Kenya and Tanzania have agreed to fully implement a single customs territory to fasten clearance of goods.
The two states also struck a deal to fast track the harmonization of domestic taxes, levies, and fees in a bid to ease trade between them.
Landlocked countries in the region have been pushing for a single customs bond guarantee scheme to drive down the cost of production.
Tanzania is the only EAC state that does not recognise the Common Market for Eastern and Southern Africa (Comesa) Customs Bond Guarantee Scheme.
The country also does not belong to the Comesa trading bloc, having opted to integrate its market with Southern Africa Development Community states.
This will come as good news for traders in landlocked East Africa countries who have been pushing for a single customs bond guarantee scheme for the whole region amid concerns that high cost of complying with Kenyan and Tanzanian laws have raised their cost of production.
All the East African Community plans to adopt a single customs territory system (SCT) to enable faster clearance of goods to reduce the cost of doing business in the region.
The EAC Customs Union will create a level playing field for producers in the region by imposing uniform competition policy and law, customs procedures and external tariffs on goods imported from third countries. This will assist the region to advance its economic development and poverty reduction agenda.
Through this, the respective governments look forward to cutting the time and resources used in collecting custom taxes at various borders.