24 August 2022 The East African Community updates its Common External Tariff 2022 to align with the World Customs Organization This Alert provides a summary of the changes made to the East African Common (EAC) Common External Tariff following changes made by the World Customs Organization (WCO) to the Harmonized System. The Seven partner states of the EAC are Member States of the WCO. Overall, the amendments, creations and deletions of various goods provide accuracy, clarity and certainty in tariff classification for taxpayers.
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The Harmonized Description and Coding System (HS) is a nomenclature used for the uniform classification of goods or items traded in international commerce and it classifies products by a unique numerical code. The HS is a publication of the WCO and the 184 Member States of the WCO use it for classification of goods. The HS contains guidance (General Interpretative Rules) on how to classify goods. The WCO undertakes reviews of the HS every five years and thus currently there is a HS 2022 in place. The East African Community (EAC) customs union transposes the HS at the regional level as the seven partner states of the EAC are Member States of the WCO. The EAC Customs Union thus uses the EAC Common External Tariff (EACCET). The amendments to the HS normally reflect advancement in technology, changes in business patterns, concerns on food security, the need to tackle topical issues of importance, e.g., climate change, terrorism and environmental issues and, provision of clarity. The HS 2022 contains 351 sets of amendments categorized by sector as follows: Sector | Number of amendments | Agricultural, food and tobacco sector | 77 | Chemical sector | 58 | Wood, Textile and Base metal sector | 31 | Textile sector | 21 | Base metal sector | 27 | Machinery sector | 63 | Transport sector | 22 | Other sectors | 52 |
The Agricultural, food and tobacco sector had the majority of amendments at 77 followed by the machinery and chemical sectors with 63 and 58 amendments respectively. Other sectors that were amended include wood (31), textile (21), base metal (27), and transportation (22), among others. Amendments to the HS are undertaken for different reasons including: Protection of society and enhancement of the fight against terrorism Goods specifically controlled under various International Conventions Food security and environment protection priorities leading to a need to keep track of cross border movement of certain goods/items Technological progress and innovation leading to new products Trade patterns monitoring Clarification of the HS text and goods which have raised classification controversy Some of the new HS codes arising from splits in headings introduced across the different sectors include test kits for diagnosis of various infectious diseases to facilitate rapid deployment and placebos for medical research. Various novel products of tobacco and nicotine, three dimensional printers and drones have been specifically provided for to take into account increased trade volumes and the need to maintain trade statistics. International treaty obligations have also been considered with specific provisions made for e-waste, hazardous and other chemicals to permit easier monitoring in addition to the dual use goods e.g., detonators that may be used by terrorists, to facilitate the protection of society. Below are examples of new items with specific tariff classifications/tariff splits: New HS code introduced | Description | Current Import duty rate | Previous Import duty rate | 3822.11.00 | Test kits…For malaria | 0% | 0% | 3822.12.00 | Test kits…For Zika and other diseases transmitted by mosquitoes of the genus Aedes | 0% | 0% | 3822.13.00 | For blood-grouping | 0% | 0% | 2844.41.00 | Tritium and its compounds; alloys, dispersions (including cermets), ceramic products and mixtures containing tritium or its compounds | 0% | 0% | 2844.42.00 | Actinium-225, actinium-227, californium-253, curium-240, curium-241, curium-242, curium-243, curium-244, einsteinium-253, einsteinium-254, gadolinium-148, polonium-208, polonium-209, polonium-210, radium-223, uranium-230 or uranium-232, and their compounds; alloys, dispersions (including cermets), ceramic products and mixtures containing these elements or compounds | 0% | 0% | 2844.43.00 | Other radioactive elements and isotopes and compounds; other alloys, dispersions (including cermets), ceramic products and mixtures containing these elements, isotopes or compounds | 0% | 0% | 2844.44.00 | Radioactive residues | 0% | 0% | 2845.20.00 | Boron enriched in boron-10 and its compounds | 0% | 0% | 3822.13.00 | Lithium enriched in lithium-6 and its compounds | 0% | 0% | 2845.40.00 | Helium-3 | 0% | 0% | 2930.10.00 | 2-(N,N-Dimethylamino) ethanethiol | 0% | 0% | 2931.41.00 up to 2931.41.49 | Non-halogenated organo-phoshphorous derivatives | 0% | 0% | 2931.50.00- 2931.59.00 | Halogenated organo-phoshphorous derivatives | 0% | 0% | 2933.35.00 | 3-Quinuclidinol | 0% | 0% | 3824.92.00 | Polyglycol esters of methylphosphonic acid | 0% | 0% | 0410.10.00 | Insects | 25% | 25% | 0410.90.00 | Other | 25% | 25% | 2404.11.00 | Containing tobacco or reconstituted tobacco | 35% | 25% | 2404.12.00 | Other, containing nicotine | 35% | 35% | 2404.19.00 | Other | 35% | 35% | 2404.91.00 | For oral application | 35% | 35% | 2404.92.00 | For transdermal application | 35% | 35% | 2404.99.00 | Other | 35% | 25% | 8543.40.10 | Electronic cigarettes | 35% | 35% | 8543.40.90 | Similar personal electric vaporising devices | 25% | 0% | 4015.12.00 | Gloves, mittens and mitts; Of a kind used for medical, surgical, dental or veterinary purposes; | 0% | | 7104.21.00 | Unworked synthetic or reconstructed diamonds | 25% | 25% | 8485.10.00 | Machines for additive manufacturing By metal deposit | 0% | 0% | Chapter 84; 8485.20.00 8485.30.00 8485.80.00 8485.90.00 | Machines for additive manufacturing. By plastics or rubber deposit By plaster, cement, ceramics or glass deposit Other Parts | 0% | 0% | 8517.13.00 | Smartphones | 0% | 0% | 8517.14.00 | Other telephones for cellular networks or for other wireless Networks | 0% | 0% | 8704.4 | Other, with both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion | 0-25% | 0-25% | 8704.5 | Other, with both spark-ignition internal combustion piston engine and electric motor as motors for propulsion | 0-25% | 0-25% | 8704.6 | Other with only electric motor for propulsion | 0-25% | 0-25% | 9406.20.10 to 9406.20.90 | Modular building units, of steel | 0-25% | 0-25% | 8414.70.00 | Gas-tight biological safety cabinet | 25% | 25% | 8419.12.00 | Solar water heaters | 0% | 0% | 8419.33.00 | Lyophilisation apparatus, freeze drying units and spray dryers | 0% | 0% | 8428.70.00 | Industrial robots | 0% | 0% |
Splits are aimed at giving prominence or providing clarity in the classification of products that may have gained significance in international commerce. The splits in 2022 have covered sectors such as chemicals, agriculture, transport and base metals. No. | DECISION | HS Code | Description | UOM | Rate | 1 | Split HS Code 0902.10.00 | Green tea (not fermented) in immediate packings of a content not exceeding 3 kg | | | | | | | 0902.10.10 | purple tea | Kg | 25% | | | | 0902.10.90 | other | Kg | 25% | 2 | Split HS Code 0902.20.00 | Other green tea (not fermented) | | | | | | | 0902.20.10 | purple tea | Kg | 25% | | | | 0902.20.90 | other | Kg | 25% | 3. | Split HS Code 3005.90.10 | White absorbent cotton Wadding: | | | | | | | 3005.90.11 | sterile, in rolls | Kg | 0% | | | | 3005.90.12 | non-sterile, in rolls | Kg | 0% | | | | 3005.90.19 | Other | Kg | 0% | 4. | Split HS Code 3208.10.00 | Based on polyesters: | | | | | | | 3208.10.10 | lacquers | Kg | 25% | | | | 3208.10.20 | enamels | Kg | 25% | | | | 3208.10.90 | Other | Kg | 25% | 5. | Split HS Code 3208.20.00 | Based on acrylic or vinyl Polymers: | | | | | | | 3208.20.10 | lacquers | Kg | 25% | | | | 3208.20.20 | enamels | Kg | 25% | | | | 3208.20.90 | Other | Kg | 25% | 6. | Split HS Code 3208.90.00 | Other: | | | | | | | 3208.90.10 | lacquers | Kg | 25% | | | | 3208.90.20 | enamels | Kg | 25% | | | | 3208.90.90 | Other | Kg | 25% | 7. | Split HS Code 3209.10.00 | Based on acrylic or vinyl polymers: | | | | | | | 3209.10.10 | lacquers | Kg | 25% | | | | 3209.10.20 | enamels | Kg | 25% | | | | 3209.10.90 | Other | Kg | 25% | 8. | Split HS Code 3209.90.00 | Other: | | | | | | | 3209.90.10 | lacquers | Kg | 25% | | | | 3209.90.20 | enamels | Kg | 25% | | | | 3209.90.90 | Other | Kg | 25% | 9. | Split HS Code 3210.00.90 | Other: | | | | | | | 3210.00.91 | lacquers | Kg | 25% | | | | 3210.00.92 | enamels | Kg | 25% | | | | 3210.00.93 | distempers | Kg | 25% | | | | 3210.00.99 | Other | Kg | 25% | 10. | Split HS Code 3214.10.00 | Glaziers' putty, grafting putty, resin cements, caulking compounds and other mastics; painters' fillings | | | | | | | 3214.10.10 | Glaziers' putty, grafting putty | Kg | 25% | | | | 3214.10.90 | other | Kg | 25% | 11. | Split HS Code 3819.00.00 | Hydraulic brake fluids and other prepared liquids for hydraulic transmission, not containing or containing less than 70 % by weight of petroleum oils or oils obtained from bituminous minerals. | | | | | | | 3819.00.10 | Automatic transmission fluid (ATF) for lubricating | Kg | 25% | | | | 3819.00.90 | Other | Kg | 10% | 12. | Split HS Code 3921.90.00 | Other: | | | | | | | 3921.90.10 | Unprinted | Kg | 25% | | | | 3921.90.90 | Other | Kg | 25% | 13. | Split HS Code 6406.10.00 | Uppers and parts thereof, other than stiffeners | | | | | | | 6406.10.10 | Of leather | Kg | 10% | | | | 6406.10.90 | Other | Kg | 10% | 14 | Split HS Code 7610.90.00 | Other: | | | | | | | 7610.90.10 | Towers and lattice masts | Kg | 25% | | | | Other: | | | | | | | 7610.90.91 | Bridges and bridge-sections | Kg | 25% | | | | 7610.90.92 | Roofs and roofing frameworks | Kg | 25% | | | | 7610.90.93 | Balustrades, pillars and columns | Kg | 25% | | | | 7610.90.94 | Aluminium plates, rods, profiles, tubes and the like, prepared for use in structures | Kg | 25% | | | | 7610.90.99 | Other | Kg | 25% | 15 | Split HS Code 7323.10.00 | Iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like: | | | | | | | 7323.10.10 | Pot scourers and scouring or polishing pads | Kg | 25% | | | | 7323.10.90 | Other | Kg | 25% | 16 | Split HS Code 7615.10.00 | Table, kitchen or other household articles and parts thereof; pot scourers and scouring or polishing pads, gloves and the like | | | | | | | 7615.10.10 | Table, kitchen or other household articles and parts thereof | Kg | 25% | | | | 7615.10.20 | Pot scorers and souring or polishing pads | Kg | 25% | | | | 7615.10.90 | Other | Kg | 25% | 17 | Split HS Code 8703.10.00 | Vehicles specially designed for travelling on snow; golf cars and similar vehicles | | | | | | | 8703.10.10 | Unassembled | u | 0% | | | | 8703.10.90 | Other | u | 25% | 18 | Split HS Code 9612.10.00 as follows; | Ribbons | | | | | | | 9612.10.10 | Reels of 900 mm width | u | 25% | | | | 9612.10.90 | Other | u | 25% |
Amendments to the Chapter and Titles include: Chapter Heading | Modification | Previously | 16.01 | Sausages and similar products, of meat, meat offal, blood or insects; food preparations based on these products. | Sausages and similar products, of meat, meat offal or blood; food preparations based on these products. | 16.02 | Other prepared or preserved meat, meat offal, blood or insects. | Other prepared or preserved meat, meat offal or blood. | 15:15 | Other fixed vegetable or microbial fats and oils (including jojoba oil) and their fractions, whether or not refined, but not chemically modified. | Other fixed vegetable fats and oils (including jojoba oil) and their fractions, whether or not refined, but not chemically modified. | 8704 | Other, with only compression-ignition internal combustion piston engine (diesel or semi-diesel) | Other, with compression-ignition internal combustion piston engine (diesel or semi-diesel): | 8704.3 | Other, with only spark-ignition internal combustion piston engine: | Other, with spark-ignition internal combustion piston engine: | 8704.4 | Other, with both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion: | | 8704.5 | Other, with both spark-ignition internal combustion piston engine and electric motor as motors for propulsion: | | 8704.60 | Other with only electric motor for propulsion | | 96.19 | Sanitary towels (pads) and tampons, napkins and napkin liners and similar articles, of any material. | Sanitary towels (pads) and tampons, napkins and napkin liners for babies and similar articles, of any material. |
Reviewed, Created and Amended Sub-headings Reviews, creation and amendments offer clarity and uniformity in the classification of various items and key of those is the introduction of modular building units which have gained prominence in international commerce. SN | Decision | HS Code | Description | UOM | Rate | 1 | Amend the duty rate | 7213.91.10 | Of cross section measuring less than 8 mm | Kg | 25% or US $ 200 / MT whichever is higher | | | | 7213.91.90 | Other | Kg | 25% or US $ 200 / MT whichever is higher | 2 | Create HS Code 8716.31.20 for the Cesspool emptier. | 8716.31.20 | Cesspool emptier | u | 0% | 3 | Review the structure of heading 9406 | Of wood: | | | | | | | 9406.10.10 | Greenhouse | Kg | 0% | | | | 9406.10.20 | Cold room | Kg | 0% | | | | 9406.10.90 | Other | Kg | 25% | | | | Modular building units, of steel; | | | | | | | 9406.20.10 | Greenhouse | Kg | 0% | | | | 9406.20.20 | Cold room | Kg | 0% | | | | 9406.20.90 | Other | Kg | 25% | | | | Other: | | | | | | | 9406.90.10 | Greenhouse | Kg | 0% | | | | 9406.90.20 | Cold room | Kg | 0% | | | | 9406.90.90 | Other | Kg | 25% |
Amendments to EACCET 2022 at the Community Level At the EAC level, certain changes have been made identifiable at the 3 dash level as follows: | | Amendments to Descriptions of Sub-headings | 1 | Amend description for HS Code 2106.90.20 to --- Preparations of a kind used in manufacturing of beverages and food | 2 | Amend description for HS Code 7010.10.10 to --- For pharmaceutical products, pesticides, fungicides and acaricides | 3 | Amend description for HS Code 7213.91.10 to --- Of cross section measuring less than 8 mm |
Overall amendments, creations and deletions of various goods provides accuracy, clarity and certainty in tariff classification which in turn is useful in collection of trade statistics, formulation of policy and monitoring of movement of goods across borders for varied reasons. _________________________________________ For additional information with respect to this Alert, please contact the following: Ernst & Young (Kenya), Nairobi Ernst & Young Société d’Avocats, Pan African Tax – Transfer Pricing Desk, Paris Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London Ernst & Young LLP (United States), Pan African Tax Desk, New York Document ID: 2022-5796 |
