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Traders importing goods into the East African Community (EAC) bloc have been handed a boost following the regional trade ministers decision to waive custom charges on goods valued at Sh5,382 and below.

Second hand cloth dealers will also benefit from the easing of packaging restriction, after the sectoral council rescinded a 2017 decision to limit packages of used textiles from the US into the region in 23 to 30kg bags only.

These were amongst a raft of key measures arrived at during the just concluded sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) co-ordination meeting in Arusha to unlock the region’s trade potential amidst Covid-19 economic hardships. 

“The SCTIFI also endorsed the decision by the Ministers/Cabinet Secretary for Finance to amend Section 124 of the EAC Customs Management Act, 2004 to provide for the $50 as de minimis value based on the value of goods instead of computed duties,” said EAC in a statement.

Valuation ceiling

Custom de minimise refers to the valuation ceiling for goods below which no tax or duty is charged and the clearance procedures are minimal. 

The meeting chaired by Kenya’s Cabinet Secretary for Industrialisation, Trade and Enterprise Development, Betty Maina directed exporters of textiles from the US to adhere to proper labelling of their merchandise. 

Used clothes traders importing from the US have had challenges of unpacking their wares from the 50kg bags and repackaging them on arrival to the required standards.