Article 21. Good Governance In the Tax Area
The Parties recognise the importance of cooperation on the principles of good governance in the area of taxation through the relevant authorities in line with their respective national laws and regulations.
Title III. CUSTOMS COOPERATION AND TRADE FACILITATION
Article 22. Scope and Objectives
1. The Parties acknowledge the importance of customs cooperation and trade facilitation matters in the evolving global trading environment and agree:
(a) to reinforce cooperation and ensure that the relevant legislation and procedures, as well as the administrative capacity of the relevant administrations, fulfil the objective of promoting trade facilitation;
(b) that the EAC Partner State(s) need transitional periods and capacity building to smoothly implement the provisions of this Title.
2. The objectives of this Title are to:
(a) facilitate trade between the Parties;
(b) promote harmonisation of customs legislation and procedures at regional level;
(c) provide support to the EAC Partner State(s) to strengthen trade facilitation;
(d) provide support to the customs administrations of the EAC Partner State(s) to implement this Agreement and other international customs best practices; and
(e) enhance cooperation between the Parties' customs authorities and other related border agencies.
Article 23. Customs Cooperation and Mutual Administrative Assistance
1. In order to ensure compliance with the provisions of this Title and effectively respond to the objectives laid down in Article 22, the Parties shall:
(a) exchange information on customs legislation and procedures;
(b) develop joint initiatives in mutually agreed areas;
(c) cooperate in the following areas:
(i) modernisation of customs systems and procedures, as well as reduction of customs clearance times;
(ii) simplification and harmonisation of customs procedures and trade formalities, including those related to import, export and transit;
(iii) enhancement of regional transit systems;
(iv) enhancement of transparency in accordance with Article 24(3);
(v) capacity building including financial and technical assistance to the EAC Partner State(s);
(vi) any other area of customs as may be agreed by the Parties;
(d) establish, as far as possible, common positions in international organisations in the field of customs and trade facilitation, such as the WTO, World Customs Organisation (WCO), United Nations (UN) and United Nations Conference on Trade and Development (UNCTAD);
(e) promote coordination between all related agencies, both internally and across borders.
2. Notwithstanding paragraph 1, the Parties shall provide each other with mutual administrative assistance in customs matters in accordance with the provisions of Protocol 1.
Article 24. Customs Legislation and Procedures
1. The Parties agree that their respective trade and customs legislation and procedures shall draw upon international instruments and standards applicable in the field of customs and trade, including the substantive elements of the Revised Kyoto Convention on the Simplification and Harmonisation of Customs Procedures done at Brussels on 26 June 1999, the substantive elements of the WCO Framework of Standards to Secure and Facilitate Global Trade, the WCO data set and the HS Convention.
2. The Parties agree that their respective trade and customs legislation and procedures shall be based upon:
(a) the need to protect and facilitate legitimate trade through effective enforcement of, and compliance with, the requirements set out in the customs legislation;
(b) the need to avoid unnecessary and discriminatory burdens on economic operators, to protect against fraud and corruption, and to provide further facilitation for operators that meet high levels of compliance with customs legislation and procedures;
(c) the need to use a single administrative document or electronic equivalent, for the purposes of establishing customs declarations in the EU and in the EAC Partner State(s), respectively;
(d) modern customs techniques, including risk assessment, simplified procedures for entry and release of goods, post release controls, and audits;
(e) the progressive development of systems, including those based upon information technology, for export import and transit operations, to facilitate the exchange of information between economic operators, customs administrations and other agencies;
(f) the principle that penalties imposed for minor breaches of customs regulations or procedural requirements are proportionate and do not give rise to undue delays in their application in customs clearance;
(g) a system of binding rulings on customs matters, in particular on tariff classification and rules of origin, in accordance with the rules laid down in regional and/or national legislation;
(h) the need to apply fees and charges that are commensurate with the service provided in relation to any specific transaction, and not be calculated on an ad valorem basis. Fees and charges shall not be imposed on consular services in respect of trade in goods;
(i) the elimination of any requirement for the mandatory use of pre-shipment inspections as defined by the WTO Agreement on Pre-shipment Inspection, or any equivalent requirement;
(j) the elimination of all requirements for the mandatory use of customs brokers, as well as transparent, non-discriminatory and proportionate rules for their licensing.
3. In order to improve working methods and to ensure the transparency and efficiency of customs operations, the Parties shall:
(a) take further steps towards the simplification and standardisation of documentation and trade formalities to enable the rapid release and clearance of goods;
(b) provide effective, prompt and non-discriminatory procedures enabling the right of appeal against customs and other agency administrative actions, rulings and decisions affecting imports, exports or goods in transit; such procedures shall be easily accessible to all enterprises;
(c) ensure that integrity is maintained, through the application of measures reflecting the principles of the relevant international conventions and instruments.
Article 25. Facilitation of Transit Movements
1. The Parties shall ensure freedom of transit through their territories via the most convenient routes. Any restriction, control or requirement shall be non-discriminatory, proportionate and applied uniformly.
2. A Party may require that traffic in transit through its territory be entered at the proper customs house through designated routes. Should a Party require the use of such routes, it shall do it in full compliance with Article V(3) of GATT 1994.
3. Without prejudice to legitimate customs controls, a Party shall accord no less favourable treatment to goods in transit from the territory of the other Party than that accorded to domestic goods.
4. The Parties shall operate bonded transport regimes that allow the transit of goods without payment of customs duties or other charges having an equivalent effect, subject to the provision of an appropriate guarantee in accordance with regional and/or national customs legislation.
5. The Parties shall promote and implement regional transit arrangements.
6. The Parties shall promote coordination between all concerned agencies, both internally and across borders.
7. The legislation of the Parties shall draw upon international standards and instruments relevant to transit.
Article 26. Relations with the Business Community
1. The Parties agree to:
(a) ensure that all legislation, procedures as well as fees and charges are made publicly available, as far as possible through electronic or any other appropriate means, and whenever possible provide necessary clarifications;
(b) regularly consult in a timely manner with trade representatives on legislative proposals and procedures related to customs and trade issues;
(c) introduce new legislation and procedures or amend them in a way that allows traders to become well prepared for complying with them;
(d) make publicly available relevant notices of an administrative nature, including agency requirements and entry procedures, hours of operation and operating procedures for customs offices at ports and border crossing points, and points of contact for information enquiries;
(e) foster cooperation between operators and relevant administrations via the use of non-arbitrary and publicly accessible procedures, such as memoranda of understanding, based upon those promulgated by the WCO;
(f) ensure that their respective customs and related requirements and procedures continue to meet the needs of the trading community, follow best practices, and remain as little trade-restrictive as possible.
Article 27. Transitional Provisions
1. In view of the need to enhance the capacity of the EAC Partner State(s) in the area of customs and trade facilitation and without prejudice to their WTO commitments, the Parties agree that the EAC Partner State(s) shall benefit from a transition period of five (5) years from the date of entry into force of this Agreement to meet the obligations in Articles 23, 24 and 25.
2. That transition period can be further extended by authorisation of the EPA Council.
Article 28. Harmonisation of Customs Standards at Regional Level
The Parties acknowledge and recognise the importance of consolidating the harmonisation of customs standards and trade facilitation measures at regional level, including the initiation of reforms in the field of customs and trade facilitation where necessary.
Article 29. Special Committee on Customs and Trade Facilitation
1. The Parties hereby establish a Special Committee on Customs and Trade Facilitation, composed of their representatives, which shall:
(a) meet on a date and with an agenda agreed in advance by the Parties;
(b) be chaired alternately by each Party; and
(c) report to the EPA Council.
2. The functions of the Special Committee on Customs and Trade Facilitation shall include:
(a) monitoring the implementation and administration of this Title and of Article 9;
(b) providing a forum to consult and discuss all issues concerning customs, including rules of origin, general customs procedures, customs valuation, tariff classification, transit and mutual administrative assistance in customs matters;
(c) enhancing cooperation on the development, application and enforcement of rules of origin and related customs procedures, general customs procedures and mutual administrative assistance in customs matters;
(d) enhancing cooperation on capacity building and technical assistance;
(e) any other issues agreed by the Parties in respect of this Title.
Title IV. SANITARY AND PHYTOSANITARY MEASURES
Article 30. Scope and Definitions
1. The provisions of this Title apply to measures covered by the World Trade Organisation Agreement on the Application of Sanitary and Phytosanitary Measures (the WTO SPS Agreement).
2. For the purpose of this Title, unless otherwise provided, the definitions of the WTO SPS Agreement, the Codex Alimentarius Commission, the World Animal Health Organisation and the International Plant Protection Convention shall apply.
Article 31. Objectives
1. The objectives in the area of application of sanitary and phytosanitary (SPS) measures are to:
(a) facilitate the Parties' inter-regional and intra-regional trade, while safeguarding human, animal and plant life or health in accordance with the WTO SPS Agreement;
(b) address problems arising from SPS measures on agreed priority sectors and products giving due consideration to regional integration;
(c) establish procedures and modalities for facilitating cooperation in SPS matters;
(d) ensure transparency as regards SPS measures applicable to trade between and within the Parties;
(e) promote intra-regional harmonisation of measures with international standards, in accordance with the WTO SPS Agreement, and the development of appropriate policies, legislative, regulatory and institutional frameworks within the EAC Partner State(s);
(f) enhance the effective participation of EAC Partner State(s) in the Codex Alimentarius Commission, World Animal Health Organisation and International Plant Protection Convention signed in Rome on 6 December 1951;
(g) promote consultation and exchanges between the EAC Partner State(s) and EU institutions and laboratories;
(h) facilitate the development of capacity for setting and implementing regional and national standards in accordance with international requirements in order to facilitate regional integration;
(i) establish and enhance the capacity of EAC Partner State(s) to implement and monitor SPS measures pursuant to the provisions of Title VI of Part V; and
(j) promote technology transfer.
Article 32. Rights and Obligations
1. The Parties reaffirm their rights and obligations under the international treaties and agreements relating to this Title to which they are party.
2. Each Party shall:
(a) have the sovereign right to implement SPS measures, provided that such measures are consistent with the provisions of the WTO SPS Agreement;
(b) consult the other Party prior to the introduction of any new SPS measures, through the notification mechanisms provided for in the WTO SPS Agreement and, if and when appropriate, through the Parties' contact points;
(c) support the other Party in gathering information needed to make informed decisions;
(d) promote linkages, joint ventures, joint research and development between the EAC Partner State(s) and EU institutions and laboratories.
Article 33. Scientific Justification of Measures
Subject to the provisions of this Title, the Parties shall ensure that the introduction, alteration or modification of any SPS measure in their territories shall be based on scientific justifications and comply with the WTO SPS Agreement.
Article 34. Harmonisation
1. The Parties shall aim to achieve harmonisation of their respective rules and procedures for the formulation of their SPS measures, including inspection, testing and certification procedures, in accordance with the WTO SPS Agreement.
2. The Committee of Senior Officials shall develop modalities to assist and monitor this process of harmonisation.
Article 35. Equivalence
The Parties shall apply the principles of equivalence according to the provisions of the WTO SPS Agreement. For this purpose, each Party shall give reasonable access, upon request, to the other Party for inspection, testing and other relevant procedures.
Article 36. Zoning and Compartmentalisation
The Parties shall recognise, on a case-by-case basis, designated areas which are free from pests or diseases or areas of low pest or disease prevalence as potential sources of plant and animal products taking into account Article 6 of the WTO SPS Agreement.
Article 37. Notification, Enquiry and Transparency
1. The Parties shall be transparent in their application of SPS measures in accordance with the WTO SPS Agreement.
2. The Parties recognise the importance of effective mechanisms for consultation, notification and exchange of information with respect to SPS measures in accordance with the WTO SPS Agreement.
3. The importing Party shall inform the exporting Party of any changes in its SPS import requirements that may affect trade falling under the scope of this Title. The Parties also undertake to establish mechanisms for the exchange of such information.
Article 38. Conformity Assessment
The Parties shall, for the purpose of ensuring compliance with SPS standards, agree on procedures for conformity assessment.
Article 39. Information Exchange and Transparency of Trade Conditions
Cooperation between the Parties under this Title shall include:
(a) information sharing and consultation on changes to SPS measures which may affect products of export interest to either Party;
(b) exchange of information on other areas of potential relevance to their trade relations, including rapid alerts, scientific opinions and events upon specific request;
(c) advance notice to ensure that the EAC Partner State(s) are informed of new SPS measures that may affect the exports of the EAC Partner State(s) to the EU; this system shall build on existing mechanisms under WTO agreements, especially Article 7 of the WTO SPS Agreement;
(d) promotion of transparency as regards the sampling, analysis and action following official controls on feed and food from either Party.
Article 40. Competent Authorities
1. The respective SPS authorities of the Parties shall be the competent authorities in the EAC Partner State(s) and the EU for the implementation of the measures referred to in this Title.
2. The competent authorities referred to in paragraph 1 shall have the roles conferred upon them under the WTO SPS Agreement.
3. The Parties shall notify each other of their respective competent authorities referred to in paragraph 1 and any changes thereto.
Title V. STANDARDS, TECHNICAL REGULATIONS AND CONFORMITY ASSESSMENT
Article 41. Scope and Definitions
1. The provisions of this Title shall apply to the preparation, adoption and application of technical regulations, standards and conformity assessment, as defined in the WTO Technical Barriers to Trade Agreement (TBT Agreement).
2. For the purposes of this Title the definitions of the TBT Agreement apply.
Article 42. Rights and Obligations
1. The Parties reaffirm their rights and obligations under the TBT Agreement, while taking account of their rights and commitments under other international arrangements to which both the EAC Partner State(s) and the EU are parties, including in particular those relating to the protection of the environment and biodiversity.
2. In accordance with the provisions of the TBT Agreement, the Parties shall ensure that technical regulations are not prepared, adopted or applied with a view to, or with the effect of, creating unnecessary obstacles to trade between them.
Article 43. Mutual Recognition Agreements
The Parties may negotiate mutual recognition agreements in sectors of mutual economic interest.
Article 44. Transparency and Notification
1. The Parties reaffirm their obligations concerning the notification and sharing of information about technical regulations, standards and conformity assessment procedures as provided for by the TBT Agreement.
2. The Parties shall exchange information on issues of potential relevance to their trade relations, including rapid alerts, scientific opinions and events through enquiry points.
3. The Parties may cooperate in the establishment and maintenance of enquiry points, and in the setting up and maintenance of common data bases.
Article 45. Harmonisation
The Parties shall endeavour to harmonise their standards, technical regulations and conformity assessment procedures.
Article 46. Conformity Assessment
1. The Parties reaffirm their commitments with regard to conformity assessment in accordance with the TBT Agreement.
2. The Parties may consider, taking account of the extent of alignment of their technical regulations, standards, and conformity assessment infrastructures, the negotiation of agreements on the mutual recognition of conformity assessment procedures.
Article 47. Technical Regulatory Bodies
1. The regulatory bodies of the EAC Partner State(s) shall be the competent authorities in the EAC Partner State(s) for the implementation of the measures referred to in this Title that have the responsibility and competence for ensuring or supervising the implementation of standardisation, metrology, accreditation and conformity assessment.
2. The body responsible in the EU for the implementation of this Title is the European Commission.
3. The EAC Partner State(s) shall notify the EU of their technical regulatory bodies in accordance with this Agreement.
Title VI. TRADE DEFENCE MEASURES
Article 48. Anti-Dumping and Countervailing Measures
Subject to this Article, nothing in this Agreement shall prevent the EU or the EAC Partner State(s), whether individually or collectively, from adopting anti-dumping or countervailing measures in accordance with the relevant WTO agreements. For the purpose of this Article, origin shall be determined in accordance with the non-preferential rules of origin of the Parties.
2. Before imposing definitive anti-dumping or countervailing duties in respect of products imported from either Party, the Parties shall consider the possibility of constructive remedies as provided for in the relevant WTO agreements.