Official Journal 
Of the Economic Community of 
West Africa States (ECOWAS) 
Vol.31 
(Supplement) 
English Edition July 1996 
PROTOCOL ON CONDITIONS GOVERNING THE APPLICATION 
OF THE COMMUNITY LEVY 
CONTENT 
DEFINITIONS ! 
II. TAX BASE, ASSESSMENT AND COLLECTION 
III. DECLARATION AND ALLOCATION OF RETURNS 
IV. SURPLUSES AND DEFICITS 
V. ADMINISTRATION OF THE COMMUNITY LEW 
VI. TRANSITIONAL PROVISIONS 
VII. FINAL PROVISIONS 
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A * IMS Office MMM * Hw f COWAI Vol, 31 
A/P1/7/98 PROTOCOL ON CONDITIONS 
GOVERNING APPLICATION OF THE COMMUNITY 
LEVY 
THE HIGH CONTRACTING PARTIES 
MINDFUL of Article 7 of the Economic Community 
ot West African States (ECOWAS) Revised Treaty 
establishing the Authority of Heads of State and 
Government and defining Its compos i t ion and 
functions; 
AND MINDFUL of Article 72 of the rnoWAS 
Revised Treaty Introducing a Community levy to 
generate revenue for financing the activiti» j, of the 
community; 
DESIROUS of concluding a Protocol defining the 
conditions for the application of the Community levy 
and the modalities for transfer of receipts and 
utilisation of resources: 
HAVE HEREBY AGREED AS FOLLOWS: 
I. DEFINITIONS 
Article 1 
For the purposes of this Protocol: 
"Treaty" means the Revised Treaty ol the Economic 
Community of West African States signed in 
Cotonou on 24 Juiy, 1093: 
"Community" means the Economic Community oi 
West African States whose establishment is 
reaffirmed by Article 2 of the Treaty, 
Member State" or "Member States" means a 
Member State or Member States of the 
Community. 
"Third1 country" means any non-Member State of 
the Community. 
"Authority" means the Authority of Heads of State 
and Government of the Community established 
under Article 7 of the Treaty, 
"Council" means the Council of Ministers of the 
Community established under Article (0 of the 
Treaty, 
"Executive Secretariat" and "Executive Secretary" 
means the Executive Secretariat and Executive 
Secretary of the Community referred to under 
Article 17 of the Treaty, 
"Fund" means the ECOWAS Fund for Cooperation, 
Compensation and development established under 
Article 21 of the Treaty. 
"Administration and Finance Commission" (AFC) 
means the Commission established under Article 
22(h) of the Treaty, 
II. TAX BASE, ASSESSMENT AND 
COLLECTION 
Article 2 
This Protocol defines the conditions for the 
application of the Community levy instituted In 
Article 72 of the Treaty. 
Article 3 
The taxable base ol the Community levy shall be 
the taxable value of goods, originating from third 
countries imported into the Community and 
released (or home consumption. 
Article 4 
The following shall fall outside the scope of the 
Community levy; 
a) products of ECOWAS origin 
(approved industrial products, 
unprocessed goods and traditional 
handicrafts); 
b) goods manufactured or obtained In 
Member States but which do not 
satisfy ECOWAS rules of origin;, 
c) goods originating from third countries 
cleared for home consumption in a 
Member State and re-exported to 
another Member State. 
Article 5 
The following shall be exempted from the 
Community Levy; 
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a) aid, gifts and non-repayable grants Art ic le 8 
rece ived by a sta le or by legal 
entitles constituted under public law 1. T 
and destined for charitable works N 
r e c o g n i s e d as be ing for the a 
common good; C 
he national Customs Administrations of a 
lember State shall be responsible for 
s s e s s m e n t and co l lec t ion of the 
ommunity levy. 
2. Customs collectors or heads of Customs 
offices shall assess and collect all amounts 
receivable in respect of the Community 
Levy. 
3. Such collectors or heads of Customs offices 
shall open an addit ional column in their 
l e d g e r s to r e c o r d a da i ly a c c o u n t of 
amounts received. 
b) g o o d s o r i g i n a t i n g f rom th i rd 
c o u n t r i e s , i m p o r t e d as part of 
financing agreements with foreign 
p a r t n e r s , s u b j e c t to a c l a u s e 
e x p r e s s l y e x e m p t i n g the sa id 
goods from any fiscal or para-fiscai 
levy; 
c) g o o d s i m p o r t e d by en te rp r i ses 
under a stabilised fiscal regime in 
force at the date of entry into force 
of this protocol; 
d) goods on which the Community levy 
has been paid under an earl ier 
regime. 
Article 6 
The Community tax shall be levied on the basis of: 
a) the C1F v a l u e at the por t of 
disembarkation for imports arriving 
by sea; 
b) the CIF value at the point of entry 
into the C o m m u n i t y ' s Cus toms 
ter r i to ry in the case of impor ts 
arriving by road; 
c) the Customs value at the airport 
of d i s e m b a r k a t i o n for i m p o r t s 
arriving by air; 
d) the m a r k e t va lue for p roduc ts 
featuring on the market price list. 
Article 7 
The rate of the Community levy shall be fixed at 
one half percent (0.5%) of the value ot imports 
originating from third countries. This rate may be 
amended, as necessary, every three years by the 
Authority on the recommendation of the Council of 
Ministers. 
Article 9 
1. The securit ies and privileges granted to 
Sta les in the col lect ion of State f iscal 
revenue shall also apply to the collection 
of dues paid as community levy. 
2. The proceeds from Community levy shall 
enjoy, in all Member States, the privileges 
and immunities provided for in the Treaty, 
the General Convention on Privileges and 
Immuni t ies of the Communi ty , and the 
Headquarters Agreements 
III. DECLARATION AND ALLOCATION OF 
RETURNS 
Article 10 
Amounts collected as Community levy shall be paid 
by the national Administration, within a period not 
exceeding one month from the date of collection, 
into an account opened by the Executive Secretary 
in the name of ECOWAS with the Central Bank of 
each Member State, for States which have their 
own Central Banks, and with the national office of 
the Banque Centrale des Etats de I'Afrique de 
I'Ouesi (BCEAO) in the case of Member States of 
the Union Monetaire Ouest Africaine (UMOA). 
Article 11 
Amounts collected as Communi ty levy shall be 
allocated as follows: 
a) the o r d i n a r y b u d g e t s of the 
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Julv 1996 Official Journal of the ECOWAS Vol. 31 
Community and of its institutions, with 
the exception of the budget of the 
Fund for Cooperation, Compensation 
and Development; 
b) the compensation budget for loss of 
r e v e n u e a r i s i n g f rom t rade 
liberalisation; 
c) the funding of development projects; 
d) any other uses as may be decided 
by i h e A u t h o r i t y or the C o u n c i l 
including any increases to the capital 
of the ECOWAS Fund, 
Art ic le 12 
The budgets and other uses referred to in Article 
11 above shall be decided annually by the Council 
of M i n i s t e r s as r e c o m m e n d e d by the 
Administration and Finance Commission. 
IV. SURPLUSES AND DEFICITS 
Art ic le 13 
Any surp lus recorded on the Communi ty levy 
pursuant to authorised expenditure for a financial 
year ^ i . . . j e earned over into the accounts of the 
Executive Secretariat. 
Ar t ic le 14 
1. Any def ic i ts b e t w e e n to ta l a u t h o r i s e d 
e x p e n d i t u r e and p r o c e e d s f rom the 
Community levy shall, on the decision of the 
Council of Ministers, be corrected using 
funds carried over from surpluses from 
previous years. 
2. Where such deficits cannot be offset fror: 
the surpluses carried over, they shall 
reversed by either of Ihe following meth: 
i) by deferr ing execution of ce i i . . 
activities which may be postpone 
or for which alternative funding m ; i 
be obtained; 
ii) by requesting additional funds, fr 
Member States. The deficit .> IKH, 
t h e n be s p r e a d b e t w e e n the 
different budgets according to their 
respective share within the entire 
budget. The additional contributions 
f rom M e m b e r S t a t e s sha l l be 
d e t e r m i n e d on the bas is of the 
different contribution quotas applied 
for the budgets of the Community. 
Art ic le 15 
Where the deficit or surplus over three consecutive 
budget years exceeds 2 5 % of the total vote, the 
Counci l of Ministers shall effect the necessary 
adjustments either by widening the tax base or, 
where there is a deficit, by raising the rate of the 
Community Levy or by reducing the rale ir> case of 
a surplus. 
V. ADMINISTRATION OF THE COMMUNITY 
LEVY 
Art ic le 16 
in the Member Slates, regulations governing the 
management of d isputes concern ing Cus toms 
duties and taxes shall also apply to operat ions 
involving the tax base, assessment and collection 
of the Community levy. Proceeds from contentious 
cases snai l , wi th the excep t ion of the ac tua l 
Community levy, be paid exclusively to the state. 
Art ic le 17 
At the Community level, the Council of Ministers 
shall oversee all operations carried out by national 
Customs Administrat ions through the Executive 
Secre ta r ia t . The A d m i n i s t r a t i o n and F inance 
Commiss ion shall present an annual report to 
Counci l accordingly. Condi t ions govern ing this 
supervisory role shall be determined by Council. 
Art ic le 18 
The Executive Secretar iat shal l , in its detai led 
annual report to Council on the application of the 
mechanism and subject to the provisions of Article 
7, p r o p o s e any a m e n d m e n t s it m a y d e e m 
necessary or which may have been submitted by 
one or more Member States. 
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VI. TRANSITIONAL PROVISIONS 
Article 19 
During a transitional period ol three years, 
commencing from the date ol entry Into force of 
his protocol: 
1. Collection of the Community levy may be 
executed through channois other than 
those stipulated under article 6 of this 
protocol. 
However, the proceeds of the Community 
levy shall be paid in the manner and within 
the time-limit provided under article 10 of 
this protocol. 
2. Total annual withdrawals from the proceeds 
of the Community levy by the Executive 
S e c t a r y In each Member State, shall not 
exceed tne total of Its dues in respect of 
contributions to all budgets and grants 
combined. 
3. Contributions from Member States and their 
share of any eventual call for additional 
funds shall be determined in accordance 
with existing criteria and rules of procedure, 
4. Where there Is a shortfall between revenue 
generated by the Community levy and the 
contributions due from a Member State 
towards all budgets and grants, the 
Member State concerned shall pay the 
difference. 
5. Any surplus shall be used to settle arrears 
of contributions and any balance therefrom 
shall revert to the Member States. 
Article 20 
The Minister responsible for ECOWAS affairs In 
each Member State shall, on the 1st of January of 
each fiscal year, notify the bank In which the 
ECOWAS Community levy account has been 
opened, of .the maximum amount which may be 
withdrawn from this account by the Executive 
Secretary of ECOWAS. 
Article 21 
The Executive Secretariat shall, In collaboration with 
the Member States and the ECOWAS national 
units, present an evaluation report to the Council 
of Ministers on the mechanism of the Community 
levy before the expiration of the transition period. 
Council shall, on the basis of this evaluation report, 
d&termlno the arrangements necessary to ensure 
a smooth passage to the substantive regime, 
VII. FINAL PROVISIONS 
Article 22 
Settlement of Disputes 
1, Any dispute between a Member States and 
the Community with regard to the 
Interpretation and application of (his Protocol 
shall be settled amicably within a period of 
six months from the occurrence of the 
dispute. 
2. Failing this, the dispute shall be referred to 
the Community Court of Justice whose 
decision shall be final and binding, 
Article 23 
Sanctions 
The sanctions specified In Article 77 of the Treaty 
shall be applicable to a Member State which falls 
to honour the obligations Imposed on it by the 
provisions of this Protocol. 
Article 24 
Amendment and Revision 
1, Any Members State may propose any 
amendment or revision of this Protocol, 
2. All proposals shall be submitted to the 
Executive Secretariat which shall transmit 
them to Member States within thirty (30) 
days of their receipt. The Authority shall 
examine all proposals for amendment and 
revision at the expiration of the three-month 
period granted to Member States. 
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Official Journal of irw ECOWAS Vol, 31 
Article 25 
Deposit and Entry into Force 
t . This Protocol shall enter into force upon 
ratification by at least nine (9) signatory 
States, in accordance with the constitutional 
regulations in force in each Member State. 
? Th is P r o t o c o l a n d al l i n s t r u m e n t s of 
rat i f icat ion shal l be depos i ted with the 
Executive Secretariat which shall transmit 
certified true copies thereof to all member 
States, notify them of the date of deposit of 
the instruments of ratification and register 
the Protocol with the Organisation of African 
Unity, the Uni ted Nat ions and all other 
organisations as may be determined by the 
Council of Ministers. 
3. This Protocol shall be annexed to the Treaty 
and shall form an integral part thereof. 
IN FAITH WHEREOF, WE,THE HEADS OF STATE 
A N D G O V E R N M E N T O F T H E E C O N O M I C 
COMMUNITY OFWEST AFRICAN STATES, HAVE 
SIGNED THIS PROTOCOL. 
DONE AT ABUJA, 
THIS 27TH DAY OF JULY, 1996 
(IN SINGLE ORIGINAL IN ENGLISH, FRENCH 
AND PORTUGUESE, ALL THREE TEXTS BEING 
EQUALLY AUTHENTIC). 
Government of Ihe Republic of BENIN of (he Council of Ministers of BURKINA FASO 
H.E. CARLOS ALBERTO WAHANON DE 
CARVALHO VEIGA 
Prime Minister and Head of Government of the 
Republic of CAPE VERDE 
\ 
H.E. HENRI KONAN BEDIE 
President of the Republic of COTE D'lVOIRE 
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July 1996 OOictal Journal of th» E COW AS Vol. 31 
H.E. CAPTAIN YAHYA A.J.J. JAMMEH H.E. FLT. LT. JERRY JOHN RAWLINGS 
Chairman of the Armed Forces Provisional President of the Republic of GHANA 
Ruling Council and Head of State of the 
Republic of GAMBIA 
H.E. S1DYATOURE ' 
Prime Minister, and Minister of Economy, 
Finance and Planning of the Republic of Guinea, 
for and on behalf of the President of the 
Republic of GUINEA 
HON. LUIS OLIVEIRA SANCA 
Minister of Trade of the Republic of Guinea 
Bissau, for and on behalf of the Head of State of 
the Republic of GUINEA BISSAU 
H.E. WILTON SANKAWULO H.E. ALPHA OUMAR KONARE 
Chairman of the Council of State of President of the Republic, Head of State of the 
the LIBERIA National Transitional Government Republic of MALI 
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Jury 1996 Official Journal of lr* ECOWAS Vol. 31 
HON. E. AHMED OULD MINNIH 
Minister, Secretary-General of the Office of the 
President, for and on behalf of the President of 
the Islamic Republic of MAURITANIA 
H.E. GENERAL SANt A BACH A 
Head of State and Commander-in-Chief 
of the Armed Forces of the Federal 
Republic of NIGERIA 
> 
H.E. ALHAJI AHMAD TEJAN KABBAH 
President of the Republic of 
SIERRA LEONE 
H.E. IBRAHIM MAINASSARA BARE 
President of the Republic of NIGER 
HON. E. MASSOKHNA KANE, 
Minister of African Economic Integration, 
for and on behalf of the President of the 
Republic of SENEGAL 
H.E. GNASSINGBE EYADEMA 
President of the TOGOLESE Republic 
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