EAC customs platform to address trade barriers

The EAC Single Customs Territory, under the Customs Union -- the first EAC pillar -- was launched in 2014, but is yet to be fully implemented among partner states due to differences in implementation stages and different economic growth levels of the eight members.

“By enabling real-time sharing of customs information, this platform augments regional efforts to address challenges such as delays in customs clearance, non-tariff barriers, high transaction costs, and inefficiencies in cross-border trade,” EAC Secretary-General Veronica Nduva said when she unveiled it in Arusha this week.

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“The Customs Union, being the first pillar of EAC integration, has enabled the seamless flow of goods, reduced trade barriers and strengthened economic cooperation among Partner States in practical ways,” the EAC boss said.

Custom procedures

She urged partner states’ customs authorities to embrace state-of-the-art tools, including artificial intelligence (AI), to streamline customs procedures across the region.

“I call upon the customs authorities to demystify customs procedures and explain them in simpler terms to stakeholders and members of the public, as the integration in East Africa is essentially about the people at the grassroots,” she said.

The EAC Single Customs Territory programme aims to improve the movement of goods and trade between member countries. It works by monitoring goods to prevent theft and diversion through the use of electronic cargo tracking system.

It allows for the seamless movement of cargo through Interconnected Customs Systems.

It saves time and costs in the movement of goods through minimal internal controls.

With its single customs declaration format, goods are entered at the first point of entry, and taxes are paid at the destination country.

“By automating the critical customs and trade facilitation processes, these interventions, including the Centralised Platform, ensure faster and more efficient clearance of goods, particularly for traders who meet compliance standards. These efforts significantly reduce delays, enhance transparency, and support the smooth movement of goods across the region, ultimately benefiting the ordinary East African citizen,” said Erick Sirali, director for digital trade at TradeMark Africa.

Since its initial implementation in 2017, the Centralised Platform has supported transactions related to intra-regional trade, exports from the region to global markets, transit goods, and the issuance of certificates of origin.

In 2023, the platform was upgraded to its second version, incorporating maritime trade—which had previously relied on a bilateral integration model—alongside features for managing Regional Authorised Economic Operators (AEO) and regional clearing agents for mutual recognition.

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But not all EAC partner states have integrated the SCT as Burundi and South Sudan lack capacity while the newest entrants, the Democratic Republic of Congo and Somalia, are at different stages of internalising the protocols of both the Customs Union and the Common Market.

Currently, the customs systems of Kenya, Uganda, Tanzania and Rwanda are interconnected through the Centralised Platform.

Kenya’s and Tanzania’s ports authorities are also connected to the platform.

Plans to integrate other partner states as well as other key agencies involved in clearance of goods into the platform are underway.

The EAC’s total trade with the rest of the world rose to $80.6 billion in 2023, up from $78.7 billion in 2022.

Foreign direct investment grew from $3.7 billion in 2013 to $12.9 billion in 2021, reflecting increased confidence in the region’s trade systems.