trading in the ecowas free trade area · definition of terms and acronyms 5 definition of terms and...

TRADING IN THE ECOWASFREE TRADE AREA

ECOWAS Trade LiberalizationScheme Rules for Traders

Definition of terms and acronyms

What is the ETLS ?

Who can benefit from the ETLS ?

What goods can benefit from the ETLS ?

How to get a Certificate of Originfor industrial goods?

What are the steps for manufacturers of industrial goods to trade under the ETLS?

What documents are needed for applyingfor acceptance into the ETLS ?

Where can I get information on the ETLS?

Frequently Asked Questions

Contents

Contents 3

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TRADING IN THE ECOWAS FREE TRADE AREAECOWAS Trade L i be ra l i z a t i on S cheme Ru l e s fo r T rade r s

Definition of terms and acronyms 5

Definitionof terms and acronyms

• Common Market : In a Common Market there are no barriers to the movement of goods, services and factors of production.

• Customs Union : A customs union is a free trade area in which members also determine and apply a common external tariff (customs duties) to goods originating from a third country.

• ECOWAS : Economic Community of West African States.

• ECOWAS Certificate of Origin : The certificate that identifies and confirms goods as originating in ECOWAS and therefore eligible to benefit from ETLS.

• ETLS : ECOWAS Trade Liberalization Scheme.

• Ex-Factory Price : This refers to the price of the product at the factory gate. It is made up of all production costs with the exception of profit tax, Value Added Tax (VAT) and turnover tax.

• Free Trade Area : A free trade area consists of a group of countries that remove the tariff and non tariff barriers to the imports originating from another country of the same free trade area.

• Member States : These are the 15 member countries that make up ECOWAS.

• Tariff : A financial charge in form of a tax imposed on imported products. (There are also export tariffs but these are uncommon.)

• Third Country : Any country that is not one of the 15 ECOWAS countries.

BENIN

CABO VERDEBURKINA FASO

COTE D’IVOIRE

LIBERIAMALI

GAMBIE

GUINEAGHANA

GUINEA-BISSAU

TOGO

NIGER

SENEGALNIGERIA

SIERRA LEONE


A rticle 3 of the ECOWAS revised treaty highlights one of the main objectives of ECOWAS as promoting economic integration in the region by, among others, creating a common market. One essential step towards realising

this objective was the setting up of the ECOWAS Trade Liberalization Scheme (ETLS). The ETLS is a tool to facilitate the working of the Free Trade Area. It ensures that goods can be circulated freely without the payment of customs duties and taxes with similar effects on imports. Aside from this, it also includes putting in place measures aimed at facilitating trade by reducing red tape and paperwork at borders.

The ETLS came into existence first in 1979 and only covered agricultural goods and artisan handcrafted products at that point. However, in 1990 it was expanded to also include industrial goods. This expansion created the need for rules defining the notion of ECOWAS “originating products”. “Rules of Origin” were therefore spelt out (see page 13). An industrial good which complies with these Rules of Origin is eligible to benefit from ETLS.

What is the ETLS 7

What is the ETLS ?


The ETLS is open to every enterprise located and operating in any of the 15 ECOWAS Member States that intend to export the product within the region.

All enterprises are bound by the rules spelt out in the protocols and regulations governing the ETLS, in particular :Protocol A/P1/1/03 of 31st January 2003 andRegulations C/REG.3/4/02, C/REG.4/4/02, C/REG.5/4/02 of 23 April 2002(available on www.etls.ecowas.int, www.ecowas.int, from the ECOWAS Commission and ECOWAS National Units).

Enterprises from Export Processing Zones or Free Zones and any other special economic schemes or customs territory may not benefit from the ETLS.

Who can benefit from the ETLS ? 9

Who can benefit from the ETLS ?


The following product groups benefit from ETLS, provided they originate from the ECOWAS region :

• agricultural and livestock products • fishery products from the sea, rivers or lakes • mining products • artisanal handicrafts • industrial goods

The following goods do not require an ETLS Certificate of Origin to be traded duty free within the region but the appropriate sanitary and phytosanitary certificates must be obtained at the countries of origin for agricultural goods :

• agricultural and livestock products • handmade articles manufactured with or without the use of tools, instruments, or implements directly operated by the craftsman

What goods can benefit from the ETLS ? 11

What goods can benefitfrom the ETLS?


Exemption from customs duties and from taxes with similar effects does not however include Value Added Tax (VAT) and excise duties if they prevail in a Member State.Please note that industrial goods in transit, proceeding to and from Member States are exempt from customs duties and taxes with similar effect.

Rule 1 : Wholly Produced GoodsGoods are regarded as wholly produced within ECOWAS, if at least 60% of the total quantity of raw materials used originate from the ECOWAS region.

Rule 2 : Change in Tariff HeadingEvery product can be classified according to a list developed by the World Customs Organisation (the HS tariff classification). This list is made up of numbers broken down in : • “Chapters”- 2 digits, • “Headings”- 4 digits and • “Sub-headings”- 6 digits.If the finished product requires the exclusive use of materials which are classified under a different tariff heading from that of the finished product, it can be traded duty-free.

There is a list of exceptions to this rule mentioning the cases where the change in tariff heading is not substantial enough to grant originating status.

Rule 3 : Value Added CriteriaIf input materials receive a value addition of at least 30% of the ex-factory price of the finished goods, the goods are considered as originating from the region and can be traded duty-free within the region.

How to get a Certificate of Origin for industrial goods ? 13

I f an enterprise wants to trade industrial goods duty-free within the region, it needs a Certificate of Origin. It will get this certificate, if the product complies with one of the following rules. These “Rules of Origin” define whether an

industrial product can be considered as originating from the ECOWAS region.

How to get a Certificate of Origin for industrial goods?

12



What documents are needed for applying for acceptance into the ETLS? 15

What documents are neededfor applying for acceptanceinto the ETLS?

• An ETLS application form containing :- A full description of the identity of the enterprise. - A full description of goods and raw materials used in the production in sufficient detail and in accordance with the commercial practise.- A full description of the manufacturing process and the items and all other costs such as salaries and wages.

• Copies of statutes, company certificates and all documents to support company registration.

What are the steps for manufacturers of industrial goods to trade under the ETLS ?

• First, collect an application form from the competent authority in your country which is designated for that purpose (see below for a list of focal points in each Member State).

• Fill out and send these application forms back to the competent authority who forwards the applications to a Committee responsible for the ETLS known as the National Approvals Committee (NAC).

• Wait for the applications to be reviewed by the National Approvals Committee.

• The list of approved and disapproved enterprises is submitted to the ECOWAS Commission for validation and notification to all ECOWAS Member States.

• The competent authority notifies you when the products are approved. You can now apply for the Certificate of Origin. A Certificate of Origin is valid for 6 months commencing from the date of its issuance. However, it is valid for one product only.

• Export your goods to any of the 15 ECOWAS Member States duty free using your Certificate of Origin. Please ensure to have your certificate in hand before attempting to export.

What are the steps for manufacturers of industrial goods to trade under the ETLS?

14



Where can I get information on the ETLS ? 17

Where can I getinformation on the ETLS ?

Find out more about the ETLS from the website www.etls.ecowas.int or from your national authority in charge of ETLS matters :

BENIN

CABO VERDE

BURKINA FASO

COTE D’IVOIRE

MINISTERE DE L’ECONOMIE ET DES FINANCES(DIRECTION DE L’INTEGRATION REGIONALE)

DESK OFFICER : TCHEKOUNOU DANIEL

MINISTERE DU TOURISME DE L’INDUSTRIEET DE L’ENERGIE.(DIRECTION GENERALE DE L’INDUSTRIEET DU COMMERCE)

DESK OFFICER : PEDRO GOMES ESTAVÃO

DIRECTION GENERALEDU DEVELOPPEMENT INDUSTRIEL

DESK OFFICER : M. ZOUNGRANA

MINISTERE DE L’INTEGRATION AFRICAINE

DESK OFFICER : ATTE DOFFOU

ADDRESS : BP 302 COTONOUTEL : +229 21 30 50 26 /21 30 81 74CEL : +229 95 28 96 99 /96 16 13 13EMAIL : [email protected] [email protected]

TEL : +238 260 48 20CEL : +238 910 30 10EMAIL : [email protected]

ADDRESS : 01 BP 258 OUGADOUGOU 01-BURKINA FASO

TEL: +226 78 20 22 20EMAIL: [email protected]

ADDRESS : 01 BP 7661 ABJ 01


COUNTRY NAME AND ADDRESS OF FOCAL POINT TELEPHONE & EMAIL ADDRESS


LIBERIA

MALI

MINISTRY OF PLANNING& ECONOMIC AFFAIRS

DESK OFFICER : ALVIN JOHNSONMINISTRY OF FINANCE

MINISTERE DES MALIENS DE L’EXTERIEURET DE L’INTEGRATION AFRICAINE BAMAKO

DESK OFFICER : IDRISSA TRAORE

TEL: +231 652 74 02CEL: +231 685 11 41 +231 652 74 02EMAIL: [email protected]

TEL : +223 667 162 97EMAIL : [email protected]


THE GAMBIA

GUINEA

GHANA

GUINEA-BISSAU

MINISTRY OF TRADE, INDUSTRY, REGIONAL INTEGRATION & EMPLOYMENT

DESK OFFICER : ABDOULIE JAMMEH (DIRECTOR OF TRADE)

MINISTERE DE LA COOPERATION INTERNATIONALE

DESK OFFICER : DR DJIGUIBA SY SAVANE(DIRECTEUR GENERAL DE L’INTEGRATION AFRICAINE)

MINISTRY OF FOREIGN AFFAIRS& REGIONAL INTEGRATION

DESK OFFICER : EMMANUEL QUAD(DIRECTOR AFRICA & REGIONAL INTEGRATION BUREAU)

DIRECTION GENERAL DE L’INDUSTRIE

DESK OFFICER : SULEIMANE JALO

ADDRESS : INDEPENDENCE DRIVE, BANJUL

TEL: +220 422 88 [email protected]

ADDRESS : BP 1210 Conakry-Guinea


ADDRESS : P. O. BOX M53 ACCRA


TEL: +245 685 68 72 +245 596 87 57EMAIL: [email protected]




TOGO MINISTRY OF INDUSTRY

DESK OFFICER : ATTITSOKOKOU BIAVA

TEL: +228 995 83 75

EMAIL : [email protected]

NIGER

SENEGAL

NIGERIA

SIERRA LEONE

MINISTERE DU DEVELOPPEMENT INDUSTRIEL, ARTISANAT ET TOURISME

DESK OFFICER : ADAMA NOUHOU (DIRECTION DE LA PROMOTION INDUSTRIELLE)

MINISTERE DES MINES, DE L’INDUSTRIE,DE L’AGRO-INDUSTRIE ET DES PME.

LA DIRECTION NATIONALE DE L’INDUSTRIE.DESK OFFICER : BOUBACAR DIEME

MINISTRY OF FOREIGN AFFAIRS,ECOWAS DIVISION

DESK OFFICER :MR ADESOYE SAMOTU

BEATRICE ARCHIBONG

MINISTRY OF TRADE & INDUSTRY

DESK OFFICER : BENGA YOUSUF

ADDRESS : BP 480TEL: +227 20 73 58 25CEL: +227 90 31 20 45/96 88 93 74EMAIL : [email protected]

ADDRESS : 122 Bis, Avenue André Peytavin BP 4037 Dakar-Sénégal.TEL: +221 33 889 57 57Fax: +221 33 822 55 94

ADDRESS :104, Rue Carnot BP 4037 Dakar-RPTEL/Fax : +221 33 822 04 20TEL: +221 33 822 04 15 +221 77 641 64 55 EMAIL : [email protected]

ADDRESS : Ministry of Trade & Industry 6th Floor, Youyi Building, Brookfields, Freetown Sierra Leone.

EMAIL : [email protected]



CEDEAO ECOWAS COMMISSIONCUSTOMS DIRECTORATE

EMAIL: [email protected]

TEL: +234 7035800840CEL: +234 8037053911

EMAIL: [email protected] [email protected] CEL: +234 8059655843EMAIL: [email protected]

• How often can I use my Certificate of Origin ? The Certificate of Origin can be used each time you export and is valid for 6 months from the date of its issuance.

• Can I use one Certificate of Origin to export to different or several countries ? No, the ETLS Certificate of Origin is issued for one specific product and can only be used for one specific recipient (with name, trade name and complete address) of the ECOWAS region.

• Can one Certificate of Origin be used for several products so long as it is the same enterprise? No, each Certificate of Origin covers one type of good and so applications must be made for each type of good that is to be exported.

• What national rules and regulations do I need to know when I export under the ETLS ? Before you export a good, you must make enquiries regarding the national rules in the destination country, especially with regards to norms and quality.

• Are there taxes which I have to pay despite the approval of my product into ETLS ? Yes, even an approved product has to pay Value Added Tax (VAT) and, if applicable, excise duties.

Frequently Asked Questions 23

Frequently Asked Questions


TRADING IN THE ECOWASFREE TRADE AREA

ECOWAS Trade LiberalizationScheme Rules for Traders

germany – ecowasZUSAMMENARBEIT DEUTSCHLAND – ECOWAS

ECOWAS COMMISSIONCustoms Directorate

101, Yakubu Gowon CrescentAbuja, Nigeria

1st edition : 2012

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