a) Tax objectives under COMESA treaty
i) Free movement of goods and services within the region including harmonization of tariffs, internal tariff elimination.
ii) Encouragement of development in the region
iii) A customs union under which goods and services imported from Non-COMESA countries will attract an agreed single tariff in all COMESA states
iv) Same rules of origin of goods apply in the region
b) Rules of origin provision under COMESA
The treaty establishing the COMESA market for eastern and Southern Africa sets out in Article 4(f) the undertaking by member states to effect that they, inter alia, shall: Establish rules of origin with respect to products that shall be eligible for Common Market treatment. The criteria referred to relate to how goods have actually been produced. They are five in number and only one must be complied with for any goods to qualify for COMESA tariff treatment.
i) Goods wholly produced or obtained in a member state (that is, no materials from outside the common market have been used);or
ii) Goods produced in member states whose valued added resulting from the process of production accounts for at least 35% of the ex-factory cost of the goods;
iii) Goods purchased in member states and are classified or become classified under a tariff heading other that the tariff heading under which they were imported; or
iv) Goods of particular importance to the economic development of the member states and containing not less than 25% value added notwithstanding the provision in (a) above.
Wilfykil answered the question on February 25, 2019 at 11:12
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