East Africa Community common custom bond
The East African Community may have a common custom bond in two weeks as the bloc races to enhance faster movement of goods across the five member countries, the Kenya Revenue Authority has said.
This is part of the proposed Regional Customs Transit Guarantee (RCTG), a regime that will ensure authorities in a transit country receive proper payment for dues and duties for goods passing through their territories.
The RCTG bonds scheme is designed to fast-track movement of goods under the customs seals. The value of custom bonds presently varies from one country to another because of different duty rates and valuation of goods.
Introduction of uniform bonds for the EAC countries is part of the ongoing implementation of the Single Customs Territory system which was launched in October 2013. The SCT allows for assessment and collection of taxes at the port of entry.
Its implementation is currently at 50%, according to the EAC secretariat.
KRA said all goods will be covered under the system from next year.
Phase one addresses bulk cargo such as fuel, wheat grain and clinker used in cement manufacturing.
Phase two caters for containerised cargo and motor vehicles, while the third phase will handle goods trading within the EAC.