MEETING OF THE COMMITTEE OF MINISTERS RESPONSIBLE FOR TRANSPORT AND METEOROLOGY

14 – 16 OCTOBER 2013

ELEPHANT HILLS HOTEL

VICTORIA FALLS, ZIMBABWE

Non-Tariff Barriers Reporting, Monitoring and Eliminating Mechanism

A report on the System, Current Status and Progress on Reporting and Elimination of Non-Tariff Barriers

  1. Background

1.1The Member States of the three Regional Economic Organisations of the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern African Development Community (SADC) launched the negotiations for the COMESA-EAC-SADC Tripartite Free Trade Area on 12th June 2011. The Tripartite Free Trade Area aims to reduce tariffs imposed on goods originating in the region and traded in the region. However, in addition to tariff barriers, the region’s producers and traders also face a number of non-tariff barriers. An integral part of the Tripartite Free Trade Area, therefore, is the design and implementation of a programme aimed reducing non-tariff barriers to trade.

1.2Non-Tariff Barriers (NTB’s) refer to non-tariff related trade restrictions resulting from prohibitions, conditions or specific requirements that make importation and exportation of goods difficult or expensive. The elimination of NTB’s was identified as a priority at the First Tripartite Summit which took place in October, 2008.

1.3Legal instruments of the three Regional Economic Communities namely; Articles 49 and 50 of the COMESA Treaty, Articles 75(5) of the East African Community Treaty and Article 6 of the SADC Protocol on Trade, provide for the elimination of Non-Tariff Barriers and further prohibit the introduction of new ones. Article 10(1) of the Tripartite Agreement calls on Tripartite Member/Partner States to eliminate all existing NTBs to trade with each other and not impose any new ones. Nevertheless, and although the COMESA, EAC and SADC Free Trade Areas have removed duties on substantially all goods traded within their territories, trade remains restricted by the existence of non-tariff barriers.

1.4COMESA, EAC and SADC have, in the past, developed different mechanisms to identify report and monitor elimination of NTBs and resolve disputes. These mechanisms have, to a great extent, identified all the common NTBs encountered in the region and the frequency at which they occur and attempted to facilitate resolution of the same through resolution at the Council of Ministers level and other consultative processes. The existing mechanisms that are in place were the starting points for the design of the on-line Tripartite NTB Monitoring, Removal and Reporting Mechanism, as well as the process for elimination of NTBs.

2.System Description

TMSA has supported the COMESA-EAC-SADC Tripartite to develop a web-based NTB reporting, monitoring and elimination mechanism at This dynamic online system provides a systematic and transparent process for identification and elimination of barriers to trade in the tripartite region.

The main NTBs currently restricting trade in the region have been identified as:

2.1Customs documentation and administrative procedures – these include non-standardised systems for imports declaration and payment of applicable duty rates; non-acceptance of certificates and trade documentation; incorrect tariff classification; limited and uncoordinated customs working hours; different interpretation of the Rules of Origin and non-acceptance of certificates of origin; application of discriminatory taxes and other charges on imports originating from member States; and cumbersome procedures for verifying containerised imports.

2.2Immigration procedures – including non-standardised visa fees; and cumbersome and duplicated immigration procedures.

2.3Quality inspection procedures – delays in inspection of commercial vehicles; cumbersome and costly quality inspection procedures; unnecessary quality inspections (including of products certified by internationally accredited laboratories); non-standardised quality inspection and testing procedures; and varying procedures for issuing certification marks.

2.4Transiting procedures and fees – Non-harmonised transport policies, laws, regulations and standards including road user charges, toll fees, third party (cross border) motor vehicle insurance schemes, vehicle overload controls systems, vehicle dimensions and standards, cross border road permits and prohibitive transit charges.

2.5Inadequate transport infrastructure and facilities –especially the interface of road, rail andports; inadequate parking space at border posts and lack of separation of traffic. Poorly maintained and managed infrastructure.

2.6Road blocks –uncoordinated stopping of commercial vehicles at various inter-country road blocks even where there is no proof that goods being transported are of a suspicious nature, such as smuggled goods or drugs. The number and location ofweighbridges and the location; randomness of roadblocks and the conduct of officials manning such road blocks.

3.Reporting and Monitoring.

3.1The system enables stakeholders to report these and other NTBs and to monitor their resolution. Reporting options include phone, short messaging system (sms), fax or email. It is supported by NTBs structures whose main function is to process and facilitate resolution of the reported barriers. The NTB structure consists of public and private sector focal points as well as National Monitoring Committees (NMCs).NMCs comprise all government ministries and departments, private sector organisations, trade associations and major exporters and importers who are appointed to facilitate resolution of reported barriers against their countries as well as barriers imposed against their businesses.

3.2All Member States participating in the SADC FTA have reported that they have established NMCs or mandated already existing national structures to also deal with elimination of NTBs. NMC’s receive orientation and training on the NTB online system provided by TMSA.

4.Update on Status of Resolution of Long-standing NTBs

4.1The current status of transport related NTBs under the Tripartite NTBs reporting mechanism is below in Table 1 which also reveals that most the NTBs in the transport sector are longstanding and therefore require Ministers’ attention. Long standing NTBs are those that are not resolved within a minimum of 90 days. Ministers are invited to note that as of 17 September 2013, there were 39long standing complaints on the online system some of which have been there for more than 1000days

Table 1 - Transport related NTBs per Member State by category as at 17 September 2013

Category / No of NTBs / %of total Transport related NTBs / Imposing Countries / Reporting Countries
6.2. Administrative fees / 1 / 2.6% / Mozambique / Malawi
7.1. Arbitrariness / 1 / 2.6% / Mozambique / South Africa
7.4. Costly procedures / 1 / 2.6% / DRC / Namibia
7.5. Lengthy procedures / 1 / 2.6% / South Africa / Zambia
7.6. Lack of information on procedures (or changes thereof) / 1 / 2.6% / Zimbabwe / Zimbabwe
7.7. Complex variety of documentation required / 1 / 2.6% / SADC Region / Madagascar
7.9. Inadequate trade related infrastructure / 2 / 5.4% / SADC Region / Namibia; Seychelles
8.1. Government Policy and regulations / 10 / 26.4% / Botswana; South Africa Zimbabwe; Zambia; / Botswana; South Africa; Zimbabwe;
8.4. Transport related corruption / 1 / 2.6% / Zimbabwe; / Zimbabwe;
8.6. Vehicle standards / 3 / 7.9% / Botswana; Mozambique; / Malawi; South Africa
8.7. Costly Road user charges /fees / 13 / 34.2% / Botswana; DRC Mozambique; Zambia Zimbabwe; SADC region; / Malawi; MozambiqueNamibia; South Africa; Zimbabwe
8.8. Issues related to transit / 3 / 7.9% / Mozambique; Zambia / Malawi; South Africa

Table 2 Longstanding Transport related NTBs per Member State

Imposing Member State / 0-90 Days / 90 – 365 Days / 365 -1000 Days / Over 1000 Days / No. of Long Standing NTBs / % of Total Transport related NTBs
Botswana / 0 / 3 / 2 / 0 / 5 / 13.16%
DRC / 0 / 0 / 1 / 2 / 3 / 7.9%
Mozambique / 1 / 5 / 1 / 0 / 6 / 13.16%
South Africa / 1 / 3 / 2 / 0 / 5 / 13.16%
Zambia / 0 / 2 / 4 / 0 / 6 / 15.79%
Zimbabwe / 0 / 3 / 3 / 0 / 6 / 15.79%
Regional (SADC) / 0 / 0 / 0 / 5 / 5 / 13.16%
Total / 2 / 16 / 13 / 7 / 36 / 94.7%

4.2Ministers are invited to observe the following;

a)Transport related NTBs constitute 35% of the total unresolved NTBs in the online system out of which costly road user charges /fees account for 34.2% followed by Government Policy and regulations at 26.4% of total outstanding transport related NTBs

b)NTBs continue to be a major impediment to the expansion of intra-regional trade and a contributing factor to the high cost of trading in the region especially for landlocked countries. SADC as a REC has the highest number of landlocked countries in Africa. Hence there is need for renewed commitment in addressing NTBs;

c)The NTBs Mechanism requires that Member States establish National Structures for addressing NTBs, namely NTB Focal Points and National Monitoring Committees. However, not all Member States have established these structures, thus causing delays in the resolution of NTBs; and

d)With regard to NTBs of a policy and regulatory nature, there is need to address them on a case by case basis. There is need to acknowledge that some policies or regulations are legitimate, hence rationale would need to be provided. While this is recognised, Member States should still commit to resolving NTBs and agree that application of such policies and regulations still need to facilitate trade and transport. This would entail, among others, improving operational procedures and ensuring transparency in implementation as well as reviewing legislation to ensure that it is in line with regional standards and international best practice.

4.3Ministers are also invited to observe that some of the NTBs and hindrances to trade, such as restrictions on movement of persons, inadequate trade-related infrastructure, can be addressed through other regional initiatives and Protocols.

4.4Trade facilitation is a cross cutting and shared responsibilityamong different government ministries and agencies of whichthe main ones are trade,finance (customs), transport, health, agriculture, police, security and immigrations. There is therefore a need for collaboration between Ministries responsible for Transport and other Ministries who share trade facilitation mandates through the various national and regional trade and transport facilitation fora.

4.5Ministers are further invited to note and support the following decisions made by the SADC Committee of Minister of Trade (CMT) at their meeting on 20th July 2013 in Maputo, Mozambique.The CMT

(i) Reiterated its decision of February 2011 urging Member States to establish the required NTBs national structures where they do not exist and ensure their effectiveness in addressing NTBs; and

(ii) Requested all Member States to address long standing NTBs.

4.6Ministers are also invited to note the following developments under the CMT agenda that affect cross border transport operations:

a)Facilitate review and implementation of the SADC Transit Management System

The Transit Management System was developed and adopted by CMT in 2009 as an instrument to harmonise and standardise procedures for goods in transit across the region. It includes the transit procedures and the bond guarantee system. Following challenges with implementation and developments in technology, the Subcommittee on Customs Cooperation is reviewing both the procedures and the Regional Customs Transit Bond Guarantee. The Customs Audit Report of 2011 confirmed that Member States were not using the Transit Management System. The review of the bond has involved consultations with the insurance/banking sector for their input in developing a guarantee system which can be used across the region. There is also collaboration with the COMESA Secretariat in developing information and communication technology aspects of the system. The review will be completed by July 2014.

b)Facilitate establishment of data exchange and interconnectivity amongst SADC Customs Administrations

Interconnectivity between the different Customs Information System is aimed at ensuring efficient and effective accounting for goods and revenue; simplified and efficient declaration of goods; production of reliable trade data; better risk management and Customs enforcement. Individual SADC Member States are utilizing different computer systems to process operations. Eight Member States use ASYCUDA, two use TIMS and two have adopted the CMS and CAPE systems respectively. This prevents the systems from being compatible and interlinked. Interconnectivity and data exchange is being encouraged and implemented at MS level in line with the World Customs Organization interconnectivity framework. The piloting of this interconnectivity and data exchange should be completed by December 2014.

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