COMMON MARKET FOR EASTERN AND SOUTHERN AFRICA (COMESA):

Rule1:  REMOVAL OF IMPORT DUTY RATES WITH EFFECT FROM 31 OCTOBER 2000.

The General Public is hereby informed that Government  removed import duties in respect of all goods originating from COMESA Member States on a reciprocal basis with effect from 31 October. 2000.

The effect of the removal of the import duty rates on all goods originating from the COMESA Member States specified below is that goods will qualify for duty free importation on production of a valid COMESA Certificate of Origin duly signed and stamped by an authorized signatory. However, excise, surtax and other taxes will still have to be paid wherever applicable.

Goods originating from the following COMESA Member States which have also removed import duties may be cleared for consumption in Malawi duty free.

1. Djibouti
2. Egypt
3. Kenya
4. Madagascar
5. Mauritius
6. Sudan
7. Zambia
8. Zimbabwe

The above list will be reviewed and communicated to you from time to time.  {The Countries in this  category will use COZ as the COMESA Agreement Code when completing Form 12.}

Goods originating from the following Member States will continue to be charged the Column 7 COMESA rates of duty specified in Part III of the Tariffs Book -

1. Angola
2. Burundi
3. Comoro
4. Democratic Rep of Congo
5. Eritrea
6. Ethiopia
7. Namibia
8. Rwanda
9. Seychelles
10. Swaziland
11. Uganda

{The Countries in this  category will use COM as the COMESA Agreement Code when completing the Form 12.}

The General Public is also hereby advised that the local percentage content under the COMESA Rules of Origin has since been revised downwards from 45% to 35%. Below are Rules 2 and 5 which are exceptionally important when determining origin.

Rule 2:  RULES OF ORIGIN OF THE COMMON MARKET FOR EASTERN AND SOUTHERN AFRICA

1.  Except as otherwise provided in this Protocol, a good shall be deemed to originate in the territory of a Member State if it is consigned directly from a consignor in a Member State to a consignee in another Member State and where:

1. the good has been wholly produced in the territory of one or more of the Member States as provided for in Rule 3 of the Protocol; or

2. the good has been produced in the Member States wholly or partially from materials imported from outside the Member States or of undetermined origin by a process of production which affects a substantial transformation of those materials such that

1. the c.i.f. value of those materials does not exceed 60 per cent of the total cost of the materials used in the production of the good;

2. the value added resulting from the process of production accounts for at least 35 per cent of the ex-factory cost of the good; or

3. the process of production leads to a change in tariff heading of all materials used provided that such process of production excludes processes referred to in Rule 5 of the Protocol; or

3. the good has been produced in the Member State and is designated by Council, upon the recommendation of the Committee through the IC, to be a good particular importance to the economic development of the member states and containing not less than 25 per cent value added notwithstanding the provisions of sub-paragraph (b) (ii) of paragraph 1 of this Rule.

2.  Without prejudice to the provisions of paragraph 1 of this Rule, the Council may amend the said paragraph on the recommendation of the committee through the IC.

3.  Raw materials or semi-finished goods originating in accordance with the provisions of this Protocol in any of the Member States and undergoing working or processing either in one or in more States shall for the purpose of determining the origin of the finished product be deemed to have originated in the Member State where the final processing or manufacturing takes place.

4.  In determining the place of production of marine, river or lake products and goods in relation to a Member State, a vessel of a Member shall be regarded as part of the territory of that Member State. In determining the place from which goods originated, marine, river or lake products taken from the sea, river or lake or goods produced there from, at sea or on a river or lake shall be regarded as having their origin in the territory of a Member State if they were taken by or produced in a vessel having their origin in the territory of a Member State if they were taken by or produced in a vessel of that Member State and have been brought directly to the territory of the member state.

Rule3: PROCESSES NOT CONFERRING ORIGIN

Notwithstanding the provisions of Rules 2, 3 and 4 of this Protocol, the following operations and Processes are deemed insufficient to support a claim that goods originate from a Member State:

1. packing, bottling, placing in flasks, bags, cases and boxes, fixing on cards or boards and all other simple packing operations;

2. Simple mixing and assembly;

1. Simple mixing of ingredients imported from outside the Member States;

2. Simple mixing and/or assembly of components and parts imported from outside the Member States to constitute a complete product;

3. Operations to ensure the preservation of merchandise in good condition during transportation and storage such as ventilation, spreading out, drying, freezing, placing in brine, sulphur dioxide or other aqueous solutions, removal of damaged parts and similar operations.

4. changes of packing and breaking up or assembly of consignments;

5. marking labeling, or affixing other like distinguishing sign on products or their packages;

6. simple operations consisting of removal of dust, sitting or screening, sorting, classifying and matching, including the making up of sets of goods, washing, painting and cutting up

7. a combination of two or more operations specified in subparagraphs (a) to (f) of this Rule; slaughter of animals.

8. slaughter of animals