TANZANIA READY FOR EA SINGLE CUSTOMS TERRITORY

Tanzania is going for full fledged Single Customs Territory (SCT) in the next financial year, thanks to the successful and efficient piloting of the system since July 2014.

The system seeks to facilitate increased trade in the region, reduce cost of doing business as well as eliminate dumping of goods in countries of transit to protect industries and jobs.

This was unveiled in Dar es Salaam by the Deputy Commissioner - Trade Facilitation and Procedures, Mr Patrick Mugoya, in an interview over the implementation of the SCT.

"All the challenges that emerged during the SCT piloting period will by April this year be sorted out for full implementation in the 2015/16 financial year," he said.

The challenges for which are being worked out by experts from the East African member states include the complexity of systems interfacing as well as the use of customs bonded warehouse.

Others are the slow pace of the cross border government agencies and regulators to adopt SCT systems and fear job loss by the freight and forwarders. Under the system, the process and documentation are done in the country of destination before the consignments are cleared and released at the port of entry.

Mr Mugoya added that the system applies for the maritime goods coming into the EAC region and the intra-regional trade.

Some of the goods that were assessed during the piloting period include rice, maize, sugar, neutral spirits, cigarettes, petroleum products, wheat, salt, edible oil and pharmaceutical and cosmetic products.

He said also that at the first point of entry, depending on the level of risk, customs officers from the destination country, who are posted at the first point of entry, can subject the goods to physical examination before release.

Customs declarations are made electronically and processed and released by the authorities from the country of destination prior to loading of goods and release from the port.

With the SCT, about 70 per cent of the cost due to former bureaucratic customs operations will be slashed resulting into price cut as well as making the region more competitive for potential investors, an opportunity for more employment opportunities.

Daily News