ECOWAS Trade Liberalisation Scheme (ETLS)
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1 ECOWAS Trade Liberalisation Scheme (ETLS) How can I benefit from a preferential tariff? By K. Nuhu Programme supported by the European Union
2 What is ECOWAS Trade Liberalization Scheme (ETLS) To establish a Customs Union among all member states. Ensure total elimination of customs duties and taxes of equivalent effect. Remove non-tariff barriers and establish a Common Customs External Tariff Protect goods produced in Member States.
3 Categories of Goods Covered Unprocessed Goods Traditional Handicraft Products Industrial products of Community origin (Value Addition).
4 Concessions Granted Total exemption from import duties and taxes No quantitative restriction, Non-payment of compensation for loss of revenue for items (i) and (ii) as a result of their importation.
5 The Goods are to be transported under the cover of the ECOWAS ISRT Log Book Criteria to Qualify Goods must originate in Member States Goods must appear on the Iist of products annexed to the Decisions Must be accompanied by a Certificate of Origin and an ECOWAS Export Declaration Form. The beneficiary of the Scheme must be Resident within an ECOWAS Member State
6 How to Access the ETLS Obtain Application Form Fill Form and submit Filled Forms Vetted and Approved by NAC Decision letter is generated and submitted to the ECOWAS Commission providing indications of companies that have been granted approval.
7 Challenges Non-Renewal of Approvals. Administrative barriers at borders and unnecessary check points on highways Non compliance by some Member States to grant zero rate of duty to approved products Lack of sensitisation of economic operators under the ETLS. Non availability of logistical support to facilitate detailed due diligence on companies.
8 Recommendations Institute a renewal process for approved companies. Removal of all check points and other non-tariff barriers to trade Establishment of ECOWAS Desk and Complaint unit at the borders. The establishment of monitoring task force to undertake periodic visits to frontiers or bother posts. Put in mechanism to forestall the unilateral imposition of restrictive trade practices such as banning of imports under ETLS from member countries. Sensitization and capacity building of economic operators, civil society organizations and border operatives
9 Common External Tariff (CET) How can I benefit from a preferential tariff? By K.Nuhu
10 What is ECOWAS CET The adoption of a uniform regime of customs and related charges intended to facilitate free trade and advance greater integration to the level of a Customs Union. It will help address the problem of cross-border smuggling, combat dumping and also bring economic benefits to the people of the sub-region.
11 Structure of CET Cate gory Description Rate Tariff Lines 1 Essential Social Goods Pharmaceuticals, Fertilisers, Condoms 2 Basic Raw Materials and Capital Goods Chemicals, Machinery and Equipment 3 Intermediate Products Tomato Paste Concentrate 4 Final Consumer Goods Apparels and Clothing Accessories, Electric Domestic Appliances 5 Specific Goods for Economic Development Mineral Water, Meat and Edible Offals 0% 85 5% 2,146 10% 1,373 20% 2,165 35% 130
12 ECOWAS CET and Ghana Tariff Lines 0% 5% 10% 20% 35% Total Ghana ,333 2,624-6,057 ECOWAS 85 2,146 1,373 2, ,889
13 Application of the CET When goods are declared to Customs in the Community, they must be classified according to the CET. Imported and exported goods have to be declared stating under which subheading of the nomenclature they fall. This determines which rate of customs duty applies and how the goods are treated for statistical purposes
14 Impact Assessment of the CET Tariff Band Before CET CET Tariff Band Remarks Rice 20% 10% Adopted Protection Measures at 20% Fishing Equipment 0% 5% Offset 20% duty on imported Fish Electrical Equipment Machinery & Equipment 0% 0% 5% 5% Duty on raw materials reduced from 10% to 5% CET duty to 35% on imported Textiles
15 SUPPLEMENTARY PROTECTION MEASURES CET has additional protection in the initial application by allowing 3% of tariff deviation by Member States for a period of 5 years. The purpose is also to enable member states adjust to the CET in the event of loss of tariff protection due to the CET. The CET has 5,899 tariff lines (products) which means Member States are required to protect a maximum tariff lines of 177 ( i.e. 3% of 5,899). Member states are to notify the ECOWAS Commission with detailed list of affected products within 30 days when wishing to avail themselves with it.
16 Challenges Revenue Collection and Sharing Development of Common Customs Procedures Treatment of Exemptions/Concessions Education
17 Conclusion The implementation of the CET provide added incentives to domestic production because over 1000 tariff lines on raw materials that are currently taxed at 10% have migrated to the 5% tariff band. The CET would help in the long run to address the problem of cross-border smuggling, combat dumping and also bring economic benefits to the people of the Ghana and other Member states.
18 More information? Contact-us TRAQUE Programme Ministry of Trade and Industry Trade Drive, Rooms 115 & 116 Accra, Ghana Follow us on facebook:
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