1. THE ROLE OF NON CUSTOMS AGENCIES IN A FULLY FLEDGED CUSTOMS UNION, EAC FORUM ON CUSTOMS UNION By Dr. Terry Kahuma, Executive Director, UNBS

2. INTRODUCTION – GLOBALISATION OF TRADE When developing countries liberalized their economies in the early nineties there was opening up their markets to foreign goods & services. The booming Asian economies identified the newly liberalized African young markets and flooded them with cheap but low quality goods. There was virtually nobody to scrutinize the quality and safety of imported products.

3. INTRODUCTION – GLOBALISATION OF TRADE Competition set in and manufacturers and importers started competing mainly on prices. While this was healthy for the economy, it compromised quality of the products on the market. This was the beginning of the era of substandard and counterfeit goods in the region.

4. GLOBALISATION OF TRADE – CURRENT STATUS International trade has become so sophiscated High seas can now act as factories and warehouses for goods. Trade in counterfeit goods internationally is on the increase. Developing countries are the targets of all such vices. Regulatory frameworks in developing countries have unfortunately remained inadequate

5. GLOBALISATION OF TRADE – CURRENT STATUS Most countries in developing countries operate schemes known as Destination Inspection This is where the quality of goods is assessed at the entry point in the importing country.

6. The capacity of MOST laboratories in the region to test the diversity of imported products was overstretched and this has led to delay in releasing results. Some products cannot be assessed comprehensively due to the limited testing capacity and are therefore released onto the market Withdrawal of products from the market becomes difficult if they fail to pass the standards.

7. GLOBALISATION OF TRADE - Challenges The elimination of trade barriers and other free trade reforms represents a threat to domestic market consumers. There is an increasing need to put in place measures that will assist in addressing the existing negative effects arising from liberalization. Developing countries have weak regulatory systems in place. This is coupled with the high poverty and low literacy levels

8. GLOBALISATION OF TRADE - Challenges The first challenge is to protect the country against inferior and hazardous products through laying down proper legislation and border controls. Such measures are never impenetrable - smuggling is major problem for many countries in the region A dynamic system that combines a number of approaches like market surveillance, comparative product testing, pre-shipment verification of products needs to be developed with the participation of all stakeholders.

9. GLOBALISATION OF TRADE - Challenges Evaluation of the performance of such products requires development of a dynamic system that takes into consideration the actual environment in which it is to be used.

10. What needs to be done? Conformity Assessment infrastructure: Set up a National Laboratory accreditation body, strengthen links between public and private laboratories, develop and support inter-laboratory programmes, build institutional capacity Industry: Promote training, implementation, and certification of products to Quality Safety Management Systems among processors including Good Hygiene/Manufacturing Practices (GHP/GMP), HACCP, ISO 22000, Codes of practice Risk Analysis: For collection and analysis of risks associated with products of different categories so that the problematic ones can be targeted

11. What needs to be done? Consumer Awareness Raising: To enable consumers appreciate the need for quality and safety of products and also appreciate their role in trade Coordination of Regulatory activities at National and Regional level: The current structures are fragmented between ministries and government departments, there is need for effective communication and collaboration among all government departments and private institutions in the sector

12. CONCLUSION Harmonization and Strengthening of the National Regulatory Systems to enhance control measures. Development of policies, legislation and harmonization of standards with international requirements which will strengthen the largely fragmented and under resourced Regulatory System in the Region. Establish information sharing mechanisms to ensure timely responses on enforcement

13. THANK YOU FOR YOUR KIND ATTENTION