of the estimated subsidy 
determined to have been granted dir ectly or indirectly, on the manufacture, 
production or export of that product in th e country of origin or exportation.  
  2. The implementation of Articles 17 and 18 of th is Protocol shall be in accordance with the 
East African Community Customs Union (Subsidies and Countervailing Measures) Regulations, specified in Annex V to this Protocol.  
  
Article 19  
  
Safeguard Measures 
 
  
1. The Partner States agree to apply safeguard me asures to situations wh ere there is a sudden 
surge of a product imported into a Partner State, un der conditions which cause or threaten to cause 
serious injury to domestic producers in the territory of like or directly competing products within the 
territory.     WT/COMTD/25/Add.1 
 Page 17 
 
 
  2. (a) During a transitional period of five years, after the coming into force of the Protocol, 
where a Partner State demonstrates that its  economy will suffer serious injury as a 
result of the imposition of the common exte rnal tariff on industrial inputs and raw 
materials, the Partner State concerned sha ll, inform the Council and the other Partner 
States through the Secretary General on the measures it proposes to take.  
  
 (b) The Council shall examine the merits of  the case and the proposed measures and take 
appropriate decisions.  
  3. The implementation of this Article shall be in accordance with the East African Community 
Customs Union (Safeguard Measures) Regulations, specified in Annex VI to this Protocol.  
  
Article 20 
 
Co-operation in the Investigation of Dumping, 
 
 Subsidies and Application of Safeguard Measures  
  
1. The Partner States shall co-operate in the de tection and investigation of dumping, subsidies 
and sudden surge in imports and in the imposition of agreed measures to curb such practices.  
 2. Where there is evidence of any sudden surge in imports, or dumping, or export of subsidised 
goods by a foreign country into any of the Partner St ates that threatens or distorts competition within 
the Community, the affected Partner State may request  the Partner State in whose territory there is a 
sudden  surge in imports, or goods are dumped or subsidised, to impose anti-dumping duties or 
countervailing duties or safeguard measures on such goods.    
3. If the Partner State to which the request is made  does not act within thirty days of notification 
of the request, the requesting Partner State shall report to the appropriate customs union authority 
which shall take the necessary action.   
Article 21 
  
Competition 
 
  
1. The Partner States shall prohibit any practice that adversely affects free trade including any 
agreement, undertaking or concerted practice whic h has as its objective or effect the prevention, 
restriction or distortion of competition within the Community.  
  
2. The provision of paragraph 1 of this Article shall not apply  in the case of:  
   (a) any agreement or category of agreements between undertakings;  
  
 (b) any decision by association of undertakings;  or  
  
 (c) any concerted practice or category of concerted practises,   which improves production or distribution of goods, pr omotes technical or economic development or 
which has the effect of promoting consumer welf are and does not impose restrictions inconsistent 
with the attainment of the objectives of the Cu stoms Union or has the effect of eliminating 
competition.  
  
3. The implementation of this Article shall be in accordance with the East African Community 
competition policy and  law.  WT/COMTD/25/Add.1 
Page 18  
 
    
Article 22 
  
Restrictions and Prohibitions to Trade 
 
  
1. A Partner State may, after giving notice to th e Secretary General of her intention to do so, 
introduce or continue to execute restrictions or prohibitions affecting:     (a) the application of security laws and regulations;  
  
 (b) the control of arms, ammunition and other military equipment or items;   
  
 (c) the protection of human life, the envi ronment and natural resources, public safety, 
public health or public morality;  and  
  
 (d) the protection of animals and plants.  
  2. A Partner State shall not  exercise the right to introduce or continue to execute the restrictions 
or prohibitions conferred by this Article in order to restrict the free movement of goods within the 
Community.    
3. Notwithstanding the provisions of Article 10(1) of this Protocol, the Partner States agree to 
specify in the customs law of the Community goods to be restricted and prohibited from trade.    
Article 23 
 
Re-exportation of Goods 
 
  1. The Partner States shall ensure that re-exports  shall be exempt from payment of import or 
export duties in accordance with th e customs law of the Community.  
  2. Paragraph (1) of this Article shall not pr eclude the levying of normal administrative and 
service charges applicable to the import or expor t of similar goods in accordance with the national 
laws and regulations of the Partner States.    
Article 24 
 
East African Community Committee on Trade Remedies 
 
1. For purposes of this Protocol, there is hereby established an East African Community 
Committee on Trade Remedies (hereinafter referred  to as "the Committee") to handle any matters 
pertaining to:   (a) rules of origin provided for under th e East African Comm unity Customs Union 
(Rules of Origin) Rules, specified in Annex III to this Protocol;  
  (b) anti-dumping measures provided for under the East African Community Customs 
Union (Anti-Dumping Measures) Regulations, sp ecified in Annex IV to this Protocol;  
 
 (c) subsidies and countervailing measures provided for under the East African 
Community Customs Union (Subsidies and Countervailing Measures) Regulations, specified in Annex V to this Protocol;  
  WT/COMTD/25/Add.1 
 Page 19 
 
 
  (d) safeguard measures provided for under the East African Community Customs Union 
(Safeguard Measures) Regulations, specified in Annex VI to this Protocol;  
 (e) dispute settlement provided for under th e East African Community Customs Union 
(Dispute Settlement Mechanism) Regulations, sp ecified in Annex IX to this Protocol;  
and  
 (f) any other matter referred to the Committee by the Council.  
 2. (a) The Committee shall be composed of nine members, qualified and competent in 
matters of trade, customs and law.  
  (b) each Partner State shall nominate three members to the   Committee.  
 
3. Each Partner State shall notify the Committee,  of the investigating authority within its 
territory designated to initiate and conduct i nvestigations on behalf of the Committee.  
  4. The functions of the Committee shall be to:  
   (a) initiate, through the investigating author ities of the Partner States, investigation on 
disputes under the Regulations in paragraph 1 of this Article;  
 
 (b) make affirmative or negative determ inations on investigation arising from sub-
paragraph (a) of this paragraph;  
 
(c) recommend provisional measures to prev ent injury to a domestic industry where 
preliminary affirmative determination has been made under any matter in paragraph 1 
of this Article;  
(d) undertake consultations with Partner Stat es and other countries on matters before it;  
(e) report to the Council on all determinations in  relations to matters that are submitted to 
it and decisions made by it;  
(f) provide advisory opinions to the Partner St ates in relation to matters under paragraph 
1 of this Article;  
(g) review annually the implementation and ope ration of the matters in paragraph 1 of 
this Article;  
(h) issue public notices under the matters in paragraph 1 of this Article;  
(i) facilitate consultations by Partner States a nd parties to the dispute before it, to ensure 
timely fulfilment of all requirements by parties to the dispute and provide advice as 
may be appropriate;   
(j) administer and manage the dispute settlement mechanism;  and  (k) undertake any function that may be assi gned to it by any regulation under this 
Protocol or by the Council.  WT/COMTD/25/Add.1 
Page 20  
 
  5. Except as otherwise provided under the East African Community Customs Union (Dispute 
Settlement Mechanism) Regulations, or under any ot her regulation under this Protocol, the decisions 
of the Committee with respect to the settlement of disputes shall be final.  
6. The Committee shall determine its own procedure.  
 
 
PART F 
EXPORT PROMOTION SCHEMES 
  
Article 25  
 
Principles of Export Promotion Schemes
 
 1. The Partner States agree to support export promotion schemes in the Community for the purposes of accelerating development, promoting and facilitating export oriented investments, 
producing export competitive goods, developing an enabling environment for export promotion 
schemes and attracting foreign direct investment.    2. (a) The Partner States agree that goods be nefiting from export promotion schemes shall 
primarily be for export.  
  
 (b) In the event that such goods are sold in  the customs territory such goods shall attract 
full duties, levies and other charges provided in the Common External Tariff.  
  3. The sale of goods in the customs territory sh all be subject to authorisation by a competent 
authority and such sale shall be limited to 20 pe r centum of the annual production of a company.  
  
Article 26 
 
Duty Drawback Schemes
 
  1. The Partner States agree that, upon exportation to a foreign country, drawback of import 
duties may be allowed in such amounts and on such  conditions as may be prescribed by the competent 
authority.    2. Duty drawback shall be paid:  
(a) upon submission of an application to the competent authority within such a period 
from the date of exportation or performan ce of the conditions on which drawback 
may be allowed as the competent authority may prescribe;  and  
(b) on goods or any material used in the manufacture or processing of such goods may be 
granted in accordance with and subject to such limitations and conditions as may be 
prescribed by the competent authority.  
  
3. The implementation of this Article shall be  in accordance with the duty drawback schemes 
specified in the customs law of the Community.  
   WT/COMTD/25/Add.1 
 Page 21 
 
 
  Article 27 
 
Duty and Value Added Tax Remission Schemes  
  
1. The Partner States agree to support export pr omotion by facilitating duty and value added tax 
remission schemes.  
  2. For purposes of this Article the Partner St ates may establish duty and value added tax 
remission schemes.    
3. The implementation of this Article shall be  in accordance with the duty and value added tax 
remission schemes specified in th e customs law of the Community.  
  
Article 28 
 
Manufacturing under Bond Schemes 
 
  1. The Partner States agree to support expor t promotion by facilitating manufacturing under 
bond schemes within their respective territories.    2. The procedure for manufacturing under bond sh all allow imported goods to be used in a 
customs territory for processing or manufacture.  
  3. Duty and taxes shall be payable on comp ensating products at the rate of import duty 
appropriate to them.   
4. The implementation of this Article shall be  in accordance with the manufacturing under bond 
schemes specified in the cust oms law of the Community.  
 
Article 29 
 
Export Processing Zones
 
  
1. The Partner States agree to support the establishment of export processing zones.    2. Entry into an export processing zone shall allow total relief from payment of duty on 
imported goods used directly in the production of goo ds for export by a person authorised to carry out 
that activity in the zone.   
  
3. The implementation of the provisions of this Article shall be in accordance with the East 
African Community Customs Union (Export Processing Zones) Regulations, specified in Annex VII to this Protocol and the customs law of the Community.    
Article 30   
 
Other Export Promotion Schemes 
 
   The Council may, from time to time, approve  the establishment of such other export 
promotion schemes, as may be deemed necessary.  
  
 WT/COMTD/25/Add.1 
Page 22  
 
  PART G 
SPECIAL ECONOMIC ZONES 
 
Article 31   
 
Freeports
 
  
1. The Partner States may provide for the est ablishment of freeports for the purpose of 
facilitating and promoting international trade a nd accelerating development within the Customs 
Union.  
  
2. The functions of the freeports shall include the following:    
(a) promotion and facilitation of trade in goods imported into freeports;  
  
(b) provision of facilities relating to fr eeports including storage, warehouses and 
simplified customs procedures;  and  
  
(c) provision for the establishment of inte rnational trade supply chain centres, where 
persons from within and outside the Community access and harness market opportunities and enhance competitiveness in  import and export trade within the 
global setting.  
 3. Goods entering into a freeport shall be grante d total relief from payment of duty and any other 
import levies except where the goods are removed from the freeport for home use.    
4. For purposes of this Article, the Partner St ates may establish an authority to manage the 
freeports.    5. The implementation of this Article shall be in accordance with the East African Community 
Customs Union (Freeport Operations) Regulations, specified in Annex VIII to this Protocol.  
  
Article 32 
 
Other Arrangements 
 
  
1. The Council may, from time to time, approve  the establishment of other special economic 
arrangements for purposes of the development of  the economies of the Partner States.   
  2. Freeport zones may be established at seaports, riverports, airports and places with similar 
geographic or economic advantage.    
 
PART H 
EXEMPTION REGIMES 
 
Article 33 
 
Exemption Regimes
 
 
1. The Partner States agree to harmonise their ex emption regimes in respect of goods that are 
excluded from payment of import duties.     WT/COMTD/25/Add.1 
 Page 23 
 
 
  2. The Partner States hereby agree to adopt a harmonised list on exemption regimes which shall 
be specified in the customs law of the Community.   
 
PART I 
GENERAL PROVISIONS 
  
Article 34 
 
Administration of the Customs Union  
  
The administration of the Customs Union, including  legal, administrative and institutional matters, 
shall be governed by the customs law of the Community.   
Article 35  
 
Measures to Address Imbalances arising from 
 
the Establishment of the Customs Union  
  
For purposes of this Protocol, the Council sha ll approve measures to address imbalances that 
may arise from the establishment of the Customs Union.    
Article 36   
 
Safeguard Clause
 
  
1. In the event of serious injury or threat of serious injury occurring to the economy of a Partner 
State following the application of the provisions of this Protocol, the Partner State concerned shall, 
after informing the Council through the Secretary Ge neral and the other Partner States, take necessary 
safeguard measures.    2. The Council shall examine the method and eff ect of the application of existing safeguard 
measures and take appropriate decisions.  
  
Article 37 
 
Trade Arrangements with Countries  and Organisations 
 
Outside the Customs Union  
  
1. The Partner States shall honour their commi tments in respect of other multilateral and 
international organisations to which they belong.  
  2. The Community shall co-ordinate its trade rela tions with foreign countries so as to facilitate 
the implementation of a common policy in the field of external trade.  
  3. (a) Upon the signing of this Protocol and be fore its coming into force, and taking into 
account, inter alia, the provisions of paragra phs 1 and 2 of this Article, the Partner 
States shall identify the issues arising out of  their current relationships with other 
integration blocs and multilateral and intern ational organisations of which they are 
members in order to establish convergence on those matters for the purposes of the 
Customs Union.  
 WT/COMTD/25/Add.1 
Page 24  
 
   (b) For purposes of this paragraph, the Part ner States shall, upon the signing of this 
Protocol formulate a mechanism to guid e the relationships between the Customs 
Union and other integration blocs, multila teral and international organisations.  
  4. (a) A Partner State may separately conclude or amend a trade agreement with a foreign 
country provided that the terms of such an agreement or amendments are not in 
conflict with the provisions of this Protocol.  
   (b) Where a Partner State intends to concl ude or amend an agreement, as specified in 
paragraph 4(a) of this Article, with a fo reign country the Partner State shall send its 
proposed agreement or amendment by register ed mail to the Secretary General, who 
shall communicate the proposed agreement by  registered mail to the other Partner 
States within a period of thirty days, for their consideration.  
   (c) Where a Partner State notifies the other Partner States of its intention under 
paragraph 4(b) of this Article, the othe r Partner States shall make comments and 
proposals as they may deem appropriate, within ninety days from the receipt of the Secretary General's notification, before the conclusion or amendment of the agreement.  
 
(d) Following the receipt of the comments and proposals as  specified in paragraph 4(c) 
of this Article, the Secretary General sha ll convene a meeting of the Council within a 
period of sixty days to consider the comments and  proposals.  
   (e) Where the Partner States do not submit comments and proposals within the period 
specified under paragraph 4(c) of this Article, the concerned Partner State may 
conclude or amend the said agreement.  
  
Article 38 
 
Inter-linkages with Other Areas of Co-operation  
  
1. The application of this Protocol shall take cognisance of the provisions of the Treaty on other 
areas of co-operation including co-operation in:    
 (a) environment and natural resources management;   
 (b) standardisation, quality assura nce, metrology and testing;  
 (c) sanitary and phytosanitary measures;   (d) intellectual property rights;  and   (e) standards and technical regulations on trade.   
2. The Partner States shall conclude protocols on the areas of co-operation specified in 
paragraph 1 of this Article, which shall spell out th e objectives, scope of co-operation and institutional 
mechanisms for co-operation.    
Article 39 
 
Customs Law of the Community
 
 
1. The customs law of the Community shall consist of:  
 (a) relevant provisions of the Treaty;  
 (b) this Protocol and its annexes;   WT/COMTD/25/Add.1 
 Page 25 
 
 
   (c)  regulations and directives made by the Council;  
 (d) applicable decisions made by the Court;  
 (e) Acts of the Community enacted by the Legislative Assembly;  and  
 (f) relevant principles of international law.  
 
2. The customs law of the Community sha ll apply uniformly in the Customs Union 
except as otherwise provided for in this Protocol.    3. The Partner States shall conclude such annexes to this Protocol as shall be deemed necessary.  
   
Article 40  
 
Annexes to the Protocol 
 
   Without prejudice to the provisions of Articl es 39(3) and 43 of this Protocol, the Partner 
States agree to conclude, before the Protocol comes in to force, the annexes specified in this Protocol 
and such annexes shall form an integral part of this Protocol.    
Article 41 
  
Dispute Settlement 
 
  
1. Each Partner State affirms her adherence to the principles for the administration and management of disputes and shall in particular:    
(a) accord due consideration to the other Pa rtner States' presentation or complaints;  
  
(b) accord adequate opportunity for consu ltation on representations made by other 
Partner States;  and  
  (c) implement in good faith any decisions ma de pursuant to the Community's dispute 
settlement mechanisms.  
  
2. The implementation of this Article shall be in accordance with the East African Community 
Customs Union (Dispute Settlement Mechanism) Regulati ons specified in Annex IX to this Protocol.  
  
Article 42  
 
Amendment of the Protocol 
 
  1. This Protocol may be amended by the Part ner States in accordance with the provisions of 
Article 150 of the Treaty.    
2. Subject to the provisions of paragra ph 1 of this Article, the Council may:  
  
(1) with the approval of the Summit, review th e annexes to this Protocol and make such 
modifications as it deems necessary;  
 
(2) submit to the Partner States proposals for the amendment of the provisions of this 
Protocol.  
 WT/COMTD/25/Add.1 
Page 26  
 
  Article 43 
 
Entry into Force
 
  
This Protocol shall enter into force upon ratifi cation and deposit of instruments of ratification 
with the Secretary General by all the Partner States.  
  
Article 44  
 
Depository and Registration  
  
1. This Protocol and all instruments of ratifica tion shall be deposited with  the Secretary General 
who shall transmit certified true copies of the Protocol  and instruments of ratification to all the Partner 
States.    
2. The Secretary General shall register this Prot ocol with the African Union, the United Nations, 
the World Trade Organisation, the World Customs Organisation and such other organisations as the Council may determine.     
  WT/COMTD/25/Add.1 
 Page 27 
 
 
   
DONE at Arusha, Tanzania, on the 2nd day of March in the year Two Thousand and Four.  
      
IN FAITH WHEREOF the undersigned have  appended their signatures hereto:  
    
FOR THE REPUBLIC FO R THE REPUBLIC FOR THE UNITED REPUBLIC 
OF UGANDA OF KENYA OF TANZANIA 
  
 
  
YOWERI KAGUTA MUSEVENI MWAI KIBAKI  BENJAMIN WILLIAM MKAPA 
 PRESIDENT PRESIDENT  PRESIDENT  
 
 
 
__________