AfCFTA Friday #5: Non-tariff barriers 101 part (II)
What can African entrepreneurs do to deal with NTBs?
As part (I) showcased, getting rid of NTBs is predominantly the work of relevant authorities—national governments, regional bodies, and in this case, the AfCFTA secretariat.
However, that does not mean that Africans should suspend trading with each other until the AfCFTA succeeds in progressively eliminating all non-tariff barriers hindering trade.
There are a few things entrepreneurs can do to mitigate NTBs.
Preplan and overprepare
Before sending out a shipment, discover everything required and ensure you have it. Print several copies of the required documents and proofread them to ensure they have no errors.
Where in doubt, consult. As an exporter, you can consult and seek information from:
The local customs authority. In Kenya, for example, the Customs Service Department under the Kenya Revenue Authority (KRA) deals with customs. The department has an information desk that can advise exporters. Find out the equivalent in your country.
A local customs authority can provide information such as:
Paperwork needed to export
Must-have licenses for goods to clear customs at the border
The local banks. Banks are responsible for offering trade financing. As a result, they always have a department well-versed in all things export and import.
One of the local banks in Kenya—Equity—has a trade finance product that offers, among many things, advisory services for entrepreneurs. Check some of your local banks and seek advice as needed.
Official websites, especially the sites of customs authorities. These websites often offer guidance on duty rates, rules & regulations, paperwork requirements, rules of origin, and other necessary information.
The AfCFTA documents. Read through all the official documents from the AfCFTA secretariat. Documents such as AfCFTA Rules of Origin, AfCFTA Q & A, and Making AfCFTA work for women provide invaluable information to help you navigate the export process.
The information you gather from all these sources allows you to plan and prepare thoroughly. It makes anticipating what might go wrong and reacting on time easier.
Sure, you will encounter NTBs, but your ability to react swiftly will lessen the impact.
Get professional help
Professionals have been in the industry for a long time, and they know how to navigate or evade NTBs. More than that, they have relationships and networks that help them deal with NTBs.
An excellent example of professional help is a freight forwarder. This is a company that ships/receives goods on behalf of another company.
If a freight forwarder is familiar with your target market and has shipped goods to the region before, they know the issues that may arise. They are a great resource to help you deal with any eventualities.
The only caveat is to ensure you get a reputable freight forwarder. Research and talk to former clients to ascertain the forwarder is legitimate.
Commit to constantly educating yourself
The more general knowledge you have on all aspects of exporting and importing, the more skilled an exporter you become.
You do not need to know everything at the same time but commit to learning something every day. It will build up your knowledge database, and when you most need it, that knowledge will serve you well.
Final word
Work is proceeding at a super speed to eliminate non-tariff barriers.
The AfCFTA secretariat has created an NTB sub-committee to oversee the progress on eliminating NTBs. The committee will also review each country’s efforts from time to time.
The secretariat has also directed African countries to establish National Monitoring Committees and National NTB Focal Points.
The focal points will allow entrepreneurs to report any unfair practices that qualify as NTBs so that the relevant authorities can deal with them.
The future is certainly brighter for intra-African trade. For now, continue using the given tips to deal with NTBs.
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If you missed the other #AfCFTA Friday issues, please feel free to check them out.
AfCFTA Friday #1: What is the AfCFTA and Why Does It Matter?
AfCFTA Friday #2: What are the opportunities contained in the AfCFTA
AfCFTA Friday #3: How the AfCFTA can contribute to climate change efforts in Africa
AfCFTA Friday #4: Non-tariff barriers 101 part (I)