The East African Community (EAC) partner country has agreed to waive the three years of tariffs and VAT on clothing and textile manufacturers, which are exempted from the production of equipment, fabrics and accessories that are not available locally. This is to promote local production and reduce production costs. It is one of the strategies to promote the development of textile and leather industry and to slow down the import of second-hand clothing, footwear and other leather products from outside the region.
The EAC partner countries will adopt a three-year strategy (from 2017 to 2019) to phase out second-hand clothing and footwear imports. To achieve this goal, they will increase the tax on these products, requiring importers to obtain EAC-compliant import licenses and to achieve the import of each bundle of packaging.
The EAC has set up four tariff structures for cotton, textiles and clothing, to promote veil and fabric production. As follows: the raw-material that are not available in this region needn’t the import duty, 10% of the intermediate product, 25%of the fabric, 40% for the garment or 5 dollar/kg.