East African Community (EAC) partner countries have agreed to exempt the textile and apparel industry from tariffs and value-added tax for three years

East African Community (EAC) partner countries have agreed to exempt garment and textile manufacturers from tariffs and value-added tax for three years. The products involved in this tax exemption are production input equipment, fabrics and accessories that are not available locally. This is to promote local production and reduce production costs. This is one of the strategies to promote the development of the textile and leather industry and slow down the import of second-hand clothing, footwear and other leather products from outside the region.　　East African Community partner countries will now adopt a three-year strategy (from 2017 to 2019) to phase out imports of second-hand clothing and footwear. To achieve this goal, they will increase taxes on these products, require importers to obtain an import license that meets EAC standards, and implement classified imports of each bundle.　　 The East African Community has established a four-stage tariff structure for cotton, textiles and clothing to promote the production of veils and fabrics. The details are as follows: the import tax on raw materials that are not available in this region is 0, the input of intermediate products is 10%, the fabric is 25%, and the garment is 40% or USD 5/kg. Article keywords: 　美棉