SEYCHELLES TO MAKE BIG IMPORT DUTIES REDUCTION

SEYCHELLES TO MAKE BIG IMPORT DUTIES REDUCTION

The Common Market for Eastern and Southern Africa (Comesa) will have a uniform customs external tariff by December next year. 8th December, 2008, is the launch date for the COMESA Customs Union.

Heads of States from the 20 member states (Burundi, Comoros, DR Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, Zimbabwe) endorsed the proposal to start the union that will ensure imported goods into the region attract similar import duty. Seychelles was represented by Jacquelin P. Dugasse, Minister of Investment, Industries and Technology of the Republic of Seychelles. The Heads of States asked six countries that have not joined the Comesa free trade area (FTA) to do so before the next summit. Sources at the meeting hinted that all countries in the FTA except Egypt have committed themselves to join the Customs Union.

In a joint communiquè read by Trade and Industry Minister, Dr Mukhisa Kituyi, the Heads said all finished goods imported into the region will be charged 25 per cent duty.

“The Comesa common external tariff structure of a four band category of raw materials (zero per cent), capital goods (zero per cent), intermediate goods (10 per cent) and final goods (25 per cent), with the provision for flexibility on policy space was adopted,” said Kituyi.

The Heads of States directed that all necessary technical work and implementation modalities be finished before the next summit to be held in Harare, Zimbabwe, next year. This undertaking is a long way between the duties currently in force in the Seychelles, and the framework that has to be put in place by December next year.