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China opens borders to more Ugandan exports tax free

Starting December 1, 2022, only two percent of Uganda's exports to China will be taxed. The other 98 percent of the exports will have free access to the Chinese market at zero import tax. Ugandans have been called upon to exploit this development.

China opens borders to more Ugandan exports tax free

The Chinese Ambassador to Uganda, Zhang Lizhong, made the announcement during the public unveiling of the Special Preferential Tariff Treatment of Ugandan Exports to China.

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Lizhong said that the expansion is in line with the commitments that China made at the Eighth Ministerial Conference of the Forum on China Africa Cooperation held in Senegal in 2021.

During the conference, China pledged to boost the range of products that enjoy zero tax treatment for least developed countries that it shares diplomatic ties with. The move is aimed at enhancing imports from Africa to reach $300 billion in the next three years.

Following the reveal, Minister for Trade, Industry and Cooperatives, Francis Mwebesa, asked the Uganda business community to seize the opportunity to acess the Chinese market to their advantage.

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According to Mwebesa, "to export to China, it is the best market we can access, the private sector especially those in coffee should access the Chinese market."

He also asked China to boost its science and technology transfer to Uganda, and to consider tourism promotion among the priorities in the bilateral relation.

Uganda has joined nine other least-developed countries to be granted sero-tarrif treatment by China to 98 percent of taxable items as reported by the Customs Tariff Commission of the State Council.

Since 2010, China has been increasing the number of Ugandan goods that can access the Chinese market tax-free. In 2013, it increased the zero-tarrif range to 95 percent from 60 percent in 2010. The plan was further increased to 97 percent in 2015.

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