MINERALS EXPORTS AND IMPORTS PROCEDURES

Post on 25 October 2016
by Super User

 

Permits Required for Exporting Minerals

Minerals or samples of minerals can only be exported by a mineral right holder or a licensed dealer. A non-resident with an ordinary, business or tourist visa can also export minerals acquired legally in the country after obtaining a special export permit from the Commissioner for Minerals as stipulated in the Mining Act and its Regulations. The following permits are a prerequisite for exporting minerals or samples of minerals from Tanzania.

  1. Export Permit: Export Permit for minerals or samples of minerals is issued by the licensing authority stating, among others, name of licence holder, licence number, type of minerals, net weight, value of minerals to be exported, certification for payment of royalty, date issued, validity of export permit and name of issuing officer.
  2. Export Permit for Minerals from Gem Trade Fair: Regulation 17 of the Mining (Mineral Trading) Regulations, 2010 permits non-residents to export minerals obtained from a Gem Trade Fair in Tanzania after payment of fees and royalty. In that case, an Export Permit for Minerals from Gem Trade Fair is granted by the Commissioner for Minerals as per Form MTF 18.
  3. Certificate of Origin for Tanzanite Minerals: Regulation 18(1) of the Mining (Mineral Trading) Regulations, 2010 requires every Export Permit for Tanzanite to be accompanied by a Certificate of Origin issued by an authorized officer. The certificate of origin states, among others, name of licence holder, net weight and value of Tanzanite to be exported, date issued and name of issuing officer.
  4. Tanzania Kimberley Process Certificate: In the case of diamonds, every Export Permit for diamonds has to be accompanied by a Tanzania Kimberley Process Certificate granted by the Kimberley Process authorized officer from the Tanzania Kimberley Process Office under the Commissioner for Minerals.
  5. Special Export Permit: Regulation 16 of the Mining (Mineral Trading) Regulations, 2010 requires a non-resident who wishes to export minerals acquired by him/her from an authorised miner or licensed dealer to apply for a Special Export Permit from the Commissioner for Minerals.However, in case of a non-resident with a Tourist Visa, a different fee applies for exporting minerals with value not exceeding USD 1,000. The same Regulation prohibits the tourist to be issued with a Special Export Permit for more than twice in a year. In any of the cases above, evidence for payment of royalty for minerals to be exported has to be provided by the exporter.

Note:

Every permit to export minerals or samples of minerals has to be accompanied by authentic Invoices and Government Exchequer Receipt Vouchers (ERVs) for export permit’s application fee and royalty payment.

Regulation 5(4) of the Mining (Mineral Trading) Regulations 2010 requires every permit to export minerals or samples of minerals to be surrendered by the holder to a Government Official (Customs or Postmaster) at the point of exit from Tanzania. The original permit has to be forwarded to the authorized officer by whom it was issued.

Permits required for importing minerals

Regulation 4 of the Mining (Mineral Trading) Regulations, 2010 requires importation of minerals or samples of minerals into Tanzania to be done after obtaining an Import Permit from the Commissioner for Minerals. The permit shall indicate, among others, name of the importer, type, weight and value of minerals or samples of minerals to be imported, place of entry, destination, means of transportation, and purpose of importation, import fee, date of issue and issuing officer. Regulation 6(9) of the Mining (Mineral Trading) Regulations, 2010 requires the import permit to be submitted to the collector of customs who shall forthwith forward the same to the Commissioner for Minerals.

Note:

Re-exportation of Minerals and Samples of Minerals: Regulation 7 of the Mining (Mineral Trading) Regulations, 2010 stipulates that imported minerals shall not be exported by the importer unless an export permit is obtained from the Commissioner for Minerals, and the Commissioner is satisfied that the minerals to be exported comprise the whole or part of the minerals to which the import permit relates.

 

Minerals on Transit

Minerals on transit are handled under the Tanzania customs regulations, under which the minerals are inspected on arrival where packages/containers are verified. In the case of radioactive minerals, radioactivity check on the minerals has to be conducted by Tanzania Atomic Energy Commission (TAEC) in collaboration with the Commissioner for Minerals as guided under Section 108 of the Mining Act, 2010 and the Mining (Radioactive Minerals) Regulations, 2010. Shipments and seals are re-inspected at exit points to ensure that no tampering has occurred en route.

It is important to emphasize hereby that Section 101(5) of the Mining Act, 2010 gives the Commissioner for Minerals or any other authorized officer, powers to enter and search (without a search warrant) any premises, vehicle, vessel or aircraft in case there is reasonable grounds to believe that an offense under the Act has been committed. In this case, the Commissioner for Minerals and Tanzania Minerals Audit Agency (TMAA) has the powers to search minerals on transit in case there is reason for doing so.

Penalties for Offences Relating to Unauthorized Trading/Export of Minerals

Section 18(2) of the Mining Act, 2010 prohibits any person other than a mineral right holder, a licensed dealer, or licensed broker to have in his possession, or dispose of, any mineral or samples of minerals, unless as an employee, agent or contractor, he has acquired and holds the mineral or minerals for or on behalf of a mineral right holder, licensed dealer or a licensed broker. Section 18(3) of the Mining Act, 2010 prohibits any person to export from Tanzania any mineral or samples of minerals unless he/she is a mineral right holder or a licensed dealer and has been granted an export permit after paying the royalty due.

According to Section 18(4) of the Mining Act, 2010 any person who contravenes the above provisions of the Act commits an offense and on conviction he/she is liable to a fine not exceeding ten million Shillings or to imprisonment for a period not exceeding three years or to both (for an individual); in case of a body corporate to a fine not exceeding fifty million Shillings.

Additionally, Section 6(4) of the Mining Act, 2010 as amended by Section 30 (c) of the Tanzania Extractive Industries (Transparency and Accountability) Act, 2015 authorizes the Commissioner for Minerals to forfeit minerals obtained in the course of unauthorized prospecting or mining or processing operations including equipment involved in such operations and any minerals possessed without a proper permit

 

TABLE C: Fees charged for exportation and importation of minerals

Type of Permit

Export

Import

Permit of minerals or samples of minerals

USD 100

USD 300

Special permit of minerals for non-resident (for minerals worth - more than USD 1,000)

USD 2,000

-

Special permit of minerals for non-resident with Tourist Visa (for minerals worth not more than USD 1,000)

USD 200

-

Special permit of minerals purchased at a Gem Trade Fair

USD 200

USD 200

 

TABLE D: Royalty Rates on Minerals Sales and Exports

Type of Mineral

Royalty Rate (on Gross Value)

Uranium, gemstone (rough) and diamond (rough)

5%

Metallic minerals (copper, gold, silver and platinum group metals)

4%

Gem (cut and polished gemstones and diamond)

1%

Other minerals including building materials and industrial minerals group

3%