|Preferential Tariff Treatment|
Preferential Tariff Treatment
This procedure provides guidelines on the issuance of certificates of origin in accordance with requirements of the regional, unilateral and multilateral trade protocols where Kenya is a signatory. It specifically covers certificates of origin for the: COMESA region, European Union, United States under the AGOA programme and the various GSP schemes.
Stations where certificates of origin are issued: Nairobi, Mombasa, Kisumu, Nakuru and Eldoret stations.
COMESA Common Market for Eastern and Southern Africa
Registration of Exporters
Companies wishing to export goods under COMESA, EUR 1, GSP or AGOA trade preference regimes shall be registered with the Rules of Origin office of the Customs Services Department.
A written application on the Exporter's Registration Form is made to the Commissioner of Customs Services Department.
Applications shall be submitted in advance of any intended export.
Certified copies of the following documents shall be attached to the exporterâ€™s application:
Verification of origin of export goods
On receipt of the application, the Rules of Origin office shall conduct a verification of the exporterâ€™s manufacturing plant to establish whether the export goods meet the origin criteria stipulated under the applicable trade arrangement. This only applies to manufactured goods.
Registered exporters then make payment for the certificates required.
Rules of Origin are a set of criteria used to determine the origin of goods. The Rules of Origin that govern the issuance of COMESA, AGOA, EUR 1 and GSP certificates are known as preferential rules of origin. They are used for granting tariff preferences to goods originating from beneficiary countries.
The verification of origin is based on the Rules of Origin that apply to the certificates required by the exporter as shown below:-
1. COMESA Certificate of Origin
The certificate is applied for goods traded within the COMESA region.
A company shall be registered for export on a COMESA certificate if goods qualify under any of the five criteria described in Rule 2 of the COMESA protocol on Rules of Origin. The criteria are as follows:
2. The EUR 1 Certificate
This certificate is issued for goods originating from the ACP countries and destined for the EU market. It is applied in accordance with the ACP/EU Cotonou Trade Agreement of the year 2000.
Goods will be considered as originating from the ACP beneficiary countries if;
Processing shall be considered to be sufficient under any of the cases described below;
3. The GSP Certificate
The GSP Certificate is applied under the unilateral trade arrangement. Each individual country in the developed world (donor), grants preferential duties to goods originating in certain developing or least developed countries (beneficiaries).
Donor countries in this trade arrangement are; Australia, Canada, Japan, New Zealand, Norway, Switzerland, U.S.A, Belarus, Bulgaria, The Russian Federation and the EU.
The rules of origin applied in issuance of the GSP certificate are drawn by the individual donor country. The main elements are however similar and they include the following;
General Conditions: To qualify for preference, products must:
4. The AGOA Textile Certificate of Origin
The Trade Development Act was signed into law in USA in May 2000. Title 1 of this Act 'African Growth and Opportunity Act'(the 'AGOA'), extends duty free and quota free trade benefits to sub-Saharan Africa for goods identified under the AGOA category.
The AGOA Textile Certificate of Origin covers textile articles that fall under the goods approved for export to the US under the AGOA programme. The rules applied for this certificate are same as the GSP rules of origin applied by USA save for a few variations.
Filling the Certificate: - The exporter shall fill the form in triplicate, attach the export invoice and return it for authentication. Correct documents shall be authenticated by appending the authorizing stamp and signature in the appropriate box.
The exporter shall retain the original and duplicate copies while the issuing office shall retain the triplicate copy and the invoice.
(The AGOA certificate shall however be submitted to The Kenya Association of Manufacturers who will verify the entries on the certificate(s) and forward them to KRA for certification and issuance of the export visa)
Distribution of the Certificate of Origin
The original certificate of origin shall accompany the goods to the export destination while the duplicate shall be retained by the exporter for the purpose of record keeping.
Queries from customs authorities of importing countries
In situations where the customs authorities raise a query over the origin status of the goods or authenticity of the certificate of origin, the following procedure shall apply;