Customs Valuation & Classification for Small Agroecological Traders

• Many small agroecological traders lose money or face delays because their products are misclassified or overvalued by customs.
• Customs officials use the Harmonised System (HS) to classify goods and determine import/export duties.
• Knowing your correct HS code, how valuation works, and how to appeal unfair charges can save significant time and costs.
• This knowledge also helps traders benefit from preferential tariffs under the Simplified Trade Regime (STR) and AfCFTA.

A 2024 AFSA study found that 35–50% of informal agroecological traders were overcharged due to wrong HS codes or inflated customs values.

A. Harmonised System (HS) Codes

• A global classification system for products (6-digit base, extended to 8 or 10 digits nationally).
• Determines tariff rates, SPS checks, and documentation requirements.
• Example:
  • Dry beans: HS 0713.33
  • Organic fresh bananas: HS 0803.90
• Where to Find Your HS Code:
  • World Customs Organisation HS Database: https://www.wcotradetools.org/en/harmonized-system
  • AfCFTA e-Tariff Book: https://trade.africa
  • EAC Tariff Book: https://www.eac.int/customs
  • National customs portals:
    • Kenya KRA: https://www.kra.go.ke
    • Tanzania TRA: https://www.tra.go.tz
    • Uganda URA: https://ura.go.ug

B. Customs Valuation

• Duties are usually based on CIF value = Cost of goods + Insurance + Freight.
• Customs may adjust your declared value if they suspect under-invoicing.
• The process is governed by the WTO Customs Valuation Agreement.

Key Rights:

• You can request an explanation if your value is adjusted.
• You can appeal or ask for a review/advance ruling.

🔗 WTO Customs Valuation Agreement

C. Preferential Tariffs

• EAC STR: Duty-free or reduced tariffs for small consignments on the Common List.
• AfCFTA: Preferential rates for African-origin goods with a correct Certificate of Origin (CoO).

Tip:

• If your product is not on the STR list, advocate for its inclusion through your cooperative and NTFC.
• AfCFTA duties can be 0–10% lower if you have the right CoO.

🔗 EAC STR Info
🔗 AfCFTA Rules of Origin & Tariffs

Prepare Before Going to the Border

1. Identify the HS Code for your product using:
   • WCO HS Database
   • National tariff portals
2. Check the Tariff Rate under EAC or AfCFTA.
3. Print or screenshot proof of your HS code and tariff to show officials.
4. Calculate the CIF value honestly and keep all invoices/receipts.

At the Border

• Declare your goods with the correct HS code and CIF value.
• Present Certificate of Origin (CoO or Simplified CoO) if applicable.
• If the officer disagrees:
  • Politely ask for the tariff book reference.
  • Request a written valuation adjustment.

If Misclassification Happens

• Request an explanation in writing (tariff heading and reason for reclassification).
• Keep records: forms, receipts, and names of officials involved.
• Appeal process:
  • Most EAC states allow administrative appeal within customs.
  • Escalate to NTFC if unresolved.
  • Report systemic issues via the NTB Portal:
    https://www.tradebarriers.org

Tool	Purpose	Link
WCO HS Database	Look up HS codes	https://www.wcotradetools.org/en/harmonized-system
AfCFTA e-Tariff Book	Check tariffs & rules	https://trade.africa
EAC Tariff Book	Regional HS & duties	https://www.eac.int/customs
NTB Reporting Portal	Report unfair valuation	https://www.tradebarriers.org
Advance Rulings	Some customs issues pre-classification rulings	Check national customs websites
Trader WhatsApp Networks	Peer alerts on misclassification	Cooperative groups

• Stay consistent: Use the same HS code each time for your product.
• Carry supporting evidence: invoices, product photos, and organic/PGS certificate.
• Use cooperatives: A group with a common HS & tariff position is harder to dispute.
• Keep valuation records: Build a price history to contest unfair increases.
• Be polite but assertive: Request legal references for any extra fees.

Uganda–Kenya Organic Vegetable Traders

• Traders were repeatedly overcharged due to the misclassification of “organic vegetables” as premium processed foods.
• Cooperative used the WCO HS database + AfCFTA tariff book to print correct codes.
• Reported misclassification trend to NTFC Uganda and through www.tradebarriers.org.
• Result: Customs updated training for officers; clearance time dropped 40%, and tariffs were applied correctly.

• WCO HS Code Finder: https://www.wcotradetools.org/en/harmonized-system
• AfCFTA Tariff Book & Rules of Origin: https://trade.africa
• EAC Tariff Book & Customs Info: https://www.eac.int/customs
• NTB Reporting: https://www.tradebarriers.org
• WTO Customs Valuation Agreement: https://www.wto.org/english/tratop_e/cusval_e/cusval_e.htm
• Kenya Revenue Authority: https://www.kra.go.ke
• Tanzania Revenue Authority: https://www.tra.go.tz
• Uganda Revenue Authority: https://ura.go.ug