IMF How To Notes

How to Modernize Customs Procedures to Successfully Implement the African Continental Free Trade Area

By Gilles Montagnat-Rentier, Brian Brimble, Georges Dudouyt, José M García-Sanjinés

April 11, 2025

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Gilles Montagnat-Rentier, Brian Brimble, Georges Dudouyt, and José M García-Sanjinés. "How to Modernize Customs Procedures to Successfully Implement the African Continental Free Trade Area", IMF How To Notes 2025, 002 (2025), accessed April 17, 2025, https://doi.org/10.5089/9798229007009.061

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Summary

The African Continental Free Trade Area (AfCFTA), initiated by the African Union in 2012, aims to create the world's largest free trade area by reducing tariffs and facilitating trade among 54 African countries. Officially entering into force on May 30, 2019, it has the potential to diversify exports, accelerate growth, and attract foreign investment, potentially boosting regional incomes by 9 percent by 2035 and helping 50 million people exit extreme poverty. The agreement includes provisions to facilitate trade and investment, address regulatory measures, and cover trade in both goods and services. Customs administration is crucial for its success, requiring modernization, government support, and business cooperation. Trading under the AfCFTA began on January 1, 2021, but significant changes are needed for full implementation. This note discusses recommendations for customs administration reforms to optimize AfCFTA implementation, suggesting a regional one-year deadline for most relevant measures.

Subject: Customs administration core functions, Customs procedures, Customs unions, Exports, Imports, International trade, Revenue administration, Tariffs, Taxes, Trade agreements, Trade facilitation, Trade in goods, Valuation, origin and classification

Keywords: Origin and classification, AfCFTA Agreement, Africa, Competition Policy, Customs administration core functions, Customs procedures, Customs unions, Digital Trade, Exports, Imports, Intellectual Property Rights, Protocol on Trade in Goods, Protocol on Trade in Services, Tariffs, Trade agreements, Trade barriers, Trade facilitation, Trade in goods, Valuation, Women and Youth in Trade

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