The launching of Longido Clean Water Project in Arusha. This project has been facilitated by taxpayers through tax payments
Construction of Tanzanite Bridge in Dar es Salaam is one of the tax benefits. Pay tax to build our Nation
Payment of taxes facilitates construction of various infrastructures such as 107.4 km Njombe – Makete road

INTRODUCTION 

Tanzania Revenue Authority wishes to inform the business community that in a bid to promote faster clearance of goods through Customs within the region, the Authorized Economic Operator (AEO) program was introduced to enable compliant traders to benefit from a special treatment at the regional level throughtout the cargo clearance process.  Establishment of AEO program is meant to enhance trade facilitation and promote partnership between Customs and business as per World Customs Organization’s SAFE Framework of standards.

AEO is defined as an individual, a business entity or a company that is involved in international trade and is duly authorized by the Commissioner for Customs to transact business with Customs under special arrangements.

APPLICANT TO AEO PROGRAM

Any trader involved in the international supply chain and carries out Customs related activity in the East Africa Community (EAC)  can apply for the AEO status. An applicant will be assessed in line with the respective nature of business, and AEO status will be related to the specific trader’s categories that the trader has qualified for. The categories are:

1)    Importers

2)    Exporters

3)    Clearing and Forwarding Agents

4)    Transporters

5)    Manufacturers (engaged in import and export), and

6)    Bonded Warehouse Operators

REGIONAL AEO BENEFITS

The AEO shall enjoy benefits applicable for the category/ categories that they are authorized for, throughout the EAC countries. The Regional AEO shall be uniquely identified throughout the clearance process. The benefits include: 

Importer/ Exporter/ Manufacturer

Expedited processing of customs declarations (entries). All AEO declarations will be given priority throughout the whole clearance process. This will include:

1)    Automatic processing of declaration

2)    No physical or document examination except for random or risk based interventions/exceptional cases

3)    Electronic Cargo Tracking System (ECTS) requirement waiver where applicable

4)    Expedited payment of refund claims

5)    Reduced Customs security wherever applicable

Clearing and Forwarding Agents

1)    Guaranteed renewal of Customs agent’s license

2)    Priority to participate in Customs initiatives

3)    Priority treatment in cargo clearance chain

4)    Waiver of movement bond requirements for AEO

NB: This benefit shall not absolve the Clearing Agent from any liability in the event that the consignment is lost or short-landed.

Transporters

1)    Guaranteed renewal of transit goods licence and any other licences issued by Customs.

2)    Exemption from the mandatory use of Customs Electronic Cargo Tracking System (ECTS).

3)    Priority clearance at the borders.

 

Warehouse Operators

1)    Self-management of bonded warehouse

2)    Guaranteed renewal of Warehouse Operator’s license

3)    Reduced Customs security wherever applicable

 

ELIGIBILITY REQUIREMENTS

 

To be eligible for authorization, the Commissioner of Customs may require to verify any statement in an application. The applicant should be able to provide information pertaining to all of the following or any other:

1)      Company details

Company details should indicate company profiles, contact persons, nature of business and employee profile. 

2)      Record of Compliance

applicant should not have contravened any laws, rules and regulations pertaining to Customs, Domestic Taxes and all relevant Government Agencies for a period of 3 years prior to application for authorisation. 

3)      Maintenance of records

The applicant shall maintain timely, accurate, complete and verifiable records relating to its customs transactions. The applicant must demonstrate that the computer systems, the organizational internal operational procedures and processes will ensure compliance. 

4)      Financial Solvency

The applicant must demonstrate adequate financial standing. The applicant shall be deemed to have met the conditions of solvency if it can be proven for the past 3 years. The applicant must have fulfilled his obligations regarding payments of Customs duties, taxes and other charges for last three years. 

5)      Security and safety standards

The applicant must demonstrate a high level of awareness on  security and established safety measures, internally and in its business activities with clients. Understanding and implementation of safety and security controls must extend to the applicants personnel.   

6)      Volume of business

The volume of the applicant’s business will be used to gauge eligibility (Risk assessment) for authorisation.

7)      Nature of Goods Traded

The applicant shall be assessed as to the nature and flow of goods traded in.

8)  Trade Partners

The applicant shall have to prove to the satisfaction of Customs that its trade partners demonstrate high level of awareness of security and established safety measures. 

For further inquiry and information you may contact NATIONAL PROJECT MANAGER onPhone Number +255222863446

In accordance with the provisions of the East African Community Customs Management Act 2004 and after attentive scrutiny of all applications for Customs Agency License, the Commissioner for Customs and Excise hereby publicizes names of the short-listed applicants for an interview to be conducted on 21st November, 2015 at the Institute of Tax Administration (ITA), Mikocheni, Dar es Salaam.

 Click here to DOWNLOAD Shortlisted applicants for Customs Agency License for the year 2016

CONDITIONS TO BE OBSERVED BY ALL SHORTLISTED APPLICANTS:

  1. An interviewee is required to come with Introduction letter, pen, pencil, ruler and calculator.
  2. Interview will start at 08.30 am and all candidates should report and be registered for an interview before commencement of an interview.
  3. No candidate who previously successfully sat for an interview with another company will be allowed to sit for this  interview unless his/her case has been submitted to Customs for determination and a ruling thereon whether he/she can sit for particular interview has been made. Non-observance of this condition will lead to punishment including revocation of the license and disqualification of the applicant.
  4. Companies whose Directors and/or a shareholder of such company, whether the company is operational, suspended or revoked due to violation of customs law and procedures shall not be licensed.
  5. Directors/Shareholders who own more than one company shall not be licensed.

Tanzania Revenue Authority wishes to notify all importers/exporters and  clearing and forwarding agents, that from 30th June 2014, the following products  will be cleared under the Single Customs Territory regime, if originating from the Republic of Kenya and vice versa;

1)    Cigarettes;

2)    Neutral spirits, and

3)    Detergents.

Any entries in respect of the specified products remaining unutilized by midnight of 29th June, 2014, shall be automatically cancelled. 

Please take note that only trucks fitted with the Electronic Cargo Tracking devices shall be allowed to transport exports cleared under the Single Customs Territory and that the above list of products shall be expanded over time to include all traded products.

Implementation of EAC single Customs Territory (SCT)
Tanzania Revenue Authority is currently using Single Customs Territory on goods passing through Tanzania to the EAC countries and intra trade of the region. This initiative was launched in October, 2013 and piloted first in the Northern Corridor involving Kenya, Uganda and Rwanda. Following successful implementation in the Northern Corridor, the same is now been implemented in the Central Corridor which involves Tanzania, Burundi, Rwanda and Uganda.


Definition of Single Customs Territory, its benefits and Modus Operandi
The Single Customs Territory (SCT) can be described as the stage for full attainment of the Customs union which is achieved by the removal of duties and other restrictive regulations and/or minimization of internal border customs controls on goods moving among Partner States with an ultimate realization of free circulation of goods.
Under Single Customs Territory, all five Partner States: Tanzania, Kenya, Uganda, Burundi and Rwanda are regarded as one Customs Territory which means only one Customs declaration is made in the Country at which goods are consigned. Such one declaration has replaced the old system where imports to Rwanda, Burundi or Uganda requires multiple customs declarations; first in Tanzania as Transit Goods and then in Rwanda, Burundi or Uganda as Imports that ultimately involves two or more Customs Agents to clear the consignment. The overall benefit for using this system is time and cost saving.


Modus Operandi

1.0 Goods originating from EAC (Intra regional trade)
These are locally produced goods (within EAC) for transfer from one Partner State to another. These goods are now declared and entered only once in the destination Partner State. The principles to be applied under free circulation for locally produced goods;

  • There is only one Customs declaration that will be made in Tanzania and applied across EAC
  • Upon receipt of Invoice from the Supplier; Importers through their Customs Agents are required to lodge their Customs declaration to Customs in Tanzania.
  • Declaration will be processed in Tanzania and tax payment or bond guarantee will be made accordingly.
  • Upon payment of taxes information will be sent in the form of a declaration and exit note to destination Partner State to facilitate release and movement of goods

2.0 Goods originating from outside EAC (International Trade)
These are goods which are imported into EAC regional from International Markets. Such goods were formally treated as transit goods. These type of goods follow the following procedures;

  • Clearance of Goods to Rwanda, Burundi and Uganda are now no longer subjected under Transit Regime but direct import
  • There is only one declaration which is lodged and processed in the destination Country for goods under Warehousing and for home consumption. System interface has been created to facilitate exchange of Manifest information, receipt of tax payments confirmation and Release Order. Such exchange of data between countries is necessary for initiation of Customs clearance process and release of goods to destination Partner State.
  • Goods which are cleared under Warehousing Regime (from Bonded Warehouse to another Bonded Warehouse) are now processed as explained under paragraph above upon receipt of Release Order from destination Country, goods are allowed to move under Electronic Cargo Tracking System or using Regional Bond Guarantee (RCTG).

3.0 Goods for export from EAC
These are Goods which are manufactured in the EAC region. Such goods were previously treated as transit when crossing one Partner State for export to foreign. The principles applied to these goods are:

  • The consignments are subjected to only one Customs declaration which is made and processed in the Country of Export
  • The declaration upon release is transmitted to the Customs authorities where the consignment is passing through
  • After release of the declaration, the consignment may be armed with the electronic cargo seal and removed to commence the journey to destination.
  • The declarations are covered by the regional bond and or armed with the electronic cargo tracking system;
  • The inland border officer confirms exit once the consignment arrives and the next country takes over the process of monitoring through its territory. The system has not yet been implemented in full to all countries. The status of implementation by each country is;
  1. Tanzania and Rwanda
    All goods destined and from Rwanda are subjected to the system.
  2. Tanzania and Burundi
    All goods destined and from Burundi are subjected to the system
  3. Tanzania and Kenya
    All goods destined and from Kenya are subjected to the system.
  4. Tanzania and Uganda
    All goods destined and from Uganda are subjected to the system.

Tanzania Revenue Authority wishes to inform all Importers, Exporters, Customs Clearing and Forwarding Agents and the General Public on the operationalization of Single Customs Territory along the Central corridor. This initiative which was launched in October, 2013 was piloted first in the Northern Corridor involving Kenya, Uganda and Rwanda. Following successful implementation in the Northern Corridor, the same is now rolled out onto the Central Corridor which involves Tanzania, Burundi, Rwanda and Uganda.

Definition of Single Customs Territory, its benefits and Modus Operandi

The Single Customs Territory (SCT) can be described as the stage for full attainment of the Customs union which is achieved by the removal of duties and other restrictive regulations and/or minimization of internal border customs controls on goods moving among Partner States with an ultimate realization of free circulation of goods.

Under Single Customs Territory, all five Partner States: Tanzania, Kenya, Uganda, Burundi and Rwanda are regarded as one Customs Territory which means there shall be only one Customs declaration that will be made in the Country at which goods are consigned. Such one declaration will replace the current system where imports to Rwanda, Burundi or Uganda requires multiple customs declarations; first in Tanzania as Transit Goods and then in Rwanda, Burundi or Uganda as Imports that ultimately involves two or more Customs Agents to clear the consignment. The overall benefit will be time and cost saving

 

Modus Operandi

1.0  Goods originating from EAC (Intra regional trade)

These are locally produced goods (within EAC) for transfer from one Partner State to another. These goods shall be declared and entered only once in the destination Partner State.

The following principles shall apply under free circulation for locally produced goods:

1.1  There shall be only one Customs declaration that will be made in Tanzania and applied across EAC

1.2  Upon receipt of Invoice from the Supplier; Importers through their Customs Agents will lodge their Customs declaration to Customs in Tanzania.

1.3  Declaration will be processed in Tanzania and tax payment will be made accordingly

1.4  Upon payment of taxes information will be sent in the form of a Release Order to Transferring Partner State to facilitate release and movement of goods

 

2.0  Goods originating from outside EAC (International Trade)

These are goods which are imported into EAC regional from International Markets. Such goods were formally treated as transit goods; its clearance shall now follow the following procedures;

2.1  Clearance of Goods to Rwanda, Burundi and Uganda will no longer be under Transit Regime but direct import

2.2  There shall be only one declaration which will be lodged and processed in the destination Country for goods for Warehousing and for home consumption. System interface has been created to facilitate exchange of Manifest information, receipt of tax payments confirmation and Release Order. Such exchange of data between countries is necessary for  initiation of Customs clearance process and release of goods to destination Partner State   

2.3  Goods which are cleared under Warehousing Regime (from Bonded Warehouse to another Bonded Warehouse) will follow declaration process as explained under paragraph 2.2 Upon receipt of Release Order from destination Country, goods will be allowed to move under  Electronic Cargo Tracking System or using Regional Bond Guarantee

 

3.0  Goods for export from EAC

These are Goods which are manufactured in the EAC region. Such goods were previously treated as transit when crossing one Partner State for export to foreign.  The following principle shall apply:

3.1  There shall be only one Customs declaration that will be made and processed in the Country of Export

3.2    The declaration upon release is transmitted to the Customs authorities where the consignment is passing through;

3.3  After release of the declaration, the consignment may be armed with the electronic cargo seal and removed to commence the journey to destination.

3.4  The declaration shall be covered by the regional bond and or armed with the electronic cargo trucking system;

3.5  The inland border officer shall confirm exit once the consignment arrives  and the next country takes over the process of monitoring through its territory.

During this piloting phase only two products will be involved under the International trade namely; Petroleum Products and Wheat. Importers, Exporters and Local Manufacturers of Goods are therefore urged to seize this opportunity.   

For more details, please contact  Mr. Jocktan Kyamuhanga, email This email address is being protected from spambots. You need JavaScript enabled to view it. or speak to them via Tel: +255 22 2117765,

Articles View Hits
20569621