USAID-ERRA partnered with the East Africa Community (EAC) Regional Simplified Trade Regime (STR) Task Force to review and adopt the STR study report assessing the STR’s effectiveness. The study, commissioned by the EAC Secretariat, provides policy responses and recommendations to enhance the STR’s role in boosting regional trade.
The STR benefits small-scale cross-border traders who transact in low-value consignments. In part, it provides a simplified Certificate of Origin (SCOO), which exempts import duties on goods originating from the EAC region and valued at under US$ 2,000, so long as they are destined for an EAC Partner State. It comprises four main instruments: i) a simplified customs document, ii) a simplified certificate of origin, iii) a common list of eligible products, and iv) a consignment value threshold.
The task force adopted the STR review report and formulated a series of recommendations, including:
- Capacity building and raising awareness amongst target stakeholders regarding the STR;
- Requiring Partner States to publish and display the updated list of Commonly Traded Goods at all border posts;
- Enhance customs systems for efficient electronic STR data capture;
- Convening a Customs Experts meeting to harmonize the STR; and
- Convening a meeting of experts to update the Common List of Eligible Products under the EAC STR;
Implementing the recommendations will boost regional small-scale cross-border trade, by reducing clearance costs, minimizing goods clearing delays, and streamlining tax refund processes.