CUSTOMS IMPORT AND EXPORT PROCEDURES

Post on 26 October 2016
by Super User

A liberalized policy is in place on the import of raw materials, consumables, machinery and tools, to facilitate the growth of the minerals industry. The government’s ban on trading in and the export of raw and uncut tanzanite was meant to set the stage for the growth of a lapidary industry in which the country could attract and develop the requisite skills, which are currently lacking. For the duration of this Show this will be temporarily lifted.

All imports and exports clearance through customs will be facilitated by a customs agent provided by the AGF Organizing Committee.

TABLE E: Tax Rates and Other Levies

ITEM

DUTY

VAT

(A) On Imports

Jewelry

25%

18%

Rough or cut and polished gems & diamond

25%

18%

Gold (All forms)

25%

18%

(B) On Exports

 

 

Jewelry

0%

0%

Rough or cut and polished gems & diamond

0%

0%

 

For the purpose of temporary importation of goods for the Show, no duties and taxes shall be paid. However, duties and taxes should be paid on all items which will be sold (for home use) at the gem show before delivery. The differences between the imported quantity and re-exported quantity shall be accounted for in terms of payment of duties.

VAT REFUNDS TO OUTGOING NON-CITIZEN PASSENGERS

VAT is charged on all retail purchases within mainland Tanzania. Since 1st January, 2012 VAT refunds are processed by Tanzania Revenue Authority (TRA) to all eligible outgoing non-citizen passengers who are departing to foreign destinations in accordance to the Value Added Tax Act (Cap. 148). The following procedures and conditions shall apply:

  1. The eligible claimant is any passenger who is non-citizen who purchased taxable goods on retail basis in Mainland Tanzania;
  2. The claimant must submit the fiscalized receipts to justify his/her claim. In addition, the claimant may be advised to produce passport, boarding pass and air ticket;
  3. VAT refund may be claimed at Julius Nyerere International Airport or Kilimanjaro International Airport only;
  4. At the designated exit points, TRA shall process the refunds after examining the submitted original fiscal receipts together with goods declared by the passenger.

Other conditions which must be fulfilled are:-

  1. The value for the goods should not be below Four Hundred Thousands Tanzanian shillings (TZS 400,000);
  2. The claim for the refund has to be submitted before the expiry of six months after the date of the fiscalized receipt;
  3. The respective purchased goods are not used, or in case of sealed goods the package seal has to be intact, that is it is not broken.

RECORD KEEPING REQUIREMENTS

All Importers, exporters and agents, in order to be in a position to produce records as required by Customs, are required to keep records in respect of their Customs transactions and the consignments and goods covered by those transactions for a period of five years. Those records are detailed below:

  1. All Customs documents — Agent Authorisations, Import Declaration Forms (IDFs), Tanzania Single Administrative Documents (TANSADs), Customs Release Orders and Customs Assessment Notices;
  2. All correspondence and instructions between importers, exporters and their agents;
  3. All correspondence and instructions between importers, exporters and their agents and financial institutions, overseas suppliers and purchasers, transporters, freight forwarders and cargo consolidators that have an involvement in the transactions.

SPECIFIC IMPORTER REQUIREMENTS

Importers, in addition to the General Requirements detailed above, are required to keep relevant documents, records or books (i.e. accounting systems/ledgers) of a specific nature in respect of any:

  • information declared on the forms entitled “Import Declaration Form (IDF) and Tanzania Single Administrative Document (TANSAD) ”;
  • consignments (and full particulars of goods contained within them) that they import;
  • credits and/or adjustments that impact upon the price paid for the goods;
  • duties, taxes and fee payments that are made;
  • exemptions of duties and/or taxes that are -received;
  • refunds, duty and tax concessions and/or re-determinations of duties/taxes;
  • permits or approvals that are required under the laws of Tanzania for the importations of restricted goods.

DOCUMENTS / RECORDS

The following documents may be required, but are not limited to:

  • Bills of lading/air waybills/consignment notes;
  • Commercial invoices (i.e. final Invoice);
  • Evidence of payments made (i.e. letters of credit, receipts or telegraphic transfers);
  • Purchase orders and/or contracts of sale (where they exist);
  • Origin certificates (preference goods only);
  • Exemption approvals (where applicable);
  • Import/export permits or authorisations (restricted goods only);
  • Analysis/inspection certificates (where applicable);
  • Illustrative/descriptive matter (where requested);
  • Insurance contracts (where they exist).

The following records may also be required:

  • Stock Records (Receipts, stock takes, sales/disposal);
  • Location records (exemption goods only);
  • Financial records (sales and purchases);
  • Books (meaning accounting systems or ledgers);
  • Stock (including exempted goods) accounting systems/ledgers;
  • Financial accounting systems/ledgers;
  • Specific Importer Requirements Related to Exemptions.

IMPORTERS UTILISING DUTY/TAX EXEMPTIONS

Importers utilising duty/tax exemptions, in addition to the General requirements and Specific Importer Requirements detailed above, are required, to keep documents, records and books of a specific nature that confirm their exemption entitlement and substantiate that the goods have been used, or are being used, by them in accordance with the exemption conditions.

IN INSTANCES WHERE GOODS:

  • have been sold or transferred by the exemption holder to an entity that holds or is entitled to an equivalent exemption;
  • have been exported;
  • have been sold, otherwise disposed of, or diverted to a person or use other than as provided for by the exemption conditions; or
  • are otherwise unaccounted for.

The exemption holder exporting, selling or transferring the goods is required to also keep documents (including authorizations), records and books related to the exports, sales or transfers, or alternatively, records that confirm that the full applicable duties and taxes have been paid.

 

SPECIFIC EXPORTER REQUIREMENTS

Exporters, in addition to the General Requirements detailed above, are required to keep books, records or documents of a specific nature that relate to any:

  • Information declared on the form entitled “Tanzania Single Administrative Document (TANSAD)”;
  • consignments (and goods contained within them) that are exported;
  • credits and/or adjustments that impact upon the price received/declared for the exported goods
  • duties/tax and fee payments that are made;
  • refunds, drawbacks or VAT credits and/or duty/tax adjustments that are applied for/received;
  • permits or approvals required under the laws of Tanzania for the export of the goods;

VAT RETURNS

  • Export records Financial records (sales)
  • Banking records
  • VAT records Books (meaning accounting systems and ledgers)
  • Export accounting systems/ledgers
  • Financial accounting systems/ledgers