Import Policies, Tariffs and Restrictions: Kenya and Vietnam Presentation

Kenya: Import Policies, Tariffs and Restrictions

• General Statistics:
  • Import prevails over export.
  • Top imported goods: oil and mineral fuels, industrial machinery, motor vehicles and parts.
• Tariffs:
  • Zero duty for raw materials and inputs.
  • 10% for processed or manufactured inputs.
  • 25% for finished products
• Restrictions:
  • Nature of goods requires pre-qualifications of contractors.
  • Evaluation time is misappropriate to the tender value.

The country is currently the 83d largest export market for goods from the USA. It is the member of World Trade Organization. The average tariff rate is 12.6 although the figure might slightly vary due to the implementation of new regulations. All the importers are obliged to pay a set fee of 2.25% of the total value for the import declaration. One should take into consideration that the cost of imported goods is significantly increased by the relevant procedures at the port. The major barrier for investment is the local juridical system as well as a high level of corruption.

Kenya: Recommendations

• Avoid agricultural sector due to high tariff rates.
• Focus on the second-hand clothing import.
• Consider high risks of delay.
• Consider high level of corruption.

One should take into account that the import of agricultural goods might be particularly problematic due to constant changes in the tariff system and the general high rate of the tariffs in this sector. There are favorable conditions for second-hand clothing import as the government reduced the tariff rates from 45% to 35%. Moreover, it is necessary to note that bureaucratic procedures in the port complicate the import procedure, cause regular delays that leads to surficial financial losses. Finally, one should take into consideration that the corruption rate in the region is indicated as severe that can create barriers for successful cooperation, in the investment field, in particular.

Vietnam: Import Policies, Tariffs and Restrictions

• General Statistics:
  • Export prevails over import
  • Top imported goods: electrical machinery, industrial machinery, oil and mineral fuels.
  • Top import partners: China, South Korea, Japan.
• Tariffs:
  • Average tariff rate for the USA is 15%.
  • the country has eliminated most of the nontariff barriers.
• Restrictions:
  • The country currently restricts: firecrackers
    • certain children’s toys;
    • second hand consumer goods,
    • right hand drive motor vehicles;
    • used spare parts for vehicles.
  • Most consumer goods are under import licensing regime.

The country is currently the 45th largest export market for goods from the USA. The government pursues the policy of reducing import tariff rates that opens new perspectives for potential partners. Among the highest tariff rated goods, one might point out fruit and vegetables, as well as distilled spirits and powdered teas. The main concern for cooperation is inefficient customs, high level of corruption and non-transparent procurement.

Vietnam: Recommendations

• Avoid agricultural and confectionaries sectors due to high tariff rates.
• Salt, tobacco, eggs, and sugar are not recommended.
• Consider high risks of delays and cancellations.
• Consider high level of corruption.

One should consider the fact that the import of agricultural and confectionaries goods might be less beneficial due to substantial high tariff rates in the relevant sector. Among other high-rated products, one might point out distilled spirits, powdered teas, equipment for restaurant use and large engine motorcycles. Such goods as salt, tobacco, eggs, and sugar might be particularly problematic to import due to the severe quota regime. Another important factor to consider is potential problems with customs’ performance. One might face unexpected delays and cancellations due to its inefficient performance. Finally, the country shows high level of corruption that might have a negative influence on potential collaboration.