Comesa ministers approve new rules for small traders

Small-scale cross-border traders could see better fortunes after regional trade ministers approved a list of products to be incorporated into a new simplified trade regime.

The approval by the ministers from the Common Market for Eastern and Southern Africa (Comesa) clears the way for member countries to begin preparations for the implementation of the simplified trade regime (STR) that focuses on customs and rule of origin.

The system aims to help traders to fully exploit the gains of integrated market systems.

“What now lies ahead is how and when to implement the simplified regime,” Mr Richard Sindiga, the head of Comesa desk at the Trade ministry said.

A preview of the common list approved by the ministers for use under the new STR arrangement showed that agricultural product traders would be the biggest beneficiaries.

The products on the list include beverage crops such as tea and coffee; maize, wheat and sorghum, cotton, sisal, fish and fish products as well as raw milk.

Other listed products include livestock and livestock products, fruits, nuts, oil seeds, poultry and poultry products, vegetables, root crops as well as sugarcane.

But Mr Sindiga said the list would soon be expanded to include a range of finished products that had been left our of the initial roll.

“We are likely to have more manufactured products in the list once they are assigned the appropriate harmonised system codes,” he told Business Daily.

A blueprint of the targeted new simplified trade regime showed that the traders would be granted simplified certificates of origin to enable them enjoy duty and quota free access as long as their goods appear on a list of agreed products.

The certificates would be filled in by traders at designated border posts and stamped by customs officials upon verification.

For purposes of health and safety, those carrying chemicals, agricultural foods, plant and animal products would, however, have to report to offices of the ministries of Health, Environment and Agriculture for clearance.

“This is important to guard against the spread of pest and diseases and to protect human lives as well as the environment,” a manual on the STR reads in part.

But only small-scale border traders with consignments valued at $500 or less will be eligible to use these simplified certificates of origin.

Traders handling larger consignments who wish to benefit from duty-free access will be required to use the normal Comesa certificate of origin.