For Online E-newspaper
The East African : December 16th 2013
The EastAfrican NEWS DECEMBER 14-20,2013 states to markets outside the EAC, port and border operations and trade facilitation. Goods imported into the Sin- gle Customs Territory shall be entered only once at the first port of entry and released at the destination state. “Locally produced goods for transfer from one partner state to another shall also be entered only once in the destination partner state and the information shall be transferred to the originating partner state,” said Richard Sindiga, director of economic affairs at Kenya’s Ministry of EAC Affairs, Commerce and Tourism. Currently, a trader import- ing goods through the port of Mombasa destined for Rwanda pays at least $98 to a Kenyan Customs officer depending on the goods and the same amount to the Ugandan Customs authorities and, if the goods are destined for Rwanda, an even higher fee of at least $146 to the Rwandan Revenue Authority as transit bond. All these fees will now be col- lected as a single duty, reducing the total paid by half. Betty Maina, chief execu- them around the region is also expected to come down. It is estimated that over 200,000 containers destined for Rwanda and Uganda are cleared annually at the port of Mombasa. Apart from reducing the cost, Mr Kipturgo says the move could see more cargo, especially that destined for Rwanda, come through the port of Mombasa. “About 70 per cent of Rwan- dan cargo goes through the port of Dar es Salaam because the distance is shorter by about 200 km as compared with the distance from the port of Mombasa. But with the SCT, the clearing of goods will be more efficient and thus Rwandan traders are likely to prefer Mombasa port in order to save time and money,” noted Mr Kipturgo. The SCT covers the handling of imported goods in the EAC, intra-EAC transfer of goods, export of goods from partner Trucks await Customs inspection at the Gatuna post on the RwandaUganda border. Picture: Cyril Ndegeya tive of the Kenya Association of Manufacturers, said that for the system to work effectively, the EAC countries need to harmonise their internal tax rates. Currently, Uganda, Rwanda and Burundi levy VAT at a rate of 18 per cent while Kenya and Tanzania charge 16 and 20 per cent respectively. Income tax in the region averages 30 per cent except for Burundi, where it is at 35 per cent. Last month, the EAC Secre- tariat, in partnership with the German Development Agency GIZ, invited consultancy firms to submit proposals for the development of policies for the harmonisation of excise duties, value added tax and income tax in the region. The successful firm is expected to submit the final report in March 2014. Although the EAC had origi- nally planned to have a fully operational Single Customs Territory by 2010, its implementation has been hampered by the absence of a harmonised internal tax regime. $19m funding f≥om Ge≥many project executing agency. “The EAC and Germany believe that co-ordinated trans boundary investment approaches are needed to cope with the $172 million recently in Tanzania by a high-ranking German delegation, led by Ralf-Matthias Mohs, the head of division East Africa, Federal Ministry for Development Cooperation. Secretary General of the East African Germany’s total funding for technical and financial co-operation to the region growing demand for safe water, to fight increasing pollution of water systems and to deal with climate-related challenges,” the EAC said. The commitments were announced Community Richard Sezibera said the signing of the agreement demonstrated the strong partnership between the EAC and the Federal Republic of Germany. Dr Sezibera praised Germany for its commitment and consistent support towards EAC projects and programmes. Germany’s funding for technical and financial co-operation amounts to a total of 125.9 million euros ($172.8 million). The country also provides support for the water and governance sectors in selected EAC member states. 4x4 Hard top SUV vehicle. 2 With t≥ilate≥al deal, what next fo≥ EAC’s bloc-wide tax system? THE EAC’S own Single Customs Territory, whose rollout had earlier been planned for 2010, has been stymied by the absence of a harmonised internal tax regime within the bloc. Member countries charge different taxes on imported and domestic commodities. For example, Uganda, Rwanda and Burundi levy VAT at a rate of 18 per cent, while Kenya and Tanzania charge 16 and 20 per cent respectively. Income tax in the region averages 30 per cent except for Burundi, where it stands 35 per cent. It will be interesting to see how the CoW’s SCT plays out considering that the EAC also has a plans to implement a bloc-wide system. Tanzania not ready Although Tanzania’s Presi- dent Jakaya Kikwete was at the Kampala Summit that approved the EAC SCT to commence in January, his country appears not to be ready. In his much-publicised No- vember speech to his country’s parliament on Tanzania’s place in the EAC, President Kikwete expressed concern that his At the April Heads of State Summit in Arusha, all five EAC leaders accepted and adopted proposals for a SCT.” Tanzania President Jakaya Kikwete country was being sidelined in the CoW discussions on the SCT. He noted that at the April Heads of State Summit in Arusha, all five EAC leaders had accepted and adopted proposals for an SCT. “What it all entails is that it will allow each member to supervise and collect its own Customs revenue, exactly the way it is now, instead of a having single common Customs authority that collects all the revenue and distributes them among members,” he said. However, for goods passing through one member state’s territory to another’s, he noted, Customs revenue would be collected at the first border point and remitted to responsible countries. “We agreed that it was a good thing and ordered the EAC Council of Ministers to form a task force that would come up with the modality on how to implement the issue,” said Mr Kikwete, adding that it was agreed that a report on the issue was to be tabled at the next (Kampala, November 30) Summit. “Surprisingly, our partners have started implementing the single Customs territory,” he complained. 5 CARE INTERNATIONAL – SOMALIA (Puntland) TENDER NOTICE TENDER FOR SUPPLY OF NEW MOTOR VEHILCES CARE International is an International NGO working in Somalia and Somaliland. CARE and its partners work with vulnerable communities to address the underlying causes of poverty and promote peace and development by strengthening civil society, responding to emergencies and advocating for policy change. CARE Somalia intends to purchase seven 4x4 motor vehicles with the following specification for partners in the EC funded NRM project in Puntland Somalia. You are therefore, invited to submit your best all inclusive sealed bid expressed in US Dollars CIF Bossaso, Puntland. Vehicle type Pick-Up Double Cabin Qty Vehicle specification 5 Four wheel drive, LHD, ABS, Tyre mud grip, Silver in color, Power steering, Central locking, Fully loaded, 5 speed manual, 3000cc, Radio/ CD player and speakers, Seat belt, Air condition, Digital clock, Extra spare wheel, Front Bull bar, Year 2012 – 2013, 4 cylinder Diesel engine, Lift jack, Full tool kit. Four wheel drive, LHD, ABS, Tyre mud grip, Silver in color, Power steering, Central locking, Fully loaded, 5 speed manual, 4200cc, Radio/ CD player and speakers, Seat belt, Air condition, Digital clock, Extra spare wheel, Front Bull bar, Year 2012 – 2013, Diesel engine, High lift jack, Full tool kit, Roof rack. Extra fuel tank You can also access details of vehicle specification through the following link: http://portal.ci.or.ke/tender.docx Bids shall be accompanied with the following documents for preliminary evaluation: Certificate of Company Registration, evidence of experience in supplying vehicles to the Horn of Africa especially, in Somalia and proven physical location and address of the Company. Please indicate Country of origin/ manufacture of the vehicles and Delivery period. Bids should be enclosed in an ENVELOPE and clearly marked – “TENDER FOR SUPPLY OF MOTORVEHICLES and should be sent by Currier to the following address: CARE International, Somalia, P.O Box 2039 – 00202, Mbambane road, off James Gichuru rd, Lavington, Nairobi Kenya, Tel. +254 730 113 000 addressed to the PROCUREMENT TENDER COMMITTEE, CARE Somalia, no later than Monday, 6th January 2014 at 2:00 pm. Tenders with insufficient/partial information and those received after the closing date mentioned in the tender advertisement will be considered invalid. CARE International – Somalia reserves the right to accept or reject any application either in whole or in part without giving reasons for either rejection or acceptance.
December 9th 2013
December 23rd 2013