If it were not for the Kenyan auctions held on a weekly basis in Mombasa, tea would cost more and taste worse in
The price and quality of Kenyan tea of the type Pakistani’s demand is so better than those from neighbouring
According to the
In contrast, the share of tea imported from
So what makes Kenyan tea more popular than, say, Indian or Chinese tea in
“You can’t be sure about the quality of the tea imported from
Secondly, the auction process for Kenyan tea is far more coordinated, transparent and efficient than that in other tea-exporting countries, like
Pakistani companies take part in Kenyan tea auctions through their representatives/suppliers in Mombasa. While major importers of tea with established brands in
The number of indenters in
No wonder the share of Kenyan tea grew on average 13% per annum between 2008 and 2012, according to the WTO. On the contrary, the share of Chinese tea in Pakistan’s total imports shrank 16% every year during the same five years.
Types of tea that are most popular in
Tea is imported in lot sizes of 20, 40 and 60 packages. The amount of tea contained in each package varies according to the type of tea. For example, each package of Kenyan origin BP1 type contains 62 kilograms of tea, PF1 (68 kg), PD (75 kg) and D1 (79 kg).
“Until 10 years back, Kenyan brokers would send their printed catalogues to clients in different parts of the world for teas to be offered in upcoming auctions. But now the dissemination of such kind of information takes place online,” Iqbal said.
So shouldn’t things be hunky-dory for tea importers in
However, tea importers that claim to play by the rules say their margins are shrinking because of two reasons — smuggled tea from
He seems to have a point. The equivalent ad valorem tariff – which is assessed as a percentage of the value of an import and applied by
Furthermore, in order to encourage the sale of packaged tea in the country, the government has given a number of tax relations to commercial importers’ licence holders.
But allowing the misuse of their licence, these companies often let smaller players import tea on their documents. “After paying a small ‘commission’ to the commercial licence holder for using his name, a small player can save at least
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