Oil degradation P.22
See also
THEMarketREPORT
NEWS • BRIEFING • N E W P RO D U CTS • T E C H N O LO GY
TARIFFS
Eac to remove preferential
tariff treatment on lubes
produced within eac block
T
he East African
Community trading
block comprises of five
countries two of which blend
lubricants. Kenya and Tanzania
have fully fledged blending
plants that produce various
grades of lubricants. These
are then exported to other
EAC member countries like
Burundi, Rwanda and Uganda.
Additionally, some lubricants
blended in Kenya are exported
to Tanzania and vice versa.
The product are also exported
to other non-EAC member
countries such as Ethiopia,
DRC, Djibouti, South Sudan
and Zambia.
According to the EAC rules
of origin, products produced
within the block can be
exported to member countries
at preferential tariff treatment.
Generally, this means that the
products will be exempted
from duty payment.
In February of this year,
a team comprising custom
experts from Rwanda, Burundi,
Tanzania , Uganda and Kenya
concluded a research whose
objectives was to study the production process and establish
the extent of transformation
and ascertain if the lubricating
oils produced within the block
qualify for preferential tariff
treatment in accordance with
the provisions of the EAC
origin. The EAC secretariat
was represented by customs
officer in charge of tariffs and
valuation, Mr. Ally Alexander.
The experts visited two blending plants in Tanzania namely
Oryx oil and Petrolube and
those in Kenya namely Oilibya
and Kenya Shell.
To determine how much
value addition was incurred
in blending lubricants in the
region, the costs of the products
were broken down into the cost
of base oils, additives, packaging materials , direct labour
,cost, direct expenses, over-
heads, production losses and
other miscellaneous expenses.
With the exception of base
oil and additives cost, all the
other costs were taken to be
value addition costs. For most
products the percentage value
addition was ranging from 33%
to 34%. The minimum value
stipulated by the commission
is 40% value addition.
Consequently the team of
experts concluded that most
lubricants produced in the
region do not meet the value
addition threshold required
to qualify for preferential
treatment under the EAC rules
of origin.
.
NEW PRODUC T
Motorol Lubricants Open Shop In Kenya
OIL ZONE FZE, one of the leading
lubricants manufacturers based
in UAE has opened up shop in
Kenya where it is trading as
OILZONE (EAST AFRICA) LTD.
The company markets
lubricants under the brand name
“Motorol”. With its headquarters
located along Mombasa road, the
company is also serving Uganda
and plans to venture into the
Tanzanian market soon.
MOTOROL lubricants foray
in the oil segment began in
1970 in India. OILZONE FZE
was established as a lubricants
4
manufacturing and blending unit
in the year 2004, manufacturing
and marketing the products
under the brand name of
MOTOROL lubricants.” We are
equipped with state of the art
manufacturing facilities and a
highly trained professional work
force with more than 3 decades
of experience,” said the country
operations manager, Mr. Jitesh
Barot
According to Mr. Jitesh, the
innovative technical team at
MOTOROL Lubricants has been
responsible for development
of about 120 grades of high
quality lubricants and Specialty
products. The range includes
automotive, industrial and
specialty oils such as printing ink
oil and aluminum rolling oil.
Mr. Jitesh affirms that the company’s ability to offer better stock
management along with shipping
time means that the company
can process orders quickly and
ensure faster delivery times.
This helps in achievement of
the company’s motto “Nobody
benefits more than a MOTOROL
Lubricants Customer”.
.
Lubezine Magazine | July-September 2012