EAC Launches EACBond To Reduce Border Fees, Delays Across Region

EAC Unveils New Plan to Slash Border Costs for Traders: How It Will Work

The East African Community (EAC) has rolled out the EACBond, a new regional customs guarantee designed to replace multiple national bonds currently required to move goods across borders.

The instrument allows traders to secure their entire cargo journey using a single bond, a move expected to significantly reduce the cost of doing business, eliminate delays at border points, and unlock cash previously tied up in deposits.

While speaking during the launch on Monday, August 4, EAC Secretary General Veronica Nduva noted that over USD 35 billion (Ksh4.5 trillion) worth of goods move through the EAC corridors each year.

However, she mentioned that they face high financial guarantees, cumbersome documentation, and slow clearance procedures.

Yet, much of this trade has been constrained by high financial guarantees and complex border procedures. The EACBond simplifies compliance, reduces operational costs and unlocks your working capital.

EAC Launches “EACBond” to Reduce Border Fees and Delays: How It Will Work

Legally and digitally anchored under Sections 106 and 107 of the EAC Customs Management Act (2004), the EACBond enables the safe movement of goods under customs control across Partner States without posting multiple bonds.

With the EACBond, a trader only needs one bond that covers the entire journey across the region.

The instrument secures cargo moving along regional corridors (Northern and Central), and goods warehoused within Partner States.

It also allows the movement of temporary imports (such as exhibition materials, plant and machinery) and even shipping line containers as an optional add-on.

The system is managed through an online portal that provides stakeholders with secure, real-time access to guarantee creation, tracking, acquittal, and claims processing.

It integrates with national customs systems and the Regional Electronic Cargo Tracking System (RECTS), ensuring transparency, end-to-end visibility, and automated risk checks throughout the cargo journey.

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Benefits and Strategic Impact of the Bond

The EACBond offers multiple benefits aimed at transforming regional trade. It reduces costs by eliminating multiple border bond charges, ultimately making goods more affordable for consumers.

By unlocking traders’ cash that was previously tied up in deposits, it enables businesses to reinvest in expansion and job creation.

The system also cuts delays at border points by streamlining customs clearance procedures.

Additionally, it enhances trade transparency through real-time cargo tracking, reducing fraud and cargo diversion.

It further strengthens government revenue collection by ensuring compliance and automating risk assessment checks.

Traders and Authorized Economic Operators (AEOs)

One guarantee covers multiple countries, reducing the number of instruments and transactions
Significant cost savings on premiums and service charges
Access to simplified digital issuance and reduced documentation

Banks and Insurers

New guarantee product lines designed for regional deployment
Enhanced risk profiling using data from RECTS and national customs systems
Reduced risk of fraud or delays through digital workflows and automation

Governments and Customs Authorities

Reinforced customs revenue protection through automated risk management tools
Improved capacity to monitor transit performance and mitigate diversion risks
Reduced clearance times and bottlenecks across borders

For the EAC Region

Boosted intra-EAC trade by eliminating redundant processes
Increased private sector participation and confidence in the Single Customs Territory (SCT)
A replicable model for future regional instruments, such as carnet schemes

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