What Has Changed?
The Finance Act, 2026 largely retained the Excise Duty relief previously available to goods originating from East African Community (EAC) Partner States that meet the EAC Rules of Origin.
The proposal to broadly remove this relief was not adopted. However, a specific change was made to imported float glass under tariff heading 7005.
What Does This Mean?
- Most qualifying goods originating from EAC Partner States continue to benefit from the retained Excise Duty relief.
- The exclusion for qualifying EAC-originating float glass under tariff heading 7005 has been removed.
- Businesses importing affected float glass should review the applicable Excise Duty treatment and factor any additional tax costs into their pricing.
Why Does This Matter?
The retention of the wider EAC relief supports regional trade and helps businesses access inputs from neighbouring countries. However, the targeted change on float glass may increase costs for affected importers and businesses that rely on this material.
Businesses should confirm the origin of their goods and the applicable tariff classification before determining the Excise Duty payable.
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