Aedc new tariff

You're referring to the new tariff imposed by the African Continental Free Trade Area (AfCFTA)!

The AfCFTA is a trade agreement aimed at creating a single market for goods and services across the African continent. As part of this agreement, the African Union (AU) has established a Common External Tariff (CET) to harmonize tariffs among member states.

The new tariff, also known as the AfCFTA CET, came into effect on January 1, 2021. The tariff is designed to promote intra-African trade, increase economic integration, and reduce trade barriers among member states.

Here are some key features of the AfCFTA CET:

  1. Tariff bands: The AfCFTA CET has three tariff bands:
    • Band 1: 0% (free trade) for goods with a high level of processing and value addition.
    • Band 2: 5% (reduced tariff) for goods with a moderate level of processing and value addition.
    • Band 3: 10% (standard tariff) for goods with a low level of processing and value addition.
  2. Tariff rates: The tariff rates vary depending on the product category and the level of processing and value addition. For example:
    • Raw materials and semi-finished goods: 10% (Band 3)
    • Finished goods: 5% (Band 2)
    • High-value goods: 0% (Band 1)
  3. Exemptions: Certain goods, such as essential medicines, medical equipment, and agricultural products, are exempt from the AfCFTA CET.
  4. Phased implementation: The AfCFTA CET will be implemented in phases, with some member states having more time to adjust to the new tariff regime.

The AfCFTA CET aims to promote economic integration, increase intra-African trade, and reduce dependence on external markets. However, the implementation of the tariff may have both positive and negative impacts on businesses and economies across the continent.