Non-Tariff Barriers (NTBs) have long hindered trade in the East African Community (EAC) by increasing operational costs and causing delays at ports and border points. These barriers—often due to customs inefficiencies or regulatory bottlenecks—elevate the cost of doing business in the region.
According to the World Trade Organization (WTO) 2015 report, trade costs in developing countries can equate to a 2.19% ad-valorem tariff, significantly inflating production expenses. However, implementing trade facilitation measures can slash these costs by up to 14.3%, particularly benefiting exports in manufactured and agricultural goods.
How the Single Customs Territory Works
To address these trade barriers, EAC Heads of State launched the Single Customs Territory (SCT) in 2014. The SCT simplifies the clearance process for goods by allowing a single customs declaration in the country of destination. Taxes are paid upfront, and goods are moved under a single bond from the port of entry to the final destination.
Key features of the SCT include:
- Electronic Cargo Tracking Systems (ECTS) for secure movement of goods
- Interconnected Customs Systems across member states
- Minimal internal controls, reducing delays
- Use of single-entry declarations to expedite clearance at multiple borders
These innovations have significantly reduced cargo movement time. For example, goods from Mombasa to Uganda now take only 3 days, down from 5+. For Rwanda, the journey has shortened from over 8 days to 5 days.
Economic Benefits and Progress
The full rollout of the SCT Import Regime on 1st December 2017 marked a turning point. The Kenya Revenue Authority (KRA) and other partner states complied with the directive, improving coordination and revenue collection.
Border efficiency has improved dramatically. For instance, crossing times at Busia and Mutukula borders have reduced by 74% and 83%, respectively. The SCT guarantees timely revenue collection and facilitates smooth goods transit across the EAC.
To build on this momentum, the 19th Ordinary EAC Summit in February 2018 directed the rollout of all customs regimes, including exports and transit. A pilot of the export module began on 10th May 2018, with full implementation set for 1st June 2018. Stakeholder training and public awareness campaigns were held in preparation.
Empowering Small-Scale and Informal Traders
One of the biggest wins of the SCT is its positive impact on small-scale and rural traders. By reducing paperwork and border delays, these traders—especially those exporting perishable goods—can now participate more competitively in cross-border trade. This helps them escape poverty cycles and build sustainable livelihoods.
Conclusion
The Single Customs Territory in the EAC represents a major step toward economic integration, reduced trade costs, and increased regional competitiveness. It enables faster cargo movement, encourages investment, and empowers local industries to benefit from economies of scale. As EAC partner states work to fully implement all customs regimes, the SCT is poised to transform the region into a dynamic and prosperous trade bloc—bringing member states closer to middle-income status.
