International Tarrifs

Tariffs in Rwanda

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Tariffs in Rwanda

Rwanda is a member of the World Trade Organization since 1996. The country has fair tariffs for importation of goods into the country, the neighbors enjoy better terms due to the existence of the East African community which comprises of 5 countries in the east African region. The tariffs in the country are dependent on nature of goods and country of origin. Rwanda, for example, has trade restrictions with the United states. It banned importation of second hand clothes from the country. In order to import goods that are finished products into the country, the country charges a tax of 25% on all goods.

I would prefer to import the goods as unfinished. This is in order to enjoy a less taxation. Intermediate goods will attract only a 10% taxation of the total value of goods (“WTO | Rwanda – Member information,”). I would import into the country canvas shoes, that are trendy and suitable for all ages. In this way, I can be assured of a return on investment. This country is good for low-cost products. Therefore, I will keep cost of importation low.

If I were to try a new strategy in the business, I would import raw materials into the country. This would allow me to utilize the affordable labor and also enjoy zero-rated cost of importation into the country. Also, it would be better to source the resources from neighboring countries. This will help reduce the excise duty charged on goods sourced from out of the region. This will help me avoid paying taxes that could be avoided by choosing the best region to source goods from. Getting a license to operate in the country is easier if the parent company is from the region. This would increase the ease of doing business within the region. The reason behind this is to reduce the cost of doing business and help to outdo competitors.

References

WTO | Rwanda – Member information. (n.d.). Retrieved from https://www.wto.org/english/thewto_e/countries_e/rwanda_e.htm